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kefloyd1980
05-08-2006, 06:49 PM
Hello and thanks in advance for your help,

I am a young gentleman who is serving his country and is looking to start up a business part time so I may be able to opperate full time when it's time for me to get out of the service.

My problem is getting financed. My credit was ruined because of my divorce. Even though I have been working on my credit, it is still not worthy of being approved by a financial institution.

I have heard of obtaining grants (which I think does not exsist) and receiving investment loans from investors. But how do I locate such funds.

But I am certain of my sucess...........i know the business inside and out.

Can anyone help

BusinessMan
05-09-2006, 01:43 AM
It will be very difficult, but the start point will be the same: a detailed and convincing business plan.

It is unlikely that anyone will provide credit, or VC, unless they see evidence of likely success. You need to provide that in the quality of the plan you produce.

kefloyd1980
05-09-2006, 05:38 PM
Thank you for your input businessman. But, is there even a chance of getting business loans or investment money even with a solid plan. I feel as though I am being stabbed in the back by my own country (which I serve). Immigrants, which happen to be minorities can come to my country without any credit at all and get all the financial backing they need, but I have to beg and plead. I am absolutely positive that my business will succeed. My business plan is currently in the works, but I would be happy to show you a copy once I am done if you would like to give me any constructive criticism.

BusinessMan
05-10-2006, 02:27 AM
"My credit was ruined"... that, of course, is likely to be your biggest problem. However, you can do no more than present your plan/case.

Orion
05-16-2006, 10:16 AM
You do not state what kind of business you are trying to get financed. This is important. If your credit was ruined because of a divorce, then you may need a hard money lender (charges more in closing costs and points) or a private investor. Most lenders want to see collateral and an exit strategy if you cannot pay the loan back. If you have only a good idea but nothing else - it will be hard to get money from any funding source.

coffee_kid
06-19-2006, 02:20 PM
I'm in the same boat as kefloyd1980, however I do have a solid plan I've been working on for some time with a loan advisor.

I do, indeed have a solid business plan, but I don't have good enough credit to get approved for the money that I need to get to OPENING day.

Should I wait out the application process and be declined, how do I find the right company that would want to fund my idea...

I definitely want to have a backup plan.

SBA requires 25% down payment on a loan.
How would I get to $30,000 for the $150,000 I need?

BroadgateBusiness
06-23-2006, 10:43 PM
Hello,
I am very new to this forum. Coffeekid, if you need $30,000 and can create a solid business plan, then have you considered seeking smaller angel investers to cover your $30,000? You could get $5,000-$10,000 from 3-5 investors and be covered.

CliffLife
01-21-2014, 11:35 PM
Will it be harder to obtain a loan or investment because of your credit? Absolutely. It's quite unfortunate too, because at least in the U.S., they don't ever teach you how to manage finances and work on obtaining good credit while your young. Is it impossible? Not at all. The trick here is whether or not you yourself can pitch the idea. Sounds easy? It's actually a bit more difficult than most entrepreneurs seem to realize. You definitely need to draft a business plan and explain how your company/product/service can ensure profits to be made in the future if said loan/investment were given to you. Figure out the amount you need to get started and get the wheels rolling properly, as this will show you also did your research. Then it's all about selling your idea to the investors. If you don't 150% believe in it, it will show and they won't lend you a dime. It has to be a solid thought out business plan that you believe in enough to get others believe in.

I hope this helps and I wish you the best of luck in your start up.

pandandesign
01-22-2014, 01:19 AM
What kind of business will you plan to go for? It's not easy to obtain the loan based on what you have mentioned, which your credit is ruined because of your divorce. It's even harder when you have a bad credit because most lenders won't even consider working with you when they find out that your credit is below than what they have expected. In some lenders, however, will charge you very high interests for lending you the money to do your business because believe me, you don't want to have the interest of 50% for every dollar they lend you. For instance, I have a friend who's repaying the interest of 42%, which is for every $1,000, he has to pay the interest of $420 to the lender. Do you want to do that? No, because you don't know whether or not you will make money when you start up your business because most often people don't make money in the first year of their business. I would talk to the lenders or investors about this situation because lending money to do business is not easy, unless you have family or friends that can help you out.

