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Old 11-06-2013, 10:59 AM
 
4 posts, read 5,523 times
Reputation: 10

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Hey there!!

So I'm trying to start a business, but I have no clue on where to find a start-up loan: THEY DON'T EXIST! Or at least it seem like it. Anyways... I've tried the traditional route like banks and what not, but I knew they would be a long shot due to my credit issues {Stupid Sallie Mae... smh}.

Look into Prosper and Lending Club, but again, due to credit I was not able to get a loan.

After further researching I started to look into more informal routes to obtaining a loan like family and friends, but none could help. Ugh... I want to maybe back track myself and apply for micro loans at different places, but I don't want my credit to be ran so many times and I see it as a big inconvenience to have to pay multiple people rather than just paying one. And I have been looking for this loan FOREVER it seems like, but really only about 2 months.

HELP!!!!

What other options are out there? I'm open to ANYTHING as long as it does not involve me taking off my clothes {lol}.
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Old 11-07-2013, 05:31 AM
 
775 posts, read 1,597,108 times
Reputation: 273
Quote:
Originally Posted by tallchick View Post
Hey there!!

So I'm trying to start a business, but I have no clue on where to find a start-up loan: THEY DON'T EXIST! Or at least it seem like it. Anyways... I've tried the traditional route like banks and what not, but I knew they would be a long shot due to my credit issues {Stupid Sallie Mae... smh}.

Look into Prosper and Lending Club, but again, due to credit I was not able to get a loan.

After further researching I started to look into more informal routes to obtaining a loan like family and friends, but none could help. Ugh... I want to maybe back track myself and apply for micro loans at different places, but I don't want my credit to be ran so many times and I see it as a big inconvenience to have to pay multiple people rather than just paying one. And I have been looking for this loan FOREVER it seems like, but really only about 2 months.

HELP!!!!

What other options are out there? I'm open to ANYTHING as long as it does not involve me taking off my clothes {lol}.
Ok... you knocked out my suggestion.
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Old 11-07-2013, 06:09 AM
 
223 posts, read 362,685 times
Reputation: 233
Don't take this the wrong way, as I'm someone who messed up on a few things and dropped my credit score down to the 600s, which sucked, but credit scores exist for a reason. It's telling the lender how much of a risk you are. Right now you look like a bad risk to take because of whatever your past problems were.

The way out of this is twofold: first, save money. That's the old-fashioned way to get money to do something. Even if it's a little per month it will build up if you don't touch it. If you have a good idea, it will wait for finances to be right. Having that savings helps with getting a loan because you also will have something at risk, not just the bank.

Second, get your credit reports. You can get the reports from the three agencies for free once per year, the score is not that expensive so I would pay to get just one actual number from one of the companies. You need to go through all the reports and first check that there are no mistakes, and then see what is on there that's hurting you (late payments are the worst). Any adverse information (like late payments, write-offs) take 7 years to drop of your record. So if you had a bad run 4 years ago, you're looking at 3 years of saving and waiting for your score to improve. You also need to pay down any debts you currently hold.

I apologize if I'm preaching stuff you know, but it didn't seem like it. This is something that every adult needs to understand. If you don't already know all about how credit works, you need to get a book and read it. Suze Orman's book (Young, Fabulous and Broke) was the one I read first, but any basic book on "Finances and Credit for dummies" will do.
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Old 11-07-2013, 06:51 AM
 
Location: The Triad (NC)
31,169 posts, read 68,077,221 times
Reputation: 37019
Quote:
Originally Posted by tallchick View Post
due to (MY bad credit history) I was not able to get a loan.
What other options are out there?
1) Fix your bad credit history
2) Vendor credit for materials
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Old 11-07-2013, 12:36 PM
 
Location: Los Angeles (Native)
25,305 posts, read 17,125,812 times
Reputation: 12206
There are some options on this list, but I know you have tried some of them

Funding Options for Bad Credit Risks | Entrepreneur.com

I agree with the others that said you need to focus on fixing your credit.

You can still start a business, but you will most likely have to bootstrap it.

What kind of business are you looking to start?

I would think you could still get a loan through prosper,etc but the interest would probably be crazy like 20%...hard to make money with those rates unless your business is very profitable.
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Old 11-07-2013, 12:45 PM
 
Location: East of Seattle since 1992, originally from SF Bay Area
33,136 posts, read 60,179,694 times
Reputation: 36635
It's hard enough to get a small business loan with good credit. Traditionally 50% of them failed withing 6 months, lately that has been higher, so the lenders are not anxious to help you. I bought a business about 20 years ago and had saved up, so got a 30% discount on the price since I was able to pay cash. That made it a lot easier to get the lease, financing for equipment, and credit for materials and supplies. You should have the equivalent of 6 months cash on hand to cover all business and personal expenses while starting up and building a customer base. Don't leave out the cost of quarterly tax payments, payroll and payroll taxes if you have employees, and business licenses and insurance. Starting a business without the financial resources is a recipe for disaster. Small business loans are best left for things like expanding, replacing equipment, adding new products or services.
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Old 11-08-2013, 09:53 AM
 
Location: Pearland
799 posts, read 2,193,566 times
Reputation: 694
Need more info?

What kind of business are you wanti8ng to start?
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Old 11-08-2013, 12:11 PM
 
4 posts, read 5,523 times
Reputation: 10
Quote:
Originally Posted by MrRational View Post
1) Fix your bad credit history
2) Vendor credit for materials

Thanks! Working on both of those things now.
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Old 11-08-2013, 12:18 PM
 
4 posts, read 5,523 times
Reputation: 10
Quote:
Originally Posted by jm1982 View Post
There are some options on this list, but I know you have tried some of them

Funding Options for Bad Credit Risks | Entrepreneur.com

I agree with the others that said you need to focus on fixing your credit.

You can still start a business, but you will most likely have to bootstrap it.

What kind of business are you looking to start?

I would think you could still get a loan through prosper,etc but the interest would probably be crazy like 20%...hard to make money with those rates unless your business is very profitable.

Thanks!! Will check the sites out! It is a web based clothing business for women. The interest rates do scare me, but there is no positive side to having bad credit so I would have to accept it.
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Old 11-08-2013, 12:22 PM
 
4 posts, read 5,523 times
Reputation: 10
Quote:
Originally Posted by mtgmike View Post
Need more info?

What kind of business are you wanti8ng to start?

It's a web based business clothing business for women
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