Kabbage. Have you heard of this? Kabbage offers small business loans based on your income, not your credit score. They literally 'go into your bank account' and take a peek at the activity and from there they decide what amount you can borrow for your business.
Now, here is the tricky part ... the payment schedule is a 6 month 'payback' agreement. Yeah. So let's say you want to borrow $3,500. The loan itself looks like this:
So, using the above 'Kabbage Score' this client has a fee amount of $420 ... and below is the payment schedule:
Here are the pros and cons of a loan 'payback' schedule like this:
Pros: the loan is based on your bank account activity which means as long as business stays the way it's been - you should be fine and you don't have a debt for very long, which nobody wants anyway.
Cons: the payments are HIGH! Those first 2 are over $700 a month! That's scary! And, if business declines for you and you can't make the payment then there are penalty fees.
I applied for a loan through Kabbage and it took less than 1 minute to find out how much The Editor's Touch could borrow. It was crazy!! After you are approved for a loan the money just sits there in the 'Kabbage bank' until you want to use it ... I do like knowing it's there for those 'oh sh*t' months ... but so far that's all it's done is sit there because I'm pretty scared of that 6 months payback schedule.
I did talk to a representative there who said they do have some 12 month payback plans available and are working on easier payment schedules ... but it's kinda fun to apply just to see what happens ;)
I can think of a few good reasons to take out a small business loan ... and a brand new website is one of them!! Haha!!