In some ways, there has never been a better time to try and start a business than today, even if you are saddled with a poor credit rating. Due to an explosion of private lenders who are willing to take a chance on people with poor credit, it is prime time to find start up business loans with bad credit.
Start-Up Business Loans on the Internet
The huge increase in the number of people working through a variety of micro-lending websites represents a perfect storm for people with bad credit that want to launch an enterprise. The Digital Age has made it easier than ever for us to contact people around the globe who are offering funds, and for those seeking cash to contact lenders.
The newest generation of people with money often does not want to simply live for money. They have a powerful do-gooder instinct that makes them wide open to help people who share their entrepreneurial spirit. In short, it has become very cool to do good.
These wealthy people have first looked abroad to see whom they could help with micro-loans to start businesses. As they have gained experience in that, they have discovered many people in their own, industrialized countries who need money just as badly.
This creates an ideal recipe and environment for obtaining start up business loans. There are a plethora of sites where you can log on, explain your need, and share your vision. If you are fortunate, you will have several people bidding to lend you money, driving down the interest rates that you will have to pay in the process.
How to Play if You Have Bad Credit
Many of the players in the now multi-billion dollar industry of micro-lending will give you a small loan and then disburse larger amounts as you prove to be credit-worthy. Some in this new wave of lenders will even get you coaching on financial management and business development, which is in their interests as they give loans to people with bad credit.
To have the best chance at snagging a business loan with bad credit, follow these steps:
- Start simple by choosing one idea/product that you can sell quickly, not 15 products.
- Give a good estimate of what your start up costs will be. Be sure to include advertising and payment processing in this figure.
- Be prepared to detail precisely where you will spend the funds obtained from a loan.
- If asked for a business plan and projections, be prepared with them.
- Know your target customer, because micro-lenders will ask!