How to get financing with bad credit?

**jerseygirl** · 01-07-2010 01:15 PM

For over a year I have had a great business idea, produced a plan, contacted people and places whose sources I would need, done my research, and so on. I am all set and ready to go but my only problem is money. I recently got out of a bad divorce from a man who was a gambling addict. Because of his addiction we lost our house, cars, and all our credit cards and loans we had went into collections. We came very close to living on the streets and now that I finally am beginning to get back on my feet, I want to make my business dream a reality. What can I do to get financing if my credit is completely destroyed but I have a business plan that I am 100% confident in. How do I get it off the ground? I don't have friends or family who are able to help out financially to at least help me get this going.

**rogercbryan** · 01-07-2010 03:21 PM

This is a tough one. How much money are you looking for? There are very few ways to get money when your credit is destroyed. Do you have experience in your industry? Do you have a current job?

**nate_f2** · 01-08-2010 01:26 AM

You can join prepaid legal to make a decent amount of side cash plus residual income. Also go to the library and look for books on how to capitalize from government grants. Theres tons of tricks and loop holes to receive grant money if you play the game right, whether its hiring minority or disable just for example.

**rogercbryan** · 01-08-2010 08:43 AM

Originally Posted by nate_f2

You can join prepaid legal to make a decent amount of side cash plus residual income. Also go to the library and look for books on how to capitalize from government grants. Theres tons of tricks and loop holes to receive grant money if you play the game right, whether its hiring minority or disable just for example.

Don't bring that garbage on here... She is looking for answers about her credit and you come in with that garbage... UGH!

Grants for hiring minority or disabled does her no good if she doesn't have the money to start the business...

Come on read her post and try to give her useful information!

**akula** · 01-08-2010 09:56 AM

Originally Posted by jerseygirl

For over a year I have had a great business idea, produced a plan, contacted people and places whose sources I would need, done my research, and so on. I am all set and ready to go but my only problem is money. I recently got out of a bad divorce from a man who was a gambling addict. Because of his addiction we lost our house, cars, and all our credit cards and loans we had went into collections. We came very close to living on the streets and now that I finally am beginning to get back on my feet, I want to make my business dream a reality. What can I do to get financing if my credit is completely destroyed but I have a business plan that I am 100% confident in. How do I get it off the ground? I don't have friends or family who are able to help out financially to at least help me get this going.

hii...i see what the problem is..
one solution is to quit on this idea of "getting financing".
in america, people tend to bootstrap their ventures...this idea of "getting financing" somewhere via debt or equity is myth...it doesn't reflect the every day reality of how nascent small businesses get off the ground

entrepreneurs don't generally launch ventures by typing up a business plan and asking people for money

**nate_f2** · 01-08-2010 03:14 PM

Originally Posted by rogercbryan

Don't bring that garbage on here... She is looking for answers about her credit and you come in with that garbage... UGH!

Grants for hiring minority or disabled does her no good if she doesn't have the money to start the business...

Come on read her post and try to give her useful information!

When you have bad credit your not going to get out of that any other way than hard work and persistence. You tell me to give her some useful information and you havent posted one idea you bum. As a entrepreneur thats been working on my plan and financing for some years I have found out that if you dont have any capital coming in for yourself or a chunk of yur own money to help invest in a startup it is really hard to find anyone to give you money. Cut back on some spending, work hard, save a little bit of cash and I have learned that one good thing leads to another if you are really ambitious. For example prepaid legal on the side is bringing me in an extra $1000.00 or more a month for my business startup. If anyone is interested in what that is PM me.

**Encrypted** · 01-08-2010 04:03 PM

Originally Posted by akula

hii...i see what the problem is..
one solution is to quit on this idea of "getting financing".
in america, people tend to bootstrap their ventures...this idea of "getting financing" somewhere via debt or equity is myth...it doesn't reflect the every day reality of how nascent small businesses get off the ground

entrepreneurs don't generally launch ventures by typing up a business plan and asking people for money

That still doesn't solve her problem.. she needs money to get started, what would you suggest she do?

I suppose she could start out small, for example: if she were to start a daycare, start it in your house or apartment and then get a larger facility when the opportunity permits itself. Or if it's a retail operation; sell online and then open up a retail location when you have the money.

**jerseygirl** · 01-10-2010 10:20 PM

I have pitched my business plan to a few investors, all who seem to love it but eventually turn me down because of credit problems. I'm very skeptical about sharing my plan with a lot of people, in case they turn me down and steal my idea....even my ex tried to get his hands on it. So not only is it hard to find someone trustworthy to pitch my plan to, it's even more hard to get any financing. I work full time and am also a single mom of 3 with daycare bills and so on. It's really hard to set anything aside to put towards achieving my business goals.

**bizdev** · 01-11-2010 06:34 AM

Jerseygirl I feel your pain and frustration. I've been there as have the majority of entrepreneurs with a great business plan with seemingly no viable means of obtaining financing.

