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    6 Replies Latest reply on Aug 8, 2009 12:05 PM by Sassyjo

    How do I start a business without credit

    directionbuy Newbie
      I am currently one of the many americans with less than good credit and i wish to fund my business.
      I have applied for many small business grants; minority, female, and small business grants.
      To no result.
      In the past i simple financed my busiess with my own money, but currently I am unemployed and wish to make this current business plan a Full Time Job.

      Does anyone have any small business advice for me?
        • Re: How do I start a business without credit
          drivetraffic Adventurer
          One thing you can consider is if you have anyone in your circle that knows what you're trying to do and believes in your business. You might want to consider partnering with someone or inlisting some investors.

          J.P. Marketing, LLC

          • Re: How do I start a business without credit
            bentenn Adventurer
            While it never hurts to ask, basically there are no grants to start up a new business.

            I work with many small business clients who have limited money but depending on the size and nature of the business they wish to start, can still do so successfully. You have not provided enough information on what type of business you plan to open, the amount of money you think you need or why, and your level of experience and expertise in this industry. All of this extra info will be helpful in providing some advice.

            If you are truly serious and your idea has merit and is viable then visit your local SBDC (Small Business Development Center) office. They provide no cost professional business counseling as they are a resource of the SBA.

            Good luck. Ben
              • Re: How do I start a business without credit
                Sassyjo Wayfarer
                Do you think she really needs counseling? She is asking for help, as to what else to do. She knows about her credit, she probably does have a business plan and good direction on what she is doing. For some of us going to a counseling class isn't the answer. I know several business owners that have never stepped a foot in a classroom or seminar and are doing (needless to say) very well. But I will agree with the one that said to work on your credit, and being a black female I know all to well how that works. Good luck to you and God Bless.

                  • Re: How do I start a business without credit
                    bentenn Adventurer
                    Thank you for taking the time to comment on my suggestions, but yes, I do suggest she seek expert advice particularly since it is available at no cost to her and is widely used by tens of thousands of other small business owners who benefit from it. As an example, you state 'she probably' has a biz plan and good direction on what she needs to do. My experience after having counseled more than 300 small businesses is that she probably doesn't.

                    It does not matter how carefully she aims at her issue if she is pointing in the wrong direction. For many it is difficult to be clear or sure they are pointing in the right direction, have really objectively concluded what the key issues are and what options she may have to addres them.

                    I too wish her luck and hope she seeks out advice that is helpful and beneficial. Ben
                • Re: How do I start a business without credit
                  phanio Pioneer

                  I also have to reiterate to work on your credit - probably not what you want to hear - but, it is your best chance for long-term success.

                  Other options would include (as stated) find a partner with good credit that can sign or co-sign a loan.

                  You can ask friends and family members to co-sign even if they are not partners in the business.

                  There are also many financing options that don't rely so much on your credit - like accounts receivable financing, business cash advances or purchase order financing - but these require that you have already developed some business sales or contacts. There are also non-bank equipment lenders that will accepts average credit - not extremely bad credit but average credit.

                  Lastly, you stated you are not employed but want to build your business. You can find a part-time job to bring in some funding to help you run your business part-time. While this may not be the optimal method you are seeking - if could be an easy way around your poor credit history. Just keep in mind that the part time job is just a stepping stone for what you really want!

                  Business Money Today