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Owning a business is a dream to most of people. Instead of working under someone, newbie entrepreneurs love work for themselves on their own. To commence a new business, business owners need startup funds. Due to lack of cash their business dreams actually suffer. But in USA, it is easy to establish new venture because of availability of small business loans. Online payday loans Ohio offer startup business funds between $5000 and $2, 50,000.

According to recent statistics, it has been found that over 63% of business owners are trying to arrange working capital through banks but actually 27% are getting approval. What is the reason behind that? May be they don’t have appealing business plan. In fact most of loan applications got rejected because of bad credit issues. Traditional bank loans perform very strict credit check while lending. And, it is extremely difficult for small ventures to qualify for them. But don’t worry if you are one of them. Small business administration has passed special programs for small business loans with bad credit.

Arranging business funds is the most painful hurdle in business growth faced by most of entrepreneurs. By arranging business loans, they can continue their trading operations by hiring new employees, investing in inventory or upgrading marketing. Now, what to do if business is new and credit is the issue in availing entrepreneurship finance. Here are some alternatives to bank business loans:-

1. Bank Deposits- It is always advised by financial advisors that keep your business transactions online instead of in hand cash. Regular bank deposits related to a particular entrepreneurship leads to revenue based payday loans wichita ks. A business is liable to borrow business loan equal to 10% of its annual gross deposits regardless of credit score it holds. This type of funding program takes approximately 7 days processing time. However, loan term can be up to 18 months. Interest rates are higher than traditional bank loans. The borrower is not supposed to pledge any collateral and no tax returns details. Repayment is done via installment procedure.

2. Credit Partner- Access your business partner as a credit partner to obtain business line of credit for your venture. Business credit card is viable solution to arrange finance by overcoming credit issues. Try to find a business partner in the beginning who has strong credit history so that it can be used as a future. You can also look for potential credit partner other than business partner who is interested to invest in your entrepreneurship.

3. Credit Card Sales- It is also known as merchant cash advance or payday loans. It provides upfront cash in exchange of small portion of the future credit sales. It is best financial solution for business with bad credit issues who has regular monthly sales. However, you need to be very careful while selecting merchant. Some can charge you very high almost 38% of your credit sales while lowest portion can be 12%. They charge fix interest on repayment until cash advance is paid back. However repayment can also be done on installment basis as per your comfort.

Not everyone can have perfect credit rating for accessing business payday loans in pa funds. There are many other funding options other than small business loans without indulging yourself into cumbersome paperwork. Just explore and access the business finance alternatives.