cpefley
01-22-2014, 01:56 AM
Have you ever heard of Kickstarter? It is great for people who need capital, and you can grow your customer base at the same time. I have seen many people use Kickstarter to start their business. I think it would be a great option, especially if you are worried about the credit situation. http://www.kickstarter.com

delusional
01-22-2014, 04:34 AM
What kind of business will you plan to go for? It's not easy to obtain the loan based on what you have mentioned, which your credit is ruined because of your divorce. It's even harder when you have a bad credit because most lenders won't even consider working with you when they find out that your credit is below than what they have expected. In some lenders, however, will charge you very high interests for lending you the money to do your business because believe me, you don't want to have the interest of 50% for every dollar they lend you. For instance, I have a friend who's repaying the interest of 42%, which is for every $1,000, he has to pay the interest of $420 to the lender. Do you want to do that? No, because you don't know whether or not you will make money when you start up your business because most often people don't make money in the first year of their business. I would talk to the lenders or investors about this situation because lending money to do business is not easy, unless you have family or friends that can help you out.

This is very valuable information so read this very well.

I would also need more information on the business you are trying to start. It can help us to determine where to cut costs and how much you really need.

mikka254
01-23-2014, 12:47 AM
The reality of it all is that without any assets, your chances of getting a loan are slim to none. The government does not invest on immigrants just to make you feel "stabbed in the back", this is because when they arrived, they didn't have any assets so it's like investing in them so that they can make a fresh start. As for you, it is assumed that you should not have any excuses for not having any assets. It may seem unfair, but that's the only way a bank can weed out liabilities so that they make money out of the interest instead of losing money trying to track you down for the loan settlement. If you do not have any assets to acquire a loan, bullet proof your business plan and find investors. The investors could be friends, family or a loved one. But never go to loan sharks! They are dangerous to your business' future.

fredkawig
01-23-2014, 07:22 AM
A loan would be pretty helpful in your situation. If you cannot find companies who would lend you a loan due to your bad credit, maybe you can borrow some money from your family members if they would be willing to lend you some. Other than that, you can actually start a small business if you have a budget and grow from there. Otherwise resorting to lending institutions is your best bet. A grant and investment loans are highly improbable unless you really have a good business that would change the world for that matter.

oxpaulo
01-23-2014, 03:37 PM
Try to find a friend or business friend that believes in your project and has decent credit. Try to convince them to take a chance, you never know.

ap4aaron
01-23-2014, 07:13 PM
Work on your credit first. You really need good credit to start-up. Another way, if you absolutely can't get good credit, is to go to kick-starter and attempt to crowd-fund your project.

hillaryNC
01-23-2014, 07:54 PM
It definitely is possible, but it would be very hard!! Your best bet might be to a find a business partner with good credit, or work on your credit score!! Good luck!!

Lodismel
01-24-2014, 11:32 PM
I think that the best bet in your situation is to just let time sort it out unfortunately. The only alternative is taking out loans that likely have a very large interest rate. I'm not sure what the exact numbers are, but I assume it takes a pretty long time to come back from bankruptcy in terms of credit score. You might have to just take whatever loan you can and deal with the high interest. It might also make sense to take loans from various sources in a smaller amount, since that will dilute the risk for the loaners and they're more likely to give you the loan.

LindaKay
01-25-2014, 11:08 AM
Time can help your credit score, and then things will be a LOT easier. How long has it been since your credit got "ruined?" Most things should come off in seven years.

Kickstarter is an option. You can also look into other funding sources. Someone who lives in your area might be willing to back you for a percentage share in your company or something.

The idea of taking out several loans might be a good one, but I'm not sure. I mean, if lenders are wary about loaning to you in the first place, they will become even more wary when you have multiple lines of credit out, ya know?

Do you have any friends or family members who might help? They could either help you get started, or you could ask a parent or someone to cosign with you on a loan. You also say that you're in the military...are there any programs out there for military members/veterans?

gHiros
01-26-2014, 01:24 AM
If you have bad credit, then it will be close to impossible to get a business loan from brand name banks. However, there are programs on the web, such as the Lending Club or Prosper, in which investors are willing to put up the cash to get your business off the ground. Of course, you'll need to convince the investors to invest in your venture by presenting your vision and a well thought-out biz plan. Note, you will need to pay back the loan over a period of time. However, unlike some loan-shark operation, the Lending Club or Prosper will not have ridiculously high interest rates. To show that you are serious, you should try to incorporate your business.

