So you’ve applied to your bank for a business loan and gotten turned down? Join the line up of numerous other Canadian business owners who have faced the same fate. As we pointed out in our last blog, there are many reasons that business owners get their business loan applications denied. Among them are poor credit scores, bad business performances and a lack of collateral.
So what steps should be taken following a rejection?
The first step might just be to address those above three issues. Building up your credit score is definitely a step in the right direction. The importance of proving that you can pay your debts should not be understated. As far as lenders are concerned, a strong credit score is generally at the top of the list of must-haves for entrepreneurs trying to secure funding.
“Although it might take some time, taking steps to build or improve your credit will help you meet lenders’ minimum credit score requirements,” write Jerry Brown and Jordan Tarver on Forbes.com, “To do so, repay any current debts you may have on time, keep your credit utilization rate below 30% and remove any inaccurate information from your credit report.”
Are other sources of business funding available?
Of course there are! At Synergy Merchants, we pride ourselves on being able to offer Canadian business owners a great alternative source of business funding. Our unique merchant cash advance program enables all types of entrepreneurs to get their hands on much-needed extra cash. Regardless of your credit history or length of time in business, you can be approved in less than 24 hours!
Merchant cash advances are not loans. They are payments for future credit card and debit card sales. Business owners are advanced money on sales they are projected to make. Because advances are not loans, no interest accrues on the outstanding balances. Instead, a one-time fee is charged for accepting the advance. The best part about the program is that the advance is paid back through a percentage of future credit card and debit card sales.
How easy is it to get approved for a merchant cash advance?
Well, firstly, let us remind you that credit scores don’t matter. Again, no one borrows money when they get an advance. As well, no collateral is needed. The only thing necessary is for the business to accept credit cards and debit cards. An advance amount is determined by the monthly average of sales a business generates via credit and debit sales. As mentioned, no interest accrues on the outstanding balance because it isn’t a loan.
Because the advance is paid back through sales, there is no payment schedule. When sales are high, payments are quicker. When sales are slow, payments slow down too. There is no such thing as being late, so no late fees apply either. Our clients have found our program to be a much more suitable funding solution than the traditional business loan.
For more information about our program, please don’t hesitate to call Synergy Merchants at 1-877-718-2026 or email us at email@example.com. You can also apply online for a free, no obligation quote!