The fastest way to get your business fund it with bad credit
I am going to share with you the fastest way to get your business fund it with bad credit. I’m going to give you the quick and dirty on step-by-step how to get this done with a detailed explanation so that you don’t miss a thing.
And lastly, I’m going to share with you some awesome companies that you can get funding from today that are working and looking for people like you with bad credit to giving business funding too.
Okay. So, the first thing that you’re going to need to do before you go get business funding with your bad credit is you’re going to actually have to pull your credit.
I’m going to need you to actually know an assess your situation and assess your credit report. What is going on? When you say bad credit, what do you mean? What is your credit score? What is on your credit report? What is it making your credit bad, okay? You need to know this because we ever start before you make any requests for the businesses, you got to know what your personal situation is.
It may not be as bad as some think. And there are many situations where people think they have a credit score that cannot get them funded and they do. As long as you have a credit score like above 500, I have seen people get funding. And I’m not talking about 10 years ago or 20 years ago. I’m talking about like last month, okay?
This is happening today. But you have to know what your credit score is, what’s on your credit report, what is up there. And so, I’m going to give you a quick link to my FICO because yes, there are plenty of places that will give you your credit score. But a lot of them are not accurate.
So, you know, just giving you an example. Yes, I do like, for example, Credit Karma. But that is not even close to what your FICO score is. I’ve seen just too many discrepancies. I’ve seen where is just way too far off. And again, they tell you that that’s not your FICO score.
They literally tell you it’s a vantage score. Unfortunately, it is just not close enough of a model to what a FICO score is. So, sometimes they’re telling you your credit score is a number. And usually, I’m going to be really honest with you and this is what it was for me.
Credit Karma is way low. Like they’ll tell me as I have like a 680 and then my FICO score is like 740. Like they are super low a lot of times. So again, I’m not saying that they’re always inaccurate. I don’t know or speak for anyone else. But I’ve seen Credit Karma so many times that I’m just telling you to use my FICO and I give you a link, okay?
Again, if you want to use Credit Karma just to kind of see what’s up there, totally okay. Just giving you the best thing so you have the best information for you. Okay. So, let’s talk about the difference between personal credit and business credit. Because I need you to understand this.
So, with personal credit, you know that they are looking for things like how well you pay your credit cards, how much you use on the credit cards, how many trade lines you have, how old they are.
Just all of these different things. And it’s totally okay. Again, that’s their system. But we’re going to be talking about what you do with business credit. Because your personal credit and your business credit, they don’t actually have to intercede, alright?
I have lots of business credit cards and none of them report on my personal credit report. And this is what you want, okay? Now, again, if I defaulted on some of them I think they would. Then put it on my personal credit. But as long as I’m making my payments, even if I pay them late, they do not report to my personal credit.
So, that is the real big benefit for this. Additionally, once you start building that business credit, they increase those credit limits a lot faster than they ever would on the personal credit side. The limits are a lot higher and they don’t penalize you for using them, okay? So, when you use your business lines of credit, you use your business credit cards, you use your business loans, you are not penalized.
As long as you are making your payments, they are really happy to keep making your payments and just let it go. But on the personal credit side is so weird. They’ll give you a credit card and then when you use it, they’ll lower your credit score. Like, I just do not understand it I don’t like it.
And I’m just being honest with you. I’m telling you to forget about that. Let’s talk about the real thing which is business credit. So, now that you understand the difference, okay? You’ve assessed your personal credit score, fine, you need to know what’s up there. But 2, we’re going to focus on the business credit.
So, let’s talk about how you start building that really quickly. You can build your business credit really quickly just by getting some vendor accounts and then up-leveling getting some gas cars and then getting some business credit cards.
That’s one way, okay? You can go through that process. I actually have an entire post where I teach you how to do that there’s going to be a link below. But I’m give you another way where you can actually get some business funding because that’s what this post is for.
You want business funding with your back credit. And I’m going to tell you how to do that. So, what you’re going to need is a business checking account, okay?
Because this process is going to take you a little bit longer. If you’re not going to fix that personal credit, you’re just gonna lead to how it is, you just want to keep moving, we’re going to talk about how to get you some subprime funding, okay?
