Originally Posted by ccoughlin
Hello everyone! I have a fundamental question about how to get my business started. I believe I have a solid idea, but I will need funding to get it off the ground. My personal credit history and score is not that good, I made a lot of financial mistakes when I was younger. I am confident there must be a way to get funding for a business in this situation, I can't be the only person around with bad credit who wants to start a business! Any ideas? Anyone out there with a similar situation? Are there institutions out there that would take a risk on a person with bad credit if the business idea and plan are solid?
Suprisingly enough, most smaller Angel Investors don't check the credit rating of those whom they invest in.
However, here are the ways most new ventures are funded. Can you do any of these?
--Friends and Family. Do you have friends and family who can invest in you?
--Credit Cards. Now you say you have bad credit. How bad is it? Talk to your bank and see what they can do for you.
--The Small Business Administration offers a number of Loan Programs in many areas that are not based on credit. (Many ARE based on collateral, so you may have to put up your car or home as an holdable asset.)
--Grants. This takes longer, but it's possible to get the funds and not pay it back. Look into Grantwriters in your area. (A Freelance Grantwriter will put together the application for your Grant- and if you are accepted and paid, the Grantwriter gets a portion, usually 10%.)
Hope this helps.