Is it possible to set up your own business with a bad personal credit rating?
Oct 04, 2007 by LadyMoonlight!! | Posted in Small Business
Fitting interested.
Due to a lot of problems we've been living on a severely low income and so haven't been able to keep up repayments on our credit cards, loans etc As a follow-up our credit rating is destroyed. We've been to CAB and are making token payments to our creditors which is all we can do right now.
We keep being told that way out of financial problems and the livelihood dead end my other half is in is to set up our own business and work for ourselves. However as we have no capital, and I presume no bank would advance a business loan to someone with a bad credit rating, this would be an impossibility (squat of a lottery win). My partner was even refused a Career Development Loan because of our credit rating.
Just interested in case there are any ways around this I might not be knowing of.
Texture a Ltd company with the name of different people as directors,for example your mum or your dad as the directors of the company, who don't have a bad credit history, but the share holders will be you and your whisper suppress. There is no guarantee if the bank will allow you facilities, but depending on your business and the bank manager, this may work.
gordonmother | Oct 04, 2007
Fettle a Ltd company with the name of different people as directors,for example your mum or your dad as the directors of the company, who don't have a bad credit history, but the share holders will be you and your save. There is no guarantee if the bank will allow you facilities, but depending on your business and the bank manager, this may work.
gordonmother | Oct 04, 2007
How to start up my own business with previous debt?
Jan 29, 2009 by ♥ Baby Boy due 14th Nov ♥ | Posted in Small Business
I would like to start up my own business in dog walking & dog trouble throughout the day & weekends.
I have a good full time job at the moment with a good pension & healthcare but would really like my liberation to run my own business & not keep contributing my ideas & efforts to line the big cheeses pockets!
I have a car on finance, a loan & credit card & I am comfortably paying these off at the two shakes of a lamb's tail but if I start up my own business do banks give you a business loan to help you pay off your existing debt to help you with your new business?
Most people have to funds their own start ups. My husband and I had perfect credit and little debt. He had written up an extensive business plan. But it's rare you'll find a bank to take the hazard.
We took a second out on our house and used credit cards. Once we got the ball rolling, opened up business accounts, etc., we were skilled to get a line of credit with the bank.
But even after a year of the business paying for itself we could not get a general loan to wrap all the debt together. You have to be in business long enough for it to start showing up in the business credit reporting agencies. That can take a while.
Not to recognition, they are not going to want to give you a business loan to pay off personal debt. Have you tried other means to wrap all that together on the personal side?
Until you put a decent business plan together they won't even consider anything, so that should be your first step.
jkc | Jan 29, 2009