Starting a business with bad credit

Jack24591

Hi , I have recently been given the opportunity of a lifetime to have a small investment In a company that I have been working for for the last 6 years . Over the years I have worked with this small company and have worked closely with the owner helping to build it to a really good position. He recently decided to expand and open another site and he gave me the opportunity to invest into the company to help get my foot into owning my own business . 

This is where is issue lies . I had been looking into loan options and funding but my credit rating isn’t great . Long story short back in 2017 I went through a rough breakup and had some shared debts unfortunately all in my name and I fell into a situation that led to one of my credit card accounts defaulting. Since then I have been working hard  to clear the debt and have been making continuous payments and have not missed a payment since 2017 when this happened .

when I check my credit score now it’s worked it’s way back up to about average but I’m guessing because of the default that’s why I’m struggling to find a loan .

I don’t know if anyone else has had a similar situation , it’s very frustrating as I can afford to make payments each month and I’m in a good position personally now 

my question is what can I do or where else could I look for funding because I’m running out of time 

macman

Forget your credit score. It's a fictitious number that lenders cannot even see. What matters is your credit history. If you had a default on that in 2017 then it will remain visible for 6 years, which means sometime in 2023. 
Unfortunately that means that mainstream lenders will not want to go near you, so your only option may a sub-prime lender. 

Edi81

How much are you talking about? If you can afford the payments then how much do you have in savings?
are you a homeowner? Is there any possibility you could release equity from your property?

Grumpy_chap

Jack24591 said:

Hi , I have recently been given the opportunity of a lifetime to have a small investment In a company that I have been working for for the last 6 years . Over the years I have worked with this small company and have worked closely with the owner helping to build it to a really good position. He recently decided to expand and open another site and he gave me the opportunity to invest into the company to help get my foot into owning my own business . 

This is where is issue lies . I had been looking into loan options and funding but my credit rating isn’t great . Long story short back in 2017 I went through a rough breakup and had some shared debts unfortunately all in my name and I fell into a situation that led to one of my credit card accounts defaulting. Since then I have been working hard  to clear the debt and have been making continuous payments and have not missed a payment since 2017 when this happened .

when I check my credit score now it’s worked it’s way back up to about average but I’m guessing because of the default that’s why I’m struggling to find a loan .

I don’t know if anyone else has had a similar situation , it’s very frustrating as I can afford to make payments each month and I’m in a good position personally now 

my question is what can I do or where else could I look for funding because I’m running out of time 

The credit score is an indicator that only you can see.  Lenders can see the credit history - i.e. the default.

Have you approached a broker to whom you can explain the situation around the default and maybe get that considered in a slightly more favourable manner?

Even ignoring the default, this is a business loan that you are after and will likely be at higher rates than personal loans.  Any lender is likely to want much more information:

• Business plan
• What percent you are putting into the finance?
• What equity you can offer against the loan as security?
• What are the current Director's plans?  
• How geared is the existing business to which you would be buying into?