Coastal Capital offers businesses with credit issues alternative business finance options. With 20 years of specializing in the bad credit lease and loan markets, we know how to deal with virtually any situation and formulate a solution to provide you with the business capital you need.
We invite you to call us for a no charge evaluation of your credit and finance needs by one of our certified business finance consultants.
The Facts about Bad Credit Business Finance Options
There is no magic bullet that makes your credit look good if it is not. Don’t be lured into promises that anyone has any strings to pull or a special way to get you financing that you know you can’t get. And DO NOT give anyone money upfront without clearly detailed terms of your financing. A commitment deposit or documentation fee upon approval of a credit transaction is fine, but you should never have to pay just to have your application processed.
Why Can we offer the money to you when no one else can?
All banks, lending institutions and brokers have specific programs available to them. Either you fit in their mold or you don’t. Coastal Capital Group maintains strategic alliances with national lenders, as well as our own direct lending sister company, structured to fit any request we receive. If your business is capable of paying back the debt incurred, we can match you with a program. We identify the attributes of your business and navigate the various methods of securing capital to provide the funds you need.
We consider many factors to formulate a solution for your business including:
- Type of Business
- Your Use of Funds
- Personal Credit Profile
- Business Credit Profile
- Business Cash Flows
- Collateral Availability
- Accounts Receivable On Hand
- Future Sales Assumptions
Bad Credit Equipment Leasing
The credit markets have been in turmoil since early 2008. Lenders have raised their minimum credit scores and require considerable documentation to consider extending credit. At the same time the economic downturn has negatively affected the credit of many businesses and often has spilled over into the business owners’ personal credit profile. The combination significantly hinders a business’ ability to purchase new equipment they need to operate. Many businesses are being turned down for financing equipment. Repeating the same failed method to get the funds you need will only have the same result: failure.
Coastal Capital analyzes the business situation and navigates you in the direction that can provide the capital you need. If the credit score is the problem, we simply use a method that does not rely on credit scores. While people are most familiar with credit based lending, there are alternatives that will serve your purposes that do not take credit scores into consideration.
Sale And Leaseback
Coastal Capital Group can provide working capital for your business using the equity in the equipment you own.
Leasebacks have several common uses, including:
- Businesses with credit issues, or poor financials from a traditional banking viewpoint can still get the working capital they need by leveraging their owned assets
- Secure capital without using your bank lines.
- Take debt “off balance sheet”
- Strategic tax planning purposes
Technically, we buy the equipment from you and lease it back to you until all payments are made, at which time you own it again free and clear.
It is a paper transaction. We don’t actually take possession of the equipment.
- Trucks and Other Vehicles
- Construction Equipment
- Farm Equipment
- CNC machines
- Items worth less than $10k
- Computers and high obsolescent equipment
- Restaurant Equipment-Very low wholesale values
- Highly specialized equipment- items that wouldn’t have a readily available liquidation value
Simply complete a standard 1 page Equipment Lease Application and submit with the details on the equipment you intend to leaseback.
Asset Based Lending
Many businesses have equity built up in their existing equipment that they are not utilizing. The equipment you paid off over the past years can be leveraged to secure the funds you need for new equipment purchases. If you need to address the issue of bad credit equipment leasing, businesses can use some owned assets as additional collateral to secure a difficult finance request. It’s very simple: we offset risk with collateral. For bad credit business finance that may or may not be associated with an equipment purchase, you can use a Sale Leaseback to cash in the equity in your equipment and use the funds for any purpose you choose. We purchase your equipment for cash and lease it back to you. When the debt is paid, you own it again.
Cash Flow Based Lending
If a business has sufficient cash flow to pay back a loan, we can identify that and use it as a basis to structure a lending solution. Credit scores have no consideration in Cash Flow Based Lending. We would typically look at the bank statements for the past few months. If there is sufficient revenue to cover current expenses and the new debt, you qualify. You can get approved for bad credit equipment leasing because your credit is not what we’re looking for.
Business Credit Only Lending
While the vast majority of small businesses need to have a personal guaranty from the principles for the extension of credit, there are circumstances when the business may have good credit but the principle has had negative activity in their personal credit. While many business owners try to get credit in the company name alone in an attempt to circumvent their credit problems, very few qualify for “Corp Only” financing. Divorce, other business interests, health issues and other factors can damage the owner’s credit but not affect the business that needs the capital. If the business is well established, 5 years old or more, and has very strong financials, it may be possible to extend credit based on the business credit only. The principle will still sign, but the credit decision is not based on his or her credit score.
Alternative Business Finance Options
Other programs that can provide cash that can be used as an alternative for bad credit equipment leasing to purchase the equipment you need, or for bad credit business finance for working capital or cash for whatever you choose.
Accounts Receivable Financing
Very often businesses don’t realize they have a hidden asset they can use to secure capital. Your Accounts Receivables have value. If you need cash and you have money owed to you, we can purchase your receivables and give you the funds you need to meet your needs. You can sell all or part of your receivables. You can sell them one time or systematically assign new receivables on a regular basis. Accounts Receivable Financing, or Factoring as it is commonly referred to, is not based on your credit, but on the credit of your customers. The Factoring agent not only buys your accounts, but assumes the responsibility of collections. And if the account never pays, it does not affect you. You have no personal liability on the account.
Merchant Cash Advance
Another very useful source of capital is future assumable sales based on credit card processing. If you take credit cards, we can advance a portion of your future sales up front. You can draw 80-120% of your average monthly credit card transactions. We are assuming that if you have been accepting $50,000 per month for the last 6 months, you will for the next 6. The debt is paid back directly as a small percentage of your future credit card sales. If you have a slow month, your payment is less accordingly, and if business is strong, you pay back faster. The entire amount is typically paid in full in 6-12 months and you are able to re-draw more funds if you want any time after you’ve paid back just half of the initial advance.
While these are brief descriptions of the main finance avenues we explore for all of our clients, we offer many more bad credit business finance options. We can also develop hybrid structures of a combination of finance methods to meet your needs. At Coastal Capital Group, we have the experience and expertise in business finance to formulate a solution for your small business finance needs.
Please contact us today for a free, no obligation analysis of your financing needs. (877) 703-3090. Operators are standing by 24/7
Coastal Capital Group Is a member of the National Association of Equipment Lease Brokers and adheres strictly to their code of ethics.