Personal Finance History Less Important Than Ever for Online Entrepreneurs
Half of Americans haven’t recently checked their credit scores, suggesting that many are neglecting their personal finances. This could lead to a low credit rating and cause problems in securing a loan to open your dream business. However, if you are looking to start an internet company, you will be pleased to hear that looking after your credit finances may be less important than it used to be. It is now more possible than ever for anyone to secure a loan or build a successful website on a budget. Here’s why.
Big Banks Have Lost Their Relevance
In the past, if you wanted a loan, you’d head to your local bank and apply. If they turned you down, there were few other options. However, with the rise of the internet and smartphone apps, there are multiple routes to securing funding. While traditional banks value credit scores highly, peer to peer lenders will often grant a loan regardless of your credit score and finance history.
So if you really need a loan, but have a low credit score, then you can use one of these alternative lenders. This means it is possible for almost anyone to get the funding they need to develop that money making idea. However, for online businesses, you may not need a loan at all. At least, not a big one.
Websites Are Cheap and Easy to Build
As technology improves, the cost of building a website has dropped dramatically. Now anyone is able to produce their own professional looking website, thanks to a growing body of platforms which will host your site for a small fee. These website building services take the technological aspects out of the process. They are intuitive and simple to use.
This means that, even if you are not too tech savvy, you shouldn’t need much help in creating your online business. As a result, you may not have to pay for a professional web developer to do the work for you. With significantly reduced startup costs, you won’t need a large loan and therefore your personal finance history is irrelevant.
Advertising is Free on Social Media Platforms
Another way online businesses can save costs is in the marketing department. You no longer have to take out television or billboard advertisements to attract a following. Instead, the most successful businesses build a following organically. You can pay for Google or Facebook ads if you’d like, but it isn’t necessary. A witty and engaged Instagram profile can direct traffic to your website for free. Regardless of your credit score, you can always build a loyal customer base.
If you’re looking to make it in the online world, don’t let your credit history hold you back. Putting together a website requires little infrastructure or up front investment and paid advertising is becoming obsolete. Therefore, you’ll likely only need a small loan. This can come from alternative payday lenders, if traditional banks won’t approve your loan. This means anyone, with any finance history, can become a digital entrepreneur.