Tag: Business

Get to Know Your Experian Business Credit Report

Do You Want to Learn About Your Experian Business Credit Report?

This is a good time to learn about your Experian business credit report.

But first we should start with some definitions and background on business credit.

Business Credit

This is credit in the name of a business. It is not tied to the creditworthiness of its owner or owners. Rather, business credit scores will depend on how well a company can pay its bills. Hence consumer and business credit scores can vary dramatically.

Business Credit Benefits

There are no demands for a personal guarantee. You can quickly get business credit regardless of personal credit quality. And there is no personal credit reporting of business accounts. Business credit use won’t affect your consumer FICO score. Plus the business owner won’t be personally liable for the debt the business incurs.

Business Credit Details

Being accepted for business credit is not automatic. Building business credit requires some work. Some of the steps are intuitive, and some of them are not.

Fundability

Fundability is the current ability of our business to get funding. Some factors are within your control. Others (like your time in business) are not. Your online presence and data are one area which is at or close to 100% with your control.

The better your business credit and fundability are, the more likely you will get approval for business financing.

Build Fundability on Business Credit Applications to Avoid Denials

Keep your business looking fundable (legit) with:

  • A professional website and email address
  • A toll-free phone number
  • List your phone number with 411
  • A business address (not a PO box or a UPS box)
  • Get all necessary licenses for running your business

Online Fundability

There are some aspects of fundability where you should pay particular attention to what is online. Such as:

  • Business owners listed and listed ownership uniform
  • Business name and address uniform
  • Industry aligned
  • Company domain
  • Data uniform on all records

Business Ownership Listings

Records consistency matters here. Your website should show who owns your business. And that info must be consistent. So if the owner is named Susan Johnson on your website’s About page, then she should not be listed as Sue Johnson on your Contact page. If your business ownership changes, you need to show that here.

Business Name and Address Uniformity

Abbreviations can be your downfall here, as can punctuation like hyphens, commas, and colons. Maybe your Contact page says your main office is on Main Street. Then your About page should not say it is on Main St.

If your business moves, or you add subsidiaries and other locations, then you need to update that info everywhere. This even means whether you use your 5-digit ZIP code, or a ZIP plus 4 code (9 digits).

Fundability: Industry Alignment

If your business is over the road trucking, then it needs to be listed that way. Pro tip: when your industry can be called several different names, mention those other phrases on your site.

Your Business Email and Website: Company Domain

When your company domain matches your business name, it helps with fundability. Pro tip: try to match what people are searching for online. So if the word ‘brothers’ is in your company name, then determine if ‘brothers’ or ‘bros’ is used by people searching for your company online.

Keep your business protected with our professional business credit monitoring.

There are Three Different Credit Bureaus – But What Makes Your Experian Business Credit Report Special?

What distinguishes an Experian business credit report from reports through the two other big credit bureaus? And can you use that data to your advantage?

There are three major credit bureaus for business: Dun & Bradstreet, Experian, and Equifax. FICO SBSS and CreditSafe are also players.

In the business world Equifax and Experian are up there. But it is Dun & Bradstreet which is the major player.

Dun and Bradstreet has more than 10 times the records of the next closest reporting agency. See dnb.com/about-us/company.html. It makes sense to start with Dun and Bradstreet even when going over your Experian business credit report. This is because you must start the business credit building process with them anyway.

Dun & Bradstreet

Go to the Dun and Bradstreet website and look for your business, at dnb.com/duns-number. But just what happens if you are unable to find it? Then get a free D-U-N-S number. You will always need a D-U-N-S number to start building business credit. Go here to get a D-U-N-S number: dnb.com/duns-number/get-a-duns.html.

A D-U-N-S number is how Dun and Bradstreet gets your company into their system. And a D-U-N-S number plus 3 payment experiences leads to a PAYDEX score. A payment experience is a record of a purchase from a business which reports to a credit reporting agency. In this case, Dun and Bradstreet. Once your business is in Dun and Bradstreet’s system, search Equifax and Experian’s sites for your business. You can do so at creditsuite.com/reports.

Your Experian Business Credit Report

Business credit is in a business’s name. And it depends on how well a company can pay its bills. But Experian uses both consumer and business credit data to gauge risk.

They have found that blended data and reports work a lot better for them. For troubled businesses, blended scores dropped an average of 30% over the four quarters leading up to a bad event. The owner’s consumer scores showed no statistically significant decline during the same period.

53% of the time, the first signs of credit problems were on the business credit reports. 46% of the time, the first signs of credit problems were on the owner’s personal report. Blended scores outperformed consumer or business alone by 10 – 20%.

Per Experian:

“By combining personal and commercial credit information in one report, Experian provides a complete picture of the creditworthiness of small businesses”

You Must Get Set Up with Experian

Get a BIN (Business Identification Number) from Experian. Experian’s BizSource assigns a BIN.

How Long Data Stays on Your Reports at the Different Credit Bureaus

Per Experian Business, bankruptcies stay for 7 to 10 years. Chapter 13 bankruptcy rolls off your credit report 7 years from the filing date. While Chapter 7 bankruptcy stays for 10 years from the filing date. Trade data stays on for 36 months. Judgments, collections, and tax liens stay on for 6 years and 9 months. UCC filings stay on for 5 years. See experian.com/small-business/how-long-credit-report. There are similar time frames for the two other big business credit bureaus.

Keep your business protected with our professional business credit monitoring.

Your Experian Business Credit Report: The Particulars

We’ll look at a Typical Experian Business Credit Advantage SM Report. Experian provides a sample report where you can get an idea of what to expect. Experian changes its reports at times. So the best, most accurate and up to date source for this info is the Experian website. Find it online at https://sbcr.experian.com/pdp.aspx?pg=Sample-BCAI&hdr=report.

Business Background Information

The first part of a report has:

  • Name
  • Address
  • Main phone number
  • Experian BIN
  • Annual sales
  • Business type (corporation, etc.)
  • Date Experian file established
  • Years in business
  • Total number of employees
  • Incorporation date and state

Experian Business Credit Score

Business Credit Scores range from 1 to 100. Higher scores mean lower risk. This score predicts the chance of serious credit delinquencies within the next 12 months. This score uses tradeline and collections info, public filings as well as other variables to predict future risk. This part of the report has a graph to show the score.

Key Score Factors:

  • Number of commercial accounts with terms other than Net 1-30 days
  • The number of commercial accounts that are not current
  • Number of commercial accounts with high utilization
  • Length of time on Experian’s file

Experian Financial Stability Risk Rating

Financial Stability Risk Ratings range from 1 to 5. Lower ratings indicate lower risk. A Financial Stability Risk Rating of 1 indicates a 0.55% potential risk of severe financial distress. So this is within the next 12 months.

Experian puts all businesses in one of five risk segments. This rating predicts the chance of payment default and/or bankruptcy, in the next 12 months. This rating uses tradeline and collections data. It also uses public filings and other variables to predict future risk.

Key Rating Factors:

  • Number of active commercial accounts
  • Risk associated with the business type
  • Risk associated with the company’s industry sector
  • Employee size of business

Credit Summary

This part has several counts of various data points. For the most part, the details are further within the report.

The data outlined shows:

  • Current Days Beyond Terms (DBT)
  • Predicted DBT for a particular date
  • Average industry DBT
  • Payment Trend Indicator (stable, or not)

This part also shows:

  • Lowest 6 month balance
  • Highest 6 month balance
  • Current total account balance
  • Highest credit amount extended
  • Median credit amount extended
  • Number of payment tradelines
  • Also, how many lender consortium experiences
  • Number of business inquiries
  • Number of UCC Filings

More on the Credit Summary

This part also has:

  • Number of Banking/Insurance/Leasing
  • A percentage of businesses scoring worse than the company in the report
  • Number of bankruptcies
  • How many liens
  • Also the number of judgments filed
  • Number of accounts in collections
  • Company background

Company background has info on founding date, and where the company’s headquarters are. Plus there’s a basic background of what the business does.

