You’re ready to take off. Your cards are decked and you feel that you’re ready to launch your small business. However, you have one hurdle remaining on your way – and it’s a big one. You need some capital!
Regrettably, you can’t get the money you need from your local bank because your credit score is not so good. Maybe you made a few wrong decisions in the past. But the banks won’t listen to your pitch. They say you’re too risky and politely ask you to seek help elsewhere.
Does it now mean that you’re forever doomed to suffer and the only option is to let go of your viable business idea? Probably not! You’ll be glad to learn a good many options to consider in this copy.
Let’s explore the five small business funding solutions you may want to try out.
If you have a group of loyal followers or if you think your proposal can elicit mass appeal, you can try crowdfunding. Places such as GoFundMe.com, Fundable.com, and Kicktarter.com are meant to help people with brilliant investment ideas find funds for their projects. Some projects have been able to raise millions of dollars within only a few weeks. Take the chance and grab the opportunity now!
2. Friends and Family
This is another excellent source of funds for a startup. People who love you will stop at nothing to help you become successful. Speak up about your idea and most of them will happy to help from the heart. Just make sure that everyone understands the terms of contributions to avoid future conflict.
Microlenders are typically not-for-profit organizations that provide small loans in the region of $300 to $35,000 to rising entrepreneurs. They specialize in lending to small, local businesses and the qualification criteria are a bit relaxed compared to those of traditional banks. Examples include Zopa and Accion.
4. Local credit unions
Although getting credit from local banks can be difficult, the same cannot be said about credit unions. These unions exist to help their members. If the bank doesn’t listen to you, try approaching your union; they may be willing to take a risk on you.
5. SBA loans
You could also get a loan from the U.S. Small Business Administration (SBA). The SBA has several loan programs for entrepreneurs. You only need to check the available options to see which loans you qualify for.
If none of these options works for you; just hang in there, build your credit core and try again later. In the meantime, open a bad credit merchant account to avoid future troubles and be able to process your clients credit cards.