Small Business Loan Scams
Question
Due to the economic crisis is it possible to get a business loan?
Since march i have applied to every retail , food mart in los angeles, sent thank you notes for interviews etc to obtain a second job to pay off my delinquent debts to improve my credit. In the interviews i am not finding that of course there are 60 people that applied to the positions and they actually may only have 5 places to fill!! I call the managers weekly and resubmit applications. I must say the companies call but i have found the companies at the time may be able to hire and then they receive a freeze. The economy is so bad. My credit is 595 on experian. I cant obtain a second job to pay off the delinquent accounts but maybe once a month i placed the money i saved to pay off the small bills that never should have got on my credit. . I have a great business plan for a franchise and i am obtaining info to open under a c corporation. HOw can i get a business loan if i can't improve my personal credit fast enough. I really am tyring to pay the delinquent loans and i have the pay to delete requests ready to go and all the credit addresses. . Due to the economy i just can't get the second job needed and i have sold everything i could to help pay the items at hand ( it really helped! ) i have nothing else to try! I tried prosper and i thought your score had to be 540 but they told me i couldn't apply to get the loan before i even posted? I have market research, business plan and a consultant and we are all just waiting to see if i can get financed . ARe there any suggestions to get a business loan. I have maybe 9 items on my credit but score is still low. I have actually got things off my credit ( thanks to online help!) i research the bad credit loans but 90 percent are scams! Please sincere help please. The franchise i am opening is in medical field. Help!! I am still looking for a second job as we speak. NO one has any money to loan as well I have tried friends and family but all are in a bind. I applied to the credit union and of course they said no. I don't know what else to do and i am really trying to get my credit right. I have begged for more hours but my own job cut back so overtime will not be issued until the first of the year so i am paying the small bills i have right now . Lets do a bit of editing here. I have a degree, in management as well as training in health field. That is still not helping the situation obviously. The bills i am paying are small but my question is hypothetically after the recession will it really be hard to obtain a loan after bringing my score up. The jobs are not out there for a second job.
1 year ago - 3 answers
Best Answer
Chosen by Asker
Obviously the first order of business shouldbe to repair your poor credit and bring up your credit score. Then try to understand what banks are looking for when granting business loans so you stand a better chance of getting the loan Some banks extend what they call "small business lines of credit" often through credit cards. Those are easier to get and can be based on your credit history alone. They typically are up to $100,000. For example, Wachovia's has various business lines of credits www ... Their business line of credit can even be approved overnight, However, if you're applying for a loan and if it is a big amount, banks and even the SBA www ... may consider other factors aside from your business credit: - A business plan explaining what the business is - Your background and experience in the business -- in my experience, this is KEY in the eyes of the bank because they want to make sure that you know what you are doing and that you can make the business work. If you don't have any experience with the business, have someone on board that knows the business to give banks assurance that someone will guide you - Your credit factors because it shows your dependability and how well you handle credit. They will do a credit check on you and poor credit history may be frowned upon, or even reason for the disapproval of your loan application - Your collateral. Banks, even SBA guaranteed loans, want the borrower to show collateral. They want to be guaranteed that somewhere somehow they can get payment from you -Condition or terms of loans. Banks would want to know three important things: "How much money are you requesting? What will it be used for? and For how long will it be needed?" Banks oftentimes prefer to approve loans for items that can be identified, has lasting value, and can be repossessed and sold if things fail. - Equity investment as banks want to see that you believe in your business enough to invest in it Aside from banks I suggest you consider microloan providers. They typically fund up to $30K Read about the SBA Microloan Program www ...
by imisidro
1 year ago
Asker's Rating: 
Other Answers
With your low credit score, delinquent debt and no proved record of operating a business, NO you do not qualify for a business loan You will need to seek out private investors.
by tkahrs12122- 1 year ago
There is no way on earth you are going to get any business loan or other sort of biz financing. You won't even qualify for a franchise if you have cash to pay for everything! You have lousy credit, are seriously in arrears on bills, have no management experience, no biz experience, no medical training, no business degree.... What do you have? Since the kinds of second jobs you are applying for only have 12 applicants per opening, you have to make yourself more competitive. Find out what you can about those selected vs. you and see what you can do to improve the odds. There are companies today getting well over a 1000 applicants for a single opening. Keep looking.
by ibu guru- 1 year ago