Unfortunately, your credit score has become the defining factor that can determine if you are eligible for a loan. Many entrepreneurs have what it takes to make a successful business, but may have made some mistakes in the past. As a result, even good business plans aren’t enough to get loans from traditional sources. But now there is hope for entrepreneurs with bad credit.
Family and Friends. Look beyond banks and credit cards for financing. Your friends and family can be a simpler alternative to groveling at the bank. More than 50 percent of new business get financing this way. Friends and family want to see you succeed and be a part of it every day. They also might be willing to invest more often if the business is going well.
Microlenders. This is a newer option that can have a big impact. Small loans from microlenders range between $5,000 and $25,000. This is a popular option as many microlenders make loans to business with bad credit.
Crowdsourcing. This is an online option where businesses can go directly to the public to help fund their startup. Fundable, Kickstarter, and GoFundMe, are just a few choices that can generate some serious cash flow for companies if the pitch is right.
Grants and Gifts. Forget payments all together, and focus on getting free money. This method may take more time and research but can be worth it in the end. Will the state or federal government support your business for free? Are there any grants available for your specific type of organization? Tech companies, health-care businesses, and even retail businesses in low-income neighborhoods generally qualify for some type of grant.
First American Merchant is the online lender that can give you the funds needed to launch your business. The company specializes in business cash advances for merchants with bad credit, and has the resources and experience to support entrepreneurs through the startup process.
Contact us to learn more about fast, low hassle lending today.