Starting a business when you are in debt

We all know this is the age of the entrepreneur. There are new business startups going live every week, and the digital economy has provided unprecedented opportunities. That’s all positive news, but this could equally be described as the age of easy credit and escalating debt. Credit card debt, student loans, store cards – most of us have a little personal debt. And some of us have a lot. The question is how does personal debt affect your aspirations towards starting up in business on your own? Let’s find out.

What is your starting point?

The fact that you are asking the question at all suggests that you probably have debt that runs to four or five figures – or maybe more. How serious a problem your debt might be for your new business aspirations depends on how much you owe, whether you are currently making the payments OK and how much income and savings you currently have.

In other words, to find out more about the debt management solutions you might need to put in place, you really need to sit down with a professional who does this for a living. They will be able to take you through different options such as refinancing, debt management plans and IVAs.

A business needs money

Whatever people say about low barriers to entry and start up costs being reduced in the digital age, any business still needs some funding to get it off the ground. There are more options open than there have ever been, and your personal debt can be a deciding factor in choosing the most appropriate source.

A business loan from a bank is the most common and simple solution for raising funds. Of course, they will look closely at your personal credit history, and if your credit rating is poor, they will probably show you the door.

There are other fish in the sea – some lenders specialize in dealing with poor credit ratings, as there are many, many people in the same boat. Naturally enough, they take a risk-based approach, meaning that if they are taking a chance on you, they want something back in terms of higher interest rates.

Alternative funding

In many cases, alternative funding options work better when your credit score is less than perfect. These include crowdfunding, peer to peer lending, working with angel investors or even seeking help and backing from family and friends.

The key to making a success of any of these is to treat each option with the same level of professionalism, in terms of creating your business plan and demonstrating why this is a sound investment. Angel investors are no fools, so if you treat every option, even your family, with the same attitude, you can’t go wrong.

Potential stumbling blocks

The other point to keep in mind is any impact that solving your personal finances might have on your ability to launch a business. A debt management plan or even an IVA is fine, for example, but if you opt for a debt relief order or you file for bankruptcy, it will affect your ability to establish or direct a company.


Can You Start a Business with No Savings?

There are literally tens of thousands of people on any given day who are considering starting their own business because they are sick and tired of working dead-end jobs with no prospect of ever making enough money to invest in the future. Retirement may be a long way down the road, but at this rate, they feel trapped in a life where they live from paycheck to paycheck just trying to make ends meet. These are the people who know that the only way up is to find a way out and many are motivated to make their own way out of this financial bind. So then, can you start a business with no savings? The answer isn’t quite as cut and dry as you might think. However, yes you can under certain circumstances. Here’s some of what you need to know.

There Are Legal Fees to Consider

The first thing you need to know is that if you are going to start a business, you will most likely need to get an occupational license, register your business as the kind of company you want to run (i.e. Sole Proprietorship, LLC, etc.) and then you may need business insurance. Depending on exactly what it is you intend to do, insurance may be a requirement. Each state has different requirements and fees and then there are county and municipal fees which may be payable upon starting a new business. Do you have enough to cover these fees? If you have no savings, the answer is probably not. Even so, there are ways to work around that.

Begin With a Solid Business Plan

Since you will need funding of some sort, the first step to take when starting your own business is to draft a solid business plan. Whether you are seeking financial backers or something like unsecured business loans from Lending Express, any financier will want to see how you intend to make the money to pay them back. Even loans are considered an investment in the future of your company, so you must learn to write a business plan that shows how you intend to organize your company and how you can then realize a profit great enough to pay back any loans while making a profit sizeable enough to stay in business.

How Much Investment Capital Will You Need?

One thing you might seriously want to consider is that old cliché, “Don’t quit your day job just yet.” Bear in mind that besides the startup costs you will encounter, you must keep a roof over your head and food on the table. While you very well may be in a dead-end job with nowhere to go, it pays the bills while you work towards building wealth. Perhaps you could start out slowly on a part-time, work-from-home basis in the beginning. Yes, it will be hard work, but you can keep the bills paid, if nothing else, while you launch your company. Once you have a solid foothold, it’s time to give notice. Remember that other cliché as well – ‘don’t burn your bridges before you cross them’. If you quit your job prematurely, the door may be closed for re-entry.

If you have established any kind of credit and are able to procure an unsecured business loan, then yes, you can start a business with no savings. The going may be rough, especially if you are no longer employed, but it can be done. Will it be easy? That’s up to you and the effort you put into it but be aware that at the end of the day, you are your own boss and you can determine your future. Your own business is not a dead end job and that’s the bottom line.


Why We Need Money

Money is primarily a medium of exchange or means of exchange. The whole idea is that one can trade for what they want in an exchange for what they have. Just like any other thing in this world, money also evolved and keeps evolving. From commodity money to coins, notes known as fiat money, cheques to bank cards also known as plastic money and now cryptocurrencies for investors, traders and casinos, click here.

Importance of money

We can compare money to food. It is literally impossible to survive without money. Everything now has a price tag, whether it is as basic as water or light! Our entire lives basically revolve around money. The reason why people are designers, doctors, and other professions is not only because they are passionate about these things but also because they need the money.

Some have even compared money to fuel. And truly it is an energy source that can power most things causing them to happen at a specific time. That is how great the impact of money is on the world.

It is not the tradition or culture that keeps a country going but rather the financial structure which includes money.

Ways of making money

There are various activities that are held so as to generate money for organizations. Sports like polo, horse racing and drag racing among others are a source of money for both nations and individuals.

Real money online casino gambling has been giving people the opportunity to win money for more than 2 decades now. The games are simple and play just like at land-based casinos. However, what has made the internet casinos so popular is that punters can deposit and play online casino games at low and affordable prices. The bets start from as low as $0.01 while one can win over a million dollars instantly.

Casino games have brought hope to people as now everyone has a chance at the “good life”. Getting the most expensive cars, expensive jewelery is no longer a dream as everyone has a chance to win big with real money casino gaming.    

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