How do I find financing for my natural health business with limited income and not great credit?

Answer 1

If you are talking about a small business loan from financial institutions and you have low credit score, your chances are a little tight. You must have collateral and equity investments poured into your business.

You can read here the requirements of Small Business Administration for the small business loans that they guarantee http://www.sba.gov/financing/preparation...

1. Equity investment
2. Earnings Requirement
3. Working Capital
4. Collateral
5. Resource Management

Collateral can be personal and business assets such as house, receivables, stocks and bonds, furniture and fixtures, among others -- that can be sold to pay back the loan. Collateral provide banks with the assurance that they can get their money (or at least parts of it) back, even if you cannot pay. Even SBA-guaranteed loans as well as micro loan programs require some form of collateral to secure a loan.

If you do not have collateral, you will need to have a co-signer who has collateral and can pledge to cover your loan in case you default on payment.

Here is an excel spreadsheet of SBA's lending partners http://www.sba.gov/financing/lendinvest/plplend.xls

Answer 2

To get started, I suggest contacting the Small Business Administration Financing Page (SBA) – links below. Entrepreneur also offers a great site dedicated to money & finance – see below.

Research, research, research – this cannot be stressed enough. Read as much as you can. Here are some book titles that are relevant:

* Free Money for Small Businesses and Entrepreneurs by Laurie Blum
* Finding Money: The Small Business Guide to Financing (Small Business Series) by Kate Lister, Tom Harnish
* Financing Your Business Dreams With Other People's Money: How and Where to Find Money for Start-Up and Growing Businesses by Harold R. Lacy
* No Cash No Fear: Entrepreneurial Secrets to Starting Any Business with No Money by Terry Allen
* Starting on a Shoestring: Building a Business Without a Bankroll by Arnold S. Goldstein

There are plenty of free informational resources out there. Check the source box for links to articles.

Hope that helps! I wish you much success & happiness in all your ventures!

Answer 3

What you need to do is:
build good credit
increase resources (money)
educate yourself

You can start by getting a job at a store that sells natural health goods and use your pay to lower your debt and start saving money (this can help your credit and start a business fund). Also, this will give you experience as to what it will be like to deal with customers and learn what can go wrong. Also, you should take business classes so you'll be better prepared financially.