Start up Loan for new Incorporated Small Business? Poor personal Credit.?

Question

Good day,

I'm planning out a new business that will be Incorporated in the State of California. I was wondering if anybody has a few good leads to a loan for a new startup Incorporated Business with no credit history, where the only person behind the corporation has poor personal credit.

Thank you for your help in advance!

Answer 1

You'll need a well documented business plan and I would talk to a business counselor before you do anything especially spend money. You have to determine whether you'll start a web based business or one with a store front. I'd call the local office of SCORE (go to http://www.score.org and input your zip code to find the chapter nearest you), the advice is FREE.

The counselor at SCORE will help you write the business plan because it will force you to dig out all of the start up details and the costs of starting your small business and force you to also understand all of the aspects of this business including the customers you'll concentrate on (your market ) and how you'll go after them.

You'll need to register the business with your state controller's office and make sure that you have any city and county licenses if any are needed where you live. Your counselor can help you get in front of and prepare a proposal for the SBA to guarantee a loan for you. You can also try http://www.prosper.com the people-to-people lending place. All of this will come out in a business plan.

Try this link :
http://www.ychange.com/small-business-consulting-articles.html and read some of the articles especially the ones about a business plan and starting a business.
Good Luck

Answer 2

1

Answer 3

Well, the problem is that the business loan will be reliant on the strength of your credit - you'll find your personal credit and business credit are actually one in the same. Banks will want to know what you plan to do with the money and how you plan to pay it back, as well as how reliable you (personally) are with finances. You may need to find someone to partner with who has good credit and can qualify for a small business loan. That or find someone to give you start-up capital in cash. If you have a particularly strong business plan, you could try pleading your case to some banks and see if they'll give you a loan, but with your poor credit history, most will probably refuse you or offer you small loans with extremely high interest rates.

Answer 4

If you are individual, you can easily get a loan offered by the federal government. This loan allows you to start a small business. The department of Small Business Administration (SBA) acts as a guarantor for these loans.
http://debts-to-wealth.com/category/Government-Small-Business-Loans.html

Answer 5

Lenders lend money expecting it to be repaid. If your personal credit is poor and the corporation is new so has no track record, you'll find it very difficult if not impossible to get much of a loan.

Good luck anyway.

Answer 6

sorry personnal loans are easy to get but if you mention it is for starting a business or investing they do not want to know. Unless you are willing to offer property as collaterol or have evidence of income as self employed you will be lucky as an easy way of hiding debts is to hide them in a business and then bankrupting it and walking away.

Answer 7

you can try prosper.com

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