HOW TO BUY A BUSINESS WITH POOR CREDIT
Owning a business can be a dream comes true for many persons, as it is the most reckoned path to being free from the financial rat race. Owning a business can either come as establishing a firm from the scratch or buying an existing business. However, with a bad credit profile and the paucity of loans for bad credit, your dream of buying that business can seem to be crashing but it’s not impossible yet.
RE-EVALUATE YOUR CREDIT PROFILE
Sometimes, all we know is that the credit history is red but to what extent?, we can’t answer. Before jumping into the frenzy of applying for loans for bad credit, it is wise to look closely at the financial books. Taking out time to strike out some debts and embarking on a last minute damage control to see if anything can be salvaged, is necessary at this point to improve the credit profile.
Visit any of the reporting agencies to issue you with personal credit reports and strike out the errors in the report by rectifying the issues with the reporting agencies with evidence of payment. If there is no much that can be changed in the report, it is wise to prepare well to answer questions on the negative issues on the report.
CREATE A BUSINESS PLAN
This is a very important step in applying for loans for bad credit, having in mind that you will need a very good presentation to convince the lender to part with his funds. Gathering all possible financial information about the company you wish to acquire, going through the financial books for the past 3 years or longer, reviewing the payroll and expenditure costs, debts and assets is the way to go.
All of these will be important in helping you write a business plan with interest on the financial history of the business and growth projections, when you take over the business. This will help the lender understand what the loan is going into and boosts their confidence. It is advisable that you review your business plan with small business administration counselor to add professional touches to it.
SOURCIMG FOR FUNDS
The easiest source of funds is through family and friends. All that is needed to convince them is just a good business plan as they won’t be requesting for your financial history. Also, there are loans for bad credit available at banks although their interest rate charges are higher. Nonetheless, being able to repay quite in time can put you in position to renegotiate the terms.
If you are looking for a business that won’t need an excess of $50,000, there is an alternative with micro loans. And using your home as collateral can put in good position to access loans for bad credit from banks. More details here: http://www.pfacentral.com/how-to-buy-a-business-with-poor-credit/
Again, if your application for loans keeps being dumped in the bin, you will need a credit partner. He/she will use their positive credit and industry experience to oversee the running of the business. This window is however with a condition, that some percentage of the business ownership will be given up.
Having a bad credit history may seem to be a setback in your quest to acquire that business you desire, but not anymore. The directions detailed above will facilitate your application for loan for bad credit and long term loans today.