Starting a business is extremely difficult, but extremely rewarding work. In so many cases, a great idea is the catalyst, followed by a great deal of hard work in getting the business off the ground, before eventually at some distant point making some money. But one of the stumbling blocks many would-be entrepreneurs face is a lack of available financing, made even more difficult by the lack of a solid personal credit rating. Undeterred, many of those who stumble on a great idea still choose to proceed. But how can you fund your business if you’ve got bad credit?
Bootstrapping – The Harder Way
The first option is to just do it regardless, and there’s often a lot to be said for getting your hands dirty and just starting to act on your idea without money. This is extremely difficult, and you will almost certainly experience months where those ends just don’t tie up. It takes a bit of dodging and weaving, but with a sharp eye for your bank balance and a clear plan of how you’re going to get there, it isn’t impossible. Some of the most successful entrepreneurs bootstrapped their ideas in the early days, sleeping in offices or on friend’s sofas to put everything they could into the business. It’s not for everyone, but it’s certainly an option for the right idea.
Working To Fund Your Idea – The Hard Way
Another approach to funding with bad credit is to take a job to fund your activity, or at least living costs while you get your business off the ground. This might be a case of building your business around your existing job, or finding something with flexible hours and working conditions to suit your needs. This is still difficult, particularly without a keen eye for the pennies, and means you will invariably work long days. But then, nothing ever comes for free, and if you want to make a success of your business, you will be more than prepared to put this work in.
Begging and Borrowing – The Emotionally Taxing Way
There is a third major option – begging and borrowing from family and friends who support your idea. Don’t expect much support by default however, and you’ll still need to be prepared to make the case for your idea, and to make promises of your abilities to repay. It can be emotionally draining, and difficult to propose to family members or friends who may not themselves be in a flush position to help your business.
Equity is a good tool here if necessary, but obviously you should always aim to secure borrowed funding first, which will prove significantly cheaper when your business gets off the ground. Check out bad credit unsecured loans by ukpersonalloans.co.uk for more tips on funding the growth of your business with a bad credit rating.