How To Get A Startup Business Loan With Bad Credit

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Are you a new business otherwise known  as a startup? Have you found that it's  

super difficult to find funding for a startup  and everyone is telling you it's impossible?  

Well, that's just someone's opinion. You  definitely can get funding for your startup  

even if you have bad credit. I'm going to tell  you exactly how to do it step by step. Let's go.

So, let's talk business credit. Many of you  do not know but business credit and personal  

credit are completely separate. As you know with  personal credit, there's 3 credit bureaus. You  

have Transunion, you have Equifax and you have  Experian. On your personal credit report, you  

have what we call trade lines. So, if for example  you have a mortgage or auto loan or credit cards,  

they will all show up on your personal credit  report and they will give you a credit score  

based on how you're using your credit. It's  called your credit utilization. Another thing  

that's really important on your personal credit is  how long you've had trade lines, how well you pay  

your bills inquiries and things like that. But the  big thing with personal credit is your debt ratio.  

And the thing with personal credit is that you  don't have to use it if you focus on getting  

your business. So, let's now talk about business  credit. Business credit is much different. Yes,  

you still have 3 credit bureaus. You have Equifax  business, you have Experian business but you have  

Dun and Bradstreet. Dun and Bradstreet is the  number 1 credit reporting agency for businesses.  

You can create a profile with Dun and Bradstreet  absolutely free but it is just for businesses. And  

the big thing with business credit that makes it  much better than personal credit in my opinion is  

instead of using your debt ratio and your debt  utilization as the big thing, they care about  

how well you manage your debt. So, if for example  you had a thousand dollar credit on your business  

credit and you used $800 of it, they would not  penalize you. They instead will reward you if you  

make your payments on time. Because when it comes  to business credit, they care about how well you  

manage your business. So, number 2, if you are  a startup, you need to go ahead and start the  

business. Meaning, you need to name your business,  you need to get your business registered with the  

secretary of state. And that means get an LLC an  S Corp or a C Corp. I cannot advise you which one  

of those structures. You should choose if you need  to talk to your tax professional or your attorney,  

please do so. But make sure you get your  business registered with the secretary of state  

because it's super important when it  comes to actually having a business.  

Once you do that, go ahead and get that EIN that  stands for employer identification number. You  

can go right to irs.gov and get that number for  free. You also want to get a professional website,  

a professional phone number and a professional  email. That means you want to get an email not  

like abcbusiness@gmail. You want to get an email  like noelle@abcproperties.com. In other words,  

your website and your email should have the same  domain. That way people will see that you're a  

serious business and you're not using some free  email account to set up your business. This is  

an awesome way to start showing credibility and  showing that you are serious about your business  

and they will fund your business if you do so.  The next thing that you want to do even if you  

have bad personal credit is go ahead and get a  business checking account. I cannot stress to  

you how important it is to get a business checking  account. Even if you have bad credit, you can get  

a business checking account. I literally made  an entire video that teaches you how to do so.  

I'll put a link below in case you have bad  credit and you're having trouble getting a  

business checking account. There's tons of banks  out there that can help you do that. Next, you  

want to go ahead and get your Dun and Bradstreet  number. You can do this for free. Go to dnb.com,  

go ahead and register your business there.  There's a small process where they're going  

to mail you a code. You're going to wait for  that code to come in the mail. Go back on their  

website and then you will set up your business  profile. Trust me, they're going to offer you  

something where they try to sell you a thing to  get you a business dnb number but do not do it.  

You can get your dnb number absolutely free  and start building business credit with them  

without spending a dime. If you're getting massive  value from this, make sure you go ahead and smash  

that subscribe button. I'm giving you free content  right here and this is amazing information that  

most people do not know. Let's keep it coming.  Now that you have your Dun and Bradstreet,  

now it's time to start building business  credit. This is going to allow you to unlock  

lots of money for your business. Go ahead and  start with vendor credit. If you have bad credit,  

you can get vendor credit regardless of your  credit score. There's companies like Uline,  

Grainger, and Quill. In fact, I'll give you a  whole little download below that you can click  

on that teaches you all of this and even has some  links in it. Those companies will allow you to  

set up business profiles. You can order things  from them and they will give you what's called  

invoices. Either they will do net 30, net 60  or net 90. In other words, they will let you  

buy their products and you will not have to pay  them for 30, 60, or 90 days. But the real benefit  

is they report to Dun and Bradstreet. You  literally can use these accounts to start  

building your business credit and get stuff that  you need for your business all at the same time.  

Once you get that vendor credit established, they  will start to report those to Dun and Bradstreet  

and then you can move on to the next step. After  vendor credit, you can start to get store credit.  

Literally, there are tons of stores out there  that will lend to businesses without checking  

your personal credit score. Especially if you  wait a few months after ordering those vendor  

credit lines from Uline, Grainger, or Quill. Those  tradelines will be on your business credit report  

and then you can get credit cards from stores like  Walmart, Costco, Dell, and many others. Including  

gasoline companies like Chevron and Shell. They  literally will give you business credit cards  

in your business's name without checking your  personal credit. You can also get secured business  

credit cards. When you go to your bank to get that  business checking account, if you have bad credit,  

they will offer you the option to get a secured  business credit card. This was where you will take  

$500 for example, you give it to the bank and they  will give it to you on a business credit card. As  

you use that credit card, make sure you make the  payments on time and also ask them which credit  

bureau they report to. Most people will report to  Dun and Bradstreet but some of them will report  

to Experian business or Equifax business. Either  way, you want to make sure they are reporting. And  

last but not least, I'm going to share with you  a super-secret new improved way to start getting  

business funding right now for your startup even  if you have bad credit. There's a company called  

Accion. that's A-C-C-I-O-N. Look them up.  They're a community development institution.  

Meaning, they're designed just to lend to  minority-owned businesses, women-owned businesses  

and startups just like you. And they don't require  that you have a really high credit score. In fact,  

they will loan to businesses that only have 500  credit scores. Literally as low as 525 for some  

of these loans. So, check them out. Additionally,  there's one more company I know of called 5-star  

processing. You can go to 5-star processing  and even with a 300 fico credit score, they  

will give you merchant processing and they will  give you business loans in your business's name.  

It's an awesome way to start getting funding for  your new business even if you're a startup. So now  

you know exactly how to get business funding even  for your startup even if you have bad credit. Make  

sure you like this video. Again, comment below and  let me know what it is that you're working on. I  

want to make sure that I'm answering all of your  questions and giving you all of the information,  

all of the resources, and all of the tools  that you need to be successful. Smash that  

subscribe button so that you can get all of this  content for free. This is Noelle. To your success.