Bad Credit Small Business Loans - Business Working Capital For Less

by: Neal Coxworth

In the difficult environment many retailers find themselves, it is not uncommon that many businesses may be having credit difficulties and are having trouble getting bad credit small business loans. Unfortunately, when these retailers attempt to get a loan at a bank, it can become very difficult to get approved if the credit is less than perfect due to restrictive guidelines placed on loans by business banks and the SBA.

For these types of retailers, often they are forced to go with a merchant cash advance from their payments processor. These "cash advances" are not regulated as true loans, which mean they can charge factor, or interest rates, as high as 50%. Not only are these unfairly high rates a problem but they are often coupled with a requirement to pay unfair upfront fees, purchase equipment and/or switch to a new credit card processor in order to receive the money.

Because these unregulated "advances" are not subject to typical lending laws, the interest rates often will change or spike up during the repayment period. High "Holdback" or payments for such a loan can also be a terrific burden on a business

Often advertised as "unsecured" and not contingent upon owners credit, what is often not mentioned is that the cash advance company will usually file a lien against the owners business as a security interest. This means that if the business is liquidated or sold, the cash advance company has legal claim to the proceeds outlined in the lien.

Fortunately, there is a much better alternative for merchants who need bad credit small business loans but do not want to be subjected to unfair interest rate, fees and other difficult requirements to secure working capital. This new type of true, regulated business loan is called credit card receivable financing and features:

Interest rates that are 50-80% less than a merchant cash advance

No upfront fees, points

No requirement to switch credit card processors

No requirement to buy equipment

Owner credit score as low as 550.

Pre-approvals in 48 hours

Fundings in 7 to 10 Business days

A true, regulated business loan that builds positive credit history.

To find out more about this new type of lower cost bad credit small business loan, see below