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How do i raise capital for starting a business with a bad credit history and no equity or wanting a partner? |
How do i raise capital for starting a business with a bad credit history and no equity or wanting a partner? Starting a business means you need to have a plan. It's the first step. Once you have a plan (Business Plan), you can present it to any potential buyer (bank), who would then possible loan you the money you indicated on the Business Plan that you need. Not always they will loan you it, however having a plan, has them to know what you're after, and how you are going to pay them back. Small Business Loans are the best way for you to get the money you need to start your winning fortunes up. Try to start your business without a loan. It can be done if you start slowly. Suppliers will give up to 60 days credit on stationery etc so you could do it. See if you can get the history brought up to date when perhaps you are not so bad. I did all this and set up a business and with the help of suppliers I went from strength to strength. When the money started coming in I paid up all suppliers straight away and continued to pay up front with them for future supplies. I also ensured that the bank had a nice float of money in my account with plenty of throughput. My bad credit turned to good within a year. Have a go. Try local government agencies, they are lots of Governement sponsered schemes to help people in business start ups, they can also advise on applying for grants (better than loans since they don't need to be repayed) Try talking with SCORE. It is a volunteer network of retired executives. They can counsel you on small business lending qualifications as well as discuss your business model. Despite your credit you may still be eligible for an SBA loan. There are various sources of finance available - some with government support, and some with special funds for those people with viable business ideas but personal disadvantage such as you describe. Get some free, independent advice from your local enterprise agency before approaching any lenders/investors as they are impartial and not tied to any particular "product". You can find your nearest agency at www.nfea.com. Good luck! |
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