Bad credit doesn’t have to block your new business
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Entrepreneurs start their journey with nothing but an idea, a dream and the will. But without funding? All of this can only take you on a frustrating journey around this simple truth: “Money answers everything”.
This is where the financing options are to be considered if you are in this very bad credit situation.
Related: Funding Options For Bad Credit Risks
Work both with family AND friends
It hurts to know that the age-old epicenter of capitalism (ie “banks”) will not stand in the way of your request for funding. However, knowing that no one is rooting for your success like those closest to you can be a huge asset.
Review your relationships and reach out to the people you are closest to. You will be amazed at how much you can collect in the process. You just might find yourself a more experienced and better co-founder. (With a built-in network.)
Grants grant dreams
Invented in the 19th century, Industry Grants now provide up to $ 500,000 in assistance to finance small businesses. Just search the Grant.gov website for the one that’s right for you. Every dollar counts when the banks aren’t on your side.
Beware of micro-lenders
There are instant approved credit providers who might offer you money to spend without checking your credit history. Unfortunately, they come with very high interest rates. Do you have a very bad credit rating? Think twice about this option. Nevertheless, one remains when most of the other routes have been exhausted.
Related: Debt Is The Tiger That Will Eat Your Business
Resuscitate your dignity
Make it a priority to review your credit reports and find the area of your finances that needs special attention. Find out what aspect, when it improves positively, could have the biggest positive impact on your score. Then, focus your efforts on this aspect of your financial life. John Ulzheimer, a former FICO and Equifax staff member, calls this the “triage process”.
Related: 5 Easy Ways To Improve Your Credit Score And Help Your Business
In 2020, cards were charging up to 3.5% fees on each transaction. Considering the volume of your annual transactions, you could save a fortune by using options with little or no charge.
For frequent small expenses, you may want to consider using the benefits of CashApp’s toll-free transactions. Take the time to do your research and consult professionals for advice.