Personal loans for bad credit are useful for borrowers with limited funding options. Business owners struggle to raise capital because they’re new and don’t have corporate credit yet. It’s especially tough when you’re starting up a new business; however, you have to run it wisely. You need to ensure the costs of your products or services cover your expenses otherwise you’ll drown in debt. Sometimes, you need credit and you don’t want to look at personal guarantees; fortunately, there are ways for you to get financing. So, what options do you have?
Despite what you think, it is possible to get a business loan without a personal guarantee attached, but it won’t be easy. If you’re an established business then it’ll be a lot easier since you have corporate history and possibly, a decent credit score. If not, you may need to look to business loans for bad credit. These loans are useful for those who don’t have established corporate credit or those whose credit is fairly low. The loan can be used to expand the business or cover some additional start-up costs; however, it’s not free money, you will need to pay it back. You need to be careful how much you borrow so you can manage the monthly payments.
Corporate Credit Cards
Building corporate credit is possible with a credit card and they don’t usually need any personal guarantees either. While personal loans for bad credit can be ideal, you may want to avoid them until it’s absolutely necessary. Credit cards can be a useful alternative but they are like a loan – they need to be paid back. Fortunately, there are lots of corporate credit cards available and they might help you get started. If you continue to pay the balance every month, you might build on your corporate credit too. It’s an option to think of when you’re trying to build credit. You can know more at http://www.mercantileboston.com/6-emergency-loans-for-bad-credit-where-to-get-a-fast-loan/
Merchant Cash Advance
Businesses love merchant cash advances because they don’t need the best credit and there are no personal guarantees involved. Unfortunately, they can be pretty expensive – more so than traditional loans – and that’s a worry. It can still be a good solution to look into and may help establish some corporate credit too but a percentage will be taken from any sales you make. It’s an alternative to loans for bad credit but might not work for every business. You need to explore this option fully before ruling anything out.
Establishing Corporate Credit Takes Time
Business owners assume they’ll magically build their credit overnight and that they’ll become an instant hit. Unfortunately, that’s not the case; it takes months, if not years, to build an established credit history. Fortunately, there are ways to build corporate credit and the above options are solutions to consider. Of course, you have to look at all avenues and what would work best for your business. Personal loans for bad credit are useful and can be an ideal solution for most businesses but it needs to work for your business. To know more click here.