Top Online ? Business Loans Pennsylvania for Bad Credit Score and No Collateral
Access to working capital can be challenging for Pennsylvania business owners with poor credit scores or a lack of assets to use as collateral. Traditional banks often deny financing to these types of businesses deemed "high risk." Fortunately, a growing number of online lending platforms provide alternative solutions. This comprehensive guide reviews the top options for Pennsylvania business owners seeking merchant cash advances (MCA) or longer-term business loans despite bad credit.
Best 5 Pennsylvania Online and Fast Approval Merchant Cash Advances
Overview of Online Business Financing Options
Online lending has opened up new opportunities for small business owners who struggle to qualify for bank loans. These alternative platforms connect companies to networks of non-bank lenders who use different criteria for evaluating risk.
There are two main types of financing offered:
Merchant Cash Advance (MCA): With an MCA, the business receives a lump sum cash advance in exchange for a percentage of future credit card sales. The advance amount is typically based on monthly credit card volume. Payback comes from small percentages taken from daily credit card receipts over a defined period, often 4-12 months.
Business Loans: These installment loans feature set repayment periods (usually daily or weekly) over a fixed term, often 6-24 months. Unlike MCAs, the repayment amounts are fixed. Business loans allow access to capital without giving up a percentage of credit card sales.
Online lenders provide more flexible underwriting for companies with poor credit or lacking collateral than traditional banks. Approvals are based more on total business sales and cash flow than strict personal credit scores.
The main benefits these types of financing offer include:
While these loans carry higher costs than bank financing, they can provide short-term relief for capital-constrained companies. Thorough research is recommended to understand full loan terms and choose the best lending partner.
This guide overviews five highly-rated online lending platforms available to Pennsylvania business owners. Each offers MCA and longer-term business loan options suitable for applicants with bad credit.
GreendayOnline
GreendayOnline is an online lending marketplace facilitating financing for businesses that traditional banks often consider too high-risk. It works with a large network of independent business lenders to provide access to both MCA funding and longer-term business loans.
MCA Loans
GreendayOnline offers MCA loans of up to $500,000 for companies seeking quick capital injections. The advance amounts are based on a business's average monthly credit card sales, with funding typically ranging from 50% to 250% of that total.
Here's an example:
Underwriting factors, including time in business, revenues, repayment ability, and personal credit profile, determine the exact amount.
MCA repayments are a fixed percentage of daily credit card sales, generally 5-15%. The overall cost is a factor of the total repayment amount required. Here are sample terms:
So, while GreendayOnline does not disclose APRs for MCA loans, the equivalent can be calculated based on total repayment costs. In this example, the equivalent APR would be around 26%.
In summary, key features of MCA loans through GreendayOnline include:
Business Loans
For longer-term financing needs, GreendayOnline offers business loans up to $500,000 with competitive rates for borrowers with poor credit profiles. Loan terms are customizable from 3 to 36 months, with fixed weekly or monthly payments.
Their advertised APR ranges for borrowers with fair-poor credit are:
GreendayOnline emphasizes quick turnaround times from completed applications to funding. Approval decisions are generally provided within one business day.
Key features include:
For Pennsylvania companies struggling to qualify for bank loans, GreendayOnline provides accessible financing with minimal red tape. They offer the choice between short-term MCA loans or longer installment loans tailored to match projected cash flows.
PaydayChampion
PaydayChampion is an online lending marketplace that focuses on serving small business owners who have faced past credit and financial difficulties. It partners with alternative lenders to provide access to funding for applicants unable to qualify through traditional banks.
PaydayChampion offers MCA and longer-term business loans up to $250,000 for qualified borrowers. Here are more details on their financing options:
MCA Loans
PaydayChampion provides MCA funding up to $250,000 for Pennsylvania companies. Advance amounts average between 50%-150% of monthly credit card volume. Approval decisions emphasize overall business revenues rather than owner personal credit scores.
MCA repayments are a fixed percentage of daily credit card sales, generally between 5%-25%. Here's an example:
Their total repayment equates to an APR of approximately 32% when factoring in the costs.
PaydayChampion emphasizes fast approval decisions, often within one business day, including for poor credit applicants. There are no application, origination, or prepayment fees.
Business Loans
In addition to MCA funding, PaydayChampion offers longer-term business loans up to $250,000. Loan terms range from 3 months up to 2 years, with fixed repayments on a daily, weekly, or monthly schedule.
Their advertised APR ranges for borrowers with fair-poor credit profiles are:
There are no application fees or prepayment penalties. Funding can be approved and received within 2-3 days.
