The eligibility parameters set by the various financial institutions are often hard to comply with. Banks in particular lay a lot of importance on the financial stability of a loan applicant. Since credit scores reflect the financial history of an individual, the banks find it as the most important criteria to be fulfilled in order to get a loan. Applicants with a low or even less than desired credit scores are thus considered ineligible for the loans.
Furthermore, the kind of loan one chooses has long-term financial effects. Loans primarily are of two types: secured and unsecured. Secured loans are extended in exchange of a security or a collateral. In the event of non-repayment, financial institution gains the right to sell the collateral in order to recover the money lent. On the other hand, an unsecured loan does not need a collateral. Bank overdrafts, credit cards debt, personal loans, and corporate bonds etc. fall under this category. Since this kind of loan does not require any security, the interest rates might be higher than that of secured loans.
Loans, either secured or unsecured, have one thing in common and that is the EMIs. They have a fixed monthly repayment schedule. The borrower needs to carry the burden every month till the whole amount is repaid to the financial institution. However, one may not need to carry such a burden if a business cash advance is opted for. A small business cash advance neither needs a collateral nor a high credit score from a borrower. Any business that accepts credit cards as form of payment and has been in the business for a minimum of two years is eligible for a cash advance. The repayments are made through the future credit card receivables of the business.
So if a low credit score, lack of proper collateral or EMIs is all what is bothering you from taking a loan, go for a business cash advance [http://www.cashdirectone.com/business-cash-advance.html] straightaway.