Are you desperate to get a small business start-up loan?
Do you have no collateral and dealing with bad credit?
This may sound like a bleak situation to many because most lenders fail to trust start-ups in this situation. The reason is that lenders want you to prove that you can pay back the loan.
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Startup Business Loans No Collateral 2017
The lenders will also ask for your equity investment and credit history. All this information shows one thing, and that is you should not be knocking on the doors of these investors.
The best way to get small business startup loans in this situation is to be creative. We will just tell you how.
1) Searching for A Business Partner
First, you should try to come up with a good business plan.
This plan should convince an onlooker that it is worth the investment.
If the business idea appears lucrative, then it might be able to attract a business partner.
Your business partner will be the co-signer, and you can mutually agree to service of the business loan. Both the partners will be partially responsible for paying the loan.
If you decide to share the loan repayment plan with your partner, then it is also important that you should discuss the modalities of running your planned venture. There are chances that your partner might want to participate in running the venture actively, or he might trust you to run the venture on your own.
This is an ideal option when you have a bad credit and no collateral but your partner should be dependable and someone whom you trust.
2) Confiding Your Loved Ones and Seeking Their Help
Friends are usually the ones who help you in your time of need.
If you feel that no lender will give you money because of bad credit, then discuss the loan issue with your friends.
Your friends will be aware of your abilities to run a small business so they may willingly give a helping hand by giving you some money to start your venture.
If you want to seek the help of a friend to acquire a loan, then make sure that your business idea generates enough income and so that you can pay back the loan as per the decided terms.
This will help to avoid an unpleasant situation.
3) Explore the Concept of Peer to Peer Financing
Peer to peer financing is also termed as peer to peer investment.
It requires you to acquire loans from individuals rather than financial institutions.
For this, you will have to search the website of a lending company. Make sure that you go for a reputed one.
The most important thing for small business startup loans is that your business idea should address the short-term and long-term goals as well. This way you will not have to worry about losses, and your bad credit will also not become a hurdle in the way of acquiring the loan.
Take your first step towards success today and try out the mentioned loan ideas. 🙂