Even with poor credit, you may be able to get loans to help fund your business. There are lenders who will lend to those who have less than stellar credit as long as they have a solid business plan and can reflect on paper, how they intend to repay the loan. Here are some tips on how a business, even one with poor credit, can rebound and get the money that they need in order to not only maintain but also to grow their business:
1. Implement Growth On Paper
- Have a solid plan for growing the business, making more money and repaying the loan right on paper. Indicating just why you need the money, how it will help your business and how you intend to pay it back will help you get a loan.
- Offer a projection of estimated profits for the business over the course of the next two years that will enable you to repay the loan.
- Have a solid marketing study that states the demand for your product or service in within your target market arena.
2. Approach The Right Investors
- Look for investors who may be seeking a venture with a bit more risk so that they can make a bit more profit. These investors can be found in networking groups as well as on the internet and may be more inclined to offer money for your venture, even if you have poor credit.
- Look for foreign investors. Foreign investors are limited when it comes to buying stocks in some companies and may be more inclined to lend money in exchange for some return on their investment from a company that can prove its worth.
- Get creative when it comes to seeking investors. Instead of just going to the bank for a loan, look for those who have money to invest in the right business and approach them with your idea.
3. Credit Card Borrowing
- Although more costly than traditional bank loans, credit cards can offer a business a way to get the cash that they need at a higher interest rate.
- Look for credit cards that offer an introductory rate that is enticing. Your business can also transfer balances to these low interest credit cards in an effort to save money.
- Project how much interest you will be paying for the loan and how much you plan to profit from the amount of the loan so you know how much you can borrow reasonably while still being able to turn a profit for your business.
4. Approach Local Governments
- Seek out business grants at the federal, state and local level to see if your business qualifies for a loan. Many of these loans are for businesses that have less than perfect credit but meet certain criteria.
- Seek out your local chamber of commerce in an effort to find ideas as well as lenders in the area who may be willing to lend you money. As long as your business is welcome in the area, the chamber of commerce will be inclined to want to help you get the cash that you need.
- Seek out private investors in the area as well. Being involved with the municipality in which you conduct business offers many advantages, including the advantage to find those in the area who may be more than willing to help your business succeed.