A cash flow loan, frequently
offered by online lenders, provides small business owners with access to
working capital, often by analyzing past revenues to predict future cash flow.
In the loan application process,
cash flow lenders are generally more concerned about strong cash flow in the
future than they are the borrower’s business or personal credit scores. Where
asset-based lending requires you to put up capital assets as collateral, here,
you may pledge your future accounts receivables.
What is Asset-Based Business Lending?
If you find this discussion about assets confusing, here’s
clarification. Loans typically fall into one of two categories:
- Secured
- Unsecured
Secured loans, also known as asset-based loans, require you
to put up some kind of collateral (asset) against the loan. That could be real
estate or equipment. Should you not be able to pay off your loan, the lender
could seize the asset to help recover what you owe.
Typically secured loans are for people who don’t have great
credit or who don’t otherwise qualify for unsecured loans. But they can also be
used to obtain better rates and terms on a loan.
Unsecured loans do not require collateral, though some may
require a personal guarantee (PG) which allows the lender to attempt to collect
from the borrower’s personal assets, not just the business, in event the loan
is not repaid.
What You Need to Know About Cash Flow Loans
When it comes to financing options for your business, cash
flow loans aren’t the cheapest. There are, however, some instances where they
make sense, like if your credit is less than perfect, or you need a fast cash
flow finance option.
But you must understand and accept that you will likely pay a much higher rate for
access to these funds. In some cases, it may be better to wait until you build
your credit and can qualify for a better rate elsewhere. In other cases it can make the difference between growing your business and succeed or lose it all.
Can You Get A Cash Flow Loan With Bad Credit?
One of the biggest benefits of cash flow loans is that you
may very well qualify for one even if you have bad credit.
Maybe you have credit card debt, or maybe your business is
too new to have much credit history. Whatever the reason, you don’t want your
credit situation to limit you from being able to access the capital you need to
grow your business.
In this case, a cash flow loan may be a way to get the funds
you need. If you are considering a cash flow advance or business revenue loan I am affiliated as an Independent Agent with a company that facilitates these types of loans and more, the requirements to qualify are really easy to meet and the online preapproval process does a soft credit check so you don't have to worry about a hard credit inquiry on your credit report just to find out how much you qualify for.
Your business can receive up to $25,000 TODAY (or 75% of monthly revenue) if you qualify AND apply before noon. Here is what you need:
- Business Entity LLC or Corp. (No Sole Proprietorship.)
- Business Checking Account. (Checking Account must be in the Business Name NOT in a personal account used for business.)
- Minimum $5,000+ Monthly Sales for the last 3 months consecutively.
- Minimum 6 Monthe in Business
- Owner has a 450+ FICO Score or better.
- Minimal NSFs/Negative Days. (No more than 5 NSF or Negative Days in the last 3 months.)
PLEASE NOTE: Current loan consideration. If you have a current capital advance open the amount of debt you still owe will be taken into consideration and cause a reduction in the final approval amount but MORE FUNDS (2nd Position) may be available.
If you have any questions or need help with the application process do not hesitate to call 973-861-5843 or email info@bizboom360.com
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