I have bad credit. Where can I apply for a secured business Loan?

May 12, 2010

in Secured loans

I looking to borrow against my home. Where can I go to apply for a secured start up business loan and what steps should I take with poor credit to get approval?

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{ 3 comments… read them below or add one }

lalh20 May 12, 2010 at 4:07 am

Almost nowhere will do this for someone with bad credit except predators. By predators, I mean companies that will loan money to people at interest rates so high they will be extremely difficult to pay off. These companies make as much money reposessing and selling as they do in interest collections. Stick to legitimate banks even though you may get turned down several times. Also, look for wealthy individuals who are looking to invest in your ideas.

Good luck though, and don’t give up!

Brutus May 12, 2010 at 4:16 am

No lender will talk to you unless you provide them with a valid business plan. Go to http://www.sba.gov , http://www.score.org or http://www.bplan.com for sample business plans and instructions on how to write a business plan.

Then, go to http://www.score.org/ and in the upper left hand corner, enter your zip code. On the next screen, you will get information on the nearest SCORE chapter. Call them and arrange for a free meeting with a SCORE counselor to review your business plan and discuss various loan options available to you.

SCORE is a nonprofit association dedicated to entrepreneur education and the formation, growth and success of small business nationwide. SCORE is a resource partner with the U.S. Small Business Administration (SBA).

SCORE has 389 chapters in locations throughout the United States and its territories, with 10,500 volunteers nationwide. Both working and retired executives and business owners donate time and expertise as business counselors.

diblyhoo May 12, 2010 at 4:53 am

Don’t bother with SCORE – unless there is a good chapter in your location. While some are very good – many are not – you get what is paid for.

Go to your local Small Business Development Center – the counselors are paid and their service is free like score.

They can help you prepare for a loan – but depending on the reason for bad credit – you may have to find alternative financing – which is not very positive.

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