How to Get Approved for a Business Credit Card

Want to learn how to get approved for a business credit card?

How to Get Approved for a Business Credit Card

We researched a ton of company credit cards for you. So, here are our preferences.

Per the SBA, small business credit card limits are a whopping 10 – 100 times that of consumer credit cards!

This demonstrates you can get a lot more cash with small business credit. And it also shows you can have personal credit cards at retail stores. So, you would now have an extra card at the same shops for your small business.

And you will not need collateral, cash flow, or financials to get company credit. But you do need to be fundable.

Be Fundable to Get a Business Credit Card

The best way to get approved for a business credit card is to build fundability. But what does it mean to be fundable?

Fundable: of or capable of being funded; deserving of being funded. Fundable also suggests – able to be funded by a lending institution or a credit issuer.

Lenders and credit providers want to see if your corporation is a good credit risk. Firms which are fronting your business cash, they wish to know that you can pay them back. They want to be sure you’re not committing fraud. It all starts with your industry.

Industry

Some industries are believed to be high risk or restricted. These industries, by definition, are going to have a more difficult time getting financing of any kind. There may be high risks of injury at work. Or the industry might engage in a lot of cash transactions.

Industry Aligned on All Records

This is the idea of congruency, and it turns up repeatedly. Business credit reporting bureaus and lenders will analyze your corporation carefully. Among the major ways they do this is by strictly looking for matching records.

Because of this, if your records do not all match, it will show up as if they are missing. Missing records will trigger a rejection, as a loan provider will assume fraud on its face.

Therefore, it is crucial to make sure that every record, anywhere, is identical.

Copy/paste this info; do not chance it with retyping.

Business Name

Including a risky business type in your corporate name will cause funding rejections. Listed corporate ownership must be the same any place you list it. It is best practices to keep a record of every place where your corporation has a listing.

Website

A business needs a professional-looking site. And it must have site hosting from a provider like GoDaddy. Do not use Weebly or Wix. It needs to be your domain, not domain.wix.com. Use Upwork to employ people who can help you get set up. Get a professional logo from Fiverr.

Business Address

A business address must be a real brick and mortar building. It must be a deliverable physical address. This can never be a home address or a PO Box. Do not use UPS mailing addresses.

Never use a home address on your application.

Business Phone Number

Your corporation must have its own phone number. Do not give a personal cell or residential phone as a business telephone number. But VOIP (voice over internet protocol) is fine.

Also, your corporate telephone number must be toll-free. This is 800 exchange or such.

You must list your company phone number on 411. You can do so on http://www.listyourself.net. Your phone number has to have a 411 listing for most credit issuers, lenders, vendors, and even insurance companies to approve you. Check your record to see if you’re listed. Make sure your information is accurate.

Time in Business

Incorporation date, the business license issue date, and the date you opened your business bank account all matter.

Business Bank Account

You need a business bank account, to keep funds separate from personal accounts. Keep a good, positive balance and avoid NSFs.

Business Entity

This defines issues of liability, and it makes a difference when it comes to taxes. The best business entity for fundability is a corporation.

Corporations are legally distinct from their owners. Whether you pick a C-corporation, an S-corporation, or an LLC is your choice.

A sole proprietorship means the business owner is it when it pertains to liability and tax obligations. Nobody else is responsible. Incorporating fixes this.

Any complete company name must include any recorded DBA filing you use. This necessary for document congruency.

But no matter what, if you run a small business as a sole proprietor, the best thing to do is to incorporate. If you have already filed a DBA, you will still need to move onto a corporate business entity. You ought to only look at a DBA as an interim step on the way to incorporation.

Check with your Secretary of State to guarantee they have all the needed details for your business. Make certain that you are in good standing with them, and that your entity is active. You must submit annual reports and pay a fee each year to stay active.

EIN #

Go to the IRS website and get a free EIN for your business. This is also where you choose a business entity like corporation, LLC, etc. To open a business bank account, and file business taxes, you need an EIN, so get this out of the way first.

Email

Corporate e-mail addresses must be professional. This means something like admin@yoursite or info@yoursite. Your business e-mail must be on the exact same domain as your business. Do not use generic free email services likes Gmail, yahoo, or msn.

Business Licenses

A corporation must have all of the licenses necessary for running. These licenses all must be in the perfect, accurate name of the business. And they must have the same corporate address and telephone numbers.

This means not only state licenses, but potentially also city licenses. Check with your Secretary of State’s office.

Business Credit Bureaus

The biggest and best-known business credit reporting agencies (also called CRAs or bureaus) are D&B, Experian, and Equifax.

Business Data Agencies

These companies collect data and offer it to the business CRAs.

CreditSafe provides alternative credit, where they base some of their scoring on utility and rent payments. These payments are typically not considered by other CRAs unless they’re late. CreditSafe reports these payments whether positive or negative. Third-party payments like Credit Suite, CRM, and software can be included.

LexisNexis is where a number of lenders get their info from. They furnish info on likelihood to pay, or not. If the application and LexisNexis do not match, then loan providers will deny you funding. They will see the disparity as fraud.

The SBFE collects data on small businesses from its members, which are lending institutions. Lenders use this information to make credit decisions.

FICO uses its SBSS (Small Business Scoring Service) Score to combine consumer bureau, monetary, application, and business bureau information.

Business credit providers and the SBA use the FICO SBSS score as a tool to decide whether they should authorize a loan to your business.

Identification Numbers

CRAs use identification numbers to designate your business.

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

Begin at the D&B website and get a free D-U-N-S number. If there is no D-U-N-S number, then there is no record and no PAYDEX score. Your D-U-N-S plus three payment experiences gets you a PAYDEX score.

Business Credit History

Your company credit history is the single most important driver of your business credit scores. In turn, this influences fundability profoundly.

Late repayments will impact your business credit score for years. If you pay your business financial obligations off, as swiftly as possible and as completely as possible, you can make a very real difference in your credit scores.

UCC Filings

If the business owner has poor personal credit, lenders will typically secure a UCC blanket lien if they give your company a loan.

This is a note on your credit report. It says the financial institution has an interest in all your corporation’s assets till you pay off the loan in full. Therefore, there may be dire consequences if you default.

UCC filings are a matter of public record. Lenders and credit providers take them into consideration when determining if your business is fundable.

Judgments, Liens, and Bankruptcies

These are all a matter of public record, and they can all negatively impact fundability.

Together with UCC blanket liens are any other liens against your corporate assets. A lien is a credit provider’s right to retain possession of property belonging to until the debt owned by that person or business is discharged.

A lien isn’t quite the same thing as collateral – it’s the property which is subject to the lien is the collateral.

Total number of trade accounts and highest credit limit

These come from credit issuers which give you starter credit when you have none. Terms are usually Net 30, versus revolving.

The more trade accounts, the better. But in general, a few high credit limit accounts do more to enhance business fundability than a large number of very low credit limit accounts.

By getting trade credit ASAP, your trade accounts are as aged as they can be.

Financial data

Opening and responsibly using business credit accounts can help you increase your available credit and boost your credit rating. The key is to use your credit.

Closing accounts has a direct impact on overall credit history. If a card is closed and is in good standing, it will fall off a credit report at some point. And once it’s gone, the history which accompanied it is gone, too.

By closing accounts, you are tanking the average age of your accounts. It’s a part of fundability over which you have control – simply use your credit and pay it back quickly. In this way, your providers will not feel the need to close accounts for non-use.

Congruency is a requirement in your business CRA records, as in all other areas.

Financial Statements

Financial statements include business tax returns. It’s best if these are prepared by an accountant or an accounting company, or at least audited by them.

Tax returns should be complete and up to date. Reported income and expenses should be commensurate with those anticipated from a corporation of your size, age, and industry.

Personal Financials

In particular for newer businesses, credit issuers and lenders will want to see personal financials. This includes taxes and reported income and expenses. Banks will even look at child support and criminal records.

Just like there are business credit reporting agencies, there are CRAs for personal credit. In addition to reporting on business credit, Experian and Equifax also report on personal credit. TransUnion only reports on personal credit.

Data Agencies

There are companies which collect data and provide it to the personal credit reporting agencies. Some banks and other credit issuers use ChexSystems to get more information on your personal credit habits. They also report on insufficient funds, closed accounts, and overdrafts.

Lenders use LexisNexis information to cross-check loan applications. Your FICO score comes from your payment history, amounts of owed, length of credit history, credit mix, and new credit.

Personal Credit History

Much like your business credit history matters for calculating fundability, so does personal credit history. Data points like accounts over limit, authorized users, and short sales loom large.

Lenders are looking at settled debt, foreclosures and late payments. They are checking opened accounts and history length. They want to see if there are any bankruptcies in your past.

More than two recent inquiries will be seen as proof of credit shopping. Credit Utilization Rate also matters. Credit Utilization Rate is credit in use, divided by total available credit. Keep this ratio at about 30% or less. Experian checks utilization rate both overall and per credit card.

Application Process

Even the process of applying can have an impact on your fundability. This includes time, negotiations, and whether your application is being made in person. Choosing a lender familiar with your industry makes a positive difference.

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

Fundability, on Balance

Keep all records consistent to ensure fundability. Set up your business legitimately, with a domain, phone numbers, an address, and more. Get all ID numbers and register with the IRS. Set up your business bank account for fundability. Keep all business financials organized and have them prepared by a competent professional. Get your personal credit ‘house’ in order.

Being fundable means your business can get financing from a credit provider or lender.

How to Get Approved for a Business Credit Card with 0% Introductory APR – Pay Zero!

Blue Business® Plus Credit Card from American Express

Take a look at the Blue Business® Plus Credit Card from American Express. It has no yearly fee. There is a 0% introductory APR for the initial 12 months. Afterwards, the APR is a variable 14.74 – 20.74%.

Get double Membership Rewards® points on day to day company purchases like office supplies or client dinners for the initial $50,000 spent each year. Get 1 point per dollar afterwards.

You will need good to outstanding credit scores to qualify.

Find it here: https://creditcard.americanexpress.com/d/bluebusinessplus-credit-card/

American Express® Blue Business Cash Card

Also take a look at the American Express® Blue Business Cash Card. Note: the American Express® Blue Business Cash Card is identical to the Blue Business® Plus Credit Card from American Express. Yet its rewards are in cash as opposed to points.

Get 2% cash back on all qualified purchases on up to $50,000 per calendar year. Then get 1%.

It has no annual fee. There is a 0% introductory APR for the initial one year. After that, the APR is a variable 14.74 – 20.74%.

You will need great to outstanding credit to qualify.

Find it here: https://creditcard.americanexpress.com/d/business-bluecash-credit-card/

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

How to Get Approved for a Business Credit Card for Luxurious Travel Points

IHG ® Rewards Club Premier Credit Card

Consider the IHG ® Rewards Club Premier Credit Card. it earns hotel rewards worldwide. For each dollar spent at participating IHG hotels, earn 10 points. Earn two points per dollar spent at gas stations, grocery stores and restaurants.

Plus, all other purchases earn one point. New cardholders can get an 80,000-point sign-up bonus when they spend $2,000 in the first three months of account opening.

Details

This card provides a free one-night hotel stay each year. Plus, there is a variety of benefits like travel and purchase coverage and an upgrade to Platinum Elite status with the IHG Rewards Club. The club offers complimentary room upgrades when available and guaranteed room availability.

The biggest issue is that the card does not have a zero percent APR introductory rate. And the standard APR is 17.99 – 24.99% variable. Also, the yearly fee is $89.

Get it here: https://creditcards.chase.com/a1/ihg/premiernaep

Marriott Rewards® Premier Plus Credit Card

This credit card earns six points/dollar spent at participating Marriott and SPG hotels. And get two points/dollar on all other purchases.

Spend $3,000 in the initial three months from account opening and get two free night awards (each has a value of up to 35,000 points).

Cardholders get access to perks including a free one-night stay each year after account anniversary. Also get travel and purchase protection. So, this includes free standard in-room Wi-Fi and priority late checkout.

Details

Perks include baggage delay reimbursement, and lost luggage reimbursement. There is also trip delay reimbursement. And there is purchase protection. Plus, there are concierge service and automatic Silver Elite status, which includes a 20% bonus on points.

Spend $35,000 each account year and get an upgrade to Gold Elite status. So, that includes a complimentary room upgrade, free daily breakfast and 4 PM late checkout.

There is an annual fee of $95. The APR is a 17.99– 24.99% variable.

Get it here: https://creditcards.chase.com/marriott/apply

How to Get Approved for a Business Credit Card for Low APR or Balance Transfers

Discover it® Cash Back

Look at the Discover it® Cash Back card. There is a 10.99% introductory APR for six months from date of first transfer. So, this is for transfers under this offer which post to your account by January 10, 2019.

After the introductory APR expires, your APR will be 14.99% to 23.99%. So, this is based on your creditworthiness. Your APR will vary with the market, which is based on the Prime Rate.

Details

You can get 5% cash back at different places every quarter. So, these are establishments like gas stations, grocery stores, restaurants, Amazon.com, or wholesale clubs. But this is up to the quarterly maximum each time you activate. Plus, automatically earn unlimited 1% cash back on all other purchases.

