| Copyright RebuildCreditScores 2008. All Rights Reserved |
Relatives and Friends
Not surprisingly, more than 50% of all start-up costs for new entrepreneurs come from
friends and family. America thrives on entrepreneurship and friends and family desire to see
loved ones succeed and follow their dreams. If your credit is weak you are more likely to get
a short-term loan from a friend or family member because they evaluate your character, not
your credit scores. This form of lending has so evolved that there is now a website which will
help you facilitate a loan between friends and family: You pick your own interest rate and
loan terms and Virginmoney manages the loan process and drafts the necessary documents.
Private Lenders
Entrepreneurs and small business owners generally have a difficult time obtaining start-up
funding from traditional banks and venture capital firms. Private lenders may be the solution.
Private lending requires less formal processes and often have lower lending and credit
criteria. Private lending is also a good option for small business owners who do not want to
give up a percentage of ownership often required by venture capitalist and angel investors.
Private lenders look for a sound business plan to support your business venture, an
excellent contingency plan, realistic financial forecasts along with experienced business
owners who have made some kind of financial contribution to the business venture. Finding
a private lender will take some research but it can be a very rewarding journey as they often
fund business ventures the banks reject. They can also be a great resource by offering
helpful suggestions and creating a loan repayment plan that comfortably fits into your
business structure and growth plan. One website which brings entrepreneurs together with
private lenders and where you can post your project for funding is: www.gobignetwork.com
Finding a micro-lender in your state may be difficult but it is well worth the research. Many
micro-lenders are small and do not have websites; however, they can be great sources of
capital for entrepreneurs with bad credit. They offer flexible loan terms and report payment
history to the three major credit bureaus. Microloans typically range from $5,000 to
$35,000. Below are a few microlenders that may be able to offer loans nationwide.
Microloans
Peer to Peer Lending
Peer to peer lending is not a new concept but the Internet has made it easier. This type of
lending matches borrowers directly with lenders, circumventing banks and other middle-men.
Peer to peer lending is a great alternative to traditional banks’ stringent automated credit
scoring system. With peer to peer lending, a typical loan could be funded by as many as
100 people, thereby increasing the chances your loan will get funded.
Four growing companies offering peer-to-peer lending are:
Each social lending site has specific credit criteria. Peer-to-Peer lending is becoming a
viable option to bank loans. Not only are business owners who cannot qualify for traditional
loans using this option but also established entrepreneurs are finding this financing option
feasible. Learn more about Peer to Peer Lending.
Not surprisingly, more than 50% of all start-up costs for new entrepreneurs come from
friends and family. America thrives on entrepreneurship and friends and family desire to see
loved ones succeed and follow their dreams. If your credit is weak you are more likely to get
a short-term loan from a friend or family member because they evaluate your character, not
your credit scores. This form of lending has so evolved that there is now a website which will
help you facilitate a loan between friends and family: You pick your own interest rate and
loan terms and Virginmoney manages the loan process and drafts the necessary documents.
Private Lenders
Entrepreneurs and small business owners generally have a difficult time obtaining start-up
funding from traditional banks and venture capital firms. Private lenders may be the solution.
Private lending requires less formal processes and often have lower lending and credit
criteria. Private lending is also a good option for small business owners who do not want to
give up a percentage of ownership often required by venture capitalist and angel investors.
Private lenders look for a sound business plan to support your business venture, an
excellent contingency plan, realistic financial forecasts along with experienced business
owners who have made some kind of financial contribution to the business venture. Finding
a private lender will take some research but it can be a very rewarding journey as they often
fund business ventures the banks reject. They can also be a great resource by offering
helpful suggestions and creating a loan repayment plan that comfortably fits into your
business structure and growth plan. One website which brings entrepreneurs together with
private lenders and where you can post your project for funding is: www.gobignetwork.com
Finding a micro-lender in your state may be difficult but it is well worth the research. Many
micro-lenders are small and do not have websites; however, they can be great sources of
capital for entrepreneurs with bad credit. They offer flexible loan terms and report payment
history to the three major credit bureaus. Microloans typically range from $5,000 to
$35,000. Below are a few microlenders that may be able to offer loans nationwide.
Microloans
Peer to Peer Lending
Peer to peer lending is not a new concept but the Internet has made it easier. This type of
lending matches borrowers directly with lenders, circumventing banks and other middle-men.
Peer to peer lending is a great alternative to traditional banks’ stringent automated credit
scoring system. With peer to peer lending, a typical loan could be funded by as many as
100 people, thereby increasing the chances your loan will get funded.
Four growing companies offering peer-to-peer lending are:
Each social lending site has specific credit criteria. Peer-to-Peer lending is becoming a
viable option to bank loans. Not only are business owners who cannot qualify for traditional
loans using this option but also established entrepreneurs are finding this financing option
feasible. Learn more about Peer to Peer Lending.
Bad Credit Business Loans:
4 Sources for Getting Funding
by Lisa Phillips
March 2008
4 Sources for Getting Funding
by Lisa Phillips
March 2008
As we are becoming a credit driven
society, entrepreneurs as well as
consumers are feeling the negative
effects of having low credit scores.
The funding sources may be limited
for business loans when you have
bad credit but they are existent.
Surprisingly statistics show that
approximately 25% of start-up
funding for small business owners
and entrepreneurs come from
traditional bank loans and credit
cards. This means that 75% of
start-up funding comes from other
sources.
society, entrepreneurs as well as
consumers are feeling the negative
effects of having low credit scores.
The funding sources may be limited
for business loans when you have
bad credit but they are existent.
Surprisingly statistics show that
approximately 25% of start-up
funding for small business owners
and entrepreneurs come from
traditional bank loans and credit
cards. This means that 75% of
start-up funding comes from other
sources.
 |  |  |  |  |  |  |  |  |  |
More Resources
Micro Business Loans
Do you need just a little cash to grow your business try a microloan from the SBA.
10 Steps to Building Business Credit
Building business credit can be accomplished regardless of your personal credit
history.
Business Loan Sources
A little Creativity and al lot of determination can get you the money you need.
Business Opportunities
Home-based business opportunities. Earn extra income from your computer.
Do you need just a little cash to grow your business try a microloan from the SBA.
10 Steps to Building Business Credit
Building business credit can be accomplished regardless of your personal credit
history.
Business Loan Sources
A little Creativity and al lot of determination can get you the money you need.
Business Opportunities
Home-based business opportunities. Earn extra income from your computer.
With banks and credit cards taken out of the start-up funding equation, it stands to reason that
the other sources have to be less dependent on your credit history. However, less than perfect
credit is something that should not be ignored.The funding sources you seek should include a
strategy to improve your credit scores.
As your business grows you want to be on track for big bank business loans and business
credit. Here are some ideas for funding bad credit business loans:
the other sources have to be less dependent on your credit history. However, less than perfect
credit is something that should not be ignored.The funding sources you seek should include a
strategy to improve your credit scores.
As your business grows you want to be on track for big bank business loans and business
credit. Here are some ideas for funding bad credit business loans:
 | 8 Steps to Start a Business | |
| How to Structure your Business | |
| Social Lending for Business Loans | |
| Business Loans for Veterans | |
Related Topics