Payment Trend Summary

This part starts with two graphs. They show the company in question versus its industry on Monthly payment trends and Quarterly payment trends.

These are percentages of on-time payments by month and quarter, respectively.

This part then shows tables with recent payment info by month and quarter. Then there are three more graphs:

  • Continuous Payment Trends: continuous distribution with DBT (days beyond terms)
  • Newly Reported Payment Trends: newly reported distribution with DBT
  • Combined Payment Trends: combined distribution with DBT

Trade Payment Information

This next part shows details on payment experiences (financial trades). There is also data on lender consortium experiences (financial exchange trades):

  • Tradeline experiences (continuous trades)
  • Aged trades
  • Payment trend detail
  • There is also a link to send any missing payment experiences

Keep your business protected with our professional business credit monitoring.

Inquiries, Collection Filings, and Collections Summary

The Inquiries part shows the industry making the inquiry and a total made during a given month. The Collection Filings sector has the date, name of the agency, and status (open or closed). If a collection is closed, the Collection Filing sector also shows the closing date. The Collections Summary shows: status, number of collections, dollar amount in dispute, and amount collected (even if $0).

Commercial Banking, Insurance, Leasing

For leasing, this part shows:

  • Leasing institution name and address
  • Product type
  • Lease start date and term
  • Original and remaining balances
  • The scheduled amount due
  • Also the number of payments per year
  • The number of payments which are current, late, or overdue

Judgement Filings

This part shows:

  • Date and plaintiff
  • Filing location
  • Legal type and action
  • Document number
  • Liability amount

This part shows cases where the company in the report is plaintiff or defendant.

Tax Lien Filings

This part has:

  • Date and owner
  • Filing location
  • Legal type and action
  • Document number
  • Liability amount
  • Description

UCC Filings

This part has:

  • Date
  • Filing number
  • Jurisdiction
  • Secured party
  • Activity (filed, or not)

UCC Filings Summary

This part shows:

  • Filing period
  • Number of cautionary filings
  • Total filed
  • Also the total released
  • Total continued
  • Amended/Assigned

Cautionary UCC Filings have one or more of the following collateral:

  • Accounts
  • Accounts receivable
  • Contracts
  • Hereafter acquired property
  • Leases
  • Notes receivable, or
  • Proceeds

Score Improvement Tips

Experian offers suggestions on how to improve your reports. Such as:

  • Get net-30 terms, if possible, from existing and future tradeline suppliers
  • Pay accounts on time or work with the tradeline supplier on a payment plan so a business is not delinquent
  • Lower credit utilization
  • Make sure all the data in the report is correct

Disputing Issues with Your Experian Business Credit Report

None of the different business bureaus will change your scores without proof. They are starting to accept more and more online disputes. But include proofs of payment with it. These are documents like receipts and cancelled checks.

Fixing credit report errors also means you specifically spell out any charges you challenge. Make your dispute as crystal clear as possible. If you need to snail mail anything in, use certified mail. This is so that you have proof that you sent in your dispute. With all the different credit bureaus, be specific about the concerns with your report.

You can correct Experian issues at: experian.com/small-business/business-credit-information.

Monitoring Experian Credit Scores and Reports

The costs of monitoring at all three big business credit reporting agencies can add up fast. At Experian, your best (least expensive) bet would be a Business Credit Advantage. Subscription Plan. It currently costs $189 per year. See sbcr.experian.com/pdp.aspx?pg=Sample&link.

Monitor Business Credit at D&B, Experian, and Equifax for Less

All of Experian’s reports are expensive! But did you know that you can get business credit monitoring for all 3 of the big business CRAs. And all in one place – for less? Credit Suite offers monitoring through its Business Finance Suite (through Nav). See what credit issuers and lenders see. So you can directly improve your scores and get the business credit and funding you need. See suitelogin.com and creditsuite.com/monitoring.

Your Experian Business Credit Report: Takeaways

So Experian has revamped their reports dramatically. They no longer use the term ‘Intelliscore’. This major business credit reporting agency is committed to correct data, and to helping companies improve their reports. To monitor Experian, Equifax, and Dun and Bradstreet for a lot less, monitor through Credit Suite!

The post Get to Know Your Experian Business Credit Report appeared first on Credit Suite.

Can the Best Hard Money Lenders Make this Form of Business Funding Worthwhile?

What are the Best Hard Money Lenders, and is Hard Money Lending Worth It?

Even the best hard money lenders can be problematic. Read on to find out more.

Hard Money Lenders and Hard Money Funding

If you’re looking to flip houses, you may have heard these terms. But what is hard money funding, and can it work for you?

Hard Money Funding: What Is It?

Hard money loans are asset-based loans that can fund any real estate investment. These loans are based on the property value. There is no need for background checks or credit scores. Some lenders even offer hard money loans based on the after-repair value of a building. Hard money lenders make finance house flipping with their asset-based loans.

Hard Money Funding: Positives

Since it’s based on the real estate value (before or after repair), a borrower with poor credit can get these loans. Hard money loans are fast, sometimes even within 24 hours of application.

Hard Money Funding: Negatives

Interest rates can be very high, as in three times that of banks. Terms can be very short, as in 6 – 18 months, versus a standard 30-year mortgage.

Plus a hard money lender wants you to have some skin in the game, typically at least 10% of your own money. That way the lender knows their interests are protected, because you don’t want to lose your money. Hard money loans also tend to not be subject to consumer lending regulations. So, caveat emptor.

How is Hard Money Funding Used?

If you go ahead with hard money funding, its use is virtually always for real estate projects. These are either house flipping, or real estate investments.

Fix and Flip Loans

House flipping consists of buying a property, repairing it, and selling it for a profit. Fix and Flip loans are one of the most common types of hard money loans. For house flippers, having fast funds for their flips is a necessity. These hard money loans are made for house flippers looking to flip a property by making some upgrades and selling it for a profit.

Fix and flip loans are short term loans (6 – 12 months) covering almost all the house flipping costs. Hard money funding is not only used to cover the property value of the building. It also pays for a portion of the repairs needed to flip. For example, some hard money lenders even offer to base the loan on the after-repair value of the flip. This gives the house flipper more funds to flip with from fix and flip lenders.

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

Long Term Rentals

House flippers don’t always sell the buildings they repair. Many make passive income by renting their properties. For those looking to acquire and upgrade large rentals, hard money funding is essential. This type of flipper financing lends on the underlying asset of the property.

To make the most of long-term rentals, upgrading and repairing the property is necessary. Here, hard money loans are based on the after-repair value of the property. House flipper funding for large one-time repairs to a property helps improve the property for higher rents. It also helps to offset the cost of the repairs.

Vacation Rental Flips

With alternative rental sites like Airbnb becoming more and more popular, house flippers are looking into flipping vacation rentals with hard money loan lenders. Vacation rentals can turn over large profits but many will require large repairs to get more bookings. These repairs and modern upgrades are necessary to ensure solid bookings throughout the year. Using hard money funding to make upgrades is faster than using a traditional lender. Like all flipper financing, the loan is based on property value and not the applicant’s credit history.

Home Rehabs

Paying cash for a property is a great way to lower costs for a property. But it leaves gaps for funding repairs. Home rehabs are ideal for one-time large repairs. This can be for a flip that they bought in cash, a rental, or anything in between.

Often when looking to charge more in rent, house flippers will add amenities and upgrades to their properties. Home rehabs can also be for investors looking to sell off property and maximize their return by adding a few upgrades. With only using flipper financing for the repairs, the house flipper can save money on down payments. This means a larger profit margin via hard money lending. Hard money funding can be a way to make sure projects finish on time.

