Month: March 2021

How to Use Equipment Financing and Leasing In Your Business

It’s hard to grow any business, whether new or established, without the necessary equipment. However, some of it can be expensive. For a new business specifically, affording equipment can feel impossible. Still, you need that equipment to make money, which lends itself to a frustrating cycle. The answer may be equipment financing and leasing.

Equipment Financing and Leasing Is a Great Option for Both New and Established Businesses

Equipment financing is when you use a loan or lease to purchase or borrow hard assets for your business. You can use it to buy or lease any physical asset. This can include items like an industrial freezer in a restaurant or an oven or a company car, you name it.

A recent report, the Equipment Leasing and Finance Association (ELFA) survey, found that 80% of American businesses lease a portion of their equipment. The list of companies using leasing includes everything from Fortune 500 companies to mom and pop shops.

Benefits of Equipment Financing and Leasing

There are many benefits to equipment financing and leasing. For example, you will pay a set amount each month, which makes budgeting easier.  Also, you can build business credit if your creditor reports your payment to the business credit reporting agencies. The equipment is the collateral. That means you do not have to potentially sacrifice any other assets.

Find out why so many companies use our proven methods to get business loans.

In addition, it’s easy to upgrade equipment after your lease ends.  This can be helpful if your equipment is something like a computer which quickly becomes obsolete. 

What’s the Catch? 

Of course, nothing is perfect.  You may have to make a large down payment.  Furthermore, you will often need to have good personal credit in order to qualify.  If your financed equipment becomes outdated, your business is stuck with it until the end of the lease or loan. Sometimes, leases can end up actually costing more than purchasing. When the lease ends, you  have to get  a new lease or to make other arrangements. Whereas, if you buy the equipment outright you can sell it if you want. 

Types of leases

There are a few different types of leases. Which one will work best for you will depend on a number of factors. 

Fair Market Value Leasing

This is also called an FMV lease. With an FMV lease, you make regular payments while borrowing the equipment for a set term. When the term is up, you have the option to return the equipment or purchase it at its fair market value.

$1 Buyout Lease

This is a type of capital lease in which you pay off the cost of the equipment plus interest over the course of the lease.  At the end, you owe only $1.  Then, when you pay the $1 you fully own the equipment. This is similar to a loan in structure, and cost as well.

10% Option Lease

This lease is the same as a $1 lease, except at the end of the term you can buy the equipment for 10% of its cost.  These leases typically have lower monthly payments than the $1 buyout option. 

How Much Can a Lease Cost?

Of course it varies, but here is an example. Say the total cost of the equipment you are leasing is $25,000.  If it is a 10% option with a 36 month term, with an interest rate of 15%, it looks like this: 

  • Monthly payment is $780
  • Total cost of the lease is $28,079
  • The cost to purchase at the of the lease is $2,500
  • And the total Cost of Equipment is $30,579

Find out why so many companies use our proven methods to get business loans.

In this case,  you would be paying an extra $5,579 over the course of the lease. That is over 1/5 added to your total cost for the equipment. If you bought the equipment outright you would pay $25,000. Of course, you would then be out  $25,000 cash all at once.  When you are leasing equipment, you pay out over the life of the lease and thus keep more working capital actually working for your business. 

Credit Suite Offers Equipment Financing and Leasing

You can take advantage of our equipment financing and leasing programs if you have been in business at least one year.  Even if your credit is not the greatest, we have options that may work. Even better, approval takes as little as 24 hours.

The minimum personal credit score requirement is 550. Generally speaking, this is considered a fair credit score, and thus much lower than what many lenders will want to see. You will also need to provide details on the equipment you are getting.  You can be approved for as much as $10,000,000 in equipment financing after a quick credit review. This type of financing often affords more favorable terms than typical business financing programs and better benefits. Our equipment financing programs work for both established and startup businesses. We work with hundreds of lenders, and we can help you find the perfect one for your needs. 

Equipment Financing and Leasing Rates and Payments

You can qualify with only two monthly payments as a down payment.  Rates are affordable, and interest is 100% tax deductible.  In addition, there is no application fee. Furthermore, the time from application to funding is generally 2 weeks or less.