You will get an unlimited dollar-for-dollar match of all the cash back you have gotten at the end of your first year, automatically.

Get it here: https://www.discover.com/credit-cards/cash-back/it-card.html

How to Get Approved for a Business Credit Card and Build Credit

Discover it® Student Cash Back

Be sure to look at the Discover it® Student Cash Back card. It has no annual fee. The card also has a six-month introductory period of 0% APR on purchases. And there is an APR of 14.99 – 23.99% variable on all purchases after that period.

One one-of-a-kind feature is that it offers an incentive for scholars to maintain good grades with a $20 statement credit. If scholars earn a GPA of 3.0 or better each school year, the card will award the $20 statement credit every year for up to five years.

Details

Use this credit card to build personal credit. While this is a personal card versus a company credit card, for new credit users, their FICO scores will matter. And this credit card provides an outstanding way to raise FICO while also getting rewards. Better personal credit can also, often, be the key to unlocking online lending.

You can get 5% cash back at different places each quarter like grocery stores, gas stations, restaurants or Amazon.com up to the quarterly maximum. After that, this credit card offers unlimited 1% cash back on all purchases.

In the first year, all cash back rewards are matched 100%.

Downsides include a cash advance fee of either $10 or 5% of the amount of each cash advance, whichever is more. And although they waive the first late payment fee, a fee of up to $37 applies on all other late payments. There is also a returned payment fee of up to $37.

Get it here: https://www.discover.com/credit-cards/cash-back/it-card.html

How to Get Approved for a Business Credit Card for Cash Back

SimplyCash Plus Business Credit Card from American Express

Look at the SimplyCash Plus Business Credit Card from American Express. There is a $0 yearly fee. And there is a 0% APR on purchases. So this is for the first 15 months an account is open.

But when the introductory period ends, the APR for purchases is 14.24 to 21.24%. So, this is variable and based on creditworthiness.

Details

This credit card has several benefits. These include purchase protection, car rental loss and damage insurance. And they also include a baggage insurance plan, extended warranty coverage and a global assist hotline.

Also, get 5% cash back at US office supply stores and on wireless phone services. So, these must be purchased from US providers. But this pertains to the initial $50,000 of annual spending. Then, you earn 1% cash back.

You also earn 3% cash back on spending category of your choice. So, this is from eight distinct categories. They include airfare, gas, advertising and computer purchases. But it applies to the first $50,000 of annual spending. Then, you earn 1% cash back.

Cash-back bonuses are automatically credited to the customer’s billing statement.

Note: you cannot use this credit card for balance transfers. There is a foreign transaction fee of 2.7%. The credit card charges up to $38 in late fees. And the returned check fee is also $38. The penalty APR is 29.99%.

And, it applies if you have two or more late payments within 12 months. It can also apply if you fail to make the minimum payment on time or have a returned payment.

Get it here: https://www.americanexpress.com/us/small-business/credit-cards/simply-cash-plus-business-credit-card/44279

Capital One® Quicksilver® Card

Check out the Capital One® Quicksilver® Card. It offers flat-rate rewards of 1.5% on all purchases. There are no limits to the amount of cash back rewards that cardholders can earn. Also, the card has a $0 annual fee.

New cardholders have a 0% APR on purchases and balance transfers for the first 15 months after opening the account. And after that they have a 14.74 – 24.74% (variable) APR after that.

A cash bonus of $150 is on offer for those who make at the very least $500 in purchases in 3 months of account opening.

Details

Also, cash back rewards do not expire for the life of the account. And there is no limit to how much you can earn.

This credit card also offers travel accident insurance. And you get an auto rental collision damage waiver. There are no foreign transaction fees. And there is extended warranty coverage.

Downsides are the flat reward rate, not allowing for any more than that. And the higher APR after the first 15 months.

Get it here: https://www.capitalone.com/credit-cards/quicksilver/

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

How to Get Approved for a Business Credit Card for No Yearly Fee/Flat Rate Cash Back

Ink Business Unlimited℠ Credit Card

Check out the Ink Business Unlimited℠ Credit Card. Past no annual fee, get an introductory 0% APR for the initial twelve months. After that, the APR is a variable 14.74 – 20.74%.

You can get unlimited 1.5% Cash Back rewards on every purchase made for your business. And get $500 bonus cash back after spending $3,000 in the initial 3 months from account opening. You can redeem your rewards for cash back, gift cards, travel and more using Chase Ultimate Rewards®. You will need exceptional credit to qualify for this card.

Find it here: https://creditcards.chase.com/business-credit-cards/ink/unlimited

How to Get Approved for a Business Credit Card for Fair to Poor Credit, Not Requiring a Personal Guarantee

Brex Card for Startups

Take a look at the Brex Card for Startups. It has no annual fee.

You will not need to provide your Social Security number to apply. And you will not need to provide a personal guarantee. They will take your EIN.

Nonetheless, they do not accept every industry.

Additionally, there are some industries they will not work with, as well as others where they want more paperwork. For a list, go here: https://brex.com/legal/prohibited_activities/.

To determine creditworthiness, Brex checks a corporation’s cash balance, spending patterns, and investors.

You can get 7x points on rideshare. Get 4x on Brex Travel. Likewise, get triple points on restaurants. And get double points on recurring software payments. Get 1x points on everything else.

You can have poor credit scores (even a 300 FICO) to qualify.

Find it here: https://brex.com/lp/startups-higher-limits/

How to Get Approved for a Business Credit Card for Fair Credit Scores

Capital One® Spark® Classic for Business

Check out the Capital One® Spark® Classic for Business. It has no annual fee. There is no introductory APR offer. The regular APR is a variable 24.49%. You can get unlimited 1% cash back on every purchase for your business, without minimum to redeem.

While this card is within reach if you have average credit scores, beware of the APR. But if you can pay in a timely manner, and completely, then it’s a good deal.

Find it here: https://www.capitalone.com/small-business/credit-cards/spark-classic/

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

How to Get Approved for a Business Credit Card for Luxurious Travel Points

Flat-rate Travel Rewards

Capital One® Spark® Miles for Business

Take a look at the Capital One® Spark® Miles for Business. It has an introductory annual fee of $0 for the first year, which after that rises to $95. The regular APR is 18.49%, variable due to the prime rate. There is no introductory annual percentage rate. Pay no transfer fees. Late fees go up to $39.

This card is wonderful for travel if your costs do not fall under basic bonus categories. You can get unlimited double miles on all purchases, without limits. Get 5x miles on rental cars and hotels if you book with Capital One Travel.

Get an introductory bonus of 50,000 miles. That’s the same as $500 in travel. However you only get it if you spend $4,500 in the initial 3 months from account opening. There is no foreign transaction fee. You will need a good to superb FICO score to qualify.

Find it here: https://www.capitalone.com/small-business/credit-cards/spark-miles/

Bonus Travel Categories with a Sign-Up Offer

Ink Business Preferred℠ Credit Card

For a wonderful sign-up offer and bonus categories, have a look at the Ink Business Preferred℠ Credit Card.

Pay a yearly fee of $95. Regular APR is 17.49 – 22.49%, variable. There is no introductory APR offer.

Get 100,000 bonus points after spending $15,000 in the first 3 months after account opening. This works out to $1,250 toward travel rewards if you redeem via Chase Ultimate Rewards.

Get 3 points per dollar of the initial $150,000 you spend with this card. So this is for purchases on travel, shipping, internet, cable, and phone services. Plus it includes advertising purchases made with social media sites and search engines each account anniversary year.

You can get 25% more in travel redemption when you redeem for travel with Chase Ultimate Rewards. You will need a great to excellent FICO score to qualify.

Find it here: https://creditcards.chase.com/business-credit-cards/ink/business-preferred

No Annual Fee

Bank of America® Business Advantage Travel Rewards World MasterCard® credit card

For no yearly fee while still getting travel rewards, check out this card from Bank of America. It has no yearly fee and a 0% introductory APR for purchases during the first nine billing cycles. After that, its regular APR is 13.74 – 23.74% variable.

You can get 30,000 bonus points when you make a minimum of $3,000 in net purchases. So this is within 90 days of your account opening. You can redeem these points for a $300 statement credit towards travel purchases.

Earn unlimited 1.5 points for each $1 you spend on all purchases, everywhere, every time. And this is no matter how much you spend.

Likewise earn 3 points per every dollar spent when you reserve your travel (car, hotel, airline) through the Bank of America® Travel Center. There is no limit to the number of points you can earn and points don’t expire.

You will need outstanding credit scores to get this one (as in, 700s or better).

Find it here: https://www.bankofamerica.com/smallbusiness/credit-cards/products/travel-rewards-business-credit-card/

Hotel Credit Card

Marriott Bonvoy Business™ American Express® Card

Have a look at the Marriott Bonvoy Business™ Card from American Express. It has an annual fee of $125. There is no introductory APR offer. The regular APR is a variable 17.24 – 26.24%. You will need good to outstanding credit to get this card.

Points

You can get 75,000 Marriott Bonvoy points after using your card to make purchases of $3,000 in the first three months. Get 6x the points for qualified purchases at participating Marriott Bonvoy hotels. You can get 4x the points at US restaurants and gasoline stations. And you can get 4x the points on wireless telephone services purchased straight from US service providers and on US purchases for shipping.

Get double points on all other qualified purchases.

Rewards

Plus, you get a free night each year after your card anniversary. And you can earn an additional free night after you spend $60,000 on your card in a calendar year.

You get Marriott Bonvoy Silver Elite status with your Card. Also, spend $35,000 on eligible purchases in a calendar year and earn an upgrade to Marriott Bonvoy Gold Elite status through the end of the following calendar year.

Plus, each calendar year you can get credit for 15 nights towards the next level of Marriott Bonvoy Elite status.

Find it here: https://creditcard.americanexpress.com/d/bonvoy-business/

How to Get Approved for a Business Credit Card for Cash Back

Flat-Rate Rewards

Capital One ® Spark® Cash for Business

Have a look at the Capital One® Spark® Cash for Business. It has an introductory $0 annual fee for the initial year. Afterwards, this card costs $95 annually. There is no introductory APR offer. The regular APR is a variable 18.49%.

You can get a $500 one-time cash bonus after spending $4,000 in the initial three months from account opening. Get unlimited 2% cash back. Redeem any time without any minimums.

You will need good to exceptional credit to qualify.

Find it here: https://www.capitalone.com/small-business/credit-cards/spark-cash/

Flat-Rate Rewards and No Yearly Cost

Discover it® Business Card

Check out the Discover it® Business Card. It has no yearly fee. There is an introductory APR of 0% on purchases for year. After that the regular APR is a variable 14.49 – 22.49%.

Get unlimited 1.5% cash back on all purchases, with no category restrictions or bonuses. They double the 1.5% Cashback Match™ at the end of the first year. There is no minimal spend requirement.

You can download transactions| easily to Quicken, QuickBooks, and Excel. Note: you will need good to superb credit scores to receive this card.

https://www.discover.com/credit-cards/business/

Bonus Categories

Ink Business Cash℠ Credit Card

Check out the Ink Business Cash℠ Credit Card. It has no yearly fee. There is a 0% introductory APR for the initial 12 months. After that, the APR is a variable 14.74 – 20.74%. You can get a $500 one-time cash bonus after spending $3,000 in the first three months from account opening.

You can get 5% cash back on the initial $25,000 spent in combined purchases at office supply stores and on net, cable and phone services each account anniversary year.

Get 2% cash back on the initial $25,000 spent in combined purchases at gas stations and restaurants each account anniversary year. Get 1% cash back on all other purchases. There is no limitation to the amount you can get.

You will need outstanding credit to get this card.

Find it here: https://creditcards.chase.com/business-credit-cards/ink/cash?iCELL=61GF

Boosted Cash Back Categories

Bank of America® Business Advantage Cash Rewards MasterCard® credit card

Check out the Bank of America® Business Advantage Cash Rewards MasterCard® credit card. Get an 0% introductory APR for the first 9 billing cycles of the account. After that, the APR is 13.74% – 23.74% variable. There is no yearly fee. You can get a $300 statement credit offer.

Get 3% cash back in the category of your choice. So these are gasoline stations (default), office supply stores, travel, TV/telecom & wireless, computer services or business consulting services. Get 2% cash back on dining. So this is for the first $50,000 in combined choice category/dining purchases each calendar year. After that earn 1% after, with no limits.

You will need exceptional credit scores to qualify.

Find it here: https://promo.bankofamerica.com/smallbusinesscards2/

How to Get Approved for a Business Credit Card with Unbeatable Cards for Jackpot Rewards That Never Expire

Capital One® Spark® Cash Select for Business

Take a look at the Capital One® Spark® Cash Select for Business. It has no yearly fee. You can get 1.5% cash back on every purchase. There is no limit on the cash back you can earn. Also earn a one-time $200 cash bonus as soon as you spend $3,000 on purchases in the initial 3 months. Rewards never expire.

Pay a 0% introductory APR for 9 months. Then pay 14.49% – 22.49% variable APR after that.

You will need great to superb credit scores to qualify.

