Starting a home-based business can provide you with the flexibility and potential income that you need to live a more enjoyable life. While many people dream of being able to start a profitable home-based business, not everyone has the funds that are necessary to get started. If you don’t have the money that you need to begin your business, you may need to turn to financing to help generate the cash. When your credit is less than perfect, you may not be able to qualify for traditional forms of funding. While this can seem like a setback, there are some other alternatives for you to consider when you need funding for a home-based business.
Hard Money Lenders
One option that you may want to consider is working with a hard money lender. Hard money lenders are lending organizations or individuals who have excess money to lend, and do not have a problem working with people who have bad credit. In fact, most of the people who get hard money loans do so because they can’t get approved through traditional channels. The drawback of using this type of loan is that the interest rates are typically very high, and you probably need some collateral to get approved. However, it is a legitimate alternative to consider when you can’t get bank financing.
When your credit score is low, another option for you to consider is a cash advance. With a cash advance, you borrow against future earnings from your regular job. If you have a job and you’re trying to start a home business on the side, this may be the perfect option for you. When you use a cash advance, the lender will not look at your credit report, and will only verify that you make a certain amount of money. At that point, you can borrow money for a few weeks and repay it when you get paid.
In some cases, you may be able to use credit cards to finance your new business. While most unsecured credit cards the require you to have some kind of credit history, even people with low credit scores can usually qualify for at least one card. If you’ve recently gone through bankruptcy or had some other negative event, this may not be an option. However, if you can qualify for a credit card account, you can easily use the money to start your business.
Starting a home business is not easy, but if you’re willing to work, it can be successful. If you’re having a hard time getting approved for a traditional loan, keep searching until you find the money. By using alternative funding sources or by finding investors, you may be able to get the money you need.
Category: Finance a Business