Member-only story
Starting a business is exciting, but funding it can be a hurdle. In 2019, I opened my business and initially funded it myself. While I thought that was necessary, I’ve learned that lenders often want to see a track record of income.
One such instance involved an SBA loan. I was told by a business coach that I wouldn’t qualify because my business was new, especially since I’d closed a previous venture and shifted directions.
This advice left me wondering if they had explored all SBA options.
Do Your Research: Not All SBA Loans Are Created Equal
Intrigued, I decided to research SBA programs myself. What I discovered was eye-opening.
There are programs for businesses with even low credit scores (around 580) as long as the loan is used for approved purposes.
My credit score, which I’d worked hard to build to a healthy 680, seemed to be a non-factor in some cases.
Credit Score is Important, But Not Everything
Yes, a good credit score is valuable. But it’s not the only factor. Many new businesses start without a long credit history.
The key takeaway? Don’t let someone else’s limited knowledge hold you back. Take charge and do your own research.
