Bad Credit Loans for Business

Bad Credit Loans for Business

Why Bad Credit Loans Might Be A Good Idea

Typical scenario: you’re starting a small business. Your revenue may not be where it needs to be for a traditional loan, and your credit, unfortunately, isn’t up to par either. Often providing collateral in lieu of bad credit can help; however, with the term “collateral” you immediately think of your house or other such personal assets—and this isn’t necessarily comfortable territory. There are other options, however:

Many online and alternative lenders use other forms of collateral to help get you the funds that you need. Such collateral may include outstanding invoices or equipment. In this way, you have access to the money required without having to put your house on the line.

What is Invoice Financing?

With invoice financing, you are using your accounts receivable to get the working capital you need. As long as you have reputable customers with a history of on-time payments, the lender will offer you what amounts to a cash advance on outstanding invoices. Most often, you will receive 75-85% of the value of that debt up front and the balance upon successful collection. The cost of this type of loan product can range anywhere from 2-7% of the invoice value.

How Does Equipment Financing Work?

When you are looking to purchase equipment, the equipment itself is used as collateral for the loan. Even if your credit score is less than perfect, because there is equipment involved and thus tangible collateral, your credit-worthiness can be overlooked.

Much like a typical auto loan, the lender will give you the money needed for the purchase. You pay it back over a specified length of time. Once the loan is paid off in full, the equipment is yours free and clear.

At First Union, we offer a variety of such products to help with all sorts of financing needs. If you are interested in purchasing equipment or if you need cash quickly and have outstanding accounts that could be used as collateral, please don’t hesitate to contact us to see how we can benefit your business!

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First Union Lending LLC is a dually licensed Lender/Broker with its main offices located at 4900 Millenia Blvd First Floor Orlando, FL 32839. First Union Lending LLC and its ads are meant for continental United States, including Alaska and Hawaii small business owners. Business Loans offered by First Union Lending LLC have varying rates and terms that can range from 30 - 120 payments and all rates and terms are based on eligibility of the business and its owners. The actual terms are based on credit, business history, industry, amount and terms. As an example, a $5,000 loan paid over 5 years at 8% would have a total repayment of $6,082.92 over the life of the loan. We use the latest encryption to protect sensitive information transmitted online, as well as run our own secure server network to ensure your information is protected offline as well. California loans made pursuant to the California Financing Law, Division 9 (commencing with Section 22000) of the Finance Code. All such loans made through VBJ Consulting, LLC, a licensed finance lender/broker, California Financing Law License No. CFL#60DBO78163

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