Maybe you think you could never start your own business because you could never get the financing. Very few things in life truly fit in to the category of never. However, turning “never” into “sometimes” does take hard work, dedication, knowledge, and a hefty dose of creativity. Here are some of the top tips for securing small business financing when you thought you never could.
If credit, lack of collateral, or just lack of financial stability in general are holding you back, scale your idea down to size for the time being. If you dream of opening your own restaurant, start will offering a few meals for sale to local customers on the weekends or selling baked goods at the farmers market. If you want to open your own mechanic shop, start by working on cars for your neighbors at your home on the weekends or in the evenings.
This helps with financing in two ways. The first way is that when you do approach a lender, you have already created a demand for your product or service. The second is that, if finances are an issue, by running your business on a small scale on the side you may be able to put away a little extra. Maybe you could use it to catch up on bills and raise your credit score, or to save up enough to fund some of the budget for growing your business yourself.
Finance the Small Stuff Yourself
Extra funds from starting your business on the side is a great way to do this. Even selling luxury items or using savings funds can make a big difference. It will help if lenders see you have your own funds that you are investing or willing to use to support your business. It is easier to believe in your company and take risks if you believe in the business and have already shown some success.
Securing small business financing can feel like an uphill battle. Talking to various lenders, trying to determine what they offer, and if you qualify for it, takes time and money. There is no need for this however. Biz2Credit can match you with lenders from our extensive network without you ever having to leave your home. Find out more today at Biz2Credit.com or call (800) 200-5678.