Specialist startup loans that accept higher levels of risk are not always easy to come by. Often they are government backed and aimed at particular commercial or industrial sectors.
There may also be other restrictions such a geographic locations, applicants age, employment background and even gender.
It is no surprise that when looking for a start up loan, in particular, you will often find yourself having to offer personal guarantees of some kind.
You should be very careful about agreeing to guarantees attached to a property - especially your home.
This is a high risk approach - you have to be close to 100% sure of success to take such a risk. If there is another way, that is the way to go if you can.
A personal guarantee along the lines of a credit card agreement is less risky and worth considering.
With this type of deal you agree to pay the money back even if the business fails, but there is no direct claim on where you live
The trick is to make sure you have a lifeboat available - a way to quickly fall back on a relatively easy income stream if the business fails.
So if you are a IT specialist of some kind and are starting up a new online shop you could always fall back on contracting of some kind. Equally a plumber starting a new construction business could probably quickly fall back on agency work.
