When it comes to having bad credit, you need to know that there are ways that you can still get funding for your business venture. You probably already know that bad credit isn’t going to make it easy—you’ll have to look at more nontraditional options for funding. Traditional options such as banks and credit cards will charge significantly higher interest rates for customers with bad credit, making those options avoidable if possible. You want to make sure that you choose a lending option that makes sense and gives you a leg up on the competition. There are plenty of merchants with a bad credit merchant account from a credit card processor such as eMerchantBroker.com. Here are some of your options for lending if you have bad credit:
Look past banks and credit cards—the traditional options might not work for you
Traditional banks and credit cards are going to charge you a very high interest rate if you don’t have great credit. It is best to avoid them if your credit isn’t up to par.
Ask your close friends and family
This might sound cliché, but your friends and family are often willing to help, and you’ll probably get a much better rate than at a bank. Make sure that you draw up a contract so that both sides understand there is a formal agreement.
Online lenders are a great new option
Online non-bank lenders are now offering loans between $5,000 and $25,000 to those looking to start a business or complete a new project for their early stage company. Make sure that you compare rates between online lenders. Some sites such as prosper.com, zopa.com, and americaonefunding.com offer funding options for business owners and entrepreneurs.
With all of these options available, you don’t have to turn to banks or credit cards and pay a high interest rate to get your project financed. Make sure that you carefully evaluate your options so that you don’t end up spending more than you need to on your next project. Getting financing is definitely possible, no matter what your credit score.