4 Ways to Use Micro-Influencers to Grow Your Business

Getting more customers in today’s competitive world is nearly impossible.

Search engine optimization takes months to drive any measurable traffic, PPC costs tons of money and is often difficult for the average marketer to run without hiring an agency.

Referrals are great, but you can only generate so many of them.

The reality is most marketing tactics require tons of effort and months of planning before you see results.

Most of us can’t wait that long for results.

So, what do you do?

You take advantage of nano and micro-influencers.

Influencer marketing is one of the best ways to drive sales.

In fact, according to BigCommerce, 17 percent of companies spend over half their marketing budget on influencers.

But most people can’t afford celebrity influencers like Kim Kardashian.

Thankfully, you actually don’t want to use influencers like that.

You want smaller, niche-focused influencers called “micro-influencers.”

Here are what micro-influencers are and four ways to use them to gain customers.

What Are Micro-Influencers and Why You Should Use Them?

It’s no secret that influencer marketing is already a booming industry.

The growth of influencers and social media platforms is astounding, to say the least.

In fact, influencer marketing is a tactic I’ve used countless times to build my brands and companies.

Promoting when you have no followers for growth is tough.

That’s why influencers come in handy.

They provide instant promotion of your product or service with amazing conversion rates.

It’s one of the best ways to drive big sales.

All types of companies and brands take advantage of it.

So, what is a micro-influencer? How does micro-influencer marketing differ from typical influencer marketing? Why should you focus on micro-influencers and not ordinary influencers?

Well, let’s start off with some basic definitions.

Micro-influencers are pretty much exactly what they sound like.

They are hyper-specific influencers who have lower follower counts in a given niche. They have intensely engaged audiences, yet a relatively low (below 25k) follower count.

Major celebrities are not micro-influencers.

They have millions of followers.

Accounts with less than 25,000 followers are generally considered micro-influencers. They often have very active audiences. Furthermore, nano-influencers have followers in the thousands.

The data proves that nano- and micro-influencers are successful.

Markerly studied over 800,000 Instagram accounts, each with over 1,000 followers. They analyzed how engaged their audiences were in comparison to major celebrity influencers.

They found that as the follower count increased, like rates dropped significantly.

micro influencers guide likes vs followers guilde

They also found that comments and engaged users decreased as followership increased:

micro influencer guide comment vs followers chart

This means that the more followers an account has, the fewer likes and comments they get (relative to the follower count.)

So using influencers who have millions of followers might get you less bang for your buck.

On top of this glaring data, they also found that Instagram influencers with 1,000 to 10,000 followers earned likes at a 4 percent rate. In contrast, accounts with over 10,000 only achieved a 2.4% like rate.

The big-ticket celebrity accounts with over 1,000,000 followers only got a 1.7 percent like rate.

Experticity studied big groups of micro-influencers to see what power they held.

Here are two of the incredible statistics they uncovered:

Micro-influencers achieved 22.2 times more conversations than average consumers when they recommended products.
82 percent of consumers reported that they were highly likely to follow a recommendation made by a micro-influencer.

So micro-influencers have more conversations about buying recommendations than macro-influencers. At the same time, they hold greater power when driving actual conversions.

If you think you need millions of followers to grow your brand, think again.

Nano and micro-influencers drive more engagement and hold better recommendation power.

So it’s time to stop wasting money on expensive influencers who aren’t driving engagement or traffic.

Here’s how you can find micro-influencers and four ways to use them to gain more customers.

How to Find Micro-Influencers for Your Brand

Before we jump into the ways you can use micro-influencers to gain more customers, you need to understand how to locate these people.

Finding the right influencer is critical.

It can make or break your campaign.

If you select the wrong influencer in the wrong niche, you risk wasting money on a failed campaign that won’t grow your business.

Fortunately, there are a few tools we can use to collect influencers and begin the process of outreach.

My favorite tool is HYPR.

It’s an analytics-based tool that allows you to find data on tons of different influencers in any given niche.

It’s also free for over 100 searches.

Most of these tools cost tons of money, but HYPR gives you free searches and detailed reports.

To get started, create your free account.

Once you’ve made it to the dashboard, it’s time to search:

Once we’re here, we want to set some search filters based on the data we covered earlier.

Remember: influencers with 1,000 to 10,000 followers earned likes at a 4 percent rate, while accounts with over 10,000 followers only achieved a 2.4 percent like rate.

For micro-influencers, we want to focus on accounts in the 1,000 to 10,000 following range.

To do this, select the following ranges as your minimum and maximum:

Next, type your niche category into the keyword search engine at the top:

You can select up to five different interests to target.

Next, you want to refine your audience based on typical demographics of your customer base:

hypr micro influencer guide refine search

Remember, micro-influencers work because they are specific, niche audiences that are hyper-engaged.

So, focus on as many narrowing filters as you can to get a better conversion rate.

Once you’ve searched, you can click on any of the given influencers to start inspecting their profile and data:

HYPR gives you a ton of free influencer data that can help you decide who to use for your next campaign:

hypr micro influencer guide influencer data example

Once you’ve created a list of influencers, start reaching out to them.

These micro-influencers will help you drive tons of growth and gain more customers quickly.

Now, here are four ways to use these micro-influencers to gain more customers.

1. Use Campaign-Specific Hashtags

Campaign-specific hashtags are one of the best ways to spread brand awareness and drive sales.

They allow niche micro-influencers to connect easily with your brand.

For example, check out how sparkling water brand Lacroix does it:

They work with tons of micro-influencers to promote their products and gain more customers.

You’ll see that the influencer in this photo has barely over 1,000 followers:

But that specific micro-influencer gets tons of interactions, which makes the partnership worth it.

And on top of that, Lacroix runs dedicated hashtag-based influencer campaigns:

They send out free products for promotions to these influencers and get tons of traction on Instagram.

If you click on any of these influencer posts, they almost all have fewer than 10,000 followers:

Why do they work?

It’s because they’re genuine and authentic.

These people truly live the Lacroix lifestyle and embody the brand image.

They are down-to-earth, real people.

Accounts with over 1 million followers may seem like a cool way to promote your brand. But at the end of the day, their engagement rates are lower than that of micro-influencers.

On top of that, they likely are major celebrities who don’t embody your brand.

Follow in Lacroix’s footsteps by creating your own hashtag-based campaign.

You can start a hashtag with your company name in it to drive tons of branded traffic and explode your customer growth.

2. Leverage User-Generated Content

One of the best user-generated content campaigns I have ever seen used a batch of micro-influencers.

In January of 2015, the Hawaiian Tourism board took micro-influencer campaigns to a new level:

They leveraged the power of micro-influencers in a way that revolutionized Instagram marketing.

Here’s what Vince Soliven, the executive creative director of the campaign, said about it:

When you have a social media star who is ‘a regular person,’ it bridges the gap for the consumer. If this person is having this experience, it’s not fabricated, it’s not the result of some crazy $5,000 photo shoot. They got that with a GoPro. Maybe I could have that experience, too.

Hawaii’s “Let Hawaii Happen” campaign generated 100,000 posts in a single year.

On top of that, the campaign reached 54% of all U.S. travelers!

The cherry on top: 65 percent of people who saw the campaign said that they planned to visit Hawaii in the next year or two.

They did this by leveraging local Hawaiian micro-influencers like Lindsey Higa:

They focused on influencers who connected to their ideal vision and brand image.

Despite being a boring tourism board, they were able to generate incredible traction and drive high amounts of interest in travel.

One of the key reasons that they found such success was because of user-generated content.

They didn’t merely post pictures on their account.

They allowed influencers to post pictures for them, suggesting authenticity and boosting their credibility.

In fact, 93 percent of consumers find UGC to be an influence when making a buying decision!

On top of that, UGC can increase your campaign conversions by 29% on average.

Thankfully, it’s not hard to start leveraging UGC in your campaigns.

Buffer does it all the time:

User-generated content may be the “ace in the hole” for your next micro-influencer campaign.

Focus on creating great connections with your influencers and using them to position your brand with a trustworthy image.

3. Create Sponsored Posts

Sponsored posts are similar to UGC in that you focus on getting the influencers to post the content on their own accounts.

These posts drive up engagement and create a more authentic brand vision.

They also allow your influencers to make detailed videos or content pieces surrounding your product.

This publicity reinforces your brand to the audience and gives you valuable traffic and interest.

You can see this all the time on Instagram:

instagram microinfluencers sponsored post

They are on YouTube, too:

Sponsored posts are one of the most common ways to leverage a group of influencers, and it works great for micro-influencer campaigns as well.

One of the best ways to do this is by reaching out to your desired influencer and offering to send them free products in exchange for honest reviews.

If you already have influencers that you work with, it’s even easier. Depending on your campaign contracts, you can simply ask them to post sponsored content!

It’s no secret that influencers hold significant power to drive conversions.

People trust them, and they will trust what they recommend.

Use this to your advantage by having your influencers create sponsored posts for your brand.

4. Tell a Story With Your Promotion

Storytelling increases conversions. There’s no doubt about it.

A few years ago, when I was starting to ramp up my blog, I was struggling to get visitors.

My blog posts were great. I was posting consistently, but the blog wasn’t compelling users to stay.

So I started to personalize it by telling stories with my content that people could relate to.

Here’s what happened:

micro influencers guide increase in visitors due to storytelling.

In just a few months, my traffic started to skyrocket.

I found the growth I never knew I had access to!

The same goes for micro-influencer marketing.

Storytelling drives conversions naturally because people begin to care about you and your brand.

For example, check out how American Express uses influencers to tell stories:

american express storytelling example micro influencers guide

They connect a boring consumer product to the desires of nearly every human: travel, exploration, and fun.

The influencer doesn’t merely post a sponsored post saying “AMEX is the best!” Instead, they use a story to craft why AMEX fits the influencer’s life.

It helps people bridge the gap between a boring product and developing the need for that product in their daily lives!

Ultimately, they are much more likely to understand why they need it.

To start using storytelling, inspect your preferred influencer platform. Look for specific micro-influencers who already have a story.

For example, do they love to travel?

microinfluencers guide lukebarrow travels example

Are they a popular niche micro-influencer?

NeilPatel com 4 Ways to Use Micro Influencers to Gain More Customers txt Google Docs

The goal here is to find influencers who fit your brand story.

For example, let’s say your brand donates part of the sales it makes to charity. In that case, find someone who travels the world volunteering and helping third-world communities.

If your brand gives computers to underprivileged kids, find an influencer who works with similar groups.

Telling a detailed story with your marketing is one of the best ways to drive sales and gain more customers.

I’ve personally used it on my blog to gain more clients and scale growth.

I even use it on social media when I share personal posts:

It helps connect people to your brand in ways that sponsored posts and UGC simply can’t.

It’s another level of influencer marketing that gives people inspiration, purpose, and a reason to love (and talk about) your product.

Be sure to incorporate storytelling into any micro-influencer campaign you run.

Micro-Influencers Conclusion

Driving more sales and landing more customers is a grind.

That’s especially true in today’s world where every niche and subset of that niche has a competitor.

There are countless businesses just like mine and just like yours.

So how do you compete? How do you drive sales in such a difficult environment?

Well, most people turn to SEO or PPC.

However, SEO takes months to start bringing in reputable, quality traffic, and PPC is a nightmare when you have other things to focus on.

