Your new business doesn’t have a business credit score yet, and you don’t have great personal credit. Even if you source some of your own funding through friends, retirement accounts or personal savings, that money will only get you so far. If you’re in need of working capital, but don’t have credit, here are some suggestions.

Social Lending/ Crowdfunding

Crowdfunding can be a popular way to get an influx of money without giving up equity, but it does have pitfalls. You should work with your attorney to make sure you’re staying within all the guidelines that govern crowdfunding. Social loans are another way to get unsecured capital. They’re more like personal loans, coming from private lenders. Often, the terms and conditions are very favorable.

Micro-Credit Unions

Smaller credit organizations may be another option if you don’t qualify for traditional bank loans. These non-profits are sponsored by the Small Business Administration and can often help with smaller loans to get your business off the ground and start a business credit score. It may be just what you need to finance your first couple of months.

Use Your Assets

If you have invoices or purchase orders, you may be able to leverage those assets to get financing while you’re gaining traction in your industry. Lenders base credit on the client, not your business, which can give you the advantage you need.

Equipment Lenders

Lenders who work with machinery needed in your office may have loans that can help you set up with equipment while you’re trying to get your business going. The loan is protected by the collateral, the equipment, so the lender has less reason to care about your personal or business credit score.  

JNI Lending offers financing for small businesses. Contact us today and let us find you funding, even without a strong business credit score.