Interest rates range from 7% to 25%, and depending on the amount of the loan and risk factors, you may have to provide 2 years of corporate and personal tax returns.

Are There Other Options for Funding Equipment? 

Of course, we already mentioned paying cash and taking out a traditional loan. If you have accounts receivables you can do receivables financing. That’s really better for funding cash gaps. However, if you need to collect receivable to be able to afford your equipment, it could work.

Another option is the Credit Line Hybrid. This is unsecured business financing. There are no documents required, and you can get up to $150,000.  You do have to have a credit score of at least 680 and meet some other requirements. However, if you do not qualify on your own, you can take on a credit partner that does meet the criteria.  One bonus of this option is that you can purchase the equipment outright.  Since many of the cards that are part of the Credit Line Hybrid sometimes offer low introductory rates for a short time, you could save on interest.

Find out why so many companies use our proven methods to get business loans.

Is Equipment Financing and Leasing the Right Option for Your Business?

The short answer is, it depends.  That begs the question, what does it depend on. Well, first, do you need equipment?  That’s what this type of financing is best for. Then, do you need to finance equipment? If you have the cash on hand, you need to consider it carefully.  Financing can be a good idea if you would deplete your cash reserves paying cash for equipment.

Of course, you could just take out a traditional loan. However, you may have to come up with other collateral. If you need finance equipment, using that equipment as the collateral is the easiest solution. The collateralization allows for generally better rates and terms than you would get otherwise. Contact Credit Suite today to find the best option for equipment financing for your business.

The post How to Use Equipment Financing and Leasing In Your Business appeared first on Credit Suite.

New comment by WilliamSteen in "Ask HN: Who is hiring? (March 2021)"

Federato | Head of Software architecture | Senior SWE | Remote |Full-time | www.Federato.ai We are an impact driven startup helping insurance companies optimize their portfolio through reinforcement learning and dynamic optimization. We’re an early stage startup backed by VC’s in the Bay area. We’re looking for: Head of software architecture: has experience designing software …

The post New comment by WilliamSteen in “Ask HN: Who is hiring? (March 2021)” first appeared on Online Web Store Site.

The post New comment by WilliamSteen in “Ask HN: Who is hiring? (March 2021)” appeared first on ROI Credit Builders.

How to Increase Page Speed

If a user clicks through to a page on your website and finds themself waiting more than a few seconds for your page to load, they are likely to leave your page and can cost you a conversion.

Luckily there’s a remedy to increase page speed, but it involves the identification of the issue or issues causing slow lead times.

Since it can be difficult to pinpoint what’s wrong, you can use tools such as Google’s PageSpeed Insights to help. Google PageSpeed considers several factors for an overall score load time score. When you analyze page speed, Google gives you a list of metrics that contribute to the score. Let’s find out what those metrics are.

Increase Page Speed with Google PageSpeed Insights Field Data

The first set Google PageSpeed Insights gives you is called field data. This includes a variety of aspects of your site. (You can also learn more about core web vitals and how it will affect speed and SERP performance.)

Google insights - page speed

1. First Contentful Paint (FCP)

FCP is when your browser renders the initial information. That includes text, images (including background images), non-white canvas, and scalable vector graphics (SVG).

2. Largest Contentful Paint (LCP)

LCP is a Google experience metric that measures the time it takes for the largest bit of information on the page to load. Google uses LCP as a ranking factor for pages.

3. Cumulative Layout Shift (CLS)

CLS is another ranking factor for Google. It’s an unexpected shift—meaning jumping around to other locations on your screen—of page elements as it loads. It’s an indication of poor coding and can be caused by images, ads, videos, contact forms, and fonts.

4. First Input Delay (FID)

FID measures site response time when a user first interacts with it. If your user clicks on a video, the time it takes to play a video is your FID.

Using Lab Data to Increase Page Speed

The second set of elements is called lab data. It includes the elements above, as well as total blocking time, time to interactive, and speed index.

using lab data to increase website speed

1. Speed Index (SI)

SI measures the average time it takes for all elements on a page to become visible. Measured in milliseconds, it calculates the time it takes for visual elements to load above the fold—the part of a webpage seen before a user has to scroll.

2. Time to Interactive (TTI)

TTI measures how long it takes for all of the interactive elements on a page to become fully functional. It’s the time between the First Contentful Paint to the time the page can handle the user’s input.

