People with a less-than-stellar credit history find getting a traditional small business loan from a bank. At Principis Capital, we work with business owners to help get them funding they need, even when they’ve previously been rejected. Here are some common questions we receive:
Will my credit be a problem?
No, as long as you are not currently in bankruptcy. Principis works with business owners with all types of credit profiles. We tailor our programs to fit the merchant. More than half of Principis’ clients have credit scores of under 600 due to a variety of factors.
What if I have a house in foreclosure?
No problem — you will still be able to obtain funds from Principis!
Does the merchant advance show up on my credit report?
No. Principis does not report to the credit bureaus, and therefore the advance will not show up anywhere in your personal credit.
What if I have a civil judgment on my credit report?
A civil judgment usually does not present problems for obtaining a merchant advance from Principis. Depending on the situation, we may ask you to provide details and status of the judgment.
If I don’t have a FICO score, can I still get an advance?
Typically, we require that the business owner have a FICO score. If there are multiple owners, and one does not have a FICO, we will still go ahead with the merchant advance.
What if I have delinquent tradelines on my credit report?
No problem. We know that small business owners have a lot going on in their lives, and sometimes payments are missed or delayed. We look at the overall picture, and in virtually all cases we can still provide a merchant advance to your business.
Do I have to provide tax returns?
Generally not. We may request the tax return on certain situations, but that is rare.
What if I am behind on payments to my suppliers?
Principis looks at the overall health of your business. If you are behind on certain payments, you will be able to use the funds we provide to catch up.
Is it ok if I have overdrafting in the business bank account?
Yes, small to moderate amounts of overdrafting will not affect your chances of obtaining a merchant advance from us.
Do you require a minimum balance in the business bank account?
No. Principis does not require a minimum balance in your bank account.
How will tax liens affect my approval?
Usually, tax liens will not affect your approval as long as you show proof that you have put in a payment plan to take care of them.
What if I already have a bank loan?
No problem. Many of our merchants have long-term bank loans, and need our funds only to address short-term liquidity needs.