For most people, their credit repair home business is a “home business” because they lack the funds to go after the big time business set-up. Most businesses started this way need money to grow, to have a chance to bring in profits on a scale that makes the income matter.
It’s not easy to get money from banks when you launch a small business, as they feel small home business are too risky. However, there are many way you can raise money without the help of the formal financial institutions.
Here are few that work like a charm every time.
(1) Borrow From Family Members
This is always a great idea, especially if you have a good reputation among your dear ones. To ensure that no one feels exploited, work out clear cut terms and conditions regarding repayment. They should be clear about when they can expect their money back.
Be careful here, or you might end up with sour relations owing to your loan. In most cases, parents, siblings, and close friends will be happy to help you, especially, if they realize you’re seriously planning to nurture your business. They will also become your die-hard marketers, which is always a great side effect!
(2) Take Out a Secured Loan
For this purpose, you’ll need to have some collateral and/or someone who has excellent credit to back you up with his/her signature as a guarantor. This means that if you fail to repay the loan in the time frame agreed, your guarantor will pay and the bank will also have the right to auction the collateral offered at the time of the loan.
This will not look good on the credit report of the guarantor, even if he pays your loan in full. Hence, be careful about how much you borrow, and about the terms of repayment you agree to. It will not do to put the person in trouble, who chose to help you in your time of need.
(3) Check out the SBA (www.Sba.gov)
The SBA (US Small Business Administration) offers an excellent tool that will help you find loans and grants.
Check it out here:
With the help of this tool you can stumble upon some excellent options laid out for businesses just like yours. The good news is, it doesn’t there. The SBA also offers information on available grants for small businesses, which can be priceless for any small home business.
Check out this site to inquire about grants:
Please note that the SBA doesn’t really finance any type of business. However, formal financial institutions will provide financing when recommended by the SBA. This is why you need to understand what the eligibility requirements are for this recommendation, and what type of loans are promoted by the SBA.
(4) Use Your Credit Cards
Another way to bridge the gap when your finances are low, is to use credit cards. However, be very careful when you use your credit cards because the interest charged is very high.
If you’re not paying the entire outstanding amount on the due date, your credit score will suffer. Be aware that even when you pay the “minimum required payment” you’re considered a defaulter. Therefore, even though this is a very easy way to get instant cash, it’s best to avail of this “loan” only when you are sure that you can pay it in full when the bill comes due.