Key benefits include:
For Pennsylvania business owners who have struggled to secure bank financing, PaydayChampion offers a tailored lending experience. They provide accessible funding with minimal red tape and competitive rates even for poor credit applicants.
Rixloans
Rixloans is an online lending marketplace facilitating financing for underserved small businesses across industries. It works exclusively with a large network of independent, alternative business lenders.
While Rixloans themselves do not issue loans, they help connect companies nationwide to potential funding partners who can provide capital to applicants unable to qualify through traditional banks.
MCA Loans
Rixloans offers access to MCA loans through their participating lending partners. Advance amounts average around 125% of the borrower's monthly credit card volume.
Rather than disclosing specific APR ranges, Rixloans emphasizes that rates are determined individually based on underwriting criteria. However, based on customer reviews, MCA rates through their lenders tend to range from 25% % to 49% APR when factoring in total repayment costs.
Funding can often be secured within a few business days of completing the application, which only takes 10-15 minutes to complete online.
Business Loans
In addition to MCA funding, Rixloans facilitates longer-term business loan options through its network of alternative lenders. Loan amounts up to $500,000 may be available for qualified borrowers.
Loan terms range from 3 months to 3 years, with fixed repayments daily, weekly, or monthly. Rixloans states that specific rates are subject to individual underwriting. However, customer reviews suggest APRs for applicants with fair-poor personal credit tend to fall between 9% and 29%.
Rixloans emphasizes fast approvals and funding times, usually within 5 business days. They work to match applicants to potential lenders using minimal paperwork quickly.
In summary, Rixloans provides a streamlined marketplace for Pennsylvania business owners seeking financing from alternative online lenders. They offer access to short-term MCA funding and longer-term installment loans structured around projected cash flows.
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While APRs are variable, their network of lending partners specializes in serving high-risk applicants with tailored solutions. Despite credit challenges, Rixloans offers a convenient platform for connecting companies to business financing.
PaydayDaze
PaydayDaze positions itself as a simple, fast way for small business owners in Pennsylvania to access alternative financing online. They work exclusively with independent lending partners focused on underserved markets.
PaydayDaze facilitates MCA and longer-term business loans through their platform with expedited application processes.
MCA Loans
PaydayDaze offers MCA loans through its network of lending partners. Advance amounts average around 125%-150% of the borrower's monthly credit card sales.
Rather than disclosing specific interest rates, PaydayDaze notes that, based on real customer examples, APR equivalents for MCA loans fall roughly between 25% and 49%. This accounts for total repayment costs over the payback period.
Once approved, funds can be accessed in as fast as 24 hours. The application takes less than 10 minutes to complete online and requires minimal documentation.
Business Loans
In addition to MCAs, PaydayDaze provides access to longer-term business loans up to $500,000 based on a borrower's qualifications. These installment loans feature fixed repayment schedules ranging from 6 months to 2 years.
While specific rates are variable, PaydayDaze indicates that APRs through their lending partners are often between 12% % and 28% for applicants with credit scores below 650. There are no application fees or prepayment penalties.
PaydayDaze emphasizes hassle-free customer experience and funding times under 72 hours in most cases. Applicants receive personalized quotes upfront before completing any paperwork.
PaydayDaze offers Pennsylvania business owners fast access to alternative financing solutions, including MCA and longer-term installment loans. They connect clients to a growing network of lenders serving high-risk applicants.
GadCapital
GadCapital is an online lending platform specializing in alternative business financing solutions for underserved markets. They work exclusively with non-bank, independent lenders who provide access to capital for high-risk startups and companies unable to qualify through traditional banks.
GadCapital offers competitive products, including MCA loans and longer-term business loans tailored to the needs of individual borrowers.
MCA Loans
GadCapital provides access to MCA loans for up to $250,000 for qualified businesses. Advance amounts range from 125% to 250% of the applicant's average monthly credit card sales.
While GadCapital does not disclose specific APR figures, customer reviews suggest that the equivalent rates based on total repayment costs generally fall between 15% and 49%.
The company emphasizes transparent processes with no application fees or hidden costs for their MCA loans. Funding decisions are made quickly, often within one business day of application.
Business Loans
In addition to MCA funding, GadCapital offers business installment loans through its network of alternative lenders. Loan amounts up to $250,000 may be available to eligible borrowers in Pennsylvania.
Loan terms range from 6 months up to 2 years, with the borrower making fixed repayments daily, weekly, or monthly based on projected cash flows. There are no prepayment penalties.
While GadCapital indicates rates vary case-by-case, customer reviews suggest that APRs for applicants with poor credit tend to range between 9% and 29% based on aggregated data.
