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Being your own boss demands quite an effort, and money is the basic requirement that every small startup business loan with bad credit needs for smooth business operations. In fact, statistics show that 22% of startups fail within the first year and 30% of these failures result from the lack of money.<br>Read more at: https://www.sba50k.com/5-top-options-for-a-startup-small-business-loan-with-bad-credit/
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5 Top Options For A Startup Small Business Loan With Bad Credit learn more at: www.sba50k.com
5 Top Options For A Startup Small Business Loan With Bad Credit “Can I get a startup small business loan with bad credit?” This is one of the most asked questions by entrepreneurs having poor credit ratings. Being your own boss demands quite an effort, and money is the basic requirement that every startup needs for smooth business operations. In fact, statistics show that 22% of startups fail within the first year and 30% of these failures result from the lack of money. Getting money from traditional lenders is a challenge as they have strict eligibility criteria that includes credit rating, years in business, annual revenues, and more. But don’t worry. You can always kick start your business operations by obtaining the required capital, even with bad credit. There are various financing options other than traditional loans that can help you get quick, reliable funding for your startup. Below is a list of five top start-up financing options other than traditional lenders to get a quick loan- with bad credit. 1. Friends and Family Borrowing money from your friends and family is one of the most convenient ways of financing a new small business. However, they may hesitate to lend you money if you have bad credit. You’ll have to convince them that you’ll pay back the loan on an agreed time period.
2. Crowdfunding Crowdfunding is a popular way of raising money for small businesses. You can opt for online reward crowdfunding where you can give donors gifts instead of paying them back. However, crowdfunding is a time taking process and you may find it hard to convince donors to contribute toward your campaign. 3. Merchant Cash Advances Merchant cash advance offers you quick capital funding in the form of a lump-sum amount without affecting your credit rating. You don’t have to pay back the loan on a fixed schedule, rather you pay a percentage of future credit card sales. However, cash advances come with high interest rates, making them an expensive financing option over the lifetime of a loan. 4. Credit Cards You can use small business credit cards for funding- with signup rewards and other bonuses on business purchases. Many cards offer no annual fees, but others might limit you to secured credit cards- having higher fees- if your credit is not stellar. It means that credit cards can be an expensive option if you have bad credit. 5. **SBA loans and Microloans**
A microloan program offered by the U.S. Small Business Administration (SBA) offers loans of up to 50,000 for startups, small businesses, and also non-profit child care centers. Flagship 7 (a) loan program by SBA offers loans to startups to help them start a business. The best thing about SBA loans is you get financing from trusted, reliable government funding sources. You can get a loan at competitive interest rates even with bad credit. Various online lenders can help you get SBA loans by connecting you with an intermediary lender in your local area, making it easier for you to apply for a loan. If you wish to apply for an SBA Microloan, Sba50k.com can help you. They not only help you find a local lender but can also prepare a business plan for you and submit information to the lender on your behalf. Click here to get in touch with Sba50k.com. They have been helping people get SBA Microloan’s for over 10 years. They can increase your odds of getting approved by 68% They will show you how to cut through all the RED TAPE!
