How to Start-up Your Business with Bad Credit

Today . . . I am thinking about this question that came in from one of our readers.

If you have a small business question that you'd like for me to answer, let me know.

Q: I would like to start my own business but with having bad credit I have not been able to get a loan. What should I do?

A: If you have bad credit, you already know how hard it is to get any kind of a loan, whether it is for a car, home, or small business start-up.

Therefore, if you have a terrific idea and bad credit, the key is to start small, use cash, and get creative on how you market (let people know about) your business.

Five Ways to Start-up Your Business with Bad Credit   

1. Choose a concept that requires a very low investment of money. Break your great business idea up into byte-size pieces or phases, then get phase one up and going, first.
   
2. Ask your friends and family to invest in your business. Letting them know when you expect to return their money to them.
   
3. Use online press release distribution services to promote your business on a monthly basis. This is one of the cheapest, most effective ways for you to advertise your small business when you have a limited marketing budget.
   
4. I you need equipment to get started in your business, ask family or friends to rent business equipment on your behalf. You, of course, will pay the bill.
   
5. Investigate micro-lenders and web-based (non-bank) lenders for possible loans. For instance, www.count-me-in.org offers women business loans and educational scholarships. Research and investigate carefully before signing on the virtual line.

That's my answer and I'm sticking to it!

Do you have any other suggestions? If so, leave a comment and let us know. And, if you have a small business question that you'd like for me to answer, let me know.

Susan L. Reid
Inner Samurai Business Expert

Award-winning author of Discovering Your Inner Samurai: The Entrepreneurial Woman's Journey to Business Success