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Tag: Business
5 Ways to Raise Money for Business You May Not Think About
Even with the world going crazy due to the COVID-19 pandemic and the resulting economic downslide, it is possible to raise money for business. The key is to think outside the box and get creative.
Raise Money for Business: Beyond Traditional Loans and Investors
Most often people turn to traditional loans, including SBA loans, and standard investors when they need to raise money for business. In times like these however, those options may not work so well. That means it will be necessary to seek out ways to fund your business you may not have thought of already.
Raise Money for Business: Angel Investors
Angel investors are usually only in for a one-time deal. Many choose to spread their risk out over a lot of people and businesses to be certain they get a safe return on their investment.
Angels tend to be a lot more informal than most types of funding. They can be people you know, or people you connect with through networking or other means.
Angels are not covered by the Securities Exchange Commission’s (SEC) standards for accredited investors. Still, a lot of them are accredited investors anyway.
To become an accredited investor, a person has to have a minimal net worth of $1 million and an annual income of $200,000.
There are a number of angels who aren’t millionaires. They could be friends or colleagues with home equity, or local professionals who are looking to invest.
What frustrates you the most about funding your business during a recession? Check out how our guide can help.
How Do You Find Angel Investors?
The best way to find these kinds of investors is to ask. You can also try an angel investors website or network. Try Gust, which used to be called Angel Soft. They keep a database of investors, companies, and programs. Startups can also search for business plan competitions and more.
Another option is to look at the biggest angel investor groups. Be aware, however, that these meetings are really only going to happen if you can get an introduction.
According to Entrepreneur, in order from smallest to largest the top 10 Angel Investor groups are:
- New York Angels Inc.
- Alliance of Angels (Seattle)
- Pasadena Angels
- Hyde Park Angel Network (Chicago)
- Band of Angels (Menlo Park, CA)
- North Coast Angel Fund (Cleveland)
- Golden Seeds LLC (NYC)
- Investors’ Circle (San Francisco)
- Tech Coast Angels (Los Angeles) and
- Ohio Tech Angel Funds (Columbus, OH)
Focus and requirements may vary from group to group. For example, some concentrate on local startups only. Do your research so you don’t waste yours and the angels’ time if it isn’t a good fit.
Raise Money for Business: Crowdfunding
Crowdfunding sites allow you to pitch your business to thousands of micro investors. Anyone who wants a piece of the action can buy in.
Investors pledge amounts ranging from as low as $5 to as high as they want. They may give $5, $80, $150, or even over $500. As a general rule, they can give as much or as little as they want.
Though not always necessary, most business owners offer rewards for investment. Typically, this comes in the form of the product the business will be selling. Different levels of giving result in different rewards.
Raise Money for Business: Credit Cards
You have to be careful with this one. Many would consider it the easy way out. This is because even with credit that isn’t stellar, credit cards aren’t all that hard to get. They also are not hard to get in trouble with. If you have established business credit, it’s best to use that to get credit cards to raise money for business.
If you do not have business credit, it’s time to fix that. Regardless of the state of the economy, you need business credit to access funding for capital, growth, and expansion. Building business credit can happen even in a recession.
Raise Money for Business: Credit Line Hybrid
A credit line hybrid is revolving, unsecured financing. It allows you to fund your business without putting up collateral, and you only pay back what you use.
What Does it Take to Qualify?
It is not as hard to qualify as you may think. You do need good personal credit. That is, your personal credit score should be at least 685. In addition, you can’t have any liens, judgments, bankruptcies or late payments. Also, in the past 6 months, you should have less than 5 credit inquiries, and you should have less than a 45% balance on all business and personal credit cards. It’s also preferred that you have established business credit as well as personal credit.
What frustrates you the most about funding your business during a recession? Check out how our guide can help.
If you do not meet all of the requirements, all is not lost. You can take on a credit partner that meets each of these requirements. Many business owners work with a friend or relative to fund their business. If a relative or a friend meets all of these requirements, they can partner with you to allow you to tap into their credit to access funding.
Why Is It Such a Great Option?
There are many benefits to using a credit line hybrid. First, it is unsecured, meaning you do not have to have any collateral to put up. Next, the funding is “no-doc.” This means you do not have to provide any bank statements or financials.
Not only that, but typically approval is up to 5x that of the highest credit limit on the personal credit report. Additionally, often you can get interest rates as low as 0% for the first few months, allowing you to put that savings back into your business.
The process is pretty fast, especially with a qualified expert to walk you through it. One other benefit is this. With the approval for multiple credit cards, competition is created. This makes it easier, and likely even if you handle the credit responsibly, that you can get interest rates lowered and limits raised every few months.
