You may be wanting to go into the tech business, and have a great product or service that will change the industry. Perhaps you want to hop into the tech investment sector where your money will work for you like that trading or mining cryptocurrency. Funding Your Tech Startup with Bad Credit is a challenge but doable.
Whatever business you have in mind you will likely need credit to finance your activities. Even though there is business credit out there, a lot of this depends upon your personal credit score, and if you have bad credit, it might be virtually impossible to get your business off the ground.
So how do you get the financing you need? Today, we will go over this in more detail; let’s get started!
Looking Beyond Traditional Lending
A lot of people tend to seek out traditional bank loans, credit cards, and bad credit loans as a means to finance their business needs. However, studies have shown that traditional lending is only one-quarter of the available options when it comes to financing. The other three-quarters of lending options come from another alternative source, which includes:
- Micro Lenders – This is a relatively new industry as several non-bank lenders will loan out $5,000 – $25,000, which is typically found online. Some of these companies report to the credit bureaus where others do not. It’s best to shop around for terms and rates, but some of these microlenders include sites like Prosper, Zopa, and Count-me-in. You also have the option to search www.microenterpriseworks.org to look at non-profit organizations for business owners with bad credit.
- Grants – There are surprisingly quite a few grants out there when it comes to businesses of all kinds. Typically, it’s hard to find a list of real grants for businesses, but sites like Fundera Ledger have taken out the research, providing articles like 106 Small Business Grants.
- Crypto Financing – Cryptocurrency has significantly gone up in value since its inception. Many people who were once enthusiasts are now large entrepreneurs who have poured themselves into this growing industry. This is far different from institutional lending as Bitcoin lenders can hedge their own risk with crypto futures. There are several crypto lenders that will typically let you borrow for new business ideas, crypto-trading, debt consolidation, and other projects all at low-interest rates.
Other Sources for Tech Startups
There are other important aspects of your tech startup that you will have to deal with that you might not have to be aware of. Many startups depend on software, education, and miscellaneous subjects, which all can be a massive headache, to say the least. The more free resources you have the better, but that being said they should be high-quality resources.
It’s also important to get a range of ideas and advice on a regular basis from authoritative sites from those who have been in the tech business for years. These could be online websites like that of Wired to Feedster, which stay on top of the latest trends within the industry.
When it comes to tech startups, it’s hard to get the ball rolling. You need resources along with financing, and if you have bad credit, it can be frustrating if you have been turned down by traditional lenders. However, there is good news as there are a variety of other options available from free resources to microlenders, grants, and crypto-lending to get your tech startup up and running.