You need not feel hamstrung if you’ve got personal bad credit but wish to start a business – there are a plethora of options available today. In fact, you can use several of the available options, in an effort to try and make up the difference. The primary source, however, will almost certainly depend on what you can corral from sources aside from what family is able/willing to provide, your personal bank account and retirement funds. There’s little doubt that bad credit will hamper your ability to acquire unsecured loans, which is why the following alternatives are so useful to millions of entrepreneurs just like yourself.
The Social Lending Option
The first step here is to find a social lending platform online so that you can compare and contrast the options. Such sites serve as a personal loan marketplace between individuals, and the rates are almost always lower than what the big bank would give you. Plus; they understand your situation better – since this is, after all, one of the reasons why they are social leaders, themselves. Microcredit unions are a sort of subcategory here, with the added benefit of sponsorship by the government (SBA). Thus, you can also count on sound advice from the latter.
Lenders for Equipment Expenses
Any new business will need equipment of some form – especially as you become more profitable. This can run from sewing machines to computers; the rates are quite reasonable, and there are few to no issues with bad credit since the equipment is the collateral.
Business Assets
Even before your business becomes profitable, you’ve certainly got assets, right? These have value, and there exist methods by which you can garner funding with these assets. The money can be used for business operations of all kinds – from payroll funding to expediting cash flow.
Diversify Your Funding Sources
Ultimately, the above options are an excellent way to diversify your funding options – and they are just the tip of the iceberg. Most of them can be used even if you have bad personal credit; in fact, several of them are tailor-made for this purpose. To find out how to get started and gain access to more resources, contact Aspen Commercial Capital at your earliest convenience.
If you have bad credit now, it doesn’t mean that you will always have bad credit. Take the time to review what made your credit bad, start making better choices and your credit will get better. Here is another great resource that will give you some great tips on repairing your credit.