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Your Credit is a lender’s way of telling them whether you pay your bills or obligations. This is either used for personal or business loans. It may not be “fair” or even an accurate, true evaluation of you; but, it is what is used and it’s very hard to get around a bad credit report.
First of all, let’s discuss INDIVIDUAL CREDIT issues. Before the Sub-Prime market crash, it was easy to get a loan on bad credit. Now, banks have tightened their reigns on that avenue. But, not all is lost!!! There are private lenders who will help you buy real estate and offer more loan packages. HERE IS ANOTHER CHANCE TO BETTER YOUR CREDIT AND POSSIBLY BE ON THE WAY TO GOOD CREDIT. When using these services, I sincerely hope that before you take out MORE money on a loan, that you BUDGET for that repayment.. The interest will be higher than normal, but, they are taking the risk. I further strongly suggest that you really look at the debts you have. Start by making payments on those that you can. Figure out what is most damaging to your credit, more on that on the “credit” page, and considering using the loan you get to repay debts.
ON MY BAD CREDIT PAGE THERE WILL BE LINKS TO THESE PRIVATE LENDING GROUPS..SOME COST A LITTLE TO GET IN BUT IF YOU NEED THE MONEY, THE COST IS MINIMAL - USUALLY UNDER $50 DOLLARS.
Now, you may be wondering why I’m discussing personal credit on the “business loans” page. Here’s why:
YOU CANNOT GO TO A TRADITIONAL BANK AND USE YOUR BUSINESS EIN TO OBTAIN BUSINESS CREDIT ON A NEW (STARTUP) BUSINESS. “Why?”, you may ask, “I've heard that was one of the tricks used to get business loans from banks”.
Well, banks have wised up. They now want your PERSONAL credit on top of that killer Business plan you wrote out.. And if you have bad personal credit, getting that ever crucial loan can be rather difficult if not close to impossible.
So, what do you do???
Number one, remember that killer business plan I just mentioned...You do need one no matter what. BELOW IS A PLACE THAT WILL HELP YOU GET THAT PLAN WRITTEN!!
$$$$$$$Next, lets discuss getting that MONEY for your business$$$$$$$  ____________________________________________________________________________________________
There are a couple of ways in which to do so, AFTER you have incorporated.
One way is to go through private investors, who can be friends or family. .Explain that business plan of yours and see what they may be willing to invest in it...Offer a nice percentage in return for the loan (lets say 30% of the profits for a five to seven year loan). If your business makes a lot of money, don't be stingy, or too generous (you still need money yourself and so does your business).
If your friends and family don't work out, there is the world of private investors or pitch to acquaintances to invest in your business.
Whether it’s a bank or a private investor, they want to know what your “exit plan” is.
An exit plan ensures the lender that he will be able to get out of the loan, usually in about 5-7 years. Why wouldn’t they want to fund the loan for the full amortization? Because they make most of their profit in the first 5-7 years of the loan and they want their money back to make other NEW loans so that they can maximize THEIR profits.
Simply stated, an exit plan is any sound plan for getting their loan paid back. It could be selling the business, or going public. It could be refinancing or taking on other partners. There are any number of ways to satisfy this “unstated requirement” to a business loan; but, make sure you have one or two plans to get them out of the loan in 5-7 years.
These people are often SUCCESSFUL BUSINESS PEOPLE AND HAVE WORLDS OF INFORMATION AND ADVICE TO HELP YOU AND YOUR BUSINESS. And will GIVE this to you, especially if they are invested in your business. THEY ARE PART OF YOUR TEAM. THEY ARE ON YOUR SIDE!!
Please click on the following link to get you started on your way to CA$H!
Before you go, one more piece of advice: be honest. Whether it’s friends and family you are approaching or private investors. They have a right to know exactly what they are getting into and YOU will lose valuable credibility for future loans if they ever catch you in a lie, assuming you get away with it THIS time, which isn’t even all that likely.
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