Setting up a business is a positive step in the right direction, but if you have a bad credit history yourself, this can cause problems if you are looking for outside investment.
While most start-ups involve putting some of the capital to start the business from your own investments and savings, if you don’t have these and you still want to start your own business, how you have dealt with your own personal finances will impact how they judge you as a potential business owner.
Even trying to access a merchant account is difficult; looking for the right merchant account provider is your best option; one that deals in high-risk and bad credit merchant account providers is your best option. You will pay higher fees for the facilities but you are more likely to get an acceptance rather than dealing with a refusal of an account.
There are options open to businesses who are trying to secure funding, if a merchant account is in place it is possible to get an advance in expected payments. This allows for a company to grow and expand with payment based on the current sales; normally an agreed percentage goes to the payment for the loan and the remainder back to the company.
There are sites on the internet where you are able to secure funding from individuals who are looking to lend to businesses. It is possible that these business loans are at a lower interest rate than banks or other lending opportunities. For the individuals that invest in this form of lending, the return for them is often greater than interest payments if invested in a bank.
A series of non-profit organizations also exist that do lend to businesses who are struggling in obtaining credit and there are some government grants available, but that will depend on your current location and to the facilities that your local government is offering.
The final option that you should consider if you are looking for capital or investment in a new business venture, is to sort out your own personal finances first. This will open up more avenues in the business world because your personal financial record plays an important part in start-up business loans.
Do you have bad credit? Need a bad credit merchant account? Contact us today to set one up in as little as 48 hours!