As many entrepreneurs can attest, having bad or insufficient credit history can really put a damper on your business plans. But while bank loans may be out of the question, you have other options, like revenue-based loans. Keep reading to learn more.
What Are Revenue-Based Loans?
Revenue-based loans differ from traditional loans in some significant ways.
First and foremost, your typical bank loan places a great deal of importance on your credit history, which is seen as an indicator of your ability to repay the loan.
Lenders that offer revenue-based loans, on the other hand, linger less on your financial track record to focus instead on your ability to generate revenue.
The reason is that, as the name suggests, you repay a revenue-based loan with a share of your future revenue.
This is a simple idea with ground-breaking benefits for your business.
Are Revenue-Based Loans a Good Option if You Have Bad Credit?
With this background in mind, it’s easy to see why revenue-based loans are a great financing solution for companies that have bad credit history, or are new to credit.
A revenue-based loan makes sense if:
- You can’t qualify for traditional loans.
- Your business is already generating revenue.
- You need a financing option that is faster to get than a traditional loan.
- You want to scale your repayments based on the performance of your business.
Choosing a revenue-based loan comes with many benefits that make sense for most business. For example the more money your business makes, the larger the amount you repay and the faster you pay off your loan.
Another advantage is that the agreement for a revenue-based loan is based on a percentage of your revenue, not on a predetermined amount you have to meet come rain or shine.
This means that you don’t have to stress if your business goes through a couple of slow months or experiences a seasonal drop in demand.
Gellyfish Commercial: Certainty of Execution in Revenue-Based Loans
If you need a revenue-based loan in California, or anywhere in the United States, Gellyfish Commercial can help.
Contact us today by email (firstname.lastname@example.org), telephone (877-800-4493), or social media (Facebook, Twitter, LinkedIn), to schedule a free consultation or to learn more about our financing solutions.