Build Business Credit with a Credit Line Hybrid
The key is the approval of multiple business credit cards at once. If your business is set up properly, they will report your on-time payments to the business credit reporting agencies. These include Dun & Bradstreet, Experian, and Equifax mostly, though there are others. Not all of them report to all of the CRAs, but some of them report to at least one. Each account reporting consistent on-time payments helps you build strong business credit.
The Connection Between Business Credit and Fundability
Here is how it works. The fundability of your business is like a huge puzzle. All the pieces fit together, and you have to have all the pieces to see the complete picture. Unlike a puzzle, some pieces are bigger than others, meaning if you are missing those pieces, the impact on your complete fundability picture is bigger. Business credit is the biggest piece of the fundability puzzle.
To begin building business credit, and thus fundability, you first have to set your business up to be a fundability entity apart from yourself.
How to Set Up Your Business to Build Business Credit and Be Fundable
There are a few things you have to do to be sure that your business debts are reported to the business credit reporting agencies and thus your business credit report, not your personal credit report.
Make Sure You Have Separate Contact Information
Your business has to have its own phone number, fax number, and address. You can still run your business from your home or on your computer if that is what you want. There is no need to even have a fax machine.
You can get a business phone number and fax number that will work over the internet instead of phone lines. Also, the phone number will forward to any phone you want. As a result, you can simply use your personal cell phone or landline. Whenever someone calls your business number it will ring straight through.
Faxes can be sent to an online fax service, if anyone ever happens to actually fax you. This part may seem outdated, but it does help your business appear legitimate to lenders.
You can use a virtual office for a business address. How do you get a virtual office? What is that? It’s not what you may think. This is a business that offers a physical address for a fee, and sometimes they even offer mail service and live receptionist services. In addition, there are some that offer meeting spaces for those times you may need to have an in person meeting.
You Need an EIN
Next, get an EIN for your business. This is an identifying number that works for your business the same way your SSN works for you personally. By using an EIN for business transactions, you help ensure your SSN is not associated with your business. That makes it more likely your account will report to your personal credit rather than your business credit. You can get an EIN for free from the IRS.
You Have to Incorporate
Incorporating your business as an LLC, S-corp, or corporation is non-negotiable. First, it lends credence to your business as one that is legitimate. Also, it offers some protection from liability.
Which option you choose does not matter as much for fundability as it does for other things. Your budget and need for liability protection play more into that decision. The best thing to do is talk to your attorney or a tax professional. You will lose the time in business that you already have. When you incorporate, you become a new entity. That means, you basically have to start over. You’ll also lose any positive payment history you may have accumulated.
This is why you have to incorporate as soon as possible. Time in business is also important to building business credit and fundability. The longer you have been in business the more fundable you appear to be. That starts on the date of incorporation, not the date you started doing business.
You Must Open a Separate Business Bank Account
You have to open a separate, dedicated business bank account. There are a few reasons for this. First, it will help you keep track of business finances. It will also help you keep them separate from personal finances for tax purposes.
What frustrates you the most about funding your business during a recession? Check out how our guide can help.
There’s more to it however. There are several types of funding you cannot get without a business bank account. Many lenders and credit cards want to see one with a minimum average balance. In addition, you cannot get a merchant account without a business account at a bank. That means, you cannot take credit card payments. Studies show consumers tend to spend more when they can pay by credit card.
Licenses
For a business to be legitimate it has to have all of the necessary licenses it needs to run. If it doesn’t, red flags are going to fly up all over the place. Do the research you need to do to ensure you have all of the licenses necessary to legitimately run your business at the federal, state, and local levels.
No Matter What the Economy Looks Like, You Will Always Need to Raise Money for Business
As you can see, there are a few ways to raise money for business. The need to do this is not something that comes along just with a recession. With or without the COVID-19 pandemic and resulting economic crash, you would still need funding for your business at some point. If your business is suffering due to the pandemic and needs for social distancing, be sure you take advantage of all that is available. This includes the Paycheck Protection Plan, as well as relief options from the Federal and State governments. Even some businesses and professional organizations are offering help.
The first options mentioned however, including the credit line hybrid, are always available. Be sure you work now to get your fundability and business credit in order. It will serve you well not only in hard economic times, but when the dust settles as well.
The post 5 Ways to Raise Money for Business You May Not Think About appeared first on Credit Suite.
How to Get a Business Credit Card with Bad Personal Credit
Trying to find out how to get a business credit card with bad personal credit? Despite COVID-19?
How to Get a Business Credit Card with Bad Personal Credit
We researched a bunch of company credit cards for you. So, here are our top picks.
