It can sometimes be very difficult to secure the funding you need to get a business off the ground when your personal credit score isn’t very good.
If you don’t happen to have family or friends who can infuse cash into your business, there are some other possibilities for overcoming your cash shortage, and getting your new business started up successfully.
There are a number of very small credit unions in this country which specifically seek out growing businesses, even if those businesses have been rejected by conventional lenders, and even if your credit score is low. Such credit unions are often non-profit organizations, and are often sponsored by the SBA. Being very familiar with the challenges faced by startup businesses, these micro-credit unions are sympathetic to your cause, and might provide you with the solution you need.
Social lending alternatives
This is a relatively new source of funding which a business owner can secure by browsing through the numerous social lending sites online which provide funding to each other, and which are not particularly concerned with your credit score. An additional benefit to securing social lending is that interest rates are generally lower than they would be for a traditional loan from a bank.
Use your business assets
After a startup has been in operation for all year, it’s no longer a startup, but becomes a legitimate business. During this initial year, your business should have generated some financial assets, and these assets might possibly be useful in providing the funding you need for business operations.
Almost all small businesses need various types of equipment to help them grow, and to help them get to the next level of operation. This could be standard equipment like computers and accessories, or heavy machinery which is essential for running your business. Equipment lenders are available everywhere to provide funding for this essential equipment, and they are often very flexible in providing terms which your startup company can manage. Your credit score won’t matter as much to an equipment lender, since the equipment itself serves as collateral.
Is your credit score preventing you from securing needed funding?
If so, we may be able to provide the financial assistance you need to keep your business operating smoothly.
Contact us at Safe Harbor Commercial Capital so we can consider together some alternatives for funding your business, and restoring your good credit.