How To Get Bad Credit Small Business Loans

by: Neal Coxworth

Many retailers have been battered by the economic downturn of the last two years, requiring the need for bad credit loans for business. For many retail businesses, this has meant delaying vendor bills, tapping into savings or other tactics to try and make it until business conditions improved. While the best option for any small business is always an SBA type loan, the reality is that most businesses will not get approved for this type of loan in today's restricted credit environment.

For these retail businesses, their main option for bad credit loans for business was to get a merchant cash advance from their credit card payments processor. These cash advances are not true loans, but rather, cash advances based on future credit card receivables. Such advances are almost always characterized by factor (interest) rates as high 50%, high upfront fees, high hold-back (payment) rates, and the requirement to switch credit card processors and/or buy equipment.

Over time, these merchant cash advance loans can become a crushing burden to businesses that use them, as they watch a large percentage of their daily sales volume go to paying back the advance and associated interest. Additionally, many cash advance lenders have the option of changing rates over the term of the loan depending on the type of payment record and credit history of the applying business.

This type of uncertainty and high cost are what businesses need to avoid given the challenging environment that today's economic reality presents. Finding cost effective capital is possible, but one need to make sure that they understand exactly what is required prior to application so they can be prepared.

Now there is a much more cost effective way for businesses to receive bad credit small business loans. This new type of business loan, called credit card receivable financing, is characterized by:

Rates that are 50-80% lower than a Merchant Cash advance

No Upfront Fees.

No requirement to switch credit card processors

No need to buy any equipment whatsoever.

A true business loan that builds positive credit for the future, unlike a cash advance

Owner credit scores as low as 550. Max loan $500,000

Approvals in 48 hours, fundings in 7 to 10 days. Available in all 50 states.

A Credit Card Receivable Financing loan will gives a business the flexibility to get the working capital they need, even if their business or personal credit is not what it once was due to increase economic volatility and pressure. This makes finding cost-effective capital an even greater priority, because without it, today's business loan can easily become tomorrow's business back breaker if costs are not contained.

In today's economy, small businesses need a way to get the bad credit business loansl they need without being taken unfair advantage of by cash advance companies looking to reap unfair profits. While and SBA loan from a commercial bank is always the best option, many businesses simply do not qualify. For those businesses, a CCRF loan represents a real way forward. To find out more about one of the most cost effective way for merchants to get a bad credit small business loan, clickhere