PRO'S & CON'S OF BAD CREDIT BUSINESS LOANS
- Less paperwork than traditional loans
- Low or no minimum FICO score requirement
- No pre-payment penalties
- More expensive than a traditional loan
- Lender underwriting can be extremely complicated and lengthy
The Process of a Bad Credit Business Loan Approval:
- Business owner accepts credit cards, and processes more than $5,000/month in credit card transactions.
- Business owner completes simple one page application.
- Based on their revenue, business owner receives an offer from the bank.
- Business owner accepts the terms and signs lending agreement.
- Lender wires funds directly into business owners bank account, usually within 1 business day.
- Lender receives a small portion of business owners credit card sales on a daily basis in order to repay the Merchant Cash Advance.