where can I find a small business start up loan if I have bad credit?
I have the idea, the graphic artist, the distribution, but I need to defray the cost of the advertising.
Answer
With bad credit, unfortunately, you will have a hard time applying for loans — even with the SBA. SBA courses their funds through financial institutions such as banks, and quality of credit is always an important factor they look for.
If you are thinking of a loan for advertising, then you can either find alternative sources of financing or seek low-cost ways to promote the business. Either way, you may have to downscale your plans without resources.
One option would be to finance the advertising with your credit card, if you have any. Many entrepreneurs started their businesses by maxing out their credit cards. Just consider that credit cards are an easy and accessible source of funds — but they can be expensive.
Here are some ways you can get capital for your business:
Where Credit is Due: Don’t Leave Your Home Business Without It http://www.powerhomebiz.com/vol9/credit.htm
When Not to Seek Loan Financing for Your Business http://www.powerhomebiz.com/vol143/loan.htm
Financing Basics http://www.entrepreneur.com/Your_Business/YB_Node/0,4507,373,00.html
You may want to check out the following books:
Financing Your Small Business
Small Business Financing: How and Where To Get It
Financing the Small Business: A Complete Guide to Obtaining Bank Loans and All Other Types of Financing
The SBA Loan Book
Angel Capital : How to Raise Early-Stage Private Equity Financing
Financing Your Small Business (Barron’s Business Library Series)
