A recent article about a small business lending program in Iowa that has no credit history requirement. This program is meant to help entrepreneurs start their businesses without having to worry about the hurdles of putting together an application for loans and other traditional requirements.
Is it possible to open a business without a credit history?
Iowans living in the state of Iowa can now apply for loans without a credit history by using their “personal earnings statement.” This declaration of income is designed to help those who have been turned down on loans due to their lack of a credit history.
Iowa entrepreneurs don’t need a credit history to open a small business in the state. They can get started with a $50,000 loan from Iowa’s Business Development Loan Fund (BDLF). There are three primary eligibility requirements for this fund: a net worth of $50,000 or more; no tax liens or judgments; and proof of ownership. This program is attractive because it allows new businesses to start up immediately on their own terms with limited liability.
How can you start your small business loans without a credit history?
In order to qualify for a small business loan, you will have to submit a credit application. If your credit score is low, you might not be able to get approved for the loan. However, there are ways that you can still start your small business loans without a credit history. One way would be to apply for an online loan with PayPal, then use PayPal’s payment platform and offer the service once it starts generating revenue.
Business owners can start their loan process without a credit history by using the Business Owner’s Loan Corporation (BOLC). In order to qualify for this program, the business must be completely owned and controlled by an Iowa resident. BOLC also offers business loans for locations outside of Iowa but that are still in the United States or Canada.
The benefits of starting small businesses without credit
Starting a business is not easy. The constant learning curve and lack of income are too much for many people. Iowa small business loans help alleviate the burden by giving individuals with limited or no credit history a chance to start their own enterprises. These loans require the collateral of the owners property and the personal guarantees of their loan agreement.
Starting a small business is not as simple as it sounds. You might have to do research, market your product, and build a team before you can even start. However, one thing that Iowans can take for granted when starting a new business is that there are no credit history requirements for Iowa small businesses loans.