Business Loan With No Credit
Would you like to have access to capital to fund your small business based on your business plan regardless of your credit and with no collateral. You must just prove your ability to repay the loan with a solid business plan, financial projections and the expertise or experience to execute said plan.
Funds are available from private equity lenders and venture capitalist to finance a viable business based on a solid business plan with a projected revenue to service your loan and become profitable. There is no minimum credit score. There is no collateral needed. There is no need to be in business for two or more years with proven cash flow track record. All you need to do is sell the private investors on your business plan and you can be funded.
Debt or Equity Financing
There are two types of financing available. You can choose debt financing which is just a loan. Or you can choose equity financing, which requires you to give the private equity investor a share of your company. This is simply selling stock in your company. In the short term debt financing is much more expensive. The costs is relative to the risks. If you are seeking capital from a corporation that does not evaluate your credit, requires no collateral and does not demand a proven track record, you must understand this loan will be very expensive.
On the other hand if you give an equity position to your company you owe nothing in the beginning, but in the long run when you are successful you will pay much more for an equity partner.
In either case the venture capitalist is betting on your success. Many people fail. Banks and traditional financing sources have a very low tolerance for risks and therefore their reward (costs) are relatively low.
Therefore, if you have a viable business plan that can be very successful with the right infusion of capital, consider venture capital or private equity investment into your company.
As an example of the potential costs a business might pay a private investor 33.33% of the loan amount the first year and a smaller interest rate (like 10%) for a five or ten year term. Those terms sound absurdly ridiculous and at first glance most businesses would reject that type of financing even with no other options. But, if you analyze the benefits and determine the profit far outweighs the costs you might consider this option. For example, I recently encountered a business plan that the owners needed to borrow $100,000 and would net $300,000 in year one and over $1,000,000 annually thereafter. Is $50,000 too much to spend to become a millionaire? If I could I would do that 10 times a week.
So weigh your options. Venture capital financing and private equity are expensive financing alternatives. Will your company be profitable enough to afford these options? Will your business qualify for any other means to raise capital? Only you can determine that answer. This is not the right option for everyone. Is it right for you?