Need Money For Your Startup But Have Bad Credit? Check Out These Alternatives...

startup business loans fast

Starting your own business can lead to a very lucrative career, but before you can rake in the profits, you need to first invest in your dream. Often times, this means lot more than you budget will allow you to spend. Things get even worse when you have bad credit, as banks are usually less willing to loan money to someone that just doesn’t seem likely to be able to repay in time, based on their credit history and the overall bad credit score. While it all sounds really daunting, know that there are ways for you to get your startup running. Here are the alternatives you should keep in mind.


Loans From Friends and Family

One of the first solutions for how to get a business loan with bad credit is friends and family. One of the advantages of borrowing money from someone you are close to is that they won’t take away your house if you fail to pay them on the exact day you’ve agreed on. While you should still do your best to repay them in time, knowing that you won’t get the noose for missing a deadline can be very liberating.

Crowdfunding

Crowdfunding is a very popular solution and it has created very successful products many times. The principle here is that you ask your future customers for money. It’s like an advance on their purchase. They help you start your company or create your product, and then get special benefits and rewards for being part of the Crowdfunding effort. This can mean many different things and it’s up to the startup owner, you, to determine how you will take special care of your crowd funders. Popular solutions are major discounts on the product, special items or offers not available to other customers, or even limited edition items.

Third Party Lenders

A bank will frown a lot more when you ask for money with bad credit than a third part lender. You can find many lenders online that play a lot looser with the rules. For them, the fact that you have bad credit might not matter as much, as they would be interested in other details regarding your financial situation. It can be a great opportunity to get the loan you need without having to settle for less money or a higher interest rate like you would get with a bank.

Grants and Community Projects

Many communities have special grants for all sorts of things. You might be living next to a very helpful grant for small business startups, without even knowing. Also there are organizations like unions and community groups that aim to help people that adhere to their inner circle. One of these might be available to you as a member of your own community or neighborhood. Before you commit to any type of loan, ask around and inform yourself about the government-supported solutions available in your area.




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