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 if they don’t fit within the bank’s box, 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 have been slow-paying them past 60 to 90 days. Businesses are looking for fast sources of funding and fast ways to pay off loans.
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 funding needs. Hence, they begin to stack multiple advances together, thinking this is the way out of 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 principal balloon payment at the end simply don’t work. So, all short-term lenders make 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 a short-term loan or merchant cash advance mess, here are some ways to pay off and move on.
0% Business Credit Cards
- $25K to $80K, Depending on Your Credit
- 700> FICO
- < 30% Utilization of 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 of 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 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
1_$20K to $100k
2_1 to 5-Year Terms
3_Monthly Payments
4_No Personal Guarantee
5_Your business doesn’t have any judgments against it, correct?
6 Has your business never been in bankruptcy?
7_Your business is over 4 and a half years old?
8_Your business leased or financed something before, like a copier or credit card terminal, a vehicle, or some other piece of equipment, or has it had a true bank loan or line of credit at some point?
9_To the best of your knowledge, your business has paid its trade lines, mostly on time, like any Net 30 account.
10_It’s never been 60-plus days late, defaulted, or gone 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 every week to Cover The Other Positions
- Call For Details
BitX Funding is an 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 are passionate about helping your company reach its full potential.
You can reach a loan specialist toll-free at 1-800-824-2407 or email [email protected] or apply online here, and we can guide you on which loans are the best fit for your business.
