Every financial expert advises new business owners to first work on and improve their personal credit histories prior to applying for business loans or merchant accounts. In a perfect world, no matter what your credit issues are, you would be able to pay all of your debts and see your credit score soar overnight.

The truth is that it takes time to improve imperfect credit histories, and in the fast paced world of business, waiting too long can cause business owners to lose their companies altogether. If your business needs an influx of cash and you know that you won't qualify for traditional business loans, here are the best alternatives.

Apply For A Merchant Cash Advance

For the most part merchant cash advance companies don't use credit as the main determining factor for their loan applicants. In fact, you might find a merchant cash advance service that is more concerned about your cash flow, length of time in business, and assets than credit at all. Although all cash advances generally come with higher service fees and interest rates, they are also approved and dispersed quickly.

If your business needs money so that you can increase profits, a merchant cash advance can be more practical than a traditional loan. Not only will it take less time for you to receive the money, but you won't have to enter into a long-term, installment repayment agreement, so it is unlikely this type of financial product will appear on your credit report.

Try Peer To Peer Business Lending

The good news about peer to peer lending is that all business owners have a chance at fair representation. Most times, peer to peer business lending is done on a website, where each peer funding requester can give company background and present a repayment plan that is mutually beneficial. This differs from getting a merchant cash advance as many people and entities would be funding your peer loan as opposed to getting the money from one source.

Peer lending also takes credit history into consideration, but you can get people to loan money to your business simply by being transparent. Explain why you may have experienced credit troubles and let potential lenders know that you are now more financially savvy and ready to take on all current and future financial responsibilities. Whether you choose to go with a merchant cash advance or peer to peer lending, borrow just enough to keep your business growing at a steady pace.

For more information, contact local professionals like Fordham Capital.