Being a businessman and looking for business loans with bad credit is not easy in the world today. Businesses today face many cash flow problems and one must find ways to overcome them. The falling economy, inflation, and the unpredictability of the stalk market has made the business world quite volatile and capricious. This state of our world today is a combination of revolutionary technologies coming forward, as well as the oligarchy with which the banks hold a monopoly over the financial world.
It was already quite difficult to get business loans in general because of the tedious bureaucratic system of the banks. But if you are looking for business loans with bad credit, then it becomes completely impossible for you to get any business loans from banks. This is because; most banks will completely reject you on the basis of you being a bad bet.
Fortunately, there are still ways through which you can attain business loans with bad credit. But for that, you will have to look beyond the traditional financial methods and look towards the recently exploding phenomenon of Merchant Cash Advance. And so, through this article, we will talk about how Merchant Cash Advance is better than traditional bank loans in many other ways as well. First, we will take a look at banks and what disadvantages they cause business owners.
Business loans with banks
Once upon a time, banks had been established because of business trade, so their methods were in support of business owners. They used to back up new businesses and helped already established businesses to expand. Many great multi-national companies at the adamant of American spread of capitalism were able to spread their wings in many different countries because of banks.
But sadly, all of that changed since the beginning of the nineteenth century when banks themselves became multinationals. Afterwards, they only backed up the wealthy and all the ‘good bets’ and stopped taking any chances with small business owners looking for business loans with bad credit.
Furthermore, here are a few disadvantages that come from acquiring business loans with banks.
- A tedious process: Right from the moment you approach a bank with your business loan proposal, you begin to experience their slow and tedious process. You will experience delays and lose a lot of time. A typical bank loan takes about a few days to a few weeks to process.
- Varying restrictions: Business loans from banks come with many restrictions. One of which stops you from using your loan money in anything other than what the original terms had agreed upon, regardless of your emergency situation. Secondly, it won’t let you get your financial capital in a lump-sum even if you are in a hurry, and you will still be subjected to attain the capital via installments. Lastly, you cannot attain business loans with bad credit from banks at any costs.
- Collateral: Even if some banks might agree to give you loans even with a bad credit history, they will ask you to provide huge collateral, like your home, or your whole business itself. This proposition puts a lot of pressure on you, which can result in you making mistakes. Furthermore, if you forget to pay your installment payment on time, you will be asked to pay a fine as well.
These are the reasons why you should not even try to get business loans with bad credit from banks. So, instead let us take a look at Merchant Cash Advance and find out how much better or worse it is than a business loan from a bank.
Merchant Cash Advance
Merchant Cash Advance is a revolt against the monopoly of banks that create a biased mayhem for the business owners seeking capital investment in the destabilized financial times. The ironic part is that these financial times are also created by them. And that is the reason why Merchant Cash Advance is growing exponentially in size so rapidly because it is a system that is created by the business owners, and by the business owners themselves. Merchant Cash Advance is very useful in expanding a business and here you can find several ways in which it can be expanded.
Merchant Cash Advance works this way, a business owner who is seeking business loans with bad credit approaches a Merchant Cash Advance independent lender with his/her proposal. Due to high selection rates of Merchant Cash Advance, the lender accepts and calls a meeting. In the meeting, both the lender and the debtor stand at an equal business stage where they negotiate upon the terms and sign the contract.
Following the contract, the business owner soon receives the entire loan in a lump-sum to his/her account. And the repayment of the loan takes place through a pre-agreed upon a portion of the business owner’s future credit card sales. This portion gets transferred directly to the Merchant Cash Advance Lender until the loan is repaid along with interest. And here are a few more advantages of Merchant Cash Advance:
- Fast track process: Merchant Cash Advance understands that for a business owner, time is money. And so, Merchant Cash Advance is designed to function in such a way that the entire process from the initial proposal to the transfer of loan amount can happen in just twenty-four hours.
- No collateral required: Merchant Cash Advance allows you to have large amounts of business capital loans without any collateral. This is because you are selling your future credit card sales while paying a bigger interest than bank loans.
- Bad credit is not a problem: Business loans with bad credit are not a problem for Merchant Cash Advance. You will not be asked for collateral, just a little more interest, and no restrictions will be attached to you because of your bad credit history. So, feel free to apply to Merchant Cash Advance even if you have a bad credit history. All you have to do is choose the right one!
So, as clearly been proven above, business loans of any kind, and not just business loans with bad credit are better with Merchant Cash Advance than banks.