Hard Money and Bridge Loans

Sometimes house flippers need to refinance properties to prevent foreclosures, get better rates, or get more cash to finish their flip. Bridge loans, a special type of flipper funding, can help flippers complete their projects to save them from foreclosure. Bridge loans work to ‘bridge’ cash gaps for a property. This cash is used to finish the flip, sell the property, or prevent foreclosure.

Hard Money, Bridge Loans, and Foreclosures

Sometimes, house flippers will use hard money loans to buy foreclosed properties. This makes them a great option for someone looking to pounce on a great deal in the fast-moving real estate market. Sometimes bridge loans fund short sale loans, or even the acquisition of off-market properties. They can help you get a hard money loan for auction property.

Hard Money and Refinancing

Reasons for refinancing include to prevent foreclosure, fill in cash flow, or make sure a project is done on time. Hard money funding can help with all of these issues. This type of funding works for house flippers who need a one-time influx of capital.

Hard Money Funding: Beyond the Flip

Hard money funding can be used for more than flips. It can also be used for commercial real estate financing. This is for commercial properties such as retail stores. Note: hard money loan rates will vary.

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

Options Beyond Hard Money Lenders and Funding

Flippers and commercial real estate investors have choices beyond hard money loans. They can try a home equity loan for flipping, or an investment property line of credit for real estate investments. Another option is a business line of credit.

Yet another option is a cash out refinance loan, or a permanent bank loan/online mortgage. Rates and terms will vary. But for great rates, have you checked out what Credit Suite has to offer?

Check Out Commercial Real Estate Financing from Credit Suite and Connect to Hard Money Lenders

Amounts range from $100,000 – $20,000,000. This financing can be used for refinancing a property, even if you are doing a cash-out refinance. Maximum LTV 70%.

Loan-to-values range from 55 – 65%, depending on the purpose of the loan. Plus your clients can also get SBA loans. Renovations get loan to value of up to 60%.

Credit Suite has funding programs available including conventional property financing, money for investment properties and hard money loans, bridge loans and loans for the purchase of commercial real estate.

Commercial Real Estate Financing for All Types of Buildings

Credit Suite offers financing for many different, even unique property types. Get funding for industrial offices (general or medical/dental), light manufacturing buildings, self-storage facilities, and more.

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

Details on Credit Suite’s Commercial Real Estate Financing Program

Approval amounts go up to $20,000,000. Bad credit is accepted. Use the real estate as collateral. You will need to provide bank statements. House reseller financing or a commercial real estate loan can be a big step, let’s take it together.

The Best Hard Money Lenders? The Jury is Still Out on Whether This Form of Funding is the Best Idea

Hard money funding can be a good choice for house flippers and commercial real estate investors who have bad credit or want/need to get money fast. But interest rates can be high, and terms can be short. Plus there is little regulation. Credit Suite can help you get funding for commercial real estate or house flipping, with better rates and terms than you would expect.

The post Can the Best Hard Money Lenders Make this Form of Business Funding Worthwhile? appeared first on Credit Suite.

Business Valuation

What is a Business Valuation? According to Investopedia, “A business valuation is a general process of determining the economic value of a whole business or company unit.” Basically, it determines how much your business is worth. A business valuation gives your business an objective estimate of value.  It is usually done by a professional business evaluator

Why Would You Need a Business Valuation?

The obvious reason is to determine sale value. However, you may also need one to establish partner ownership or for tax purposes.

When Do You Have to Have a Business Valuation?

Some events trigger the need for a valuation.  In these cases, it isn’t optional. You must have one when a shareholder dies, closely-held stock is given as a gift, or you need an equity compensation valuation.

You also need one when there is a dispute as to business value.  For example in the case of a shareholder dispute or a divorce. Other reasons include if you need to create an employee stock ownership plan, you are converting from a C-corp to an S-corp, a charitable contribution is made, or you have to allocate intangible asset

Equity Compensation Valuations

You need one to complete an equity compensation valuation, but they are not the same. Equity compensation is the non-cash pay representing ownership in a business.  It can include options, restricted stock, and performance shares. It allows employees to share in the profits via appreciation and can encourage retention, particularly if there are vesting requirements. To determine the value of the equity compensation, you must first have a business valuation.

Keep your business protected with our professional business credit monitoring.

How Can a Business Valuation Change the Way You View Your Business?

Many business owners have no clue what their business is worth. Most think it is worth more than it actually is, though some may not recognize the gold mine they are sitting on. Knowing what your business is worth can change the way you view your business.  You can begin to recognize what you have to work with.

You can see potential for growth, and also get a handle on worst case scenarios if you have to liquidate quickly.  It allows you to get a handle on what you are working for, and how your previous hard work has paid off. Valuation lets you see where you stand and can help you plan for the future.  For example, if you want to retire with a certain amount and you intend for the sale of your business to help you reach that goal you must know what your business is worth.

How do you Assign Value to a Business?

There are several methods for valuing a business. They include market capitalization, times revenue method, earnings multiplier, discounted cash flow (DCF), method, book value, and liquidation value.

The Market Capitalization Method

Market capitalization refers to the total market value of a business’ total outstanding shares of stock. it’s often called the “market cap.” It is calculated by multiplying the total number of a company’s outstanding shares by the current market price of one share.Companies are typically divided according to market capitalization as follows: large cap equals $10 billion or more, mid cap equals $2 billion to $10 billion, small cap equals $300 million to $2 billion.

Market capitalizationis a quick and easy way to estimate a company’s value. It gives an idea of what the market thinks the business is worth. However, it only works for publicly traded companies. This also means, of course, that the market cap changes with changes in the market.

A simple example of the market capitalization method: Consider a business has 1 billion shares of stock outstanding. If the current market price of one share is $2, then the market cap would be 1 billion shares x $2, or $2 billion. This would put it in the mid cap range.

The Times Revenue Method

The times revenue method of business valuation applies a multiplier to revenue over a specific period of time. The multiplier depends on the industry and economic environment. For example, a tech company may be valued at 3x revenue, while a service firm may be valued at 0.5x revenue.

The times revenue method determines a maximum value, or ceiling.  You can use it to determine a range of values. You can apply the multiplier to projects to estimate future value. Again, the multiplier used depends on the industry the business is in and the current economic environment.

Keep your business protected with our professional business credit monitoring.

Earnings Multipliers

The earnings multiplier is actually a more accurate way to get real company value than the times revenue method. This is because the earnings multiplier considers future profits against cash flow potential at the current interest rate over the same time period. Put another way, it adjusts the current price-to-earnings ratio (P/E Ratio) for current interest rates.

The P/E ratio shows the earnings per share of stock in relation to the current price of the stock. This process acts as a quick and dirty tool to help compare the cost of the stocks with other, similar companies. It can help investors judge current prices of stock in relation to historical prices.

An Example

These two methods are calculated the same way, but with different multipliers.  The revenue number may look different as well, depending on the period of time you use in the calculation. Imagine a company has an adjusted net profit of $1,000 and the multiplier is 4.

Then the value of the business is $1,000 x 4, or $4,000. To a potential buyer, this means that, as long as profits are continued at the same level, they will receive about $1,000 per year for the $4,000 investment, or a return of 25%.

The Discounted Cash Flow Method

The discounted cash flow method (DCF) is similar to the earnings multiplier. It too uses projections of future cash flows and adjusts them to get the current market value of the company.  The difference is this method takes inflation into account when calculating the present value. The goal of the DCF method is to determine the current value of an investment based on projections of how much money it will generate in the future.

The purpose of this valuation method is to get an idea of the money an investor would make from an investment. It is adjusted for the time value of money.The time value of money is the idea that a dollar today is worth more than that same dollar would be tomorrow. This is because you could invest that dollar today, but if you waited until tomorrow it would be invested one day less. Therefore it would be earning for one day less. As a result, it would not be worth as much.

