ach loans

There are many reasons why business owners struggle to secure the funding they need to grow, expand or launch their startup. ACH (Automated Clearing House) loans are becoming an increasingly popular option for businesses that need cash, but are unable to find a loan. Traditional lenders are typically unwilling to take on the risk of certain business types and industries, categorizing them as “high-risk”. An ACH loan from an alternative lender like First American Merchant provides a solution.

For the small business owner, there are many benefits in securing ACH loans:

ACH loans offer options to “high-risk” merchants

There is a long list of merchants traditional lenders often refuse to provide loans to, including: automotive, beauty salons, construction, doctors, dentistry, hotel and motel, restaurants, retail, trucking, among many others. This includes industries that experience high chargeback rates and merchants that have a bad credit, bankruptcy or tax liens. As a high-risk specialist, providers like FAM specialize in working with these “high-risk” business types, and offer a flexible ACH loan program.

ACH Funding involves a flexible, hassle-free process

An ACH loan provides merchants with quick cash. In addition to being a fast solution, An ACH loan involves a flexible, straight-forward process. The lender evaluates the business’ checking account over the last 3-6 months. The amount available to the business will be based on the number of deposits and average monthly revenue of the business. The lender then withdraws pre-determined amounts from the business’ checking account for gradual repayment of the loan.

ACH loans help restore bad credit

As mentioned above, even merchants with bad credit can easily secure the cash they need for their business. Traditional lenders will not work with business owners who have bad credit because of the perceived risk. With FAM, on the other hand, merchants with a 500 FICO score, six months in business and 10k in gross monthly deposits can easily qualify. Through an ACH loan, merchants struggling with bad credit can quickly secure the cash they need manage short-term operating expenses, while rebuilding their credit score at the same time.

If your business is having trouble covering day-to-day operations and you have bad credit, consider what an ACH loan could do for you. An application with an alternative lender like First American Merchant can be completed in a matter of minutes. No tax returns or financials are required.