Getting approval for business funding isn’t impossible even if you have poor credit. However, it’ll be more of a challenge. This article is specifically about online personal loans and their benefits for bad credit merchants. Also, it’s about cash advances, as an alternative.
Online Personal Loan Benefits & Cash Advances
If you lack funds to pay for home improvements, high-interest debt, etc., a personal loan can be an option to rely on. However, bad credit can make it difficult to get approved for this type of financing.
Anyway, an online personal loan comes with more than one benefit for even those who lack excellent credit. Let’s see:
- No need to provide any asset or collateral.
- Fixed interest rate determined for the term of your loan. E.g., as of late July 2020, the average personal loan rate was 11.88%.
- The payments you must make on a monthly basis aren’t subject to changes.
- Ease of access and quick approval.
- You can receive the amount you need, but the approval will be based on your credit score.
- You can find more than one repayment options with terms ranging from 1 -7 years, based on the provider and your credit score. This means not all merchants can find these loans the best option for their financial needs.
So, you should take both the pros and cons associated with this type of loan before making your final decision. If you find out you need another business funding option, consider applying for a merchant cash advance (MCA) from a reputable provider. An expert alternative online lender of cash advances is the source you need for the fastest and easiest access to the necessary business funding.
- More straightforward EMI (equated monthly installment) process.
- You can use it for a number of purposes when being in need of quick funds, e.g. you can use it for car repairs, medical bills, vacation, debt consolidation, etc.
- Flexibility for paying a lower EMI in the early stages, which will increase during the years to come.
- You can find multiple providers, including banks, credit unions, as well as online lenders.
So, an online personal loan may be the funding option you need right now, however, it can’t be the right tool for everyone. Based on your credit score and the provider, the costs you must pay can vary dramatically. Weigh out all the sides before making your final decision.
Author Bio: Michael Hollis is a Detroit native who now lives in Los Angeles. He is an account executive who has helped hundreds of business owners with their cash advances solutions. He’s experimented with various occupations: computer programming, dog-training, scientificating… But his favorite job is the one he’s now doing full time — providing business funding for hard working business owners across the country.