To help understand the time value of money, and thus how it affects the DCF method, consider the following example. Imagine a company releases a new product on January 1st that is hugely successful. Any investors waiting until January 2nd to invest would not benefit from those first day sales. Therefore, their investment is not worth as much as if they had invested on January 1.

Book Value

Book value is simply the value of equity from the balance sheet. You get it by subtracting total business liabilities from total business assets. The book value is the total value of company assets stockholders would receive, theoretically, if the business were liquidated. Compare it to market value to help determine if stocks are over- or underpriced.

So, if a business has total assets on the balance sheet that equal $10,000, and they have total liabilities that equal $4,000, the book value of the company is $6,000. That means, if the business were liquidated, the stockholders would split $6,000 based on the number of shares they hold.

Liquidation Value

Liquidation value is a little easier to understand. It is the value of the company’s assets as they are today. Basically, it shows the cash a business would receive if assets were sold and all debts paid off today. This includes assets such as real estate, fixtures, equipment, and inventory.

It’s important to note that intangible assets are not included in this calculation of business value. Intangible assets are assets that are not physical, like goodwill and intellectual property like patents, trademarks, and copyrights.  Liquidation value will differ from book value. This is because book value uses what you paid for the assets minus depreciation, not what you could sell the asset for today.

Keep your business protected with our professional business credit monitoring.

Which Method Should You Use?

As you may have guessed, each method can yield a different value. The method you should use depends on your purpose for the valuation. For example, if you are trying to sell your business, potential buyers will want to know the income potential of the business. You must know that as well to price the business fairly.

For pricing a business to sell, an income-based approach, like the times revenue or earnings multiplier method may work best. However, if you are trying to determine a value for a divorce proceeding, an asset method may be better.

Which asset method you want to use will depend on which side you are on. If you are receiving the money, you may prefer the liquidation method. If you are paying, you may prefer to use the book value method. This depends on the difference in what you paid for the assets and what they would sell for today.

There are no hard rules on which method you should use when it comes to selling your business. Your business will always be worth what you are willing to sell it for, and what a potential buyer is willing to pay for it. Value is calculation.  Price is a negotiation. That said, if you need a valuation for another reason, you may have to use a specific method.

Who can do a Valuation?

An official business valuation in the US must be completed by an Accredited Business Valuation (ABV) professional. This is an accreditation accountants can get for specializing in calculating the value of businesses. The certification is handled by the American Institute of Certified Public Accountants (AICPA).  To get a certification in business valuation, an accountant must (among other things), pass the required exam and meet minimum business experience and education requirements.

Of course, you can calculate the value of your business using any of these methods yourself. This is assuming you know the formulas and the numbers to plug in. But it will not stand for official purposes. Also, you run the risk of being wrong and losing out in the long run. It is definitely better to have an ABV specialist handle this.

Business Valuation: Takeaways

Business valuation assigns economic value to a whole business. There are several reasons you may need a valuation. These include pricing your business for sale, or for divorce proceedings, and some events require that a valuation be done.

It can also change the way you view your business. There are many methods for assigning value to a business. The one you choose will depend on the reason for doing the valuation. An official business valuation must be done by an Accredited Business Valuation professional.

The post Business Valuation appeared first on Credit Suite.

Setting up a Business Email and Website to be More Fundable

When You’re Setting Up a Business, Did You Know You Need to Pay Attention to Your Company Email and Website?

Setting up a business means attending to what seems like a million little details. Your corporate email and website are two of those details. Don’t drop the ball on them!

But let’s start with business credit.

Business Credit

This is credit in a corporation’s name. It is not tied to the owner’s creditworthiness. Instead, biz credit scores depend on how well a company can pay its bills. Hence consumer and corporation credit scores can vary dramatically.

The Benefits

There are no demands for a personal guarantee. You can quickly get business credit regardless of personal credit quality. And there is no personal credit reporting of company accounts. Biz credit utilization won’t affect your consumer FICO score. Plus the owner isn’t personally liable for the debt the corporation incurs.

The Details

Getting corporate credit is not automatic. Building it requires some work. Some of the steps are intuitive, and some of them are not.

Fundability

Fundability is the current ability of a firm to get funding. Some factors are within your control. Others (like your time in business) aren’t. Your online presence and data are one area which is at or close to 100% with your control.

Business Credit, Fundability, and Business Funding Applications

The better your business credit and fundability are, the more likely you will get approval for financing. Today, let’s concentrate on your online presence, that is, your email address and your website.

Lenders Use Data to Decide on Your Application

They check information from a variety of sources, and they don’t tell you about any of them. Knowing what these secret sources measure can only help you. Understanding what matters the most makes getting a loan A LOT easier, because you know what to improve first. This information is the difference between getting an approval and getting a denial.

Lenders Use LexisNexis Information

LexisNexis is one source where many of the lenders reviewing loan applications get their information from. They offer information regarding likelihood to pay, or not. Lenders compare LexisNexis information to what you put on your loan application. If the application and LexisNexis don’t match, then, the loan providers will deny you a loan. They will see the inconsistency as fraud.

LexisNexis connects all of the data that pertains to you, both positive and negative. They have access to

  • criminal records
  • every email address you’ve ever used (these are your professional and personal email addresses)
  • your speeding tickets
  • any mortgage you have ever held

Keep your business protected with our professional business credit monitoring.

Lenders Use Online Information Including Your Business Email and Website

One place where lenders and vendors will be looking for your company is online. Even if they’re not specifically checking out your online presence, they may still need to know how to order your product or service, or where to send praise or complaints. Your online presence is where they will find that information, or not.

Your Business Email and Website: Your Website

What happens if your family member or a friend built your website? Maybe that person is talented, but corporate websites differ from personal ones. A business website needs to be easy to navigate. It needs to answer customers’ questions.

Styles differ. Wedding photographers and construction companies differ. They have dissimilar sites and design sensibilities, but they both have Contact and About pages, and information about what they do.

Make sure you own your domain, and not just your domain at Wix or WordPress or the like. You can do this by buying hosting. This is through hosting companies like GoDaddy or HostGator.

Your Business Email and Website: Your Email Address

Given that so much more of lending decisions is going on online these days, then your email address is an opportunity for your firm to puts its best foot forward. Don’t squander this easy and free opportunity! General email addresses like admin@yoursite.com tend to be best.

With a general email address, if someone leaves your employ, another employee can seamlessly take over that email address. A username like admin, webmaster, or even hello is far, far better than cutiepie or the like, even if you’re in a playful industry that caters to kids. After all, your bank and banker aren’t.

Your Business Email and Website: Records Congruency

Keep your records consistent! This includes your online records. LexisNexis and the SBFE (Small Business Financial Exchange) are looking at everything, so it had better match.

Inconsistent records will lead to a denial due to fraud because that’s how lenders interpret inconsistencies. This is a cause of denials which is in the owner’s hands. You have the ability to change and correct this.

This means your corporate name, address, phone number – everything! – must look the same in these places and more:

  • Every place you have an online presence (your website, Yelp, SoTellUs, etc.)
  • IRS records
  • Company records with Dun & Bradstreet, Experian, and Equifax
  • All licenses needed to run your business
  • Incorporation documents

Copy/paste this information; don’t chance it with retyping.

Keep your business protected with our professional business credit monitoring.

