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Quick Access To Business Financing

3. July 2016

Is there such a thing as quick access to business financing? The answer is yes, but the forms of quick business financing are vastly different.

The first utilizes the personal credit of any business owner and can quickly fund $50,000, $100,000, or even $150,000 per principle of the business. That means if the business has three owners than three fundings could take place and the business could raise as mush as $450,000. This type of funding is FICO score credit driven, requires a clean credit history, no public records, and very few recent inquiries. "Credit Partners" can even be brought in to personally guarantee the financing. This type of financing normally funds in 3 to 4 weeks and comes with 0% interest for at least the first 12 months. If you the owners are willing to take the personal risk, then this financing is quick and easy.

The next quick access financing is tied to existing revenue. If the business has consistent revenue, normal credit card receipt volume, or routine monthly Paypal invoice collection, then an amount can be "advanced" against those recurring monthly revenue streams. This type of financing considers only the revenue stream history of the business and not the personal credit of the owners. It can normally be a one for one advance, meaning that if your business has normal monthly revenue of $25,000 then a $25,000 advance can be made. This advance can be funded with days, but there is a catch. The interest rate on these advances is in the 30% range but there is a catch there too. That is 30% paid back in an average of 9 months, whcih makes the APR even higher. If the business can stand the high rate, then this financing too is quick.

These two types of financings fund the fastest and require the lowest documention. The first requires only the personal credit report of the owners and identity verification. The second only requires proof of business ownership and the verification of the revenue stream. 

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