So what do you do?

You start investing in influencer marketing.

Specifically, with micro-influencers.

It’s a growing niche within the influencer-marketing space that is seeing a huge return on investment.

Start by scouting micro-influencers. HYPR is one of the best tools you can use to compile a list of micro-influencers to utilize.

Remember, influencers with fewer than 10,000 followers will net you the best bang for your buck when it comes to engagement.

Next, use campaign-specific hashtags. That’s one of the best ways to use micro-influencers to drive tons of growth.

Take advantage of the buying power that user-generated content can give you.

Create sponsored posts to spread awareness quickly.

Finally, get your influencers to tell a story with their posts. It’s one of the best ways to connect users to your product.

How have you found success using nano- or micro-influencers in your marketing strategy?

15 Career & Business Coaching Resources, Tips, and Benefits

As business owners and marketers, we go through manic highs and lows. Things go well for a while, then follow with periods of low performance. This is normal. One way to help get yourself over the hump is with business coaching.

The best business coaches not only coach you in your business but also coach your life as a whole. This post breaks down the details of business coaching to help you better understand what it is and determine whether you need one for your digital marketing.

What Is Business Coaching?

Business coaches help business owners, managers, professionals, and individuals grow as businesses and people. They’re known for offering honest advice and consulting based on personal experience and research.

There are many types of business coaching, but there’s no one-size-fits-all solution. You’ll want to find the type of business coaching services that appeal most to your business and your goals.

What Does a Business Coach Do?

A business coach takes a look at you as an individual. This is the big difference between a coach and a consultant. A coach is going to look at your entire life: all aspects of it. They’ll focus on your achievements, your mistakes, and your behavior to help you grow as an individual.

As you grow on your own, you’ll develop better habits that you can translate into business growth and monetary gain. You should expect the best business coaches to challenge you both emotionally and spiritually. They’ll provide you with honest and sometimes brutal feedback on your performance, and they’ll hold you accountable in your business and personal life.

Your reason for hiring a business coach will likely fit into one of these scenarios:

You’re struggling to get your business off the ground to a sustainable level.
You’ve hit a roadblock and can’t seem to take your business to the next level.

Regardless of where you are on your professional journey, a business coach can help you accomplish the goals weighing on you.

6 Benefits of Business Coaching

Business coaching for entrepreneurs, business owners, or executives is all about the benefits. Everyone wants gratification without having to put the work in. It’s important to know that the best business coaches require a lot out of you. If you’re willing to put in the work, here are some of the benefits you could receive.

Increased Self Awareness

One of the best gifts we could ever receive in life is self-awareness. When we’re aware of our strengths and weaknesses, it makes it so much easier for us to capitalize on what we’re good at and make the most of every step.

Instead of focusing on our weaknesses, worrying about them, and minimizing ourselves, business coaching should teach us to focus on what we’re good at and double down on it.

Business coaches can help you find the fire inside of you to pursue the things you want, and along the way, you may realize you’ve been doing the wrong things all along.

More Confidence

Business coaching teaches you to be more confident. The job of a coach is not to bring you down but to lift you up and help you realize that you’re better than you thought. Sometimes, low confidence and self-esteem are the only things holding you back.

Sometimes we need someone to kick us into gear and tell us that we can accomplish the task that’s been plaguing us for so long.

However, sometimes we need someone to provide us with a healthy dose of reality, too. Confidence isn’t always about lifting us up and telling us how great we are. The best business coaches also tell us when they think we’re making a poor choice. You can go forth with confidence, knowing what you’re doing is the best thing for you, and no matter what happens, it’ll be okay because you’re capable of taking on anything. That’s confidence.

Comfort Outside Your Comfort Zone

An area that a lot of business owners and marketers fall into is a state of comfort. You reach a point where things are going well with your business, you don’t have to hustle as much anymore, and you can live comfortably off the money you’re making. That sounds great if you’re not at that point yet, but like everything else, it gets old.

Few entrepreneurs are satisfied with this because they’re used to the hustle and chasing after their dreams. When you achieve what you’ve worked so hard for, it’s easy to become anxious for the next thing.

Increased Clarity About Your Direction

On less of a mindset note, business coaches are going to help you with the business itself, of course. Sometimes it helps to have someone come and look at your operations, finances, HR, and everything from an outside perspective. They’ll see things you miss in the day-to-day trenches of running a business.

A business coach can help you identify bottlenecks in your process and provide you with a clear and concise plan for what you should do over the next 3, 6, 9, and 12 months.

This clarity is important because you’ll know exactly what you need to do. It doesn’t mean that if you do those things, you’re sure to achieve any results at all, but the clear goals are what matters. Business coaching helps make you aware of the things you may not have seen otherwise.

A great example is with business owners that want to do everything themselves. The “freelancer” mentality is hard to break because the individual is so used to doing everything on their own, they’re afraid to let go of some of that control.

Business coaches can help freelancers work less “in their business” and more “on their business.” When you see it from that perspective, it becomes easier to make the necessary changes.

Boosted Productivity

Productivity is one of the number one reasons why people hire business coaches. Everyone feels like there are some magic secrets to increasing your productivity, but that’s not usually the case. It’s often something much simpler than you think.

A business coach can help you get on a healthy schedule and develop the right habits. When you’re a business owner or marketer, and no one is standing over your shoulder telling you to work 9-5, it can be a lot harder to get things done.

It’s all about habits. Suppose you can get yourself in the habit of showing up to work at the same time every day, blocking off periods for work, taking short breaks, and limiting distractions. In that case, you’ll have a much easier time accomplishing your goals, which trickles down and impacts a lot of the other benefits of hiring a business coach in the first place.

Better Accountability

This could be one of the most important pieces of the success puzzle. If you don’t have the discipline to kick yourself in gear, work when no one is telling you to, and hold yourself accountable, you’ll likely struggle as an entrepreneur.

Many of us don’t have the discipline and need someone to help us develop the right habits. It only takes about 66 days to develop a new habit, so if you can do something for a little over two months, you should have an easier time sticking to it.

Once you’ve built that initial foundation, you can then train yourself to be accountable for your actions. One thing I’ve found over the years is that I tell myself that “I want to be proud of myself.”

It might be a little vain, but think about it: When you goof off all day, accomplish less than you said, and push things off until tomorrow, how do you feel?

You probably don’t feel very good about yourself. The opposite is said for the days you break through barriers, tackle everything, and walk away feeling accomplished. You feel unstoppable.

4 Tips for Finding an Effective Business Coach

When it comes to finding a business coach, you must choose the right person. This individual or team needs to align with your goals, niche, and perspective on life and your business.

Match them with your niche: You want business coaching from a professional who understands the challenges of your unique industry. If the business coach you hire doesn’t have any actual experience, you might not get the most out of them.
Make sure their philosophy aligns: We all have a certain philosophy in life pertaining to ethics and beliefs. You should never have to change that for success in business. If the business coaching you’re receiving offends or insults what you believe, you should likely find someone else.
Read reviews: Make sure the coach you hire has a strong online reputation and presence. Checking out reviews from other people is a great way to gain insight into what your experience will be like.
Determine your goals ahead of time: Before you hire a business coach, you should have goals in mind, whether they apply to marketing, SEO, keyword research, or mindset. No matter what your goals are, the business coach you hire should listen to them and take into consideration what you want.

Business Coaching Platforms and Resources

As business coaching continues to grow, more and more tools and resources are becoming available. If you’re interested in receiving coaching in your business or life, here are some of the best platforms available.

Interview Kickstart

Interview Kickstart is one portion of the “knowledge coaching” trend. The platform teaches programmers how to handle technical interviews and has helped people land jobs for companies like Amazon and Netflix. This has caused people to take notice: Interest in the company has grown by a staggering 2700 percent in the last five years.

Building Champions

This platform offers trainers, events, and team workshops to help small business owners and managers become the best version of themselves. The company has been around for 25 years, so you don’t have to worry about reputation and social proof. They break down every aspect of your life, from the personal to the business stuff.

Melinda Emerson

Considered America’s number one small business expert, Melinda Emerson offers a ton of great resources for women entrepreneurs and business owners. She has information on how to grow your social media, market your business, and understand the boring financial side of business as well. She can help get your company off the ground or take it to the next level.

CEO of Your Life

I’m a big fan of business coaches that find a great way to meld business and personal life together into one program, and Melissa Dawn has done a nice job of this. She focuses on your spirituality and personal life to help you become not only the best CEO of your business but the best CEO of your life.

Neil Patel

I offer many great resources to help you with your SEO, content marketing, and paid advertising. If you feel like you have most of your business in order but need a little help with your marketing campaigns, we can help with that.

Career, Executive, and Business Coaching: FAQs

Here are some of the most frequently asked questions about business coaching and hiring a coach.

How much does business coaching cost?

The cost of business coaching can vary dramatically from $100-1,000 per session. It depends on many factors, such as the demand of the coach and the level of personalization put into the coaching program.

How to start business coaching?

If you want to start business coaching, there are many ways to get started. Many people in many different industries are looking for help.

What services do business coaches offer?

Hiring a business coach is like having a partner, so the business coach should offer whatever services you need the most. They should put together an individualized plan that addresses your needs.

What is the first meeting with a business coach like?

During your first session with a business coach, they will likely talk about your needs, issues, pain points, and goals to tailor a strategy to help you.

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Conclusion of Business Coaching Guide

No matter who you are, we all need help sometimes to get ourselves back on track. Whether you’re trying to manage your team better, be more productive, or optimize your budget more efficiently, the best business coaching helps you accomplish the goals that have been weighing on you.

Have you ever hired a business coach? If so, what is the number one reason?

9 Funding Options to Fit Any Business

What are the business funding options? There are a ton. For example, a startup may choose to seek a business loan, find an angel investor, pitch to a venture capital investo r, or try crowdfunding. An established business might look to traditional loans or credit cards. But, what if these options will not work? What if you do not qualify? What if you can’t wait for the cash?

Find the Right Funding Options for Your Business Right Now

There are options for funding that will work for most businesses right where they are. Some require collateral, some do not. Some require good credit, while others look at alternative factors to determine the business’s ability to repay. Here are 9 funding options to help you get the money you need for your business right now.

Learn business loan secrets and get money for your business.

Funding Options With No Collateral

If you are looking for fast, flexible funding options that do not require collateral, you need one of these.

9. Credit Line Hybrid

The credit line hybrid is unsecured business financing. It is available to pretty much anyone for any type of business expense. You can use it for real estate, equipment, working capital, and even startup expenses. There is no down payment, and you do not have to provide income documentation. It is completely no-doc financing.

You do need to have personal credit of 680 or above. Also, there cannot be any late payments in the past 24 months, there can be no open collections or bankruptcies, and there should be less than 6 inquiries in the past 6 months on your consumer credit report. In addition, you need at least 2 open credit cards with a $2,000 limit or higher and 2 years of good payment history on those cards.

If you do not meet these requirements, you can still get this funding. You have the option to take on a credit partner that does meet them. The payments will still be reported on the business’s credit report. That means you will build business credit whether you get the financing on your own or with a credit partner.

You can get up to $150,000, and often interest rates are as low as 0% for the first 6 to 18 months.

