repayment terms and credit check
Hi – if approved for a loan is it possible to make daily “micro payments” in the same amount, or does it need to be a single monthly payment?
And I assume my credit is pulled if I apply for a loan?
The answer to this depends on which type of loan you qualify for. For example, if you qualify for and take out an OnDeck loan, the answer is yes. OnDeck deducts a small amount of money from your account every weekday until the loan is paid off. Similarly, if you take out a merchant cash advance (which we don’t necessarily recommend unless you’ve exhausted other financing options because they are quite expensive), a fixed percentage would be deducted from your daily credit card sales until the advance is paid back. Most lenders, however, offer monthly payment only.
In answer to your second question, most lenders will check your credit before approving you for a business loan. They want to know your prior history, so they’ll have more certainty that you’ll pay back the loan. If you’re struggling with bad credit, check out our guide to Bad Credit Business Loans.
Hope that helps!