UNSECURED BAD CREDIT BUSINESS STARTUP HARD MONEY PERSONAL LOANS
Friday, January 20, 2017
The Equity Route
If you chose the equity route, you need to share control of your business with your investors. This prevents you from having a free hand and slows down decision making - something that can affect the profitability of your enterprise. Moreover, you have to share your profits with the investors.
Startup Business Loans
You can also decide to obtain loans to help finance your startup. However, this is easier said than done. Most banks consider startup business loans as high-risk loans. This is because many businesses fail within a few years. Bankers consider small business loans for start ups as personal loans. So if your credit history is good, you have a fair chance of obtaining the loan.
You other option is to obtain the equipment you need on lease from finance companies. Since they retain a lien on the equipment, the interest rates are low and your credit history need not be very good.
Whether you choose to obtain a startup business loan or finance from a leasing company, you need to be prepared to answer all their questions. Have the proper documents such as your company's business ID as well as your business plan all ready. Financial documents that you need will include bank statements for the past three years in case yours is an existing business and potential opening day receipts in the case of a new business. Be clear in your mind about the nature of your business and provide convincing reasons why you think that your business will be profitable.
Even if your credit history is not so good, you can obtain credit to run your startup. However, you need to keep in mind that obtaining bad credit startup loans is tougher. You have to go the extra mile to convince potential creditors of your business idea. As banks might not be in favor of lending to you, you need to approach the small business administration for getting credit business loans.
Minority and Women Run Businesses
In addition, if you are a member of a minority group or a woman, then you qualify for certain startup business loans. For this, the first step you need to take is get your business certified as owned by a person belonging to a minority group or a woman. Once you complete this step, obtaining a loan for your startup is easy.
The best way to obtain startup business loans is to convince potential creditors of your commitment to the idea and the financial viability of your business plan.
Tuesday, February 9, 2016
If you have an excellent credit score and great history, consider yourself lucky. You are one of the few and the proud. Very few people have spotless credit histories and a lot of people these days fall into the bad credit category. If you're part of this group, you might be wondering if you could ever get an unsecured loan. Thousands of borrowers are finding that they can borrow the money they need with an online unsecured loan for bad credit. What is an unsecured loan exactly? An unsecured loan is usually only given to those select few with the good credit scores. However, online lenders are reaching out and giving unsecured loans to borrowers with all different credit scores. Online lenders offer great savings and a higher approval rate. Best of all, you do not even have to leave the comfort of your own home to apply.
Online Lenders Welcome Bad Credit
People are starting to realize that applying for online loans gives them a great chance of actually receiving the loan they need. It's nice to finally get approved for once, and remove the face-to-face rejection you normally get with traditional banks. But why do these online lenders do this? They are comfortable writing these loans because they have a greater amount of capital to work with in comparison to smaller, local banks that you are likely used to dealing with. A small, traditional bank usually has very limited capital to work with. This means they are less willing to go out on a limb and loan money to everyone.
Instead, they minimize their risk by only lending to individuals with five-star credit. This reluctance to loan money can make getting an unsecured loan at your normal bank nearly impossible. After getting rejected from bank after bank, you might feel like throwing in the towel. Do not lose hope yet, though. Online lenders are more understanding of bad credit and can help you.
Use Online Competition to Your Advantage
Lenders are very competitive - and the best thing is that they are all competing for your business. You have the power of competition in your hands. There are so many lenders that want your business that they are not as worried about how low your credit score actually is. And because online lenders have less overhead as compared to customers serviced, their interest rates are usually lower than the bank down the street from your home - saving you tons of money on interest over the course of your loan repayment.
Saving Money on Unsecured Loans
This competition for your business also benefits you as far as saving money goes. You can typically find online loans written at an interest rate even lower than what a traditional bank might offer. Even a small difference in the interest rate can add up to hundreds of dollars in the long run. There is also the ease of the online application process. You have no papers to fill out, and you don't even have to leave your home. You complete the entire application for your unsecured loan online and will have a decision in minutes. You will have your money in no time, as most lenders deposit the money into your bank account within hours.