DomDom
01-26-2014, 05:18 AM
I think the best solution for your situation is actually an investor and not a creditor. find someone who likes your idea thinks it can be succesful and wants a piece of the pie. Something like business angels (Shark Tank :D ). The main thing is your idea, charisma and the belief you have in it. If you decide to take this route prepare yourself really well and make a great presentation. You never know who can join you (maybe even some family). Good luck!

novasparker
01-26-2014, 10:32 AM
It is possible, but it also depends on what type of business you are trying to start. A service based business may be more up your alley since a retail business usually requires the purchase of a lot of inventory as well as setting up a storefront. Service based businesses can be run out of your home and usually require less cash to start. Internet businesses can be the most cost effective. The idea here is that you use cash wherever you can to start your business and work towards building your credit. You can use crowdfunding sources like Kickstarter to help you. You might also be able to take advantage of peer to peer lending sites as these rely less on your credit situation. It can't be really bad, but it's more flexible than more traditional financing solutions.

jfab
01-26-2014, 07:47 PM
This is indeed a problem. Although yes, there is always hope. You can try doing loans from some other institution. You can always go for crowdfunding as well.

jubvman
01-29-2014, 02:11 AM
There are definitely many ways to start-up a business without a line of credit. You don't state which business you're planning on starting, but I have started businesses with less than £100 (and had a big ROI).

I'm also planning on starting a chain of gyms next year so I've created a website which should help me bring extra publicity to the gym when it's open, maybe you could do something like this? If all else fails, there is always kickstarter.

Good luck!

novasparker
01-29-2014, 10:04 AM
Crowdfunding is a great way to raise cash. Kickstarter is just one option. Indiegogo and others allow you to pitch your ideas to the masses and lets them get involved with your business. You can use social media to promote it. You can also try peer to peer lending sites. They might be able to provide you with some funding options as they are somewhat more flexible about credit terms than banks.

sylviakanash
01-30-2014, 08:57 AM
There are so many sources of funds. But before even thinking of borrowing funds I would advice that you have a good and well planned business plans. Come up with the exact amount of money that you will need and then account for each and every coin. That way you will increase your chances of receiving a grant. There are several Organizations that offer grants.

blaze4545
01-30-2014, 09:34 AM
There is very likely to be some hope, however it will be a long and hard journey. Since you do not have the best credit, you will not have much choice of getting loans. You are going to be severely limited to the number of offers you get from those willing to loan to you. They will be loaning to you at either ridiculously high rates or will not give nearly enough. You might be better off just getting a job and working off some of your loans and start to establish good credit again. However, if that is not an option for you then you will have to just deal with the high interest loans.

Bakerpat
02-01-2014, 07:02 PM
In the financial down turn many people desiring to start a business have turned sources for help to raise money such as crowdfunding, and money others that will give a person with a good idea regardless of credit the money they need to move forward. These sources are online and just maybe what you need to get your business funding.

Look for a partner that has money, you have the idea or work experience for the business, the partner has the money.

averycagle9595
02-03-2014, 06:03 PM
There are many factors that come into play here. First of all, in dire economic times such as these, there might be a little more leniency since credit on average is worse than it is during times of economic prosperity. There's also the issue of what type of business you'd like to start. Some businesses could be successfully started with worse credit than some other types of businesses.

canon_fan
02-03-2014, 11:04 PM
I don't have the best credit in the world, but I was lucky in that I didn't have to take out any loans or anything. The money I got was self-generated, and I didn't go into debt. If you can pull that off -- and not all business can -- that might be your best bet.

mikka254
02-06-2014, 04:17 PM
You say that you know the business inside and out. This is what I would suggest. Fine tune your business idea and get someone to help you to formulate a business plan that shows the estimated profit pattern that you expect. Investors aren't as nice as you might think. The only reason an investor will give you any money is if they see a way of getting their money back with profit. So a good business plan is essential. Once you do so, try getting seed capital or angel investors. If it's a business idea that you want to remain private, make sure you patent the idea or business name because some investors are also hyenas looking for the next ideas to steal. However, if it's a recipe or something medical, do not patent it just yet because you'll have to release your recipe and you do not have the resources to mass produce before anyone else. Long story short, formulate a business plan. Even banks will try to help you out if they see potential with your business idea. And don't be afraind to start small, perhaps you won't even need the banks.