Find it here: https://www.capitalone.com/small-business/credit-cards/spark-cash-select/

How to Get Approved for a Business Credit Card, On Balance

Your outright best business credit cards hinge on your credit history and scores.

Only you can select which features you want and need. So, make sure to do your homework. What is outstanding for you could be disastrous for other people.

And, as always, be sure to build credit in the recommended order for the best, speediest benefits.

The post How to Get Approved for a Business Credit Card appeared first on Credit Suite.

Stunning! It’s the Best Business Credit Cards for Bad Credit

The Best Business Credit Cards for Bad Credit in a Recession Can Be Yours

Want the best business credit cards for bad credit in a recession? Then look no further, for we have got you covered!

Per the SBA, corporate credit card limits are 10 – 100 times those of personal cards! Hence you can get a lot more cash with business credit.

It also means you can have personal charge cards at stores. You can also, now, have a second card at the same stores for your business.

And you will not have to put up collateral, cash flow, or financial information to get small business credit.

Get the Best Business Credit Cards for Bad Credit in a Recession

Brex Card for Startups

Check out the Brex Card for Startups. It has no annual fee.

You will not need to supply your Social Security number to apply. And you will not need to supply a personal guarantee. They will take your EIN.

However, they do not accept every industry.

Also, there are some industries they will not work with, and others where they want more documentation. For a list, go here: https://brex.com/legal/prohibited_activities/.

To determine creditworthiness, Brex checks a business’s cash balance, spending patterns, and investors.

You can get 7x points on rideshare. Get 4x on Brex Travel. Also, get triple points on restaurants. And get double points on recurring software payments. Get 1x points on everything else.

So you can have poor credit (even a 300 FICO) to qualify.

Find it here: https://brex.com/lp/startups-higher-limits/

Check out how our reliable process will help your business get the best business credit cards, even during a recession.

The Best Business Credit Cards for Bad Credit in a Recession and Pay No Annual Fee

No Yearly Fee/Flat Rate Cash Back

Ink Business Unlimited℠ Credit Card

Have a look at the Ink Business Unlimited℠ Credit Card. Beyond no annual fee, get an introductory 0% APR for the initial 12 months. Afterwards, the APR is a variable 14.74 – 20.74%.

You can earn unlimited 1.5% Cash Back rewards on every purchase made for your company. And get $500 bonus cash back after spending $3,000 in the initial 3 months from account opening. You can redeem your rewards for cash back, gift cards, travel and more using Chase Ultimate Rewards®. You will need excellent credit scores to receive this card.

Find it here: https://creditcards.chase.com/business-credit-cards/ink/unlimited

The Best Business Credit Cards for Bad Credit in a Recession and Get a 0% Introductory APR – Pay Absolutely Nothing!

Blue Business® Plus Credit Card from American Express

Have a look at the Blue Business® Plus Credit Card from American Express. It has no yearly fee. There is a 0% introductory APR for the first 12 months. After that, the APR is a variable 14.74 – 20.74%.

Get double Membership Rewards® points on everyday company purchases like office supplies or client suppers for the first $50,000 spent each year. Get 1 point per dollar afterwards.

You will need great to excellent credit scores to qualify.

Find it here: https://creditcard.americanexpress.com/d/bluebusinessplus-credit-card/

American Express® Blue Business Cash Card

Get 2% cash back on all qualified purchases on up to $50,000 per calendar year. Then get 1%.

It has no yearly fee. There is a 0% introductory APR for the first twelve months. After that, the APR is a variable 14.74 – 20.74%.

So you will need great to superb credit scores to qualify.

Find it here: https://creditcard.americanexpress.com/d/business-bluecash-credit-card/

The Best Business Credit Cards for Bad Credit in a Recession and Get Secure Company Credit Cards for Fair Credit

Capital One® Spark® Classic for Business

Check out the Capital One® Spark® Classic for Business. It has no yearly fee. There is no introductory APR offer. The regular APR is a variable 24.49%. You can earn unlimited 1% cash back on every purchase for your company, with no minimum to redeem.

While this card is within reach if you have fair credit, beware of the APR. Yet if you can pay on schedule, and completely, then it’s a bargain.

Find it here: https://www.capitalone.com/small-business/credit-cards/spark-classic/

The Best Business Credit Cards for Bad Credit in a Recession and Get Flexible Financing

The Plum Card® from American Express

Take a look at the Plum Card® from American Express. It has an introductory yearly fee of $0 for the first year. After that, pay $250 each year.

Get a 1.5% early pay discount cash back bonus when you pay within 10 days. You can take up to 60 days to pay without interest when you pay the minimum due by the payment due date.

You will need good to outstanding credit to qualify.

Find it here: https://creditcard.americanexpress.com/d/the-plum-card-business-charge-card/

The Best Business Credit Cards for Bad Credit in a Recession and Earn Unbeatable Cards for Jackpot Rewards That Never Expire

Capital One® Spark® Cash Select for Business

Check out the Capital One® Spark® Cash Select for Business. It has no annual fee. You can get 1.5% cash back on every purchase. There is no limit on the cash back you can get. Also get a one-time $200 cash bonus when you spend $3,000 on purchases in the first three months. Rewards never expire.

Pay a 0% introductory APR for 9 months. Then pay 14.49% – 22.49% variable APR afterwards.

So you will need great to outstanding credit to qualify.

Find it here: https://www.capitalone.com/small-business/credit-cards/spark-cash-select/

Check out how our reliable process will help your business get the best business credit cards, even during a recession.

The Best Business Credit Cards for Bad Credit in a Recession and Get Cash Back

Flat-Rate Rewards

Capital One ® Spark® Cash for Business

Take a look at the Capital One® Spark® Cash for Business. It has an introductory $0 yearly fee for the first year. Afterwards, this card costs $95 annually. There is no introductory APR deal. The regular APR is a variable 18.49%.

You can get a $500 one-time cash bonus after spending $4,000 in the first three months from account opening. Get unlimited 2% cash back. Redeem at any time with no minimums.

So you will need good to superb credit scores to qualify.

Find it here: https://www.capitalone.com/small-business/credit-cards/spark-cash/

Flat-Rate Rewards and No Yearly Cost

Discover it® Business Card

Have a look at the Discover it® Business Card. It has no annual fee. There is an introductory APR of 0% on purchases for 12 months. Then the regular APR is a variable 14.49 – 22.49%.

Get unlimited 1.5% cash back on all purchases, with no category restrictions or bonuses. They double the 1.5% Cashback Match™ at the end of the first year. There is no minimal spend requirement.

You can download transactions| easily to Quicken, QuickBooks, and Excel. Note: you will need great to superb credit scores to get approval for this card.

https://www.discover.com/credit-cards/business/

Bonus Categories

Ink Business Cash℠ Credit Card

Have a look at the Ink Business Cash℠ Credit Card. It has no yearly fee. There is a 0% introductory APR for the first twelve months. Afterwards, the APR is a variable 14.74 – 20.74%. You can get a $500 one-time cash bonus after spending $3,000 in the initial three months from account opening.

You can get 5% cash back on the first $25,000 spent in combined purchases at office supply stores and on internet, cable, and phone services each account anniversary year.

Get 2% cash back on the first $25,000 spent in combined purchases at filling stations and restaurants each account anniversary year. Get 1% cash back on all other purchases. There is no limitation to the amount you can get.

So you will need outstanding credit scores to get approval for this card.

Find it here: https://creditcards.chase.com/business-credit-cards/ink/cash?iCELL=61GF

Boosted Cash Back Categories

Bank of America® Business Advantage Cash Rewards MasterCard® credit card

Take a look at the Bank of America® Business Advantage Cash Rewards MasterCard® credit card. Get an 0% introductory APR for the initial 9 billing cycles of the account. Afterwards, the APR is 13.74% – 23.74% variable. There is no yearly fee. You can get a $300 statement credit offer.

Get 3% cash back in the category of your choice. So these are gas stations (default), office supply stores, travel, TV/telecom & wireless, computer services or business consulting services. Get 2% cash back on dining. So this is for the first $50,000 in combined choice category/dining purchases each calendar year. Then get 1% after, with no limits.

You will need exceptional credit to qualify.

Find it here: https://promo.bankofamerica.com/smallbusinesscards2/

Check out how our reliable process will help your business get the best business credit cards, even during a recession.

Your Choice: The Best Business Credit Cards for Bad Credit in a Recession

Your absolute best way to get the business credit cards for bad credit in a recession will hinge on your credit history and scores.

Only you can select which features you want and need. So make sure to do your homework. What is excellent for you could be catastrophic for others.

And, as always, make sure to develop credit in the recommended order for the best, speediest benefits. So you can get the best business credit cards for bad credit in a recession – and beyond. The economy is not going to be in trouble forever.

The post Stunning! It’s the Best Business Credit Cards for Bad Credit appeared first on Credit Suite.

Bad Credit in a Recession? You can get Business Cards and Build Credit

Do you have bad credit in a recession? You can get business cards and build credit – so don’t worry. Yes, even in a bad economy. And this is true no matter what happens with COVID-19.

Don’t Let Bad Credit in a Recession Get You Down

Per the SBA, small business credit card limits are a whopping 10 – 100 times that of personal credit cards!

This reveals you can get a lot more cash with business credit. And it also means you can have personal credit cards at stores. So you would now have an added card at the same retail stores for your company.

And you will not need collateral, cash flow, or financials in order to get small business credit.

Credit Card Benefits

Benefits can vary. So, make certain to pick the perk you like from this choice of options.

Bad Credit in a Recession? Get Trustworthy Credit Cards for Fair to Poor Credit, Not Calling for a Personal Guarantee

Brex Card for Startups

Check out the Brex Card for Startups. It has no yearly fee.

You will not need to provide your Social Security number to apply. And you will not need to supply a personal guarantee. They will take your EIN.

Nonetheless, they do not accept every industry.

Likewise, there are some industries they will not work with, as well as others where they want more documentation. For a list, go here: https://brex.com/legal/prohibited_activities/.

To determine creditworthiness, Brex checks a business’s cash balance, spending patterns, and investors.

You can get 7x points on rideshare. Get 4x on Brex Travel. Likewise, get triple points on restaurants. And get double points on recurring software payments. Get 1x points on everything else.

You can have bad credit scores (even a 300 FICO) to qualify.

Find it here: https://brex.com/lp/startups-higher-limits/

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

Bad Credit in a Recession? Get Corporate Credit Cards for Fair Credit Scores

Capital One® Spark® Classic for Business

Take a look at the Capital One® Spark® Classic for Business. It has no annual fee. There is no introductory APR offer. The regular APR is a variable 24.49%. You can get unlimited 1% cash back on every purchase for your company, with no minimum to redeem.

While this card is within reach if you have fair credit scores, beware of the APR. However if you can pay on time, and in full, then it is a bargain.

Find it here: https://www.capitalone.com/small-business/credit-cards/spark-classic/

Exceptional Business Credit Cards with Flexible Financing Credit Cards – Check Out Your Options!

The Plum Card® from American Express

Have a look at the Plum Card® from American Express. It has an introductory yearly fee of $0 for the first year. Afterwards, pay $250 per year.

Get a 1.5% early pay discount cash back bonus when you pay within 10 days. You can take up to 60 days to pay without interest when you pay the minimum due by the payment due date.

You will need good to superb credit scores to qualify.

Find it here: https://creditcard.americanexpress.com/d/the-plum-card-business-charge-card/

Bad Credit in a Recession? Get Company Credit Cards with Jackpot Rewards That Never Expire

Capital One® Spark® Cash Select for Business

Have a look at the Capital One® Spark® Cash Select for Business. It has no annual fee. You can get 1.5% cash back on every purchase. There is no limit on the cash back you can earn. Also get a one-time $200 cash bonus when you spend $3,000 on purchases in the first three months. Rewards never expire.

Pay a 0% introductory APR for 9 months. Then pay 14.49% – 22.49% variable APR afterwards.

You will need great to outstanding credit scores to qualify.

Find it here: https://www.capitalone.com/small-business/credit-cards/spark-cash-select/

Bad Credit in a Recession? Get Business Credit Cards with a 0% Introductory APR – Pay Zero!

Blue Business® Plus Credit Card from American Express

Have a look at the Blue Business® Plus Credit Card from American Express. It has no annual fee. There is a 0% introductory APR for the first year. Afterwards, the APR is a variable 14.74 – 20.74%.

Get double Membership Rewards® points on day to day business purchases like office supplies or client dinners for the initial $50,000 spent annually. Get 1 point per dollar afterwards.

You will need good to outstanding credit scores to qualify.

Find it here: https://creditcard.americanexpress.com/d/bluebusinessplus-credit-card/

American Express® Blue Business Cash Card

Get 2% cash back on all eligible purchases on up to $50,000 per calendar year. Then get 1%.

It has no annual fee. There is a 0% introductory APR for the first year. After that, the APR is a variable 14.74 – 20.74%.

You will need good to superb credit scores to qualify.

Find it here: https://creditcard.americanexpress.com/d/business-bluecash-credit-card/

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

Bad Credit in a Recession? Get Terrific Cards for Cash Back

Flat-Rate Rewards

Capital One ® Spark® Cash for Business

Take a look at the Capital One® Spark® Cash for Business. It has an introductory $0 annual fee for the initial year. Afterwards, this card costs $95 each year. There is no introductory APR offer. The regular APR is a variable 18.49%.

