About Me

Setting A Realistic Budget

When I decided to budget a little more carefully, I had no idea how difficult it would be. Fortunately, I was able to talk with a few financial advisors who were able to point me in the right direction. One of the best pieces of advice I received was about setting a realistic budget. I learned how to effectively manage my money, so that I didn't have to worry about paying my bills or letting my accounts overdraft. This blog is designed to help people like me who have previously struggled with money. Check out these articles for financial advice that might help you to set a realistic budget.

Setting A Realistic Budget

Looking To Start Up A Business? Tips That Can Help You Find Business Loans

by Leo Austin

When you are looking to take out a traditional business loan, one of the things that the lender will do is run your business credit to see if you have a history of paying your bills on time. However, if you are looking to open a new business, you may not yet have established business credit. This can make it a bit more challenging to find business loans. If you are in this situation, consider these tips to help you find business loans. 

Use Your Personal Credit

While lenders and banks ask you for business credit when you're obtaining a business loan, many will use your personal credit if you do not have an established business. This can be a great way to get credit through more traditional channels. However, keep in mind that when you use your personal credit, you are essentially personally co-signing your business loan. If your business fails, they can come after you personally for the loan, and it can hit your credit. 

Look for Investors Rather Than Lending Groups

Another way to get a business loan without business credit is to look for investors, rather than turning to lending groups or banks. Investors fund loans out of their personal bank account. As such, they are able to fund things that they think are a good investment, regardless of your business credit score or lack thereof. 

Check Out Crowdfunding Options

Crowdfunding has increased in recent years, and more people are turning to crowdfunding when they need money, including when they are looking to open a business. The best part about looking at crowdfunding options is that the money you receive is not a loan, so you do not have to worry about paying it back. 

Consider Small Business Administration Investment Programs

The final way to find business loans for those without business credit is to look at the Small Business Administration investment programs. This is a program operated by the federal government that connects those wanting to start a small business with investors and lenders. In many cases, you will have to show that there is a need for the business in your area and show how it can benefit not only you but also the community. But, this can be a great resource to help you get a government-funded loan. 

If you dream of starting a business of your own, but lack the funds to do so, taking out a business loan can provide you with the money you need to get your business off of the ground. While it is more challenging if you do not have business credit to find a business loan, it is not impossible. Following the above four tips will help you to find a business loan so you can begin to live your dreams.