How can i get a business loans with bad credit?
Jun 20, 2009 in
Small Business
lil_b_z_honda
I have bad credit and i’m starting a web business not a big business so only need a small loan?
I have bad credit and i’m starting a web business not a big business so only need a small loan?
Like this post? Subscribe to my RSS feed and get loads more!
2 comments
imisidro on June 24, 2009 at 5:29 am
You may find a tough time getting a loan from financial institutions with poor credit, even from SBA. SBA requires a number of factors to avail of their loans, and one of them is good credit history (see SBA Basic requirements… )
If you cannot get loans, try to get a loan from your parents, family and friends. If they cannot give you any, use your credit card. Credit card requires no collaterals but are an expensive source of funds.
Otherwise, either downscale your plans and amount of capital needed; or wait until your financial situation improves. From the article “How to Start a Business with Little Cash” here are some tips on how you can start a business and earn more money even if you are short of cash today:
1. Find a business that you can start for little money (e.g. instead of a website that requires extensive programming, start slow such as starting a blog site using free software such as Blogger.com)
2. Consider your time and effort – if you have little cash, you may have to work harder for the money because you will have no resource to outsource or employ others to do certain tasks for you; or you have no money to buy equipment so you can only do certain things the long way
3. Get your creative juices flowing. With no money, the only thing you have is your imagination. Be creative and find ways to get things done
4. Be prepared to do all the work yourself – from doing your business plan, finding financing, writing emails, shipping and handling, marketing or whatever processes your business requires.
5. Be prepared to invite investors – you may need financing help from someone down the road so be prepared to share some of the pie.
For information on where you can possibly get financing, here are some recommended books:
- Financing Your Small Business
- Small Business Financing: How and Where To Get It
- Financing the Small Business: A Complete Guide to Obtaining Bank Loans and All Other Types of Financing
- The SBA Loan Book
- Angel Capital : How to Raise Early-Stage Private Equity Financing
Financing Your Small Business (Barron’s Business Library Series)
TradeMark Express on June 27, 2009 at 2:46 pm
The business of lending is a dense one and should be researched properly. To get started, I suggest contacting the Small Business Administration (SBA). Entrepreneur also offers a great site dedicated to money & finance – see below for both.
Research, research, research – this cannot be stressed enough. Read as much as you can about the process. Here are some book titles that are relevant:
* How to Get a Small Business Loan: A Banker Shows You Exactly What to Do to Get a Loan (Small Business Series, No 1) by Bryan E. Milling
* The SBA Loan Book: Get A Small Business Loan–even With Poor Credit, Weak Collateral, And No Experience by Charles H. Green
* The Insider’s Guide to Small Business Loans by Dan M. Koehler
There are plenty of free informational resources out there. Check the source box for links to articles.
Hope that helps! I wish you much success & happiness in all your ventures!