If your small business has no credit history, you might be surprised to know that you can still get a loan. Although the terms and conditions vary from lender to lender, there are several options for getting a small business loan. These options are typically secured, and you may need to provide collateral to receive the loan. These options include merchant cash advance (MCA), OnDeck, Bluevine, and Lendio.
Merchant Cash Advance
A merchant cash advance can be a useful solution for small businesses with less-than-perfect credit. This type of loan is typically a short-term solution and comes with a relatively low cost. However, be sure to calculate the exact costs before you apply for one. This type of loan is not for everyone, and some companies cater to those with bad credit while others offer much higher limits.
The cost of a merchant cash advance is based on the amount you borrow and the factor rate. Depending on your credit history and the strength of your business, the factor rate will be different. Generally, a merchant cash advance with a factor rate of 1.1-1.5 will cost you between $2,000 and $57,000.
The main use of a Merchant Cash Advance is to buy inventory. Having sufficient inventory to sell to clients is critical to the profitability of your business. Increasing your inventory to a sufficient level may also help you expand your business in the future. A merchant cash advance can also help you pay your employees.
The application process for a merchant cash advance is easy. As long as you can demonstrate a credit card volume of at least $4500 per month, you may qualify for a small business loan. However, you will likely have to make daily direct debits from your merchant account to prove your cash flow. Therefore, you should carefully consider how much cash your business will generate each month.
However, merchant cash advances are much more expensive than other forms of small business funding. The cost of a merchant cash advance is based on the factor rate – it does not depend on the length of the loan. However, if you are running a successful business, it may not be the best choice.
One drawback of a merchant cash advance is that the terms of repayment are rigid and inflexible. The repayment term is usually six to eighteen months. Moreover, if you are not able to make payments on time, you may have to pay extra fees or the loan can be sold to a collections agency.
Bluevine Small Business Loan No Credit is a lender that offers line of credit financing. Its interest rates start at 4.8%, and there are no monthly maintenance or draw fees. When a business takes a withdrawal from the line of credit, it turns the money into short-term loans that are payable in weekly installments. You can use their repayment calculator to estimate your monthly repayments.
You can apply for a line of credit through BlueVine online. You will need three months of bank statements and a business checking account. After you apply, your money can be available to you within a few hours. Once approved, Bluevine will provide a wire transfer to your account for a fee of $15. This option is a convenient way to obtain a line of credit for a business that has poor credit or no credit at all.
Bluevine has an A+ rating with the Better Business Bureau and 4.4 stars on Trustpilot. You can check the rate and other terms and conditions online, upload documents, make payments, and access funds. This loan is best for businesses that need funds quickly and have a minimum credit score of 625.
BlueVine is an online lender that specializes in line of credit for businesses. You can get up to $250,000 in line of credit for your business. There are no prepayment penalties and no monthly maintenance fees. You can repay the loan in six or twelve monthly installments, depending on the amount of money you borrow. You can also connect your business bank account and upload bank statements to support your repayment plan.
You can apply online for a line of credit or invoice financing through BlueVine. Once approved, you should have your funds within 24 hours. If you want to access your funds through a wire transfer, you can pay an additional fee of $15. Another alternative is an ACH transfer, but it can take two days. After approval, you will have access to a dashboard where you can review monthly statements and review your repayment progress.
BlueVine’s services are popular with merchants because they solve cash flow issues. Waiting for payment from clients can be very stressful on your cash flow. A line of credit from BlueVine will give you peace of mind when your invoices aren’t paid right away. If you do manage to pay back the loan, you can use the money for any purpose.
Lendio Small Business Loan No Credit is one of the best ways to get cash for your small business. It matches you with hundreds of lenders and offers a wide variety of loan types. The best part about Lendio is that it is free. This service is a great way to find the best loan for your business without having to spend hours researching.
As a business owner, you know that having enough money is imperative to the success of your business. Taking out a loan can help you meet your goals, whether they are expansion or payroll. With a Lendio Small Business Loan No Credit, you can pay for whatever your business needs – from new equipment to a new location. It also helps you streamline the application process.
Lendio is an online marketplace that gives you access to over 75 lenders. Their startup loans, which range from $100,000 to $750,000, can be funded within 24 hours. They also offer other types of loans, including SBA loans, equipment financing, and business acquisition loans. The application process takes less than 30 minutes and you will be paired with a dedicated loan manager.
While Lendio is a good option for many small business owners, there are other options available. You can also use invoice financing to fund your small business. These types of financing are based on your monthly sales and are a great way to get cash upfront. SmartBiz and Lendio are two of the top options for invoice financing.
OnDeck is another good small business loan provider. They have a low origination fee and a no-fee program for their loyal customers. The minimum annual revenue required for a business loan is between $50,000 and $250,000. If you meet those criteria, Lendio will match you with a lender in the network who can provide you with the funding you need. You will then receive a loan in less than a day.