You can get a $500 one-time cash bonus after spending $4,000 in the initial three months from account opening. Get unlimited 2% cash back. Redeem any time with no minimums.

You will need good to excellent credit to qualify.

Find it here: https://www.capitalone.com/small-business/credit-cards/spark-cash/

Flat-Rate Rewards and No Yearly Cost

Discover it® Business Card

Have a look at the Discover it® Business Card. It has no annual fee. There is an introductory APR of 0% on purchases for year. After that the regular APR is a variable 14.49 – 22.49%.

Get unlimited 1.5% cash back on all purchases, with no category restrictions or bonuses. They double the 1.5% Cashback Match™ at the end of the first year. There is no minimal spend requirement.

You can download transactions| easily to Quicken, QuickBooks, and Excel. Note: you will need great to outstanding credit to get approval for this card.

https://www.discover.com/credit-cards/business/

Bonus Categories

Ink Business Cash℠ Credit Card

Take a look at the Ink Business Cash℠ Credit Card. It has no yearly fee. There is a 0% introductory APR for the initial year. Afterwards, the APR is a variable 14.74 – 20.74%. You can get a $500 one-time cash bonus after spending $3,000 in the first three months from account opening.

You can get 5% cash back on the initial $25,000 spent in combined purchases at office supply stores and on internet, cable and phone services each account anniversary year.

You will need superb credit scores to get approval for this card.

Find it here: https://creditcards.chase.com/business-credit-cards/ink/cash?iCELL=61GF

Boosted Cash Back Categories

Bank of America® Business Advantage Cash Rewards MasterCard® credit card

Get 3% cash back in the category of your choice. So these are gas stations (default), office supply stores, travel, TV/telecom & wireless, computer services or business consulting services. Get 2% cash back on dining. So this is for the initial $50,000 in combined choice category/dining purchases each calendar year. After that get 1% after, with no limits.

You will need outstanding credit scores to qualify.

Find it here: https://promo.bankofamerica.com/smallbusinesscards2/

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

Bad Credit in a Recession? Get Company Credit Cards for Luxurious Travel Points

Flat-rate Travel Rewards

Capital One® Spark® Miles for Business

This card is wonderful for travel if your costs don’t fall into basic bonus categories. You can get unlimited double miles on all purchases, without any limits. Earn 5x miles on rental cars and hotels if you book with Capital One Travel.

Get an initial bonus of 50,000 miles. That’s the same as $500 in travel. But you just get it if you spend $4,500 in the initial 3 months from account opening. There is no foreign transaction fee. You will need a great to exceptional FICO rating to qualify.

Find it here: https://www.capitalone.com/small-business/credit-cards/spark-miles/

Bonus Travel Categories with a Sign-Up Offer

Ink Business Preferred℠ Credit Card

For a great sign-up offer and bonus categories, check out the Ink Business Preferred℠ Credit Card.

Pay an annual fee of $95. Regular APR is 17.49 – 22.49%, variable. There is no introductory APR offer.

Get 100,000 bonus points after spending $15,000 in the initial three months after account opening. This works out to $1,250 toward travel rewards if you redeem via Chase Ultimate Rewards.

Get three points per dollar of the first $150,000 you spend with this card. So this is for purchases on travel, shipping, internet, cable, and phone services. Plus it includes advertising purchases made with social media sites and search engines each account anniversary year.

You can get 25% more in travel redemption when you redeem for travel using Chase Ultimate Rewards. You will need a great to outstanding FICO score to qualify.

Find it here: https://creditcards.chase.com/business-credit-cards/ink/business-preferred

No Yearly Fee

Bank of America® Business Advantage Travel Rewards World MasterCard® credit card

For no yearly fee while still getting travel rewards, have a look at this card from Bank of America. It has no annual fee and a 0% introductory APR for purchases during the first 9 billing cycles. After that, its regular APR is 13.74 – 23.74% variable.

You can get 30,000 bonus points when you make at least $3,000 in net purchases. So this is within 90 days of your account opening. You can redeem these points for a $300 statement credit towards travel purchases.

Get unlimited 1.5 points for every $1 you spend on all purchases, everywhere, every time. And this is despite how much you spend.

Likewise get 3 points per every dollar spent when you schedule your travel (car, hotel, airline) via the Bank of America® Travel Center. There is no limit to the number of points you can earn and points do not expire.

You will need superb credit scores to get this one (as in, 700s or better).

Find it here: https://www.bankofamerica.com/smallbusiness/credit-cards/products/travel-rewards-business-credit-card/

Hotel Credit Card

Marriott Bonvoy Business™ American Express® Card

Have a look at the Marriott Bonvoy Business™ Card from American Express. It has a yearly fee of $125. There is no introductory APR offer. The regular APR is a variable 17.24 – 26.24%. You will need great to superb credit scores to get this card.

Points

You can get 75,000 Marriott Bonvoy points after using your card to make purchases of $3,000 in the initial 3 months. Get 6x the points for qualified purchases at participating Marriott Bonvoy hotels. You can get 4x the points at United States restaurants and filling stations. And you can get 4x the points on wireless telephone services purchased directly from American service providers and on American purchases for shipping.

Get double points on all other qualified purchases.

Rewards

Plus, you get a free night every year after your card anniversary. And you can get one more free night after you spend $60,000 on your card in a calendar year.

You get Marriott Bonvoy Silver Elite status with your Card. Plus, spend $35,000 on eligible purchases in a calendar year and get an upgrade to Marriott Bonvoy Gold Elite status through the end of the next calendar year.

Also, each calendar year you can get credit for 15 nights towards the next level of Marriott Bonvoy Elite status.

Find it here: https://creditcard.americanexpress.com/d/bonvoy-business/

The Perfect Business Credit Cards for You (Even With Bad Credit in a Recession)

Your absolute best business credit cards hinge on your credit history and scores, even if you have bad credit in a recession.

Only you can select which features you want and need. So be sure to do your homework. What is excellent for you could be disastrous for another person.

And, as always, be sure to develop credit in the recommended order for the best, quickest benefits. The COVID-19 situation will not last forever.

The post Bad Credit in a Recession? You can get Business Cards and Build Credit appeared first on Credit Suite.

Best Business Insurance

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Every business needs insurance. Depending on your business type and industry, some of you will need more protection than others.

Without insurance, you could be liable for potentially hundreds of thousands or even millions of dollars.

What happens if one of your vehicles is involved in an accident? How will you pay for the damages of a fire or flood in your office? What if an employee or customer slips and falls on your property?

You need to have insurance, or you’ll be paying these costs out of pocket.

But finding the best business insurance package for your organization can be tricky. On the one hand, you want to make sure that you’re covered, but on the other, you don’t want to overpay on premiums.

The best way to start your search is by choosing a reputable business insurance provider—I’ve narrowed down the top business insurance companies in this guide.

How to Choose the Best Business Insurance For You

There is no “one-size-fits-all” plan for business insurance. Every organization is unique, so you’ll need custom protection based on your needs. Certain insurance providers are definitely better for specific types of insurance, as well as other factors.

As you’re browsing and getting quotes from different providers, make sure you keep the following considerations in mind:

Industry

Some insurance providers have more experience covering businesses within certain industries.

For example, a restaurant would have very different insurance needs from a construction company. A dental practice won’t have the same needs as an ecommerce website. You get the idea.

So as you’re evaluating a potential provider, take a look at their existing clients and industries served. Do they have experience covering businesses in your industry? If not, look elsewhere.

Customer Service

If you have to submit a claim, you want to make sure that your insurance provider has your back. When you pick up the phone, will someone answer?

Any delay in the claims process will cost your business money. Let’s say there is a flood at your retail storefront. If your insurance company drags their feet, you might not be able to re-open. How soon will someone come to evaluate the property? How quickly can they approve a contractor to repair the damages?

Choose an insurance company that will go the extra mile to serve your business in times when you need their help the most—that’s what you’re paying them for.

Reputation of Provider

There are literally thousands of insurance companies in the United States. Some are brand new, some have been around since the inception of insurance, and many fall somewhere in between.

In most cases, I prefer to go with an older insurance company with a long-standing reputation. These providers have seen it all, and they’ve survived the test of time. You run some risk if you go with a newer company. Let’s say you have some obscure or rare situation with a claim. It could be a first for a new company, and they might not know how to handle it.

Coverage Options

We’ll talk about the different types of business insurance in greater detail shortly. But in a perfect world, you’d like to get all of your business insurance coverage under one roof.

Getting property insurance from one provider, vehicle insurance from another, and general liability from a third company is just too confusing. So look for an insurance company that has a wide array of coverage options that accommodate your needs.

Premiums

Getting proper coverage is obviously important, but how much is this going to cost you?

If you choose the cheapest plan you can find, you’ll probably be exposed to some more out of pocket costs. But if you choose the most expensive plan on the market, do you actually need all of that coverage?

Look for a balance between these two extremes. When it comes to insurance, I typically like to be a bit more conservative. I’d rather overpay a little bit than risk not being fully covered. But this all depends on your individual risk tolerance.

The Different Types of Business Insurance

There are dozens of different business insurance types. But for the purposes of this guide, I’m going to focus on the ones that are the most common and applicable to the masses.

General Liability Insurance

General liability coverage protects you from risks like bodily injuries and property damage. This typically includes medical payments if someone is hurt on your company’s property. General liability can also protect you from lawsuits related to things like libel, slander, privacy violations, copyright infringement, wrongful evictions, and more.

Most businesses will need some type of general liability coverage.

Professional Liability Insurance

Professional liability and general liability are often confused with each other, although the two are not one in the same.

Professional liability insurance is also referred to as errors and omissions (E&O) insurance. This protects businesses sued by clients claiming damages for professional services that you provide. Things like an accountant making a mistake on a tax return or a web developer making mistakes on a site that they manage would be examples where professional liability insurance is necessary.

BOP Insurance

Business owners insurance (better known as BOP) is a policy that combines liability and property into one package. It’s very common for small and mid-sized business owners across a wide range of industries. Most contractors will carry some form of BOP insurance as well.

BOP packages do not cover your employees—it’s specific to business owners.

Workers’ Compensation Insurance

Once you hire your first employee, workers’ compensation should be immediately added to your business insurance policy. Most states require workers’ comp insurance by law.

The coverage pays for things like medical expenses and disability for employees who were injured on the job. This could include minor slip and fall injuries to long-term conditions (like carpal tunnel) or even death.

Business Interruption Insurance

This type of insurance will protect your company if your operations are interrupted during some type of disaster or catastrophic event. Organizations with physical locations that could lose income due to these types of interruptions can benefit from a business interruption policy.

Your business can be compensated for lost income in these types of scenarios.

Vehicle Insurance

This type of business insurance policy is pretty-self explanatory. Just like you need insurance for your personal vehicle, you’ll need to cover any vehicles used for business purposes. If an accident occurs with one of your vehicles (whether you’re driving or not), you’ll need this type of coverage.

Property Insurance

Whether you own or lease physical space, you need to have property insurance. Again, it’s similar to the type of insurance you’d have to protect your home or apartment.

This type of insurance will protect your business from events like fires or theft. Your equipment, inventory, furniture, etc. should all be covered in this policy. However, it’s worth noting that some types of natural disasters, like earthquakes, aren’t always covered in a standard property insurance policy. You might have to pay extra for this type of coverage, depending on your area and the insurance provider.

Product Liability Insurance

If your company manufactures products that are sold to the general public, you must have product liability insurance. This coverage will protect your company from lawsuits related to damages caused by your products.

For example, if someone is injured using one of your products, they could sue your company directly for their medical expenses. That’s when product liability insurance would kick in.

#1 – Chubb Review — Most Versatile Business Insurance Packages

Chubb is one of the most reputable business insurance providers on the market today. They are known for exceptional customer service.

This provider has a wide range of plans for small businesses, commercial insurance, industry-specific policies, and more.

Compared to other insurance providers on the market, Chubb has one of the most extensive coverage portfolios that you can find. Some examples of these policy categories include:

Accident and health
General liability
Cyber insurance
Environmental packages (premises pollution liability and contractor pollution liability)
International insurance packages
Management liability
Inland and ocean marine
Product recall liability
Professional liability
Workers’ compensation

Chubb has over 200 years of experience in the business insurance space. Just be aware that their premiums tend to be a bit higher than other options—but you’re paying for the best.

#2 – CNA Review — The Best Custom Business Insurance Plans

CNA is another reputable provider in the business insurance world. They have 120+ years of expertise in this field.

With CNA, you’ll benefit from a custom insurance package to help manage your risks and liabilities.

There are certain industries that CNA has the most experience working with; these include construction, education, manufacturing, healthcare, real estate, wholesale, technology, professional services, finance, and more.

Here’s a quick glance at some of the types of business insurance offered by CNA:

Workers’ compensation insurance
Professional liability insurance (errors and omissions)
Property insurance
Commercial auto insurance
Business interruption insurance
General liability insurance
Equipment breakdown insurance

I like CNA because you can pick and choose which types of coverage you need, and get them bundled into a single policy that’s custom fit to your needs.

