Loans For Small Businesses With Bad Credit

Richard asks…

where can i get a small business loan for my mary kay business?

I have bad credit becouse someone stole my idenity years ago and it still shows up on the credit reports. i have 2 children and this business is great for working moms with little time. but It is so much easyer to have product on the shelf. to work with does anyone have any ideas?

admin answers:

A small business loan from a financial organization, including SBA, may not be the right course for you. When you talk of loans, lenders are looking at 5Cs — character, capital, capacity, collateral and guarantees, and conditions.

Your poor credit history may not really be the main problem — if it is due to identity theft and if you have the police documents to prove that you are not the one who incurred all those loans in your name. That is something that can be explained. Financial institutions are usually leery of startups, more so when it is a home-based business like Mary Kay.

I suggest you read the SBA requirements for lending — they are looking for collateral, ability to repay the loan, equity investment (you don’t get 100% loan – they want to see that you have your own money invested in the business), among other things. Http://

Your best bet would be to : borrow from friends or family or use your credit cards (very risky and given your credit history, interest rates may be very high).

Carol asks…

how to get funding for a small business?

I live in Houston and would like to start a small cleaning service. I have heard that the goverment gives grants for this type of thing. Does anyone know how to get these funds? Also does anyone know of a company willing to give a business loan up to 4-5 grand to someone with bad credit and if so what does one have to present to the company?

admin answers:

First of all, do not pay attention to Mcmisth Brown or whatever because they are a scam. I am in the middle of starting my own business as well, but since most of the funding is coming from my own savings, I haven’t looked too much into loans, though I might later on. You can search for them online. I have heard that SBA is great, but I don’t know. Do a search on them and see what you find. Check them out at

Paul asks…

My husband’s father ruined my husband’s credit, crashed a small business under my husband’s name, help!!!!

My husband is very young 24 years old. When he was in high school and became of age to have credit, his dad took advantage of him and had my husband borrow loans for him. My husband was very young and naive and he didn’t really know anything about credit. Well his father never payed back the debts and left my husband with bad credit. Then about the time my husband was 19, his father convinced him to open a small construction business with employees. Well, everything ended up under my husband’s name soley and there were never any attempts to contact an accountant to handle the tax situation. In addition to construction, my husband’s father had my husband buy and sell real estate under my husband’s name. This went on for about 2 years and my husband being young and naive trusted his dad was doing the right thing and he thought his dad was taking care of everything, because my husband didn’t really know anything about a business or taxes. More….
The whole time, my husband was only receiving an hourly income and the only person who was really benifitting from any profit was his father. The business was never closed and no taxes were ever filed. My husband hasn’t filed taxes since he was nineteen and he doesn’t even know where to start because of the situation his father put him in. My husband and I can’t afford an accountant so we don’t know what to do. His father is no help either. We are just stuck and we just want to make things right. We just don’t know where to go or where to start. Also, I’m sure there are plenty of receipts and paperwork missing so I don’t even know what we would give to an accountant. We are just so scared that my husband owes a large amount of money in taxes and it’s all his father’s fault. Of course on paper it doesn’t look that way. Help!!
We can’t afford an accountant or a lawyer. I don’t even know what they would charge us.

admin answers:

Your husband has only one recourse and it’s going to be difficult.

Retain an attorney with out his dad’s knowledge and turn it all over to him. Your husband must be prepared for the potential outcome that his dad could be held criminally libel and that he might have to take his dad to court in a civil lawsuit. If he’s not willing to make this commitment, then he going to have a very difficult life ahead.

Good luck.

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