Per the SBA, small business credit card limits are a whopping 10 — 100 times that of consumer credit cards!
This shows you can get a lot more cash with business credit. And it also shows you can have personal credit cards at stores. So, you would now have an extra card at the same shops for your business.
And you will not need collateral, cash flow, or financials to get business credit. But you do need to be fundable. And this is even truer as we seem to be sliding right into a recession.
Company Credit Card Benefits
Benefits can differ. So, make certain to pick the benefit you would prefer from this selection of alternatives. Some of our choices call for better to exceptional credit. So, take this time, as we pause and reflect, to improve your credit.
Be Fundable to Get a Business Credit Card with Bad Personal Credit
The best way to get a business credit card with bad personal credit 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.
Establish business credit fast with our research-backed guide to 12 business credit cards and lines. Find out how to get a business credit card with bad personal credit and more.
Website and Email
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. Email must be on your domain.
Business Address and Phone Number
A business address must be a real brick and mortar building. Hence 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.
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.
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.
Establish business credit fast with our research-backed guide to 12 business credit cards and lines. Find out how to get a business credit card with bad personal credit and more.
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.
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.
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 a Business Credit Card with Bad Personal Credit
Capital One® Spark® Classic for Business
Take a look at 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 get unlimited 1% cash back on every purchase for your business, without any minimum to redeem.
While this card is within reach if you have average credit scores, beware of the APR. However if you can pay promptly, and in full, then it’s a bargain.
So find it here: https://www.capitalone.com/small-business/credit-cards/spark-classic/
How to Get a Business Credit Card with Bad Personal Credit, Not Calling for a Personal Guarantee
Brex Card for Startups
Look into 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 provide a personal guarantee. They will take your EIN.
Nonetheless, they do not accept every industry.
Also, there are some industries they will not work with, and others where they want more paperwork. Now for a list, go here: https://brex.com/legal/prohibited_activities/.
To determine creditworthiness, Brex checks a company’s cash balance, spending patterns, and investors.
You can get 7x points on rideshare. So 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.
Plus you can have bad credit (even a 300 FICO) to qualify.
And find it here: https://brex.com/lp/startups-higher-limits/
How to Get a Business Credit Card with a 0% Introductory APR – Pay Zero!
Blue Business® Plus Credit Card from American Express
Check out 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. After that, 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 suppers for the initial $50,000 spent each year. Get 1 point per dollar afterwards.
But you will need good to outstanding credit scores to qualify.
Afterwards, 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. Keep in mind: the American Express® Blue Business Cash Card is identical to the Blue Business® Plus Credit Card from American Express. But its rewards are in cash instead of points.
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 initial 12 months. After that, the APR is a variable 14.74 – 20.74%.
Yet you will need good to outstanding credit to qualify.
So find it here: https://creditcard.americanexpress.com/d/business-bluecash-credit-card/
How to Get a Business Credit Card with Bad Personal Credit 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 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 3 months from account opening. Get unlimited 2% cash back. Redeem any time with no minimums.
But you will need good to superb credit scores to qualify.
After that, find it here: https://www.capitalone.com/small-business/credit-cards/spark-cash/
Flat-Rate Rewards and No Yearly Fee
Discover it® Business Card
Take a look at the Discover it® Business Card. So it has no yearly fee. There is an introductory APR of 0% on purchases for 12 months. 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. Yet there is no minimum spend requirement.
You can download transactions conveniently to Quicken, QuickBooks, and Excel. Note: you will need good to outstanding credit to get this card.
And you can find it here: https://www.discover.com/credit-cards/business/
Establish business credit fast with our research-backed guide to 12 business credit cards and lines. Find out how to get a business credit card with bad personal credit and more.
How to Get a Business Credit Card with Bad Personal Credit for Jackpot Rewards
Capital One® Spark® Cash Select for Business
Have 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. And get a one-time $200 cash bonus once 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 excellent credit to qualify.
But you can find it here: https://www.capitalone.com/small-business/credit-cards/spark-cash-select/
Flexible Financing Credit Cards – Have A Look at Your Options!
The Plum Card® from American Express
Take a look at the Plum Card® from American Express. It has an introductory annual fee of $0 for the first year. After that, pay $250 annually.
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.
But you can find it here: https://creditcard.americanexpress.com/d/the-plum-card-business-charge-card/
How to Get a Business Credit Card with Bad Personal Credit for Luxurious Travel Points
Ink Business Preferred℠ Credit Card
For a fantastic 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 3 months after account opening. This works out to $1,250 toward travel rewards if you redeem through 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. But you will need a good to superb FICO score to qualify.