#3 – Hiscox Review — Best For Small Business Insurance

Hiscox is my top recommendation for small business owners. Their policies are affordable, while still providing you with enough coverage to protect your organization from a wide range of potential scenarios.

When I say that Hiscox is great for small businesses, I mean ALL small businesses. They’re currently providing protection to organizations in 180+ different industries.

The list of coverage types offered by Hiscox isn’t quite as extensive as some of the other options on the market today. But they still have more than enough options to accommodate the needs of most businesses.

General liability insurance for small business
Professional liability (E&O) insurance for small business
Business owners policy (BOP) for small business
Short-term liability insurance for small business
Cyber insurance for small business
Workers’ comp for small business
Commercial auto insurance for small business
Umbrella insurance for small business
Employment practices liability insurance for small business

Hiscox is an established name in the business insurance world. They’ve been around since 1901 and insure 300,000+ small businesses across the US.

#4 – Insureon Review — Best Business Insurance Marketplace

Technically speaking, Insureon isn’t actually an insurance provider; it’s an online marketplace for business insurance.

But this robust platform definitely deserves a spot on my list. Insureon is super easy to use, and it’s the best way to compare coverage options from different providers in a single place.

If you’re looking to get the best possible rate, I strongly recommend Insureon. Otherwise, you’d have to get quotes from different providers individually, which is much more of a hassle.

Insureon allows you to compare free quotes from some of the top-rated and well-known business insurance providers on the market today (including some of the options on our list).

Travelers
Chubb
Hiscox
Hannover
The Hartford
Liberty Mutual
AmTrust Financial

The list goes on and on. You can browse policies for professional liability insurance, cyber liability insurance, BOP policies, general liability insurance, commercial property insurance, workers’ compensation insurance, and more.

Insureon is typically geared toward smaller businesses. But it’s used across a wide range of different industries.

#5 – Progressive Review — The Best For Commercial Auto Insurance

Progressive is an industry leader in the commercial auto coverage space.

With 45+ years of experience, they aren’t quite as old as some other players in the industry. However, Progressive is definitely a well-established and trustworthy provider for commercial auto policies.

Here’s a list of some common types of business vehicles insured by Progressive:

Buses
Limousines
Trucks
Vans
Landscaping vehicles
Tow trucks
Box trucks
Snow plows
Sports utility vehicles (for hauling cargo and transporting products)
Pickup trucks
Trailers

It’s worth noting that there are certain types of vehicles that Progressive will NOT insure. This includes emergency vehicles (like fire trucks and ambulances), golf carts, double-decker buses, monster trucks, race cars, wheelchair buses, and a few others.

In addition to the commercial policies, Progressive also has coverage for general liability, BOP, professional liability, workers’ comp, and more.

#6 – The Hartford Review — The Best For Workers’ Comp

For those of you who don’t know, Hartford, Connecticut is known as the “insurance capital of the world.” So it’s no surprise to see The Hartford (named for its headquarters’ namesake) on our list.

This company was founded more than two centuries ago, back in 1810. To say they are a well-established name in the business insurance industry would be a drastic understatement.

The Hartford has an extensive list of product offerings for business insurance. Some of their most popular policies include:

Business owners’ policy (BOP) insurance
General liability insurance
Workers’ compensation insurance
Business income insurance
Commercial auto insurance
Commercial property insurance
Commercial flood insurance
Home-based business insurance
Professional liability insurance
Multinational business insurance

Overall, the workers’ comp coverages provided by The Hartford are second to none. If you want to give your employees the very best protection, look no further than The Hartford.

Summary

In a market saturated with business insurance options, there are really only six choices that I’d consider.

If you choose one of the names reviewed above, you can rest easy knowing that your business is being protected from a well-established and reputable provider.

Be sure to use the methodology I described earlier as you’re shopping around and evaluating different options. That’s the only way to get the best possible business insurance policy for your company.

The post Best Business Insurance appeared first on Neil Patel.

Small Business Fundraising: Let Me Count the Ways

Most people only think of loans when they think about funding a business. Financing is for sure the most common way to do it, but not all financing comes in the form a traditional term loan. Furthermore, there are options that are not even considered financing because you do not have to repay the funds. The truth is, small business fundraising may not look the way you expect it to.

Small Business Fundraising Can Happen in More Ways than You Thin

Small business fundraising can include loans, but it can also include investors, grants, and more. Beyond that, if you do go with financing of some sort, there are other options out there besides traditional banks and credit unions.

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

Small Business Fundraising: Loans

When you think of loans you probably think of traditional loans. These are the most popular, but they are not an option for everyone. There are other types as well.

Traditional Loans

These are loans from traditional banks and credit unions. As a business, your business credit score can help you get some types of funds even if your personal score isn’t awesome. That isn’t necessarily the case with this type of lending however.

With a traditional lender term loan, you are almost always going to have to give a personal guarantee. This means, personal credit will likely weigh heavy on their decision. If your personal credit score isn’t in order, you’ll probably have trouble.

How high does your credit score have to be? Typically, if you have at least a 750 you are in pretty good shape. Sometimes you can get approval with a score of 700+, but the terms will not be as favorable.

If you have awesome business credit, your lender might be more flexible. However, your personal credit score will still play a large role when it comes to terms and interest rate.

These are the most popular choice for small business fundraising because they typically have the best rates and terms. However, they are also the hardest to get.

SBA Loans

SBA loans are traditional bank loans, but they have a guarantee from the federal government. The Small Business Administration, works with lenders to offer small businesses financing solutions that owners may not be eligible for based on their own credit history. Because the government is offering a guarantee, lenders are able to be more flexible when it comes to the owner’s personal credit score.

In fact, it is possible to get an SBA microloan with a personal credit score between 620 and 640. These are very small loans, up to $50,000. They may also require personal collateral.

The trade-off with SBA loans is that the application process is lengthy. There is a ton of paperwork connected with these types of loans.

Here are some of the most popular SBA loan programs.

7(a) Loans

These are federally funded term loans up to $5 million. The funds can be used for expansion, purchasing equipment, working capital and more. Banks, credit unions, and other specialized institutions in partnership with the SBA process these loans and disburse the funds.

This is by far the most popular of the SBA loan programs, and the funds are available for a broad range of projects, from working capital to refinancing debt, and even buying a new business or real estate.

504 Loans

These loans are also available up to $5 million. Funds can buy machinery, facilities, or land. They are generally used for expansion, and private sector lenders or nonprofits process and disburse the money. They work well for commercial real estate purchases especially.

Microloans

Microloans are available in amounts up to $50,000. They work for starting a business, purchasing equipment, buying inventory, or for working capital. Community based nonprofits handle the administration of these programs as intermediaries. Unlike most other SBA loan programs, financing comes directly from the Small Business Administration.

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

SBA Express loans

These loans max out at $350,000. The turnaround for express loans is much faster, with the SBA taking up to 36 hours to give a decision. The application process is shorter also.

SBA CAPLine

There are 4 distinct CAPline programs. The main difference between each is the types of expenses they can fund. Each of them carries a maximum amount of $5 million and an interest rate that ranges from 7% to 10%. Funding can take 45 to 90 days.

The four different programs are:

Seasonal CAPLines

Financing for businesses preparing for a seasonal increase in sales.

Contract CAPLines

Financing for businesses that need funding to fill a contract.

Builder’s CAPLines

Financing for businesses taking on a real estate or construction project.

Working capital CAPLines

Financing for businesses that are struggling with a short-term slump in sales.

SBA Community Advantage Loans

This is a pilot program set to either expire or extend in 2020. It’s designed to promote economic growth in underserved areas and markets. Those that make decisions about debt approval look over factors such as poor credit or low revenue if the business has the potential to stimulate the economy or create jobs in underserved areas.

Private Non-Traditional Loans

These are loans from lenders other than traditional banks and credit unions that offer terms loans. Usually they operate online. The difference between these and traditional lenders is that the loans have looser approval requirements and a much faster application process. Most often you can simply apply online, get approval in as little as 24 hours, and the funds are in your account within 24 to 48 hours after approval. Here are just a few options for this type of small business fundraising.

Funding Circle

If you are looking for a low APR, go with Funding Circle. They have fixed rate term loans and require a credit score of 620 or above. There is no minimum revenue requirement. However, they do require you to be in business for at least 2 years.

OnDeck

OnDeck offers lines of credit and term loans with fixed interest rates. You can get up to $500,000 with a term loan. The minimum FICO they require is 600. In addition, you must have $100,000 minimum annual revenue and be in business for at least one year.

Rapid Finance

With a large selection of financing products that includes term loans, Rapid Finance can be a great option for larger amounts. In addition to term loans, they offer bridge loans, healthcare cash advances, and lines of credit. Terms are from three to six months. Amounts range from $5,000 to $1,000,000. Unfortunately, they do not make their minimum credit score readily available. Still, you can use their quote tool. It will give you an idea of what you qualify for.

StreetShares

StreetShares offers invoice financing, term loans, and lines of credit. There is only a one year time in business requirement. Also, they require less minimum annual revenue than the others at only $25,000. The minimum credit score is 600.

Small Business Fundraising: Other Financing

In addition to term loans, there are other types of financing available for small business fundraising.

Lines of Credit

This is basically the traditional lender’s version of a business credit card. The credit is revolving. That means you only pay back what you use, just like a credit card. Rates are typically much better than a credit card however. The application and approval process is more similar to that of a traditional term loan than a credit card.

If you need revolving credit and can qualify for a term loan, this is the best of the available business money types for you. It is great for bridging cash gaps and covering short term expenses without the high credit card interest rates.

Unlike credit cards, there are no cash back rewards or loyalty points with a line of credit. As a result, some business owners prefer business credit cards despite typically higher rates.

Invoice Factoring

If you are an established business with accounts receivable, you have invoice factoring as an option. This is where the lender buys your outstanding invoices at a premium, and then collects the full amount themselves. You get cash right away, without waiting for your customers to pay the invoices.

This is a good option if you need cash fast, or if you do not qualify for other types of funds. The interest rate varies based on hold old the invoices are. A merchant cash advance is a similar option, in which a lender lends cash based on average daily credit card sales. Repayment is made daily credit card sales as well.

Small Business Fundraising: Crowdfunding

Crowdfunding is a newer option for finding investors. While the average Joe that wants to start a business needs funding, it is not always possible to find one or two large investors. With crowdfunding, you can literally have a “crowd” of investors fund your business $5 and $10 at the time.

There are many crowdfunding sites, but the most popular are Kickstarter and Indiegogo. The platforms are similar but there are some important differences. The most obvious is the timing of when you actually receive the funds that others invest in your company.

Kickstarter requires a preset goal, and you do not receive your funds until you reach your goal. For example, if you set a goal of $20,000 when you start your campaign, you will not receive any money that investors offer up until you reach that $20,000.

Indiegogo also requires a goal. In contrast to Kickstarter, they offer the option to receive funds as you go if you prefer. They also have an option called InDemand. This program allows you to continue raising funds after your original campaign is over without starting a whole new campaign. It is more of an extension of the first one.

There are other crowdfunding sites out there as well. Different ones work better for certain businesses and vendors. To determine which one you might have the most luck with, you will need to do some research. Keep in mind your type of business and the specific business each one appeals too.

Small Business Fundraising: Angel Investors

These are informal investors that generally invest at the start of a company. They typically receive equity in exchange.

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

Angel investing is risky. If a startup fails early on, investors will lose their investments completely. As a result, professionals will look for a defined exit strategy, acquisitions, or initial public offerings (IPOs).

The best way to find angel investors is to ask around. You can also try an angel investors website or network.

Small Business Fundraising: Grants

While grants are less commonly available than other options, they are more common that you probably think. Typically, they are offered by professional organizations. There are some government grants available also. There is stiff competition, but they are definitely worth a shot if you think you may qualify.

While requirements vary from grant to grant, and most are only awarded to a certain number of recipients, they are definitely worth exploring. This is especially true if you fall into one of these basic categories.

Women owned business

Minority owned business

Businesses run by veterans

Businesses in low income areas

There are also some corporations that offer grants in a contest format that do not require much other than that you meet the corporation’s definition of a small business and win the contest.

Small Business Fundraising: Explore All Your Options

When you need to think about small business fundraising, be sure to consider all your options. It may be that traditional loans will work best for you, but that may not be the case at all. Even if you do qualify for loans, why not consider grants and investors as well. It’s free money. Any money you can get that will reduce the amount of debt you have to take on is a good thing.

If you want to expand your opportunities even further, work on the overall fundability of your business. There are things affecting it that you probably don’t even realize can make a difference. There is a lot more to it than just your credit score.

How you set up your business, your business phone number, and even past speeding tickets can indirectly affect fundability. If you work to reduce negative impact and increase positive impact on fundability, you can open the door to even more small business fundraising opportunities.

The post Small Business Fundraising: Let Me Count the Ways appeared first on Credit Suite.

It’s Science-backed With Our Foolproof Research: How to Build a Business Credit Score in a Recession

We Smuggled Out Hidden Information on How to Build a Business Credit Score in a Recession

Our research dynamos can teach YOU how to build a business credit score in a recession! The economy doesn’t have to be perfect to build business credit quickly and effectively.

