What is Bad Credit Business Loans?
If you have bad personal credit and need funds as a start-up or grow your existing business your choices are:
- Invoice Factoring as the Factoring company looks more to your business or government customer’s credit than your own.
- Crowdfunding or Peer 2 Peer Loans, again they look at your idea or product versus your personal credit.
- Microloans & Non-Profits, smaller amounts available for certain demographics and geographic areas.
- Grants, not as easy to obtain as advertised, but they do exist.
- Friends, Family ( & Fools) or the 3F’s, be careful as if your idea fails, you have ruined your relationship. Only take money from the 3F’s if they can afford to lose 100% of what they gave you.
RELATED TERMS
- Automated Clearing House (ACH) & ACH Loans
Automated Clearing House (ACH) is a financial network allowing a business to electronically collect payments from their customers either in a single transaction or as recurring payments directly from the customer’s checking or savings account. The term ACH has also…
- Bridge Loans
Bridge Loans or bridge financing are short-term funds that "bridge" the gap between today's need for immediate cash to pay bills and the final closing of a pending investment deal or long-term financing package.
- Hard Money Loan
Hard Money Loan refers to a type of asset-based loan financing which typically has higher interest rates and is usually issued by companies, private investors or banks. The funds received by the borrower are secured by real property.