Pay Off Short Term Business Loans

Posted by & filed under Merchant Cash Advance.

Small business owners across America come into a cash crunch from time to time and struggle to find affordable funding that fits their needs. They reach out to their banks, but they don’t fit within the bank’s box, then they are declined or turned away. So, business owners are now turning to alternative lenders and short-term business loans to fix their need to cover an inventory crunch or vendors that are slow-paying them past 60 to 90 days.

One of the top leading products in the marketplace that business owners are turning to are short-term business loans or merchant cash advances. This type of funding is an advance on future receivables, but lenders only advance 10% to 15% of future receivables. This is never enough for the business owner to resolve their need for funding so they begin to stack multiple advances together thinking this is the way out using one advance to pay off another, but it only compounds the issue and creates a serious cash flow crunch.

Short-term loans are 3 to 18-months in term so being a short period of time the lender needs to keep everyone honest as interest-only payments with a balloon principal payment at the end simply don’t work. So, all short-term lenders do daily or weekly payments to pay back the advance/loan and when the advances are stacked one on top of the other all your available cash gets swept out of your checking account leaving you nothing to work with.

So, if you are caught up in short-term loan or merchant cash advance mess here are some ways to pay them off and move one.

0% Business Credit Cards

  • $25K to $80K Depending on Your Credit
  • 700> FICO
  • < 30% Utilization on Your Personal Debt
  • 4 or Less Recent Inquiries

Personal Loans for Business

  • $25K to $200K Depending on Your Credit
  • Interest Rates Start At 10%
  • 1 to 7 Year Terms
  • Monthly Payments
  • No Prepayment Penalty
  • 650> FICO
  • < 30% Utilization on Your Personal Debt
  • 4 or Less Recent Inquiries
  • Do You Rent or Own a Home?
  • Do You Have $50K > In Verifiable Income?

Mid-Term Business Loan

  • $25K to $500K
  • 650> FICO
  • Interest Rates in The Teens
  • 1 to 5 Year Terms
  • Monthly Payments
  • No Prepayment Penalty
  • Is Your Company Growing and Showing Profits?
  • Is Your Cash Flow Still in Tacked?

Asset-Backed Equipment Loan

  • $25K to $5 Million
  • 650 > FICO
  • Interest Rates in The Teens
  • 1 to 5 Year Terms
  • Monthly Payments
  • Do You Have Assets That Have Value?
  • Are You Willing to Put the Asset at Risk?

No Personal Guarantee Business Loan

  • $20K to $100k
  • 1 to 5 Year Terms
  • Monthly Payments
  • No Personal Guarantee
  • Your business doesn’t have any judgments against it, correct?
  • Your business has never been in bankruptcy?
  • Your business is over 4 and a half years old?
  • Your business has leased or financed something before, like a copier or credit card terminal, or a vehicle, or some other piece of equipment, or it has had a true bank loan or line of credit at some point?
  • To the best of your knowledge, your business has paid its trade lines, like any Net 30 accounts mostly on time.
  • It’s never been 60 plus days late or defaulted or went into litigation with a creditor?

Reverse Consolidation

  • If All Else Fails, You Can Do A Reverse Consolidation
  • It’s Another MCA Position But At A Lower Rate Providing A Savings
  • The Lender Will Release Funds On A Weekly Basis to Cover The Other Positions
  • Call For Details

BitX Funding is the online marketplace for small business owners looking to fund a project. We specialize in connecting small business owners with lenders who will compete for your business. We believe small business owners drive the economy and we are passionate about helping your company reach its full potential.

You can reach loans specialist by toll-free at 1-800-824-2407, or email at info@bitxfunding.com or applying online here and we can guide you on which loans are the best fit for your business.

Leave a Reply

Your email address will not be published. Required fields are marked *