8. Business Line of Credit

A traditional business line of credit is like a cross between a traditional loan and a business credit card. You go through a traditional bank and apply just like you would a loan. It may be collateral based or not, depending on your lender’s requirements. You may also use a guarantor to help reduce rates and get better terms if needed.

The difference between a traditional loan and a traditional business line of credit is that the line of credit is revolving credit rather than a term loan. Like a credit card, you only pay back what you use. Also, lines of credit typically have lower interest rates than business credit cards. The trade off is, there are no rewards like cash back or air miles.

At Credit Suite, our funding partners offer an unsecured line of credit that has a minimum FICO score requirements of 600. You also must show business tax returns with net profits over $20,000 if you have been in business between 6 months and a year. If you have been in business for over a year, you need to show $10,000 in monthly revenue. These requirements are much easier to meet than those typically set forth by lenders.

Terms are 6 to 18 months and interest rates range from 12% to 25%. You can get up to $250,000.

Learn business loan secrets and get money for your business.

Funding Options for Bad Credit

If your credit isn’t exactly good, you still have options. The following funding options are available with a minimum credit score of 500.

7. Business Revenue Lending

A business that has consistent revenue of $120,000 per year or more may qualify for this type of funding. Lenders verify revenue using bank statements. There can be no recent bankruptcies, but the minimum credit score to qualify is 500.

The business must also be in operation for a year or more, and it must do over 5 small transactions each month to get business revenue financing.

6. Merchant Cash Advance

A business that accepts credit card payments and has at least a 500 FICO can get up to $750,000 in a merchant cash advance. Credit rates are usually lower compared to traditional financing as well.

There must be $100,000 or more per year in credit card sales, and typical approval equals one month’s credit card financing volume.

5. Accounts Receivable Financing

Outstanding account receivables can also be a source of funding for your business. Get as much as 80% of receivables advanced in less than 24 hours. You get the rest of the accounts receivable amount once you collect full payment for the invoice. Closing takes 2 weeks or less.

Receivables should be with the government or another business. Getting financing with receivables from individuals is not as easy.

4. Retirement Account Financing (Rollover for Business Startup, or ROBS)

This Credit Suite program offers a flexible and powerful way for a new or existing business or franchise to leverage assets that are in a 401(k) plan or IRA.

It doesn’t take long either. In as little as 3 weeks you can actually invest a portion of these funds into your own business. Then, you not only have more control over the performance of your retirement plan assets, but you also have the working capital you need.

According to the IRS, a ROBS qualified plan is a separate entity. It has its own set of requirements. The plan technically owns the business, not the individual. That means some filing exceptions for individuals might not apply to the plan. That said, always check with a tax expert when it comes to tax matters.

Learn business loan secrets and get money for your business.

Do You Qualify for a ROBS?

You do not have to submit financials or have good credit to get approval. In fact, all the lender will ask for is a copy of your two most recent 401(k) statements.

If the plan has a value of more than $35,000, you can get approval. This is true even if you have really bad personal credit. You can get however much of your 401(k) is “rollable.” Sometimes, you can secure a low-interest credit line or loan for 100% of your current 401(k) value.

The plan you use cannot be from a business where you currently work. It will have to be from previous employment. Also, you can’t still be contributing to it.

The cost is 5.25% prime + 2, and the term is 5 years. There is a $1995 lender fee. This includes 5 years worth of management and consulting.

Funding Options for Equipment or Real Estate

If your credit is lacking but you do have equipment or real estate to use as collateral, you may find these options to work well.

3. Equipment Financing

You can secure this type of financing by using existing equipment or new equipment you want to purchase as collateral. Funding is available up to $10 million. Terms range from 5 to 60 months, and you need a minimum 550 FICO.

The equipment must be new, and most types of equipment are acceptable, including software.

You’ll need to provide details on the equipment to be financed and, depending on the loan amount and certain risk factors, you may need to show 2 years corporate and personal tax returns.

2. Commercial Real Estate Financing

As you might expect, this is a loan that is secured by commercial real estate. You can get up to $10 million with terms from 6 to 60 months and interest rates ranging from 6% to 22%. The minimum credit requirement is 500, so this can be a good option if you don’t have great credit as well.

Funding Options with Good Credit and Collateral

SBA loans are an option if you are close to meeting the requirements for a traditional loan but not quite there. They offer the highest dollar amounts and typically the best terms.

1. SBA Enterprise Loans

You need to have collateral worth up to at least 50% of the loan amount, but you only need a FICO of 620. There also can be no bankruptcies in the past 4 years. Only for profit companies qualify, and they must have positive trends in sales growth. Generally amounts are available of up to $12 million with terms up to 25 years.

Which Funding Options Are Best For You?

If you only qualify for one type, this is a no brainer. But, what if more than one option will work? You need to weigh the cost vs. the benefit. For example, is not having to use collateral worth a higher interest rate? Can you get the amount that you need? Will one option get cash in your hands faster than the other? Do you need the money faster, or can you wait a bit to take advantage of better terms or rates?

When it comes to any of these funding options, it is best to work with a business credit expert. This is someone that can listen, take what you need, apply it to what is available to you, and help you choose the best option that you can get.

Not only that, but they can help you evaluate the fundability of your business and make changes if necessary to ensure you can get the best funding options available far into the future.

Start the process now with a free consultation.

The post 9 Funding Options to Fit Any Business appeared first on Credit Suite.

Establish and Maintain Rock-Solid Business Credit When You Have No Business Credit. Check Out 3 Well-Known Starter Vendors for Business Credit That Will Happily Extend Credit to New and Established Businesses

Building The Perfect Business Credit Portfolio with Starter Vendors for Business Credit

A perfect business credit portfolio means working with starter vendors for business credit. Starting with vendor credit accounts is a proven way to start building business credit. But we don’t include vendors just because they report to the business credit reporting agencies. We include them and we talk about them because they have quality products that you can use, and great customer service. They are not just a means to an end!

Vendor Credit Cards

Vendor credit cards will kick off business credit building for your business. First, add payment experiences from three vendors. Then they must report to business CRAs like Dun & Bradstreet. And then you can start qualifying for store credit, and fleet credit as well. Make sure business credit cards don’t report on your personal credit.

Every step and every credit provider works to help your business. The idea is to help you qualify for business credit cards that you will actually use. This isn’t building for the sake of building, and it isn’t just to increase a number. These credit providers are going to have what your business needs to succeed.

Business Credit with Starter Vendors for Business Credit

Keep in mind, business credit is independent of personal. Applying for it won’t harm your personal credit scores. Building this asset can only help your business. You can help your future business right now.

Business credit doesn’t just happen. You have to actively build it. It all starts with starter vendors. They will approve your business for credit with little fuss.

Use your credit. Pay on time, just like you should with personal credit. These vendors will report to the business credit reporting agencies. And you’ll build a good business credit score.

How to Build Business Credit

Having an EIN doesn’t mean you have established credit. If you go to a bank to try and get bank credit cards using your EIN with no credit established, you’ll get denials. That is unless you have good personal credit and use it to get approvals while supplying your personal guarantee. But it doesn’t have to be that way.

You can’t start with high limits. First you must build starter trade lines that report (vendor credit). Then you’ll have an established credit profile. Then you’ll get a business credit score. With an established business credit profile and score you can start getting high credit limits.

Establish business credit fast with our research-backed guide to 12 business credit cards and lines

What is Starter Vendor Credit?

These trade lines are creditors who will give you initial credit when you have none now. These vendors typically offer terms such as Net 30, instead of revolving. So if you get approval for $1,000 in vendor credit and use it all, you must pay that money back in a set term. That is, within 30 days on a Net 30 account. But there are some revolving accounts which we still consider to be starter vendors.

You must pay net 30 accounts in full within 30 days. And you must pay net 60 accounts in full within 60 days. Unlike with revolving accounts, you have a set time when you must pay back what you borrowed or the credit you used.

Getting Started

To start your business credit profile the RIGHT way, get approval for vendor accounts that report to business CRAs. Once accomplished, you can then use the credit. Pay back what you used, and the account is on report to Dun & Bradstreet, Experian, or Equifax.

Once reported, then you have trade lines, an established credit profile, and an established credit score. Using a newly established business credit profile and score, you can then get approval for more credit under your EIN. For vendor credit, you can leave your SSN off the application. Then the credit issuer then pulls your EIN credit, sees a solid profile and score. They can then approve you for more credit.

Building Business Credit – What You Really Need to Know

Not ALL retailers will approve you just because of your credit profile and score. Some sources can also have a time in business requirement. You may need to be in business 1-3 years to get credit not requiring a personal guarantee. Some sources might require you meet certain revenue requirements for as well. But many starter vendors will approve you without these requirements.

But Keep in Mind

You won’t get a Visa or a MasterCard (bank credit cards) right away. And you need to have credit to get more credit. You need to start building trade lines to get the big payoff. Getting initial credit is the hardest part. Over 97% of trade vendors who issue credit don’t report it to the business reporting agencies. So, you MUST find sources which actually report.

Establish business credit fast with our research-backed guide to 12 business credit cards and lines.

There are Benefits to Starter Vendors for Business Credit

Vendor credit is an important step in building business credit. Vendor credit is easier to get than retail or fleet credit. It can lead to more retail and fleet credit. Establishing credit will lead to lenders approving you. And best of all, this process is PROVEN to work! Just like for all credit, be responsible and pay on time.

More Benefits of Starter Vendors for Business Credit

You MUST have 3 or more vendor accounts reporting to move onto retail credit, and more are even better. It will take 30-90 days for those accounts to report. It’s 60 days on average. Do NOT apply for retail credit without having 3 or more accounts first.

Getting Starter Vendors for Business Credit to Pull Credit Under your EIN

There is no Social Security requirement for starter vendor credit. This is unlike bank loans and bank cards. So leave the field blank. Don’t fill in any other number, as that’s a violation of two Federal laws. A blank field will force them to pull your business credit under your EIN. Also, if there is a credit check, then it is perfectly permissible to provide the company’s EIN. You can use an EIN, rather than your Social Security Number and date of birth.

Using Business Credit

Check out FOUR of our favorite starter vendors for business credit:

Grainger
Uline
Marathon
Supply Works

Grainger Industrial Supply

They sell hardware, power tools, pumps and more. They also do fleet maintenance

Grainger will report to Dun and Bradstreet. If a business doesn’t have established credit, they will want to see more documents. These include accounts payable, income statement, balance sheets, etc. Terms are Net 30, Net 45, Net 60, or Net 90.

Qualifying for Grainger Industrial Supply

You need:

Entity in good standing with Secretary of State
EIN number with IRS
Business address (matching everywhere)
D-U-N-S number
Business License (if applicable)
Business Bank account
And your business must be registered to Secretary of State (SOS) for at least 60 days

Apply online or over the phone.

Uline

They sell shipping, packing and industrial supplies. They report to Dun & Bradstreet and Experian. You MUST create an account with Uline before starting to build business credit with them. Terms are Net 30.

Qualifying for Uline

You need:

Entity in good standing with Secretary of State
EIN number with IRS
Business address (matching everywhere)
D-U-N-S number
Business License (if applicable)
Business Bank account
And a business phone number listed in 411
You must have a D&B PAYDEX score of 80 or better

Application may get approval for net 30 at time of order. Upon final review, Credit Department may change to a few prepaid orders, before granting Net 30.

Establish business credit fast with our research-backed guide to 12 business credit cards and lines.

