Small Business Financing
Whether you have a micro business in your basement or a larger industrial or retail location, you are going to need start up money.
But what do you do if your credit is not so good?
Financing a small business with bad credit can be hard but not impossible. This is where you have to get creative and really do your homework when it comes to your goals.
For example: A family business that I do bookkeeping for, wanted to expand into an industrial area so that they could house bigger equipment for the work that they were doing.
But the books were not showing enough profits just yet to afford first and last months rents and all the associated expenses, but the business needed to grow to sustain itself and be in the right market area.
The business also did not have a credit rating as such, and the owners did not have a good credit rating either to afford the size of loan they would need to accomplish this.
After some thought and creative thinking they were able to solve the problem and grow their business with out getting any outside financing at all. How did they do it?
But what do you do if your credit is not so good?
Financing a small business with bad credit can be hard but not impossible. This is where you have to get creative and really do your homework when it comes to your goals.
For example: A family business that I do bookkeeping for, wanted to expand into an industrial area so that they could house bigger equipment for the work that they were doing.
But the books were not showing enough profits just yet to afford first and last months rents and all the associated expenses, but the business needed to grow to sustain itself and be in the right market area.
The business also did not have a credit rating as such, and the owners did not have a good credit rating either to afford the size of loan they would need to accomplish this.
After some thought and creative thinking they were able to solve the problem and grow their business with out getting any outside financing at all. How did they do it?
Approached The Customer
By approaching the main customer with a well written out plan, they were able to "sublet" space from the customer in exchange for a better rate on the work they were doing for that customer.
This gave them the chance to grow, as well as keep a good customer happy. They didn't actually have to fork out any cash for the rent, just lowered the price slightly on the work they were doing for this customer.
This gave them the chance to grow and thrive and it has worked out well for them and has kept their cash flow under control and cutting. The customer had the space they were not using and now get a good rate. This may not work for all small business, but shows you, that with a bit of creativity, financing a small business with bad credit can be done.
This gave them the chance to grow, as well as keep a good customer happy. They didn't actually have to fork out any cash for the rent, just lowered the price slightly on the work they were doing for this customer.
This gave them the chance to grow and thrive and it has worked out well for them and has kept their cash flow under control and cutting. The customer had the space they were not using and now get a good rate. This may not work for all small business, but shows you, that with a bit of creativity, financing a small business with bad credit can be done.
