Where is the best place for small business financing with bad credit?
I opened a flower shop over a year ago and I made the mistake of not incorporating, our profits are increasing but my credit has been going downhill. We are at the point where my personal funds that started this are depleted and need some working cap. Of course banks won’t look at me because of my credit score. We have the potential to make $300,000 per year but without the proper cap we might not succeed in day to day operations.
Small cities are defenitely the bests
Is it very easy to get small business financing when your credit is bad?
You could try looking into financing from other companies, as opposed to banks and financial institutions. They would be the only ones willing to take a gamble on a business proposition, but even then, unless your plan is absolute gold, it can be tough to find an interested party.
Speak with every company you plan on looking into for loans, and speak with them personally. Obviously, terrible credit could affect decisions in certain ways, and your credit is definitely going to be checked. But, your loan suppliers will be more interested in your idea for a business, and the potential it has to make THEM money, too.
There are quite a few grants and loan books available to the public where you can research many of the terms and conditions for company loans. Interestingly enough, a halfway decent one is: Matthew Lesko’s book – you know – that little annoying guy who wears the neon suits pocked marked with question marks. There are actually some really decent resources in his books, but there is also a bunch of junk, so just read it thoroughly.
You should be able to get a business off the ground, even with not-so-good credit. You’ll need to offer some kind of collateral against the loan you’re taking out, NOT including the real estate of the actual business – your house for example, and any other assets you may own, depending on the size of the loan. If anyone asks that you do this, be extremely wary – or be 100% positive that this company idea isn’t going to eventually fall into Chapter 7 bankruptcy – where you could be forcefully required to sell all of your assets to pay off your creditors. It is a completely legal practice, and many people end up losing EVERYTHING when their business goes under. You have to remember this at all times,. Because many fledgling businesses never make it past their first year. Starting a business is not easy, especially if you’re wanting to build a brick & mortar establishment, so just weigh your options carefully.
So, to answer your question: it is possible to obtain small business financing even with questionable credit, but only if you look in the right places. Don’t walk straight up to your bank or credit union asking for the loan, because they’ll just look at your credit and laugh. Instead go to a popular bookstore like Barnes & Noble or Walden Books, and in the Business section you’ll find plenty of books on companies that finance other companies. Buy one of those books and start doing your research. Don’t settle on anything until you are satisfied with the terms being offered. Sorry for not quoting any good sources to try first, but you should really be the one who finds a financing company that is right for you.
How do I find financing for a small business if I have bad credit?
People with bad credit have proven themselves untrustworthy with money.
If you have bad credit, it’s highly likely you won’t be able to get an unsecured loan. If you own your home, you might be able to put your house up for collateral.
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