Marathon

Marathon Petroleum Company provides transportation fuels, asphalt, and specialty products throughout the United States. Their product line supports commercial, industrial, and retail operations. This card reports to Dun & Bradstreet and Experian. Before applying for more than one account with WEX Fleet cards, make sure to have enough time between applying. This is so they don’t red-flag your account for fraud.

Qualifying for Marathon

You need:

Entity in good standing with Secretary of State
EIN number with IRS
Business address- matching everywhere.
D-U-N-S number
Business license (if applicable)
And a business bank account
Business phone number listed on 411

Your SSN is necessary for informational purposes. If concerned they will pull your personal credit talk to their credit department before applying. You can give a $500 deposit instead of using a personal guarantee, if in business less than a year. Apply online or over the phone. Terms are Net 15.

Supply Works

Supply Works is a part of Home Depot. They offer integrated facility maintenance supplies. But they will not accept virtual addresses. They will report to Experian. Terms are Net 30. Apply online or over the phone.

Qualifying for Supply Works

You need:

Entity in good standing with Secretary of State
EIN number with IRS
Business address (matching everywhere)
D-U-N-S number
Business License (if applicable)
Business Bank account
Trade/Bank references
There is no minimal time in business requirement

Extra BONUS Vendor: Wex Fleet

They report to Experian and D&B. They offer universal fleet cards, heavy truck cards, and universally accepted business fleet cards. Their cards have features supporting a small business. This includes a rewards program. Before applying for more than one account with WEX Fleet cards, make sure to have enough time between applying. This is so they don’t red flag your account for fraud.

If you don’t get an approval on the basis of business credit history, or been in business 1 year, then a $500 deposit is necessary or a Personal Guarantee. You can apply online or over the phone. Terms are Net 15 (Wex Fleet Card), Net 22, or revolving (Wex FlexCard).

Qualifying for Wex Fleet

You need:

Entity in good standing with Secretary of State
EIN number with IRS
Business address (matching everywhere)
D-U-N-S number
Business License (if applicable)
Business Bank account
And a Business Phone Number Listed in 411

Starter Vendors for Business Credit: Takeaways

Starter vendors are a PROVEN way to get the business credit ball rolling. They will approve you with minimal fuss. Certain requirements repeat. These include needing to have EIN and D-U-N-S numbers. And having proper licensing (if your industry requires that). Hence getting those details squared away is a smart step to take first. Want more help with building business credit? Ask us how we can help you – including our access to literally HUNDREDS of vendors. Let’s take the next steps together

The post Establish and Maintain Rock-Solid Business Credit When You Have No Business Credit. Check Out 3 Well-Known Starter Vendors for Business Credit That Will Happily Extend Credit to New and Established Businesses appeared first on Credit Suite.

Business Credit Builder: Avoid Major Credit Blunders with this Simple Tool

Credit is a complicated creature. The second you think you have it figured out, it turns on you. Truly, if you don’t handle it just right, it can morph from powerful ally to mortal enemy in a flash. This is especially true if you are trying to run a business. Thankfully, the Business Credit Builder can help in a big way.

Get our business credit building checklist and build business credit the fast and easy way.

3 Major Credit Blunders and How the Business Credit Builder Can Help

Across the ages, one major problem business owners face is funding. Funding is an issue that cuts across all industries, all owner experience levels, and all business entity types.

One reason business owners may have trouble finding funding is, they do not realize there are actually two types of credit. Not only is there personal credit, but there is also business credit. Once this simple revelation comes to light, the trajectory of the business can begin to change for the better. Personal finances do not have to suffer.

What is Business Credit?

Business credit is credit in the name of your business only. It is based on how likely the business is to repay bills, not the owner.

As a result, business credit accounts do not show up on your personal credit report. In fact, they do not affect your personal credit score at all. In addition, the business is responsible for repayment, not the owner.

Why Do You Need Business Credit?

Few business owners understand all the benefits of business credit.

Some of these include:

Liability protection
Lower debt-to-credit ratio on your personal report
And higher credit limits

How the Business Credit Builder Can Help

So, how do you build business credit? How do you get accounts that are not connected to your personal credit? With the Business Credit Builder of course! It sounds simple, but here is the thing. While building business credit is not necessarily hard, there are a lot of steps. It can be overwhelming without guidance.

This is where the business credit builder comes in. It can help guide you through the process. Even better, it can help you avoid these three major credit blunders, among others.

Blunder 1: Ruining Personal Credit with Business Debt

This is a huge problem. So many business owners do not know that they can get business credit without a personal guarantee. These are credit accounts that will not affect your personal credit profile should your business not be able to pay.

Of course, being personally on the line for business debt can cause a lot of issues. For an extreme example, consider the case of West Virginia Governor Jim Justice. He personally guaranteed over $700 million in loans for his coal company, Bluestone Resources. The loans were through Greensill Capital, which is now defunct. The downfall is due to an insurance carrier choosing to no longer underwrite funds for the popular finance company. As you can imagine, the domino effect is vast and far reaching.

Get our business credit building checklist and build business credit the fast and easy way.

Currently the impact on the Governor’s personal finances remains to be seen. However, it’s not hard to imagine the devastation something like this could wreak on a small business owner. Fortunately, working to build business credit with the Business Credit Builder can help you avoid this type of credit blunder and protect your personal finances.

Blunder 2: Ignoring Fundability Factors

Fundability is the overall ability of a business to get funding. There are over 100 factors that affect it. That makes it difficult for the average small business owner to navigate and assess the fundability of their business on their own.

The first part of this is what you will work through in Step 1 of the Business Credit Builder. It walks you through the process of building a foundation of fundability. After all, you wouldn’t build a house on a shaky foundation. You shouldn’t try to build business credit without a strong, fundable foundation either.

Blunder 3: Accounts Not Reporting

The only way to get a business credit score is to get accounts that will report to the business credit reporting agencies.

Honestly, this is tricky. With consumer credit, pretty much all accounts report payment history to your personal credit report. In contrast, only about 7% of companies that issue business credit report payments to business credit reports. Without this payment history, you do not have a business credit score.

Get our business credit building checklist and build business credit the fast and easy way.

What makes it harder is the fact that most companies that do report do not make that fact common knowledge. In fact, the only way to build business credit payment history on your own is through trial and error. You have to guess at which vendors will report your payments. And of course, there is the fact that you have to get accounts that will not only report, but that will extend business credit before you actually have a business credit score so that you can get started.

How the Business Credit Builder Helps You Get Accounts Reporting

Step 2 helps you establish your initial business credit profile, so that accounts have something to actually report to.

Then, in Step 3 of the Business Credit Builder, you will get exclusive access to starter vendors that will issue net invoices without checking credit. Then, they report your payments on those invoices to the business credit reporting agencies. We remove the need for trial and error and show you the exact accounts you can get to get the business credit score process going.

After enough of these types of accounts are reporting payments, you will qualify for more types of accounts.

Step 4 addresses this by showing you how to get copies of your business credit reports and see which accounts are reporting. You will also have the opportunity to review these reports with one of our expert advisors to learn more about what it says and how to address issues and mistakes.

How do you know when you have enough accounts reporting? How do you know which accounts to apply for next? Fortunately, the Business Credit Builder can guide you. In fact, this is your all-in-one tool for business business credit.

Steps 5-7 take you through the process of adding accounts to continue to build credit. As you gain enough accounts in each step, you will unlock access to vendors that will both approve you at your current step in the process and report your payments.

Other Benefits of the Business Credit Builder

In addition to all of this, there are a number of other benefits to the program. For example, you will get free, unlimited use of a business valuation tool. This will allow you to see what your business is worth right now, and monitor its growth into the future.

You’ll also have the opportunity to save up to 90% on business credit monitoring, and have access to expert help. You’ll get a whole year of business advisor support and 5 years of finance officer support, all included!

Are You Ready to Get Started?

Honestly, the best way to start is get a free consultation with a business credit expert. This is someone who can help you determine where your business stands now, help you find financing, and help you determine if the Business Credit Builder is right for you.

The post Business Credit Builder: Avoid Major Credit Blunders with this Simple Tool appeared first on Credit Suite.

Inflation and Your Small Business

Inflation Can Affect Your Small Business – But is it Coming at all?

How does inflation affect small businesses like yours? And is it really on the horizon, anyway? Experts aren’t sure.

Prices are starting to go up. Wages are sometimes keeping up. Everyone has experienced it. You’ve undoubtedly noticed that fuel prices go up and down, or a movie costs more than it used to. And if you’ve had to have construction done, you may have noticed the price of lumber rocketing up.

It’s not your imagination. According to US News and World Report, “Prices for materials and components used in construction spiked 4% in May from April and were up over 17% from a year earlier, according to the Labor Department. Manufacturers paid 2% more last month for materials than they did in April and 21% more than in May 2020. Also in the mix: intense competition for workers that has some companies paying more to attract new hires and retain current staffers.”

What is Inflation?

According to Forbes, “Inflation occurs when prices rise, decreasing the purchasing power of your dollars.”

Seems simple enough. But it goes beyond a few higher prices on one or two goods or services. Rather, it’s an across the board increase in prices, across a sector or an industry.

In small doses, it’s actually good for the economy. It pushes consumers to buy, rather than save. Because holding onto funds means their value will diminish over time. Buying, of course, keeps small businesses viable.

Is Inflation Really Going Up?

You’d better believe it. Check out this chart from YCharts. “The US Inflation Rate is the percentage in which a chosen basket of goods and services purchased in the US increases in price over a year.”

Per the chart, June of 2020 had a rate of 0.65%. But about a year later, this same metric is up to 4.99%. Particularly concerning is the fact that the rate has leapt up in the last few months – from 2.62% in March 2021, to the near-5% recorded last month.

That YCharts page goes back to April of 2017. The rate has stayed at 2.95% or less until April of 2021, when it was already over 4%. That was a historically large increase.

How Does it Affect Small Businesses?

Beyond price increases for goods and services, it can also affect how you price your own goods and services. Whether your business serves consumers, other businesses, or the government, it doesn’t matter. Inflation will cut into your profit margin. That is, unless you raise your prices. And then your business customers raise theirs, thereby perpetuating the cycle. Or your government clients print more money or borrow and rack up municipal debt. Or your individual customers buy less. They may even take their business elsewhere.

Demolish your funding problems with 27 killer ways to get cash for your business.

What if There Was Another Way to Get a Cash Infusion Without Having to Jack Up Your Prices?

What you need is business capital. This is the money or wealth needed to produce goods and services. In the most basic terms, it is money. All businesses must have to buy assets and maintain their operations. Business capital comes in two main forms: debt and equity.

Getting capital for business financing should be your concern. That’s regardless of what the economy may be doing.

Business financing is the act of leveraging debt, retained earnings, and/or equity. Its purpose is to get funds for business activities, making purchases, or investing. This is the act of funding business activities.

With lower retained earnings and perhaps less equity, it’s time to leverage debt.

How to Request a Credit Line Increase to Keep up with Inflation

Start off by understanding that some credit cards and lines won’t be eligible for an increase. For example, secured business credit cards are limited by how much you put in to secure them. Can you get a higher credit line with a secured credit card by putting in more money to secure it? It depends on the issuer.

Another class of cards and lines that tend to not be eligible for increases? New credit cards and lines. Providers like Capital One won’t increase a credit lines for new accounts opened within the past several months.

