Credit is not an option for people with bad credit ratings ñ end of storyÖ or is it? While many will take this widely-held belief at face value and resign themselves with the tested-and-true ways of working their way out of a debt hole, others, which like to think of themselves as more entrepreneurial, resourceful, or merely lucky, will still go ahead with this unlikely plan. The plan, of course, being to start up a business almost in spite of the evidence that says they are not suited for finance management. What are their options? What can one do when one plans to start a business venture, yet their credit rating is too poor to go down the classic route of a bank loan? Read on below to find out, then decide whether or not bad credit loans are a good idea or merely the quickest route toward insolvency.
Family, Friends, Anyone?
For one thing, the most accessible loan option that springs to mind is oneís family and friends. They can provide you with a quick cash fix, so long as you havenít already alienated them financially, with your poor finance management habits. They will usually charge no interest and will take your word for it, when your promise to pay them back in due time. It all seems perfectly fine, but a wise old word of advice says one should never do business with oneís family and friends. Why? Because this can either lead to a turn for the worst in family affairs and friendships, or result in defective business solutions. Either way, chances are things wonít end well when oneís near and dear ones become involved in oneís business.
Small Business Authorities
Each sufficiently developed country has a small business financial advice authority ñ itís the Small Business Administration, or SBA, in the United States of America and the Financial Services Authority in the United Kingdom. These organizations will readily provide all those interested in starting up a business, even while on bad credit ratings, with all the information they need. They will tell you where opportunities for grants and funding open up. While such organization will provide you with access to their extensive network and pool of resources and information, the bulk of the effort will still bear down on your shoulders. You will need to get cracking on those tips as to how one can keep a business up and running, while also taking note of the names of major non-profit organization that might be willing and able to help you.
Developing Good Habits
When all is said and done, people can end up in a bad financial situation for an entire host of reasons. These reasons are as infinitely variegated as the many nuances of the financial crisis itself. And it is equally true that any business venture initiative is laudable, so long as it is undertaken in good faith and appears solid enough to receive some funding, no matter how paltry the amount may appear. However, if you do manage to get your small business running, even on bad credit, you will need to change those things in your financial practices and habits that have brought you to such an undesirable position in the first place. Always remember that this time, itís not just your personal finances youíre handling, but those of a business, with its potential partners, staff and clients. Those are quite a few people to disappoint by going bankrupt or filing for insolvency, arenít they? Not to mention the fact that the manager of an insolvent business stands to face all criminal and civil charges that may be brought against them. So stay cautious, exercise prudence and frugality, and, of course, good luck.