When you are trying to open a new business, or need a loan for an existing one, not having a degree may seem like a hindrance. In reality, you can still find a loan even if you have never gone to college or never graduated with a degree. Many avenues are available to get a business loan, even without having any type of college degree.
Look into options available with the Small Business Administration (SBA). The SBA offers would-be borrowers tips and information on how to get business loans, no matter their education, race, income level or gender. They provide tips on getting financial assistance, including loans and grants, as well as online training, counseling, local resources and more.
Apply at your local bank or credit union. These institutions generally look more at credit history and assets for loan approval, unconcerned about educational accomplishments. The better credit you have, the better your chance of receiving a business loan. Collateral can also increase your chances, especially if you lack good credit.
Find a cosigner willing to assume the responsibility of a loan with you. With a cosigner, you will not need a degree, because the financial institution is always satisfied with two borrowers for the same loan. Remember, though, that the cosigner becomes responsible for the loan if you default.
Apply for an unsecured loan. These loans are also known as payday loans, signature loans and cash advances. There is no need for a degree to receive this type of loan, and there are never any credit checks. These loans are granted for up to $1,500 until your next payday, plus fees. Such loans are helpful in an emergency, and can be approved within hours of application.
Ask family or friends if they can loan you the money. More than likely, they will not worry about whether you have a degree; they will simply want to know if you can repay. Draw up an agreement between you, detailing the amount of the loan, how and when you will be repay and whether it will include interest.
Tips
Loans received through unsecured companies are a great way to get money without a degree, but the finance charges are very high. Research this option carefully, perhaps using it only as a last resort.
References
- Small Business Administration
- USA.gov. "Credit Reports and Scores." Accessed March 19, 2020.
- Consumer Financial Protection Bureau. "What Is a Credit Score?" Accessed March 19, 2020.
- Fannie Mae. "B3-6-02: Debt-to-Income Ratios (08/07/2019)." Accessed March 19, 2020.
- Consumer Financial Protection Bureau. "Create a Loan Application Packet." Accessed March 19, 2020.
- Office of the Comptroller. "Interagency Statement on Meeting the Credit Needs of Creditworthy Small Business Borrowers." Accessed March 19, 2020.
- Consumer Financial Protection Bureau. "Does a Credit Inquiry Have a Different Impact on My Score if I’m Approved or Denied?" Accessed March 19, 2020.
- Consumer Financial Protection Bureau. "What Is a Debt-to-Income Ratio? Why Is the 43% Debt-to-Income Ratio Important?" Accessed March 19, 2020.
- Federal Trade Commission. "Credit Scores." Accessed March 19, 2020.
- Experian. "What to Do If Your Loan Is Denied." Accessed March 19, 2020.
Tips
- Loans received through unsecured companies are a great way to get money without a degree, but the finance charges are very high. Research this option carefully, perhaps using it only as a last resort.