It’s difficult enough as it is to build a business in today’s world. The climate is nothing less than tumultuous, and even the most savvy entrepreneurs often have a hard time staying afloat. All of this is made especially difficult for those who have bad credit. Credit issues can get in the way of practically everything in the world of business, especially when it comes to getting loans. It should come as no surprise, then, that getting a business off the ground with poor credit can be extremely difficult.
It might seem like an impossibility, but building a business with less-than-perfect credit is not necessarily as hard as it might seem. If you’re able to put in the time, you’ll be well on your way towards bringing your business into the mainstream no matter how rough your credit situation may be.
Start Your Own Business Entity
Most people figure that they’ll have an extremely difficult time getting their business off the ground if they have poor personal credit. The thing to remember, however, is that business and personal credit can be two different things, but you’ve got to start your own business entity in order for this to occur. Making your business official isn’t nearly as much work as you might think. Incorporating or registering your business as a LLC can help to differentiate your business and personal finances; an essential part of building business credit. Even if your personal credit is about as bad as it gets, you’ll at least have a chance to start over when it comes to the business side of things.
Chances are that you’re going to have to look for a loan if you have any intention of actually making it as a business. Whether you’re trying to build an inventory, order general supplies or otherwise, you’ve got to have at least some capital behind you before you can call what you’re doing an actual business. If you’ve got bad credit, you’re no doubt going to run into difficulty trying to acquire a loan, which means you’ve got to have a solid list of recommendations on your side. This can be easier said than done to come upon if you don’t have a great deal of experience in the working world, but if you can put together a list of at least three references that are reputable and will give you a strong recommendation, you’ll have a much better chance of landing bad credit business loans.
Consider Alternative Payment Processors
Approach a traditional payment processor when you have poor credit, and it’s going to be at least somewhat difficult to get them on-board with your ideas. After all, these companies look at credit scores before anything else, and a poor score can sometimes be a reason to deny a potential business – your business. Alternative payment processors such as Paypal, however, can be huge allies to those who are having a hard time trying to get started. Paypal certainly charges higher than what you might find elsewhere, but it’s an excellent service for those who are new to the business world and is a great way to at least get your start.