A business can prove to be very important in a person’s life. In particular, a booming business can be a great source of income and it can help you to save enough money for other uses. Starting a business is quite easy if you have a reliable source of funds. But the story would be different if you wanted to start a business with a limited budget. If you really need to start a business, you can take advantage of a business loan.
There are many financial lending institutions that lend out funds to individuals who have prospects of starting their own businesses. But, it becomes tricky if the borrower has a poor credit score along with bad debts. As a matter of fact, very few financial lenders would be willing to lend out funds to individuals who have bad debts. Fortunately, there are many alternatives that you can look out for. The passage will highlight some of the alternatives that you can rely on if you have a bad debt but you need a business loan.
There are revenue based loans
If you have a business that can enable you to make deposits on a regular basis, you may be eligible for revenue based loans. In particular, businesses whose deposits are made on a regular basis can generate enough revenue to enable the business owner to borrow a loan. Financial lenders always consider the frequency of the deposits that are made by a business before granting this type of loan. Up to 10 % of the total monthly revenue may be available in the form of a loan. In most cases, the financial history and the credit score is not taken into account.
The merchant cash advance program
This kind of program is based on the sales made on credit cards. In the case of this program, funds are made available to the borrower based on the projected number of credit card sales. There are many businesses that have many credit card sales on a monthly basis. These many be enough to grant the business owner a merchant cash advance loan.
Business credit partner
The use of a business credit partner can also be a very good option. It is particularly important if your business partner has better credit score compared to yours. The financial lender will take into account the actual credit score belonging to your partner when assessing your eligibility for the loan.