Personal & Business Startup Loans For People With Bad Credit

According to the good folks at FICO, the credit scoring developer, approximately 25% of the US population qualifies as having poor or bad credit. For these people, borrowing money from a bank can be a time consuming and frustrating chore – if they can even qualify. Once a person’s credit dips below the 600 level, they are no longer considered a “prime borrower” to lenders and thus are considered a "high-risk borrower" and fall into the subprime category.

What Is A Bad Credit Loan? Is it different than a payday loan or short-term cash advance?

To meet demand, the credit industry created more flexible and relaxed borrowing guidelines for people with no, limited, fair, poor and bad credit. The resulting loan, also called a payday loan or “cash advance”, is typically a short term unsecured personal loan with higher interest rates and fees. Advocates support these loans citing they are fast and relatively easy to obtain and can help people deal with life’s unexpected financial emergencies. Critics claim that people pay too much in fees and interest and risk spiraling further into debt if they can’t repay the loan on time and in full and/or borrow repeatedly (read about the “Hamster Wheel effect”).

How Do Bad Credit Loans Work?

A bad credit unsecured loan works when a consumer (with less than “good” credit) agrees in a contract that they will repay the principal loan amount, plus and interest and fees, in short order – typically on or by their next payday. In most cases, a borrower needs to be employed with payroll records and have a checking account at a US bank. They pre-date a check when applying online and funds are then automatically withdrawn from their checking or savings account on the pay date.

All lenders are directed by law to disclose all the fees and interest penalties beforehand without any hidden conditions. Loans are not available in all states and borrowers should be sure to understand all terms including any fees or charges associated with late payments, the non-payment of a loan and the repeated use, renewal, and extension of any loan. The general borrowing range for this type of loan is $100 - $1000 USD. The Federal Deposit Insurance Corporation (FDIC) and the Consumer Financial Protection Bureau (“CFPB”) are two federal consumer governmental agencies that oversee various aspects of the finance and credit markets.

Startup Funding

Startup Funding - Funding to turn your vision into reality.

Startup Funding is provided to foster a concept, develop the initial product or service and carry out the associated marketing.

In most cases, it is provided by angel or private investors - a primary source for emerging businesses needing to get started.

If you fit this description, what terms are you willing to accept for the investment? ##Are you willing to share control with others?

##Are you willing to share confidential information with prospective investors?

##Do your financial statements and records accurately reflect the operation?

##Are you willing to give up a large ownership stake in the company?

##Does your business have the ability to deliver an investment return of at least 30% to investors?

##Is there a clear path to potentially exit the investment within three years?

##Is the total market size at least $1 billion?

##Does the business have the ability to be one of the top three competitors in its industry?

##Have the technology and business strategies been validated through past experience or independent experts?

##Are you willing to accept the recruitment of additional executives to the business?