But you can find it here: https://creditcards.chase.com/business-credit-cards/ink/business-preferred
How to Get a Business Credit Card with Bad Personal Credit for You
The way how to get a business credit card with bad personal credit will hinge on your credit history and scores.
Only you can pick which features you want and need. So, be sure to do your homework. What is outstanding for you could be catastrophic for other people.
And, as always, make certain to build credit in the recommended order for the best, speediest benefits. The COVID-19 situation will not last forever.
The post How to Get a Business Credit Card with Bad Personal Credit appeared first on Credit Suite.
A Business Loan for Every Situation
Are you a startup? Do you have a temporary cash shortage you need to cover? Is your credit not so great, or do you need cash to purchase in bulk? Whatever is going on rest assured, there is pretty much a business loan for every situation. Yes, you can even get a business loan now. Pandemic or no pandemic, you can get business money.
Sometimes a Business Loan Is Not What You Need
Even if, somehow, there isn’t a business loan in the traditional sense to help, there are still options. Sometimes, a traditional business loan isn’t even the right answer. Something else might actually be better.
Going on the assumption that most folks understand what a standard term loan from a traditional lender is, we are going to discuss alternatives to this solution. After all, if you don’t know what’s out there, you’ll never know what might work best for you.
Business Loans and Other Options for Startup
When it comes to starting a business, you can get a business loan if you qualify. There are other options too though.
Check out our best webinar with its trustworthy list of seven vendors to help you build business credit.
Investors
You probably know what investors are. Finding traditional investors for your business involves a number of things. First, you have to find investors with deep enough pockets that are willing to hear your pitch. Then, you have to actually create a pitch, and hope they like it.
Then there are angel investors. They work a little differently. Angels are usually more informal than other investors. They can be people you know. They can be people you connect with through networking or other means. Even your mom can be an angel investor.
Crowdfunding
While the average person that wants to start a business needs funding, it is not always possible to find one or two large investors. With crowdfunding, you can access a lot of investors to fund your business $5 and $10 at the time.
There are many crowdfunding sites. Still, the most popular are Kickstarter and Indiegogo. They are similar to each other. However, there are some major differences as well. The most obvious is the timing of when you get the money that others give your company.
Kickstarter requires you to set a goal first. You do not receive your funds until you reach your goal. For example, if you set a goal of $5,000 when you start your campaign, you will not receive any money that investors offer up until you reach that $5,000.
Indiegogo requires a goal as well. However, they offer the option to receive funds as you go. In addition, they have an option called InDemand. This program lets you keep raising funds even after your original campaign is over. That means you do not have to start a whole new campaign. It’s more like an extension.
There are other crowdfunding sites out there also. Different ones work better for certain businesses and vendors. To figure out which one might work best for your needs, you’ll have to do some research. Keep in mind your type of business and the specific business each one appeals too.
Crowdfunding is a good starting point for a new business. Yet, don’t put all your eggs in this basket. You need a backup plan. Only a small percentage of campaigns are successful. Furthermore, take into account the state of the economy before you rely too heavily on crowdfunding. If it isn’t strong, people will not be as likely to invest.
Business Loans and Other Options for Getting Back on Your Feet
If you are struggling for a season to keep things going, these options could help. Remember though, none of them are a permanent solution. To be successful your business has to eventually support itself. Be sure to use the time these funds may buy you to figure out the problem and how to fix it.
Non-Traditional Business Loans
These are business loans from companies other than banks. Typically, they are referred to as private lenders or alternative lenders. A lot of them have popped up in the past decade as starting your own business has become more popular. A need for financing options from somewhere other than traditional banks has encouraged this growth.
There are a few benefits to using private business loans over traditional loans. The first is that they often have more flexible credit score minimums. Even though they still rely on your personal credit, they will usually accept a score much lower than what traditional lenders require. Another benefit is that they will sometimes report to the business credit reporting agencies. As a result, they can help build or improve business credit if you pay them responsibly.
The tradeoff is that private business loans tend to have higher interest rates and less favorable terms. However, the ability to get funding and the potential increase in business credit score can make it well worth it.
Business Credit Cards
Credit cards often get a bad rap all around. It’s no wonder. If you are irresponsible, they can cause a lot of problems. However, if you handle them properly, they can be an amazing business tool. The thing is, using them to get back on your feet does propose a new set of potential issues. Since most of them come with fairly high interest rates, you need to be especially diligent to find and solve the issues that cause you to need this additional funding.
Grants
While there are not a lot out there, grants are probably more common that you think. Usually, these are offered by professional organizations. There are some government grants available as well. Competition can be tough, but they are definitely worth trying for if you think you may qualify.
