When applying for a poor credit business loan, what are the minimum credit requirements?
I am owner of a small business (LLC) that delivers to vessels in ports. I have an investor, my tax id, and all legal paperwork. Technically I am functioning, and have been for 2 weeks. My issue is this. I had another investor who has backed out, due to personal matters. I had not tried to apply for a loan at start up because I though my personal credit was too low (between 515 – 565) the business itself still has zero. I have customers that need to be supplied now, and need to come up with the other 50K.
Our business plan is structured that we pay off the financier in 12 months at 30% interest. (that would have been the total 100K) So you can see incoming cash flow should not be a dilemma, and my business plan shows this.
The other issue is since my industry is behind the public eye, (how many of you have been on a tanker?) It is hard for an individual to believe the numbers are accurate, when in fact we are “low-balling”.
If I applied as a bad credit minority, would I have a chance? Where are the best places here in Florida or otherwise to apply? Any suggestions? I need to get this going or be in a devastating situation.
I cannot go to family, or friends in this economy, finding another investor, going through the process with them, their accountants and lawyers will end up taking too much time and ruining what has been started. Our mission is to be a loyal company, my customers that I have had since fully financed, still need to be served as promised.
As an aspiring entrepreneur you have to realize the road ahead is going to be tough. While one of the hardest things that you have to do to start your small business is to get the funding that you need to start up. Most small-business owners are lucky enough to have enough resources such as surplus funds in their savings accounts to start their businesses. But for the majority of those business owners just like you and I, we require some help and assistance.
With the recent recession and the economy heading towards a downward spiral, getting the loan that you need to start your small business is going to be a very difficult road for you. But thanks to Uncle Sam there is a better choice out there for you. The government is going to offer you a small business loan grant. The benefits of getting a grant from the government is the fact that it never has to be paid back unlike a normal loan from major banks such as Bank of America Wells Fargo etc.
How do i get a loan with bad credit?
I’m starting a small business selling gift items but i need capital in order to launch it. My credit is terrible. Who would give me a chance by loaning me money?
A lot of finance companies do just that, but they are going to want high interest or a piece of your business as security for the higher risk.
You want somebody to “give you a chance”. By saying that your credit is terrible, it sounds like somebody already gave you a chance to show that you are responsible with other people’s money and you blew it.
what is the best way to obtain credit with like 8k cash and absolutely 0 credit? (no good and no bad.) 1 am 20
yrs old and have a hard time conducting business because i have 0 credit. I’ve always paid everything upfront with either cash or check, but now, i cant get even a simple $500 limit credit card or a small personal loan…. thanx
Congratulations! You sound like a gut that has his “ducks in a row”.
Either a secured credit card or get a secured (with some of your cash) personal loan. Next time you want to make a major purchase, contact your local bank. Want to buy a $2,000.00 sound system? Don’t just go by it. Talk to your bank. Tell them you want to establish some credit by borrowing the 2k and deposit 2k from your savings w/them. They will be pleased you approached them. If you have your 8k in their bank, they may loan you half of the money, unsecured.
Once you get this loan, make your monthly payments. Resist the temptation to pay it off. The bank wants to see that you have the maturity to make payments on time.
Second loan will be much easier.
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