3. Total Blocking Time (TBT)

TBT measures the time between time to first contentful paint and the time a site becomes interactive.

Why Is It Important to Improve Page Speed?

Page speed affects user experience, which can make or break your site. Faster page speed makes for a better user experience and can increase page views and conversions and reduce bounce rate. Let’s get into more detail on the benefits of improving page speed.

1. Improve User Experience by Increasing Website Speed

According to our research, 47 percent of consumers expect a website to load in no more than two seconds.

increase website speed

Every second afterward damages user experience. Viewers don’t want to wait for your page to load, and they’ll often bounce to find another business with a better user experience.

2. Increase Page Views

You might have noticed that some of the metrics I mentioned above, namely LCP and CLS, affect Google page ranking. In their quest to provide high-quality search results for users, Google includes metrics measuring load times. So, the better your page speed, the better ranking you may get on Google.

3. Increase Conversions

If your pages load quickly, it stands to reason your users will be happier and more willing to turn into customers. In 12 case studies conducted by HubSpot, they found decreasing page load time increased conversions by anywhere from three to 17 percent.

We did the math. If you’re an e-commerce site making $10,000 a day, a one-second page delay could cost you $2.5 million per year.

4. Lower Bounce Rate

According to Think with Google, when your page load time increases from one second to three seconds, the probability of bounce increases by 32 percent. If it rises from one to five seconds, that probability increases 90 percent.

The difference of a few seconds is the difference between keeping and converting users and watching them go elsewhere.

8 Ways to Increase Page Speed

To get a baseline for your current page speed, test your site using a tool like Google PageSpeed Insights.

8 ways to increase website speed

It will prompt you to enter a URL, then take a few minutes to analyze your page.

When it’s done, you’ll get an overall score that looks like this.

score - increase page speed

This is a pretty low score, but don’t panic. Google explains a number of factors can affect the final score and even cause it to fluctuate. Some of these factors include:

  1. conducting A/B tests
  2. changing the ads on your page
  3. changes in internet traffic routing
  4. testing on different devices, such as a high-performance desktop and a low-performance laptop
  5. browser extensions that inject JavaScript, which can add or modify network requests
  6. antivirus software

Google can analyze these factors and serve you a list of opportunities and diagnostics to help you speed up your page load time.

analysis to increase page speed

You can also try the following actions to increase page speed:

1. Limit Redirects

The more redirects you have, the longer it takes the server to find and load the correct page. Eliminate unnecessary redirects wherever you can.

2. Include the Trailing Slash

Don’t forget to include the trailing slash at the end of the URL. By doing so, you’re telling the server there are no file directories to search, and this page is the final destination.

So, instead of www.neilpatel.com/ubersuggest, your URL should read www.neilpatel.com/ubersuggest/.

It will shave a fraction of a second off your load time, where every millisecond counts.

3. Compress and Optimize Images

Large image files or a lot of images can take up a lot of your page load time. Make sure all your images are resized and compressed correctly.

They should be saved in the right format as well. PNG and JPEG files are the most easily compressed, and every browser supports them.

Compressing an image reduces the size of the file and is represented in kilobytes and megabytes. As a general rule, high-quality images can be compressed by 60% to 80%. You should never have an image larger than 1MB.

Resizing changes the size of the image on the page. Hero images may take up the entire width of your site (or about 1900 pixels), while smaller images should be 700 pixels or fewer. You can always size down, but it’s very difficult to size up without an image looking pixelated.

4. Use a Content Delivery Network (CDN)

With a CDN, a network of servers hosts your site locally to speed up page load times. A user in Dublin accessing a website hosted in Los Angeles, for example, wouldn’t have to ping the server of origin but rather a closer one in Ireland.

By spreading out the content on multiple servers, it reduces the number of requests to the server of origin, which slows down load times.

5. Limit Plugins and Extra Page Elements

Plugins, JavaScript, and other extra elements add to page load time. Include only those elements that are necessary for your page.

Of course, there are plugins made to help with site speed. Plugins that automatically resize images, minify code, and defer JavaScript loading can help with page speed. You have to determine if the bells and whistles these plugins allow are worth the trade-off with page speed.

