Nobody ever wants to run out of options. However, there come times when things go awry and totally out of your control. When you lose control over the health of your business, and you have a bad credit history, this is where you start running out of options. However, before hitting that panic button, there is still a lot of things you can do to improve the situation. This article will give you a clear idea of what are your options as a business owner to help revive your fledgling business venture, especially if you need extra cash to fund your revival efforts.
The first thing to do is to stay relaxed because you are not the only person who is going through this turmoil. A lot of businesspersons hit this roadblock at least once in their life. So, be confident of beating this challenge and rising above the turbulence to thriving your business back on the road to glory. You may adopt a two-pronged strategy to deal with the conundrum, i.e. fix your credit and arrange funds with a bad credit history. While fixing your credit record, you will also need funds, so let us focus more on the second leg of your strategy. Once again, it is not the end of the road. Perhaps, this might be the start of a phase that will make you even a tougher cookie as an entrepreneur. So let us start exploring your options to arrange funds with that bad credit history.
Look For Cash From Friends, Relatives
We all have some go-to friends and relatives. Well, this relationship gets tested the most when any of us need immediate cash. The truth of the matter is that these close friends and family members are the lifelines for most of the people. So it is always a great idea to start looking for funds from the most trusted individuals in your life.
The best part of exploring this option first is the fact that such loans are interest-free. Another positive aspect of this option is that your close friends will not find a reason to look at your credit record and will trust your business acumen, intellect and the strength of your relationship for sharing their funds with you. Try never to breach that trust and be transparent with them while you obtain their money for your business.
Time To Check Out Microcredit Option
There are many options to secure Long Term Business Loans For Bad Credit. Still, before you go for such an option, it is always safe to check out different microfinancing possibilities. The idea of microcredit was launched for countries with lower income societies, but it has been quite popular in many established countries as well.
The best part is that microlenders do not put harsh limits on your credit score. Moreover, if you compare this option with unsecured business loans, you will find out that it does not come at an expensive interest rate. Last but not least, when you pay back this microloan, it will help you in improving your credit score. The only thing that you should take into consideration is the fact that microloans are an expensive option when compared with traditional secured small-business loans.
Ever Heard Of Crowdfunding?
For all the small business owners who are struggling to find a way to keep their ventures in the growth trajectory, crowdfunding has emerged as the perfect solution. There are two basic types of crowdfunding options, i.e. reward-based or equity-based.
You can easily set up a lending campaign with a funding object at crowdfunding platforms like Indiegogo and Kickstarter which offer you reward-based crowdfunding. You will have to offer a reward to your lenders, such as a product preorder or a promotional item or a special discount.
The equity-based crowdfunding connects you with potential investors who are ready to invest in your business but in exchange for a share or stake in it. This is a rather stricter option because equity-based crowd funders have a tougher selection process.
Never Ignore A Business Line Of Credit
You cannot afford to ignore a business line of credit option while you are making up your mind about the perfect loan option for your small business. During the process, you might face frustration about the pros and cons of different lending options.
However, if you are looking for quick funds, then you should consider the unique lending options offered by banks that are designed for small businesses. You can take into account different lending products like small-business lines of credit (LOCs), cash flow loans, or small-business working capital loans to bail out your small business.
The Concluding Remarks
As you can see above, there is no dearth of lending options if you are looking to revive your dwindling business. This is not the end of the world, and you can consider different credit options even if you have a bad credit history.
Before you select a lending option, always make sure that you have done your homework and are sure about your payback plan. It is your business that you want to put on the path to growth, and if it can generate enough financial resources in the future, only then you can repay these financial obligations. Good luck with your efforts to revive your small business with some much-needed financial injection and turn it into a success story to inspire many others out there.