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Does having bad credit stop you from opening your own business?

By admin on February 7, 2011

I want to start a small business and all I need is a step-van and some grocerys(well,and a few other things) to become a food vendor.Yet,because I am a white male,I would not qualify for the governments microloan.I have a bad credit rating,so I cant use credit cards.But what if I formed an LLC and applied for business credit-would that work? How else can you start up a business if you have no cash,no credit,and the government does not help white males?

Posted in | Tagged , , , , , | 3 Responses

3 responses to “Does having bad credit stop you from opening your own business?”

  1. Lori A
    Lori A
    February 7, 2011 at 10:31 am |

    It doesn’t stop you from opening the business, it will make it nearly impossible to get credit.

    No matter how you form it, as long as it is a young business and basically a sole proprietorship (even if taxwise its an llc), your personal credit is required as a guarantee. Once you have a proven track record with your bank, they will begin to consider extending credit to you.

    There are lots of resources for small business start ups and being a white male doesn’t disqualify you from such resources, having been irresponsible with your credit is the reason you won’t qualify.

    Stop being a racist and sexist person and grow up! You made your mess yourself. Skin color had nothing to do with it. Now you need to live with the consequences of your own actions.

  2. MJ
    MJ
    February 7, 2011 at 10:46 am |

    Some would consider it a hurdle, especially those you’re asking for a loan.

  3. Skip
    Skip
    February 7, 2011 at 11:23 am |

    Stop complaining about your credit it is your fault that you are in the situation you are in. You are the one responsible for paying your debts you promised to pay, but didn’t.

    Now about being a white male and can not qualify for certain loans, poor baby.

    Starting a LLC will not give you the instant credit rating you are seeking as credit is established over period of time like with an individual. This is a good suggestion however as it will take the liability away from you and you can build your LLC company credit up.

    There are several ways you can start your business, one is to get grants, most don’t require good credit, just a good business plan along with how the business will benefit the neighborhood and guess what they are for anyone not just minorities.

    If you still want to get one of the loans you described, you can always get you a minority member as a partner either silent or active. Make sure he/she has good credit and understand the reason you are taking them on as a partner. Most of these loans indicate that a minority LLC of company must be a 50% owner,consider a woman also, they are considered minority.

    Stop complaining about your situation you put yourself in find a way to accomplish what you want to do. Stop making excuses and do what you want to do. Ask your friends if they want to go into business with you especially if you have a minority friend or female friend.

    Some of your friends might even want to invest in your adventure and become silent partners, give them shares in your LLC or incorporated company. Advertise in the local newspaper you are looking for a partner for a commercial adventure.

    I hope this has been of some use to you, good luck.

    “FIGHT ON”

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