How Bad Credit Small Business Loans Can Help Your Business

Credit comes from a Latin word that translates to 'believe'. It involves two parties, the lender and the borrower. It basically gives the lender information about your borrowing history from your credit reports. A credit report is a compilation of data showing when and how much you have borrowed and much you have repaid or are in debt. Credit scores are the biggest factor for many lending and financing decisions. Bad credit small business loans tend to have a bad rep, but they provide an important link in the chain of lending for lots of businesses. What is a Credit Score? A credit report provides potential lenders with a thorough overview of how diligently you have repaid your debts. The higher the score, the more likely it is that a bank will offer you a line of credit, knowing that your previous debt obligations have been taken care of in a timely manner. If you miss a payment or default on a loan, your credit score will likely drop, making it tougher to secure funding in the future. This can put small businesses in a tough spot, making it a lot harder for them to secure financing necessary for growth. Impact of Bad Credit business loans Credit scores are similar to a school Grade Paint Average, in that it follows your overall progress. and provides an easily understandable look at a person's creditworthiness. High credit scores make it much easier to obtain a loan or financing for your small business. Bad credit it make it a lot tougher to secure a loan from a bank or credit union. Fortunately there are opportunities for small businesses to secure funding, and that allow all businesses the chance to grow through financing. Here are some financing options for you if you have a bad credit:

  • Business Credit Card – These are the most common form of financing. Qualification for credit cards rely on traditional credit checks and banking institution's rules and regulations.
  • Microloans – These tend to be non-governmental organizations (NGOs) that offer small loans to traditionally marginalized groups like small business owned by minorities or women. Their requirements are typically more lenient than traditional loans, but may only be available for special organizations.
  • Small Business Merchant Cash Advances – Companies like BCBL offer a small business loans in just days (or sometimes even hours) with a small amount of paperwork. Checking credit scores or offering collateral is generally not necessary, as these are based on your daily sales and not your credit history, opening them up to a wider audience.

Seth Godin on “Overcoming The Lizard Brain”

How do we move past the fear of failure and make sure we are constantly improving both our project management skills and our business? Seth Godin offered a unique take on what he calls the “lizard brain” or that part of us that is focused on immediate gratification instead of long term wins.

The best way, he says, to conquer the lizard brain is to make sure you are constantly moving toward ‘shipping': iterating on your products/services to make them as satisfying to your customer base as possible, and getting them out the door on time and on budget. Check out the video for a great breakdown of his philosophy and actionable tips you can apply to your business today. Check out more info about business loans and bad credit.

Online Loans for Food Truck Owners

Food Truck Items Are Delicious!

There are many situation in which food trucks require loans to help grow the business. The traditional business loan industry isn’t very helpful in supporting small business owners who have poor credit history though.

Online loan help

Business loans for food trucks owners who have bad credit can be crucial,  especially since big loan providers can’t help with loans due to the low profitability of small businesses.

These small business loans for bad credit are generally inaccessible, which makes a lot of food truck owners simply fold the business entirely. However, the advent of the small business loans online means that a food truck owner can still securing the financing they need to expand the business, purchase equipment, or afford experimenting with new recipes or dishes. This isn’t just a crucial lifeline but also offers stability that small businesses need when they’re still growing, a time in which many food truck owners are still establishing a steady customer base.

Helping hand

The best alternative to traditional loans from big lenders is a merchant cash advance—an advance on your daily debt/credit card sales—which better accommodates the needs of small business owners who might have credit issues.

Do not give up on your food truck business. Before you throw in the towel, consider why you began your business in the first place. Building a business can b a tough and sometime thankless job, but there are options for going your business.  Do not assume that using bad credit business loans is a form of defeat: any successful business owner will tell you that securing financing is a crucial part of expanding you company and customer base.