How can I start a business while having bad credit?

Answer 1

You can start your business with no money -- but it will not be easy. But if you're willing to work hard, and be creative and willing to learn, you can surely do it.

With poor credit, getting a low-cost loan from the Small Business Administration will not be an option. In SBA's document "CREDIT FACTORS A POTENTIAL BORROWER SHOULD KNOW" http://www.sba.gov/financing/preparation/qualify.html you can qualify for an SBA loan if you have equity investment and collateral -- which both means money. SBA wants to see that you yourself is invested in your business, so they want to make sure that you have money in your business as well. Without money, then you cannot be approved.

Here are some articles that can give you ideas of what to do when you want to start a business yet you do not have capital:

No Money? No Problem! http://www.entrepreneur.com/article/0,4621,288954,00.html
Seth Godin's Bootstrapper Bible http://www.changethis.com/8.BootstrappersBible
Starting a Business with Little Cash? http://www.powerhomebiz.com/vol30/nocash.htm
10 Rules for Starting A Business on a Shoestring Budget http://www.powerhomebiz.com/vol70/shoestringrules.htm
How to Start a Business With No Money http://www.smbtrendwire.com/start-business-no-money/

I suggest you read the following books as well. Borrow them from your library or buy them from your favorite bookstore

- 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
- The Art of the Start: The Time-Tested, Battle-Hardened Guide for Anyone Starting Anything by Guy Kawasaki

It may help you if you could talk with a small business expert or free mentors to give you ideas on how to make your dream of starting a business come true even without money. Here are some places where you can find a mentor:

- Government Mentoring Programs such as SBDCs, which works with community colleges and local business development councils to offer mentoring programs http://www.sba.gov/sbdc/sbdcnear.html ; or the Women's Network for Entrepreneurial Training http://www.sba.gov/womeninbusiness/wnet_roundtables.html
- Volunteer programs such as SCORE http://www.score.org which is composed of mostly retired executives and entrepreneurs
- Formal mentoring programs such as Athena Foundation http://www.athenafoundation.org/programs/globallinks.html , Helzberg Entrepreneurial Mentoring Program http://www.helzbergmentoring.org/HEMP/ , or The Aspen Institute MicroMentor Program http://www.micromentor.org
- Professional organizations such as the National Women’s Business Council http://www.nwbc.gov/Mentoring/programs.html
- Industry and trade associations
- Local business groups, such as the chamber of commerce
- Local chapters of business groups

Answer 2

wow some already GREAT advice on here!
i may take some too!
but my thoughts are this!
Clean up your credit and start to build credit first! and get letters of recommendation!
it will look good when you can present to a creditor i was minus this and was bring in this and got us to a positive state with in x amount of time if i can do this for my self. running a business is simuluar there for the loan will be paid but i may work a lot of hours all by my self so i don't have that extra salary to pay out..

that's one thought!
another is mroe of a money maker!
Create a business plan pay out and get the software ensure it is presentable and go to rich peeps and see if they will buy your idea! you will get more of a lump sum and most likely more money! but then you sold your company prior to starting it!
and if your smart about it you will have 2 plans one to sell to get you the money you need to start your other plan!!! :)
Tricky!!
lol
well good luck!

Answer 3

Small business loan are a great financial help for small business owners. Without monetary support, a business, whether it is big or small, can not be run smoothly. With a small business loan, financing in small business is always possible. Can a borrower with bad credit score apply for a small business loan? Yes, they can. With thevarious purposes with a bad credit small business loan. With this loan, they can start a new business, they can expand their present business, they can purchase some necessary equipment, they can buy a new office premises, and they can repair their present office. Even more, they can use a bad credit small business loan as business capital as well.

Answer 4

Expedia.com was bought by Mr. Diller for 5 Billion. Donald Trump has his own online Travel Industry, Magic Johnson has his own.....do you see the trend for these Entrepreneurs?

The market shift, the baby boomers are retiring...

WATCH AND LISTEN before you SAY NO. No need for credit checks, no need to spend so much for the start up costs, you'll have your own multi-mullion dollar travel agency.

www.AllSmartTravel.biz (click on presentation)

Best of luck,
[e-mail]

Answer 5

Stayin Home and Lovin It!

I am a mom and was looking for something I could believe in. I found it. I am proud of who I work with, and what they do. And even better, I get to work from home the way I want to, with my kids by my side. No selling, stocking or delivering products and we don’t have to run around chasing people. Let me share with you what is changing my life

Answer 6

you may want to consider going into business with other partners so their credit can be used instead of yours.

Answer 7

You probably can't, unless you have partners with good credit. If you want to start one on your own, first do whatever you need to do to get your credit up.

Good luck.

Answer 8

Go to www.myhomebusinesspays.com/Trent