I want to get a loan of around $20,000 to start a small business. My credit score is 630, probably too low. What do I need to make this happen?
Different lenders have different criteria and different programs. What you need is to find a willing lender. That will take a solid business plan and collateral. What do you have to secure the loan? Is it marketable?
Banks exist to make loans. They charge interest according to the risk they accept and they want to know that the loan will be repaid. If your score is low because you have had credit problems, you may need an additional borrower to make up for that weakness. If you have too much debt, you may need to reduce your debt before you can borrow.
Inquire with your local Chamber of Commerce to see if there are state or federal programs to assist a small start up business. Ask lenders about Small Business Loan programs that may be available to help you, and ask the Small Business Administration.
BankingQuestions.com is a free service made possible by the generous support of our advertisers. Advertisers are not responsible for site content. Please help us keep BankingQuestions.com FREE by supporting our advertisers. When you see an ad for a product or service you may have an interest in, click through to learn more.
Accounts
Article
Q&A
Podcast
Video
Blog
Discussions
PDF
Powerpoint
Different lenders have different criteria and different programs. What you need is to find a willing lender. That will take a solid business plan and 