Many folks have suffered greatly in these recessionary times. Indeed, some have lost their jobs or been forced to take lower paying jobs. Unfortunately, many also faced the prospect of having already depleted their rain day funds. Then they were faced with mortgage payments, credit card debt, and maybe even college money for the kids.
Faced with this bleak forecast, many have turned to wanting their own small business to see them out of debt and out of the prospect of continued want and need. Starting up a business of course requires some start up funds. Approaching a traditional lender, they were confronted with some pretty strict requirements facing applicants with bad credit. Anyway, the majority of banks and credit unions require collateral.
They were faced with the dilemma of how to obtain a substantial personal loan, say ,000, under great duress. Not only the economy was down, but they were down, too, with poor credit. There are some ways that they could have faced these problems.
BBB Helps Non-Traditional Lenders Lend a Hand
Since traditional, brick and mortar financial institutions aren't apt to make such loans, especially for those with bad credit. A good place to start to look for a non-traditional lender is to look for a lender in the Better Business Bureau (BBB) business directory. Lenders are listed along with their BBB ratings, making it very easy to cull the bad apples without even approaching them.
Find Good Lenders Through Online Financial and Business Forums
Being a member of an internet personal or business finance forum, a borrower can glean valuable advice from other members of the forum. If a forum member has started a thread seeking advice from former customers of lenders who specialize in unsecured loans, much important information can be forthcoming. Aside from information regarding good or bad lenders, the searching member can learn much about the ins and outs of the personal loan industry in general.
Shopping Is the Best Bet When You Go Online
There are varieties of personal loans almost as much as there are varieties of lenders. The market is rather flooded right now and it offers a borrower a chance to shop widely and wisely to find the best interest rates, the lowest fees, and the most comfortable terms for repayment. Turnaround times are a consideration as well. Many offer almost instant approval with cash in the bank account within 24 hours.
Should you find a lender, using forums, checking the BBB ratings, or just shopping on line, with whom you feel you can do business, understand what they may ask for. You will need to prove your identity, you will need to furnish your social security number, you will need to prove residency, you will need to prove employment or income. Sometimes the lenders can validate your credentials using online resources. If not, you may have to fax or send scanned documents to the lender. The whole process is not very rigorous.
Whatever happens, just be sure you have thought through your financial situation and be sure you are confident you will be able to pay the loan. Good luck with your enterprise.