Secured Personal Loan and Bad Credit
Unsecured business loans are obviously better to get as you donít have to risk your own home or personal assets, but they tend to have a higher interest rate charge and, for someone in your situation, would probably be impossible to get, so donít waste your valuable time going down that route; the only other possibility to consider would be guaranteed secured loans if you can find somebody who is interested in becoming a partner in your business and is willing to put up some sort of collateral to guarantee the loan. But starting up a business as a partnership, opens up another minefield to negotiate.
A secured personal loan, bad credit lender will initially be suspicious of you starting your own business so the business plan preparation has to be well thought out and presented with confidence; market research that supports your business idea is probably crucial as the lender will want hard facts, not speculation, if they are going to risk investing some finance in your business. If you have a large amount of equity in your property, you might even be able to buy a new car at the same time as buying the business, but caution is advised Ė there will always be additional unforeseen expenses when starting your own business and banks / lenders suddenly become very ruthless if you canít meet the agreed payments.
There are a lot of sharks out there, just ready to pounce on a small business loan, bad credit person, and what may seem like an exceptionally good deal could have some nasty clauses buried in the small print of the contract. Always get your solicitor to check over the terms and conditions of any small business finance agreement, whether it is for an unsecured business loan or a secured bank loan.