One of the best ways to improve your finances and start making more money as a busy mum is to start your own business. When you run your own company, you can work on your own terms, which means that you can fit work around childcare much more effectively than you usually can in an employed role, after all.


Unfortunately, setting up the average business usually requires an upfront cash injection, and if you don’t have the money resting in your account for this purpose, and you have struggled with debt in the past, resulting in a less than stellar credit score, it can be difficult to get things off the ground.


Here are some of the ways you may be able to start a new business despite your poor credit rating:


Choose a Business Model that Requires Little Capital


Perhaps, the easiest way to going to business as a mum with a less than perfect financial past is by choosing a business model that doesn’t require very much of a cash injection upfront at all. For example, making a living as a blogger is very possible, and you only need a few pounds to purchase a domain and hosting package each month. You can do pretty much everything else yourself, and although it might be a little more work, it’s one of the most flexible ways of earning a living there is.


Obviously, you need to start a business that you believe in, so the low-cost model might not be an option, but if it is, well, then you don’t have to worry so much about the money side of setting up your operation at all.




Crowdfunding is a fantastic tool for budding entrepreneurs who are looking to improve their financial situation and make money on their own terms. Basically, websites like IndieGoGo and Kickstarter provide a platform on which you can promote your business idea and ask for small contributions from the general public who are interested in seeing your business ideas come to fruition. In return for their support, you will need to offer them various incentives, as one of your products when they come to market, but this is a small price to pay, and actually, using such a platform is a good way of gauging how successful your company is likely to be before you sink too much cash into it and end up in debt again. Give it a try if you believe you have a great idea – you might be pleasantly surprised.


Unsecured Business Loans


Although getting the average business loan from your local bank might be rather difficult if you have a poor credit rating, and especially if you’re still dealing with debts, that doesn’t mean that no loans are within your reach at all. For example, finding a loan that is unsecured has, thanks to the internet, never been easier. If you have a good idea and you’re confident you can pay the loan back, there’s no reason not to at least reply and start building a business that will put you back in the black.


Social Lending


You have to be careful with this, and you should only ever think about asking friends or family members for loans once you have a strong business plan in place and you’re confident your business will be a success, but it can be a great way to get started.


Angel Investors


Angel investors are always on the lookout for good business opportunities, and they aren’t so concerned with your credit rating when evaluating the worthiness of your proposition, which means that you could be more successful obtaining funding from them than the bank or other sources.


If you don’t know already, Angel Investors are pretty much the polar opposites of venture capitalists. They invest on an informal basis in projects they believe in, and they are usually willing to get hands-on, helping you and your business to reach their full potential. This makes them a very beneficial ally to have on your side in the early days of being a mompreneur.




Micro-Credit companies are organisations who have come together with the sole purpose of lending capital to new and expanding businesses who are unable to secure funds via other means. They are usually non-profit organisations, and because they understand how hard it can be to get a business off the ground, they are much more understanding than traditional banks. You may also find that they’re willing to help and support you on your journey to successful businesswoman.




As an entrepreneur, as long as you have a solid business plan, you will be able to apply for all manner of small business start-up grants, and although there is no guarantee that you will be awarded them, if you work hard on your pitch and apply to as many of them as you can, there is an excellent chance that you will.


Rental Companies


Another option, when setting up a new business to improve your family’s money situation is that of rental companies. When you’re starting out, a lot of your capital is likely to be invested in the equipment you need to run your company; things like computers, printers, servers and tools of the trade. Quite often, you’ll be able to find a company that rents the stuff you need, so you can get started without delay and without having to sink a huge amount of capital into your operation before you know how successful it is likely to be.


A Business Partner


Something that shouldn’t be dismissed, especially if you believe you have an idea for a business that could be quite lucrative, is to find a partner who can provide the finance. Sure, you’ll have to give away a decent chunk of your profits to them, but it’ll be worth it if you’re able to run your own business, make money and improve your financial position, doing something you love and believe in.


Are you a mompreneur who struggled with debt in the past? How did you get into business?