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Free Angel Investor Private Investor Loans Bad Credit

Are you looking for a private angel investor to provide bad credit loans?

Many times startup businesses need funding but cannot obtain loans from banks or friends.  If you have bad credit but still want to start a business, you may still be able to do so.

How can an angel investor provide a private loan if you have bad credit?

Even if you have bad credit, if you are willing to provide your own money to get a business started an angel investor will take note.  They might give you with a private loan even if you have bad credit, provided your business has great potential.

An angel investor is a wealthy individual that usually provides between $10,000 and $1,000,000 in funding for startup and early stage companies.  Most times they require equity ownership for their investment, but sometimes an entrepreneur can structure a deal with an angel investor in the form of private credit or a loan.  Your personal finances matter only to the extent you are able to contribute money to help the business succeed.  Investors want to know you have “skin in the game.”

One of the benefits of an angel investor is their flexibility in structuring a deal.  They usually are willing to consider atypical funding structures.  For smaller deals, loans may actually be preferred to equity, even if you have bad credit. 

Convincing a private angel investor to provide a loan if you have bad credit

You will have no chance of obtaining a loan from a private angel investor without a solid business idea and plan of execution.  Angel investors typically invest within 150 miles of their homes, in industries in which they have experience or familiarity.  Finding an angel that fits your business well is the key to getting financing.

You should also have a clear exit strategy.  Angels like to know that you have a definite plan for how they will be getting a return along with the timeframe for that return.  If your deal is a loan, they will want to know how you will be generating money to pay the loan.

Where can you find angel investors?

There are a number of free ways to find a private loan from angel investors, but the most common is through your personal network of contacts.  Start asking your acquaintances if they know of anyone who might be interested in a private loan for a startup company.  If this does not yield any prospects, you can turn to local chambers of commerce, trade associations, and other industry groups to find potential angel investors.  In addition, you can contact local professionals like bankers, accountants, attorneys, and dentists for referrals.

You can also try to find a free list of angel investors on the internet to help you find someone who will offer a bad credit loan.  The Network ( connects entrepreneurs, investors, advisors, job seeker, service providers and others in the startup community.  

If you want to actively search for investors, you can purchase a subscription.  With a subscription you can view the contact information for all members.  Using the search function, you can find investors specifically targeted to your business based on industry, location, investment amount, etc.  When you find an investor that seems to be a good fit, you can contact them about your opportunity.

Alternatively, you can get a “Request.”  Your “Request” is a brief advertisement similar to a classified ad that is sent out to targeted investors.  This allows you to avoid the hassle of finding all the targeted investors in the first place and allows them to come to you instead.



Private Investor Loans

Whether you find your angel investment from your rich uncle Ted or a prominent angel investor group, it’s important to know that the universe of angel investors looks like and what you’re really shopping for.  If all you need is a little bit of cash to be on your way, then perhaps looking to your friends and family is the way to go.  However, if you think what you really need is a partner to grow this idea to the moon, it may be worthwhile to pursue a professional angel investor as not only a source of funding, but also a mentor.