Requirements vary from grant to grant. Most are only awarded to a certain number of recipients. If you fit into one of these basic categories however, they are worth considering.
- Businesses in low income areas
There are also some corporations that offer grants in the form of contests. These usually don’t require much other than that you meet the corporation’s definition of a small business and win the contest. For example, FedEx offers such a context each year.
Check out our best webinar with its trustworthy list of seven vendors to help you build business credit.
Business Loans and Other Options for Bridging Cash Gaps
Sometimes you aren’t really down on your luck. You may just have a cash gap that is obviously temporary. Seasonal businesses see this on a regular basis. Another situation that may cause this is that you have some large invoices that just do not get pain fast enough. These things can easily be handled with some of the following tools.
Lines of Credit
The most basic definition of a line of credit is that it is a revolving line of credit, similar to a credit card. You have a limit, but you have access to funds at all times. You only make payments on the portion you use each month.
For example, if you have a $10,000 line of credit, you can use however much of those funds you need each month for whatever you want. That is, unless your lender issues some sort of restriction. Access is most typically granted through checks or a card connected to the line of credit account.
Invoice Factoring
If you are an established business with accounts receivable, invoice factoring is one of the available business funding types that you have access to. This is where the lender buys your outstanding invoices at a premium, and then collects the full amount themselves. You get cash without waiting for your customers to pay the invoices.
This is a good option if you need cash fast. It’s also good if you don’t qualify for other available funding types. The interest rate varies based on the age of the receivables.
Merchant Cash Advance
If you accept credit cards, you may be able to get a merchant cash advance. This is similar to invoice factoring, but instead of buying your open invoices, the lender advances cash based on average expected credit card sales.
Business Credit Cards
Credit cards can help in this instance as well, and they work a lot better here. In the case of a temporary cash gap, you know the money is coming. Using credit to cover a gap temporarily, and maybe collecting some rewards while you do so, isn’t terrible. This is also useful in the discount inventory situation. If you can get a great deal on bulk inventory, you can use a credit card to take advantage and buy at the lower cost. In theory, when you sell this lower cost inventory, you will actually increase your profit.
Open the Door to Any Type of Business Loan and Other Options by Building Great Fundability
Fundability is the ability of your business to get the funding it needs. Highly fundable businesses are able to get business loans quickly and easily. The thing is, few businesses start out fundable. There are many, many factors that affect the fundability of a business. This includes details ranging from something as simple as your business address to things as complicated as liens on your personal record from years ago.
Each and every aspect of fundability is important, and you need to know where you stand with each one. However, one specific piece of the fundability puzzle that is often neglected is business credit. This neglect typically stems from the fact that so few business owners really understand what it is. Many are under the belief that business credit is just debt that is in the business name. That isn’t really the case however.
About Business Credit
Credit cards and loans with your business name on them are still going on your personal credit report unless you take some very specific steps to build separate business credit. First, you have to set up your business to be a separate entity from yourself. Coincidently, this setup process is also what needs to happen to begin building strong business fundability.
Check out our best webinar with its trustworthy list of seven vendors to help you build business credit.
Set Up Your Business to Be Fundable
To set up your business to be fundable you need to ensure you have the following:
- Separate contact information including phone number, address, and email
- EIN
- D-U-N-S number
- Separate bank account
- Business Website
In addition, you absolutely have to incorporate. You can choose to be an LLC, S-corp, or corporation, but you must choose one. Any of them work when it comes to separating business from owner, so talk to your attorney or tax specialist about which option will work best for your business’s other needs.
How to Build Business Credit to Strengthen Fundability
Once you are all set up, you can start to get accounts reporting to your business credit report. You can ask vendors that you already work with if they will extend credit and report payments. They don’t have to, but they might.
You can also ask those companies you already pay monthly, like utilities and rent, to report your payments. Again, they do not have to, but they may.
Another secret to getting accounts reporting is to work with starter vendors. These are certain vendors that will extend net invoices without a credit check, and then report your payments to the business credit reporting agencies. When you get enough of these reporting, your score will be strong enough to apply for store cards like those offered by Best Buy or Office Depot.
After you get enough of those store cards and make on time payments, you’ll be able to get fleet cards like those offered by Shell and Fuelman. After more of those cards are reporting on-time payments, you should be able to get approval for any business cards out there. For example, those standard credit cards that are not tied to where or what you purchase will be an option. These are the credit cards that can really help bridge a cash gap or, as a last resort, help you get back on your feet.
