Bad credit business loans are usually offered by financial institutions in varying loan amounts that depend on the kind of business as well as the actual and projected gross sales. Most companies offering bad credit business loan would normally require the borrower the business gross sales record and the projected gross sales. This would determine the amount of loan to be approved by the company.
Requirements would also include recent records of the borrower’s credit card and bank account as supporting documents to determine the loan able amount for bad credit business loan.
Usually, companies approve about 4 percent to 8 percent of the business’ gross sales as this is the standard used by most companies. But the loan amount could increase from the initial loan if the business showed increased sales or performed better than the previous standing.
The filing of loan could be done online and would usually take about 5 to 7 working days for processing. The processing period is so short to specially cater the immediate need of borrowers having bad credit history.
Once the loan is approved, the money transfer would also be done online from the lending company direct to the business account of the borrower. Called a wire transfer, the system is so fast that it would only take the borrower 2 to 3 days waiting for the money to be transferred to the target account. However, for those who are not comfortable with online transfer may opt for the mailing system of the traditional check.
Credit companies offering bad credit business loans usually processed an ACH debit channeled through the borrower’s business checking account. This facility would serve as the borrowers guide as to when and how much is expected by the lender from the borrowing company. This way, the borrower would be able to set necessary budget for to pay back the lending company.