Small Business Financing Bad Credit: Some Answers

Robert asks…

I’m a small business owner with bad credit in need of financing. Is it possible?

I am currently leasing a suite in an office building. I have opened a nail salon and am having a hard time keeping up with the rent. I want to get some sort of financial help to purchase equipment that would allow me to rent booths to other operators, which would help me generate revenue. I need money to purchase manicuring tables and chairs. If I could just get a little help, I could really get this thing up and running, I have been told that I am very good, and being self-employed is wonderful. I am a licensed manicurist and I have big dreams of having my own franchise of nail salons. I just don’t know how I can do that when I don’t have the money already. I’m just trying to better myself and provide stable work environments for others. You can check out some of my work at

admin answers:

First of all you need to, if you haven’t yet, draft a business plan to show a lender what you plan on doing to generate money. A lender will look at your plan and decide what the risk is. Unfortunately your credit is a problem, but some lenders will take the risk if you have been in business for at least 24 months. You may to take a higher interest loan or use collateral to secure the loan as well.

Donna asks…

I have bad credit and need financing for my business to expand? Does anyone have any ideas on how to do this?


I have a small residential and commercial cleaning business that I am looking to expand. I have been shopping around for financing through traditional lenders, but due to my 518 FICO score and millions of charge-offs, I can’t get fianancing. I have applied to a few non-profits in the state that I live in. I have also been pitching my case to some friends. I don’t have any family that can help. They all have bad credit and so do much of my friends. I really do not know anyone with cash on hand either. I have been looking into getting an angel investor or a venture capitalist, but I do not know if that’ll work. I’ve posted an ad on Prosper and I never get responses. Again, I think that this is due to my bad credit. I am seriously running out of ideas. I have 15 months invested in this and I do NOT want to give up. Does anyone have any suggestions or can anyone suggest a place that can help me? I know I need to fix my credit, but I need the money to do it. Please, please, help!

admin answers:

I think may be your last best chance. Maybe you need to change your writeup. Potential lenders want to know about your past but, most of all, they want to hear your honest description of why and how you think you’ll be successful this time. Potential lenders like to invest in people, not in businesses.

Just be careful that any solution you decide on is not taken in desperation and quick judgement. The results could make your situation worse than it already is.

I’m sure you realize it now, but others should learn from your experience that poor financial responsibility has very serious long-term effects that are extremely difficult to overcome.

Best wishes to you.

Donald asks…

how do i get start up finances to start a small business with bad credit?i have a great idea,just no money…?

i have a business plan.but the finances aren’t here to imploment it.

admin answers:

Entrepreneur offers a great site dedicated to money & finance – see below.

Research, research, research – this cannot be stressed enough. Read as much as you can. Here are some book titles that are relevant:

* Free Money for Small Businesses and Entrepreneurs by Laurie Blum
* Finding Money: The Small Business Guide to Financing (Small Business Series) by Kate Lister, Tom Harnish
* Financing Your Business Dreams With Other People’s Money: How and Where to Find Money for Start-Up and Growing Businesses by Harold R. Lacy
* No Cash No Fear: Entrepreneurial Secrets to Starting Any Business with No Money by Terry Allen
* Starting on a Shoestring: Building a Business Without a Bankroll by Arnold S. Goldstein

There are plenty of free informational resources out there. Check the source box for links to articles.

Hope that helps! I wish you much success & happiness in all your ventures!

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