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You might think that starting your dream business with no money and bad credit is impossible. While it may require extra effort and perseverance, it’s certainly achievable. One useful strategy is to regularly review your commercial credit reports to understand and improve your financial standing. With a clear picture of your credit status, you can make informed decisions and gradually work on building credibility for your business. If you have a great idea and know where to look, you can do it in ways much easier than you think.
In this article, we will discuss 10 ways through which you can get one step closer to achieving your goals even though you are financially bankrupt! Let us get started.
1. Most important: Avoid high interest and poor terms
Most startups and budding businesses often seek the wrong kind of loans owing to their bad credit score. They instantly say yes to maxing out their credit cards or agree to the wrong kinds of repayment terms that make doing business much harder.
Thus, before committing yourself to loan terms like that, it is advised to consider every condition and make a conscious choice carefully. It is also imperative to look into an interest free credit card.
2. Talk to the people who care about you
You do not have to agree to a set of horrible terms and conditions if you have an alternative source of funding available. So before researching the more complicated methods of obtaining funding for your business, consider asking those in your family and friends who believe in you and know you best.
Some of them might be understandably anxious about lending money but be patient with them. A good way to get the ball rolling is by approaching a credit card processing company for advice on this great idea you have in mind. Ask them if they would like to pitch in or if they are comfortable with loaning you some money. If yes, do talk to them about the repayment terms they have in mind.
Sometimes, you might get the money you wanted without any repayment expectations. If not, you will at least end up with a much more generous payment plan and interest rates in comparison to the stringent terms of traditional loans.
3. Check out microloans
The road to a successful business is full of ups and downs. Sometimes you will need financial aid while sporting bad credit. In such scenarios, microloans can be helpful. There are multiple sites that offer microloans to businesses today. The amounts range from about $5,000 to $25,000 but will vary depending on the parties.
Some sites will even come forward to help cash-strapped individuals like immigrants and refugees. The interest rates, as understandable, run high. Some might even ask for about as high as 30 percent, but the inflow of money at the right time can be helpful.
4. Payday loans
Not every day would need instant money to clear some dues. Your business might be running well, but you still might be financially caught up in the moment because your income isn’t due until the next week. Trusted and secure online payday lenders like PaydayMe are super helpful in cases like these.
In fact, these sites will be willing to help you out irrespective of your bad credit history. Avail these loans and pay them back immediately after you receive your income. Otherwise, you might be levied high-interest charges as penalty.
5. Try crowdfunding
Do you really think your idea is great and are not sure about receiving credit for your startup? Did you try crowdfunding? To try crowdfunding, you can log on to a website like Kickstarter or IndieGogo and get started by creating a sales page. If your ideas and incentives are good enough to attract people, you can get everything done without having to pay a dollar back! That being said, your incentives have to be quite good, and this might cost your money. Thus, make sure that you have factored in all those costs before deciding on the request money.
6. Seek donations
Donations can be tough to obtain, but some businesses can really pull this off if they offer great value in their ideas, content, services, or product. In such cases, appreciative customers might be able to help you with enough money to at least float the boat.
7. Exchange services and goods
You might not have the opportunity to borrow money for your business needs. But that does not mean that it is the end of the road. Run a check for people who are willing to sell services and are open to barter what they do with what you do.
Closing thoughts
Take a look at your situation and see which resources you can tap into to get monetary aid. It is not impossible until you believe so. Use our tips to your advantage and turn your dreams into reality!
