Let me introduce myself this is my first post. I may be new to this forum but I’m not new to business so I thought I’d post something that could hopefully help you. So I wrote a Basic guide how to get financing for your business.




#1 way The traditional way difficulty level: Moderate

The one we all know you go to a bank. Get financing. You need the basics.. The three cs. Collateral credit and capital. Most banks do require that you have a credit score of 640 from Experian one of the three major credit bureaus, the others being Transunion and Equifax. Getting your credit above 720 is critical with any loan. Not just for approval but high interests rates. If you’re just starting out the best thing to do is get a credit card and get another line of credit maybe from a department store or something like that. In the state of Wisconsin you can actually build strong positive credit just by paying your electric bill on time. Paying your 2 lines of credit for approximately 24 months can get you a credit in the 700 easily if you have no collection accounts. This is where people usually get in trouble is their late payments and not paying things and it going to collections. Collections are ranked by level of intensity. Delinquency payments on your credit report is ranked in levels which determines your credit score. The highest is an R- 9 these are your charge-offs and Bankruptcies and judgments. These can dramatically affect your score by taking it down by at least one hundred points per delinquency. The lowest are R 3 these are your late payment can lower your points by 30 per delinquency. Try to keep your credit cards at 80% available if possible. When I do my loans I have approved some people who had credit scores in their low 600 but they had to have had been working for at least 3 years. Stability is very important when trying to get a loan. Don’t show the lender you’ve had too many jobs or too many residences. One time a lady came in my office and asked for 500,000 loan so I asked a few questions and gave her an application. She said” Hey I need another application to fill in two more slots for my place of residence in past 4 years. I just looked at the her saying to myself the nerve of this woman. I wanted help my but I couldn’t. There were five slots on the application already wow. Obviously she was denied and she had a credit score of around 640 so stability is crucial when getting a loan.

If your score is below 640. You should try credit counseling or education. I recommend you try fixing your credit yourself it’s free of course and just takes more time and persistence. If your credit is really low or you just don’t have time to send out lots of letters. I highly advise credit counseling service the ones I recommend is sky blue credit or Lexington law.com they took of five of fiance’s13 charge offs in 90 days so I can conetest to that. Never work the credit repair companies that require upfront fee. The new consitution states that they cannot charge first fee until 30 days AFTER first they start working.

#2 Peer to Peer Lending Difficulty Level Easy:
I’m a loan officer for the past 15 years and I believe Peer to peer lending is the way of the future.
Peer to peer lending is the way of the future. It eliminates the stress of going into banks or credit unions and its easier to get approved. The basic credit score for peer to peer lending is 640 and just have a job that’s it. How it works is investors invest small slices into many borrowers so they keep their risk low by diversifying. For example Jane wants to borrow 25,000 to start her own avon business. The process would get approved to the program and list her loan to the investors. Many investors would then invest into Jane’s business in slices of $100, $200 or $1000 etc until her loan amount is fulfilled to the 25,000. Loan amounts usually get fulfilled in a decent amount of time usually a month sometimes longer and some in a couple days it really depends on the person rating and what the loan is used for. The only downside is you can only get up to 35,000. lendingclub.tk

#3Goverment Grants & Loans Difficulty level Hard:


Getting government grants and loan can be very beneficial if you can get them. Sometimes it requires a lot of time and re applying but most of the time it because people don’t know how get a get them. First of all trying to get a loan for a start up is very hard because your business has to fit within certain business types. Think about it for a second why would the government give you a loan to open a beauty shop how does that help the government or it’s people yes it may be able to create jobs but it doesn’t directly help the government missions. If your trying to open a business in energy it could funded because we’re moving more towards a green economy, or if your business is in Exports . A little secret the economy is doing really bad if you have business in exports these seem to be the easiest loans to achieve. But it does make sense though going back to my college economic days exports strengthen our economy because it regulates the supply and demand law. Exports pumps money into our economy and help us to live. Others include Science and Research and Agriculture. If you have a business in agriculture you could have it made. I suggest you check out grants.gov or sba.gov. for more details. If you need help getting small loans or loan approvals I do work pro bono. Contact me at metts02@gmail.com or call me 561-727-7245. Hope this helped.