Millions of people across the United States dream of one day having the means to start a small business. There a variety of hurdles that come with the desire to start a small business. The first, and most important, step in your quest to start a small business is to come up with an idea that will make money.
There are a variety of reasons why people want to start a small business besides just earning money. There is freedom to be independent from a boss or corporate structure, the ability to set your own hours, and the chance to work on something you are passionate about. However, without a firm plan on how to make money when you start a small business, you will not reap these benefits.
Once you have a profitable idea in mind, you will need to get business funding in order to start a small business. Finding the business funding necessary to start a small business is a daunting prospect. It is even more daunting, and downright impossible, to get business funding when you have bad credit.
That is why this informative business guide was created. This list of 4 business funding tools are perfect for those with bad credit.
Read the tips below to find out how to get the business funding you need in order to start a small business – even when you have bad credit.
Since its inception in the past decade, crowdfunding has exploded in popularity as a way for individuals to get the money they need for various expenses. One of the most popular reasons for crowdfunding is to gain business funding from an online community to start a small business.
There are tons of different crowdfunding sites to choose from, and bad credit will not affect how well your crowdfunding campaign turns out.
After all, bad credit will not stop you from presenting your business plan, product, or service in an effective manner.
Friends and Family
Another extremely effective way to procure the business funding you need when you want to start a small business with bad credit is to turn to family or friends for assistance.
This method of business funding is similar to crowdfunding in that its effectiveness relies primarily on the strength of your business plan, idea, and product. Similarly, bad credit will not affect whether or not your friends and family are comfortable with giving you a loan.
While your bad credit might not be an issue to your loved ones, you will still want to take some steps to ensure that there will be no bad blood if the business doesn’t succeed. The business funding you receive should be based on honesty and openness. Therefore, make sure you explain the potential risks and rewards of the business to your lender. Also, consider offering equity and signing an official agreement to make sure everything is above board and no feelings are hurt.
It can be difficult to get a personal loan from a bank when you have bad credit. It can be even harder to get a personal business loan from a bank when you have bad credit and no previous business credit. With that being said, a credit card can be a great tool to gain the business funding you need to start a small business when you have bad credit.
A common misconception is that having bad credit will completely prevent you from getting a credit card. Luckily, there are many credit cards for those with bad credit that will allow you to get some business funding to start a small business.
Using a credit card as a means of business funding has the added benefit of reflecting positively on credit, which will make it easier to find more favorable loans in the future.
Car Title Loans
Car title loans are a quick and easy to get emergency cash when you have bad credit but need business funding for your new venture.
Car title loans are simple. All you have to do is bring your car to a title loan company, have the vehicle appraised, and sign a few documents. You can be out the door the same day with funding in hand to start a small business.
Good Luck and Work Hard
Once you manage to find the business funding you need, you will be well on your way to becoming a successful business owner. Small business ownership is not easy, but with some business funding, luck, and hard work, you too can start a small business that will thrive.