Why Bad Credit Shouldn’t Slow Your Business
Business owners all across the country have seen their financial sources dry up. Local bank business loans have been on a continuous decline for years now, but the unwillingness to part with capital has moved well beyond the financial industry. Many friends and family members are feeling the squeeze and refusing to loan money to even some of their closest friends or siblings. Venture capitalists and other investors are also opting to keep their cash before risking it on small business owners and entrepreneurs. This tightness has had a domino effect on the small business sector.
It is almost an unsaid rule today for business owners to not pay their bills when they are due. Most business owners today resort to what is known as juggling. This is the practice of using the money from one creditor to pay another. This has been happening more and more since the financial meltdown, and creditors now have to be very proactive just to get paid on their outstanding accounts. However, juggling almost always leads to disgruntled creditors who file reports with the credit reporting agencies.
The credit collection business is one of very few markets thriving in the difficult economy. More and more business owners are watching as their credit scores sink to extreme lows. This cycle continues to feed itself and many small business owners either break under the pressure or simply continue to juggle hoping for a break.
A recent development in the business financing industry has begun to change the way small business owners operate. Bad credit business loans from private lending companies are now being offered to business owners with bad credit. There was a time where this was unheard of; in fact, most small business owners do not even know they are eligible for financing.
What makes this type of business loan a possibility today is that lenders now offer private funding at significant premiums. Although it may be costly for the business owner, it enables many businesses to not only keep their doors open, but in many cases expand and become significantly more profitable.
There are actually a large number of private lending companies online that offer this type of financing. Many of these lending companies advertise the products as business cash advances or ACH loans, but no matter what term they give their financial product they are simply a business loan with a particular type of structure made solely for business owners with bad credit. Any owner with good credit can go to a bank for a much lower rate, but today with tight lending policies and insane credit requirements these business loans for bad credit are often the only option.
Many business owners have found it difficult to get a loan to help fund their business. At one time friends and families were a good financial resource for many small business owners, but because more people are struggling today that is no longer an option. Banks have also refused the majority of small businesses any type of financing for several years now. Although these traditional options are no longer viable options many business owners today have begun to acquire working capital from private lenders. Today business owners can get financing even having very poor credit. If you are a struggling business owner a business loan may be just the thing to turn your financial position around.