Before applying for a loan, it’s important to have a solid business plan and be aware of the type of loan you’re looking for. Depending on your credit score, you may be asked to provide personal assets and financial information to support your application. Ultimately, your business plan will be the basis of your business financing. Listed below are some of the different types of small business loans available in Florida. Listed below are a few of the most common types of small business loans:
Working capital loans
If your business has bad credit, it can be difficult to obtain working capital loans. You must know your exact monthly cash flow and anticipate upcoming changes to your business in order to determine how much money you need. Moreover, you must check your personal credit score. A personal FICO score of 530 or above is required in order to obtain working capital loans with better terms. So, what should you do if you have bad credit and need working capital loans?
Lines of credit
A line of credit is a type of loan for a small business. It works like a credit card, and a business can use it whenever they need it. The repayment terms of a line of credit are generally six to 18 months. This type of loan is also useful for businesses that have high credit card sales because they can use the money for working capital. Depending on the terms of the loan, the lender will also have different requirements for the loan.
Merchant cash advances
When your business is in need of extra funds, you may be considering a merchant cash advance. This form of financing does not require any collateral and has a short payback period. The benefits of a merchant cash advance make it ideal for small businesses in need of extra working capital. While a traditional loan may require a high credit score, a merchant cash advance will likely have a lower interest rate and shorter payback period than a traditional loan.
If you’re looking for a small business loan with bad credit in Florida, you can apply for one through a marketplace like Lendio. This website matches you with 75 different lenders to determine which one will best suit your needs. You only need to have a low credit score of 560 to apply for a loan, and you don’t have to pay interest on funds that you don’t use.
If your business has been experiencing slow cash flow, invoice factoring may be a great solution. An invoice factoring company will purchase your invoices and advance up to 70% to 90% of the value. This method removes the need for your business to wait for payment from your clients. You can also select non-recourse factoring, which guarantees that you will be paid at least a portion of the invoice value. The factoring company then follows up with your clients to collect the remaining amount.