Financing -- Loans/Unconventional Loans?
QUESTION: Hello. Where would you recommend a person go if they have a hard time getting a loan? Basically an institution for an unconventional loan? Do you know of any such places? Thank you.
ANSWER: it depends...
I need to know more about your situation, what is the amount and purpose of the loan, do you have any collateral and how is your credit rating?
Are you employed and how will you make the payments each month?
---------- FOLLOW-UP ----------
QUESTION: What is the amount and purpose of the loan? The purpose of the loan is to put it towards transportation and starting my own business. Right now, I do not have a car, and I am in dire need of transportation. Additionally, I need a boost in helping to get my business started. As far as the amount; the largest amount they would allow.
Do you have any collateral and how is your credit rating? Well, my credit rating is not good, and no, I do not have any collateral.
Are you employed and how will you make the payments each month? Currently, I am not employed, and I am a college student. I was hoping they would allow me to pay off the loan once I graduated and found secure employment.
You are not alone, there are many folks in the same situation, today.
Unfortunately, bankers have been trained to look at your situation and tell you that you do not qualify for a loan.
However, you may be able to go the friends and family, route.
This is humorously referred to as the three "f's" - friends, family and fools...
Seriously though, you may have some relatives or friends that may be willing to loan you money to buy a used car or maybe even loan you a car to use until you get on your feet.
For a business loan, and I am sure you have heard this previously, you will need to prepare a business plan. even if not fancy, get your ideas for a business written down and start talking to friends adn family about it. If there are business people in your community that you can approach and ask for their ideas or feedback, some might develop an interest in assisting you, maybe even investing in your business, if they think you are passionate and capable of being successful.