Due to the state of the economy in recent years it has been quite difficult to get small business loans as banks have tightened up their criteria for how you qualify. This has caused a number of problems for businesses as they have ended up with cash flow problems that could have been avoided if they had only been granted this additional funding to get them through a tough time.
However the outcome of this is that other types of small business loans have appeared and these can be applied for even if the person or businesses have less than perfect credit. This alone can be responsible for helping to stimulate the economy due to the fact businesses can once again get some kind of financial help.
This relatively new method involves merchant cash advances and they are supplied by several companies which does mean you have some options available to you. It is therefore a case of spending some time just going through each one to see who is offering the best rates as of course they shall change from company to company.
This form of loan works in a different way in that it is tied in with them taking a percentage of your future sales rather than paying back a set amount every month. This does mean they tend to focus on certain types of businesses with restaurants and shops being a real favorite amongst companies offering this kind of financial help.
One bonus side of this however is that if you have a bad month then you are going to have to pay out less instead of struggling to cover this particular bill. This does relieve some stress as you will not have them knocking on your door and threatening to close you down as they would then be unable to get any money back at all.
The rates you pay are higher than what you would find with a bank and different companies do have different top and bottom figures about what they shall lend. This is why you do need to look around as some companies offer rates that work out to almost 200% but if you have a bad credit rating then this is the price you need to pay.
You should therefore spend a bit of time trying to get feedback from other businesses as to whether or not a company was good or bad to deal with. As they are taking a percentage of your future earnings there is no way you should go into this kind of deal blind as it makes it harder to then budget accordingly.
So if you are unable to get small business loans then look into the possibility of getting a merchant cash advance as an alternative. The rates are higher than a loan but if you have no other choice then it is at least an option to think about but do remember that it is tied in with your future earnings and budget for this change in your plan.