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Is Poor Credit Worthiness Hindering You From Getting A Business Loan? Here Are 4 Alternative Options

If you find yourself in this position, don’t wallow in regret. It’s time to start analysing the options available to you.

Jeff Broth




You know how they say change is the only constant thing in life? Well, that might not be completely true. It is also a constant thing in life that “life will surely happen.”

At times, life’s happenings are favourable. At other times, life’s happenings are unfavourable. Sometimes, life’s unpleasant happenings could bring series of events that end up putting a dent on your credit worthiness.

The point is that, while poor financial decisions could bring bad credit worthiness, certain people don’t have to make the worst financial decisions to find themselves in a position of poor credit worthiness. Unfortunately, the world’s financial system is not set up in a way that we can differentiate between those who did and didn’t make bad financial decisions to know who deserves financial assistance for their business.

The reality of things is that you’d simply find it extremely difficult to secure loans with a bad credit.

Collateral Loan

If you live in a house of your own or have a landed property, then you might just be sleeping on the money you need. Several lenders out there understand the happenings of life. They have systems that could qualify you to get a loan despite bad credit score. They would just require some form of assurance from you.

An asset you own could be that assurance. In this case, asset is anything that you can convert to cash. So in addition to a house and landed properties, automobiles, cash accounts, investments, insurance policies, machinery/equipment among other things count as assets against which you can get loans irrespective of your credit worthiness.

Typically, when you apply for a loan from such lenders, they’ll evaluate your asset to know how much it’s worth. The value of your asset will be a big determinant of the amount of loan you can get. In most cases, that amount will be below the market value your asset.

When taking this route, you need to have find out what your asset is worth beforehand so you can negotiate the best term. Some lenders will intentionally undervalue your asset just to make you qualify for a lesser amount of loan. But doing your homework beforehand will put you in the know and hence, be able to speak up to get the best deal.

Related: How To Get A South African Government Loan

Small Business Lenders


If you have a registered business, then you might be able to secure loans from small business lenders. Most of them came into business after noticing the limitations of the traditional financial system. They are here to make it easier for small businesses to gain access to financing.

You would need to do your own research to find out what they require. In general, though, small business lenders could offer loans against assets, cash flow, future cash flow, receivables and so on.


Cooperatives are independent associations that are formed to help members meeting mutual economic cultural and social needs. Cooperatives are run democratically by members of the associations.

The advantages of getting a loan through a cooperative include, but not limited to low interest rates, and flexible repayment plans.

In fact, most cooperatives are set up in a way that you’d earn bonuses even if you borrow because they usually share profit among members, which you have to be before you can even qualify for a loan. Typically, you’d join the cooperative society and save money with them consistently for a number of months – usually six months. After a probationary period, you will be able to borrow up to double your savings.

Related: 5 Small Business Loan Ideas

Friends and Family

Statistics have it that more than 50% of business owners get funding help from friends and families at some point in time. What this means is that your friends and families could be willing to help you get your business in motion more than you think they were.

And if any class of people would care less about your credit worthiness – or the lack thereof –, it would be your friends and families. All you just need to do is ask. The worst-case scenario would be to get a NO.

Related: Loaning Start-Up Cash to Your Family Entrepreneur Makes You a Credit Provider

To increase your chances of securing financing from friends and relatives, you should consider offering them something in return. Don’t tell them to give you money or just borrow you money. Ask them to invest, which means they’d expect something back in addition to their capital. Don’t be greedy about this. Always bear in mind that 1% of a $1 million company is better than 100% of none.

Jeff Broth, a business writer and advisor. Consulted for SMB owners and entrepreneurs for 7 years now. Mainly covering finance, stocks and emerging fintech trends.

Personal Finance

6 Ways To Develop A Millionaire Mindset

Chasing money has remarkably little to do with getting rich.



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If you truly want to have a million dollars, you must first be and think like a millionaire. By doing so, you will attract the necessary resources to you.

So, you want to become a millionaire entrepreneur? You’re not alone. Many dream of leaving their job and becoming their own boss, enjoying the various millionaire lifestyles we watch on TV. But there’s a difference between those who dream of becoming millionaires and those who do. And it begins and ends with mindset. If you don’t develop that mindset, you will continue to spin your wheels, working just as hard, but never going anywhere.

Developing a millionaire mindset requires you to stretch your thinking. Start by developing the following six attributes.

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Personal Finance

10 Tips To Become A Millionaire This Year

Becoming a millionaire requires changing your mindset and implementing some changes.

Murray Newlands



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Becoming a millionaire may seem out of your reach, but it’s possible with the right attitude and guidance. The fact of the matter is your income can only grow as quickly as you do, so you need to change your mindset to achieve your goal of becoming a millionaire.

Once you have a millionaire mind, you can’t lose it, no matter what financial or business mistakes you make along the way. To get yourself there, you’re going to need some structure. To help you, I’ve outlined the top ten tips you should follow to become a millionaire this year.

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Personal Finance

If You Think These 5 Things, You’ll Never Get Rich By The Time You’re 30

Five common mistakes entrepreneurs make when starting a business and how to correct them.



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Last week, I had lunch with a millennial who wanted some advice about a business he’s starting. After the usual small talk, we got down to discussing his business plan. Within a short time, it was clear that his business idea was great, his plan for executing was fairly solid and he had gathered together a strong team to help him make it happen.

So far, so good. But, to be frank, this guy has no chance of being successful with his current mentality. What it takes to be rich (or successful in any measure) has a lot more to do with your mindset than your ideas and plans.

From the time we started in business at the ripe ages of six and seven, our Grandpa Joe taught my brother Matthew and me many lessons about the details of running a profitable business. Over the years, we learned about how to create a business plan; how to market our products and services; and how to take care of customers, vendors and employees. All this knowledge has been invaluable to us in creating and running successful businesses. But, what our grandfather taught us about attitude and mindset trumps all other lessons.

Without calling out the specific individual I spoke with recently, below are five “hypothetical” attitudes that will get you nowhere in your journey to success – and the attitudes that should replace them.

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