Business owners with bad credit find it difficult to acquire traditional small business loans.
This is one of the primary reasons why revenue based loans have become popular in the last decade. After the Great Recession of 2007, revenue based loan programs started to become more prevalent in the small business world. During this time, many small business owners saw their sales decrease and their personal credit scores plummet.
While revenue based loans can be a viable financing option for small business owners who can’t qualify for a bank loan, it is not for everyone. It’s wise to know and understand everything there is to know about revenue based loans before applying.