Small Business Loans With Bad Credit

Steven asks…

Can you qualify for any loan with bad credit even though you are able to make a large down payment?

Like alot of people right now, my family has hit really hard times, my husband’s business lost all work, we’re both working now but with very limited income. We have tried to make thngs right with our creditors, we’ve sold our house, and are thankfully walking away with some money, but cannot afford to pay the rest of our outstanding debt off. We have some repossessions (business related in his name) against us, medical bills, credit debt, etc. We need a place to live, and looking at houses that are less expensive than our old one, between $40,000 to $115,000, but wondering what are our options, if any, if we could pay down $15,000-$20,000? Due to our outstanding enormous debt, we’ll more than likely have to file bankruptcy anyway. The money we will get from the sale of our house is absolutely all we have, and we’re also looking into renting, and possibly moving in with relatives. We are a family of four, with 2 small children and pets, so it’s hard infringing on someone else’s home, I’m consumed with worry and can’t see what’s ahead. Any info about credit and what is an option for us would be much appreciated, thank you.

admin answers:

First of all, take a breather! I understand what it’s like to worry but you cannot let this consume you. In order to tackle the situation you and your husband will have to work together and think rationally. It’s great that you were able to sell your home and walk away with a little cash but buying again right now should not be a consideration for you- the 3 best reasons are 1. You may need that money for emergencies 2. Any extra money you make should go towards paying down debt and pulling yourself back into a decent credit score – with a low score you are going to pay higher penalties in interest 3. In 3 years you will be considered first time home buyers again (assuming you own no other properties) and will qualify for government help for down payment assistance should you need it.

Just because you cannot pay off your debt in full right now doesn’t mean that you should give up completely and file bankruptcy. I understand it may seem impossible without bankruptcy but you should consider that your last and final option – only you and your husband can make that decision.

Contact a debt relief specialist with a not for profit organization (very important that they are not for profit) that will help you repair your prior mishaps without requiring upfront money. Medical bills should not be on your credit report – there are soo many ways to avoid this. Contact the person/company to whom you owe the medical bills, find out who you can write to request debt forgiveness. Many hospitals and doctors do work pro-bono (without pay) up to a certain dollar amount each year. Writing to them explaining your financial hardship can sometimes give you complete forgiveness of your debt – it’s worth the try! Medical bills can be made with regular scheduled payments, even just $5.00 per week.

Contact your credit card companies and ask for help with your interest rates. Interest rates can make a huge difference in the payments you make each month. To roll down your credit card debt line up all your credit cards in order of highest to lowest interest rates. Pay as much extra each month as you can on the highest interest rate and pay minimum payments on all the rest. Once the card with the highest interest rate is paid off take everything you were paying on that card and apply it to card number 2 in line, pay minimum payments on all the rest. When card 2 is paid off apply everything you paid on card 1 and on card 2 to card 3 until that one is paid off. It will work!

As for the reposessions that are business related, if your husband did not personaly guarantee them, dispute them as not being your account with all of the credit bureaus and see what happens. If the account cannot be proven to belong to you within thirty days it must be deleted from your credit report and cannot be placed back on there. If the account is verified as being yours you have two options, either dispute it again or try to work out a settlement with the person/company to which you owe the money.

I also agree with the other poster that said renting can be beneficial for people who are on a limited income because you don’t have to worry about unforeseen maintenance issues and you can depend on your monthly expenses.

If you need more help, please ask and I’ll do my best to help!

James asks…

What would I need to start a “car part sales business” ?

Hello everyone I live in Ontario Canada and I wanted to get something started with my life and I was thinking about starting a business selling car parts. I was thinking about getting them from japan for a cheap price and selling them here for a low price, this is all completely new to me and I just got the idea from my father and was wondering if I would need to have existing contacts in japan or if u can gain them through the internet or from another source.

Another question would be about the financial aspect of this. I have bad credit right now and close to bankrupct so it would not be possible for me to get a bank loan, what other options do I have? Also how much would i need aproximatly to start a new business like this one. Not a huge shop just small enough to run something.
If anyone can help me out with tips, info, web sites, or anything else would be greatly appreciated.

Thanks again

admin answers:

Here’s a link to them on ebay business.

David asks…

What would I need to start a “car part sales business” ?

Hello everyone I live in Ontario Canada and I wanted to get something started with my life and I was thinking about starting a business selling car parts. I was thinking about getting them from japan for a cheap price and selling them here for a low price, this is all completely new to me and I just got the idea from my father and was wondering if I would need to have existing contacts in japan or if u can gain them through the internet or from another source.

Another question would be about the financial aspect of this. I have bad credit right now and close to bankrupct so it would not be possible for me to get a bank loan, what other options do I have? Also how much would i need aproximatly to start a new business like this one. Not a huge shop just small enough to run something.
If anyone can help me out with tips, info, web sites, or anything else would be greatly appreciated.

Thanks again

admin answers:

You didn’t say if you were talking used or new car parts. If you are thinking of running a used parts / salvage yard, you can begin by buying salvage at salvage auctions. Look for some in major cities. Bid on the vehicles and then let repair shops and retail customers know what you have. Start out with one type of vehicle (ie pick up trucks or foreign cars) and move on from there.

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