Table of Contents hide How to Get Small Business Loans in Deerfield Beach FL Use Alternative Lenders Find a Credit Partner Get a Microloan Apply For a Merchant Cash Advance Talk to Family and Friends Small Business Loan Options Are Available How to Get Small Business Loans in Deerfield Beach FL Even with Bad Credit – 5 Best Tips Whether you’re a business owner in South Florida, Broward County, Palm Beach, Fort Lauderdale, Miami Dade County, or Palm Beach County, getting business financing for your company can seem impossible. Right? Especially when you have a less than perfect FICO score. The lower your score, the harder it is to get money from a bank. After all, those traditional lenders, otherwise know as banks and credit unions, aren’t interested in giving you a break (even if it means local economic development). They’re interested in making as much money as possible. Fortunately, as an entrepreneur, here are five ways that you can still get the financial assistance you need, even if your not bragging about your FICO score. Just consider these five simple tips and tricks. TIP #1 Use Alternative Lenders You’re probably not going to get a small business loan from a bank if you have poor personal and business scores. That’s just a fact. Banks will check with the primary rating services for credit approval before even looking at your application. Any score lower than 680 will disqualify you from the majority of traditional lenders. Many Florida banks will even deny businesses with a score between 690 – 719. It almost doesn’t matter what you have in your bank account. You might say that they only recognize two types of potential borrowers: perfect and delinquent. Top small business lenders, thankfully, are much more flexible. They look at factors like current cash flow because they realize that your credit score isn’t everything. Some best business loan companies will work with you even if your credit score is as low as 500. To start, all they need to see are the past three months of bank statements. Even a seasonal business can get approved by providing the business lender with the past 12 months of bank statements. These lenders provide: fixed payments can be daily, a weekly, or monthly fixed term from 3 months to as much as 60 months (although under current lending conditions, loan terms are between 6 – 24 months). TIP #2 Find a Credit Partner Bringing in a business or credit partner can also help you get the credit line you need. This strategy is in the form of qualifying for business credit cards. A business partner with an excellent credit history increases your chances of getting approved for a small business loan. Bringing on this type of partner also allows you to negotiate with the lender for a far better interest rate and repayment plan options. Of course, the challenge is finding a business partner who is prepared to risk their good credit history for the sake of your business. If only we all had friends like that. More than likely, you’ll run into the following scenario. “Credit” partners may lend you the money as a loan directly without a lender (otherwise known as debt financing), or they may give you the money in exchange for equity (equity financing) and require a percentage of your business or a combination of both. If you’re unsure how that works, I’d suggest watching a few episodes of “Shark Tank.” TIP #3 Get a Microloan If you’re not looking for a hefty amount to borrow, a microloan may suit your financing needs. By definition, the MicroLoan Program is through the SBA. Yes, they make microloans to start-ups, newly established, or growing business concerns. While the average loan is about $13,000 (up to $50,000), there are a few hurdles you must jump over. Namely, it would be best if you still were credit or risk-worthy. To qualify, you have to either provide personal guarantees or collateral, and usually, it’s both. You can use the money, if you are eligible, for: Working capital Inventory or supplies Furniture or fixtures Machinery or equipment The one caveat? You cannot use the business loan you secure through the SBA microloan program to pay down pre-existing debts or secure real estate. To summarize, in theory, a microloan is typically easier to qualify for because, as the name implies, the loan size is small. Most microloans are $50,000 or less. When you apply through an alternative lender, you may still qualify for a much larger business loan with bad credit. TIP #4 Apply For a Merchant Cash Advance The MCA is generally the easiest of all loans to secure. Why? The approval amount is a percentage of your daily sales (primarily credit or debit card). A merchant cash advance program enables you to sell a portion of your future credit card sales in exchange for immediate cash. This option is suitable for owners with bad credit but businesses with solid sales month after month. Even businesses with excellent credit often prefer merchant cash advances because of the simple daily payments, short-term periods, and straightforward lending process. Remember that your daily payments are a percentage of your daily sales or credit card revenue. TIP #5 Talk to Family and Friends This strategy is what I generally refer to as the 3 “F’s.” FAMILY, FRIENDS, AND FOOLS! While it’s common knowledge that you should not mix family and business, they can often get you the financial boost your business needs to survive. Raise money by making a presentation and sending it to your family and friends. You’ll be surprised by how many in your circle are willing to help you with your current financial state. Or you can consider the various crowdfunding sources like Kickstarter or Indigo. The good news is… Small Business Loan Options Are Available Each of these options has its pros and cons that are a factor before you make your decision. Suppose you’re looking for bad credit loans, a short term loan, SBA loan (commercial real estate or the PPP loan). In that case, local businesses can look to alternative online lenders to provide the best, most accessible, and most flexible options to meet your needs. They can offer local residents technical assistance and loan program to fund your dreams. So whether you’re in Boca Raton, Deerfield Beach, Pompano Beach, Daytona Beach, Miami Beach, or the 61 other “beach” towns in Florida, – Sunwise Capital can offer you assistance and help. APPLY NOW OR CALL 888.456.9223
