Starting Up a Business

[sleepgrazed]

Me and my cousin just finished a formal grooming program because we want to pursue a dog grooming business. We are converting a portion of our yard into a salon and we have consulted my colleague (an accountant) for the business legalities. However, one of the most substantial start-up costs for a grooming salon is the purchase of equipment and the money we have saved for it is not enough. So we are thinking of getting a loan but we both have no credit, as they say it is a struggle to get a loan if you have no credit. We are are likely to face higher interest payments and be offered smaller loans. Are there lenders that gives loan with poor credit history? Where should we go for a loan, bank or credit union?

[Freedom]

You will need to 'shop around' for offers, interest rates and such. In general, the best offer will be at the credit union; but you can't be sure until you go in and find out what each facility has on offer for products.

As for equipment, you should:
- look on craiglist in your area
- post on freecycle for your area
- look at www.petedge.com

[mon]

So proud of you both! I just know you will find a way, never listen to negativity and follow your dreams. You can achieve anything you set your mind to absolutely!!

[Karen]

Is there someone who might cosign a loan for you? That can help while you establish good credit. To build credit, start by taking out a small loan, one you know you can repay easily, and on time. And there are credit cards you can get that are 'starter" cards - just be very, very careful with them. Make an appointment and talk to the Small Business Association in your state or county. And they may even be able to hook you up with a retired former business person who can act as a mentor.

[sleepgrazed]

You will need to 'shop around' for offers, interest rates and such. In general, the best offer will be at the credit union; but you can't be sure until you go in and find out what each facility has on offer for products.

As for equipment, you should:
- look on craiglist in your area
- post on freecycle for your area
- look at www.petedge.com

Thank you for the tips! We really appreciate it!

[sleepgrazed]

So proud of you both! I just know you will find a way, never listen to negativity and follow your dreams. You can achieve anything you set your mind to absolutely!!

Thank you! Really surprised we made it this far. So great to have a lot of contacts both locally and online. We are getting a lot of positive vibes and we are also getting a lot of tips and advice. Really feeling the love here

[sleepgrazed]

Is there someone who might cosign a loan for you? That can help while you establish good credit. To build credit, start by taking out a small loan, one you know you can repay easily, and on time. And there are credit cards you can get that are 'starter" cards - just be very, very careful with them. Make an appointment and talk to the Small Business Association in your state or county. And they may even be able to hook you up with a retired former business person who can act as a mentor.

We figured as much. An aunt offered to be a partner which is great because she is providing "some" additional funding. She also has an account our community credit union and from what I hear, their rates are better than the bank where I have an account. Anyway, I am not really sure how they are different. I was told that it is easier to get a loan for bad credit with a credit union? Is that correct? I checked "loan for bad credit" in google and I am a bit encouraged - BUT - things are going the way they should ...

[Karen]

We figured as much. An aunt offered to be a partner which is great because she is providing "some" additional funding. She also has an account our community credit union and from what I hear, their rates are better than the bank where I have an account. Anyway, I am not really sure how they are different. I was told that it is easier to get a loan for bad credit with a credit union? Is that correct? I checked "loan for bad credit" in google and I am a bit encouraged - BUT - things are going the way they should ...

You should avoid those "loan for bad credit" people, as they can tend to have predatory rates and bad terms. Definitely check with the credit union, and as you aunt has an account there, maybe she can go with you, just so they know you are connected to the community, etc.