“It takes money to make money” is an old adage that still rings true today. As a business owner, you need working capital to fund a startup or to expand your current operations. If you have bad credit, acquiring funding from a commercial lender is often difficult. This is why many entrepreneurs turn to alternative financing companies. These lenders offer additional methods for securing loans.
Alternative Lending Solutions
Alternative lenders have a simpler loan approval process compared to traditional banking institutions. Typically, small-to-medium businesses, in particular, can qualify for collateral loans with little credit, no credit, or poor credit. These lenders rely on other factors to determine loan qualification, such as recent bankruptcies, time in business, and annual revenue. These companies offer funding vehicles, such as:
- Invoice financing – the lender buys unsold invoices and keeps them until they are paid.
- Equipment loans – the borrower uses their equipment as collateral to secure financing.
- Merchant cash advances – borrowers receive a lump sum of money from the lender in exchange for a percentage of future sales.
Alternative lending is an ideal solution if your credit worthiness prevents you from obtaining a traditional loan. While the above funding options are common, there’s another financing method that makes acquiring small business loans fast and easy.
Luxury Asset Financing
In business, you must be able to pivot at a moment’s notice. Often this requires immediate access to cash. With banks, the loan approval process can take weeks to complete. This isn’t the case with luxury asset financing. Everything is handled online, and you can receive money within one business day. The other benefits include:
- No application
- No administrative fees
- No credit checks
- No waiting period
- Minimal paperwork
You obtain financing by exchanging your luxury items for immediate funding. The lender either buys or holds your assets until the loan is repaid. The items accepted for this type of transaction include fine jewelry, cars, artwork, luxury watches, and more. Loan amounts range from $25,000 up to five million dollars or more.
Exchanging luxury assets for capital is among the fastest-growing online lending methods. It appeals to small businesses because it’s fast, private and convenient. This is how to get a business loan with bad credit.
Get an Infusion of Capital Now
Don’t allow poor credit to rob you of your success – contact the Lux Exchange today. We are one of the leading companies in the luxury asset financing market. We can get you started right now with the process of achieving your business aspirations and dreams.