Business Cash Advance Blog
| Business Loans and Personal Credit | 27-Aug-09 |
Due to the incline in default rates associated with business loans, at least one lender, and many others most likely to follow, are positioning to include small business loans in consumer credit files of borrowers. This means small business owners could soon find that their business debts are impacting their personal credit. Debts that owners personally guarantee, including many business loans and credit cards, could be reported. Again, this is just another reason of many that supports the benefits of a merchant cash advance. What’s the point of securing a loan when you have to rush to pay it back quicker than planned to avoid having your personal credit affected? Business financing in the form of a merchant cash advance does not require the traditional guarantees, liens or collateral associated with bank loans. Small businesses can take their time to repay since repayment is made via automatic debits of future credit card transactions. Payback is less during slow months. |
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