Apply for a Small Business Loan Based Upon Cash Flow, Not Credit

by | Mar 31, 2013 | finance

Sometimes it takes all your ambition, energy, time and effort just to keep your business afloat from month to month. When minor items fail to work, or you have a problem with human resources, or any other number of things go wrong, it can be devastating. Moreover, if you are struggling to grow or expand in a burgeoning industry, you may feel yourself approach the threshold of breaking through repeatedly, only to find your business receding as quickly as the tide.

Many business owners realize at some point or other that it is time to Apply For A Small Business Loan to get over the final hurdle with is preventing full success, growth and prosperity. Going to a bank usually is not the quickest route to obtaining needed capital. During a recession, banks are very shy about lending money to anyone because of the risk, especially struggling small business owners. Other traditional lenders have similar limitations.

An alternative that is growing at an increasing rate, however, is to apply for a small business loan from a company that has established itself as providing cash advances based on future credit card purchases. Merchant cash flow loans are short-term micro-loans that may be available to you from providers that also specialize in merchant cash advances. Usually, if you have a profitable business but suffer from poor credit, you can apply for a small business loan and be approved without having to worry about your credit or providing collateral.

Struggling small businesses that are seeking to expand or grow benefit from obtaining the capital that they need in order to push through the threshold and increase profits. Whether you intend to grow your business, get started in business, or keep your business afloat with better security and performance, if you apply for a small business loan from a microlending company or a provider of merchant cash advances, it is likely that you will be able to obtain capital extremely quickly and without any major limitations.

The major difference between a merchant cash flow loan and a conventional bank loan is that the latter looks primarily at your credit history. If you have bad credit, you don’t get the loan, and your business suffers. A merchant cash flow loan, however, doesn’t consider credit but looks at your recent cash flow history. If you have proven cash flow that suggests the loan may be repaid expediently, then your business likely qualifies.

Many business owners turn to these vehicles to help lift them out of financial difficulties, giving their ventures the additional financial boost needed to achieve success.

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