Obviously, banks won't consider you for any sort of loans, and going to any other financial institution will pose even greater challenges for you. It is no fun task to ask for loans when your credit score is worse than ever, and you're in a wretched financial condition.
When banks are unwilling to take any interest in your business proposal, and you don't have any other way out for availing facilities of business loans, you have to consider some other options. Firstly, you must target small business loans, as the sum of money you may borrow will be relatively low, so you have brighter chances of getting approval.
Small Business Loans
If you're targeting a bad credit startup loan, the first option you can consider is that of your friends, relatives, and family members. Sounds typically unprofessional, doesn't it? But that is the only way out, and believe me, in such dire financial situations, you'll be lucky if you get some personal or individual help.
More professional investors, like venture capitalists, can be a great source of financial support for you in these conditions. However, your ability to convince them will be a great determiner to succeed in getting their help.
You can also try visiting the website of Small Business Administration (SBA). This government-managed organization is meant to help people establish small businesses and achieve success in starting a small business.
Visiting the official website of SBA will expose you to an ocean of information related to small business loans. This will not only guide you to take wiser financial decisions, but it will also take you nearer to your goal of getting a business loan.
Proper research on the SBA website will help you know about numerous non-profit organizations and corporate houses that are eager to help people caught in the nuances of financial crisis.
So you've got to jot down the names of important resources where you have a higher probability of success in getting solutions for startup business. You can even ask them for help in preparing profitable and economical business plans.
In case you're a woman or you belong to a minority group, there are numerous government grants and loans for startup businesses, irrespective of the fact that you have bad credit.
However, the harsh point is that if you have a bad credit score, you may have to adhere to some strict terms and conditions. It is essential for you, again, to visit the grantsgov website of the US government to learn more about the options of small business loans available for you.
Since loans are merely not given based on assumptions that you'll do well in your business and pay back the money, it is important for you to show some past record of good credit score or information about your financial regularities.
If you can convince your lender that your present situation has been due to some sudden problem, and you'll bounce back on your feet soon, then you may get a loan relatively easier.
Remember, you have to make an effort to be promising to your lenders. In case you're able to get the loan, ensure that you inculcate healthy habits of money saving and always maintain a good track record of your financial transactions. Building a good credit score will go a long way in giving you a secured life in the future.