Which Type of Business Funding is Best for You?

How to Get Funding With Challenged Credit or No Collateral:

The truth is, there is a LOT of capital out there that business owners can get. This is so even with personal credit issues or no collateral. You can qualify for this massive amount of available financing based on your business strengths. This is as long as your business has even one strength. The big banks require your ENTIRE business (and you!) to be near perfect to get money. But as you’re about to discover, there are many other sources who will lend you money. As long as you have a strength to offset your weaknesses, you can get approval. These are often called compensating factors. Here are five financing options for your business if you have challenged credit or no collateral:

1. Cash Flow Financing: If your business is generating consistent revenue, that shows stability and thus means your business is less of risk to lenders. Typically your business will have to have been established for at least 6 months and be able to show consistent, recurring income to qualify for this type of financing.
   
2. Equity Financing: With equity financing, you exchange a percentage of ownership in your business for financing, much like on the TV show Shark Tank. Personal credit is NOT an issue. You won't need to provide collateral. But equity investors are looking for a tested and proven concept. Sales help with approval. You might find some investors to invest in a concept only, or invention. But most will want to see you have an operating business earning money and making profits.
3. Crowd Funding: There are lots of websites where you can get crowdfunding for your business. This type of funding gathers money from a crowd, or a lot of people instead of one big investor. If the crowd likes your idea, they may donate money to your project. Much of crowdfunding doesn’t need to be paid back and many investors are people you know. Look into crowdfunding and you’ll find there are all types available.
4. Business Credit: Business credit is a great way to get money. Approvals are not based on personal credit. No collateral is necessary for approval. Business credit reports usually start with a few vendor accounts offering initial credit. Initial accounts create tradelines and a credit profile which establish a score. The company’s new profile and score are used to get credit. Newly-obtained credit is based on the company’s credit per the EIN, not the owner’s credit based on the SSN. Personal credit doesn’t matter as the credit linked to the EIN is used for approval.
5. Unsecured Credit: Unsecured credit requires no collateral, but it DOES require good credit. But if you have credit issues, you can still get approval if you have a good credit partner. Or you can work with someone who will sign as a guarantor, who has good credit. The guarantor is then liable for the business debt in case the account default. These accounts often report to the business credit bureaus. So, they also help build your business credit. And they are NOT reported on the guarantor’s personal credit report. Your guarantor will need excellent personal credit to qualify.

Contact us for more information on how to get funding for your business. Get started TODAY and build the business of your dreams. Here at Hope BSG, we want you to succeed!

Want to learn more about Business Credit?

We provide a comprehensive assessment and consultation to discuss your best path toward financial success for your business. Complete our Business Assessment today and get a jump start for your business!  CLICK HERE to complete the assessment.

One more thing...
We deeply appreciate all of our clients and affiliates, it is our sincere pleasure to serve you and be able to interact with all of our prior class attendees, contacts, and clients. Please consider leaving us a review on Google if you have enjoyed our services or one of our classes.

Don't forget to check out our social media pages below to get free information and updates!!