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You have a new business and you are in need of funding. Even as a new business or startup, you’ve probably realized just how difficult it is to get funding for new businesses. In today’s post, I want to make your search a little easier by sharing with you 4 legit ways to get funding for a new business.
It has long been understood that you need good personal credit in order to get business loans. Many loans will ask for a personal guarantee. But wait, before you close this post out, there is still hope.
Getting a business loan with bad personal credit IS POSSIBLE. You may not believe it but its true. There are business loans that you can get with bad personal credit. Check out Accion to see if you would like to apply for a loan with them.
Other than that, there are not a whole lot of business loans I can recommend. What I can say is do your research. There are so many business loans out there and not all of them require a Personal Guarantee or good personal credit.
Some loans have been created to help startup businesses. So this post on how to get funding for a new business should be very helpful for you.
Lines of Credit/ Business Credit Cards
You may want to check out 5 Star Processing. I recommend reading up on them to make sure you fully understand their process. Then you could sign up for an account with them as well as apply for the 5 star Business Credit Card. They do not require a personal guarantee, meaning you don’t need great credit.
According to Noelle Randall, you can get this card with a 300 FICO score. So that’s great for business owners who own startups and have bad credit.
Keep in mind that most lines of credit require you to be in business for a certain amount of time and to make so much in revenue every month. The best thing you can do is go to YouTube and spend some time researching business lines of credit and business credit cards.
Check on their requirements and when you find a few that you think you may qualify for, I suggest applying. One thing I look for when searching for lines of credit and business credit cards is whether or not getting pre-qualified will affect my credit score.
I also look at how much revenue is required and whether this line of credit or business credit card requires a personal guarantee. Another thing I check on is how long you have to have been in business to qualify for it.
There are hundreds of business grants that you can apply for. You should research business grants by simply typing in things like “business grants for women”, “business grants for minorities”, “grants for women-owned businesses.” You should get some good results with these search terms.
If you don’t have the time or do not feel like searching for grants and just want to start applying then I recommend Ellie Talks Money Business Grants Package and course on how to apply for business grants. Ellie is amazing! I have been following her for months now and she really knows her stuff. Not only does she have a list of 700 grants but she even tells you how to apply so that’s a bonus.
Another site where you can find and apply for business grants is Hello Alice. I’ve never actually won any grants on this site but I have applied to some and although I didn’t win, I still think they are pretty legit.
Some of the grants that are open on Hello Alice at the time that this post was written is:
- Tiger Global Accelerate (HER) Fund
- Antares Reach Grant Program
Investors/ Venture Capitalists
Investors and Venture Capitalists are those people who see a good opportunity and will put money towards it. For a more thorough definition on Investors and Venture Capitalists, do a Google search and research the two terms.
There are a lot of people willing to invest in great business ideas. You just have to do a Google search on Investors of Venture Capitalists + (your state). For example, I could search for Investors + Missouri.
Before you ever start looking for investors or venture capitalists, you need to make sure you have your business plan created correctly and that it includes all of the necessary sections and information.
When it comes to investors and venture capitalists, you really get one chance to make a good impression and get them interested in your business or business idea.
There are several ways to get funding for a new startup business. However, not every option will work for your situation. Therefore, you need to do your research. Weigh your options and determine which funding will fit your needs the best.
Do not apply for a lot of loans or business credit cards at one time, especially if they are going to run your credit. Not only will a lot of inquiries drop your credit but it will look bad to potential lenders. So just be cautious and careful about what lenders you apply to.