Build Fundability on Business Credit Applications to Avoid Denials

Keep your firm looking fundable (legit) with:

  • A professional website and email address
  • A toll-free phone number
  • List your phone number with 411
  • A business address (not a PO box or a UPS box)
  • Get all necessary licenses

Your Business Email and Website: Online Fundability

There are some aspects of fundability where you should pay particular attention to what’s going on online. They include:

  • Firm owners listed and listed ownership uniformity
  • Company name and address uniformity
  • Industry aligned
  • Company domain
  • Information uniform on all records

Online Fundability: Business Ownership Listings

Records consistency matters here, too. Your website should show who owns your company. And that information needs to be consistent. So if the owner is named Susan Johnson on your website’s About page, then she can’t be listed as Sue Johnson on your Contact page. If your ownership changes, you need to show that here.

Business Name and Address Uniformity

Abbreviations can be your downfall here, as can punctuation like hyphens, commas, and colons. If your Contact page says your main office is on Main Street, then your About page can’t say it’s on Main St.

If you move, or you add subsidiaries and other locations, then you need to update that information everywhere. This even means whether you use your 5-digit ZIP code, or a ZIP plus 4 code (9 digits).

Fundability: Industry Alignment

If your industry is over the road trucking, then it needs to be listed that way. Pro tip: when your industry can be called several different names, like long distance trucking, mention those other phrases on your website.

Your Business Email and Website: Company Domain

When your company domain matches your company name, it helps with fundability. Pro tip: try to match what people will be searching for online, so if (for example) the word ‘brothers’ is in your company name, then determine if ‘brothers’ or ‘bros’ will be used by people searching for your company and its goods and services online.

Keep your business protected with our professional business credit monitoring.

Bonus: What Your Website Needs

Good websites can help you get funding and convert prospects to customers. While websites differ, there are some things they all need. Such as:

  • Easy to use navigation – hiding important information won’t help
  • Speed – if visitors have to hang around and wait for pages to load, they’ll go elsewhere
  • Intuitive organization – keep your address and phone numbers on your About and Contact pages because people expect that data to be there

Your website also needs:

  • Branding – if your company is known for the color green, but it’s nowhere to be found on your website, you’re losing an opportunity for connection
  • Visual design – ugly websites, and those which haven’t had a design update in a decade are not conducive to enhancing your reputation or making sales
  • SEO – search engine optimization means making your site easier to find. Stuffing in keywords doesn’t help with this, but writing honestly about your biz and using the kinds of terms people search for? That does

One of the more vital items your website needs is content. This can mean blogging, and it certainly means creating pages which explain what you do and what sets your biz apart from its competition. It also means a page devoted to each product you sell or service you provide. Again, you’re making it easier for your prospects to find you.

Setting Up a Business Email and Website: Takeaways

More fundable companies can get more money, and they tend to get more prospects who decide to become customers. One area of fundability you have total or near total control over is your corporate online presence. Keep it professional, uniform. and appealing, and easy to use. We can help you with even more aspects of fundability.

The post Setting up a Business Email and Website to be More Fundable appeared first on Credit Suite.

A Complete Guide To Using Business Credit to Buy Real Estate

If you need to buy commercial real estate, it is probably best to do with business credit rather than a personal loan.  Of course, if you can buy real estate with any loan at all, that’s even better.  But how would you do that? How do you go about using business credit to buy real estate? What is business credit exactly? These are all questions that you need answered. 

The Ins and Outs of Using Business Credit to Buy Real Estate

To put it simply, business credit is credit you get based on the creditworthiness, or fundability, of your business, no you the owner.

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

So, what are the options for funding real estate?  There are a few! If you are using business credit to buy real estate, you can do a commercial loan or hard money loan.  If you want to try to reduce the amount of debt you have to take on, you can try crowdfunding a well. You may get all you need, but you may need to combine funding methods.  

Real Estate Crowdfunding 

Crowdfunding real estate is not all that different from crowdfunding anything else. You use a crowdfunding platform, and others on the platform can donate, or invest, in your cause as they see fit. It began the JOBS Act of 2012.  Small businesses gained relief from a lot of requirements in place by the SEC. These requirements held many businesses back. 

Though similar to crowdfunding for small businesses, crowdfunding real estate investing isn’t exactly the same. Most of those that list on real estate crowdfunding sites are commercial real estate businesses. They are seeking funding for their endeavors. Anyone can invest in commercial real estate. This is similar to investing in the  stock market. Then they can enjoy the returns without actually buying an entire piece of commercial property.

As a result, commercial real estate investors can raise equity and avoid a loan. At the same time, individuals can enjoy the benefits of commercial real estate investing for as little as $500. 

Benefits of Equity Crowdfunding for Real Estate Investors

First, you can raise funds without debt. This is the same reason crowdfunding is a popular way to fund a small business startup. It isn’t free money. There are fees and profit sharing involved. It is often substantially cheaper than borrowing the funds, however. 

Real Estate Financing Using Hard Money 

If you struggle with bad credit, hard money  loans are an option.  The loans are asset-based. They can fund any real estate investment. They are based on the property value. This means, there is no need for background checks or credit scores. Some lenders even offer hard money loans based on the after-repair value of a building. 

Since it’s based on the real estate value , a borrower with poor credit can get these loans. Hard money loans are fast, sometimes even within 24 hours of application.

Interest rates can be very high, some even up to as much three times that of banks. Terms can be very short, like 6 – 18 months, versus a standard 30-year mortgage.

Plus, a hard money lender wants you to have some money in the project as well.  Typically at least 10% of your own money is required. That way, the lender knows their interests are protected because you don’t want to lose your money. Hard money loans are usually not subject to consumer lending regulations. 

Commercial Real Estate Loans

Commercial real estate is income-producing property that is solely for business purposes, not residential. Examples include retail malls, professional offices such as for medical professionals, office buildings and complexes, and auto dealerships. Financing, including the purchase, development, and construction of these properties, often comes from commercial real estate loans. These are mortgages secured by liens on the commercial property. 

Commercial real estate loans are often made to business entities. These include developers, corporations, limited partnerships, and funds and trusts. These entities are sometimes formed for the specific purpose of owning commercial real estate.

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

However, such a business entity may not have a financial track record or any credit rating. In that case the lender may require the principals or owners of the entity to guarantee the loan. 

The owner then puts their property on the line. In case of loan default, the lender can recover from them.

If the lender does not require this type of guarantee, and the property is the only means of recovery in the event of loan default, this debt is a non-recourse loan. It means the lender has no recourse against anyone or anything other than the property.

What are Typical Commercial Loan Terms for Real Estate? 

Using business credit to buy real estate usually means shorter loan terms.  Usually, they range from less than 5 years to 20 years rather than the typical 30 year residential mortgage. The amortization period is often longer than the term of the loan. 

Amortization is an accounting technique. Its use is to periodically lower the book value of a loan or intangible asset over a set period of time.

For example, a lender might make a commercial loan for a term of eight years, with an amortization period of 30 years. Then, the borrower would make payments for eight years, of an amount based on the loan being paid off over 30 years. 

Then one final balloon payment of the entire remaining balance on the loan is due at the 8 year mark.

The length of the loan term and the amortization period affect the rate the lender charges. Depending on the credit strength of the borrower, these terms may be negotiable. However, general, the longer the loan repayment schedule, the higher the interest rate.

Credit Suite Options for Funding Real Estate Investments

These options are all viable, but some work better than others. It can be hard to determine what will work best for you.  

Credit Suite has commercial real estate financing that you should check out.  It ranges from $100,000 – $10,000,000. This financing can be used for refinancing a property, even if you are doing a cash-out refinance. The maximum LTV 70% and loan-to-values range from 55 – 65%, depending on the purpose of the loan. Renovations get loan-to-value of up to 60%.  Credit Suite has funding programs available including: 

  • conventional property financing
  • money for investment properties and hard money loans
  • bridge loans and
  • loans for the purchase of commercial real estate

Credit Suite offers financing for various, and even unique, property types. You can get funding for offices, industrial offices, industrial facilities, light manufacturing buildings, self-storage facilities, mixed use properties, commercial condos, auto dealerships, light auto services, day cares, assisted living facilities, entertainment venues, multi-family properties, retail warehouses, and more.