6. Minify Your HTML or CSS

When you minify your site’s code, you take out all the spaces, notes, and extra markup developers use to make their code readable and easier to work on down the road. A server doesn’t need all that to read HTML, JavaScript, or CSS, and it can get in the way when it tries to load a page.

There are tools to help you minify your sites:

  • YUI Compressor from Yahoo! for CSS
  • Google Closure Compiler for JavaScript
  • Microsoft Ajax Minifier for CSS
  • HTMLMinifier for HTML

7. Utilize Caching

When a site caches, the server saves copies of its pages, so it doesn’t have to start from scratch every time it loads the site. By using caching, you can reduce time.

8. Choose Your Web Host Carefully

When it comes to web hosting, you get what you pay for. Cheaper plans may not be able to handle as much traffic, which could slow your page speed.

There are four kinds of web hosting services you can choose from:

  • Shared Hosting: A single server hosts multiple small sites. The price for shared hosting is low, but a surge in traffic to any other hosted sites can slow down yours.
  • VPS Hosting: A virtual private server, or VPS, hosts many sites, but each site has a virtual “spot” dedicated only to them. Because it’s virtual, it gives you more resources, potentially reducing the risk of site speed issues related to traffic.
  • Dedicated Server Hosting: One site is hosted on a single server. Although more expensive, it helps to lower or eliminate the risk of losing site speed due to other sites’ traffic surges.
  • Cloud Hosting: Websites are hosted on a network of virtual and physical servers that offer more resources and more flexibility. If you suddenly get a surge in traffic, a virtual host will scale up to handle it.

To choose the right hosting service for your site, consider the sizes of your site and budget.

Conclusion

A fast load time has always been an important component of user experience. Now that it’s one of Google’s components in its ranking algorithm, page speed has become critical for ranking and page views.

To improve page speed, look out for common issues that cause pages to load slowly like the images too large or you’re using too many plugins.

If you are unsuccessful or overwhelmed by following practices that increase page speed, our agency is here to walk you through the steps.

Have you taken a look at your site speed? What were the most common causes of slower load time for you?

The post How to Increase Page Speed appeared first on Neil Patel.

New comment by Mave83 in "Ask HN: Who is hiring? (March 2021)"

croit | REMOTE | PART or FULL TIME
We are a smaller but very skilled and ambitious consulting and product development company in the area of software defined storage solutions based on Ceph. Our goal is to simplify the usage of complex technologies to address a broader market. The beauty of that: We get to play around with complex technologies the whole day.

To grow our Development team, we would like to hire especially Java/Kotlin Backend developers.

Here are some job offers:

* Kotlin Developer: https://croit.io/career/kotlin-developer

* Frontend Developer: https://croit.io/career/frontend-developer

* C++ Ceph Developer: https://croit.io/career/ceph-developer

If you are interested, reach out to us at jobs@croit.io.

5 Reasons Why You May Need an Online Business Loan

These days you can find anything online. In fact, you can even find an online business loan.  Some business owners shy away from this option because of the fear of predatory lending. It is possible to find online lenders that will work for your business though.  Is an Online Business Loan for You? So, is … Continue reading 5 Reasons Why You May Need an Online Business Loan

Should I Outsource My Blog? 5 Questions to Help You Decide

Running a blog is a lot of work. You have to continually feed it new content, keep up with WordPress updates, maintain your hosting account, moderate comments, respond to readers…dozens, maybe even hundreds, of little tasks. On top of all that, there’s promoting and monetizing your blog, which is even more work. It’s hard for …

The post Should I Outsource My Blog? 5 Questions to Help You Decide first appeared on Online Web Store Site.

AtoB (YC S20) – Stripe for transportation – is hiring founding team engineers

Article URL: https://www.notion.so/atob/Founding-Team-Engineers-AtoB-1db448bd0b8c482db48857f04c7244cf Comments URL: https://news.ycombinator.com/item?id=26459129 Points: 1 # Comments: 0

The post AtoB (YC S20) – Stripe for transportation – is hiring founding team engineers first appeared on Online Web Store Site.

When Should You Use Progressive Web Apps?

