Do you have bad credit? If so, this article on how to qualify for a franchise loan even with bad credit may interest you. But please don’t be offended when I say I hope you don’t get the loan.
The number one reason I see for business failures is the lack of sufficient capital. I have seen several people invest their entire life savings only to have their business fail because they lacked the money to survive the first 6 to 24 months. These overly optimistic business owners scraped the money for the initial loan but had no room for error. When the business didn’t cash flow right away they were doomed.
My advice is simple for those that have bad credit and want to start a business. Work on improving your credit and accumulate cash to invest in your business. You should plan on having at least double the capital you believe you need. If you have the idea you just cannot pass up at this time you may need to go raise capital through a rich uncle, an angel investor or venture capital. If you are investing in a franchise operation as discussed in the article you can probably forget about venture capital. It’s not likely to happen.
I am not saying every person with bad credit shouldn’t consider starting a business. But the odds of business success (a difficult task under the best of circumstances) go down measurably when the potential business owner cannot manage money well and does not start out with adequate capital. A much better article would have been about how someone could improve their credit and increase savings to start out a business on solid footing. Providing loans to those that cannot afford them is not the recipe for business success. After all, it’s the same mentality that caused the mortgage crisis our nation currently faces.