Finding Arizona business loans when you’ve got rotten credit is a challenge. However, there are options for just about every circumstance if you know where to look.
Generally speaking, small businesses are underserved by traditional lending options. Most haven’t been in operation long enough to have established credit, plus banks look at things like cash flow and profitability. When the company, as an entity, is applying for credit, many don’t get the funds they need or don’t get the amount required. Because of this, company owners often try to get funds in their own name to use for to support the growth and development of their organizations. Unfortunately, lending is still based on the strength of the individual’s credit score and financials, so it’s challenging to find Arizona business loans this way as well.
This in mind, potential borrowers have three primary options: to give up part ownership of their company and bring on an investor, to crowdsource funds, or to locate a collateral-backed loan. Most don’t go with the first option because they don’t want to give up any portion of their company and, during the early stages of growth, a huge stake of the company is usually required. This is the type of deal seen most often on TV shows like Shark Tank.
Crowdsourced funding can also work. Historically, the individuals putting up funds were excited by the thrill of the deal and were happy if it got them a discount on the emerging service or some free products. Nowadays, platforms which offer this are savvier. Even the layman lender is going to want to know details about your credit and plans.
Collateral-Backed Financing Can Help You Be More Successful and Risk Less
With collateral-backed business loans, you’re not risking the survival of your company by giving a portion of the ownership up or inviting a stranger in to make decisions for you. And, you’re not at the mercy of uninformed individuals or sharing your plans with the world hoping to get the cash you need. Instead, you’re using something of value that your company owns to secure the financing you need. Companies which invoice their clients will often use merchant cash advances or invoice factoring to get money in quicker, but if you don’t bill customers or have recurring transactions, then you’ll likely be looking at using larger items of value, such as equipment or property, to secure the funds.
If you can leverage real estate, hard money lending might be right for you.
Many people get Arizona business loans from hard money lenders, especially when they’re borrowing to get property, such as a house to flip, rental units, or even a building that will be used for commercial purposes, such as starting up a retail shop, office, or marijuana grow business. In these cases, the property serves as collateral and details like credit are not really a concern. Some offer as much as 90% of the value of the property, so it’s possible to get started with little money too. If hard money sounds like the right solution for you, connect with a broker to go over details and find the right lender and terms for your needs.
Level 4 Funding LLC
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave | Austin | Texas | 78701
About: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 43 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.
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