Merchant Cash Advance With Bad Credit

Merchant Cash Advance With Bad Credit

Merchant cash advances, or financing based on anticipated future sales of your business, are a good option if your business needs a cash infusion and might not qualify for a traditional loan. A business might not qualify for a more traditional loan or line of credit if the business is new and its credit history is very young. Bad credit, whether owing to the greenness of the business or a history of not making payments or bills on time, among other reasons, may prevent you from qualifying for loans or financing from traditional lenders. The good news is that there are options for you and your business to access capital still, and merchant cash advance lenders are a viable alternative. 

Bad Credit Effects on Merchant Cash Advance Financing 

Clearly, you can open plenty of doors with good credit history and scores and fewer with bad credit. But bad credit does not impede merchant cash advance financing. You can qualify for a merchant cash advance with no or bad credit. So as you know, merchant cash advance interest rates tend to be higher than traditional loans. Depending on your business profile, including the volume of sales and amount in your business accounts, among other factors, your interest rates on a merchant cash advance can be quite high. 

How to Get a Merchant Cash Advance with Bad Credit? 

Merchant cash advance lenders will look at several factors when considering your business for a cash advance. You’ll be relieved to know that there are merchant cash advance lenders that do not conduct credit checks if you are a business with a low or bad credit score. When you pursue a merchant cash advance, rather than your credit history or score, merchant cash advance lenders will look at factors like credit card sales, bank account balances, and projected future income. Remember, a merchant cash advance is a loan against your anticipated future sales. Hence, the lender is less concerned with how you may have performed in the past and more with how you are doing now and the potential for how your business will do moving forward. Once you’ve done your research, including examining which merchant cash advance lenders say they offer to finance businesses with bad credit, you can apply for the advance that feels most right for you. The lender will then review your materials, including your most recent bank statements, credit card sales, and any business plans and patterns that would indicate the future state of your business. From there, they will determine your eligibility, including whether or not you qualify for a merchant cash advance and, if you do, what amount you are approved for over what period and at what rate. 

Merchant Cash Advance Loans Options for Bad Credit 

There are a few options for merchant cash advances for businesses with bad credit. Here are some of the best choices: 

  • Shield funding: While a credit check is required, the minimum score is quite low, at 500, and they allow negative bank days where your balance is below zero. To qualify, your monthly cash receipts must be $8,000 or more, and rates tend to be higher, between 24% and 49%, with the term between two and 24 months. 
  • CAN Capital: This lender requires no credit check and lens to businesses with bad credit. They lend up to $250,000 with factor rates starting at 1.15 up to 1.48. Of note, CAN charges a fee of $595 on top of the interest rates. 
  • National Funding: Offers quick access to funds in less than 24 hours in most cases and requires that you’ve been in business for one year and that your monthly credit card transactions total $3,000 or more. Rates start at 1.17 up to 1.36, and you need to supply just the last few months of credit card statements to qualify. 
  • Reliant Funding: Another good option for businesses with bad credit, Reliant does not do a credit check. The requirements include being in business for six months and delivering the funds in as little as 24 hours after the applications get approved, which can take a few minutes to hours.

Check your small business financing options for a merchant cash advance with bad credit!

Are interest rates high for merchant cash advances if you have a bad credit?

They can be. That said, interest rates on merchant cash advances are going to vary based on several factors, including your eligibility and the terms of the lender.


Which is the best cash advance option for bad credit?

It depends. There are a few merchant cash advance companies that offer to finance with bad credit and do not do credit checks. Check out tools like to compare your options and select the one that’s right for you and your business.


Does bad credit affect seeking a merchant cash advance?

No. Bad credit does not have to impact your eligibility for a merchant cash advance, as lenders are looking at cash receipts and sales as opposed to your credit history. 


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