Have you had a chance to look over Preneuraholics.com (see below)? This new funding source launched only days ago. It is a peer to peer giving concept whereby entrepreneurs fund each other. While donors have come forth to express their desire to participate they have been asking for more projects from which to choose.

(There is still some tweaking left to complete on the site.)

There is an extensive FAQ section if you have questions or you can ask me here.

Good luck to you.

**rogercbryan** · 01-11-2010 09:03 AM

Originally Posted by jerseygirl

I have pitched my business plan to a few investors, all who seem to love it but eventually turn me down because of credit problems. I'm very skeptical about sharing my plan with a lot of people, in case they turn me down and steal my idea....even my ex tried to get his hands on it. So not only is it hard to find someone trustworthy to pitch my plan to, it's even more hard to get any financing. I work full time and am also a single mom of 3 with daycare bills and so on. It's really hard to set anything aside to put towards achieving my business goals.

You still haven't told us how much you need and what you need it for. I've started companies with $6500 loans, $250,000 partnership investments, and I've bootstrapped two with my own money. Give me an idea of how much you need and what you are looking to spend it on. I might have some ideas for you. This is never easy... but being on YE can help...

**jerseygirl** · 01-11-2010 01:03 PM

Originally Posted by rogercbryan

You still haven't told us how much you need and what you need it for. I've started companies with $6500 loans, $250,000 partnership investments, and I've bootstrapped two with my own money. Give me an idea of how much you need and what you are looking to spend it on. I might have some ideas for you. This is never easy... but being on YE can help...

I need $15,000 to get my business running. That includes fees for paperwork, legal documents, equipment, supplies, and so on. Any ideas on how I can obtain that kind of financing would be a huge help! I am ready to try whatever it takes.

**jerseygirl** · 01-11-2010 01:06 PM

Originally Posted by bizdev

Have you had a chance to look over Preneuraholics.com (see below)? This new funding source launched only days ago. It is a peer to peer giving concept whereby entrepreneurs fund each other. While donors have come forth to express their desire to participate they have been asking for more projects from which to choose.

(There is still some tweaking left to complete on the site.)

There is an extensive FAQ section if you have questions or you can ask me here.

Good luck to you.

I like the idea behind your website but it's very green. How many hits does the website receive on a day to day basis? What kind of marketing do you do to drive traffic to the website? Or is each person responsible for driving traffic to their project?

**bizdev** · 01-11-2010 01:19 PM

Originally Posted by jerseygirl

I like the idea behind your website but it's very green. How many hits does the website receive on a day to day basis? What kind of marketing do you do to drive traffic to the website? Or is each person responsible for driving traffic to their project?

Hits over the past 12 days: 113,000
Visitors: 950

Marketing has been going on for 6 months. Mostly social networking (Twitter, Facebook, many discussion forums). Also have begun incorporating localized press releases featuring individual requestors and their projects in their own communities. I intend to do a national press release which I've done with tremendous success for a previous business. However, I wanted to have a few more postings to feature. I also urge requestors to do their own marketing to drive friends, family and their own community to their projects.

**rogercbryan** · 01-11-2010 04:00 PM

Originally Posted by jerseygirl

I need $15,000 to get my business running. That includes fees for paperwork, legal documents, equipment, supplies, and so on. Any ideas on how I can obtain that kind of financing would be a huge help! I am ready to try whatever it takes.

You need to break this down

1- 100% Necessary Equipment
2- Supplies
3- Legal Fees and Paperwork

Once you have this broken down then break it down one more time. Maybe currently you are thinking you need to produce 100 sales/widgets a month to break even (if you had the full amount). What would it take to produce 10 sales/widgets. What type of equipment & supplies. Could you do that (this is a question for you)? You need to scale your business to your capabilities.

There are a lot of people who think... 'If I had $15K I could start a business and make a million!' The reality is that 90% of would fail because they lack basic business skills. I would do what ever it takes to produce 1 unit of what ever you are doing so you can test your abilities to make this happen.

You are going to have to scale this. Even with excellent credit you would have trouble getting a loan for a new business. You'll be amazed at what you are capable of doing with a little planning.

If this doesn't make sense or you think it doesn't apply to what you are doing then please email me rogercbryan gmail so we can discuss this in more detail.. I've helped a handful of YE's with projects like this and I know you said you didn't want everyone knowing your idea...

**bizdev** · 01-11-2010 04:22 PM

roger that's great advice.

I usually tell people if they don't have enough money to fund their business and they don't have access to funding, they need to scale back the plan. Start smaller then build up to your dream business. You need to be realistic if you don't have the means to go all in.

Even with an option like preneuraholics.com (see below), people should view this as an additional source. Not necessarily as the only way to go or not necessarily as the way to fund the entire project.