Since we opened our doors in 2008, we’ve had the privilege of helping thousands of small and mid-sized business owners get the working capital loan they both need and, candidly, deserve.
And along the way, some of the most memorable interactions we’ve had have been with the owners of start-ups, who invariably ask us the following question in one form or another: “Help! I’m a start-up. How do I get a business loan with no credit?”
The Bank Position: Just Say NO
Before answering this very important question, it’s worth highlighting why the banks just say NO when it comes to approving business loans for start-ups.
Essentially, since the Great Recession of 2008, banks – or more specifically, their investors, shareholders and board members — don’t want to take on any risk; at least not when it comes to loaning funds to small and mid-sized businesses. And so, in order to shield themselves from even the slightest possibility of loss, they demand that all loan applicants have a stellar business and personal credit score.
Of course, this begs the question that incredulous start-up business owners across the country have been asking for years: But I don’t have credit – not even bad credit! I’m a start-up business owner! How can I get a credit history if my bank won’t give me a loan in the first place?
The standard bank answer to this question is along the lines of “thanks for your inquiry, try us again next year.”
Of course, “next year” to a start-up business owner might as well be “never,” because without more cash flow right now, there won’t be a next year. Heck, there likely won’t be a next month!
The Mulligan Funding Position: Let’s Do This!
At Mulligan Funding, we live in the “real world,” which means that we know that many start-up business owners don’t have a credit history — at least not one that the banks consider substantial enough.
That’s why, when we assess a working capital loan application from a start-up business owner, we focus on aspects such as:
- Average sales and revenues over the past 12 months
- The sustainability of the business in its marketplace
- The commitment and character of the owner
We know from years of experience that these aspects provide us with a solid, reliable basis on which to make a smart lending decision. And more times than not, we have the honor of saying to start-up business owners: Let’s do this!
Talk to our experts today and learn more about our transparent, customer-focused business financing programs. We can help your start-up stay alive — and thrive!
Call Mulligan Funding at 855-326-3564 to discuss your financing options today!