The age of the smartphone opened up a whole new window for businesses to connect with their customers in an interactive way using apps. Because apps allow customers to interact with businesses from anywhere at any time, apps quickly became popular. Unfortunately, apps are not as exciting to consumers as they were in their early …

The post When Should You Use Progressive Web Apps? first appeared on Online Web Store Site.

The post When Should You Use Progressive Web Apps? appeared first on ROI Credit Builders.

5 Steps to Get a Business Credit Card, Bad Credit or Not

If you have bad personal credit, you may find yourself struggling to get a business credit card. The key to getting a business credit card, bad credit or not, is business credit. 

You Can Get a Business Credit Card, Bad Credit Not Being an Issue

You’re likely aware business credit is a good thing.  You know you need it to help you fund your business.  But do you know how it helps you specifically get credit cards, even if you have bad personal credit? Furthermore, do you know how to get it? 

How Do You Get Business Credit? 

Business credit doesn’t just happen like personal credit does.  You have to work to build business credit intentionally. While not hard, it is a process, and a time consuming one at that. The sooner you start the better, especially if you need a business credit card, bad credit being an issue. 

Business Credit Card Bad Credit: Separation is Key

First thing’s first. You have to establish your business as an entity separate from yourself the owner. This means not using your own name or address. That doesn’t mean you have to get a separate phone line, or even a separate location.  

You do need separate contact information however.  You can get a business phone number pretty easily that will work over the internet instead of phone lines.  In addition, the phone number will forward to any phone you want it too so you can simply use your personal cell phone or landline if you want.  Whenever someone calls your business number it will ring straight to you. 

You can use a virtual office for a business address. This is a business that offers a physical address for a fee, and sometimes they even offer mail service and live receptionist services.  In addition, there are some that offer meeting spaces for those times you may need to meet a client or customer in person. 

business credit card bad credit Credit Suite

Learn more here and start building business credit with your company’s EIN, not your SSN. 

Business Credit Card Bad Credit: EIN not SSN

The next thing you need to do is get an EIN for your business.  This is an identifying number for your business that works in a way similar to how your SSN works for you personally.  Some business owners used their SSN for their business. This is what a lot of sole proprietorships and partnerships do.  However, it really doesn’t look professional to lenders, and it can cause your personal and business credit to get all mixed up.   You can get one for free from the IRS.

This step is vital.  When you apply for a business credit card, bad credit can get in the way mainly because your SSN signals a look at your personal credit.  If you use your EIN instead of your SSN, the lender will only be seeing the credit attached to your business. 

Business Credit Card Bad Credit: Incorporation is Not Optional

Incorporating your business as an LLC, S-corp, or corporation is necessary for separation of business from the owner, and many other things. .  It lends credence to your business as one that is legitimate. It also offers some protection from liability. 

Which option you choose does not matter as much for these purposes as it does for your budget and needs for liability protection.  The best thing to do is talk to your attorney or a tax professional.  

Business Credit Card Bad Credit: Separate Bank Account

You have to open a separate, dedicated business bank account.  There are a few reasons for this.  First it helps solidify the separation between yourself and your business.  Also, it will help you keep track of business finances. This is important for tax purposes. 

There’s more to it however.  There are several types of funding you cannot get without a business bank account.  Many lenders and credit cards want to see one with a minimum average balance.  In addition, you cannot get a merchant account without a business account at a bank. That means, you cannot take credit card payments.  Studies show consumers tend to spend more when they can pay by credit card.

business credit card bad credit Credit Suite

Learn more here and start building business credit with your company’s EIN, not your SSN. 

Business Credit Card Bad Credit: Starter Vendors

Now, once you have these things in place,  you need to get accounts that will report your payments to the business credit agencies. It sounds easy enough, but the catch is, you have to find vendors that will extend credit without you first having credit. 

We call these vendors starter vendors.  They will extend net terms on invoices with little requirement. They don’t check credit. Typically, they require a certain number of days in business, a minimum average balance in a business bank account, minimum annual revenue, or some combination of these things. 

Extending the credit isn’t enough however.  There are some that do this, but there are far fewer that will actually report those payments.  You need vendors to report payments to the business credit reporting agencies, thus building your business credit score. 