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

How a Business Credit Expert Can Help

If you plan on using business credit to buy real estate, you can do so even if your personal credit score isn’t great. However, you may get better terms and interest rates if you have a strong business credit score also. A business credit expert can help you evaluate your fundability and guide you as you navigate the process of increasing fundability and building a strong business credit score.

The post A Complete Guide To Using Business Credit to Buy Real Estate appeared first on Credit Suite.

How We’re Going to Use X Reality (XR) in Business

Are you ready for X reality? It’s coming, too, along with a host of exciting business and marketing opportunities.  

Here is what it is, why it matters, and how to use it to grow your business. 

What Is X Reality?

X reality is short for extended reality. Sometimes called cross reality, it’s a convergence of the real, physical world around us and a digital world or space. 

One way to think about it is combining a digital or virtual experience with a physical one. There are many different ways this plays out, but as the technology develops, the opportunities explode. 

To get a better picture of what we’re talking about, let’s take a moment to imagine. Have you ever taken a tour through a museum with a set of headphones that give an audible experience as you walk along? Suddenly, it sounds like you are walking through the Wild West or wherever this experience is taking place. 

Now add visuals and other physically interactive elements. Maybe you can actually touch the doors of the saloon or watch the scenes change as you walk down the dusty road. You can draw your pistol for a duel.

Imagine having these experiences, even when you aren’t at the museum. Maybe it’s in your own backyard. Or your hometown main street. Your reality has merged with the virtual. Your reality is extended.

The technology that allows for these immersive reality experiences is constantly evolving, bringing our reality closer to the virtual experience. 

To get the full X reality experience, certain hardware may be required. Again, think about enhancing the physical with the digital. You may need tools to provide that combined experience. Typical hardware may include a tablet, such as an iPad, a smartphone, a headset, earphones, or other body wear, including gloves, etc.

The specifics reflect the specific experience, and what you are trying to achieve for the user. Some extended reality experiences are simpler, while others are more involved and more immersive.

In so many ways, it is the future of marketing. Whatever marketing campaign you’re developing, the goal is to get your brand out there and help your target market see how they can’t live without your brand. Extended reality opens a world of opportunities to interact with products, services, and brands. 

It’s not just in the sales funnel at an introductory level where X reality can support your brand growth. It can help you build brand awareness, customer satisfaction, customer loyalty, word of mouth, and referrals, and more. 

Here are a few ways it can be used in your business:

  • Train your staff to prepare for difficult or tricky customer service situations.
  • Arm your sales team with tools to connect customers with the best options. 
  • Let customers “try out” a product beforehand.
  • Connect in-person shoppers with digital information.
  • Create new designs or products in a virtual world.
  • Bring a certain layer of fun to your brand.

As X reality continues to expand, the entire marketing ecosystem will evolve as well, calling us to respond. Everything from brick-and-mortar experiences to SEO will be impacted by X reality. 

AR vs. VR vs. MR: The Three Types of X Reality

X reality is an overarching term that can refer to each of these: augmented reality (AR), virtual reality (VR), and mixed reality (MR). While these are sometimes used interchangeably, the specifics can vary, and they do have exact definitions. Let’s dive in.

Augmented Reality  

Augmented reality is about overlaying the real world and the experiences of the physical world around us with virtual or digital enhancements. Augmenting means to make something bigger or better, so augmented reality is about making the things you see around you somehow better, depending on your definition of better. 

It’s a way of interacting with the people and things around you and a digital space simultaneously, often using the camera of a smartphone or mobile device to interact. 

Virtual Reality

Virtual reality refers to interactive, immersive experiences that are computer-generated. Virtual reality experiences are about full digital worlds that are a sort of escape or separation from the real world, rather than an overlay. Virtual reality requires hardware to help the user jump into the virtual world. These tools may include a headset, viewers, glasses or goggles, as well as other items like gloves. With these, the user is able to simulate experiences in their virtual world, incorporating their own bodies and movement.

Mixed Reality

Mixed reality is exactly as it sounds. It’s a mix of the virtual world with the physical. According to Microsoft, when it comes to the spectrum of physical and virtual worlds, mixed reality sits in the middle. It’s also in the middle of virtual reality and augmented reality. It takes place with one foot, or one digital foot, in each space. 

Mixed reality is where a lot of technology evolution is pushing right now. While it’s easy to come up with examples of AR or VR, mixed reality is more about pressing those concepts together, using all the tools and technologies we have to create even more exciting experiences. 

How AR, VR, and MR Differ

While these three concepts differ slightly in their starting points, and the tools needed to make them work, they do have one thing in common: They are about extending a digital world into our everyday lives with greater ease and more seamless connections.

These three types of X reality are ripe with the ability to bring better user experiences to your customers throughout the sales process, to help you ultimately reach your own brand goals. 

5 Ways to Use X Reality in Business

As much as there are fun and entertaining ways to use X reality, there are also powerful and exciting ways to integrate the technology into your business to support your sales goals. Using extended reality keeps you on the cutting edge, setting you apart from your competition who may be slow to adopt it.

It also equips your customers and your team with opportunities. Here are just a few ideas to get you thinking.

1. Product Content Management 

When it comes to staying organized with everything you are creating and selling, your product content management system is the heartbeat of it all. Whether it’s a spreadsheet or integrated software, it’s the place where you keep all the details, facts, and data behind each product. 

Here’s where X reality can take your product management system to the next level. Imagine being able to react to your customers’ needs and product demands in virtual 3D space. This interactive design is growing in popularity, allowing teams to make tweaks or try new designs, simulating a real-world without the cost or ability to actually create items. 

This is particularly useful for products at scale that are too large or expensive to create prototypes of. It also gives the whole team an opportunity to actually interact with a product, so you don’t have to slow down, collect questions, run the numbers, and make necessary edits. It’s a time-saver and brings proof of concept faster. 

There is an added benefit of these digitally connected X reality systems. They can connect with your product content management system and share data. You can keep track of all the specs of your current products, as well as all the information about products in development, in real-time. 

2. Remote Team Building and Collaboration

Remote teams benefit from a host of technologies that allow them to communicate and stay in touch, including video meetings and instant messaging. 

Yet nothing beats speaking in person, interacting with the rest of the team and the actual products. PromoLeaf did a survey and found that 72 percent of respondents preferred an in-person conference in their industry, rather than one online. In the youngest crowd they surveyed, ages 16-24, 84 percent preferred to be in-person.

X reality can help merge those opposing options by making it seem like remote employees are in the same location working together on projects. 

3. Product Preview

We’ve all experienced the itch to “try before you buy” when it comes to new products. It’s just not apparel, tools, or the latest smartphone. How about furniture, automobiles, homes, and more? Does that seem too far out of reach?

Not with X reality. Using up-and-coming technologies, brands can create apps that allow you to view and interact with a product for yourself. Now you can test our furniture in your own home before buying. You can drive your ideal car through the streets of your morning commute before it’s even created. You can walk through your dream home, while still on the other side of the country or the world. Just imagine all the possibilities.

From in-app devices to headset-enabled simulators, you can “be there” without being there and trying it, even before it exists.

4. Interactive Advertisements

X reality has so many fun benefits to get people talking. Sometimes those features alone can be the reason to adopt them. 

Using X reality in your advertising can allow the public to interact in different ways and help you seem more authentic than other ads. It can also get people talking and give your ad extra exposure. 

Brands have tried all kinds of things, including bringing a printed item to life through an app. Suddenly your magazine or brochure is interactive or other videos. Other brands have used augmented reality and large screens to welcome passersby and onlookers to interact with virtual characters. Others use social media filters and other features to showcase their brands. 

