Can you get money to start a business if you have a significant amount of personal debt?

Question

My credit is good (although not excellent, just because of the amount of debt....not because of delinquencies)

Answer 1

I wouldn't reccommend starting a business with personal debt, without an emergency fund, and wouldn;t use credit to get it started.
You'd be setting yourself up for a disaster.

But to answer, yes I am sure you can through a variety of means. They will give lines of credit to household pets and the dead.

Answer 2

if you have a lot of debt, getting into more debt (basically doubling down) probably isn't the best idea. that doesn't mean you can't start a business - it just has to be service oriented so the investment is in sweat and not dollars. If you set up an LLC or a new company (this isn't expensive either) you can also try to start generating credit under the company (although initially, they will look to your credit and guarantee of the debts). Once you start a company and demonstrate to local small businesses that you are good for the money, you may find that they will start letting you run a tab or pay 30 days later (net 30) after you receive an invoice for them. It isn't everything but it is a start.

Good luck.

Answer 3

Yes you can...also depends on what type of business you are setting up though.

If you are establishing an LLC I believe this type of business protect your personal assets so therefore if the company goes into bankruptcy no business creditor can come after you personally only the business.

For starting up a business I would suggest you speaking to a CPA because they might be able to help in tax planning and being able to establish yourself as an LLC.

Answer 4

I want to know the answer to this question too and I have less chances than u my credit is terrible but I am exploring applying to federal grants for free money from the government to help one get started.