The Snowball Effect

Of course you are wondering what any of this has to do with applying for a business credit card, bad credit being in the way. Here’s how.  Once you have several of these starter vendor accounts reporting, your score will be strong enough to support store credit. 

A business store account is usually issued for that specific store or website specifically.  Their limits are usually on the lower side as well.  However, after you get a few of them and use them responsibly. Your score will grow even strong. These are cards from places like Home Depot, Staples, or Best Buy. 

Then, you should qualify for fleet credit. These are cards from places like Shell that are used specifically for gasoline and automotive repair and maintenance.  

After a few of those are reporting your consistent, on-time payments, you should have a strong business credit score and be able to apply for standard business credit cards that are not limited by where you use them or what you use them to buy. By using your EIN and not your SSN, you can get a business credit card, bad credit on your personal credit report and all. It’s all a big snowball effect. 

business credit card bad credit Credit Suite

Learn more here and start building business credit with your company’s EIN, not your SSN. 

In the Interim

In the meantime, you can give your business credit building efforts a kickstart with a card like the Brex card for startups.  It  is one of the few true options if you are looking for a business credit card, back credit not being an issue.  Even a FICO as low as 300 may qualify.  There is no annual fee, and you can apply with your EIN rather than your SSN.  There is no personal guarantee requirement. 

The only catch is, not all industries qualify, and some industries require more paperwork than others.

You could also try getting accounts that you already have a relationship with to report to the business credit reporting agencies. This could be vendors you work with already. Maybe ask them if they will consider net terms and reporting payments. If you already make your payments consistently on time, they may be willing to do so without a credit check. 

You could also consider asking utilities that you already pay regularly to report your payments.  They may say no. They don’t have to do it. But they might, and if they do it can only help your business credit grow faster. 

A credit line hybrid can be another great option to help speed things along. You have to have a 680 or better personal credit score, but you can take on a credit partner if you don’t meet that. The account still reports to your business credit, so you can keep building your score. And, you can get up to $150,000 unsecured financing for your business. 

An Expert Can Help You Through the Steps 

It sounds easy enough to do all of this on your own.  However,  there are some steps that are easier than others. Specifically, it can be very difficult to find starter vendors that will report to your business credit. For this and other difficult steps, it can be very helpful to have a business credit expert help you out. It’s definitely worth considering. 

 

The post 5 Steps to Get a Business Credit Card, Bad Credit or Not appeared first on Credit Suite.

Don’t Let Accounts Receivables Sink Your Business

Accounts receivables are a necessary part of many businesses. A lot of potential customers can be lost if you do not allow businesses to pay invoices with net terms, whether 30, 60, or 90 days.  However, you can lose a lot of money if you don’t collect on those receivables.  How do you offer the benefit, without suffering the consequences?

How to Manage the Double Life of Accounts Receivables

Accounts receivables really can lead a double life of sorts. On the one hand, they lure in customers with their appeal.  On the other hand, they can cause major cash gaps simply by their nature. Those gaps can fill with unpaid obligations quickly if there is no bridge over them. 

Bridging the Gap of Accounts Receivables

So, the question becomes, how do you enjoy the benefits without the gaps. The answer is accounts receivable financing. In fact, this answers more than one question.  Not only is it a way to bridge cash gaps, but it is also a way to fast access to cash for other needs.

For example, you may not have an unmanageable cash gap, but rather you need to take advantage of special pricing on a bulk purchase. Maybe you do not want to exhaust your cash on hand, or you do not have the cash on hand. Either way, you can leverage your accounts receivable to finance more than just cash flow issues due to slow collections. 

How Does Accounts Receivables Financing Work?  

Credit Suite can help you get up to $10 million in account receivable financing.  Up to 80% of receivables can be advanced within 24 hours.  Interest rates range from 8% to 12% currently. The minimum credit score requirement is 500, and the receivables must be from another business or government agency, not an individual.  You also have to be in business for at least one year.. In addition to an application, you’ll need to provide a breakdown of existing receivables and a sample invoice.

Find out why so many companies use our proven methods to get business loans.

This is an ideal way to access fast cash for your business for a number of reasons, especially if your credit isn’t the best. Not only that, but the interest rates are much more reasonable than that of most credit 

cards.

Merchant Cash Advance

If you accept credit cards as payment, you have another, similar option to accounts receivables financing. 

