How to finance a business with bad credit?
I have a poor credit score because for small debts I have accumulater over the years but I have eliminated the majority of them. I want to buy a business here in Illinois for $70k..I do have 10% down in cash but I can't find financing. What can I do? The owner will be leaving town in 3 weeks and will probably list it....help!
Public Comments
- If you can't afford it, don't buy it.
- The bank now prefer 33% downpayment for financing a business purchase. US economy is technically in recession and the risk of business failures are higher. The banks are not going to finance it with only 10% downpayment. Your bad credit history is also a negative. I would suggest that you improve your credit score and save more money since the oppurtunities come around all the time. Better luck in the future.
- Hello, You need Business Loan or Government Grants for starting small business. Here are many cousultants ready to help you. This is a list of Business Loan lenders, choose which one is best for you, http://business-loans1.blogspot.com/
- A true business credit card is a line of credit that is taken in the name of the business, under the business' credit. Activity, whether good or bad, is reflected on your business' credit report through D&B and other financial institutions, and the liability for any debts incurred and bills owed is with the business. However, some companies out there offer "business" credit cards which they require a person guarantee for. These institutions will often ask for a personal guarantee, and will almost always ask for a social security number from the person applying for the card. If this is the case, the credit card is not a business credit card, but is simply a personal credit card which is used for the business. The business is not liable for bills and debts - you are. When applying for a credit card for your business, watch out for areas asking for your SSN (and not your TaxID or EIN) and be wary of any credit card that asks for a personal guarantee. By ensuring that your credit card is in the name of your business, you can help to build your business' credit, while avoiding creating problems with your own. Many companies offer a list of credit cards that are issued under the business name only. Those lists typically run $300-$900, depending on the quality of the information inquiring. I would suggest starting your search online via google or yahoo. Search for "strong business credit" (just like that in quotes) to find services that sell the information. Good luck, Ilya Bodner Small Business Owner Initial Underwriting Group
