If you are talking about a small business loan from financial institutions and you have low credit score, your chances are a little tight. You can read here the requirements of Small Business Administration for the small business loans that they guarantee http://www.sba.gov/financing/
1. Equity investment
2. Earnings Requirement
3. Working Capital
4. Collateral
5. Resource Management
Here is an excel spreadsheet of SBA’s lending partners http://www.sba.gov/financing/lendinvest/plplend.xls
You must have collateral and equity investments poured into your business, plus a strong business plan with a management team who knows and understands the business.
Collateral can be personal and business assets such as house, receivables, stocks and bonds, furniture and fixtures, among others — that can be sold to pay back the loan. Collateral provide banks with the assurance that they can get their money (or at least parts of it) back, even if you cannot pay. Even SBA-guaranteed loans as well as micro loan programs require some form of collateral to secure a loan. If you do not have collateral, you will need to have a co-signer who has collateral and can pledge to cover your loan in case you default on payment.
Banks, including the Small Business Administration will hardly give you 100% of the financing you need. They need to see that you are invested in your business — which means they need to see you have money before they give you money. Otherwise, it’s an extremely tough deal.
What a relief this must be for people who want to start over. Im glad they now offer opportunities like this.
Raising Capital- If You Want To Raise Cash, Try Factoring
The business landscape is littered with small business owners who’ve stumbled in their search for capital. Many requests are denied. Those who are able to secure more traditional forms of funding, frequently have unacceptable strings attached. Some financial deals come back to bite the business owner in the form of substantial debt, insufficient revenue share or worse.
Raising money is difficult and time consuming, and most small businesses fail because they run out of cash. Getting additional capital in smaller chunks will get you the cash your business needs without risking a loss of equity or ownership.
Factoring may be the answer to many business cash flow issues. Gaining in popularity, factoring (also known as Invoice Factoring or Accounts Receivable Financing) is the practice of selling your accounts receivable (invoices) at a discount to a specialized financial services company like Charter Capital. You get the money from Charter Capital and we help you collect on the invoices.
The reason many businesses make this move is to ensure the continuous flow of cash to the business without sacrificing equity or incurring debt. Essentially, businesses that use factoring are focusing on having most of the money now rather than all of it later. It can take time to collect on an invoice, so when a company finances its accounts receivable, they are getting their money faster and without the hassle of the collection process.
With small to mid-sized businesses, freeing up working capital through factoring can prove to be vital. The money can be invested into new equipment, used to pay bills, or used toward payroll. Of course, the alternative is to chase the customer for the invoice payment and defer everything else while the money is tied up in the collection process.
The lesson here is: Working capital in-hand today is better than dashed dreams tomorrow.
Charter Capital – Factoring Made Simple
“Smaller Lenders Feeling Squeeze Of Credit Crunch” – The Wall Street Journal
Factoring from Charter Capital is your Alternative when lenders say “No”
As banks continue to “tighten up” their lending practices due to continued pressure from federal and state bank examiners, small business owners are finding in increasingly difficult to secure the financing they need to grow their business.
The Difference Factoring Makes An increasingly popular way that small business owners secure capital for their growing business is factoring. Factoring (also known as Accounts Receivable Financing) is the practice of selling your accounts receivable (invoices) at a discount to another company like Charter Capital. You immediately get the money from Charter Capital and we collect on the invoices.
It is important for small business owners to know that factoring is not a loan and will not show up as debt on the company’s balance sheet.
With factoring, you are free from many of the restrictions placed upon your business by traditional bank financing such as loans or lines of credit. Most importantly, with factoring, you are free to grow without having to give up equity or control of your business. This is because factoring your Accounts Receivable is technically the sale of an asset, and the funding you receive from us is not debt, but a cash asset.
In today’s competitive marketplace, getting debt-free funding in the form of factoring can give businesses the edge they need to succeed.
Return to: Small Business News from Charter Capital
If you want to get more information about unsecured loans, personal loans, instant loans visit loanswithoutcreditcheck.co.uk
I took it upon myself to try the link that Salhdi recommended, http://www.thesnaploan.com. I wasn’t sure if it was for start ups, I tried anyway. It was online and I was approved. Although, my credit score was low, I did not have any discrepancies or bankruptcies so they were able to help me out.
I’ve been giving a fighting chance to see my dream through to a reality.
Thanks.
Sustaining your business by using your personal credit cards is a fatal mistake. Take it from me. It is one of the easiest ways to commit business suicide. Like me, many business owners put a lot of focus and attention on income that is not guaranteed and, when things don’t work out as planned, they are forced to use their personal credit cards to save their necks. I know! I was just about to draw my last breath when I found my saving grace.
For those business owners, like me, who have already found out how easy it is to make this financial mistake and how hard it is to try to fix it, it will be a relief to know that there is an online resource that is ideal for resolving this very stressful financial situation.
At http://www.snaploans.com a business owner can apply for a loan for up to $500,000. I didn’t need that much, but I was very surprised to know that I could get up to that much. The part I liked best the approval process, besides getting back a response from the company so fast, was that they did not restrict me in any way as far as how I could spend my approved funds.
I was able to pay of my credit cards and successfully separate my personal credit from my business credit. This sure did make my yearly tax return routine a whole lot easier. Besides, with my approved loan, I was able to offer my business and personal credit history another chance at survival.
Ralph, sustaining your business by using your personal credit cards is a fatal mistake. Take it from me. It is one of the easiest ways to commit business suicide and destroy your credit.
Like me, many business owners put a lot of focus and attention on income that is not guaranteed; and, when things don’t work out as planned, they are forced to use their personal credit cards to save their necks.
Believe me, I know! I was just about to draw my last breath, when I found my saving grace.
Business owners, who have already found out how easy it is to make this financial mistake and how hard it is to try to fix it, will be a relieved to know that there is an online resource that is ideal for resolving this very stressful financial situation.
At http://www.snaploans.com, a business owner can apply for a loan for up to $500,000. I didn’t need that much, but it surprised me to know that the amount of their loan offer was so high.
The part I liked best about the approval process, besides getting back a response from the company so fast, was that they did not restrict me in any way as far as how I could spend my approved funds, even with my bad credit.
I was able to pay off my personal credit cards and successfully separate my personal credit from my business credit. In addition, I was able to establish a revolving line of business credit, which allowed my business to stand on its own two feet.
This sure did make my yearly tax return routine a whole lot easier.
Besides, with my approved loan, I am now able to offer my business and personal credit history another chance at survival.
I noticed that your post addresses small business loans with poor credit.
While it is very informative, I did need a little more guidance specific to my individual business’ poor credit situation.
I am a frustrated established business owner trying to keep pace with a competitive market. I am currently sustaining my business on my personal credit cards and have been doing so for quite some time. Now I have successfully maxed out each one of them out.
Because all my credit cards are maxed out, I am trying to get a loan in an effort to pay them off.
I am confident that paying off these balances will take the noose of the neck of my business.
However, I find that most banks view me as a considerable risk because of my maxed out credit cards, and each attempt I make to acquire a loan is denied, collateral doesn’t seem to be their priority in my case.
I am not quite ready to give up on my business. It is all I have.
So, I am hoping a resource where I can go to get an approved small business loan that will give me the cash I need to pay of my credit card balances, without all the hassles.