Unfortunately, not every business can boast that they have a stellar credit rating. The downside of this is, as a business with bad credit, you’re likely not qualified for the loans and financing you need to keep your doors open every day. For those wanting to start a new business, your credit will again affect the loans you qualify for and in some cases, since you have no credit history as a business, you won’t be able to qualify for certain loans as well.
But these aren’t necessarily reasons to be deterred from starting a new business or continuing to operate yours. The team of experts from Camel Financial wants you to know that there are some solutions available to you.
Don’t Go Into Debt Taking Out High-Interest Loans
To keep your doors open or start your business you may be tempted to take out a long-term loan with a higher interest rate just to keep your head above water, but it isn’t necessary. There are many affordable short-term business cash flow loans that enable you to have the quick cash you need to pay vendors or keep up with payroll. Plus, with minimal interest rates, you can slowly and steadily work on improving your business’s credit rating while keeping up with the day-to-day financial necessities.
Accounts Receivable Financing
Another popular option for those with bad credit is accounts receivable financing, which basically gives you fast cash upfront for a third-party to handle your outstanding invoices. Essentially, you’ll receive the cash from unpaid invoices immediately and have another business worry about tracking down late payments. This gives you the financial stability you need as a business to keep up with daily obligations, as well as begin to pad your cash reserves and focus on bringing in new customers.
It’s important to note that accounts receivable financing is not a loan; you won’t have any debts. It’s simply a business transaction where another company takes control of your accounts receivable processes and payment collection while giving you the cash on your invoices immediately rather than having to wait.
Contact us today for more about upping business cash flow with bad credit!
If you have bad credit, no problem, the team from Camel Financial would still love to work with you. To learn more about our services, contact us online today or call (949) 722-7717.