Seven Alternative Sources of Capital for Setting Up a Business

December 19, 2009 · Posted in Bad Credit Loans, Private Investor, Private Lenders, Student Loans · Comments Off 

Is That Legal?
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Borrowing from banks is every small entrepreneur’s nightmare. One gets turned down for bank loans for a variety of reasons, including lack of assets, collateral and business experience. Don’t despair, however. There are several common types of alternative sources of capital for setting up a business available to young companies.

Savings and Investments

The first source you should consider is your own savings and investments. One disadvantage though of self-financing is that if things did not turn out the way you want them to be it will be your money that goes down with the ship.

Angel Investors

Angel investors are affluent individuals who provide capital for a business start-up, usually in exchange for ownership equity. These individuals are looking for a higher rate of return than would be given by more traditional investments (typically 25% or more). Read more

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Personal Loans With Bad Credit – Any Options?

December 5, 2009 · Posted in Advantages, Alternative Income, Bad Credit Loans · Comments Off 

Concern
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Christmas is around the corner, wild spending defies every logic and bills are being pushed forward, next years resolutions are to cut down on unnecessary goods and to be wise with money.

You fake a smile and try to be merry, deep down you only know how you are struggling to make meets end.

If things were not bad enough, your brother has asked you to lend him some money, so what do you do in such a situation.

Bad credit is a causing you concern because you were just about to apply for a loan.

If you have been a good customer for a long period and the banks have accounts of this, then instead of personal loans with bad credit you might try to look for an overdraft facility or an extension on your existing loan.

How bad is bad credit? Read more

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Credit Crunch – Not a Credit Freeze

December 12, 2008 · Posted in Bad Credit Loans, Capital, Financial Assistance, Financial Bail out, Financial Crisis, Focus on Profit, Private Investor, Private Lenders, Professional Investors · Comments Off 

Singapore Airlines Hostess
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First of all, it’s a credit crunch not a credit freeze!

Sure, banks are more cautious about their lending, but when were they not? The reality is that the majority of banks are lending, and to remain profitable they will continue to lend to small business owners. Those that understand the situation are acting now!

“Buy low, sell high”

With the current economic low, it is the best time to get financing at a low rate, with lower-than-ever requirements. Big banks like Citi and HSBC are making their decisions based on business credit scores, not personal fico’s.

Personal guarantee is a promise made by an entrepreneur to personally repay company debts if the business defaults. It is a way for banks to protect themselves, while reflecting the seriousness of the business owner to repay debts. Without a personal guarantee, they are thought to not believe in their business and are high risk. Small business owners don’t want to provide a personal guarantee if possible. Even if they are diligent about repaying debts, some unforeseen catastrophe may happen preventing a loan payment. Then the bank seizes personal assets. Read more

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