If You Can’t Get a Small Business Loan
Posted by servScene on June 30, 2009
Credit is difficult to get right now, especially for small businesses. If you can’t get a small business loan, but you still are determined to start your business, here are a few tips for making it happen without funding.
- Cut costs wherever you can. Perhaps that new computer, printer, and software package would have been a nice touch if you had gotten the funding you needed for it, but it might not be necessary. If you have an older computer you can put into business use for a while, do that until you earn enough in profits to buy the computer without funding. You can still claim it as a business expense by determining the secondhand value of the computer at the time you put it into business use.
- Sell your stuff to raise money. If you’ve cut your startup costs as much as possible and you still need money, it’s time to look at what you can sell to raise money. For instance, electronics and furniture are always sought after on Craigslist and at garage sales, so you may be able to raise a lot of money by selling what you don’t truly need. You can also sell gold jewelry for cash by taking it to pawn shops. If your business is successful, it will be worth this sacrifice in the long run.
- Try again later. Small business loans are not just for startups, and actually lenders are often reluctant to throw money at startups that have yet to prove themselves. You may have better luck getting a loan when you can show financials that prove your business is making money.