Providers may also want to allow for some time between credit line increase requests. But the amount of time in between isn’t a standard in the credit industry.

Requesting a Credit Line Increase

Let’s operate under the assumption that the standard reasons for denial do not apply. How do you actually ask for a credit line increase?

First off, you need to approach this task from a position of strength. This means paying off your balances as much as possible. It also means waiting for at least one billing cycle to elapse so the newer, lower balance will show up.

Reporting all your income will also be helpful. Because your card or credit line issuer only wants to know if you can pay them back.

The provider may very well ask why you’re looking for a credit line increase. And your provider may ask for some documentation, such as annual revenue and expenses. Having this information at your fingertips will go a long way toward getting to a ‘yes’.

Demolish your funding problems with 27 killer ways to get cash for your business.

Asking for a Credit Line Increase – How to

In general, you can make your request either by phone or online. At Bank of America, for example, you sign into online banking. Go to Account Summary, then Card Details, and then Request a credit line increase. Or you can call their Customer Service Info Line, at (800) 732-9194.

Don’t ask for an enormous amount. If your credit limit is currently $10,000, you’re most likely not going to get an increase to $50,000 all in one shot. But an increase to $15,000? If your balances are good, then it’s very possible.

Credit Line Increases: the Pros and Cons

The most obvious pro is getting access to more debt for business financing. But recognize one major con – the likelihood of a hard inquiry. Hard inquiries can bring your credit score down. But if you truly need the increase and have a good credit score to begin with, then requesting an increase is a good idea. The positives, in this instance, would outweigh the negatives.

Demolish your funding problems with 27 killer ways to get cash for your business.

More Business Financing Choices to Combat Inflation

Most of our business financing options can help address the inflationary elephant in the room. Consider our Credit Line Hybrid. You can get several business credit cards, applied for at the same. They provide 0% rates and cash out capability. If you or a credit partner have good personal credit scores, then these are within reach.

Address Inflation Head-on By Borrowing NOW

If interest rates are climbing, borrowing today could say money over borrowing tomorrow. This goes for more than credit cards and lines, but also business loans.

Or Invest NOW

Keeping rapidly depreciating cash on hand won’t do you any favors. Of course you will always need some cash on hand. But if you can pump some of it into an exchange-traded fund or a mutual fund, you can be putting your surplus to work.

But two caveats apply. One, past performance is never a guarantee of future results. And two, always talk to a financial professional before making any investments.

Takeaways

The economy is a little like the weather. It will change, whether we want it to, or not. But you can take some steps to help your small business, both now and in the future. Your small business can get the upper hand over inflation, and come out stronger than ever.

The post Inflation and Your Small Business appeared first on Credit Suite.

How and Where to Get a Women Owned Business Grant

A grant is a great way to fund a business. It’s free money. You don’t have to pay it back. However, grants are highly competitive, so you need every advantage you can get. In addition, you need a backup plan in case you do not get it, or if it’s not enough money. Here are some tips to help increase your chances of getting a women owned business grant.

Learn business loan secrets and get money for your business.

Top Tips to Increase Your Chance of Landing A Women Owned Business Grant

All grant programs are highly competitive. Still, they are still worth the effort to apply. Truly, there really isn’t anything to lose except time and application fees, which are typically minor. A women owned business grant will rarely be enough to fully fund a business. Yet, it may supplement other funding types. Not only that, but often winners receive other support such as mentoring and networking opportunities.

5 Hacks to Increase Your Chances of Winning a Women Owned Business Grant

Of course, there are no guarantees. But, there are some things you can do to increase your chances of winning a grant.

1. Don’t Waste Your Time on the Wrong Grant

Most grant application processes take a significant amount of time and preparation. Don’t waste your time applying for every women own business grant out there. Be intentional to find those that you have the best chance at winning. For example, if you own a restaurant, don’t apply for a grant meant for tech businesses. Rather, pay attention to the requirements and only fill out applications for those that you qualify to win.

2. Do Your Research

Take the time to study up on the history of the program, past winners, and anything else you can think of to learn about the grant. There are a few ways this can help you. First, you may be able to see what past winners have in common and aim to show the decision makers you have similar qualities. It can give you direction when it comes to working on your application materials.

But also, if there is an interview, it can give you background knowledge. This can only help you.

3. Have a Complete Business Plan

Most people think of business plans more in terms of applying for a loan. However, it is vital to grant applications as well. You want to convince the award committee that your business is worth it. Honestly, having a complete, professional business plan goes a long way toward that goal.

4. Customize Your Business Plan for the Grant

There is no need to use the exact same plan, verbatim, for each grant application. You’ve done the research. You’ve seen who won each grant in the past. Now, it’s time to show what you know, and why you should be next. Make certain to include information that the grant specifically asks for. If you share any qualities of previous winners, slip that in. Show them what other funding sources you have. Tell them how you intend to spend the grant funds if you win. Put your best foot forward, this is your time to shine.

5. Don’t Let Time Run Out

Start now researching grants you may be interested in. Pay attention to when applications open and close, and don’t let something simple knock you out of the running. With competition being so fierce, application acceptance after a deadline is virtually unheard of. Also, some grants have more than one deadline with different aspects of the application being due at different times. Pay attention.

Where to Find a Women Owned Business Grant

Now, you need a women owned business grant, or a few, to apply for. Start with these, but the buck doesn’t stop here. There are plenty of local and state options, as well as grants that are not limited by location or type of business owner. There are minority business grants that you may qualify for as well.

SBA Women’s Business Centers

In addition to helping with loans, the SBA Women’s Business Centers also help women entrepreneurs get access to other types of funding. Some lend money or award grants directly, while others help connect women entrepreneurs with financial institutions. Take a look at their website to find out more on how to apply for women owned business grants through this network.

Eileen Fisher Women Owned Business Grant

The clothing brand Eileen Fisher hands out $100,000 per year to 10 women-owned businesses. To qualify, a woman must have at least 51% ownership, and the business must be in operation for at least three years. Also, it must bring in less than $1 million per year in revenue and have a focus on environmental or social change.

Amber Grant

The Amber Grant awards $500 to $1,000 per month to a woman-owned business. One of the recipients also receives an additional $10,000 grant at the end of the year. Applicants only need to tell their story and turn it in with a $15 application fee.

Cartier Women’s Initiative Award

The Cartier Women’s Initiative Award is $100,000 for first place and $30,000 for second place. They award the grant to 18 female business owners from around the world each year. Women business owners who are just getting started may qualify.

All of the finalists get to attend the INSEAD Social Entrepreneurship 6-Day Executive Program (ISEP). They will also have the opportunity to participate in workshops on entrepreneurship and business coaching seminars, as well as be exposed to networking opportunities.

Tory Burch Fellowship Program

The Tory Burch Fellowship Program offers an amazing opportunity for up to 50 winners. An applicant must be a woman-identifying entrepreneur with at least a 51% stake in a qualifying business, or the largest equal stake if it is owned 100% by women.

Applicants must also speak proficient english and be a legal U.S. resident. Nonprofits, ventures in the idea stage, and franchises or subsidiaries are not eligible.

Applications open in the fall, and winners receive a $5,000 grant in addition to a one-year fellowship that includes virtual education, workshops, and guidance.

Learn business loan secrets and get money for your business.

Women Founders Network Fast Pitch Contest

The Women Founders Network offers this unique opportunity each year to female founders. What makes it different is the leadership, coaching, and in-kind sponsorships that are included in addition to the cash prices. The contest also draws the attention of investors, which offers the opportunity to raise even more capital.

A Women Owned Business Grant is Not The Only Answer

While these programs work to meet the unique challenges faced by women business owners, sometimes it just isn’t enough. You need a backup plan. Here are some other funding options that can supplement grant funds, or even replace them if your business isn’t chosen as a recipient.

Grameen

Grameen is one of the few lenders that offers microloans specifically for women. The loan amounts range from $2,000 to $15,000, and they also offer financial training and support.

The Credit Line Hybrid

The Credit Line Hybrid is a form of unsecured business financing. It is available to pretty much anyone for any type of business expense. You can use it for real estate, equipment, working capital, and even startup expenses. There is no down payment, and you do not have to provide income documentation. It is completely no-doc financing. A credit score of 680 or higher is necessary, and there are some other requirements. However, if you do not meet them you can take on a credit partner that does.

You can get up to $150,000, and often interest rates are as low as 0% for the first 6 to 18 months.

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SBA Enterprise Loans

The BEST Way to Ensure You Can Always Get the Business Funding You Need

Remember, you are always going to need funding. Furthermore, grants are not going to be the answer every time. Loans, credit lines, and other financing options are likely going to be necessary throughout the life of your business.

The best way to ensure you have access to these when you need them is to make certain your business’s overall fundability is in order. The thing is, that isn’t as easy as it may seem. There are over 100 factors that affect fundability.

Unfortunately, it’s a complicated puzzle to piece together. Thankfully, you can save time and money by working with a business credit expert. They can help you evaluate your current fundability, help you improve it if necessary, and guide you toward the best funding options for your business right now. Get started with a free consultation with one of our business credit experts today.

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5 Benefits of a VPN for Business

Using the Internet has become a vital part of the working process for many businesses. Nowadays, more and more employees start working remotely, which can lead to the risk of undesirable sharing of corporate data. Various malware and hackers’ attacks prove that additional layers of security are needed. A Virtual Private Network, or a VPN, which is a technology that enables additional levels of security to company information, can be of assistance for online working staff members.

What is a VPN?

A VPN for business is a server that provides a confidential connection over the Internet and keeps your online activity secure. The data is encrypted, which means that people don’t have access to your personal information, therefore it can not be used for any criminal purposes. A VPN in business, as well as in private life, is an essential means for granting security to individuals and enterprises in today’s global world.

Taken from: https://small-bizsense.com

5 Main Reasons to Use a VPN for Business

#1 This is an Additional Method of Protection

Reliable cybersecurity is the basis of a smooth operation for businesses. The bigger the corporation is, the more protection has to be applied since the consequences of malware become exceedingly critical and entail large expenses.

Becoming a victim of a hacker’s attack sounds like something that happens only to other people or firms, and the reason for it is that only the largest cases make headlines. The actual number of breaches is a lot higher. With the help of VPNs and staying away from using public networks by business employers, the chance of getting attacked lowers down to zero.

In the case of connecting to public Wi-Fi while using a VPN for business, all data is encrypted and protected. When hackers try to use it for their villainous purposes, it is useless to them. They have access only to a VPN provider’s IP address, which won’t lead them to any of the user’s information.

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#2 Gaining Ability to Connect to the Corporate Network From Anywhere

Earlier, all the apps, software, and data of the company were in the office. With the development of web and cloud services, like Google Workplace, the need for data centers became outdated. This was because apps and data which used by workers can be stored in the cloud. Moreover, modern companies prefer a remote scheme of working with employees not in the office but working online. Team members who prefer working from the virtual office can connect to a network of their workplace from anywhere. That is, all around the globe.

Working on a project in a coffee shop, airport, café or any other public Wi-Fi is convenient and gains its popularity. Sadly, these Wi-Fi spots are extremely insecure. This is especially after threatening defects were found in WPA2 (Wi-Fi Protected Access II, a security program to protect wireless computer networks). This program is a standard encryption tool in many Wi-Fi networks. These program weaknesses make it possible for bad actors to track the activity of a person and his/her data opened while using public Wi-Fi.

