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This is a great common challenge to many new entrepreneurs who have no credit history: startup business loans. Banks typically do not like to extend credit to individuals with no credit history outside of a projected profits and loss plan, and in today’s shaky economy, getting a business startup loan can seem like a very daunting task. Fortunately, there are a number of good avenues that you can pursue for solid startup business financing.
While big banks are not going to help you very much with your loan search, you may have some good success with credit unions or smaller bank branches. Both of these types of organizations are extremely useful, as they do not have to deal with the same amounts of overhead and advertising as the large banks, and can extend credit at lower interest rates that they do. These organization are also much more flexible in their lending practices, and are more willing to be flexible to good sales pitches that might fall outside the regulations of larger banks.
You may also want to consider taking the route of a government loan. The SBA is an excellent place to find loans that might not be available anywhere else. They offer a number of special programs to people of various demographics, including women, minorities, veterans, the disabled, and they also offer a wide variety of no credit history startup business loans. Many of these loans are offered as Microloans, which are small loans that are usually in the amounts of $35,000 or less. While this may sound very small even for no credit history, startup business loans such as these are extremely useful as they can be used in conjunction with each other in order to total a single large business loan. Getting involved with the SBA has helped a large number of people get businesses off the ground that they would never have been able to otherwise.
There are always a number of avenues to take, as long as you are willing to look in the right places.