Bonyi
02-07-2014, 05:01 AM
It is not wise to start business on a bad credit except you want to get into debt. I will suggest you get money or funds from
1. Savings- you should be saving from your service
2. Friends, relations and loved ones- those who are interested will support you
3. Get your colleagues that are interested in contributing certain amount of money for a certain period of time- may be three or six months and then you people can arrange how you people will be taking turns to receive the contribution each month.

novasparker
02-07-2014, 10:35 AM
Yes, you can find financing, but you are going to have to be willing to be creative to do it. Folks with bad credit won't be able to find traditional financing through a bank or credit union since they are primarily credit score based. However, you can go through crowd funding, try some peer to peer lending options like Prosper, you can try getting a loan through a friend or family member or find another way to make the cash. You can go to high risk lenders, but this is going to be expensive and can be risky if your business doesn't pay off.

SVPTiana S.
02-12-2014, 08:20 AM
If you want to take an easy way you can always try your hand at MultiLevelMarketing. It's exactly what you're looking for as far as you still serving your country and tuning your business part time. We had a young lady by the name of Tiara Joseph (Military Officer) that is actually in this company as well and has hit a position where as soon as she retires from the military she will not have to look for another job! For my virtual business card text "MyPlanB" to 55255 and all my information will be texted to you if you were interested!

karmaskeeper
02-17-2014, 12:59 AM
Lots of useful information here. I read these post and gained a good bit of knowledge on ideas and solutions for anyone looking to fund a small business.

DwightDuncan
12-06-2014, 04:50 AM
There is always a hope if you have dedication. If you have bad credit score don't worry repair your credit score or you can apply several other methods to start your business.

elisagrace
01-02-2016, 01:24 AM
Hi kefloyd1980,

There are different resources available, from where you can take the fund for startup even with bad credit such as bank loans, micro lenders and web based lenders.

Thanks!!

vera27
01-10-2016, 10:11 PM
well said! exellent advice in my point of view

ArnoldH
01-26-2016, 09:23 AM
Hi kefloyd1980,

There are different resources available, from where you can take the fund for startup even with bad credit such as bank loans, micro lenders and web based lenders.

Thanks!!

Can you recommend few resources?

BusinessLoans
01-26-2016, 08:07 PM
I write unsecured business loans, how much are you looking to borrow?

mysuccess101
01-29-2016, 06:30 AM
Low score isn't something you can run away from, and even if you avoid it, it won't go away. The trick is to fund your business in ways that actually get your score back on track so when you're ready to move your business to the next stage

HassleFreeAdvances.com
03-08-2016, 01:14 PM
Not much if you need financing. The only option is to work and start part-time. It also depends on if you need facilities and inventory.

fillidave
05-31-2018, 05:53 PM
There is still hope to obtaining a loan, even with bad credit. I would check out the US Small Business Association, a good article explaining how to go about it, link: http://b7y.us/FORBES_SBAloanHow2

ThomasJone
06-04-2018, 05:53 AM
feel just as I am being cut in the back by my own particular nation (which I serve). Workers, which happen to be minorities can go to my nation with no credit at all and get all the money related support they require, however I need to ask and argue. I am completely positive that my business will succeed. My strategy for success is at present underway, however I would be upbeat to demonstrate to you a duplicate once I am done in the event that you might want to give me any useful feedback.

Chris_Tax
07-29-2018, 03:54 PM
I would worry more about your business idea. You need to stand out. THere are ways to improve your Fico score but this takes time

hydroliclzsuprxxssssz
09-15-2018, 03:25 AM
You don't state what sort of business you are attempting to get financed. This is essential. In the event that your credit was demolished as a result of a separation, at that point you may require a hard cash loan specialist (charges more in shutting expenses and focuses) or a private financial specialist. Most banks need to see guarantee and a leave system on the off chance that you can't pay the credit back. In the event that you have just a smart thought however nothing else - it will be difficult to get cash from any subsidizing source.

hydroliclzsuprxxssssz
09-15-2018, 03:28 AM
You don't state what sort of business you are attempting to get financed. This is vital. In the event that your credit was destroyed as a result of a separation, at that point you may require a hard cash moneylender (charges more in shutting expenses and focuses) or a private financial specialist. Most moneylenders need to see insurance and a leave procedure on the off chance that you can't pay the advance back. On the off chance that you have just a smart thought yet nothing else - it will be difficult to get cash from any financing source.

BFT PUMPS
03-04-2020, 11:49 AM
It's not easy to find money to start a business if your personal credit is bad but if you manage your time and focus on your goal and make some good planning you will be susscessfull.

totalsolutiontrust
04-02-2021, 08:36 AM
Building business credit without first using the backing of your own social security number, can be difficult and time-consuming. There is always hope to start a business with poor personal credit. There would need to be a strategic plan in place.

