So you have a brilliant idea and a fantastic business plan. But the banks won’t even listen to what you have to say because of a smudge on your credit. Luckily, major loans from financial institutions aren’t the only solutions for entrepreneurs with low or bad credit. In fact, they are not even the first solution of most new businesses now. A recent study shows that only 25 percent of new businesses actually seek out credit card and bank financing. Now there are faster, less restrictive methods to getting the startup money that you need to get your business off the ground.
Friends and Family. This isn’t a new method per say, but it is one that has increasingly worked over time. Now that the economy has bounced back, people have a renewed faith in small business. This extends to your friends and family as well. And since they know you, they might be more inclined to invest.
Talk to the Credit Union. This has increasingly become a popular option. Credit unions are more generous to members in good standing. If you are already a member of a credit union, this dedication to member support could give you the money necessary to launch.
Small Business Loans. Generally, you won’t have to jump through as many hoops like you would with a regular financing institution. The U.S. Small Business Administration has a program specifically geared toward entrepreneurs. Check them out to see if you can get some federal cash.
Crowd Sourcing. The internet is a wonderful thing. There are many websites now dedicated to raising money. Fundable, Kickstarter, and GoFundMe, are just a few popular choices that allow business founders to go directly to ‘the people’ and make a case for their ideas. Some businesses have been able to generate hundreds of thousands of dollars this way.
Microlenders? This is a newer option that can have a big impact. Small loans from microlenders range between $3,000 and $35,000. These organizations specialize in lending to small businesses and startups. The qualifications for microlenders are far less strict than for traditional lenders.
The people of FAM can give you the seed money necessary to get your business off the ground. FAM specializes in bad credit business loans and has the necessary structure and resources to support entrepreneurs through the startup process, and to help them manage a successful company in the future.