Possibility of getting a loan for a E-Commerce business that’s been open for 6 months?

[tms7981]

@joshken My credit is low from maxing out my card to getting the business off the ground. It’s now paid off but credit took a hit for sure. And honestly my business is doing fine right now but a loan would scale me up to the next level much quicker. You’re right though, I definitely have to do some reconfiguring

 

[nursingninja]

@tms7981 Credit bounces back quickly when you pay things off.

 

[joshken]

@tms7981 But that’s not how credit works, when you pay it off the score gradually rises again, you’d also have all the funds available again and wouldn’t need a loan. So there’s something suspicious there and I’m not even the lender see what I mean? I’m not saying you are bad I’m just saying there are signs that point to this being a gamble rather than an investment and lenders do not like that

 

[believersboard]

@joshken Correct - why not just used the paid off credit cards again? Isn’t that what they’re for?

 

[dynamis777]

@tms7981 F&F (Friends & Family) Funding could be a route if you haven’t explored that yet

 

[trainlady]

@tms7981 https://youlend.com/merchants - Try these guys (I am in no way affiliated with them)

You agree a repayment % based on your sales history. It is a % of your revenue, therefore if you take £1000 in May and the repayment % is 10% then they will take £100 that month. If then in June you have a rough month and only make £250 then the repayment amount will be £25.

 

[nicenecouncilcom]

@trainlady Factoring. Terrible rates.

 

[kevingil]

@tms7981 Thanks for checking it out by the way

 

[oyeah22]

@tms7981 I can do it - check out - www.lendingvalley.com

 

[rationalwiki]

@tms7981 Maybe try a EIDL or something covid related. But a straight loan from a bank would be unlikely since you started so recently. Could also try private loans but your interest will likely be higher than the other 2 options

 

[onecontent]

@rationalwiki Curious how you think an EIDL would be applicable for this situation?