Ask Efficio a Business QuestionQuestion:  What are some good sources of capital for someone with not so good credit?

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Sherese:  Depending on what you mean by not so good credit will determine the sources available.  Most funding sources will want to know that you can handle your money and that you’re responsible with it’s uses.

If your credit score is 550 or lower then I would consider focusing on generating sales the best way you can (or get help here) and working a part-time job (depending on your cash-flow needs) while repairing your credit.  It would be very time consuming to find a funding resource with this credit score.  By the time you finish meeting with multiple people, submitting paperwork, finishing a comprehensive business plan, and justifying your intentions, you probably could have sold a substantial number of clients and made a substantial contribution to a business savings by working a part-time job.

Now this all depends on your business and what you do.  Most of the time you need money to make money.

If you have a credit score 560 or higher then you want to determine if your business is a good candidate for funding and based on the resource you use what is required to obtain the necessary funding.

Regarding resources:  Unfortunately those organizations that can provide funding for your situation are being cut and are being replaced by stricter programs.  To find out more try the Small Business Administration’s micro-lending program, and local micro-business centers (you can go to and do a search on micro-business centers in your area).  They normally have tons of programs for those individuals with not so good credit.  These sources are a good start to begin your research, but make sure you understand the requirements to get the funding.

Bottom Line:  Take the time to save some money, repair your credit, and determine the best way to generate sales.  Once you’ve shown a track record with your business it will be easier to secure funding with not so good credit.

What I tell my clients…let me show you how to generate cash on a consistent basis without the need for loans!

To your success…Sherese

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