Funding for women business owners is available, but it isn't always easy to get. Most funding options are in the form of loans, which can be a challenge for those with bad credit. Still, there are ways a woman can get start-up funds when she has bad credit. If you can prove you have the experience necessary to run a business, you can get the money you need.
Peer-to-Peer Lending
Depending on the type of business you're planning, a peer-to-peer loan may prove a good option for you. This works best for women business owners who need a small amount of money to get started--less than TSH 15,000. In a peer-to-peer lending system, you'd make a request by talking about your business idea and qualifications to run a business. Individual investors review your story and offer to loan you a portion of the money with a certain interest rate. With low credit, you present a higher risk, so the interest rate will be higher. Peer-to-peer lending can be a good way to solicit the help of family and friends. They can loan you the money you need and earn interest on it, but you don't have to go through the hassle of paying them directly. It's all done through an intermediary website.
There are grants to help women business owners, but they are few and far between, and the competition can be fierce. These grants come from nonprofit organizations. The grants are usually earmarked for women that are disadvantaged and come from low-income areas. To increase your chances, hire a professional grant writer to write your proposal. Getting a loan with bad credit is a challenge. loans which have government backing, if you talk to a lending company that provides them, it may be willing to take a chance. Your best chance, though, may be to contact an organization that specializes in lending start-up funds to women business owners. These companies may be more likely to lend you money despite your bad credit.
References
Inc.: Borrowing Money for Your Business
