Searching for a Non-Traditional Business Loan?
Not everyone finds that the bank is their best option when they’re searching for a business loans with bad credit. But what else is out there, and how can you decide which is right for you?
By far the most secure way of borrowing money to fund a business is an asset-based loan, which is essentially a sort of mortgage that uses one of your assets as collateral. Almost any asset can be used, but do be careful – if you default on the loan then the things you secured it against will be repossessed, which – depending on what they were – could kill your business entirely.
If your business is producing something that has a solid ‘cool’ appeal to the general public, look into crowd-sourced funding. On Kickstarter, Indiegogo or Crowdcube you’re not borrowing money at all, and there are no repayments to make. All you need to do is make absolutely certain you’re able to deliver on the promises you make to your sponsors.
Most banks will offer you an overdraft on your business account, and they are a fantastic way of borrowing small amounts of money with small amounts of hassle. Don’t fall into the trap of living in it, though – doing so could damage your company’s budding credit rating.
If you’re already making a steady stream of credit or debit card sales, a merchant cash advance will give you a lump sum in return for an automatically-deducted percentage of these. This is incredibly flexible, as you only pay them back as you earn money – meaning you won’t feel the pinch if you have a slow month.
By far the most secure way of borrowing money to fund a business is an asset-based loan, which is essentially a sort of mortgage that uses one of your assets as collateral. Almost any asset can be used, but do be careful – if you default on the loan then the things you secured it against will be repossessed, which – depending on what they were – could kill your business entirely.
If your business is producing something that has a solid ‘cool’ appeal to the general public, look into crowd-sourced funding. On Kickstarter, Indiegogo or Crowdcube you’re not borrowing money at all, and there are no repayments to make. All you need to do is make absolutely certain you’re able to deliver on the promises you make to your sponsors.
Most banks will offer you an overdraft on your business account, and they are a fantastic way of borrowing small amounts of money with small amounts of hassle. Don’t fall into the trap of living in it, though – doing so could damage your company’s budding credit rating.
If you’re already making a steady stream of credit or debit card sales, a merchant cash advance will give you a lump sum in return for an automatically-deducted percentage of these. This is incredibly flexible, as you only pay them back as you earn money – meaning you won’t feel the pinch if you have a slow month.