If you’re wondering whether or not you can get an unsecured business loan for your small business startup in New York, the answer is maybe. It all depends on what stage of growth your business in and if you meet other criteria most lenders require. There are different types of unsecured business loans available to small business startups in New York. The most commonly known unsecured business loan is a merchant cash advance.
What is a Merchant Cash Advance?
A merchant cash advance is an advance on your monthly credit card sales. Getting approved for a merchant cash advance requires that you have an existing business that is generating a certain amount of credit card sales or bank deposits every month. (If you don’t have a merchant account and you are paid by ACH or check, merchant cash advance lenders may offer you want is called a bank statement or cash flow loan). These types of financing are considered unsecured business loans because they do not require you to pledge collateral to be approved. Approval for an unsecured business loan of this type is dependent primarily on the amount of revenue your business brings in monthly and on a smaller scale, your personal credit history.
Is a Merchant Cash Advance Right for My Small Business Startup?
As a small business financing expert, I typically only recommend merchant cash advances (or bank statement/cash flow loans) to small business startups that have a consistent amount of daily credit cards sales or deposits. This type of unsecured business loan has a high interest rate. Much higher than other types of unsecured business loans. It must also be paid back daily or weekly. Your small business startup will need to be at least 1 year old and generating revenue for at least 6 months to qualify for this type of unsecured business loan. I don’t recommend this to small business startups that don’t have consistent revenue or daily deposits because of the high interest rate and daily or weekly payback schedule.
Get an Unsecured Business Loan for Your Small Business Startup Now
The experts at LenCred can help you determine whether or not an unsecured business loan of this type is a good fit for your small business startup. If you are interested in learning more about how you can get a merchant cash advance (or bank statement/cash flow loan) for your small business startup, contact a LenCred advisor to get started.