Loans For Small Businesses With Bad Credit

George asks…

In the next six months we are opening a franchise and in the process of clearing up poor credit?

I and my partner are looking to open a franchise in the next six months and in the process of clearing up the rest of our credit along with saving six months for capital but we will need a loan under a new corporation. We are wondering due to the crisis if we should wait for a year after the dust settles or will the six months lenders might be more agreeable to loan for small business. Even though the financial crisis may clear up it is evident we are heading to a recession in which it might be better to stay at the old job or try for a higher paying job. My partner and i consider the franchise as recession proof and we are able to save until we open but we definately will need a loan to be able to open without piercing the corporate veil! I understand it may take 1 year to two years for a bank to look at you for a large loan but we are just looking for start up to go with our capital. We are applying for the corporation and credit clean up is definately in the works for our score but a little worried that we may have to wait indefinate for a loan. Any suggestions? I saw in the other emails bad may not be the thing to use after the financial crisis so we are wondering besides borrowing and saving ( no home sorry!!) what else can be done. Will the late for small business be long? By the way what exactly is a credit line for small business what is it used for ? is it the same as money?

admin answers:

You are defiantly going to want to have your scores at least to 620. Higher would defiantly be better. The loans are out there for people that have put together a good business plan and have th ability to turn a profit.

If You don’t have a plan in place I would do that first. It might not be a bad idea to seek a professional to help with it.. You should also be able to get a forecast of what new stores are making from the franchise company. If there are a number of franchises in the area you can most likely receive that information from a couple of the other ones as well. This will help to show the lender and yourself what you can reasonably expect to make and will show the likelihood of your ability to repay.

If you want to discuss any of this you can call myself or Dan at 800.709.5306

Good luck in your journey,

Thomas asks…

What is the best way to get a loan?

What is the best way to get a loan for a small business with bad credit and no job?
Please help me

admin answers:

Sometimes there are these guys who loan you money, but you just got to pay them back with interest.

But they get mad if you don’t pay them back, so I’d be careful. :)

Joseph asks…

Is it possible to get a small loan to edit my book with?

I have somewhat bad credit. I do have a job however and stable income.
But I’m at the point now with my writing where I would like to have my first book professionally edited. The prices I’ve found so far are pretty expensive, ranging from about $2,000 to $4,000 for how much I’ve written. I definitely want to invest in this and get what I pay for, because the outcome of having my book edited will pay off in the long run. However I don’t have a spare $2,000 or $4,000 just laying around. So my question is would a bank be willing to do a small business loan in the aforementioned amount and whether they would even consider editing for a book as a “business” type loan?

I appreciate the help.

admin answers:

No. Banks will not give you a business loan for that. It’s too small for them, and your bad credit poses a financial risk for them.

Personal loan is also out for you as you have bad credit

Of course, you can always try. Go to your bank and try to talk and inquire if given your needs and situation, whether they will give you a loan

Do you have credit cards that you can still max out? It’s not the ideal solution, but for most people, the easiest way to get money for their business.

Another option for you that can help you raise funds (though I doubt the full capitalization) is through crowd funding sites, where other people can give you funds for your business. Some supports creative endeavors while some are for businesses. Make sure to make your story compelling. Some examples of these sites are (for the complete list, see in the source)

- Kickstarter
- Indiegogo
- Chipin
- Citizen Effect
- Cofundit

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