Most of the startup owners usually face the unpleasant situations, namely refusal in a working capital loan for a new business. The reason is usually the same – unstable credit history. Even though you have outstanding finances management skills, your credit history speaks louder. If you haven’t established an impressive or quite adequate history, you will more likely to be treated like a suspicious candidacy.
Still, getting a working capital loan for a new business is possible. Some people rely on their good credit on the personal accounts, provide impressive business plans, and offer collateral. Such things definitely increase your chances to get approval.
The other way to get a so-called working capital loan is to apply for the equity funds. The main disadvantage of this variant is that equity funds usually deal with stocks. That’s why they are also called stock funds.
Most of the experts recommend start up owners applying to private resources such as friends, family, or saving. Personal Money Services won’t judge about the relevance of such variant. Everyone decides independently how to get money for a new business.
The last possible variant is to negotiate with a lender directly. Some lenders are ready to consider the background of the client and it facilitates the deal.