5. Train Your Team

Business is full of training. From safety and regulatory training to sales conversion and customer service training, arming your team with the most relevant information possible is critical. 

With X reality, your team can do more than just talk about situations. They can walk through them together, interacting with people and products. You can even simulate potentially dangerous situations without putting one in harm’s way, and still gain the experience and confidence they need to be ready for real life.

Examples of X Reality

Have you experienced reality for yourself yet? Here are a few examples of some of the most talked about. 

Pokémon Go

Pokémon Go put augmented reality on the radar for all of us. Through the lens of a mobile device, the world could suddenly be full of Pokémon characters. This game showcased how entertainment and X reality can boost small local businesses, with real-world locations signing up as Pokéstops and Gyms.

Examples of X Reality - Pokemon Go

IKEA App

IKEA Place allows customers to “place” IKEA furniture in their own space, and see how it will look and fit. It sets the bar for other furniture makers by offering a service that others may not have incorporated yet. Plus, it’s kind of fun to use, so even when people aren’t ready to buy, they may still play around on the app just to see what it’s all about. 

Examples of X Reality - IKEA app

Warby Parker

Warby Parker has also cashed in on the opportunity to let customers try on before they buy. Using an app, customers can view themselves in any number of Warby Parker glasses.

It’s not just a snapshot with the frames overlaid, but an interactive, real-time experience where customers can move their head, look from all angles, and then throw on another pair. 

Conclusion

X reality is a fun idea that seems primed for gaming and entertainment, but it’s tailor-made for business and online marketing. From product development to customer service, extended reality can change the way we interact with our brands, our customers, our team, and our world.

As the world of business continues to evolve, there are many reasons to believe extended reality will be part of that equation. 

How will you incorporate X reality into your brand?

How We’re Going to Use X Reality (XR) in Business

Are you ready for X reality? It’s coming, too, along with a host of exciting business and marketing opportunities.   Here is what it is, why it matters, and how to use it to grow your business.  What Is X Reality? X reality is short for extended reality. Sometimes called cross reality, it’s a convergence of …

The post How We’re Going to Use X Reality (XR) in Business first appeared on Online Web Store Site.

Ecommerce Business Inventory Financing

How Can Ecommerce Business Inventory Financing Help Your Business?

Selling goods online? Then you might need Ecommerce business inventory financing.

Our World Has Changed – and It’s Gone Even More Online

While there was already a lot of online commerce, in March of 2020, due to COVID-19, a good 42% of Americans bought groceries online at least once per week. Orders for grocers from Amazon increased 50 fold!

Statista says about 227.5 million Americans were buying online in 2020, so with 330.7 American citizens, that’s just under 69% of all Americans. They are buying a lot more than groceries online. And that’s only continuing in 2021.

What is Ecommerce Business Inventory Financing?

According to Investopedia, “Inventory financing is a revolving line of credit or a short-term loan that is acquired by a company so it can purchase products for sale later. The products serve as the collateral for the loan.”

Why Can Ecommerce Business Inventory Financing Work Right Now?

Online businesses are doing relatively well right now. You already have experience with doing all of your commerce online. With a lot of brick and mortar businesses closed right now, or only tentatively reopening, ecommerce businesses can continue to do well.

Consider Ecommerce Business Inventory Financing

Use your existing inventory as collateral for business financing. You’ll need inventory valued at $300,000 or more. You can get approved for a line of credit for 50% of inventory value. 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.

But 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. There may also be minimum FICO score requirements.

Alternatives to Inventory Financing

There are a number of other ways to get financing for your online business. Your business – and you – have assets beyond inventory. You can tap these assets as collateral. You can use: a 401(k) or IRA, accounts receivable, or stocks or bonds. The 401(k), stocks, or bonds don’t have to be yours. You can work with a partner with these kinds of assets.

Securities-Based Financing

Use existing stocks as leverage to get business financing. Borrow as much as 90% of their value. You continue to earn interest on the stocks pledged as collateral. Closing and funding takes less than 3 weeks.

Rates can be as low as 1.6%. This is a working capital line of credit. You will have challenged personal credit.

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

401(k) Financing

Use your existing 401(k), or IRA as collateral for business financing. This program uses IRS proven strategies. You will pay no tax penalties.

You still earn interest on your 401(k). pay low rates, often less than 5%. Close and fund in less than 3 weeks. You can usually get up to 100% of what’s “rollable” within your 401(k).

Follow these steps. A new corporation is formed; a retirement plan is created to allow for investment into the corporation; funds are rolled over into the new plan. Then the new plan purchases stock in corporation and holds it. The corporation becomes debt free and cash rich.

Accounts Receivable Financing

Use your outstanding account receivables for financing. Get as much as 80% of receivables advanced ongoing in less than 24 hours. The remainder of the accounts receivable are released once the invoice is paid in full. Closing takes 2 weeks or less. Factor rates as low as 1.33%. Accounts receivable credit line with rates of less than 1% with no consumer credit requirement

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.

Amazon Corporate Credit Line

Get revolving or pay in full. You can authorize multiple buyers on a single account and download order history reports and pay by purchase order.

With the pay in full credit line, you get net 55-day billing terms to pay in full with no interest. You can set up primary and secondary accounts for multiple purchasers. And you will get a Dedicated Account Manager.

For the revolving credit line, you can make minimum payments or pay in full monthly. Pay 12.99% purchase APR (the minimum interest charge is $1). You get an option to apply as a personal guarantor to build business credit. And enjoy 24/7 Customer Service.

Amazon Lines of Credit and Working Capital Loans

If your business is eligible, you will see funding options when you log into Seller Central. Currently, lines of credit are offered by Marcus by Goldman Sachs. Loans come from Amazon Lending – specific terms are tailored to the business. Get access to loan funds within 5 days.

Kickfurther

You can finance your next inventory purchase with financing from customers and brand supporters and fundraise directly to them. The way it works is, customers buy through what’s called a Consignment Opportunity. 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.

Shopify Capital

With Shopify Capital, you can get 12-month terms. Pay back with a percentage of daily sales. Borrow between $200 and $1 million. The total owed and daily repayment rate depend on risk profile.

OnDeck

OnDeck offers inventory loans and business lines of credit. Term loans runs $5,000 to $250,000, with 12-month terms paid back daily or weekly. Lines of credit run from $6,000 to $100,000. Pay back over 12 months, with automatic weekly payments.

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

Get to know Our Hybrid Credit Line Program

Check out this form of unsecured funding. Unsecured funding does not require collateral, but the lender’s risk is mitigated by higher interest rates. Our credit line hybrid has an even better interest rate than a secured loan. Yet you can get the money faster and easier than any type of traditional funding. Get business funding without having to supply bank statements or credit stubs. You can get funding in a few days rather than weeks without supplying any collateral or documents.

You can get some of the highest loan amounts and credit lines for businesses. Get 0% business credit cards with stated income. No financials required. 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.

You can often get a loan of 5 times the amount of current highest revolving credit limit account. This is up to $150,000. Easily five times what you could get on your own when applying for cards. Get cash out on this program as well.

Advantages

There will be NO impact on your personal credit with this type of financing. You need a good credit score or a guarantor with good credit to get an approval. With good personal credit, get unsecured credit cards with a personal guarantee. And with good business credit, get unsecured credit cards without a personal guarantee.

Check out business credit. It should be your goal to build business credit, even if you can get funding elsewhere. Business credit will help your company for years to come. Business credit is credit linked to your EIN and not your SSN.

This credit is available without a personal guarantee. It is available regardless of personal credit. You can get business credit immediately. Business credit is the only way to get money for a business when you don’t have collateral, cash flow, good personal credit, or a guarantor.