Building better business credit means that your small business attains opportunities you never assumed it would.

You can get new equipment, bid on real property, and deal with the company payroll. And you can do so even when times are a bit lean. This is specifically helpful in holiday businesses, where you can go for calendar months with simply negligible sales.

Because of this, you ought to tackle building your company credit. Enhance and maintain your scores and you will have these possibilities. Do not, and either you do not get these opportunities, or they will cost you a lot more. And no company owner wants that.

So you need to know what affects your business credit before you can make it better.

How to Build a Business Credit Score in a Recession: Credit History Length Is Vital

This is essentially the length of time your business has been using business credit. Obviously newer businesses will have short credit histories. While there is not too much you can particularly do about that, do not despair.

Credit reporting agencies will also consider your personal credit score and your own history of payments. If your consumer credit is good, and particularly if you have a fairly extensive credit history, then your individual credit can come to the rescue of your company.

So that is, you did not just get your first credit card recently.

Normally the converse is also right. Hence if your individual credit history is poor, then it will have a bearing on your business credit scores. And it will do so until your small business and personal credit can be split up.

How to Build a Business Credit Score in a Recession: Don’t Allow Your Credit Utilization Rate to Harm Your Small business

Your credit utilization rate is just the amount of cash you have on credit. So it is then divided by your total available credit. Lenders in general do not wish to see this exceed 30%. Hence for every $100 in credit, do not borrow more than $30 of that.

If this percent is climbing, you’ll have to spend down and pay off your debts prior to borrowing more.

How to Build a Business Credit Score in a Recession: Your Payment History Truly Matters

Late repayments will affect your company credit score for a good seven years. If you pay your company debts off, as fast as possible, then you can make a very real difference when it relates to your credit scores.

Ensure that you pay promptly. And you will enjoy the rewards of promptness.

Learn more here and get started toward building business credit attached to your company’s EIN and not your SSN. Get money even in a recession!

How to Build a Business Credit Score in a Recession: Your Personal Credit Can Bear upon Your Business Credit

A substandard business year could end up on your personal credit score. And in case your business has not been around for too long, it will directly influence your company credit.

But don’t worry, you can separate them easily. Do so by taking measures to unlink them.

For instance, get credit cards exclusively for your firm. Or open business checking accounts and other bank accounts (or perhaps get a business loan). And then the credit reporting bureaus will begin to address your personal and small business credit independently.

Also, make sure to incorporate. Or at least file a DBA (doing business as) status. You can also pay for your company’s debts with your firm credit card or checking account. And make certain it is the company’s full name on the bill and not your own.

How to Build a Business Credit Score in a Recession: The Credit Reporting Bureaus Can Just Plain Get It Wrong

Just like each organization out there, credit reporting agencies like Equifax and Experian are only as good as their information. If your firm’s name is like another’s, there can possibly be some errors.

So check those reports, and your company report at Dun & Bradstreet, PAYDEX. Remain on top of these reports and contest charges with documentation and clear communications. Do not just let them stay incorrect! You can fix this!

And while you’re at, it you should also be overseeing the credit reporting agency which solely handles personal and not business credit, TransUnion. If you do not know how to pull a credit report, do not fret. It’s easy.

An Alternative – Business Credit!

Business credit is credit in a small business’s name. It doesn’t attach to an owner’s consumer credit, not even if the owner is a sole proprietor and the only employee of the company. Consequently, a business owner’s business and consumer credit scores can be very different.

The Benefits

Since small business credit is independent from individual, it helps to secure a business owner’s personal assets, in the event of a lawsuit or business bankruptcy. Also, with two separate credit scores, a small business owner can get two different cards from the same merchant. This effectively doubles buying power.

Another advantage is that even new ventures can do this. Visiting a bank for a business loan can be a recipe for disappointment. But building business credit, when done the right way, is a plan for success.

Personal credit scores depend upon payments but also additional factors like credit usage percentages. But for business credit, the scores truly only hinge on whether a company pays its bills on time.

Learn more here and get started toward building business credit attached to your company’s EIN and not your SSN. Get money even in a recession!

The Process

Growing business credit is a process, and it does not happen automatically. A business needs to actively work to establish business credit. Nevertheless, it can be done easily and quickly, and it is much more rapid than establishing personal credit scores.

Merchants are a big part of this process.

Doing the steps out of order will result in repetitive denials. No one can start at the top with company credit. For instance, you can’t start with store or cash credit from your bank. If you do you’ll get a rejection 100% of the time.

Business Fundability

A business has to be genuine to lenders and merchants. For that reason, a business will need a professional-looking web site and email address, with site hosting bought from a merchant such as GoDaddy.

And company telephone and fax numbers ought to have a listing on ListYourself.net.

Likewise the company telephone number should be toll-free (800 exchange or comparable).

A business will also need a bank account dedicated solely to it, and it has to have all of the licenses essential for running. These licenses all have to be in the correct, correct name of the small business, with the same business address and phone numbers.

So bear in mind that this means not just state licenses, but possibly also city licenses.

Learn more here and get started toward building business credit attached to your company’s EIN and not your SSN. Get money even in a recession!

Dealing with the Internal Revenue Service

Visit the Internal Revenue Service web site and acquire an EIN for the company. They’re totally free. Select a business entity like corporation, LLC, etc.

A company can get started as a sole proprietor. But they will more than likely wish to change to a kind of corporation or partnership to decrease risk and maximize tax benefits.

A business entity will matter when it comes to taxes and liability in case of a lawsuit. A sole proprietorship means the entrepreneur is it when it comes to liability and taxes. No one else is responsible.

If you operate a small business as a sole proprietor, then at the very least be sure to file for a DBA (‘doing business as’) status.

If you do not, then your personal name is the same as the business name. As a result, you can wind up being directly responsible for all company debts.

Additionally, according to the IRS, by having this structure there is a 1 in 7 possibility of an IRS audit. There is a 1 in 50 chance for corporations! Steer clear of confusion and significantly decrease the chances of an IRS audit at the same time.

Starting Off the Business Credit Reporting Process

Begin at the D&B website and get a cost-free DUNS number. A DUNS number is how D&B gets a company in their system, to produce a PAYDEX score. If there is no DUNS number, then there is no record and no PAYDEX score.

Once in D&B’s system, search Equifax and Experian’s websites for the company. You can do this here. If there is a record with them, check it for correctness and completeness. If there are no records with them, go to the next step in the process.

By doing this, Experian and Equifax will have something to report on.

Trade Lines

First you must establish trade lines that report. This is also called vendor accounts. Then you’ll have an established credit profile, and you’ll get a business credit score.

And with an established business credit profile and score you can start getting revolving store and cash credit.

These types of accounts have the tendency to be for the things bought all the time, like coffee, shipping boxes, outdoor work wear, ink and toner, and office furniture.

But first off, what is trade credit? These trade lines are credit issuers who will give you initial credit when you have none now. Terms are commonly Net 30, instead of revolving.

Hence if you get approval for $1,000 in vendor credit and use all of it, you must pay that money back in a set term, like within 30 days on a Net 30 account.

Details

Net 30 accounts have to be paid in full within 30 days. 60 accounts have to be paid in full within 60 days. In contrast to with revolving accounts, you have a set time when you must pay back what you borrowed or the credit you made use of.

To kick off your business credit profile the right way, you should get approval for vendor accounts that report to the business credit reporting bureaus. As soon as that’s done, you can then use the credit.

Then pay back what you used, and the account is on report to Dun & Bradstreet, Experian, or Equifax.

Not every vendor can help like true starter credit can. These are vendors that will grant an approval with hardly any effort. You also need them to be reporting to one or more of the big three CRAs: Dun & Bradstreet, Equifax, and Experian.

But you may have to apply more than one time to these vendors, and you may need to purchase some things you don’t need, to confirm you are responsible and will pay promptly. Consider giving nonessential things to charitable organizations.

Revolving Store Credit

Once there are 3 or more vendor trade accounts reporting to at least one of the CRAs, progress to revolving store credit. These are service providers such as Office Depot and Staples.

Use the small business’s EIN on these credit applications.

Fleet Credit

Are there more accounts reporting? Then move onto fleet credit. These are businesses like BP and Conoco. Use this credit to purchase fuel, and to repair and take care of vehicles. Make sure to apply using the small business’s EIN.

Cash Credit

Have you been sensibly handling the credit you’ve gotten up to this point? Then move onto more universal cash credit. Keep your SSN off these applications; use your EIN instead.

These are usually MasterCard credit cards. If you have more trade accounts reporting, then these are feasible.

Monitor Your Business Credit

Know what is happening with your credit. Make sure it is being reported and deal with any mistakes ASAP. Get in the practice of checking credit reports. Dig into the specifics, not just the scores.

We can help you monitor business credit at Experian and D&B for 90% less. Update the information if there are errors or the info is incomplete.

Disputing Errors

So, what’s all this monitoring for? It’s to dispute any errors in your records. Errors in your credit report(s) can be corrected. But the CRAs normally want you to dispute in a particular way.

Disputing credit report inaccuracies usually means you send a paper letter with copies of any proofs of payment with it. These are documents like receipts and cancelled checks. Never mail the originals. Always mail copies and retain the original copies.

Disputing credit report mistakes also means you specifically spell out any charges you challenge. Make your dispute letter as clear as possible. Be specific about the problems with your report. Use certified mail so that you will have proof that you mailed in your dispute.

A Word about Building Business Credit

Always use credit sensibly! Don’t borrow more than what you can pay off. Keep an eye on balances and deadlines for repayments. Paying in a timely manner and in full will do more to raise business credit scores than pretty much anything else.

Establishing business credit pays. Great business credit scores help a business get loans. Your lending institution knows the business can pay its debts. They know the business is bona fide.

The small business’s EIN attaches to high scores, and lending institutions won’t feel the need to demand a personal guarantee.

How to Build a Business Credit Score in a Recession: The Takeaways

Once you find out what influences your small business credit score, you are that much nearer to being able to build a business credit in a recession.

Learn more here and get started on how to build a business credit score in a recession.

The post It’s Science-backed With Our Foolproof Research: How to Build a Business Credit Score in a Recession appeared first on Credit Suite.

Best Business Phone Systems

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Phone communication plays a critical role in today’s business landscape. Practically every business, regardless of size or industry, needs to have a business phone system.

This statement holds true for freelancers and single-member LLCs to Fortune 500 enterprises with thousands of employees across multiple locations.

There’s just one problem—finding the best option for your business. With hundreds, if not thousands, of choices to consider, narrowing down the top pick for your business can feel like a daunting task.

Fortunately, I’ve handled all the heavy lifting for you. After spending countless hours researching and testing different business phone systems, I’ve picked the top six that I can recommend with conviction.

The Top 6 Options For Business Phone Systems

How to Choose the Best Business Phone System For You

Before we get into the specifics of reviewing each business phone system, you need to understand the methodology behind my research. There are certain feature sets and considerations that must be evaluated as you’re shopping around for different plans.

Keep these factors in mind as you continue through this guide and read my reviews.

Deployment Method

Generally speaking, there are two main ways to deploy a phone system for your business—cloud or on-premises. Historically speaking, most business phone systems have been on-site. However, cloud systems and VoIP technology have been growing in popularity.

If you don’t want your phone system tied to physical landlines, offices, and specific devices, then cloud deployment is definitely your best option. But if you prefer a more traditional phone line, then on-premises will work just fine for your situation.

Physical Phone Systems

Do you need to purchase physical hardware for your phone system?

Again, if you’re looking for a traditional office phone that’s sitting on a specific desk with a hardwire connection, then you’ll need to buy those phones. In this scenario, it’s usually in your best interest to buy hardware directly from the phone system provider. Hardware is rarely packaged into your plan, so keep that in mind as you’re shopping around. Actual phones, headsets, etc. will cost extra.

The beauty of cloud phone systems is that you can make and receive calls from anywhere. You and your staff can leverage your existing devices for this (laptops, desktops, smartphones, etc.).

Not only will this make your business phone system easily accessible, but it’s also more cost-effective.

User Size and Scalability

How many people will be using your business phone system?

Is it just you? Is it 5-10 people? 500? 5,000? The answer to this question will definitely have an impact on your decision. Certain systems are designed for individuals, while others are made for small teams and small businesses. Alternatively, there are business phone systems designed for huge organizations with thousands of users across multiple locations.

Primary Communication Needs

There are plenty of general-purpose business phone systems. But some are designed with specific use cases in mind.

For example, there are business phone systems for customer support centers, outbound sales, and inbound phone orders. There are even solutions built for internal communication, such as conference calling and video chat.

So determine your primary communication need, then start your search from there.

Plan Features

Lots of business phone systems try to improve their market position by giving you lots of “extras” and features included free in your plan. But these are kind of useless if you’re never actually going to use them.

I’m referring to things like visual voicemail, hold music, automated answering, call forwarding, call attendants, texting, etc. The list goes on and on. These features are either provided all-inclusive with your plan or get offered at tiered pricing levels.

