Do You Need to Build Business Credit?
The business credit your company commands is just as important to its image as its name. Though your brand may be well-known and respected locally or nationally, the financial background of your company could undermine all of its credibility. If you’re a small business owner and you have bad credit history, you may find many doors closed to you. In particular, banks often refuse to lend to business with bad credit or without collateral. But sometimes there is simply no way to build business credit, especially when money is tight. So what can you do? Unsecured business lines of credit allow for your business to receive financing without the need for collateral such as real estate, inventory, or office equipment. This has advantages but typically means higher interest rates.
How We Can Help
That’s why another option for financing is a merchant cash advance. Principis Capital will give you money based on the amount you process in credit cards each month, and you repay the advance as a percentage of the dollar amount you process on cards each month. It’s a great option because it is not a loan and therefore will not damage your business credit. Principis Capital’s merchant cash advances do not have a fixed pay-off date, or fixed monthly payments. Principis Capital recognizes that the cash flow to a small business can vary widely from month-to-month. Therefore, the monthly payment will increase a bit in those months when sales have been brisk; and will be reduced in those slower months.