GadCapital focuses on providing transparent, responsible financing quickly to underserved small businesses. Their streamlined processes allow for funding as fast as one business day after application approval.
For Pennsylvania companies unable to qualify for traditional financing, GadCapital offers quick access to working capital through MCA loans or tailored installment loans structured around the borrower's unique needs. Their network of lenders specializes in taking on risks that banks often shy away from.
What to Look for When Choosing an Online Lender
While online lending has opened up new avenues to accessible capital, these types of financing carry more risk than traditional bank loans. Borrowers should conduct thorough research when choosing a platform and evaluating offers.
Key Factors to Consider
Rates and Fees: Online business loans often have higher rates and costs than conventional financing. Look closely at any fees charged in addition to interest rates. Calculate the APR equivalent for MCA loans, factoring in total repayment amounts.
Qualifications: Each platform has different minimum qualifications related to time in business, revenues, owner credit profile, etc. Understand eligibility before applying.
Funding Timelines: One benefit of online lenders is quick access to capital. Look for platforms promising funding within 1-4 business days.
Payment Terms: The repayment percentage of credit card receipts should be affordable for your volumes for MCA loans. For installment loans, align payment schedules with projected cash flows.
Flexibility: Look for lenders offering customizable loan terms aligned with your projected repayment ability. Avoid lenders pushing one-size-fits-all structures.
Customer Service: Online lenders should provide high-touch support. Look for responsive customer service and transparent processes.
Thoroughly vetting potential partners upfront is key to finding the right financing match tailored to your business needs and risk profile.
FAQs on Online Business Loans in Pennsylvania
What are the main types of online business loans available in Pennsylvania?
Merchant cash advances (MCAs) and term loans are the two primary types of online business financing. MCAs provide an upfront lump sum in exchange for a percentage of future credit card sales over 4-12 months. Term loans feature fixed repayment schedules over 6, 12, or 24 months.
What are the main benefits of online business loans?
Online business loans provide fast approvals and funding, often in 1-3 days. They require minimal paperwork and collateral. Approvals are based more on overall business revenues than strict personal credit scores.
What credit score do I need to qualify for these types of loans?
Many online lenders work with applicants having scores below 650 or even 600. Approvals emphasize overall business cash flows rather than just personal scores. That said, credit still factors somewhat into loan decisions.
How much can I borrow through online platforms?
Loan amounts vary by lender, but $250K-$500K is common. MCA advances are issued at 50-250% of monthly credit card volumes.
How quickly can I get funding once approved?
Online lenders pride themselves on fast turnarounds. With the top-rated platforms, you can expect 1-4 business days from completed application to funding.
What are the repayment terms like for these kinds of loans?
For MCAs, repayments are a fixed percentage of daily credit card sales. For term loans, repayments follow set schedules (weekly, monthly) tailored to projected cash flows.
What interest rates and fees should I expect?
Rates vary drastically based on individual factors. However, expect rates from 10% to 49% APR for applicants with poor credit profiles. Many lenders charge no application or origination fees.
Can I get approved with bad personal credit and no collateral?
Yes, online lenders specialize in serving high-risk applicants who cannot get bank financing. Poor credit and no collateral do not necessarily preclude approval.
Should I apply to multiple lenders to compare offers?
It's generally advisable to shop rates from a few lenders before committing. Be wary of platforms that require upfront fees to view offers or apply.
Key Takeaways
In conclusion
Online lending has opened up new funding avenues for Pennsylvania business owners with poor personal credit or no assets to pledge as collateral. Platforms like GreendayOnline, PaydayChampion, Rixloans, PaydayDaze, and GadCapital provide quick access to working capital through merchant cash advance loans or tailored installment loan products.
While rates are high compared to conventional financing, these alternative sources offer more flexible underwriting criteria focused on overall business performance rather than just strict personal credit scores. For companies unable to qualify through traditional banks, online lending marketplaces can provide much-needed access to capital to smooth out cash flow bumps and fund growth opportunities.
Before committing, thorough research of lender reputations, full cost structures, and ideal borrower profiles is imperative. But online financing fills an important niche for the right applicant, helping underserved small business owners turn aspirations into reality.
Disclaimer: The reviewed loan websites are loan-matching services, not direct lenders, with no direct involvement in loan acceptance or influence over APR and fund deposit speed. Requesting a loan does not guarantee approval, and some lenders may perform credit checks. Loans may not be available in all States. This article provides general information, and although we strive for accuracy, we are not liable for errors or omissions. Some links may be affiliate links; we may earn commissions if clicked. Verify information independently and seek professional advice before making decisions; use of this article implies acceptance of these terms.