a relative of mine started her own business... everything was going fine until she was denied a loan because of poor credit. Everything I always read says Money for women, a loan for women starting their own business, why isn't this the truth, why don't they state out there must have 110% perfect credit!!...Are there any women in central illinois that have opened their own business, and needed a little boost of help? Did you get it? What is the best way to get approved for a loan with bad credit? or is there another way to get money for her business???
2007-11-05 08:32:10 · 5 answers · asked by Anonymous in Business & Finance ➔ Small Business
You should definitely look into grants! There are tons of options for grants for women starting businesses, etc. You just have to fill out a bunch of questions, apply for a certain amount of grant money and then they determine what you qualify best for!
Good Luck!
2007-11-05 08:40:47 · answer #1 · answered by Anonymous · 0⤊ 1⤋
Sadly, a bad credit score shows lenders that your relative can not pay back debt in a timely manner. Therefore, in their eyes she doesn't deserve a loan. She should fix her credit, and start paying things on time, and save money. There is no other way. I know you feel bad for her, but truth is, if you kept lending her money and she didn't pay you back, then she turned around and asked for MORE money even if it was for her business, you probably wouldn't give it to her. Think about it.
2007-11-05 08:40:51 · answer #2 · answered by Brain 4 · 0⤊ 0⤋
Your relative was denied a loan because she is a poor credit risk. It has nothing to do with her gender. She needs to make her payments on time, every time. She needs to pay down her debts to an acceptable debt to income ratio. She needs to limit her credit card debts and close any that are not for emergency use only. She needs to increase her income levels. And all of this needs to be done before she tries to go into more debt with a business.
2007-11-05 08:36:22 · answer #3 · answered by kja63 7 · 0⤊ 0⤋
Any time someone lends money, they want to have a reasonable expectation of getting it back. If your relative has bad credit, it's because in the past she has NOT paid back what she has owed, so the person evaluating whether to give her the loan can't figure she'll pay it back as promised, so the loan will be denied.
2007-11-05 08:57:20 · answer #4 · answered by Judy 7 · 0⤊ 0⤋
She has bad credit. Would you loan someone money if they have not paid other people back? She needs to pay off all her debt and rebuild her credit rating. It has nothing to do with her being a woman. It has everything to do with her loan payment history.
She can always barrow money from her family.
2007-11-05 08:40:22 · answer #5 · answered by Dave G 3 · 0⤊ 1⤋