Business Financing & Merchant Cash Advance for Retail Store Owner with Bad Credit

Bad credit can be ok and acceptable to get a business funding for your retail store business. The internet is booming in various sectors and this has given a different meaning to business. The scope that the retail business has is huge thanks to the number of stores that you see coming up each day and the also the number of e-commerce stores increasing each day.

Retail businesses used to target only certain products before but that is not the case now. The number of retail businesses is expanding because of many entrepreneurs, mostly young, who are providing various tailor-made solutions and products. Retail business has reached various sectors like home furnishing, clothing, accessories, hardware store and electronics to name a few.

There is a need to get funds and the requirements of this industry are also very different. There would be times when you would be in immediate need of working capital and then you would have to look for some borrowing solutions.

What is bad credit?

Credit is a way that measures your company’s history of repaying off debts. Those small businesses that have a low credit score are seen as bad or poor credit business.This means that you have failed to repay off your debts in the past.If you thus apply for loans through traditional methods like banks or institutional lenders then there are high chances that your loan will not be approved because of your bad credit.

Small business financing for retail owners

There are a number of commercial loans but they do not help the small business owners to get the funding in time.This is because of the strict bank loan and other terms and conditions. Also, the repayment method is very strict and gives no flexibility.The banks would want collateral and will also check your credit history. In such a situation you should thus look for alternative funding solutions.The popular bank loan alternatives are to go for a merchant cash advance or MCA. This works very well for the retail store owners.

MCA(Merchant cash advance)

The MCA is where you get a cash advance for your business in exchange for the future sales that your business will do. This is not a loan but an alternative way to fund your business. This is a short-term scheme and works well for new and for small business funding. The process is hassle-free and easy and you get the working capital without any trouble.

The small business, as well as start-ups, are looked upon as high risk by banks. This thus makes MCA very suitable for such companies. The merchant cash advance providers want no collateral and bad credit is also acceptable. If the merchant has a high NSF (not sufficient funds) even then they can get a cash advance.

The scheme is great if you have good sales through your credit or debit card. You get the finding required and the company lending you buy a percentage of the future sales which is on a percentage basis that is agreed on upfront. The terms and the conditions are agreed upon in advance.

This has a very crucial advantage which is that you can now concentrate on improving your cash flow and expanding your business. You are free for thinking about interest rates and monthly fixed pay-outs.The repayment plan is such that our business does not get affected. This is a great flexibility that is given by the merchant cash advance which helps you grow your business.

You are not bound to use the cash advance for a particular purpose but for anything that you wish to use the fund for. Whether it is to procure new equipment or to purchase inventory, you can use the money for anything. You can use it to recruit new staff or to do any renovation or repair.

Sometimes the fund can be used to clear off your old debts. After the 1st position lending, you can go for 2nd position, 3rd position and 4th and 5th position as well to fund your business.

Services that the MCA provider would offer

The MCA provider would be giving funding to the high-risk merchants and for their small or new business. You can spend them on your business funding needs.

The services that the provider will give you are:

  • Faster approval

  • Easy processing

  • No collateral

  • Bad credit OK

  • Flexible terms and conditions and easy payback options’

  • For qualifying small business., 1st, 2nd, 3rd, 4th and 5th funding is provided

You need quick and simple funding solutions for your business and you thus look for solutions to get loans. You may opt for a long-term or a short-term funding depending on what the needs of your business are. A bad credit does not stop you from applying for funding and there are high chances that you would get the approval too. You can expand your business with the funds or use it to provide tailor-made services and products to your clients.


If you want to access the working capital and have bad credit then it could get very difficult for you to get funds. If you are a small or a start-up business then looking to get funds from the bank may not give you a lot of success. But if you do not have these traditional funding options then you could opt for some alternative solutions like merchant cash advance. This may not be the cheapest way to finance your business, but it is definitely easy to get approval and also easy to apply for.

This is a unique way to finance your business but it is not a loan. You just sell a portion of your business to get funding from the company. They use a factor rate though to calculate the repayment amount.

A bad credit score can make it difficult to let a conventional loan. No bank or lender would provide loans to a business that has defaulted in the past. The merchant cash advance is thus a smart way to get funding for your business in such cases.

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