Based on bank lending practices, one might be misled to believe that people with a bad credit history are not capable of running successful businesses, unlikely to repay business loans, and overall, risky borrowers. But the truth of the matter is; having bad credit does not make a person incapable of running a profiting business.
There are many reasons why a person might have a low credit score that may have no relation to their money management skills. These include having obscene amounts of student loans to repay after graduating before getting a job that can support those payments, and getting caught in the lure of credit cards as a young adult and having to pay for it later. But in the end, these mistakes can serve as a learning experience, teaching a person to make wiser financial decisions in the future and making them better equipped to handle financial problems that are presented within their business.
The question remains: Is there hope for business owners who have poor personal credit histories? Is there a way to get a bad credit business loan?
The answer is yes. Through a business cash advance, a business owner can get a loan for his / her business even if he / she has bad credit. This is because business cash advance lenders take the strain of repayment off of the borrower, making the business responsible for repaying a loan.
How does this work? A business cash advance is a purchase of a business' future credit card sales. Business cash advance companies provide an up-front cash payment in exchange for a small percentage of the credit card sales that a business makes until the loan is completely paid off. Therefore, having bad credit is not a disqualifying factor when it comes to receiving a business cash advance.
The repayment of a business cash advance also has no affect on a borrower's credit score. So the borrower does not have to worry about worsening his / her credit score when receiving a business cash advance.
Many Americans do not have the 700 point credit score that is usually required to receive a business loan, but that does not mean that their dreams of running a successful business should be shattered. Fortunately, the availability of business cash advances gives business owners with bad credit another option, making it possible for them to finance the development of their businesses.