A friend of mine who “needs” a 250k business loan and has bad credit asked me the other day if a person with bad credit could get a business loan for 250k without collateral. Now, I’ve borrowed some money for business use in my day, I haven’t borrowed 250k from a bank for a business idea or working capital though. So what did I tell my 250k seeking friend?
How to Get a Business Loan for 250k With Bad Credit
Well I told him that I believe in possibilities, and that finding a 250k business loan would happen a lot faster if he just ruled out getting it from a bank. Seriously, If you think you can go and get a quarter of million dollars from a banker and you have less that perfect credit, think again. Right now it’s pretty tough getting a 25k loan with good credit from a bank.
I didn’t get into details with my friend. My personal feeling with most business loans is that they aren’t nearly as necesary as they seem at time. This is true for most of the times I thought I need a big infusion of cash, but not always.
If you think you have a solid idea then I would seek out private investors. If you can’t find a group of private investors who think a 250k dollar small business loan makes good sense, then maybe it doesn’t?
Give that some thought….
Most good businesses or business ideas will at least partially seed themselves. It you think you have an idea worth a two hundred and fifty thousand dollar business start up loan, then prove you have one. One smart way to do this is to prove you have a 5k dollar idea. Show some results. Get some cash moving. Ask yourself what you could do to lend some credibility to the idea in terms of showing prospective lenders that your on to something. If you idea is at all scalable, this shouldn’t be a problem.