If you are just starting out as a new business, however, or are looking for expansion capital, you’ll need additional monies to help grow your business.
And if you’ve ruined your small business or personal credit, you’ll need options beyond friends and family to fund your dream business beyond traditional banking.
Thankfully, companies like Dealstruck offer secured business loans for cash poor companies, who need an extra helping hand in time of growth or crisis.
Better yet, if you have an excellent business plan, you might find a lender you will help fund your new or existing business.
Here are a few steps that you’ll need to get small business loans with no credit, whether you use a revenue secured term loan or traditional unsecured financing options.
- Build a relationship with small business-friendly lenders. Business people typically say that it easier to raise 10 million dollars, than it is to borrow $100,000. When you are looking to raise money on a lower scale, it’s best to build a relationship with credit unions and other small niche lenders first, before approaching larger banks.
- Offer collateral and assets to build your loan. Without any established business credit verified through Duns and Bradstreet, a bank will be hesitant to lend you any money. By securing the loan with collateral or your receivables, you will appear to be a more attractive and established borrower that can repay the loan without hesitation.
- Explore an upfront loan backed by your credit card sales. Some small companies extend the factoring idea by giving you cash for a percentage of your sales, instead of invoices. While this concept is more expensive and can carry higher interest rates, this is a better option for small businesses with high sales volume, but low profit margins.