Getting a new business off the ground is a tough thing to do. Even with a perfect credit score, banks are much more cautious about lending out business loans these days. You’ll need much more than an amazing credit score to get approved. A thorough business plan with proof of concept and details about how income will actually be made is necessary for most business loans. However, what if you have all of that, but a poor credit score?
Launching a business with a poor credit score may seem impossible, but there actually are ways that you can make it through the first few years. We have gone over a few factors that will allow you to launch your business even with a bad credit score.
Get a Cash Advance
Many high risk lenders are capable of offering a business cash advance bad credit score loan. This basically allows people with poor credit scores to be accepted for cash advance loans by proving the concept of their business. First American Merchant for instance, is capable of getting most new business owners approved even if the credit score is bad. However, beware that interest rates will obviously be slightly higher than getting a bank loan with an excellent credit score.
Consider Starting at Home
Can your business be launched from home? Obviously you want the big office space with the Xerox printers and the cute secretary, but can you wait a couple more years before getting there? If you can launch your business from your basement and achieve results, do it. Don’t waste money on an office space if you can get by working from home. The first years are crucial and you’ll need to save anywhere you can.
Avoid Unnecessary Purchases
The first thing you’ll want to do when launching your business is probably invest in high quality tools and equipment. However, you should avoid it at all costs. Remember the old saying “If it ain’t broke, don’t fix it.” Well that applies right now. Lets say you have a computer that’s in working condition, keep it and use it for your business. Don’t go out and buy a 27” Apple computer for $3,000 if you already have a computer that can achieve the same results. Save everywhere you can and you’ll essentially be making more money.
Don’t overdo it by taking on too many clients too soon. Get just a couple of clients and satisfy theirs needs to the fullest. Make sure that they are so happy and satisfied with your services that they will remain long-term clients for years to come. This will allow you to save money by not having to hire additional employees, plus, you’ll be creating a long-term income. Once you have gained the trust of a few clients, take on a few more and repeat the process, whilst remembering about your first clients. Once the job becomes too much to handle, then you can hire an additional employee to help you out. The goal is to ensure that your clients will stick around. Don’t rush into things because this causes many clients to drop out and seek your competitors. The key is to always treat each client like they are your one and only client. Treat the loss of a client like it’s the end of the world.Get Started Now