For entrepreneurs who want to start his or her own small business or for entrepreneurs who have already started a newly established small business, probably your biggest obstacle is how to fund your business. Whether it’s for initial startup funding or the need for additional capital for an existing business to cover inventory, payroll, marketing or other expenses, it is always about needed funding.

I will always tell any potential client truthfully, that if you are in the position to obtain funding from a bank, then that should be your first option to your business funding needs. I would definitely advise that you take the bank loan or bank credit line, usually a HELOC, if it is available to you. Terms and interest will possibly be lower, depending if you meet the banks strict guidelines.

But if you cannot meet the banks normally strict requirements and qualify for a bank loan or line of credit, you should take a look into alternative lending. And if you are a startup business with no financial history, at least 2 years of bank statements, no collateral for a term loan and evidence of deposits, how great are your chances that the banks will take a risk on you and fund your new business venture? And in regards to funding via applying for an SBA government loan, you have to remember that SBA loans take both time and a lot of paperwork to complete. Also an SBA loan is a secured loan. You will be required to have collateral and personal guarantees from all principals involved who own 20% or more of the operating company. I realize that some financial professionals advise against taking out a loan to start a business. I give as an example Sam Walmart, founder of Walmart Stores. He started with one store using a $20,000 loan from his father-in-law and the rest is business history. Without funding, your dream of starting and owning your own business will remain just that, a dream.

For startups with no collateral, a possible low credit score and no financial history, you may find your best option, if rejected by the banks, will be to apply for a personal credit line/cards program from an alternative lender to obtain capital for your startup business. Once your business is up and running and making enough profit for you to repay your initial credit line loan amount down, you will then have other future funding options you can apply for to expand your business for greater profits.

If you do, as a startup, select the credit line/cards option, also known as “card stacking”, it may help knowing that this type of funding using these special type credit cards often come with 0% interest for periods up to 18 months and credit lines can go as high as $100,000, sometimes higher, depending on the lenders decision. And yes, there are still certain requirements that must be met. After all, the lender is taking all the financial risk on a new business that the client believes will be successful and will be able to repay the loan. The requirements for the credit cards, that you also will be able to pull actual cash from, are not as intensively strict as the banks. The alternative lenders basically look for certain credit score numbers and your utilization of your personal credit cards.

And if by chance you are hesitant to apply because your credit scores(FICO) are lower than the required number required, know that alternative lenders will accept a higher credit score of a family member, a friend, a partner(silent or active), who agrees to use their higher credit score to qualify for the credit line/cards and take responsibility for the loan. Whatever arrangement of payback you make with them for their getting you the line of credit/cards is personally between you and them.

It is probably much easier for a startup business to find a person with an acceptable credit score than finding a private investor(s) willing to loan you actual large sums of money to start your business. They’re not investing hard cash, but only agreeing to be responsible for the loan. That is something they have to understand and you should explain to them that they are in fact responsible for the loan with the lender in case of a default.

I am an ISO, which stand for Independent Sales Organization. An ISO is a term used for a person who works independently with various alternative lenders who provide various forms of alternative loans and credit lines for both established businesses and startup businesses. Please note that I do not charge any upfront fees to submit your application and required additional info required to connect you with any of my lenders. I am solely paid by the lender for the referral I present to a lender that leads to a successful deal between the client and the lender. So if you would like to explore the programs of the alternative lenders I represent and submit a no obligation application, with a soft credit pull that will not affect your credit rating, to fund your business, please contact me via email at: or go to my website at and fill in the short submission form on the home page. I will contact you as soon as possible by phone or email, if you wish, to speak in more depth about the alternative loan or credit line/card programs my lenders offer to get your business the funding it needs.
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