Many business owners struggle to get enough financing to run their small businesses – that trouble is amplified when the owner has bad credit. According to FICO, people with credit scores between 300 to 629 are considered to have bad credit. Many factors go into determining one’s credit score, and repairing a poor credit score can take years to do. A poor credit score can affect one’s ability to attain working capital for their small business tremendously. This happens because borrowers with a low credit score are generally at high risk in terms of defaulting on a loan. Luckily, there’s hope. There are still options out there for small business owners with low credit.
Cash Advance
Even if you have bad credit, you may still qualify for a Merchant Cash Advance. At REIL Capital, we work with business owners who have credit scores as low as 500 to secure the financing they need to grow their business.
A Merchant Cash Advance (MCA) is one of the quickest and easiest financing solutions available for small businesses. With an MCA, businesses receive a lump sum of money upfront, typically ranging from 80% to 120% of their monthly revenue. This advance is then repaid through a percentage of daily sales or a fixed remittance from the business’s bank account. This type of financing is ideal for businesses that generate substantial monthly revenue but might not have a credit score high enough to qualify for traditional term loans or SBA loans.
The flexibility of cash advances makes them a highly attractive option. Funding amounts can vary significantly, from as little as $5,000 to as much as $5,000,000, accommodating a wide range of business needs. The terms are also adaptable, ranging from 4 to 24 months, allowing businesses to choose a repayment schedule that best suits their cash flow and financial situation.
One of the standout features of a Merchant Cash Advance is the speed at which businesses can receive funds. In many cases, funding can be secured in as little as 24 hours, providing a rapid solution for businesses in need of immediate capital. This quick turnaround can be crucial for addressing urgent financial needs, seizing new business opportunities, or managing unexpected expenses.
To qualify for a Merchant Cash Advance, businesses need to meet a few basic requirements. Your business should have been operational for at least six months, and you should be generating a minimum of $15,000 in monthly revenue. These criteria ensure that your business has a stable revenue stream to support the repayment of the advance.
Asset Based Financing
Invoice Financing
If your company uses invoices as a method of receiving payments, you can use invoice financing or invoice factoring to gain working capital for your business. Invoice financing is capital that you can receive on the basis of your business’s accounts receivable. You can get funding for up to 90% of unpaid invoices in as little as 3 days. Invoice financing is not only convenient for business owners who have bad credit scores but also, for businesses that need funding immediately and cannot wait for outstanding invoices to be paid. After all, your business has already provided the service, it is only fair you get paid.
Conclusion
At REIL Capital, we pride ourselves on understanding the unique challenges that small business owners face, especially when it comes to securing financing with a less-than-perfect credit score. We believe that your credit score should not be the sole determining factor in your ability to grow and sustain your business. Our Merchant Cash Advance options are designed to provide you with the quick, flexible, and accessible funding you need, allowing you to focus on what matters most – running and expanding your business. Our streamlined application process and commitment to working with business owners of all credit backgrounds ensure that you have the financial support necessary to navigate any challenge or opportunity that comes your way.
In addition to Merchant Cash Advances, we offer a range of other financing solutions tailored to meet the diverse needs of small businesses. Whether you are interested in invoice financing, asset-based financing, or another form of business funding, our team of experts is here to guide you through the process and find the best option for your specific situation. Don’t let bad credit hold you back. Reach out to REIL Capital today, and discover how we can help you secure the working capital your business needs to thrive. Our commitment-free application is the first step towards a more financially secure and prosperous future for your business.