My recommendation is this—don’t pay extra for features you didn’t know existed five minutes ago. Stick to the features you know you’ll use. If you get a few bonus ones, that’s great. But don’t fall victim to great marketing by these providers.

Phone Numbers

Do you want to keep your existing phone number? Are you looking for an 800 number? Vanity number? Toll-free numbers?

Some of you will be looking for all of these; others just want a single line for basic use. Most business phone systems will offer a wide range of different phone number options. But the pricing and offerings vary from provider to provider.

Just know that you might have to pay extra for things like toll-free calling and international phone numbers.

The Different Types of Business Phone Systems

Business phone systems aren’t really a one-size-fits-all product. Most people don’t realize it, but there are actually several different types of phone systems out there. I’ll explain each one in greater detail below to give you a better understanding as you’re shopping around and evaluating plans.

VoIP Phone Systems

Voice over Internet Protocol (VoIP for short) has quickly become one of the most popular types of phone systems for business users. As the name implies, the system is based on an IP connection. Rather than setting up complicated wires and landlines, a VoIP system just uses the same Internet connection that your organization already has.

VoIP systems are generally cost-effective and easy to set up. However, they rely on a strong Internet connection. So if you have spotty service, this won’t really work for your business.

Analog Phone Systems

Analog systems use POTS—plain old telephone service.

Think of a traditional landline phone system. That’s an analog service. It uses copper lines and connections between your system and carrier. As a result, analog phones have exceptional call quality and reliability.

However, analog phones lack the features associated with newer types of phone systems. They’ll still offer basic phone features (hold, mute, call waiting, speaker, speed dial, redial, etc.), but you won’t get too much more. Overall, analog technology is pretty dated.

PBX Phone Systems

PBX stands for “private branch exchange.” This is also referred to as a digital phone system.

It’s common for PBX systems to have an extensive feature list with lots of applications. These solutions are great for businesses that want to customize their phone system with various add-ons and upgrades.

Hybrid Phone Systems

Hybrid phones offer digital and IP functionality. These solutions have been growing in popularity because of their versatility.

Most business owners that purchase a digital phone system lean towards hybrid options. This will give them the opportunity to expand and scale in the future using IP protocols. It’s also common for hybrid systems to include features like fax and email integrations.

To ensure high-quality voice, the hybrid phone system must have a strong network connection. The quality is limited to the type of phone service that’s delivering it. A robust Internet connection is the best way to ensure call quality.

Cloud Phone Systems

The terms “cloud” and “hosted” are often used interchangeably in the world of business phone services. With a cloud system, you likely won’t need any on-site hardware (aside from your existing routers and data switches).

It’s easy for anyone to manage a cloud phone system, including your staff. All of the customization and management can be handled directly from a simple interface offered by your system provider.

The communication on a cloud phone system relies on a third-party data center (from the company you purchased from) and a stable Internet connection.

#1 – Ooma Review — Best Phone Systems For Small Businesses

Ooma offers VoIP phone systems specifically designed for small businesses. The system is easy to set up, and you can make calls from anywhere using the Ooma mobile app or desktop computer app.

You can completely customize your Ooma phone system based on factors like how many employees need a phone, fax connection, conference calling, physical hardware, and more.

Here’s what I like the most about Ooma’s business phone system:

Get the system up and running in less than 15 minutes
Keep your existing number or pick a new one
Easy to set up a 1-800 or toll-free phone number
Features like call recording, virtual extensions, overhead paging, and more
Create “ring groups” (like sales or customer service)

Ooma’s phone system starts at $19.95 per user per month. There are no contracts or hidden fees. You can even get a new phone number for free.

#2 – Freshcaller Review — The Best Business Phone System For Contact Centers

Freshcaller is a bit unique compared to other business phone systems on the market today. This solution is designed specifically for customer support teams.

There are no hardware or download requirements to run Freshcaller. As a cloud-based PBX system, your customer service reps can access the software from anywhere.

40,000+ businesses worldwide trust Freshcaller. If their reputation isn’t enough to convince you, here’s a quick overview of the top features:

Ability to port your numbers or purchase new numbers from 90+ countries
Advanced inbound call routing capabilities
Supervisor controls for conversation monitoring, call queues, and more
Easy to use for remote customer service teams
Smart escalations, call transfers, agent notes, and conferences
Use AI voice bots to engage with your customers

While Freshcaller is definitely geared towards support teams, the phone service could double as a solution for sales representatives as well.

Local phone numbers start at $1 per month, and incoming calls start at $0.016 per minute. You can try Freshcaller free for 21 days.

#3 – Dialpad Review — Best Business Phone System For Remote Teams

Dialpad is another modern business phone solution. This provider leverages cloud technology and VoIP for their phone systems.

Plans start at $15 per user per month, and you can try it free for 14 days.

Dialpad has carved out a niche in the remote work space. A quick visit to their website, and you’ll see #WorkFromAnywhere plastered in big letters on the homepage.

These are some of the reasons why I recommend Dialpad:

Easy to deploy, add users, and change numbers in real-time
Seamless integrations with tools like Zendesk, Salesforce, G Suite, and more
SMS, MMS, and group chat business messaging
Create smart call routing paths to the right sales rep, agent, or operator
Tools for sales, contact centers, and conference calling

More than 70,000 organizations across the globe use Dialpad. So you know that it’s a trustworthy and reliable business phone system.

#4 – RingCentral Review — The Best Business Phone System For Larger Organizations

RingCentral has quickly become one of the most popular service providers in the business communications space. They have a wide range of solutions based on company size, industry, and business needs.

You can use RingCentral for cloud phone systems, video conferencing, remote customer service, contact centers, global expansion, and more.

Used by 400,000+ businesses in nearly every category you can imagine, RingCentral is an industry leader in this space.

Popularity aside, these are some of the other reasons why I like RingCentral so much:

Deploy new users and start scaling in minutes
Auto-receptionist, shared lines, and extensions to ensure you never miss a call
High-quality audio
Ability to switch live calls between mobile and desktop with just one click
Automated visual voicemails
Set up local phone numbers from 200+ area codes
Robust admin portal for dynamic call routing, usage monitoring, and quality control
24/7 customer service from RingCentral’s friendly team of experts

Overall, RingCentral’s extensive feature set is definitely designed for larger teams. They do have plans for small businesses, but most smaller teams don’t need these extra features.

RingCentral starts at $19.99 per user per month. Try before you buy with a 15-day free trial.

#5 – Line2 Review — Best For Individuals and Small Teams

Line2 is exactly what it sounds like. This business phone system makes it easy for anyone to add a second line to their existing phone.

Your new business phone number can easily be managed directly from the Line2 mobile app.

The entire process is as simple as 1, 2, 3—sign up, choose a number, and download the app. That’s it! Now you’ll be able to make and receive business calls from your smartphone without giving away your personal phone number.

Other features worth mentioning include:

In addition to smartphones, Line2 works on Macs, PCs, and tablets
You can continue to add multiple lines as you scale your business
It’s easy to deploy with no hardware or IT requirements
Line2 is always coming out with new calling and messaging features

Overall, the concept behind Line2 is pretty straightforward. It’s perfect for individual users, freelancers, and small business owners.

Plans start at just $9.95 per month with a 30-day money-back guarantee.

#6 – Intermedia Unite Review — The Best All-in-One Business Communication Platform

Intermedia Unite is more than just a PBX business phone system. You’ll also get tools for video conferencing, live chat, file management, and screen sharing.

All of these features are bundled into a fully integrated unified communication and collaboration platform.

If you’re just looking for a basic business phone system, this option probably isn’t for you. But for businesses seeking an all-in-one solution, I can’t really name a better option than Intermedia Unite.

Auto attendant for connecting customers with the right person
Wide range of integrations for building efficient interactions
The system works from the Intermedia Unite mobile app and desktop app
Phone support on pre-configured desk phone devices
Award-winning customer service, 24/7
Admins benefit from custom management tools and actionable analytics

Intermedia Unite pricing starts at $27.99 per month per user. It’s a bargain, considering all of the features you’re getting in this package.

Summary

To say you have lots of options to consider for a business phone system would be a drastic understatement. But by using this guide, you’ll be equipped to make the right decision based on your needs.

In a market that’s saturated with phone systems for businesses, I really only like the six options reviewed above.

So start your search there, and use the buying guide outlined earlier in my guide. This will steer you in the right direction.

The post Best Business Phone Systems appeared first on Neil Patel.

How Business Credit Can Help With Effective Hiring

Effective hiring should be on every business owner’s list.

Here’s What You Need to Know About Effective Hiring and Business Credit

I once spoke with a small business owner who had recently won a multi-million dollar consulting contract with the U.S. government. This contract required him to seriously ramp up his operation with more employees and the additional infrastructure that he would need to accommodate the increase in headcount. A problem most small business owners would like to face, right?

He had a lot of experience working with government contracts. And he was familiar with the payment cycle for the invoices he regularly sent for payment. He knew he would be paid. But he also knew it would take over 30 days. This made it difficult to float all the ramp-up costs with his cash flow.

This is a common challenge faced by many small businesses that need to ramp up to service a new client or meet the demands of a new contract. Fortunately, this business owner could access borrowed capital to meet this short-term need. Fueling growth is a good use case for borrowed capital. His credit profile allowed him to meet the demands of his new government contract without the insurmountable cash flow burden that would have otherwise been required.

Proactively approaching your credit profile today, to turn it into a tool that you can strategically leverage to foster growth when needed—which often means hiring more employees—should be top of mind for every small business owner.

Learn more here and get started with building business credit with your company’s EIN and not your SSN. Get money even in a recession and put it toward more effective hiring!

Building Your Credit Profile into a Strategic Tool

Building a strong credit profile isn’t rocket science. But it isn’t something that just happens either. What’s more, if you have a less than perfect credit profile, it isn’t going to change overnight. Slow and steady wins this race.

For most small business owners in the United States, your personal credit score will be a part of every business creditworthiness conversation so it’s important to understand what lenders see when they look at your personal score. Fortunately, so far as personal credit is concerned, your score is easy to translate. Here is what it means:

Above 800 (excellent)

A credit score of 800 or better puts you in pretty elite company. Borrowers in this range are considered consistently responsible when it comes to managing debt. They have a long history of no late payments. Plus they carry low balances on their personal credit cards. They are considered at low risk of default.

740-799 (very good)

This is considered a very good score and tells lenders you are generally financially responsible when it comes to money and managing your personal credit. Although you may have an occasional late payment, most of the time you make timely payments on your personal loans, credit cards, utility payments, and mortgage. It also indicates that the balances you carry on your personal credit cards are generally low (below 30% of available credit).

670-739 (Good)

If your score falls in the upper part of this range, you are a little better than the average U.S. consumer whose FICO score is around 704. Although this borrower shouldn’t have too much trouble obtaining financing, there will be some options unavailable to them. Although they are unlikely to be offered the same low rates and favorable terms of those with Very Good or Excellent credit.

580-669 (Fair)

Borrowers in this range may have a few dings on their credit history, but no serious delinquencies. It’s still possible to get financing. But it will not be at very competitive rates. There will be limited options.

Under 580 (Poor)

This score represents what could be multiple defaults on different loans from different lenders. It could also represent a bankruptcy, which will remain on your credit report for 10 years. Borrowers with scores this low will have very limited business loan options. They should expect to pay some of the highest rates on business financing if approved. Borrowers with a score in this range should focus on repairing and rebuilding their score.

No Credit

Although there is a difference between Poor Credit and No Credit, the results are similar. When building a personal credit history, don’t be afraid to start small. Make sure you pay your utility bills and meet your other personal financial obligations in a timely manner.

Now that you know what your personal credit score means, you need to know how it’s calculated so you can take the right steps to build or improve your score.

How is My Personal Credit Score Calculated?

Most of the personal credit reporting bureaus base their credit scores on the FICO score. Although if you check your score with different reporting agencies there might be some slight differences, the basis for those scores is all the same. Here is the formula:

35% Comes from Your Payment History

In other words, the single most important thing you can do is to make each and every periodic payment in a timely fashion. Most creditors understand the difficulties people are facing right now. But that doesn’t mean you’ll get a pass. It’s important to stay current. Do not let a debt obligation go 60-, 90-, or 120-days past due.

30% Comes from Your Debt to Credit Ratio

In other words, the ratio of debt you use compared to the amount of credit you have. The credit bureaus don’t like to see maxed out credit accounts. A good rule of thumb is to keep that ratio below 30% (lower is even better). But anything over 50% is a big red flag that will keep your personal credit score in the basement.

15% Comes from the Length of Your Credit History

Lenders are trying to make decisions about what you will do in the future based on what you’ve done in the past. So a longer track record is better than a shorter track record. You’ll probably get some allowance for the first half of 2020. But if you have chronic credit problems dating from before the crisis, you need to get to work on making improvements to your credit habits.

10% Comes from the Type of Credit You Use

For example, credit bureaus look at mortgages, auto loans, credit cards and other revolving debt through a different lens. Creditors want to see a mix of credit. So if the only credit account you have is your mortgage, a little diversification will help your credit score.

10% Comes from New Credit Inquiries

While it’s true that new inquiries can impact your score, the amount of impact is relatively small. That is particularly true if you are consistently current with your payments and aren’t maxing out the limit on your credit cards every month.

