If you have bad credit, you might fear that you will never be able to secure the commercial real estate financing that you need to make your dream of owning a business come true. You could be wondering how you will ever be able to improve your credit and achieve your goals without starting up your business, but luckily, there are options. These are a few things that you can consider doing if you need a commercial building loan but don't have the credit score to back it up.
Consider Alternative Financing
Don't assume that a loan through your bank is your only option. There are a lot of lenders out there who specialize in offering financing for those who are looking to go into business. Some of these lenders are a bit more lenient about bad credit than the big banks are. Continue shopping around with different lenders to see what is available.
Write Up Your Business Plan
Have you written up a solid business plan? Have you thought about all of the things that could go wrong and what you will do if they happen? Some lenders will look more at your business plan than at your actual credit score. Take the time to write up your business plan, then show it to a few people that you know. If they still have questions, then you should continue working on your plan until these questions are answered. Then you'll know that you have a strong business plan that might be appealing to potential lenders.
Look for Investors
Have you thought about seeking out investors who will own a small percentage of your business? If you secure a few good investors, you might not need a loan at all. If you still do, your loan will be smaller, which will make it easier for it to get approved. You can talk to friends and family members to find out if they are interested, or you can search for investors among the people in your local community or online.
Consider Leasing Instead
One good idea is to consider leasing a commercial building. Then, you'll be able to start your business now, and you can work on building your credit score and saving money to invest in a commercial property of your own later.
As you can see, there are multiple financing options for you to look into if you have bad credit. Don't give up on your dream of owning a business just yet; instead, follow these tips, and you might be surprised by what you'll get approved for. Contact a company like NAI Norris Beggs & Simpson for more info.