Learn more here and get started with building a strong company with business startup loans, no credit check!
Best Ways to Use Funding
Once you get funding, it is time to put those funds to work. You have to find a careful balance between spending money to make money and overspending to a point you cannot pay back a loan. Find the sweet spot with inventory and location so that you can begin producing revenue as soon as possible. That revenue is what will allow you to pay back your loan with consistent, on-time payments.
Use Your Financing to Build Credit
Once you have some financing you can work on building credit. Making on-time payments is the big thing, but it won’t matter if you have not established your business as a separate entity. This means incorporating your business, or at least operating under a DBA. Then listing it in directories under its own contact information and opening a separate business bank account.
Once you do this, any payment information reported about your business will be on your business credit report. The beauty of building credit is that if you stay the course, you can see progress pretty quickly. Then you don’t have to worry about startup loans. No credit check isn’t even a factor.
Where Do You Start?
Every athlete asks himself the same thing when they begin training. Where do I even start? Progress can be slow, but you have to stick with it. The same is true of building business credit. The starting place, as it happens, has to be funding that doesn’t require an excellent credit score. That is because you are likely starting out with no business credit, which is the same as bad business credit.
Where do you get funding with no business credit? You can try to find business startup loans no credit check. They do exist, though not in the form you may expect.
You could also try your hand at creating a crowdfunding campaign. Success rates aren’t great. Depending on your situation however, it could be a viable option.
Kickstarter is probably the most well-known crowdfunding platform. It is important to know that it is all or nothing however. You set the goal, and you do not get any money until funds reach that goal.
Unlike Kickstarter, Indiegogo is a platform that allows you to take whatever you can get. This means it could still be helpful even if you do not reach your goal.
Other options for startup funding include secured business credit cards and angel investors. Which options you use depend your situation and how much you need to meet your goals.
Kiva
Kiva is a good place to start to find business startup loans, no credit check. It is absolutely free. You have to repay the money, but the interest rate is 0%. The only thing required from you is a thorough business credit profile. Also, you must loan $25 to another business on the site. Last is the requirement that you raise funds from a certain number of friends and family. Usually, it is at least five people from your own network that have to be willing to pitch in.
Capital One Spark Classic for Business
While this isn’t exactly the same as business startup loans, no credit check or otherwise, it is great for just starting out. They do pull a personal credit score, but you can get approval with a score as low as 580.
Of course, as you may imagine the limit is low and the interest is high. The goal is to use this as a tool to get started and build credit at the same time. Maybe put just enough inventory on the card to get going.
After you make enough payments to strengthen your business credit score, you can move up to a financing option with more favorable terms.
Keeping with the athlete metaphor, when you are training in the beginning, you can’t lift much or run very far. You are very sore afterward as well. However, as those muscles strengthen you are able to run further and lift more weight. Not only that, your performance improves. The same is true of financing a business.
Small Business Administration
Although loans from the SBA require a credit check, they do not rely solely on a good credit score for approval. The SBA’s mission is to help small business. They do this by making business loans available to those that may not otherwise qualify. The loans are federally backed, so lenders have some of the responsibility of risk mitigation lifted.
There are a lot of hoops to jump through and the process is not quick, but if you persevere, these loans can be like protein shot to your business.
Angel Investors
Don’t forget about angel investors. They are informal investors that believe in you and your business. And they can be friends, family, or a total stranger that you convince to come along side you and help you make your dreams come true. They don’t have to check your credit and you don’t have to pay them back, though they may want a piece of the pie!
Build Your Credit Muscle and Lift Your Business To New Heights
Like exercise equipment and running shoes, business startup loans, no credit check or otherwise, are tools to help you build both your business and your credit. Used incorrectly, they can cause more harm than good. However, if you take the time to do your research and learn to use them properly, your finances and your business can soar to new heights.
This means working slowly, building up to stronger credit tools as you go. Don’t try to start out with the hardest machine in the gym or you will fall flat on your face. Start with some these suggestions and eventually you will be able to apply for traditional loans and small business lines of credit like a pro. By the time you are able to do that, your wise use of starter credit will ensure your business already has a solid foundation.
Learn more here and get started toward building a strong company with business startup loans, no credit check!