Applying For Business Funding With Bad Credit
In today’s day and age applying for business funding with bad credit does exist. Having bad credit will not automatically decline you for funding. We will go over the ways to apply for business funding and what will be needed for you to apply and possibly get approved.
Your business will have to be incorporated. When you start any business this should be the number one thing you do. This is a very easy process with the internet today. They will ask you a series of questions that are very easy to answer.
Have a business account
Once your business is incorporated you will have the paperwork to acquire a business bank account. Anytime you apply for a loan, business financials will be asked for. With our options, you will need to have at least 3 months of banking statements showing income. These statements will be available with your online banking portal. A lot will be shown on these statements such as monthly profit, cash flow of the business, insufficient funds. This is will be one of the most important parts if you have bruised or damaged credit. If you have strong business income sometimes damaged or bruised credit can be overlooked.
Understanding funding options
When you do apply for business funding know that there are many different options. Business loans, Business line of credit, merchant cash advance. A business loan is going to be more common for very strong business along with good credit owners. These still are available for all credit types, just a little tougher to be approved for. A business line of credit does not seem to be used as much anymore; a strong business is definitely required for it. For bad credit and poor credit, a merchant cash advance is a way to go. These are very easy to get approved for, you will need to have:
3 months bank statements
6 months in business
A business checking account
Less than 5 NSF fees
A signed application
$5,000 or more in monthly deposits
Once these are obtained the company that you go through will be able to get you a decision on your funding. If you are approved for a merchant cash advance you will typically have terms from 3 months to 9 months with a daily payment that will be paid Monday through Friday. Yes, this may not be the best way to get funding but this will get you cash that you need and as easy as possible. Next, you will provide documents to verify your business. Below these are an example of what you will need:
Ein Issue Document
Business license if applicable
If you do get to that point with your merchant cash advance you may still be declined. Unfortunately, this does happen if some of the information was incorrect when given to a company.
Overall hopefully this simple guide for applying for business funding with bad credit helps you understand your options and how the process will go a little more. If you wish to apply or have questions we can be reached with the button below.