Financing Alternatives For Non-Bankable Businesses

The situation is all too familiar. An emerging business owner has a great idea with a potential customer base willing to give them lots of sales, and all they need is starting capital. The business owner goes to the bank and jumps through all of the necessary hoops, only to be told at the end of it all that their dream is “non-bankable.” After a string of rejections, entrepreneurs tend to give up on their dreams. Fortunately, there are a number of affordable financing alternatives for non-bankable businesses.

What It Means To Be Non-Bankable

A non-bankable business is not the same as having a bad business idea. Non-bankable simply means the collateral, profits, and projections are not present to meet the high requirements set by banks to access loans. Some people will put their own savings on the line to get a non-bankable business up and running. This is a bad idea, because there are many financing alternative available for non-bankable businesses. One should never jeopardize personal finances to launch a business venture.

Merchant Cash Advances

Merchant cash advances are some of the most flexible and versatile financing solutions for non-bankable businesses. Merchant cash advances are, as the term implies, an advance in working capital, which can be used for everything from positioning your business for growth to paying down existing financial obligations. Merchant cash advances do not place any debt on the balance sheets, nor do they railroad business owners into monthly payment schedules regardless of sales. Instead, merchant cash advances are repaid from a percentage of customer credit card transactions. This gives business owners the flexibility they need, especially during light sales periods.

Accounts Receivable Financing

Sometimes the best financing solution does not come in the form of a loan from the outside. Non-bankable businesses can get access to working capital from within, through accounts receivable financing. One of the biggest strains on business finances is the lag created from open customer invoices. Accounts receivable financing allows business owners to monetize invoices with aging periods of 30 days or more, and convert them to working capital within 24 hours. Accounts receivable financing is another zero debt solution, and can be a great fit for non-bankable businesses that want to get out from under cash flow issues.

Non-Bankable Businesses Use Biz Com Loans

If you are tired of getting caught in the red tape and receiving rejection notices from traditional lending channels, Biz Com Loans can help. We provide a wide array of debt-free solutions to get businesses the financing they need, without compromising their credit ratings. Contact our offices today to learn more.

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