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How to Start a Business Even with Bad Credit

If you have bad credit you may think there is no way you can start your own business. This isn’t really the case at all. Of course it may be a little harder, and you will have to be diligent in managing your finances, but there are business financing options even when your credit is not the best.

Finance Yourself
This requires starting small for most people. It may mean working mostly online or from your home in the beginning. It might mean you do all of the work yourself to start with, and you may have to sell some things to raise money for the materials, supplies, or equipment needed to get started. As you begin to make a profit, you can reinvest in the business and slowly begin to grow. Depending on the business, you may be able to grow debt free and when it is time to make a big leap, your business may be able to support many business financing options on its own.
Take on a Partner
If your credit isn’t great and you really need a loan, consider taking on a partner. If your partner has good credit the loan will be easier to get, and you can run the business together. There is also the option of a silent partner, meaning you simply share debt and profits, not responsibility for running the business.
Personal Asset Loans
If you have any assets, like a home, a vehicle, a boat, jewelry, or anything else that could be used as collateral, you may able to get some loans for business even with a lower credit rating. Issues with terms and rates may still have to be worked out, but the chances of obtaining financing with a personal asset to back it up are much better than they would be otherwise.

This article was originally published by Biz2Credit

Published: May 27, 2015

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Biz2Credit.com is an online, small business platform that matches entrepreneurs with credit solutions based on their business preferences in a safe and price-transparent environment. Biz2Credit is a market leader with more than 1,100 lenders, over $800 million in funding, and over 1.6 million SMB users in the U.S.

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