To start any business, a great idea is more important than money and credit. However, we cannot neglect the importance of money and good credit when it comes to the application of great business ideas. It is not that difficult, but if you are suffering from bad credit loans then its certainly more than challenging for you.
Starting a Business With no Money and Bad Credit
Before you start your business, try to repair your bad credit history. Somehow manage to fulfill all the financial obligations, such as pay all the bills, taxes, and other payments. Ask some of your family members or friends to help you reestablish your credit and get some business loan. If you are still unable to manage money for your business, then try the ideas mentioned below that would answer your quest for how to start a business with no capital.
Low Investment Business
This is one of the best ways to start a business with bad credit. If you have not yet decided on which business you want to go for then opt for a business that requires less capital investment and something you can start with available resources. For example, small bakery business requires small business financing. If you know how to bake variety of baking delicacies then start baking at home and use mouth publicity or backplates for advertising. The home based businesses are generally inexpensive to start as your cost of land investment and hiring other people is negligible.
Friends and Family
They can come for rescue when you are going through tough times unless you have not caused any financial harm to them or were not involved in any credit card frauds. You can ask your friends and family members if they can lend you some amount. But you have to go with a proper business plan so that you know how much you should ask for. It will also display your professional attitude and passion towards your business. Apart from this, you can also resort to online social lending sites which is another way of getting an unsecured loan for working capital.
Non Profit Organizations
There are various non profit organizations that offer new entrepreneurs with micro credits that would help you complete your start up needs. These organizations generally charge no interest rate or very low interest rates on the loans. The aim of these micro credit organizations is quite social and so they want to give a chance to the young entrepreneurs to explore their creativity with unique business strategies.
Government Grants
There are many schemes designed by the government to help budding entrepreneurs. Government believes that a small business, if grown significantly, may provide employment to many other people. To lower the rate of unemployment, government has designed many schemes through which you can avail small business loans as grants. However, there are certain requirements and regulations associated with them, that are easy to comply with.
Infrastructure Lending
These days there are many people who run the service of providing people with adequate infrastructure needs, such as administrative support and technical support, etc. Some lenders also allow you to use different tools and machines that are essential for your business. For example, if you wish to start a home based apparel designing and stitching, then you lend a sewing machine that is very important to run this business. They charge you a minimum amount or may ask for some percents in your profits and generally overlook your credit background.
Work towards reestablishing your credit with honesty, passion, and hard work. Before you invest money, be assured that your business ideas are practical and profit oriented. Now stop worrying and pick one of the feasible idea and get started. All the best!
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