For remote workers, this can result in very sensitive company information like passwords, financial documents, clients’ personal data being stolen. Consequently, this can lead to further fraud and other malicious activity.

VPN services enable workers to share files securely. The majority of VPNs have a function to control who can see the documents to make sure that the employees can only open files which they should.

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#3 Access to Blocked Resources and Services

Business travelers enjoy going from one country to another and work online. What needs to be done if online corporate resources that are necessary for work can not be accessed in some countries? For example, in China users can’t access certain websites only because the country has blocked some services. Solely a VPN for business can come into use in such a situation. After all, while staying in China, you can use Gmail, Facebook, Linkedin, and other sites that are banned there. VPN services work there and you can surf the Internet as though you are located in some more free country. For the ones who need it, this solution can be extremely important as when using a VPN you can get an ID of any place in the world and you don’t need to worry about censorship anymore.

Nonetheless, you must be familiar with your VPN provider’s privacy and logging policies. Some of the providers keep thorough logs and can give them to authorities in case they ask. The other VPN providers, who don’t collect such kind of information, can limit IT people from using the services. In any situation, it is mandatory to read privacy and logging policies and discuss them with IT people in your company to find the most suitable balance of the choice options.

Taken from: https://review.bukalapak.com

#4 Reduced Cybersecurity Costs

It takes a lot of money and time to establish the level of protection within a company as a VPN provides. Specialists who are able to customize the services also will be listed as additional expenses for a company. If you use a cloud VPN for business, the system will work automatically. The need to involve an additional administrator is minimized. So, if there was a choice between using a VPN in business or spending funds on expanding an IT department, what would be a better, cheaper choice?

A VPN for business is a very affordable option for companies, whose budget is limited. Normally, a monthly subscription for VPN services costs less than $10 per one account when purchased through a commercial licensing plan.

It is common that VPNs have a feature that allows five people to get access using one same record. The companies can save money when five staff members log into a single VPN account.

For such not high expenses, the company can get military-level encryption of data they share and protected authentication access. That can be a significant benefit for small and medium businesses.

Details

One more low-cost option is to install a good VPN router in the company’s office. This will provide secure Wi-Fi with a single VPN account. That opportunity is very advantageous for employees, who work in the office.

It is highly important that only one team uses a single VPN address. The personally assigned IP address can help to get the best level of protection and accessibility.

Free Wi-Fi options often display advertisements, their connection speeds are low as many people use the application simultaneously, and they have a very limited choice of servers. This can be an option for individuals who use a VPN rarely for personal needs, but it is definitely a poor choice for big companies using a VPN every day for business.

Learn business loan secrets and get money for your business.

#5 Increased Security for Customers

Many companies give Wi-Fi access to their customers. Hotels, restaurants, cafés, airports – the Internet is almost everywhere! Anyway, the larger the public network is, the more danger hides in it. If someone uses public Wi-Fi to check the news or see the weather forecast for the next day, that’s one thing. It is a lot different when the client of the organization decides to log into his account by entering a password. Or she uses her credit or debit card information to pay for some purchase online.

Some people want to relax in a café with public Wi-Fi and watch a fun movie from services like Popcorn time. This multi-platform is a free alternative to subscription-based services such as Netflix. The lawfulness of the application depends on the jurisdiction. That is why it is better for a watcher to use free VPN for Popcorn Time as its misuse can lead to serious legal problems.

If your company collects data from clients or patients, you can make a step to soften their worries with the help of using a VPN in your place. Many people may not be aware of what VPN calls for, but a little explanation can lead to great success. Wouldn’t you trust the company that does its best to take extra action to keep your data protected?

Enforcing a VPN for staff members working remotely is an accessible, clear, and efficient choice. Nevertheless, it works only when everyone is on the same page. You should make sure that all employees are on board and keep working according to the implemented VPN protocol. New members of a team need to be learn about it right away. And they need to work according to the set VPN standard of the corporation.

Conclusion

VPN is a modern, easy-to-use and affordable tool to increase the security of your company. And now you know 5 main reasons why every business should consider using VPN for data protection. Choose the VPN that meets your needs to the fullest extent. And stop worrying about business data being compromised and misused.

Kevin White is a talented writer and editor. He specializes in content related to digital marketing, SEO, SMM, eCommerce. He is involved in self-development and actively follows new technologies. You can contact him via GuestPostingNinja@gmail.com.

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What are the Details on Business Financing Options?

What are the Best Business Financing Options for Your Business?

When it comes to business lending, what are your best choices? What are the best business financing options? And what are the details?

Your best business financing options will depend on your business’s strengths. This is in three areas:

Cash flow
Collateral
Credit (personal or business)

In general, business financing options divide rather neatly into those three categories. Four, if you separate personal and business credit, which we’ll do here.

Business Financing Options with Good Cash Flow

Here’s a great selection of business financing options.

Fundbox

Fundbox will connect directly to your online accounting software. That’s all you need to do. You can get invoice financing or a line of credit. See fundbox.com.

Fundbox: Terms and Qualifying

Get a revolving line of credit for up to $150,000. Fundbox will auto debit your weekly payment from your bank account. You don’t need to show a minimum personal credit score, and you don’t need to show a minimum time in business.

Account Receivables Financing

You can use outstanding account receivables as collateral for financing. Receivables should be with the government or another business. If you also have purchase orders, you can get financing to have those filled. You won’t need to use your cash flow to do so. Get an accounts receivable credit line with rates of less than 1% with no consumer credit requirement. Receivables should be with the government or another business.

Account Receivables Financing: Terms and Qualifying

Use your outstanding account receivables for financing. Get as much as 80% of receivables advanced ongoing in less than 24 hours. Remainder of the accounts receivable are released once the invoice is paid in full. Factor rates as low as 1.33%. you can get an accounts receivable credit line with rates of less than 1% with no consumer credit requirement.

Purchase Order Financing

This is advanced to a business with a large purchase order or contract but cannot fulfill it. Lender then loans the funds necessary to complete the order and charges a percentage for the service. Then the company can fulfill its order or contract. The difference between purchase order and accounts receivable financing is:

Purchase order financing involves a company lending you money to fulfill purchase orders
Accounts receivable financing involves a company buying your outstanding invoices

Purchase Order Financing: Terms and Qualifying

Terms are for Credit Suite purchase order financing. For approval, lenders will typically review your outstanding purchase orders that need to be filled. If the purchase orders are valid and the suppliers you are dealing with are credible, you can be approved regardless of personal credit history. Rates typically range from 1-4%. In some instances, you can get 95% of your purchase order financed.

Cash Flow Financing

A loan made to a company is backed by a company’s expected cash flows. A company’s cash flow is the amount of cash that flows in and out of a business, in a specific period. Cash flow financing (or a cash flow loan) uses generated cash flow as a means to pay back the loan.

Cash Flow Financing: Terms and Qualifying

Often you will need to have a few years in business. You may need to meet a certain minimum credit score requirement. You will need to prove historical cash flow, and present your accounts receivables and accounts payables, so the lender can determine how much to loan to your business.

Merchant Lines of Credit

Merchant lines of credit are lines of credit offered by stores. These lines of credit can only be used exclusively at the store from which they are offered. One such example is Amazon, which offers lines of credit through Marcus by Goldman Sachs.

Merchant Lines of Credit: Terms and Qualifying

Terms vary. Eligibility can be based on cash flow (Amazon’s is). Such lines of credit may offer special financing terms during certain time periods, for certain products, or for a certain dollar amount spent at the store. In some cases, payment in full must be made after a specified period of time, like a promotional period.

Contrast with traditional credit cards and merchant credit cards which allow borrowers to continue carrying a revolving balance with interest. In exchange for a shorter repayment period, the borrower may be offered low or zero percent interest, or a discount off their purchase price.

Merchant Cash Advances

Businesses that accept credit cards as a form of payment may qualify for a merchant cash advance. This means your business must have a merchant account in order to be able to accept credit card payments. Your business must bring in $100,000 or more per year in credit card sales. Typical approval is equal to one month’s credit processing volume. The minimum credit score is 500.

Qualifying for a Merchant Cash Advance

They do not ask for a lot of documents. This is not like what most conventional lenders will want. You won’t need financials, business plans, or resumes. You don’t even need collateral.

Your business’s credit card receipts and business bank statements tell lenders all they need to know. These loans work well for businesses that qualify and need funds fast, and those with credit that is less than perfect. It’s a great way to get money for your business fast with few requirements.

Business Revenue Financing

It’s also called royalty-based financing. Business revenue financing is a way to raise capital from investors who get a percentage of the enterprise’s ongoing gross revenues, in exchange for money invested. In a revenue-based financing investment, investors get a regular share of business income until a predetermined amount is paid. Often, this predetermined amount is a multiple of the principal investment. It is usually between 3 – 5 times the original amount invested.

Business Revenue Financing: Terms and Qualifying

Since repayment of the loan is based on revenues, the time it takes to repay the loan will fluctuate. The faster revenue grows, the quicker you’ll repay the loan, and vice versa. The percentage of monthly revenues committed to repayment can be as high as 10%. Monthly payments will fluctuate with revenue highs and lows and will continue until you’ve paid back the loan in full.

Business Financing Options with Collateral

Collateral opens up a ton of financing choices; this is just a handful of what’s out there.

401(k) Financing

If you have an eligible 401(k), you can use those funds to get money for your business. You must not be currently contributing. You must not longer be working for the company that the 401(k) is under. And you must have a balance of at least $35,000.

You can even still earn interest on your account, and there are no tax penalties. Personal credit doesn’t really matter much. Interest rates are usually low.

401(k) Financing Details

In fact, they are often less than 5%. Close and fund in less than 3 weeks. Can usually get up to 100% of what’s “rollable” within your 401(k). This type of loan works well for anyone that has an eligible 401(k) account.

IRA Financing

Similar to 401(k) financing. In as little as 3 weeks you can invest a portion of your retirement funds into your business. This gives you more control over the performance of your retirement plan assets. And it gives you the working capital you need for business growth.

IRA Financing: Terms and Qualifying

In general, you will work with a CPA. They will help you roll over a non-contributing and qualifying account. This allows for cash out of half, or $50,000, whichever is lower. If applicable, the CPA you work with will structure a self-directing IRA for the remaining funds.

Stocks Financing

Some lenders will make loans using securities as collateral. Securities-based lending provides ready access to capital. This can be used for almost any purpose, such as buying real estate or investing in a business. The only restrictions to this kind of lending are other securities-based transactions like buying shares or repaying a margin loan.

Stocks Financing: Terms and Qualifying

You continue to earn interest on stocks pledged as collateral. Closing and funding takes less than 3 weeks. Rates can be as low as 1.6%. You will have challenged personal credit.

Bonds Financing

Securities-based lending for bonds is offered through large financial institutions and private banks. People tend to seek out these kinds of loans, if they want to make a large business acquisition, or if they want to execute large transactions like real estate purchases.

Lenders determine the value of the loan based on the borrower’s investment portfolio. In some cases, the issuer of the loan may determine eligibility based on the underlying asset. It can end up approving a loan based on a portfolio of US Treasury notes rather than stocks.

