Do you want to start your own business?
Anyone would like to say a resounding yes, but there are factors that keep them from even thinking about it. Yes, the possibilities are there, but the risks and challenges are just as real. Anyone can tell you to just do it. But that’s often easier said than done.
Perhaps, you’d be more comfortable if you know that one of your misgivings about startups turns out to be a complete myth. The truth, after all, will set you free.
It’s impossible to get business funds if you have bad credit.
It’s a huge misconception that you can only get a small business loan if you have a perfect credit. If this has been the case all along, then there won’t be a proliferation of small and medium-sized enterprises in the business landscape. Can you imagine what you need to do to get a perfect credit? Kudos to people who have them, but not necessarily bad news to those who don’t.
The world is changing, and today’s lending environment is more open to people with low or subpar credit ratings. Perfect credit is no longer the buzz word. The increasing number of alternative lending options further made the myth untrue.
So the banks are restrictive when it comes to extending credit. You can always find startup loans elsewhere. Other lenders tend to look at financial realities, rather than the financial history of a business owner. Of course, there are advantages if you have a good credit score of at least 620 and, at most, 700+. But even if your score is only 550 or above, you still have a good chance at obtaining business funding.
Options for Small Business Financing
Now that you know having a perfect credit score doesn’t hold true for all lenders, it’s time to discover your financing options. Some of them can be quite creative, which will make starting your own business a lot more fun.
When banks and traditional lenders aren’t much of a help, try your hand at online lending, a popular alternative to traditional business loans. You only need to apply for a loan online, and then wait for a few days. Yes, unlike the traditional loan process, online lenders will approve and issue funding within days. Completing an application form would also take only an hour or less to complete.
If you have a product that is sure to sell like hotcakes, why not sell it before you officially launch it in the market? This is one of the highly effective, yet often-overlooked strategies of raising business funding. It’ll also give you a good and factual idea if the product you want to sell actually have a chance of breaking through the business landscape. If your efforts don’t pay off, this should tell you something about the future of your startup.
What better way to fund a business than to get a little help from someone who has enough money to invest in your startup? You can always ask friends and family, but you will find a better option with real investors. Hyper Capital can help you connect to a pool of investors worldwide.
With all these options, you can start a business even with a less-than-perfect credit score.