Would like to buy Business but Bad credit, help?

Question

So, I have bad credit because just finished school, but I have about 50,000 saved as a down payement, I have a very strong Business plan, but have bad credit and my only asset is my car that is paid off. How should I go about funding my loan for a business that cost 400,000 to buy?

thanks guys, but I am well aware of the risk of opening a new business, this is why I am interested in buying a currently established one.

I do not any debt to clear, just previous school loans that are not in default.

I just want to know what my options are available to someone who has bad credit but otherwise is stable, Thanks

Answer 1

There are many options. The best one for you in your situation is to get involved with one that has a low start up costs and can give you returns on your initial investment within the first two to three years. You already know that with any business, the first five years is critical. You might want to seek investors for your business. So have a sound proposal. With my business, I implemented myself into a sound business plan with much less to start up than what you have saved. In a year, I've seen my initial investment returned to me, and I have had the opportunity to pay off long standing credit card debts and loans on my way to making better financial choices. I wish only the same for you. Maybe you should use some of that savings to make good on your outstanding debts, and then go from there.

Answer 2

I'm sorry, but there is no way you're going to get financing for $400,000 with bad credit and being just out of school. If you have $50,000, why don't you look for a business that would cost $50,000 or less? With that kind of money, you could consider buying a franchise as well.

Another great way to use $50k is as a down payment on your first house, but you'll have to get a real job as well.

Answer 3

We have never met anyone who wanted to start a business with a bad plan, then there is always the money problem, and interesting historical facts showing half of all new businesses don't survive the first two years.
The part that never ceases to amaze me is, why is it that no matter how much money someone has, they always feel they need to invest in a business that costs roughly 10 times more?
I started mine with 5 thousand, and no loans of any kind.

Answer 4

if you're in person-friendly words procuring the call, i'd search for suggestion from an criminal specialist. even if, in the journey that they've fairly some debt, be careful to easily be particular you at the instantaneous are not inheriting a nasty popularity. also, Inc. doesn't be used for a sole proprietership. it extremely is in person-friendly words used for corporations that are blanketed. both he's utilizing Inc. incorrectly or he's not being honest and it really is a organisation, in which case there are shareholders. fairly, i'd advise fairly some caution. This in simple terms does no longer sound proper. Get an criminal specialist or document a distinct, yet similar call.

Answer 5

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Answer 6

I suggest you contact your local chapter of S.C.O.R.E. and the Small Business Administration. SCORE members can evaluate your plan for you and offer advice while the SBA gives you a business plan questionnaire and possible loan guarantees.