Owners of small and medium-sized businesses often face one common challenge. They need capital to grow and strengthen their businesses, but bad credit may be holding them back. Forget trying to get a loan or line of credit from a “traditional” financial institution. Banks are just not lending to small businesses; and if you have bad credit or in a high risk industry, you can guarantee a rejection for bank financing.
Bad credit and high risk business loans are offered to high risk business owners, or to those folks who have bad credit which make them ineligible for any type of bank financing. There are only a few small business funders who offer bad credit and high risk business loans, and LVRG leads the way.
Businesses need capital to grow, plain and simple. Today’s business owner is constantly on the lookout for growth opportunities and must move quickly to take advantage of them. An opportunity for an acquisition or expansion can arise suddenly and needs an immediate response and immediate cash. There’s also the need to purchase equipment or inventory. And of course, there will always be emergencies and cash flow gaps that need to be quickly managed with working capital.Our bad credit business loans and high risk business loans were developed with small businesses in mind and provide a number of clear benefits:
- Shorter terms, usually 4-12 months
- Simple repayment terms
- Quick turnaround, as in approval, underwriting and funding
- Fast access to funds, with money in your account in as little as 24 hours
- Quick and easy application process; little paperwork required
We don't care about your credit, or your industry for that matter. In fact, we look at so much more beyond your credit history:
- Is your business growing?
- Are there growth opportunities ahead that financing will help you leverage?
- Are you paying vendors?
- How is your cash flow history?
We've found that poor credit history is not a good predictor of future business growth or success. Instead, it’s knowing when to seek business financing and having a plan for how you’ll use the capital to generate more revenue or accelerate it. Bad credit and high risk business loans more than pay for themselves when you factor in the additional revenue they help generate and business costs they can save.
There are many reasons why traditional lenders choose to classify a business as a high risk when it comes to borrowing money. Some typical high risk businesses are restaurants, construction companies, many seasonal and cyclical businesses. Even most new or young companies are considered high risk simply because they do not have a track record or proven sustainability. LVRG Funding has experience lending to high risk business owners, we understand that many of these companies are proven earners and deserve a small business loan regardless of their industry, credit history or time in business.
What are some options for small business owners with poor credit or in a high risk industry that need business cash fast for the holiday season?
#1. Small Business Revenue Based Loan - A small business revenue based loan could be your businesses lifeblood and provide it with several financial benefits. When your business is growing, chances are you'll need an injection of cash to continue its growth. Bank loans are often times too restrictive and near impossible to obtain these days anyway. In this situation, a revenue based loan may be the best solution, especially if you are in a high risk industry, have minimal time in business, lack collateral or have credit challenges. If you use it wisely, a revenue based loan could do wonders for your small business. Without being capitalized, chances are you will wind up in a growth stalemate and a revenue based small business loan may be a perfect option for you.
If your business is under 2 years old and starting to scale, you obviously want to ride the wave. You cannot do this without a dependable source of capital. Bank criteria is typically a minimum of 2 years in business, strong cash flow, positive ratios and perfect credit. However, revenue based loans are offered based off revenue and cash flow, not credit or collateral. Many times, your bank statements are enough to demonstrate that you can repay your loan.
A revenue based loan could be highly advantageous for your business, and quite simple to obtain no matter what your credit score, collateral or time in business. It helps you grow your business quickly and it does not saddle you down with long-term, highly encumbering debt. It gives you the cash that you need quickly, to grow your business your way. What more could a growing business need?
#2. Poor Credit Business Cash Advance - Poor credit business cash advances are offered to small business owners with poor credit, or those who have credit issues, bankruptcies, judgments, etc. There are only a few small business lenders that are willing to fund high risk merchants, and LVRG leads the way. Poor credit business cash advances are available to businesses that have been classified as high risk, and are therefore unable to obtain bank loans or any other form of financing from traditional lending institutions.
A poor credit business cash advance can provide small business owners with poor credit an upfront fixed amount of cash, up to $1,000,000 in as little as 24 hours. The funding amount is based upon a percentage of the businesses credit card receivables or daily cash balances using historical credit card receipts and bank statements to determine the initial advance. The business pays back the advance, plus a percentage, often referred to as a discount factor or hold-back, from a portion of their credit card receivables or cash receipts. The remittances are drawn from the small business owner on a daily, or weekly basis, until the obligation has been met. This is a highly streamlined and simple solutions, to get cash in the door quickly.
#3. Poor Credit Small Business Cash Flow Loan - Even if your small business is growing, you may find yourself needing extra cash to cover day-to-day expenses such as payroll, rent and inventory, or to pay for short-term projects that could grow your revenue in the long run. Uneven cash flow is one of the biggest challenges of small businesses throughout all industries. For this type of business financing, lenders provide you funds and use your future expected cash flow as collateral for the loan. You’re essentially borrowing from cash that you expect to receive in the future by giving the lender the rights to a predetermined amount of these receivables. These are primarily used for working capital or take advantage of short-term ROI opportunities. As the name indicates, the lender is more concerned with inspecting your cash flow (usually bank statements) to approve your application. Turnaround time is another great feature of a cash flow loan, as funding usually takes place in as little as 1 day in some cases.
One of the greatest benefits of a poor credit small business loans, revenue based small business loans, or a bad credit business cash advance, is that the funds can be used for a host of business expenses. There are typically no restrictions on how you choose to use your capital, however some of the more typical uses include:
Buying Equipment – Could a new computer, desk, telephone, cash register, POS system or software come in handy? Money to pay for the purchase of necessary business equipment could help boost your profits.
Paying Employees – Instead of running your business like a one-man show, a few extra hands could really help. Spending borrowed money on employee’s salaries can be the answer rather than disrupting your cash flow to cover this expense.
Purchasing Inventory – One of the most common uses for high risk small business funding is buying inventory. It takes products in stock to make business profitable, so it only makes sense to invest in enough inventory to make sure you always have enough to sell to customers.
Expanding the Business – If your business is experiencing some success, you might want to start thinking about taking things to the next level. A lump sum of immediate cash might be just what you need to get business booming.
Bad credit and high risk business loans can provide high risk small business owners with an upfront fixed amount of cash of up to $1,000,000 in as little as 24 hours. The funding amount is based upon a percentage of the businesses credit card receivables or daily cash balances using historical credit card receipts and bank statements to determine the initial advance, or loan. The remittances are drawn from the business customer on a daily or weekly basis until the obligation has been met.
Whether you have cash flow issues, history of liens, judgments, or even a bankruptcy... you can still get up to $1 Million to grow your business in as little as 24 hours. Get the funding you need to make this the business holiday season ever! Short term small business loans, bad credit small business loans and high risk business loans from LVRG have helped thousands of businesses just like yours not only turn the corner, but pull ahead in the race. Bad credit or not, we’re here to help your business grow. Call (855) 998-5874 or click below to get started.
MULTIPLE FUNDS MUST BE DEPLOYED AND OFF THE BOOKS BY THE END OF THE YEAR. WE HAVE TO GET THIS CAPITAL OUT ASAP. FINAL PUSH OF 2016. THE TIME IS NOW!