Get a Business Loan – Conclusion
Getting a business loan doesn’t have to be hard. There are options to cover any situation that may come up. The problem is being eligible for the loans that best fit your needs. You need to be aware of non-financing options and which situations they are best suited for as well. Then, if your work to build business credit makes your fundability stronger, you can be sure that eventually you will be able to get funding to fit any situation that may come up.
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How Do I Fund My Business? Your Top Questions Answered
Every entrepreneur asks themselves “How do I fund my business?” Some times it’s “What is the best way to fund my business?” The answers to each are many and varied, and they depend on a number of variables. Specifically, the question right now may be “How do I fund my business during a global pandemic?” We have the answers you seek.
Your Top 4 Questions About How Do I Fund My Business, and The Answers You Need
When asking yourself how do I fund my business, you are likely only thinking of traditional loans and investors. First, it’s important to know that there are other options. That said, loans are the easiest and most reliable, despite the many pitfalls and barriers. This is true even if you have one of the best recession proof businesses around. The need for business funding never goes away. No doubt you are asking yourself what other options you have however, especially if loans are not currently an option.
How Do I Fund My Business without Debt?
Truthfully, taking on debt during the course of running a business is virtually unavoidable. However, there are debt free funding options that you can use to reduce the amount of debt you have to take on. Aside from investors, there are grants and crowdfunding options out there.
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Crowdfunding
With crowdfunding, you don’t have to find just one or two investors that have large sums of money. In fact, you can find a lot of investors to fund your business a few bucks at the time. Honestly, some may kick in as little as $5.
Crowdfunding Platforms
There are many crowdfunding platforms. Yet, they aren’t all the same. You have to check them each out and figure out which one will work best for your business. Here are a few to start with.
Of course, there are other platforms out there, but this is a good list to start with.
Grants
There are not a ton of grants out there compared to other funding options, and competition is stiff. Still, they are an option if you are wondering how to fund my business without debt.
Also, requirements vary from grant to grant. Furthermore, most are only awarded to a certain number of recipients. Despite this, they are still worth looking into 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.
Companies like FedEx and LendingTree have grant contests each year.
How Do I Fund My Business with Bad Credit?
Consequently, If traditional loans are not an option due to bad credit, you might look into private lender options. There are a lot of them, but they aren’t all created equal. You will have to do your research to avoid scams. Also, though all private lender rates are typically higher than their traditional counterparts, you will want to make sure you get the best rate you can. Here is some information to get you started.
Fundation
Fundation provides both term business loans online and lines of credit. It is most known for its working capital financing options. These are funds meant to help cover the day-to-day costs of running a business rather than larger projects. Typically, these funds come in the form of a line-of-credit
StreetShares
StreetShares started as a service to veterans, but now offers term loans, lines of credit, and contract financing. They also offer small business loan investment options. The maximum loan amount is $250,000, and preapproval only takes a few minutes. They use a soft pull on your credit so it doesn’t affect your score. They require a minimum credit score of 620.
BlueVine
There are two options for small business financing with BlueVine. They include lines of credit and invoice factoring. Loans start at $5,000 and go up to $100,000. Your annual revenue must be $120,000 or more, and the borrower must be in business for at least 6 months. Also, with BlueVine, there is a personal credit score requirement of 600 or higher.
Fundbox
Fundbox offers an automated process that is super-fast. They have no specific credit score requirement. You simply have to be an established business with regular monthly revenue.
Fora Financial
Founded in 2008 by college roommates, Fora Financial now funds more than $1.3 million in working capital around the United States. There is no minimum credit score, and there is an early repayment discount if you qualify.
OnDeck
Obtaining financing from OnDeck is quick and easy. First, you apply online and receive your decision once application processing is complete. If you receive approval, your loan funds will go directly to your bank account. The minimum loan amount is $5,000 and the maximum is $500,000. There is a personal credit score requirement of at least 500.
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Lendio
The secret to Lendio’s success is excellent customer service and a short, easy application process. The loan-connections service it offers slashes the time it takes to find the right business loans online. This is due to its heavily vetted network of lenders. Your personal credit score must be 560 or above.
Credibly
Credibly specializes in unsecured business loans. The minimum loan amount is $5,000 and the maximum is $250,000. They require a person credit score of at least 500 and at least 6 months in business. You also have to show at least $15,000 in average monthly deposits.
Kabbage
Kabbage offers a small business line of credit that can help accomplish your business goals quickly. The minimum loan amount is $500 and the maximum is $250,000. They require you to be in business at least one year and have $50,000 or more in annual revenue or $4,200 or more in monthly revenue over the last 3 months.
How Do I Fund My Business If I Don’t Know Where to Start?
