Generally, a credit score between 300 and 629 is a problem for the entrepreneur hoping to secure funding and start their business. Banks simply won’t offer a small business loan to a companywith a credit score in this range. Banks and other traditional lenders look heavily at your credit score. While it’s not impossible to overcome this, the struggle is even greater for the startup entrepreneur.
The other factor lenders take into consideration is time in business. Even online lenders who offer bad credit small business loans prefer that your small business have a proven track record. Many small businesses with less than a year of operating history are denied. Unfortunately, the early years are when these businesses need to boost their cash flow the most.
Turn to Alternative Lenders
If you are struggling with a bad credit history and need startup funding, your best option will likely be an alternative lender. A lender like EMerchantBroker specializes in working with businesses and startups considered to be “high risk” by other lenders. For EMB, a high-risk categorization, bad credit and time in business are not a problem.
It’s true that bad credit business loans are typically much more expensive. But that’s not necessarily true of financing options with an alternative lender. With years of experience, their services are tailored to meet the needs of each business type and industry it works with. This includes offering affordable, flexible business funding options.
Bad Credit Merchant Account
A bad credit merchant account provides merchants with a bad credit history the payment processing solutions they need to operate safely and efficiently. In fact, a merchant account or cash advance from EMB can help merchants build their personal and business credit. Even merchants that have been placed on the TMF list – a “black list” for Visa and MasterCard accepting merchants – can obtain a bad credit merchant account with EMB.
In addition to a merchant account, merchants have access to a wide range of services, including: chargeback prevention, iCheck (electronic check processing) and business funding options. Through a large network of agents, business owners also have an experienced support staff ready to offer their support at any time.
The biggest advantage of all is the application process. The application itself takes only minutes to complete, unlike a small business loan with a bank. With a traditional lending source, business’ can wait weeks or even months to hear a response. With EMB, merchants can have their account set up and receive funding in as little as 24 hours. If your struggling to receive funding for your business or can’t secure the capital you need to launch your startup due to bad credit, consider the options a bad credit merchant account can offer you.