Here’s How to Launch a Startup When You’ve Got Bad Credit


Got a business idea that you think would be great, but lacking the funds to make your vision a reality? Lots of hopeful entrepreneurs find themselves in this predicament. The reality is, if you’re going to start a business of any kind, you’ll need some money to get it started and keep it operating until you generate revenue. The only problem is, for most individuals wanting to start a business, their personal finances are in shambles meaning they have very little capital and poor credit from the very beginning.

Fortunately, launching your startup might require a bit more elbow grease, but it doesn’t mean it’s impossible. Below are a few suggestions on how to get your startup up and running when you have very few financial resources and bad credit.

Crunch Your Budget

Before you look elsewhere, check your personal finances. Though it may appear at first glance that you don’t have the means to start a business, you may be surprised. Review your spending habits, bills, and debts to see where you can cut back. Driving one car instead of two saves on gas, paying for insurance annually instead of monthly, reducing energy consumption, eating out less, cutting cable, and other solutions can free up cash you need to start your business.

Bad Credit Loans

If you have bad credit, your chances of getting a traditional loan are limited. Lenders typically only want to deal with individuals who have good credit scores and assets to use as collateral. A better option would be to apply for payday loan alternatives for people with bad credit scores They provide you with more time to repay the loan and can often give you as much as $1250. Although not meant to be used as business financing, they can serve to fill a gap in your personal finances while a startup is being put together. With eligibility requirements like being 18, having a valid checking account, and meeting income minimums, you shouldn’t have a hard time getting the cash.

Sell Items for Money

Time for a little “spring cleaning” around the house to get some extra cash. There are things in your home that you have no use for that could generate a decent amount of money. Go through each room and gather everything from your socks and shirts to your old cell phones and appliances. You can set up a yard sale or use an app to sell your things online. Depending on how much stuff you have, you could have enough to sustain your business for a few months.


If you want to raise capital for your business without having to pay anything back, crowdfunding is a good choice. You create an account explaining what your business is, how you hope it will help others, and how much you need to get started. Online users find your profile, and if they like what they read, can donate to your business. Unlike other investors who would require a stake in your business or interest on their investment, crowdfunding money does not have to be repaid.

Side Money

You may have to start a side gig before you can start your business. Side gigs are a lot easier and affordable to launch and can help you get enough cash to fund your business. You can become a rideshare driver, shop for groceries or run errands for interested parties, start a blog, design websites, or even get paid for your opinion.

Apply for Assistance

Most hopeful entrepreneurs aren’t aware of the many resources there are to help them get started. For example, did you know that the federal government offers grants to those wanting to start a business? You should look into those opportunities as grants don’t have to be repaid. There is a set of qualifications and a long list of competition, but, you could get thousands to sustain your business if you’re chosen.

It’s true, in order to have a successful business you need to have the backing of cash. If you have a business idea that you want to fund but you have no cash and bad credit, there is still hope. Consider some of the ideas listed above as a means to accumulate a large sum of cash that can be used to tide you over until you start bringing home the bacon on your own.

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