The Best Bad Credit Business Loans of 2020 - Fortunly News

The Best Bad Credit Business Loans of 2020 - Fortunly News


The Best Bad Credit Business Loans of 2020 - Fortunly News

Posted: 25 Aug 2020 08:38 AM PDT

Overview

Launched in 2014, Currency is a Los Angeles-based fintech company that helps prospective borrowers find the right third-party equipment loans and leases. Currency's platform is organized as a marketplace of funding providers, each one with different lending specializations and eligibility requirements. Thanks to its long list of lending affiliates, Currency is able to offer loan options for prospective borrowers of all credit profiles, even business loans for people with bad credit.

Funding Types Offered

Currency specializes in equipment financing, a financial product encompassing loans and leases used to either purchase or rent equipment.

Here's how to get bad credit equipment financing via Currency. The application process is quick and easy, and you won't need to wait for more than a few minutes to a business day for an offer. First of all, you'll need to submit some basic information such as the type of your business, your desired borrowing amount, time in business, annual sales, and your company's latest three bank statements. To qualify for Currency's online loans for bad credit, you'll need a personal score of 585, a minimum of six months of business activity, and annual revenue of at least $75,000.

As a part of the underwriting process, Currency will perform a soft credit inquiry to evaluate your personal creditworthiness. The company will then compare your profile with a set of its own criteria and the external lenders' requirements, which will narrow down the list of funding providers willing to offer bad credit business loans to you. From there, Currency will choose one lender offering the product with the best rates and terms and present it to you.

Depending on your creditworthiness and the funding provider's policies, you'll be able to get a loan amount ranging between $5,000 and $500,000, with a repayment term of 24, 36, 48, 60, or 72 months and an estimated APR of 6% to 24%.

Should you decide to accept the offer on a loan for bad credit, note that you'll be allowed to use the funds to purchase equipment anywhere in the United States and from a few select dealerships in Canada.

Reasons to Choose Currency

Two-thirds of all funding requests sent to Currency get approval within minutes, while the rest is processed in one business day. The lending platform works fast and even if you don't qualify for funding, you won't be left waiting for an answer for too long. The whole process from the application to funding typically takes up to 72 hours.

When you apply for a business loan with bad credit, you expect the lender to charge you an extremely high APR. However, that's not the case with Currency. With an average APR of 8% and a median APR of 15%, this lending platform's annual percentage rates are quite competitive.

Another great thing about Currency is that the company helps you verify that the equipment you're purchasing is as advertised. The due diligence process typically takes about 24 hours. If everything checks out, the lender works on payment terms with the vendor and ultimately transfers the money.

Reasons to Explore Other Options

Currency encompasses the criteria of various lending partners; however, the platform itself also has minimum requirements and offers very few options for poor credit loans. Note that you'll have to prove that you've rebuilt your credit score if you've been in business or personal bankruptcy before.

Prepayment penalties and possible additional fees represent another drawback of working with this lending marketplace. Each one of Currency's partners has different prepayment policies, and while most don't charge their clients for repaying the loan early, some have prepayment penalties. The same thing applies to origination fees – about 5% of loans provided by Currency's lenders come with this additional charge. In some cases, there may also be a document fee that depends on the type of the borrower's collateral and ranges between $75 and $575.

Currency's business loans for low credit score require collateral. The company files a lien that covers the equipment that you're financing and the rest of your business assets. Some of the platform's partners may also require a personal guarantee.

Final Thoughts

Currency stands from the competition by introducing a refreshing, tech-first approach to an otherwise very traditional industry. For the most part, this lending marketplace succeeds in streamlining some daunting parts of the process, but the applicants still have to provide bank statements, let the funding provider do a soft pull of their credit report, and read through many pages of fine print. On the plus side, rates are pretty decent, and the long list of possible lenders increases your chances of getting a small business loan with bad credit.

Highlights

High borrowing amounts

Convenient application procedure

Long-term funding options available

Best Business Credit Cards For Startups and New Businesses Of 2020 - Forbes

Posted: 05 Jun 2020 12:00 AM PDT

The American Express® Business Gold Card offers a unique and tailored approach for businesses to generate 4 points per dollar automatically on the expense categories that they spend the most during each billing cycle. As time goes by, expenses can evolve throughout the stages of the business and the American Express® Business Gold Card will automatically reward the two top categories with a lucrative 4 points per dollar.

Membership Rewards® points are valuable and well-regarded and offer exceptional value when booking travel by transferring to airline and hotel transferred partners.

Rewards: Earn 4 Membership Rewards® points per dollar spent on the two categories that the business had the most spend each billing cycle. The categories include: airfare purchased directly from airlines, U.S. advertising purchases in select media (online, TV, radio), purchases made directly from select U.S. technology providers of computer hardware, software, and cloud solutions, U.S. gas stations, purchases at restaurants worldwide, and shipping.

Earning 4 points per dollar applies to the first $150,000 in combined two category-purchases each calendar year, then earn 1 point per dollar thereafter. A cardmember that takes maximum advantage of the 4 points per dollar rewards-earning potential would generate an impressive 600,000 points on combined purchases on those categories alone, which is worth $6,000 at minimum.

Welcome Offer: Earn 35,000 Membership Rewards® points after you spend $5,000 on eligible purchases with the Business Gold Card within the first 3 months of Card Membership. Due to the impact of COVID-19, eligible card accounts that offer a welcome offer that was approved from December 1, 2019, through May 31, 2020, will receive an extension of an additional 3 months to complete the minimum spending requirement.

Annual Fee: $295 (see rates and fees)

Benefits and Drawbacks: Cardmembers can redeem points to book flights through American Express Travel using Membership Rewards® Pay with Points and get 25% of those points back (up to 250,000 points back in a calendar year). Points can also be transferred to American Express' airline and hotel transfer partners.

However, the $295 annual fee is high compared to other business credit cards, and the 4 points per dollar two-category spend is capped at $150,000 annually. Since this is a charge card, it does not offer the opportunity to carry a balance.

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