There are lots of lenders out there that are lending money to businesses. A lot of them, you know, it’s a lot of money out there for businesses. Again, not talking politics. Don’t care about who’s the president. But just following the money and being very honest with you.
A lot of the money and a lot of the government money a lot of the resources are being pointed towards business. So, let’s talk about how you get that. You need a business checking account, okay?
So, if you do not have a business checking account, I literally made a post, if you still have bad credit, I made you a post on how to get a business checking account with bad credit.
Go ahead and read that post. Again, there’s a link in the box for you. Make sure you read that post as well. And then let’s go ahead and get you three months’ worth of bank statements, okay?
Once you have 3 months’ worth of business checking account statements that show some money going into the account they see some transactions, I’m going to tell you about some lenders that want to see those 3 months and they want to lend you some money.
So, there are 3 major banks out. Let’s just say banks because they are definitely not banks. But there are 3 companies out there that have lots of money. They are PayPal, Square, and Kabbage. And that’s cabbage with a K.
Those 3 companies right now are lending money and unbelievable amounts of money. I’m talking about 10, 20, 50 thousand dollars to very new companies, okay? Now, again, I’m not going to pretend that they have the best interest rates because they do not.
But they will lend you this money for your business in your business’s name. And that is so important. And again, they have the money for you, okay? Many times, PayPal, you set up a PayPal business account, you set up a square business account, you have the ability now to swipe cards and accept payments into your business.
You send out invoices. And once they see that you have some invoices going, after about a few months, they will send you some offers, okay? I literally had a student. He had very very bad credit. As I said, I know for a fact it was less than 600. And he did what I told you. And he went ahead and he got the checking account, he had the 3 months bank statements he was doing some invoices.
He had a few other businesses that he knew he sent them invoices, they sent him invoices and he created some transactions in his business. And once he started doing that, he was rewarded with an offer. He got offered $10,000 from PayPal after only 3 months, okay? I’ve borrowed money from PayPal have tons of students that I borrow money from PayPal.
There is a great source. Square, square capital is then is what they call it. So, they have Square where you just know the little chip and they can take the card you can send invoices. They have exploded as a company.
They now have payroll, they have HR, they have benefits. Square has really grown. And one of the things that they added was where they were loan entrepreneurs small businesses money. And they’ve collected a lot of fees from swiping people’s credit cards and you know taking a fee.
And now, they’re turning around and they’re lending that money to the small business owners. So, it’s an amazing program. PayPal, Square and then Kabbage. cabbage with a K. I think with Kabbage, you do need to have been in business for 6 months.
When I looked up their requirements, but again, their requirements are public. You can go ahead and you can go on their website and they will tell you how long you have to be in business.
Some of them say a year. Some of them say 6 months. Some of them don’t actually say at all. Some of them to tell you you need 10 thousand dollars, 5 thousand, 2,500. And again, not very much.
That’s just the money coming in. Now that you have to have $10,000 in the account. Just over a 30-day period. That money came in. It doesn’t even have to stay there. Just had to come in. So, again, I don’t want to make this post too long. But just letting you know, there are options out there and have students with really really bad credit.
Getting this money for their business. And what they do is they turn their personal credit around. I’m going to give you one last little thing because whew! This is life-changing. Here’s the secret, okay? So, once you start getting those business fundings, okay? You got a line of credit, you have a credit card, you have a loan. You want to then start fixing your personal credit.
So, once they give you that business credit card, for example, you may already have a personal credit card. So, you’re already paying on that personal credit card. It’s already $25 a month or $1,000 a month or whatever it is. You literally can take the business line of credit that you got or the credit card and start transferring that debt and then paying the business credit card.
And I’m always going to tell you this. The key is you must pay people, okay? If you have bad credit now, I get it. Things happen. I have bad credit. I don’t have it now but I had bad credit. I did. And I have a lot of students that come to me and they have bad credit. And it’s okay. Who cares? You can fix that.
That is not a permanent stamp on your head bad credit. You can have bad credit and you can fix it. And I’m telling you, you literally can fix your personal credit with your business credit.
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