Starting a Business with Bad Credit: 5 Ways to Get Started
by Arina Smith Starting a Business 04 February 2019
You’ve spent your life in a boring nine-to-five job and want to branch out into your own business. It’s a dream you’ve been chasing for a long time, but you’ve made mistakes along the way.
You don’t have a lot of savings and your credit score isn’t great. It’s not easy starting a business with bad credit, but you can do it. Small businesses are important to the economy, no matter your credit score.
Don’t put your dream of professional independence on hold anymore. If you want to know how to start a business with poor credit and no money, then follow these simple tips. People strive for professional and financial freedom — and you deserve it.
Starting a Business with Bad Credit Is Easy through Crowdfunding:
If you have a great product but need capital to create it and start your business, then consider crowdfunding through sites like Kickstarter. You create an account and set a fundraising amount and then work to promote your idea and build your brand.
In return for funding your project, you provide people with rewards depending on how much they donate. For example, you can offer discounts once the product is live.
If you reach your goal amount within the allotted time, you receive the money.
The only downside is that if you don’t reach the goal, you don’t receive anything. Many successful businesses started using crowdfunding for initial capital.
Build Your Credit Score and Then Start Your Business:
If you have bad credit, it can be difficult to get a loan to start your business. You can build your credit score by taking better care of it or by paying off existing debt and using credit cards responsibly.
Get a higher interest credit card designed for people with bad credit. If you limit the spending and pay the balance on time, your credit score improves. To learn more about these credit cards, go here for details.
Once your credit score improves, you’ll have better luck getting a bank loan to start our business. You can even save money by running your business from home.
Seek Out Investors:
If you have a great idea, a sound business plan, and data to back up your statements, then you can try finding investors. Unlike banks that care about credit scores and credit history, investors care about making money through the business.
If you can convince them your idea has merit and there is a high likelihood of profit, they may give you the funds you need. Your credit score has little or no impact on their decision. They want cost and profit projections, fresh and innovative ideas, and a business plan.
Don’t Be Afraid to Take a Chance:
It’s hard to leave the safety and security of a full-time job, especially when you have little money to launch your own business. If you want to know more about starting a business with bad credit, then these tips should help.
For more advice on starting a business, check out this post. We’ll give you the information you need to decide whether or not you should register a trademark.