Businesses with no credit or bad credit always have a hard time receiving funding through traditional methods such as banks and lenders. Â It is critical to have the right funding options especially if you have a business that is struggling to generate profit.
Unsecured Lines of Credit and merchant cash advances are the best options for your business. If you have been in business for at least 6 months, you don’t have to worry about a poor credit history or no credit at all. It is very much possible for you to receive capital for your business finances, growth, investments, inventory purchases, pay roll and other financial needs that your business might have.
BENEFITS OF UNSECURED BUSINESS LOANS AND MERCHANT CASH ADVANCES
Applying for Unsecured Lines of Credit for your business with poor or no credit is better than applying for a secured business loan. Merchant cash advances are the best tools for small business owners who need to expand their business in many ways.
Benefits that you will experience when using unsecured loans include
- You do not need collateral to get unsecured loans, unlike applying for secured loans.
- When applying for unsecured loans, you need not explain what the funding will be used for.
- Merchant cash advances provide flexibility in repayment. If you are a seasonal business owner you do not have to worry over making massive payments in the middle of a dead season. You can pay back funds when you have money coming in, based on the amount of money coming into your business.
- Whether you have poor credit or bad credit history, you still have a chance to receive the funding.
- No credit check is involved in the process of you applying for the funding.
- The loan is affordable. There is no high interest rate.
- Application for loans is quick and simple; the response is fast.
TYPES OF UNSECURED BUSINESS LOANS
Unsecured business loans are available in different ways.
- INVENTORY LOANS
These are the loans that you take when you need to buy products that are on demand for your business when you don’t have the money. You don’t have to wait to sell the current stock so that you can buy the things that are in demand. The loan will help you buy the needed products without problems.
- RENOVATION OR EXPANSION LOANS
When you need cash in order to make your business place more presentable or to the change location of your business, this loan will aid in the process.
- TEMPORARY CASH FLOW
When you need cash to pay employees and suppliers, this is the loan that you should apply for. This loan will help you to perform all your duties without having to worry about financial problems.
