Are there guaranteed business loans no credit check?
Navigating the complex world of business loans alone can be overwhelming. The internet has thousands of options all with varying terms. The concept of guaranteed business loans no credit check sounds too good to be true.
The truth is there are business loans available that are guaranteed and don’t require a credit check. They are called revenue loans and they are based on your business income rather than your personal credit scores. Here is why revenue loans are so popular.
The Rise of Entrepreneurship
E-commerce, contractors, freelancers, and small business owners represent a new population of entrepreneurs. These individuals have traded in their 9 to 5 desk jobs in order to become their own bosses. Success in entrepreneurship is often a long and arduous road which requires a period of sacrifice and struggle. The personal credit scores of entrepreneurs often take a hit on the road to success, making it hard for even successful entrepreneurs to qualify for traditional bank loans. Revenue loans were created as a solution for entrepreneurs who are rebuilding their credit scores.
Lack of Collateral
Modern businesses are leaner than ever. Traditional overhead expenses such as leases and machinery are less common. Lenders are using receivables as collateral and taking a fixed percentage of each sale as payback. This means borrowers only payback as they earn. This concept is more flexible than traditional loan agreements which require a fixed monthly payment regardless of earnings.
Consumer Financing is Boosting Revenue
More and more small businesses are offering flexible payment options, such as consumer finance. These companies are increasing revenue because they can accommodate more clients. The idea is that by allowing customers the option to buy now and pay later, businesses can attract more clients who prefer these types of credit arrangements. Since the business owner receives funding in full, revenue figures drastically increase.
You can qualify for a revenue loan. Contact Financing Your Way to get started.