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How to Get a Crooked Deal on a Start-up Business Loan

Getting a loan with poor credit when starting a business is tricky but possible. Most loans that you can get would be at much higher interest rates. This is the way the banks look at you, even if you have less than stellar credit. This means you get a loan that overpays you and give you a significant return. But the good news is that if you have the magic combination of scores above 700, you qualify for meagre rates and that, in combination with job stability and good cash flow, make your business a good bet.

When you buy a business, you do not want to overpay anywhere from $100,000 to $200,000. You want the loan to be cheap and a return at 6 per cent or better. You can get great deals on real estate equity loans for your business by going through the federal government. These are very inexpensive and have small commercial mortgage companies willing to help you get the small business loan. The interest rates are low, and the money is practically immediate.

Unintended tax dollars for small business: side by side

It would be best if you got your accounting in order. You need to have the correct tax id number on file. You need to get that S corporation paperwork and have it notarized and notarized. You need to register your business as a legal business and install a business phone line. You also need a business address and a business phone number, a business checking account, a business credit card with a company name on it and business licenses. You can get it all in less than nine months.

Next, you get an SBA loan at a reasonable rate of 17%. Again you can get it immediately with low fees, and you need about $7,000 to get it done.

Do not be conned into buying equipment that you do not need and which cost you more than what the equipment is worth. We are not talking about semi-trucks and full-size jet crafts. We are talking about bargains such as used computers, computers with lots of dust on them, computers with dark cured streaks, or even flat-screen TVs that work only in the dead of night. You have to look for a great deal, and you have to walk away. Nobody will buy your old tools, and you will go out and buy a new device. It is a hard lesson to learn, but it can help you stay out of debt and live a financially stable life. If you can get a loan at 17% interest and only pay $15,000 down with $150,000 in equipment, you are doing yourself a favour.

If you can get a loan at 17% interest and only pay $90,000 down with only $Fresh from the history mathematics102,000 in equipment, you are doing great. You have excellent credit and will qualify easily with 700 scores or above.

Get your credit repaired first, and then build your score up more by using the low rate commercial real estate loans. This is taking the path of least resistance. Everything is done right from the start, so you can start building Equity in less than nine months and not 1 to 2 years like you probably need to survive. Equity is everything when you start a business. With no credit, you have to use other means to get your business off the ground. You have to buy equipment; you have to purchase space. That is what Equity in your business is, and that is what you make your fortune upon. Do not let other people suck away your Equity in your company and get you into debt. Make sure you have good business credit, and your equity lines respect your cash flow, and you will be fine.