Bonds Financing: Terms and Qualifying

Most investment-grade corporate, treasury, municipal, and government agency bonds are accepted. You keep all the interest and appreciation from your securities. To qualify all the lender will require is a copy of your two most recent securities statements. If your stocks or bonds have a value over $25,000, you can be approved, even with severely challenged personal credit.

Demolish your funding problems with 27 killer ways to get cash for your business.

Kickfurther

Finance your next inventory purchase with financing from customers and brand supporters and fundraise directly to them. Customers buy through what’s called a Consignment Opportunity. Your customers own the products they helped fund until they are sold by the brand. As soon as the products sell, the customer earns payments. Kickfurther also offers an online store for businesses to market and sell their products. See kickfurther .com.

Kickfurther: Terms and Qualifying

Get funding for up to $2 million in inventory. Payback terms will vary. At the end of each sales period, submit sales reports and provide payment for inventory sold. You are required to provide a monthly accounting of current inventory levels.

Inventory Financing

Inventory financing is a revolving line of credit or a short-term loan acquired by a company so it can purchase products for sale later. The products serve as the collateral for the loan. There may be restrictions on the type of inventory you can use. This can include not allowing cannabis, alcohol, firearms, etc., or perishable goods. There can be revenue requirements. And there may also be minimum FICO score requirements.

Inventory Financing: Terms and Qualifying

Get approved for a line of credit for 50% of inventory value, regardless of personal credit quality. Rates are usually 5 – 15% depending on type of inventory. Get funding within 3 weeks or less. It can’t be lumped together inventory, like office equipment.

Equipment Financing

Equipment financing is when you use a loan or lease to purchase or borrow hard assets for your business. It is a business financing option you can use to buy any physical asset. Physical assets can include items such as a restaurant oven or a company car. You will predictable amounts every month. You can build business credit on a program such as this.

Equipment Financing: Terms and Qualifying

All terms are for equipment financing through Credit Suite. Companies must have at least one year in business. You can get approved even with challenged credit. You won’t need financials to secure equipment financing. Approvals take as little as 24 hours.

Equipment Leasing

You can also lease equipment, rather than buy it outright. And you will often put down less money than you would if you were buying the piece of equipment. You may be able to negotiate flexible terms with an equipment lease. It’s easy to upgrade equipment after your lease ends. This is helpful if your equipment is something like a computer which quickly becomes obsolete.

Equipment Leasing: Terms and Qualifying

All terms are for equipment leasing through Credit Suite. You can be approved for equipment financing and leasing with as low as a 640 personal credit score. To get approved lenders will request details on the equipment you are getting. After a quick credit review, you can be approved for as much as $10,000,000 in equipment financing.

Business Financing Options with Good Personal Credit

Credit Line Hybrid

A credit line hybrid is a form of unsecured funding. Our credit line hybrid has an even better interest rate than a secured loan. Get some of the highest loan amounts and credit lines for businesses. Get 0% business credit cards with stated income. These report to business CRAs. You can build business credit at the same time. This will get you access to even more cash with no personal guarantee.

Credit Line Hybrid: Terms and Qualifying

You need a good credit score or a guarantor with good credit to get an approval (a FICO score of at least 680). No financials required. You can often get a loan of five times the amount of current highest revolving credit limit account. This is up to $150,000.

Bridge Loans

A bridge loan is a short-term loan used until a person or company secures permanent financing or removes an existing obligation. It allows the user to meet current obligations by providing immediate cash flow. Bridge loans are short term, up to one year. They have relatively high interest rates. And they are often backed by some form of collateral, like real estate or inventory.

Bridge Loans via Our Credit Line Hybrid

The Credit Suite Credit Line Hybrid has a term loan program. This bridge loan works as either an add-on to, or in lieu of, the program, when the applicant meets eligibility and is agreeable to either a portion (or all) of their funding, supplied in the form of cash term loans. There is a fixed monthly repayment.

Bridge Loans: Terms and Qualifying

The Credit Suite program is an aggregate program requiring multiple accounts to meet our prequalification. Get $25,000 to $300,000 per applicant. The APR is 7 – 24% depending on creditworthiness and selected term. Terms are 3, 5, or 7 years. You must have a 680 FICO or better, and over $35,000 in adjusted gross income. Actual pre-qualification will depend on Debt-to-Income ratio.

Computer Leases

Just like furniture, you can lease computer equipment. You can take advantage of tax incentives and use your cash flow to its fullest advantage. This includes:

File Servers and Backup Storage
Hardware and Mainframes
Laptops
Printers and Scanners

Computer Leases: Terms and Qualifying

Terms can include leasing to ownership. Often, leasing provides businesses with a full deduction of lease payments against current earnings. A large part of approval is based on the personal credit and background of the owners, not on trade or banking information that startups in particular don’t have yet. Lease up to $5,000 to $250,000 and more in computer equipment value. Lease terms range from 24 months to 60 months. See harrisleasing.com/computer-equipment-leasing.

Auto Financing

Whether a vehicle is purchased new or used will affect the number of years you can finance the vehicle and the rates you will pay. If a vehicle is used, then the number of miles on it will also affect terms. Plus, business owners may be required to personally guarantee vehicle loans. If you are a co-borrower the loan will most likely report to your personal credit report. Some loans have a prepayment penalty and charge you for paying ahead.

In general, the following will eliminate the need to provide a personal guarantee for this type of financing:

good business credit
a decent amount of time in business or
good personal credit

Much like with any other kind of business borrowing, the more assurances you can give the lender, the better.

Auto Financing: Terms and Qualifying

You need to establish:

the amount of money you have for a down payment
the vehicle you need, and
the costs associated with buying the vehicle

Provide documentation that proves you are the owner of a business, like:

business licenses
partnership agreements, and
LLC documents
articles of incorporation (if applicable), listing you as having at least a 20% stake in the business

You may also have to provide personal documentation like personal credit score and credit history. If you are a sole proprietor and the business is under your Social Security number, you are the borrower and guarantor. Hence you are personally liable for repaying the loan. It is also a good idea to have a loan proposal. A loan proposal should detail your business, loan needs, and financial statements.

Demolish your funding problems with 27 killer ways to get cash for your business.

Business Financing Options with Good Business Credit

Building business credit will open up even more opportunities for funding. Check out the details.

Vendor Credit

Starter vendors are open to working with most businesses, even startup ventures. Make sure vendors report to the CRAs – not all do. Vendors report to the business CRAs within 60 days. They help you build your business credit profile and score.

Vendor Credit: Terms and Qualifying

Terms will vary depending on the vendor, but they tend to be Net 30. And you will not need collateral, good personal credit, or cash flow.

Retail Credit

Retail credit comes from major retailers. Buy everything from office supplies to power tools. Retailers will check whether your business information is uniform everywhere. They will also check whether your business is properly licensed.

Retail Credit: Terms and Qualifying

Qualifications will vary, and there can be a minimum time in business requirement. There may even be a minimum number of employees requirement, or a minimum annual sales requirement. Terms can be revolving. You will need at least 3 (5 is better) accounts reporting to the business CRAs.

Fleet Credit

Fleet credit is used to buy fuel, maintain vehicles of all sorts, and repair vehicles. Even businesses which don’t have big fleets can still benefit. These are usually gas credit cards.

Fleet Credit: Terms and Qualifying

Requirements will vary. There may be a minimal time in business requirement. If your business doesn’t make the time in business requirement, you may be able to, instead offer a personal guarantee or give a deposit to secure the credit.

Bank Credit Cards

Bank credit cards are cards like MasterCard. So they can be used pretty much anywhere. These cards may even have rewards programs.

Bank Credit Cards: Terms and Qualifying

Terms can be revolving. Usually, you will need to have at least 14 accounts reporting to the business CRAs. There can be longer time in business requirements. And there may also be minimum number of employee requirements.

Business Financing Options for a Combination of Collateral, Cash Flow, Good Personal Credit, and Good Business Credit

The Small Business Administration wants to see the full package.

SBA Loans

Guaranteed by the federal government. Issued by participating lenders, usually banks. They offer a lot of the perks of traditional loans, such as lower interest rates and favorable terms. Due to government guarantee, lenders are able to offer them to those with a lower credit score than would typically be required.

Eligibility for SBA Loans

Lenders and loan programs have unique eligibility requirements. In general, eligibility is based on what a business does to receive its income, the character of its ownership, and where the business operates. Hence even those with bad credit may qualify for startup funding.

Normally, businesses must meet size standards, be able to repay, and have a sound business purpose. The lender will provide you with a full list of eligibility requirements for your loan. See www.sba.gov/document/support–table-size-standards.

Ideal credit scores for an SBA loan are 680 or above. There are a number of SBA loan programs, each one designed to work for different needs and situations. Find out more at SBA.gov.

Demolish your funding problems with 27 killer ways to get cash for your business.

Term Loans

Banks are often the first place we think of when we thinking of financing. But big banks only sign off on about 25% of the small business loan applications that come their way. Term loans often have lower interest rates than many other funding options. They also tend to be for higher loan amounts.

For term loans, you generally need all four strengths.

Term Loans: Terms and Qualifying

Generally speaking, the companies banks end up funding have very strong financials and near-perfect credit scores. You will most likely have to undergo a personal credit check. These kinds of loans may require collateral.

Business Financing Options if You Sell Part of Your Business

Angel Investing

Angel investors invest in small startups or entrepreneurs. Often, angel investors are among an entrepreneur’s family and friends. The capital they provide may be a one-time investment to help the business get started, or an ongoing injection of money to support and carry the company through its early stages.

Angels are not covered by the Securities Exchange Commission’s (SEC) standards for accredited investors. Angels could be friends or colleagues sitting on home equity, or local professionals who are looking to invest. Consider people you know well and people you don’t know so well. But keep in mind, you’re giving up part of your ownership in your business.

Angel Investing: Terms and Qualifying

Angels are informal investors so there really aren’t any terms. Technically, there is nothing done for qualifying, although investors may (probably should) insist on a valuation of your business. No matter what, it’s always a good practice to get everything in writing.

Venture Capital

Venture capitalists give money to help build new startups, if the VCs believe a company has both high-growth and high-risk potential. These tend to be fast-growth companies with an exit strategy already in place. Venture capitalists often look to recover their investment within a 3-5 year time frame.

VCs will also, often, want to own a large piece of a company if not a controlling stake. They want game-changing businesses, so straightforward businesses won’t be on their radar unless it’s shifting the paradigm. Like with angel investors, you are giving up a part of your ownership in your business. VCs often want a larger share of your business than angel investors do.

Venture Capital: Terms and Qualifying

Because venture capitalists are more formal investors than angels, a valuation of your business is probably going to necessary. Specific terms will be spelled out in your agreement with them. The Securities and Exchange Commission will also have requirements. It is best practices to consult with a lawyer well-versed in business law before you sign anything.

Business Financing Options if You Have None of the Above

Reward-Based Crowdfunding

You can get money from the crowd for your business. Start with a service like Kickstarter. But make sure you read the fine print (always a good idea!). Many crowdfunding platforms make you give all the funding back if you do not make your goal by the end of the campaign. But Indiegogo has a flexible funding option.

Crowdfunding platforms will take a percentage of the donations. That’s how they make their money. Crowdfunding platforms may push to have you deliver on your promises. So you’ll have to actually manufacture a product or do whatever else your business is supposed to be doing. Given how much social media we’re all bombarded with these days, it should come as no surprise that donors can become weary of crowdfunding pitches.

