Risky business capital..
Risky business capital deals are infact being distributed 5 days a week to various companies in all 50 states. A business may be considered high risk for a vareity of reasons like pre- exisiting debt, low credit, or poor cash flow. Sometimes business owners have trouble making payments on previous advances, which then also makes any future deals, high-risk. Money is the lifeline to any business, and investing is the only way to grow. A majority of business owners may not have the luxury to walk into their local bank, and get a loan. This is where the MCA industry thrives, private investors allocating capital in risky situations. Terms may be shorter, and rates will be higher, but only you know what’s good for your company.
Why take a high risk deal?
If you can turn $100,000.00 into $200,000.00 in a short period of time, then it’s a good deal! If opportunity is available, a high risk business deal may be your company’s ticket to the next level. Money is a sensative topic. It’s the currency to our well being, for business especially. Sometimes when the “seas” get rough, you’re going to need capital to make it to the next week or even day! In the best case scenario a business owner will take a “high- risk” deal which may be an 8 month term or less, and they’ll use it for a quick flip on an opportunity. In other cases, a business may have to meet payroll or finish a job where if they don’t get funding they’ll simply go under. Another benefit of high risk capital is that it serves high revenue companies, funding out to millions, unsecured, to qualify borrowers. High risk business funding may also take only a few hours to fund, with minimal paperwork.
Does a company stay high risk forever?
A company doesn’t necassarily stay high risk forever. In truth, it’s up to the business owner to manage their credit, business and income. Also, it’s up to the broker to steer the business owner in the right direction. A good broker is a gem to find, and a bad broker can sink your company. Be weary on who you work with and make sure the provider has verifiable information online. In order to not become high risk, you must have minimal or no short term cash advance debts, negative days in your business checking account must be minimal or none, and your FICO should be a 680 or better. In some cases a business owner may be disqualified from unsecured funding if there’s a serious flag on the account.