So you want to start or develop a small business and you need a loan to get started but you have bad credit. This is the reality for many entrepreneurs with young businesses. Personal credit histories as well as spotty payments on initial start up loans may have damaged your ability to obtain secondary financing. There can be hope though as small business loans with bad credit are possible.
The first alternative to obtaining small business loans with bad credit is to get a Business Cash Advance. They are loan alternatives that may be a good option for merchants with poor credit in need of small business financing. They offer benefits such as flexible repayment options and no collateral is necessary.
Here is another tip for obtaining small business loans with bad credit. If it is your personal credit history that is causing your company to have bad credit, ensure that you separate your business from your bad personal credit by forming a corporation. This will establish your company as a separate entity and only your company’s credit history will be questioned. Ensure that you work on building a strong business credit profile and prepare separate financial statements for your business and for you personally.
There are also other avenues then just obtaining small business loans with bad credits from banks. The government has a program called the Government Business Loans & Grants. This is a very exciting program whereby the business loan programs enhance the ability of lenders to provide long- and short-term business loans to small businesses that might not qualify through normal business loan channels. There are four types of Small Business Administration business loan and equity investment programs available in the US and countless others worldwide: the 7(a) Business Loan Guaranty Program, the 7(m) MicroLoan Program, the 504 Certified Development Company Business Loan Program and the Small Business Investment Company Program.
The Government Business Grants program is an even wiser way to obtain financing then trying to obtain small business loans with bad credit. There are special and specific grants for women entrepreneurs, young entrepreneurs, minority group entrepreneurs, veteran entrepreneurs and much more. There are grants offered in different fields too such as technology or research so get on the internet and start applying for some of these grants.
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