Are you worried about your terrible business credit score and being turned down by all conventional money lenders? If so, don’t worry; we at Funding Unites, L.L.C, offer you the best start up business loans with bad credits.
We have a special business line of credit in the line, Merchant Cash Advance. It will offer you a great advance funding option online without considering your credit score or financial history.
We know in financial crises, it is very hard for an entrepreneur to get all the money-related help to maintain his or her business operations smoothly.
As with conventional advances, the bank or lender may take a great deal of your precious time and require a huge paperwork to approve your business loan. But you may be in need of urgent money. In this case, it will be an extremely overwhelming task for you. And that’s the reason you should go for a Merchant Cash Advance.
What is Merchant Cash Advance?
This is a type of short-term business line of credit and unsecured business loan with high-interest rates. In this type of credit, you actually borrow some cash advance from the merchant against your expected future credit card sales. It is best for startup business owners having short of working capital with bad credit scores.
Main Features of Merchant Cash Advance
No credit scores required
No Collateral required
Very simple application procedure
Easy and less paperwork
Approved against your future profit
Minimum approval time (24 Hours)
Flexible repayment terms (According to your sales)
Best for small businesses or startup owners
What Is FICO Assessment?
The word FICO stands for Fair Isaac Corporation - A well-known credit rating agency, which issues credit scores to every individual or company based on their financial transaction history. The credit score is the three-digit number issued by FICO. Your credit score is based on a comprehensive credit report which includes all of your business and personal information. It shows your credit history, loans, debts, and billing information.
Why Is FICO Score So Important?
Your FICO score is important in the eye of lenders due to the following reasons.
It determines the ability of the borrower to repay the loan.
A poor credit score (below 629) makes the lender cautious about your loan reimbursement ability in the future.
It helps you to secure the best business loan with favorable interest rates.
Your high credit score (more than 650) reduces the risk of the lender and vice versa.
It potentially impacts the decision of the lender whether it will give the applicant loan or not.
How Does A Poor Credit Score Impact on Advances?
As we know the importance of the FICO score. Almost more than 90% of lenders use the FICO score to make a rational lending decision.
No single lending company is willing to offer its funds to a borrower who has a terrible credit history. Sure, it is very risky for the lender to make a grant to someone with a poor reimbursement record. The reliability of the entrepreneur is more significant to any lending agency.
Of course, it is not possible for every organization or individual to have an excellent FICO score rating. So there is an alternative option for those with bad credit scores. There are many lending agencies including banks or private companies which offer credit advances for those who are broke. But they charged a high rate of interest on lending money.
Besides this, these lending organizations give a short measure of time to reimburse the credit as they don’t want their money to be in the hands of an organization or individual with low reimbursement capacity.
In this situation, the MCA comes in front and will work the best for you. It will provide you an awful opportunity of fast and quick unsecured funding online with great reimbursement terms.
The beauty of the MCA supplier is that they don’t pass any judgment on the basis of the financial health of the organization.
Types of Merchant Cash Advance Payments
Automated Clearing House (ACH) Loan Repayment
This is a very fast and unsecured funding option for small businesses having a terrible credit score. In this business line of credit, you have to sign an agreement with the lender. By signing the agreement you have authorized the lender to access directly to your bank account. This is an automatic clearance of a fixed amount of your loan to the lender’s account without any other action needed.
It is very easy, fast, and steady. No collateral or credit score is required here. There are automatic payment schedules set daily or weekly. Before approval, the lender will check your business bank account balance and turnover. This is an online automatic system. It is sometimes called a cash flow loan or direct deposit loan. It is the best form of MCA.
MCA-Split Repayment
It is also a type of MCA advance reimbursement. In this online payment system, the lender and borrower are agreed to split all the daily credit card transactions of the borrower. Usually, from 8 to 15 % of credit sales per month goes directly to the lender’s account.
This type of reimbursement payment is different from the ACH, in a way that, in this payment system the lender gives significance to the monthly credit sales rather than to daily sales. The best thing is that there are no repayment schedules to the lender on the days when your business is closed or there are no sales incurred.
MCA Lockbox Reimbursement
It is also known as the Bank account withholding method. In this type of MCA reimbursement, there are three parties involved. Your bank, your credit card processing company, and the lender.
In this method, your bank plays the central role to manage the whole transaction. Here your bank keeps all the credit card sale revenues credited to your bank account in a lockbox. At that point, your bank splits the credit sales and forwards some portion of the sale revenue to the lender directly and the remaining balance is deposited into your bank account.
As there are more parties involved in the transaction therefore it takes more time and causes delays.
Thus, in this way, small businesses or startup owners have an option of awful credit advances on the web. Any small business organization having dire need of urgent cash advances to maintain their current working capital and cash flow should go for MCA.
MCA suppliers are the best alternative loan options for small business startup owners. Other lending organizations and banks may look into your financial health to subsidize you, but the MCA suppliers are only concerned about your volume of the business.