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

Ecommerce Business Inventory Financing: Takeaways

Due to current circumstances, online businesses are doing relatively well. You can get inventory financing for your ecommerce business. Or use personal or business assets as collateral for business loans. Amazon and Kickfurther offer even more options. Our hybrid credit line is a stellar choice if you or a guarantor have good personal credit. And don’t forget to build business credit, for even more money for your ecommerce business.

The post Ecommerce Business Inventory Financing appeared first on Credit Suite.

Advantages of Working from Home Running a Business

Everyone knows there are advantages of working from home.  In the post COVID-19 pandemic world, the disadvantages have become clear as well. However, working from home and running a business from home are two very different things.   Do the Advantages of Working from Home Apply When Running a Business? The short answer to this question … Continue reading Advantages of Working from Home Running a Business

Advantages of Working from Home Running a Business

Everyone knows there are advantages of working from home.  In the post COVID-19 pandemic world, the disadvantages have become clear as well. However, working from home and running a business from home are two very different things.  

Do the Advantages of Working from Home Apply When Running a Business?

The short answer to this question is yes. The advantages of working from home are still there when running a home based business.  In fact, the same disadvantages are present as well.  What many do not realize is that there are some unique disadvantages to working from home while running a business.  However, they are not impossible to overcome.

Clear Advantages of Working from Home

It’s not hard to find information on the advantages of working from home.  The internet is full of articles and blogs on why working at home is great and how to make it even better. All you have to do is search “work at home tips” and a plethora of information will be at your fingertips. You save money on overhead.  You save money and time not commuting.  Clothing costs are significantly cut.  Eating out is not as huge as a temptation so you can save money and your waistline. 

Of course each of these advantages of working from home can be a disadvantage as well. For every meal you don’t have to eat out you can make as many trips to your fridge as you want and get whatever you want.  That can add to your waistline and your grocery bill.  Some are not as productive when they are wearing pajamas.  Despite the savings, a lot of people would rather have the  commute time to wind down after a long day. It all depends on the individual.

Unique Disadvantages of Working from Home Running a Business

Sometimes it can be hard to determine if the advantages of working from home overcome the disadvantages.  Loneliness and isolation, lack of physical activity, distraction caused by everyday activity in the home,  and lack of accountability are all well documented disadvantages of working from home. However, running a home-based business out of your house comes with a unique set of disadvantages. 

Harder to Manage Employees

First, if you have employees, you no longer have to worry only about your own productivity.  You have to ensure they are being productive as well.  That’s a challenge, but technology has come a long way in that area.  There are a number of options for daily contact and project management that can reduce the issues caused by this. 

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

Fundability is More Difficult to Achieve

The truth of the matter is, you achieve fundability the same way regardless of whether you run your business out of your home or from a separate location.  The difference is, running a business from home may tempt you not to bother with some things that actually have a huge impact on fundability.  

For example, for a business to appear fundable to a lender, it needs to be totally separate from the owner.  This means having separate contact information, an EIN, being incorporated, and having a separate business bank account amount other things.  These are all things that a lot of home-based business owners do not worry about in the beginning. 

I mean, running your business from your home is an easy way to start. You can just use your own phone number and address, use your SSN and not worry about an EIN, and use your own bank account because it’s your money anyway.  

This is perfectly legal and definitely the easiest way to do things. But the easiest ways are not always the best ways.  If you set your business up to be a separate, fundable entity from the start, you are much more likely to be able to get the funding you need. 

How to Overcome the Work from Home Challenges of Running a Home Based Business

This potential lack of fundability can make it much harder to get approval for home based business loans and other types of business funding.  There is a way to overcome this issue, but you need help.  There are over 100 factors that affect fundability.  It is virtually impossible for a business owner to keep tabs on all of them on their own. 

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In fact, the secret sauce required by each lender is typically known only to that lender.  That is, unless you can find a business credit expert to help you navigate. This is someone who not only understands all the ins and outs of fundability, but knows how to access it for your business. They have the knowledge and relationships necessary to know where to look and who to talk to to get the information you need to establish and build strong fundability.

They can also help you find financing that you qualify for right now, while you work on building the fundability of your business. Here are some examples.

Best Home Based Business Loans

Despite the fact that one of the biggest advantages of working from home is cost savings, getting funding is an issue.  When running a home based business, you have a few options. If your business is set up to be fundable, you have a lot more.  The key is to find the funding you can get now, and work on fundability in the meantime. 

Resist the urge to get a personal loan if you can find another possibility. Funding your business with personal credit should be a last ditch effort. It can have a serious negative impact on your personal credit score and financing in general.  Here are a couple of things to try first. 

Credit Line Hybrid

A credit line hybrid lets you fund your business without putting up collateral, and you only pay back what you use.   You need a personal credit score of at least 680.  In addition, you can’t have any liens, judgments, bankruptcies or late payments.  Furthermore, in the past 6 months you should have less than 4 credit inquiries, and you should have less than a 45% balance on all business and personal credit cards.  It’s also preferred that you have established business credit as well as personal credit.

If you do not meet all of the requirements, it’s okay. You can take on a credit partner whomeets each of these requirements.  Many business owners work with a friend or relative to fund their business.  If a relative or a friend meets all of these requirements, they can partner with you to allow you to tap into their credit to access funding. 

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

What are the Benefits of a Credit Line Hybrid? 

There are many benefits to using a credit line hybrid.  First, it is unsecured, meaning you do not have to have any collateral to put up.  Next, the funding is “no-doc.”  This means you do not have to provide any bank statements or financials.

Not only that, but typically approval is up to 5x that of the highest credit limit on the personal credit report. Additionally, often you can get interest rates as low as 0% for the first few months, allowing you to put that savings back into your business.

The process is pretty fast, especially with a qualified expert to walk you through it.  Also, the approval of multiple credit cards creates competition.  This makes it easier, and likely even if you handle the credit responsibly, that you can get interest rates lowered and limits raised every few months. 

The best part is, these accounts report to the business credit reporting agencies, which helps you build your business credit score.  A strong business credit score strengthens fundability.

401K Plan Financing

401(k) plan financing is not a loan. You will not have to pay an early withdrawal fee, and you will not have to pay a tax penalty.

Our 401(k) plan financing offers a powerful and flexible way for new or existing businesses and franchises to leverage assets that are currently in a 401(k) plan or IRA. 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.

What About the IRS?

This is a 401(k) Rollover for Working Capital program.  The IRS calls it a Rollover for Business Startups (ROBS).  According to them, a ROBS qualified plan is a separate entity with its own set of requirements. The plan, through its company stock investments, rather than the individual, owns the trade or business. Therefore, some filing exceptions for individuals may not apply to such a plan. As always, it is going to be best to check with an expert.

401K Financing Details

This type of financing is not a loan against your 401(k), so there is no interest to pay. It does not use the 401(k) or stocks as collateral. Also, it’s quite easy to qualify for. You will not need financials or good credit to get approval. All the lender will require is a copy of your two most recent 401(k) statements.

If your plan has a value of more than $35,000, you can get approval even if your personal credit score is bad. You can receive whichever percent of your 401(k) is “rollable” as financing.  In many cases, you can secure a low-interest credit line or loan for 100% of your current 401(k) value.

The 401(k) you use cannot be from a business where you are currently working. Also, you cannot be currently contributing to it.

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

Enjoy All the Work from Home Benefits While Running Your Own Business

It is harder for a home-based business to get funding.  This stems from the fact that it is harder to separate the business from the owner for fundability purposes. That does not mean that you cannot enjoy all the advantages of working from home while running a business however.  It can be done.  You can build business fundability while running your business from home.  You just have to be intentional. A business credit expert to walk  you through the process is a must. Do not fall into the trap of thinking you can do this on your own. 

This is someone who can not only help you assess and build fundability, but they can also help you find the financing you can get right now easier and faster.  Find out more today.

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