Cash Flow Based Unsecured Business Loans Taking The US By Storm
That’s right folks, the traditional small business loan based on credit seems to have gone into hibernation. Even JP Morgan Chase (NYSE: JPM) is said to be planning an entry into this high demand market in coming years.
Bad credit can haunt you long after a financial indiscretion has been made. Sometimes, bad credit isn’t even your own fault, but it still punishes you long after the incident that caused it to spiral downwards. Bad credit can stop you from doing a number of important things, from getting a car or a house, to growing or even starting a business.
If you’ve managed to get a business off the ground despite your credit, getting it to grow without loans can be very difficult. Loans are necessary in order to make large purchases of inventory, get better equipment, or do almost anything related to the expansion of a business.
If you’re hampered by having to try and grow your business with just cash flow alone, cash flow based bad credit loans may be the answer to helping you achieve your goals and grow your business, even if your credit isn’t good.
What is cash flow based lending?
Cash flow lending is a form of lending based on the financial projections of your company. If you know how much your company is going to make in a day, or a week, or a year, you can get loans based on those projections.
If you don’t have great credit, you probably won’t be able to borrow millions of dollars on projections alone, but there is still an avenue open to you—same day cash flow based lending. This type of loan offers smaller risk to the lender because it’s only one day worth of money, but allows you the flexibility to use all of your money right now, not at the end of the day when it becomes available.
If you have consistent cash flow, you can use these lending companies to help you make the most of your finances, and truly grow your business.
Even if you have a steady cash flow, there are other problems that may prevent you from using cash flow based lending. There are laws in certain locations that restrict the kinds of business that can get a cash flow loan. These laws vary by state, so check with your local laws to make sure your business qualifies.
There may be other requirements your specific lender wants you to meet. These include things like your business needing to make a certain amount of gross sales, or a certain number of transactions needing to be made per month.
If you’ve worked hard to build your business, but still can’t get the loans you need due to bad credit, a same day cash flow loan may be the right choice for you. Exploring your options is an important part of being a forward thinking leader, and a same day loan could be the solution.
Don’t let bad credit stop you from growing a business. You got to where you are with your business today through hard work and planning ahead. A cash flow loan is one more tool you can use to help you get ahead with your business.