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Poor Credit Business Loans - Do You Have Any Options?

Are you trying to go into business for yourself, but find that it is difficult to get the financing you need? Do you need to get a larger chunck of money to start your business, but you have poor credit? Lucky for you there are options for poor credit business loans that you might not have tried or thought of yet. Here are some of the places you should start looking before you give up on your business.

First, you should always start with the Small Business Administration that is closest to you. They will have government backed loan programs that you might qualify for even if you have poor credit. It never hurts to ask, and depending on what type of business you are trying to open they might even have some grant programs that will help you get financing for your business. If nothing else they will have some advice to help you out.

Next, you can run an ad in your local classifieds under the wanted section. Make sure you are specific in saying that you are looking for creative financing or private investors to invest in the business you are trying to open. Also, make sure to mention the business and how high of an interest rate you are willing to pay to get the money you need.

Another option is to sell some of your company in the form of stock. I knew a guy that once sold 1000 shares of stock for $100 each to family, friends, and anybody else that was interested. This whas how he got the first part of the financing that he needed to get his business up and running. He sold a total of 25% of his company and included an option to buy them all out of the stock after 3 years. This, of course, was done with the help of a lawyer and financial advisor.

The last way to get your financing is to find what is called an Angel investor. These are individuals or groups of individuals that invest in businesses from the start up stage all the way to the growth stage. These are going to larger poor credit business loans that might have some of the ownership of the company included in them. Be prepared to purchase plane tickets and memberships to groups to get yourself in front of these investment groups, but it will pay off when you get your financing.