I am Lauren, a credit counseling specialist and I help people in this kind of situation. CHeck me at my website (https://totalsolutiontrust.com/), I might give you a free credit strategy (https://totalsolutiontrust.com/book-appointment).

homeocare
04-03-2021, 12:44 AM
thanks for sharing with us

lishmaliny
05-04-2021, 10:44 AM
While it may be difficult to get an unsecured business loan for people with bad credit, it is possible with a higher interest rate.

homeocare
05-04-2021, 12:29 PM
Thanks for Sharing with us

LouieK
05-04-2021, 05:13 PM
this is sound advice that is often forgotten. Write / review / edit / re-write your business plan - going through the process solidifies your assumptions so that when you do find yourself in front of a lender, you're ready to put your best foot forward.

homeocare
05-05-2021, 11:45 PM
thanks for sharing with us

lishmaliny
05-20-2021, 10:28 AM
Yes. In fact, some online lenders and nonprofit lenders cater to new business owners with bad credit. However, loans for borrowers with bad credit tend to carry higher interest and have shorter repayment terms compared to traditional business loans.

raviseo120
05-21-2021, 03:06 AM
thanks for sharing with us

Shubhamdada
05-21-2021, 12:16 PM
And if your credit is poor, you should open a company checking account. Here's how to do it.
If you're eligible for a business checking account, it depends on your credit score and past banking background.
ChexSystems is a credit rating service that grades people for how well they handle their checking and savings accounts.

When it comes to opening a company checking account, business owners with bad credit have choices.

This post is for business owners who want to open a business checking account but don't have good references.

If you're starting a business, visit https://futurebusinessplan.wordpress.com/ .and need to open a bank account, you may be wondering how a bad credit score would change the procedure or perhaps whether you'll be able to open one.

The bank will run a credit check on your business.
Banks will confirm your past financial and credit history in a variety of ways as part of their due diligence.
According to Tevis Verrett of Triumvirate Advisors, "opening a small business account is actually no different from opening a daily checking account."

If you've had disputes with a previous bank, you'll need to resolve them before starting a new account.

"The financial institution would most likely be a ChexSystems subscriber," Verrett predicted. Account applicants who "have fallen afoul of another bank" will be unable to open another account until their ChexSystems ranking is resolved.

SusanneZoller
05-23-2021, 01:53 AM
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shunny0007
05-28-2021, 01:59 AM
It is unlikely that anyone will provide credit, or VC unless they see evidence of likely success. You need to provide that in the quality of the plan you produce.

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raviseo121
05-28-2021, 11:50 PM
thanks for sharing with us

RaniaRanii3
05-29-2021, 12:55 AM
Is it conceivable to get a startup advance in the event that I have terrible credit? Indeed. Truth be told, some online loan specialists and charitable moneylenders take into account new entrepreneurs with terrible credit. Be that as it may, advances for borrowers with terrible credit will in general convey higher intrigue and have more limited reimbursement terms contrasted with conventional business advances.

Borderdec
06-10-2021, 01:38 AM
It's going to be difficult because banks or any other credit organization don't wanna mess with people who have bad credits. So, it's going to be hard for you to get some money for your new business. And honestly, I don't think you should open a business until your credit story is fixed. Anyway, you should consult your solicitor or mortgage broker because the rules can be different in different banks or financial organizations. For example, my buddy was able to get a loan at https://www.yhdistalaina.com/pikavippien-yhdistaminen/ even though he had a bad credit history. But once again, do you really believe the time has come to open a business?

boodysculp
06-17-2021, 02:34 PM
Thanks for sharing with us

raviseo121
06-17-2021, 11:06 PM
Thanks for sharing with us

homeocareclinics
06-18-2021, 03:34 AM
thanks for sharing with us

AarushiAashi
06-19-2021, 12:22 AM
Sometimes, even new companies with terrible credit might have the option to fit the bill for a SBA advance. One choice for new organizations is the SBA Microloan program, which allows you to acquire up to $50,000. A few moneylenders require a base individual FICO rating of only 545, despite the fact that you may discover some needing at any rate 620 to 640.

Bigil
07-22-2021, 11:02 AM
It will be very difficult, but the start point will be the same: a detailed and convincing business plan.