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How to Startup a Company with Low Credit Score

by Olufisayo
Startup with low credit score

Have you done something that made you lose your credibility because of a low credit score? And now you can’t make new decisions because you think it would be pointless?

A bad credit doesn’t mean you can no longer startup a company. It may take some time but it will be worth it if it means you get the money to start of your business.

Follow these steps to get your business working.

Startup with low credit score

What you should do first it that you have to choose a concept that will need from you a low investment. Don’t be in such a hurry to get a huge loan, you have to put your big dream aside and start out slow and small. Take note that the best business choice to start off with a bad credit is a service type because it won’t require you to make an initial investment in tons of other products. Then soon, when you’ve made enough money, you can start expanding your business.

Don’t forget to apply for a business license to make sure it is legal or legit with a name for your business. Although there may be no fee for a license, you will be needing cash to register your busineses name and for the services you will be offering.

Having a bad credit, it can be quite impossible to attain a loan from a regular bank for you to finance your business. Another thing you can do, other than applying for a small business loan, is to ask for help from your friends and family. They can invest in your business, or you can start your own online business setup. Discuss the percentage that they’ll be getting so tht everything will remain fair  no matter what happens in your business.

You can also get in touch with a web-based lenders because there might be people who are willing to give you a loan for your business no matter how bad your credit is. Just keep in mind that these lenders will take a look at your credit report  and then they will their decision. Post a short description of your business so that people who are willing to give you a loan will see it.

Put some effort in publishing and promoting your business atleast once a month. This is the easiest and the most effective way to advertise your business. Check out newspaper ads or vacant blog sites to put up your products and services.

Don’t let a bad credit get you down. Just remeber to be patient and to start slowly rather than starting out big and ruining the opportunities.

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1 comment

Jesslyn July 7, 2012 - 9:36 AM

Thanks for the great post!
Starting small has one big advantage. You will be able to test the idea in pilot phase and be quick enough to make changes to suit the needs of your Customers.

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