Well, you don’t. You have to know where to start, so we are going to tell you. You start with the foundation. How your business is set up has everything to do with fundability. Fundability is the ability to get funding for your business. How do you set up your business to be fundable?
Separate Contact Information
Your business must have its own:
- business phone number
- business address
- fax number
- email address (more on that later)
Get an EIN
An EIN is an identifying number for your business that works in a way similar to how your SSN works for you personally. You can get one for free from the IRS.
Incorporation is Necessary
Honestly, not incorporating your business as an LLC, S-corp, or corporation is not an option. However, which form you choose, is. It does not matter as much for fundability, but it makes a difference for your budget and liability protection. Talk to your attorney or a tax professional about which option will work best for your needs..
Also, when you incorporate, you become a new entity. You basically have to start over. You’ll lose any time in business and a positive payment history you may have built up. For this reason, you need to incorporate as soon as possible.
Get a Business Bank Account Now
In addition, you have to open a separate, dedicated business bank account. There are a few reasons for this. For these purposes, the main one is it will help create the separation from owner you need to build fundability.
Licenses
For a business to be legitimate it has to have all of the necessary licenses it needs to run. Do the research you need to do to ensure you have all of the licenses necessary to legitimately run your business at the federal, state, and local levels.
Website
Spend the time and money necessary to ensure your website is professionally designed and works well. Pay for hosting too. Don’t use a free hosting service. Also, remember that email address you need? Make sure it has the same URL as your website. Don’t use a free service such as Yahoo or Gmail.
How Do I Fund My Business in the Future?
What happens after you have a fundable foundation? Are you automatically going to have all the answers to all of the how do I fund my business questions? No, you won’t. In fact, you won’t even be fundable yet. To fund your business into the future, you need to know everything that affects fundability so that you can make sure yours is strong. So, what exactly does affect the fundability of your business?
Business Credit Reports
Where do business credit reports come from? There are a lot of different places, but the main ones are Dun & Bradstreet, Experian, Equifax, and FICO SBSS. Since you have no way of knowing which one your lender will choose, you need to make sure all of these reports are up to date and accurate.
Other Business Data Agencies
In addition to the business credit reporting agencies that directly calculate and issue credit reports, there are other business data agencies that affect those reports indirectly. Two examples of this are LexisNexis and The Small Business Finance Exchange.
Identification Numbers
In addition to the EIN, there are identifying numbers that go along with your business credit reports. Some of them are simply assigned by the agency, like the Experian BIN. One, however, you have to apply to get. It is absolutely necessary that you do this.
Dun & Bradstreet is the largest and most commonly used business credit reporting agency. Every credit file in their database has a D-U-N-S number. To get a D-U-N-S number, you have to apply for one through the D&B website.
Business Credit History
Your credit history is a huge factor in the fundability of your business.
It consists of a number of things including:
- How many accounts are reporting payments?
- How long have you had each account?
- What type of accounts are they?
- How much credit are you using on each account versus how much is available?
- Are you making your payments on these accounts consistently on-time?
The more accounts you have reporting on-time payments, the stronger your credit score will be.
Business Information
This is a problem because a ton of loan applications are turned down each year for fraud concerns due to things not matching up. Maybe your business licenses have your personal address but now you have a business address. You have to change it. Perhaps some of your credit accounts have a slightly different name or a different phone number listed than what is on your loan application. Do your insurances all have the correct information?
Learn bank rating secrets with our free, sure-fire guide.
Financial Statements
Both your personal and business tax returns need to be in order. Not only that, but you need to be paying your taxes, both business and personal.
Business Financials
It is best to have an accounting professional prepare regular financial statements for your business. Having an accountant’s name on financial statements lends credence to the legitimacy of your business.
If you cannot afford this monthly or quarterly, at least have professional statements prepared annually. Then, they are ready whenever you need to apply for a loan.
Personal Financials
Often tax returns for the previous three years will suffice. Get a tax professional to prepare them. This is the bare minimum you will need. Other information lenders may ask for include check stubs and bank statements, among other things.
Bureaus
There are several other agencies that hold information related to your personal finances that you need to know about. Everyone knows about FICO. Your personal FICO score needs to be as strong as possible. It really can affect business fundability and almost all traditional lenders will look at personal credit in addition to business credit.
Also, there is ChexSystems. In the simplest terms, this keeps up with bad check activity and makes a difference when it comes to your bank score. If you have too many bad checks, you will not be able to open a bank account. Consequently, you will run into serious fundability issues.
Personal Credit History
Your personal credit score from Experian, Equifax, and Transunion all make a difference. You have to have your personal credit in order because it will definitely affect the fundability of your business. That means, if it isn’t great right now, get to work on it. The number one way to get a strong personal credit score or improve a weak one is to make payments consistently on time.
