Low Interest Loans for Startup Entrepreneurs without Credit

How entrepreneurs can use micro finance organizations to establish a good credit record and receive low interest business funding

Q.  I am a young photographer trying to start my own business. I have so much gear that I still need to buy and I am overwhelmed by my start up marketing costs. I am concerned that if I don't show more profit within the next few years that I will be seen as a failure in the business world.  Right now I'm working 70 hour weeks. Any thoughts?

A.   Here's a fun quote to think about.  Andy Warhol once said "Making money is art and working is art and good business is the best art."

As an emerging photographer, artist and business person, the perspective you bring to your work each day, I believe, influences outcomes.   Through your lens today, you see more problems than possibility.  From my lens, I see a hard working business owner who may be too focused on tasks that don't produce a positive return on each invested hour.

For freelance entrepreneurs like you, the secret to developing a sustainable, lucrative business is not just working more hours.  The trick is developing revenue producing assets within your business that can generate income in addition to your portrait work.

As a brainstorming exercise, I'd like you to think creatively of all the ways you might be able to earn income but not physically have to be there to do the work every time.  These initiatives can include generating royalties from Internet photo sales or developing a series of salable photography-based products, posters and greeting cards like Anne Geddes well-known baby photos. 

Anytime you can steadily add a revenue producing asset to your business, you are increasing its overall value.

Once you improve your business plan to diversify your revenue generating interests  and understand your new equipment priorities, check out AccionUSA.  org.  Accion is a leading non-profit micro-finance institution that has been gaining market share in the United States.  In addition to Accion's network operations in Massachusetts, Texas, California, New Mexico, Georgia, Florida and Illinois, Accion will make loans to business owners throughout the U.S. through its Online Loan Application Program, or "OLA.  "

You can apply for a business loan by completing a two page online application.  Thereafter Accion's lending specialists communicate with prospective borrowers to help clarify business needs, collateral availability and loan terms.

What I like about Accion is the flexibility of the program to meet real world startup business needs.  For example, business partners can apply together for an Accion loan and part-time entrepreneurs can qualify for a loan too. 

Accion's interest rates are more affordable than high rate credit cards because Accion does not charge interest on accruing interest.  Loan terms vary between 1 and 5 years.  Client Intake Specialist Colleen Youngdahl says "Borrowers should start small and establish a favorable lending record with Accion.  As their businesses grow, they can apply for loans up to $25,000."

Youngdahl also notes that a distinguishing feature of Accion's program is personalized service.  "A human being is always involved in our loan review process.  We give borrowers every opportunity to demonstrate their goals and explain past credit problems," says Youngdahl.

Accion does look for some kinds of collateral to support the loans.  Often this collateral can include photography gear, computers and other business equipment that may be purchased with loan proceeds.

Remember, your work can be profitable if you choose work that is most likely to be profitable.  You can do it! 

Back to Top Email Printer Friendly View

RATE THIS ARTICLE
Rate it:

Not Yet Rated: