Starting your own business can be challenging, especially when you don’t have a lot of money to invest in it. Some people who have already started a business find that they need a loan, but don’t have any money to offer as a down payment. Luckily, there are still ways to get the loan that your business needs.
Offer collateral to the bank . You may not have a down payment, but you can use any assets you own, such as a car, boat, home or even the business itself, as collateral. This is also true for car title loans, which are offered by companies that specialize in giving loans to people who own their vehicle. They will hold the title to your vehicle as collateral in the event you do not repay the loan.
Ask your family, friends or co-workers if they have the money to lend you. You may be able to get a personal loan without having to pay interest if you know someone who trusts you enough to lend to you. It may be beneficial to write up the terms of the business loan with the help of a lawyer, or at least have it notarized. That way, all parties involved will be aware of the specifications of the loan.
Check into your local payday lending company to get a fast and easy loan. There is no down payment required, and the requirements are simple. You can get a loan for up to $1,500 from most companies, depending on a few factors. Browse online companies to find ones that specialize in business loans. Check with the Better Business Bureau to make sure you pick one that is legal and reputable.
Payday loans are easy to get, but come with high finance charges. They can also cause many to fall into a trap of having to get another loan to repay the first one, and so on, so be cautious with this type of loan.
Talk to a credit union about getting a business loan. A credit union is designed with its members in mind, and you can usually get a loan with one even if you have poor credit and no down payment. Funds typically come from the members and private organizations, so receiving a loan may be easier when you take advantage of their services.
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