For better or worse, your credit score is your “SAT score” when it comes to financing. Read the best ways to start a business with no money and bad credit here.
While the creation of startup companies isn’t quite as robust as it was in the mid-2000s, tens of thousands of USA-based startups are still launching on a quarterly basis.
Do you want to know what most of the new companies have in common? Startup cash.
In order to get a business off of the ground, you almost always need money upfront to pay for inventory, employees, and everything in-between. So then, how can you start a business with no money and bad credit? Is it even possible?
While it might seem unrealistic to get your operation going without capital or credit to borrow capital, believe us when we say that there are ways. Below, we share three methods that cash-poor, sub-prime entrepreneurs use to make their dreams their realities.
1. Build a No or Low-Cost Company
Not every company requires a large upfront investment. As a matter of fact, thanks to the internet, there are a number of businesses that you can launch without spending a single penny.
For example, affiliate marketers make money online by organically promoting other products. Many of them relegate their promotion to free social media platforms.
Bottom line: You can make money in business without spending any. It just takes creativity and hard work.
2. Seek Out a Subprime Business Loan
There are a number of companies out there like Bonsai Finance which specialize in helping people like you find loans. We understand that your bad credit has led to you not being approved in the past. The past, however, does not equal the future.
Online lenders are offering no-credit-check loans at higher rates than ever today. If you have a job and a checking account, we guarantee that there’s a lender out there that would love to put money in your pocket.
3. Pitch Investors
The most popular way to start a business with no money and bad credit is to use investor’s money.
While that advice might sound conniving, it’s actually common practice for visionaries like you to seek out the money of other people that are looking to back the next big thing.
Put together a business plan, translate your business plan into a flashy PowerPoint presentation and start pitching your friends, family members and even investment bankers on why they should buy shares in your company. If you’re convincing enough, your business can get the cash that it needs without your credit slowing you down.
Start a Business With No Money and Bad Credit Today
There’s no better day to get your business off the ground than today. That’s true even if you’re trying to start a business with no money and bad credit.
Remember, lack of funding is never the end of the world. It’s just another hurdle that you’ll need to find your way over.
If you’re looking for more tips and inspiration on living a self-employed lifestyle, do yourself a favor and check out additional content on our entrepreneur-focused blog!