Before we talk about how to improve your credit to maximize your ability to access borrowed capital to hire new employees or otherwise ramp up for a new contract, we need to address business credit. What makes it different from personal credit and some of the synergies created by a strong personal credit score and a robust business credit history.

Learn more here and get started with building business credit with your company’s EIN and not your SSN. Get money even in a recession and put it toward more effective hiring!

How is My Business’s Credit Profile Reported?

Like the credit bureaus that report on your personal credit history, there are business credit bureaus that report on your business credit history. They consider how you pay your suppliers, your landlord, your utilities, your business credit cards, and how you may payments on any other business loan or business debt you might have.

With the exception of the FICO SBSS credit score, which is a composite of your personal and business credit used by the SBA to evaluate a loan application, you should consider your business credit as typically a collection of scores, rather than one universal score like your personal score. Every business credit bureau creates this profile differently. So no two business credit reports will look exactly the same. Regardless of how long you’ve been in business, you have a business credit profile that includes detailed information about your business and your business credit history.

Your Business Credit Score is Different

Although your personal score is considered private, your business profile is public to anyone who wants to see it. The basis of your business profile is whether or not the majority of your credit interactions are positive or negative. The goal here is to meet all your business obligations as agreed upon.

Additionally, your credit history is a measurement against other businesses in your industry. And this includes if they are considered more or less risky from a credit perspective. Your history is also compared to other businesses in your region, of your size, and annual revenues. This is to make a recommendation to creditors on your business’s potential creditworthiness.

Improving Your Business Credit Score

Irrespective of personal or business credit, the single most important thing you can do to build a positive profile is to make your periodic payments in a timely manner. If you want to build your credit into a strategic tool you can use to fuel growth, here are 4 things you should start doing today:

Make Sure Your Profile is Accurate

There is a lot of negative credit activity going on right now. Plus, it’s easy to confuse businesses with similar names or addresses. So it’s more important than ever to make sure the things reported about your business are accurate and reflect your credit practices. If you find an error, all the major business credit bureaus have mechanisms to correct the mistakes you can verify.

Keep Your Personal and Business Credit Separate

This can be hard for young businesses that don’t have a lot of business credit yet. But using your personal credit for business credit purposes not only doesn’t help your business profile, it could actually hurt your personal credit score. Since 30% of your personal score comes from how much credit you use compared to how much you have, the higher balances often associated with business expenses can negatively impact your ratios. If you want to keep your personal score as strong as possible, while building your business profile, avoid the temptation to use your personal credit to pay for a business expense.

Establish Trade Credit Accounts with Your Suppliers

This is one of the most underrated ways to build a strong business profile. Most vendors are willing to offer payment terms to their good customers. Although it’s not a business loan, if they report your good credit behavior to the appropriate credit bureaus, this valuable credit will help you build a strong business credit history. This will enable you to borrow when you really need to.

Use the Credit You Need and Stay Current

Businesses large and small leverage borrowed capital to fuel growth and fund other business initiatives like effective hiring of new employees. The biggest thing you can do to build a strong profile is to use the credit you need and make sure you make every periodic payment. Lenders look at your history because they want some assurance that you will make timely payments to them. It helps if they can see you’ve done so in the past.

Learn more here and get started with building business credit with your company’s EIN and not your SSN. Get money even in a recession and put it toward more effective hiring!

Effective Hiring of New Employees Can be Expensive

Effective hiring of new employees often includes expense beyond the addition of another paycheck. For some companies it might be a new computer and workstation. For others it could be something else. Most of these upfront expenses are relatively short term. So many small business owners opt to finance them with either a business credit card or even a small business loan depending on the cost. The business owner I described at the beginning of this article opted for a small business loan.

He had worked to build his credit profile so he could use business financing as a strategic tool when he needed it. So he could borrow the money he needed to ramp up employees and infrastructure to service the new contract. And he could repay the loan once he started to get regular payments from his government contract.

Effective Hiring and Business Credit: Takeaways

As a small business owner accessing borrowed capital has always required a good personal and business credit history. But especially now, many lenders are tightening their qualification requirements tighter than ever. So it will be important to make sure your profile shows you in the best light possible. Of course, it’s no guarantee you’ll get the financing you want. But it will give your business more options to choose from—as well as put your application on the top of the pile.

Ty Kiisel for Credit Suite

The post How Business Credit Can Help With Effective Hiring appeared first on Credit Suite.

Brutal! 5 Ways You Can Get Denied for a Business Loan in a Recession –Your Banker Won’t Tell You About These!

We Smuggled out these Secrets: The 5 Ways You Can Get Denied for a Business Loan in a Recession – Your Banker Will Never Tell You About These

Did you know there are 5 ways you can get denied for a business loan in a recession? And let’s face it, your banker won’t tell you about ANY of them. It is, unfortunately, pretty easy to get a bank loan denial. This is particularly true in recessions. Bank loan money is always tighter.

And not everyone knows how it happens. So read on, and learn the secrets!

A Look at Bank Credit vs. Business Credit

Before going any further, do you know the difference between bank credit and business credit? Business credit is the full and complete amount of money that your small business can get from creditors. This includes leasing companies. It is also suppliers, under what’s called vendor credit.

Bank credit is the full amount of borrowing capacity which a small business can get from the banking system only.

What are Bank Credit Scores?

Even during a recession, a small business can get more business credit quickly, so long as it has two things.

One, it must have at least one bank reference. And two, it has to have an average daily account balance of at least $10,000. And that has to be for the most recent three month time period.

This set up will yield a bank rating of a Low-5. And that means it is an Adjusted Debt Balance of from $5,000 to $30,000.

Lower Ratings

A lower rating, like a High-4, or balance of $7,000 to $9,999 will not necessarily reject the small business’s loan application. However, it will slow down the approval process (in a recession, it could grind to a screeching halt). And a Low-5, we know, is far more likely to be necessary for an approval.

A bank credit rating is the average minimum balance a company maintains in a business bank account over a three month long period.

Hence a $10,000 balance will rate as a Low-5. And a $5,000 balance will rate as a Mid-4. By the same token, a $999 balance will rate as a High-3, etc.

A small business’s chief goal should always be to maintain a minimum Low-5 bank rating. So that means an average $10,000 balance. And they will need to do so for at least three months.

This is because, without at least a Low-5 rating, the majority of banks will operate under the assumption that the business has little to no ability to repay a loan or a business line of credit.

But here is one thing to keep in mind. You will never actually see this number. The bank will just keep this number in its back pocket.

Check out our professional research on bank ratings, the little-known reason why you will – or won’t – get a bank loan for your business during a recession.

The Rating Ranges

The numbers work out to the following ranges:

High-5 – account balance of $70,000 to $99,999
Mid-5 –$40,000 to $69,999
Low-5 –$10,000 to $39,000 (your small business needs this level bank score or better to get loans)
High-4 – $7,000 to 9,999
Mid-4 – $4,000 to $6,999
Low-4 – $1,000 to $-3,999

Bank Credit Problems that can Get Your Business a Denial

There are several ways to get a denial when you want a business loan. Here are the top five.

#1 Way You Can Get Denied for a Business Loan in a Recession

You’ll get a denial if you don’t maintain a minimum balance for at least three months. Since every bank credit cycle is based on the previous three months, a continually seesawing balance should damage your bank credit.

How You Can Fix It

So, what is the remedy? Keep cash in your account, by any means you can. This can be tough in a recession, but it is not impossible.

#2 Way You Can Get Denied for a Business Loan in a Recession

Looking to get a denial? Then don’t bother to assure that your business bank accounts are reported exactly the same way all of your business records are. And they would also have to be with the exact same physical address and phone number.

Sow confusion in this area by changing one and not another, or not correcting an error if there is one. And use a post office box!

Wrong.

How You Can Fix It

So, what is the remedy? Keep your records consistent. Copy and paste whatever you can. Do not chance it by retyping. And as for your location, if you do not want or need a physical office, go with a virtual one. We particularly like Regus and Alliance.

Can’t find any virtual office space nearby or within your budget? Then talk to other area business owners. And find out who they work with.

Check out our professional research on bank ratings, the little-known reason why you will – or won’t – get a bank loan for your business during a recession.

#3 Way You Can Get Denied for a Business Loan in a Recession

To go along with #2, you’ll get a denial if you don’t keep consistent, congruent records. That is, to make sure that every credit agency and trade credit vendor, every record keeper, lists the business name and address the exact same way.

These include record keepers for financial records, income tax, web addresses and e-mail addresses, directory assistance, etc.

No lender is going to stop to consider all of the ways that a business might be listed. That will not happen when they look into the business’ creditworthiness.

Therefore, if they are unable to find what they need easily, they will just deny the application. Or your carefully cultivated credit won’t report to the business credit reporting agencies. So if you want a denial, make sure your records are a mess!

No. Don’t do this.

How You Can Fix It

So, what is the remedy? Again, keep your records as consistent as possible. And if you need to hire someone to help you with this, then be sure to do so. It will be well worth it to get some peace of mind this area.

#4 Way You Can Get Denied for a Business Loan in a Recession

This one happens if you never manage your bank account responsibly. It means that your small business should not avoid writing non-sufficient funds (NSF) checks at all costs.

NSFs will decimate bank ratings.

Non-sufficient-funds checks are something which no business can afford to let happen.

But balancing checkbooks and accounts is so dull anyway. And you’ve got enough money without even making sure, right?

Wrong!

How You Can Fix It

So, what is the remedy? Carefully balance your books and make sure you have enough funds for your transactions.

So this might mean you hire someone with a bookkeeping or accounting background to help you. And that’s a great idea!

Beyond taking care of your business bank accounts, such an employee should be able to help you with the tax implications of pretty much everything that you do. All businesses will have to pay taxes. There are no exceptions to this rule! So why not legally and ethically pay less?

Check out our professional research on bank ratings, the little-known reason why you will – or won’t – get a bank loan for your business during a recession.

#5 Way You Can Get Denied for a Business Loan in a Recession

To add to #4, you’ll get a denial if you don’t add overdraft protection to your bank account as soon as possible, in order to avoid NSFs. But why bother thinking ahead or planning for the future? Everything is going to be great forever, right?

Wrong.

How You Can Fix It

So, what is the remedy? Overdraft protection is a valuable feature. So make sure you can get it. That might mean going to a bank that isn’t right around the corner from you. Or it might mean maintaining a specific minimum balance.

And if it does, then that’s even better. You’ll kill two birds with one stone and also address #1, above.

Bonus: #6 Way You Can Get Denied for a Business Loan in a Recession

Want to get a denial? Then don’t let your business show a positive cash flow. A positive free cash flow is the amount of revenue left over after your company has paid all of its expenses.

So if you really want to get a loan denial from your bank credit, go ahead and treat yourself. And buy whatever’s expensive for your business. And make sure your expenses outstrip your profits.

Because doesn’t every factory deserve plush carpeting in the loading dock?

Wrong.

How You Can Fix It

So, what is the remedy? The cash coming in and leaving your company’s bank account should reflect a positive free cash flow.

When an account shows a positive cash flow it indicates your business is generating more revenue than is used to run the company. That means the bank will feel your business can pay its bills.

Can’t afford to add a lot at a time? That’s okay – long as you are adding something.

In a recession, it’s obviously harder to keep adding to a business bank account. Just … try.

Bonus: #7 Way You Can Get Denied for a Business Loan in a Recession

Banks are highly motivated to lend to a business with consistent deposits. And a business owner must also make regular deposits. So this is in order to maintain a positive bank rating.

The business owner must make a lot of consistent deposits, more than the withdrawals they are making. This is the best way to have and maintain a good bank rating.

If they can do that, then they will have a good bank credit score.

But consistency is the hobgoblin of little minds, right?

Hence depositing whatever, whenever has got to be the best way to handle your company’s bank deposits, right?

Wrong.

How You Can Fix It

So, what is the remedy? Consistency! Showing your bank is dependably and regularly adding funds will go a long way to assuring your bank that your business is credible.

And it’ll assure them that if they loan you money, that you’ll be able to pay them back.

And you’ll maintain your ethics and do so.

There are Many Ways You Can Get Denied for a Business Loan in a Recession

Yes, you can wreck your bank credit these five seven ways. So don’t! If you wreck your bank credit, then you may as well throw in the towel. And in a recession, you just plain can’t afford that.

This is because you’ll also tank your business. And no one wants to see that happen.

Particularly now, in the age of COVID-19, you need to help your business in any way you can.

The post Brutal! 5 Ways You Can Get Denied for a Business Loan in a Recession –Your Banker Won’t Tell You About These! appeared first on Credit Suite.

Brutal! 5 Ways You Can Get Denied for a Business Loan in a Recession –Your Banker Won’t Tell You About These!

Need a business loan in a recession? Beyond the SBA’s PPP program, you should also be looking at lenders outside the SBA’s purview. And you need to make it easier for them to approve your application. We Smuggled out these Secrets: The 5 Ways You Can Get Denied for a Business Loan in a Recession … Continue reading Brutal! 5 Ways You Can Get Denied for a Business Loan in a Recession –Your Banker Won’t Tell You About These!