Nowadays everyone has a story as to why their credit rating is in the 500’s or lower. Divorce, lawsuit lottery mentalities, bankruptcy, student loans in default and the list goes on, the point is, few people have that prized 700+ credit score anymore, so if you’re an entrepreneur, how do you raise capital to start a business? Before we talk about how to raise capital, let’s go over how not to raise capital.
Don’t believe the myth that buying an aged shelf corporation will allow you to open $100k’s in unsecured lines of credit without a credit check, this scam is becoming more and more prevalent as the economy worsens and the con-men come out of the woodwork. Don’t use credit enhancement because, um well, it’s fraud and the government is cracking down on that black hat credit enhancement method with a vengeance.
Stay away from people that are acting as brokers for individuals with high credit ratings that are willing to ‘cosign’ for your loan. When you get down to the soup and nuts of the transaction you’ll find that there is always an upfront consulting fee that is paid regardless of whether you are funded but they convince you to pay this fee by dangling the individuals credit report in front of your face boasting a 760 FICO, but at the end of the day they have so many inquires on their credit report no bank will touch them with a ten foot pole.
With all these scams infecting every aspect of the sub-prime funding genre of finance are there any legitimate ways to raise capital if you have damaged credit? The answer is a resounding YES! Companies that are taking more of a proactive role in assisting their client’s fund raising process are becoming more widespread as companies have less options for funding.
Some corporate branding and publicity firms that focus on start-ups and corporate expansion campaigns have devised databases of global investors and funding sources that are more interested in your business experience and product/service than they are with your credit score. In large databases like that focus on alternative finance from a global perspective you’ll find angel investors, private investors, liberal lending hedge funds, factoring companies exploding at the seams with cash and countless other finance solutions that are seeking profitable opportunities to invest. Don’t sell yourself short of you have poor credit, you still have options.
Want to raise unlimited capital without a credit check? Are you a start-up that needs access to capital but don’t can’t find a co-signer to help? You need Private Placement Memorandum with an offering circular that screams to investors. Look into getting a private placement memorandum written for your company and watch investors come crawling out of the woodwork!
Do you want a legitimate, quick and easy way of taking your startup or small business public? Do you want to talk to a consultant that will help you decide which path is best for your company? Call Princeton Corporate Solutions today at 267-233-0183 or visit our website at http://www.princetoncorporatesolutions.com there are many ways to take your company public in an affordable manner that will achieve your goals and begin raising capital quickly.