It’s called a merchant cash advance.  Our merchant financing program is a good fit for businesses that accept credit cards and need fast, easy financing.  You can get up to $500,000 without collateral and a minimum credit score as low as 500.

You only have to turn over bank statements to prove cash flow.  The lenders we work with do not ask for other documents such as financials, business plans, resumes, or any of the other documents traditional lenders typically ask for.

Just  4-6 months of your bank and merchant account statements is all it takes. They just want to see consistent deposits and annual revenue of $50,000 or higher. Also, you do have to have been in business for 6 months or more.

They will also look to see if there are a lot of Non-Sufficient-Funds showing on your bank statements, or low chargebacks on your merchant statements.  More than 10 deposits in a month going into your bank account is a key positive factors

Lenders want to see that you manage your bank and merchant accounts responsibly and have a fair number of consistent credit card transaction deposits each month.

What if You Do Not Have Accounts Receivables or Accept Credit Cards?

Maybe you don’t have accounts receivable. That may mean you do not have the cash gaps that can come with them, but you might still need cash access anyway.  There are other options. One of the most flexible but least known types of business financing is the Credit Line Hybrid.

A credit line hybrid is unsecured business financing.  It allows you to fund your business without putting up collateral, and you only pay back what you use.

Find out why so many companies use our proven methods to get business loans

Unlike accounts receivables financing, you do need good personal credit to qualify for the Credit Line Hybrid on your own. Your personal credit score should be at least 685.  In addition, you can’t have any liens, judgments, bankruptcies or late payments.  Furthermore, in the past 6 months you should have no more than 4 credit inquiries, and you should have less than a 45% balance on all business and personal credit cards.  It’s also preferred that you have established business credit as well as personal credit.

However, there is a way around those requirements if you don’t meet them. You can take on a credit partner that meets each of these requirements.  Many business owners work with a friend or relative to fund their business.  If a relative or a friend meets all of these requirements, they can partner with you to allow you to tap into their credit to access funding. 

Top Ways to Use Funds from A/R Financing, Merchant Cash Advances,  and The Credit Line Hybrid

The Credit Line Hybrid is an option if you do not have accounts receivable or do not accept credit card payments. However, if you qualify for more than one, you can combine them for even more powerful business funding. 

You can use each one separately or together to do any of the following, and more!

  • Pay off higher interest debt to lower monthly payments.  
  • Bridge a cash gap due to slow collections or seasonal issues. You could never have to worry or stress about large invoices being paid slowly or slow business in the off season ever again.
  • Cover bills during a global pandemic. Can you relate?
  • Purchase inventory in bulk to take advantage of promotional pricing. 
  • Grow and expand your business by adding equipment, adding on to your building, or even opening a new location.
  • Fund updates and repairs. Don’t let the little things, or big things, slide because you can’t pay for it.

Find out why so many companies use our proven methods to get business loans

That said, the Credit Line Hybrid does have one bonus that the accounts receivables funding and merchant cash advance does not.  The Credit Line Hybrid reports to your business credit report, in turn helping you build a stronger business credit score. 

Why Does Your Business Credit Report Matter? 

If you made it here from a quick search about accounts receivables financing, you may be asking yourself what on earth a business credit report has to do with anything. The quick and dirty is, a strong business credit score can increase fundability and allow you to access even more funding for your business. 

Fundability is the overall ability of your business to get funding.  Not sure where you stand or what kind of funding you can get? Try a free consultation.

Accounts Receivables Financing Can Be a Lifeboat for Your Business

Accounts receivables can truly be a blessing or a curse. They are a great tool to help you draw more business. The ability to pay later is a huge benefit, and it can make the difference between a potential customer lost and a new customer.

However, if collections become an issue, the curse can kick in.  Accounts receivables financing is a great way to overcome the curse and keep the blessing. That’s not the only way to use this kind of financing though. 

Your accounts receivables can be leveraged to get funding your business can use to not only survive, but to thrive. If you do not qualify, a merchant cash advance or the Credit Line Hybrid can help as well.  If you qualify for all three, you can get triple the funding to grow even more!

The post Don’t Let Accounts Receivables Sink Your Business appeared first on Credit Suite.