Despite what you might have heard to the contrary, it is entirely possible to get working capital loans for small business in Alpharetta, even if your credit is not the best. The Small Business Administration (SBA) actually mentions on their website that bad credit is a common problem with small business owners, particularly in light of the financial crisis a few years ago.
Unfortunately, as common an issue as it is, it is still more difficult for small business owners to get funding than it is for medium- and large-business owners. If you’re a small business owner in search of funding, here are some things that you can do to increase your chances.
Have a Clear Plan
When you’re trying to get a small business loan, no matter what your credit looks like, it’s vital to have a clear plan in place of what you’re going to do with the capital. When you know what you’re doing with the loan, it will be more easily determined what type of loan structure will be best for your situation. The best way to come up with a plan is to look at the current status of your business and take a realistic look at your future business goals and predictions. When you are able to see your business realistically you’ll be able to strategize your loan and get a more accurate figure of how much you need to borrow.
Research Different Types of Loans
It might be difficult for you to obtain traditional bank loans, so one thing that could be helpful is researching alternative loan structures. Talk to some alternative lenders about more creative avenues you can go after. You may qualify for other loan structures through lenders who have experience working with small business owners in situations similar to yours. You might already know but some other government programs offer lending programs to help small business owners achieve business goals, some specifically for women, veterans, and minorities.
Another option that might help you offset the risk of bad credit is to offer collateral. By putting up your own business assets, you lessen the risk to the lender. In the event of a default, the lender can seize your collateral. However, with a strong business plan in place and a well thought out realistic vision of your business’s future, this could be a good option as well.
What do you do when working capital loans for small business in Alpharetta are your best option but you aren’t sure you qualify? Follow the steps above to help you get the necessary funding, even if your credit needs some special attention.