As the economy remains uncertain, many people are leaving their corporate jobs to start their own businesses. Corporate layoffs and downsizing have caused many people to decide to count on themselves instead of others for income. Women are particularly moving in this direction, as there has never been a better time for them to seek entrepreneurship, especially since they are still underpaid compared with men in the corporate world. But in order to build an independent company from the ground up with working capital, you may need help from a lender.
Conventional institutions tend to only want to deal with business people who have established credit or can show two years of self-employment profits from tax returns. However, small business loans for women with bad credit are still possible and available. You will need to keep careful track of your income and be able to present an impressive business plan that points to long term profit. A cash infusion can help you hire employees and pay for necessary equipment.
Even if your FICO score is as low as the 400s and you’ve filed bankruptcy, it’s still possible to qualify for small business financing. You can get this type of advance if your business generates $4,000 per month in transactions from credit or debit cards.
It’s not really a loan. It’s more of an innovative type of funding in which you sell an underwriter part of your future sales from credit card transactions. You then repay the advance with a small percentage of your credit card batches.
Innovative Alternative Funding
In order to be eligible for a merchant cash advance, your business should be at least a year old and you need at least a six month history of processing major credit cards. The business must also be operated outside of your home. If you qualify you can get a cash advance anywhere from $4,000 to $150,000. If you don’t qualify for this advance, there are still other types of small business loans for women with bad credit.
Principis Capital offers alternatives, especially designed for small businesses. They will assess your business history, your product, business location, your revenue streams and other factors. Many of their merchants have low FICO scores. It’s a helpful stress-free solution if you’ve already been turned down by a bank. It’s possible to get a cash advance within a week without fixed payments or application fees.
There are multiple programs to apply for regardless of your credit history. If you have been running a stable business for two years it’s possible to quality for the Platinum Program and pay competitive interest rates. If your business is financially risky or volatile you may be better suited for the Fresh Start Program. Either way, there are no hidden fees with Principis Capital.
Organizing Your Finances
The first order of business is to organize your finances so that you have solid accounting and you are not over-spending. Keep all documentation of your business transactions and expenses. The best way to organize your finances is with accounting software such as Quicken or Mint, which will do much of the mathematical work for you. The software will also help you develop a budget and avoid unnecessary spending.
Make sure you prioritize your purchases so that the most essential components of your business are paid for first. Then try to build savings for future emergencies and desired purchases. Finally, stay on top of your taxes. Following these simple steps will put your business in a position to be approved of small business loans for women with bad credit.