Are you considering to apply for a merchant cash advance (MCA) but you’re afraid of being declined because of your bad credit? Though traditional banks and financial institutions aren’t willing to work with merchant having bad credit, reputable alternative online lenders are ready to approve bad credit merchants for an MCA.
What is bad credit? Bad credithas to do with a past failure to keep up with your credit agreements and the inability to get approved for new credit. This implies you have failed to pay your past credit obligations on time, or maybe you didn’t pay them at all.
Companies called credit bureaus, which are also known as credit reporting agencies, collect your credit account history and compile it into a credit report. In case you have lots of negative information, late payments, or loan default on your credit report, you’ll be tabbed as high risk.
The Fair Isaac Corporation (FICO) calculates credit scores: these scores are the most popular ones. FICO uses the information from the 3 credit bureaus, meaning Experian, TransUnion, and Equifax, and weighs it in strategic ways to calculate the score.
FICO scores range from 300 to 850. Traditionally, borrowers who havescores at or below 579 are classified as having bad credit. According to Experian, 61% of borrowers with scores in this range are likely to fail to pay their loans or become seriously delinquent on their loans in the future.
Getting a Merchant Cash Advance with Bad Credit
The credit score of nearly 1/3 of Americans is below 601, according to credit bureau Experian.Experian estimates that 30% of Americans have poor or bad credit, lots of people have no credit at all, which can create similar problems as having low scores.
Usually, it’s too difficult to get business funding from a traditional lender if you’ve got bad credit. Thankfully, there are experienced and respectable business funding providers that can help you get a merchant cash advance bad credit without any challenges.
A merchant cash advance is the perfect business loan alternative when it comes to getting business funding with bad credit. There are no application fees, no obligations, no personal collateral, and no late-payment fees bearing down on you.
Look for alternative online lenders that offer creativity and flexibility, and consider the impact of bad credit, but listen to each merchant’s story. Turn to a merchant cash advance provider that believes in small business owners and understands the impact of bad credit. The true professional in the field won’t penalize businesses for going through a rough financial patch and will do its best to help them overcome the hardships.
Author Bio:Business Funding expert, Nathan Hale, founded First American Merchant with his eyes set on helping the backbone of our country, small business owners. His passions include writing/producing music, and travel. First American Merchant is America’s Best merchant cash advance bad creditcompany, serving both traditional and high-risk Businesses.