Reward-Based Crowdfunding Details

Crowdfunding tends to work best when donors can personally connect with a product or service. Straightforward businesses may not do so well. The kinds of businesses which do the best often associate with products not quite on the shelves yet, or artistic endeavors.

Standard widgets will most likely not attract brand ambassadors. They probably won’t get donors too fired up. Because crowdfunding campaigns are time-consuming, it doesn’t make sense to try this form of funding unless you realistically feel your chance of success is better than 50%.

Reward-Based Crowdfunding: Terms and Qualifying

Terms will differ depending on which platform you use. Check and make sure your platform of choice will allow your industry to work with them. For example, even though recreational cannabis use is legal in Massachusetts, Kickstarter (for example) doesn’t allow fundraising for drugs, nicotine, tobacco, vaporizers, and related paraphernalia. Any major crowdfunding platform has a section for rules, a FAQ, or ‘how it works’. Be sure to read such a section thoroughly so you know exactly what you’re getting yourself into.

Equity Crowdfunding

The first thing to know is that equity crowdfunding is a stock offering from a company that does not have a stock exchange listing. Equity crowdfunding has been around for less than 10 years. It’s not the same as rewards-based (which comes from places like Kickstarter). Potential investors visit a funding portal website. There, they can explore different equity crowdfunding investment opportunities. Note: there are limits on how much capital an individual can invest based on their income and net worth. Equity crowdfunding gives investors a stake in your business.

Equity Crowdfunding: Terms and Qualifying

Keep in mind that equity crowdfunding tends to be covered by the Securities Act of 1933, Regulation Crowdfunding (17 CFR Part 227), Regulation D Rule 506 (17 CFR § 230.506), and Regulation A+ (17 CFR § 227.100). See: law.cornell.edu/cfr/text/17/227.100.

Federal law can be complex. It is best practices to consult with an attorney well-versed in federal law, specifically, securities and corporations, when it comes to interpreting terms and qualifications (and any changes that may be made to these aspects of the law in the future).

Grants

Federal, local, city, and state grants generally do not have to be paid back. For urban projects, try HUD (Housing and Urban Development). For rural projects, try the USDA (Department of Agriculture). Federal funding means paperwork. You often must show experience in what you are proposing. See grants.gov. and grantwatch.com.

Also try city and state websites. These are often less restrictive than federal grants. It helps if you can show you will help the community. Try to partner with a local business.

Grants: Terms and Qualifying

Grants have varying qualifications. They are very competitive. Be sure to check information thoroughly. This includes due dates and any necessary paperwork. Some grants may offer preferences to businesses with minority, female, veteran, or disabled ownership.

Microloans

Microloans are business loans with relatively low interest rates. Generally, these loans are on offer to small or developing businesses with modest capital requirements and little to no revenue history. Microloans — as the name suggests — are smaller loans than a traditional bank loan. They generally offer anywhere from $500 to $50,000 in business financing.

Microloans: Terms and Qualifying

Terms and requirements vary among providers. Kiva, for example, charges 0% interest. The Opportunity Fund provides loans to low- and moderate-income immigrants, women, and other underserved small business owners. Accion requires a cosigner. Check the specific requirements of any microloan program that interests you.

So How Do You Choose?

This is an enormous buffet of business funding choices! But how do you select the one(s) that’s best for your particular situation? This is where our Advisory Team comes in extremely handy. Or help yourself with our Business Credit Builder. It’s your choice. But it all starts with business credit.

The post What are the Details on Business Financing Options? appeared first on Credit Suite.

How to Use Public Stocks as Business Loan Collateral – and Why You Want to

What You Need To Know About Bank Loans

Seeking the best sources of funding for your business can feel complex and overwhelming. Most young entrepreneurs today feel like bootstrapping their business feels safer and perfect for their needs.

Unfortunately, most start-up businesses cannot thrive without adequate funding. Since few businesses start with a generous budget, you must seek alternative sources. Loans, sponsorships, partnerships, angel funding, co-investors, and grants are some of the options known to many.

Most of these options require collateral of some sort. Collateral is an asset that you can use to secure a personal or a business loan. In layman’s speak, it’s a promise that you can still cover your loan when you cannot make the payments.

Collaterals can be seized and resold to cover the remainder of the loan. For business loans, assets like business equipment, vehicles, buildings, and inventory can be used as business loan collateral. You can even use accounts receivables to pay off the loan if necessary.

Like any other lenders, banks put a lien on the asset pledged as collateral for the loan. If the borrower falls on hard times and cannot keep up with the payments, the lender has the right to seize the collateral. It is a guarantee that the lender still gets paid no matter what. By pledging collateral, a business owner shows that they are not a high-risk borrower. It leads to reduced interest rates and a more reasonably affordable loan plan.

Alternatives

Today, most business loans and credit lines do not come from conventional banks. There are alternative lenders and investors like Credit Suite who can help you with the steps needed to secure a business loan.

We have a wide array of legitimate funding solutions, each with its own different and unique terms that can match your credit profile. Credit Suite’s business loan programs manage the rates and requirements to help increase your chance of getting approved.

High-value collateral often gets matched with a higher loan value which can be beneficial for the lender. It is logical for business owners to choose a loan option that reflects their capacity to pay. However, not many are aware that they can use less popular options as business loan collateral instead of their properties.

The good news? If you own a public stock, you may use that as collateral to secure a business loan. This article explores how public stocks can be your collateral and what makes them such a good option.

Why Use Public Stocks As Business Loan Collateral?

Public stocks are liquid assets which makes them an acceptable form of collateral. Everyone in the industry knows that these stocks have passed compliance standards. Hence they guarantee against the unlikely event of a default. It is natural for any individual to feel a degree of protectionism on what they hold dear. It includes real estate, properties they own like vehicles or artwork, and it extends to stocks. However, in the unfortunate event of a seizure, public stocks affect you differently.

You can still operate your business, protect your image, and operate as usual. Treat your public stocks as one of the assets that can help your business continuity process. It is a lifeline that can save you when you cannot make payments without sacrificing the assets that help your business move (i.e., laptop, vehicles, house, etc.).

Overall, what matters is that you are protected from your liability against future payments—the benefit trumps, especially when the need for funding is huge. Most people are unaware that you can use public stocks as such and so the next section will guide you on how to use them so that you can feel more confident in deciding that this is the best option for you to take.

Demolish your funding problems with 27 killer ways to get cash for your business.

5 Tips In Using Public Stocks As Collateral To Secure Business Loans

Track your assets’ worth.

Lenders will assess your company’s history, business credit, balance sheet, and equity contributions. When you pass the audit, that’s the time when you submit your collateral for review.

Defaulting on a loan has dire consequences for your business and personal life. It would help if you took a realistic stance when you track your assets. Specifically, your public stocks require an exhaustive review. Consider asking for professional help to help you see how your stocks fare.

Feel more confident in your investment decisions by staying up to date on research-based information, current trends, and market analysis. When it comes to your business and money, a serious reputation is important. You can rely on professional advice from experts like Charlie Shrem, Matt McCall, David Stein, and Josh Bannerman to navigate key investing issues.

Negotiate if you can.

A good credit rating increases your loan approval. Using public stocks as collateral, how your stocks perform, your investment history, and your level of stock ownership can all influence your loan-to-value ratio. Look for wiggle rooms in terms of restructuring, repayment, frequency, and scheduling. These are basic areas you can cover in negotiating.

Ask for lower interest rates.

Public stocks can help you get lower interest rates because the collateral is being held. It is because of the reduced risk associated with public stocks. This reduction makes lenders more comfortable because there is little chance of default. Depending on your stock’s value and performance, lower interest rates may be warranted. It does not hurt to ask for an interest reconsideration.

Demolish your funding problems with 27 killer ways to get cash for your business.

Ask for greater repayment flexibility.

This country is built on its fair and reasonable business practices. It extends to flexible loan repayment options. Additionally, it is beneficial to both parties as this essentially guarantees loan payment and profit based on interest.

There are common repayment flexibility schemes in the market to minimize the chances of default. These are accelerated repayment which leads to loan recalculation, step-up loans where the value matches a borrower’s growth potential, and balloon repayment scheme where the loan amount is paid in the last installment.

High-performing stocks can be your leverage for greater repayment flexibility. In the event of trouble making payments, you may adjust the rates or payments depending on your lender’s programs and assistance.

Consider alternative lenders.

Sometimes, conventional banks are not the right fit for your business. Other start-ups claim that alternative lenders can offer funding that aligns with their goals, structure, and profitability. At Credit Suite, our contemporarily diverse strategies can help your business secure the funding you need. Our client’s testimonials prove how effective we are in our role.

Demolish your funding problems with 27 killer ways to get cash for your business.

Understanding The Risks

There are no personal guarantees when you use public stocks as collateral. How your public stocks perform on the market will vary for sure. If the borrower defaults, the lender can seize and sell the business loan collateral. However, if the collateral sells for less than the debt value, the lender cannot seek that deficiency balance from the borrower.

Therefore, public stock collateral is considered as nonrecourse debt. Due to the risks, lenders generally allow only 50% to 60% loan-to-value ratios. Typically, lenders underwrite these collaterals with more care compared to full recourse loans.

Depending on the kind of loan and the value you are applying for, public stocks as collateral are primarily attractive only when you own significant ownership in the company’s stock. Owning penny stocks or junk bonds will only matter if the value is high, but until it does, you have a better chance of securing your business loans with stocks that have high market value.

When we talk of public stocks, the image and quality of the company also matter. It communicates stability which helps secure the loan. The lender communicates with a broker who tracks the daily value of the stocks.

What if the Value of the Stock Decreases?

Should the value decrease, the lender may require more money (or additional collateral). Before you decide to submit your stock portfolio as business loan collateral, ask yourself whether this is a risk you are willing to take.

Remember when Apple stocks went down? Everybody seems to know when this happened, and for good reasons. All eyes watch when the big players lose. When we talk about stocks used as collateral, only significant stocks are considered. At the most basic, this can mean market value, the number of stocks, and degree of ownership.

When your stock’s market value drops, your collateral’s value might go down as well. Though this does not immediately mean that you need to submit more collateral, there’s a line drawn to secure your lender’s threshold. If the market drops far enough, there is a risk that you may owe more than the original amount.

Some Friendly Reminders

Most business owners who want to push forward understand these risks. Your chances of completing loan payments are significantly increased when coupled with confidence in their product or service, along with sensible market research.

Out-of-the-box thinking pays off in business. Look for additional income streams that you can integrate into your business. At Credit Suite, our Partner Program offers you a unique way to boost your sales and exceed your targets.

… And

Whatever kind of service or product you sell, you can point your customers to our program to complete the sale. We also provide you with all the training and information you need when you become our partner. It’s a win-win situation for the both of us.

Janine Ikan is a teacher, mental health advocate, and freelance writer for The Stock Dork. She has written on psychology, digital marketing, sustainability, and new age spirituality. Her passions include arts, culture, travel, food, social sciences, and community development. She lives in the Philippines with her husband, their energetic toddler, and six cats.

The post How to Use Public Stocks as Business Loan Collateral – and Why You Want to appeared first on Credit Suite.