The Application Process
This is related to when you apply and what you apply for. Is it the right time to apply for financing? Are you applying for a product you can use or even get?
How Do I Fund My Business? The Answer Lies with Fundability
In the end, the key to funding any business at any time is to have strong fundability. As a result, you have to start from the foundation and continually work to build business credit and keep all information up-to-date and accurate. Do this, and you will be able to find the answers to all of your “How do I fund my business” questions.
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Business Loans for Minority Women and Other Funding Options
As a minority woman in business, it is important to know what is available to you for business funding. Do business loans for minority women even exist? The answer is, sort of. There are business loans for minority women, but not for them exclusively. There are other funding options out there as well. Grants, crowdfunding, and even angel investors are all viable options.
Business Loans for Minority Women and So Much More
How do you find the best options for you? How do you know if you need to be looking for grants or business loans for minority women? The truth is, you need to explore every option. This is because, in reality, it is probably going to take a combination of funding options to fully fund your business.
Business Loans for Minority Women: The Truth
The thing is, there aren’t a ton of loan programs only for minority women. You are really looking for regular loans that work with the challenges faced by business owners that fit into both categories. Once you understand that, your search will become much easier.
Business Loans for Minority Women: Traditional vs. Private
As a general rule, loans from traditional lenders are both the best and the hardest to get. Their terms and rates are much better than those offered by private lenders. They also have more stringent eligibility requirements. They typically require higher credit scores, longer time in business, and more annual revenue.
Find out why so many companies use our proven methods to get business loans.
Private lenders, on the other hand, work a little differently. They tend to have higher interest rates and less favorable terms. However, they have less strict requirements for approval. They allow lower credit scores and less time in business, as a general rule.
The Small Business Administration
So where do you go to find business loans for minority women? Since traditional loans offer the best rates and terms, they are truly the place to start. They are harder to get, but the Small Business Administration loan programs help make them easier. They do not lend funds directly. Instead, they work with traditional lenders. They back loans to make them easier for borrowers to qualify. You can find a list of SBA partner lenders using their lender match tool.
7(a) Loans
This is the Small Business Administration’s main loan program. It offers federally funded term loans up to $5 million. The funds can be used for expansion, purchasing equipment, working capital and more. These funds are distributed through traditional lenders.
The minimum credit score to qualify is 680. In addition, there is a down payment requirement of at least 10% for the purchase of a business, commercial real estate, or equipment. The minimum time in business is 2 years. In the case of startups, business experience equivalent to two years will suffice.
504 Loans
These loans are also available up to $5 million and can buy machinery, facilities, or land. They are generally used for expansion. Like 7 (a) loans, private sector lenders or nonprofits process and disburse these funds. They work well for commercial real estate purchases especially.
Terms for 504 Loans range from 10 to 20 years. Unfortunately, funding can take up to 90 days. They require a minimum credit score of 680, and collateral is the asset it is financing. There is also a down payment requirement of 10%, which can increase to 15% for a new business.
There is also a 2-years in business requirement. For a startup, equivalent experience for management will meet this.
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 SBA microloan programs as intermediaries.
Interest rates on these loans are 7.75% to 8% above the lender’s cost to fund, and the terms go up to 6 years. Similar to other programs, they can take up to 90 days to fund. The minimum credit score is 640, and the collateral and down payment requirements vary by lender.
SBA Express Loans
These loans max out at $350,000. They have a maximum interest rate of 11.50%. In addition, terms range from 5 to 25 years, and the SBA guarantee is less than it is with their other loan programs at 50%. To qualify, your credit score must be above 680. Another requirement is that you must have a debt to service ratio of 1.1 or higher. If the loan is greater than $25,000, collateral may be necessary. It depends on the lender.
The turnaround for express loans is much faster. The SBA takes up to 36 hours to give a decision. Also, there is not as much application paperwork. As a result, express loans are a great option for working capital, among other things, if you qualify.
Other SBA Resources
The SBA exists for all small company owners. However, their Office of Women’s Business Ownership exists to help women local business owners specifically. This includes women minorities. Their goal is to enable and empower business owners that are women via advocacy, outreach, and education as well as assistance.
Business Loans for Minority Women: Private Lenders
Other options for business loans for minority women include private lenders. These loans, much like SBA loans, are not exclusively for minorities or women. However, by nature they tend to work well with the unique challenges each group faces.
Lending Club
LendingClub functions as a peer-to-peer lender that offers mostly fixed-term small business loans. Borrowers that get loans from LendingClub generally use loans funds to buy equipment, finance growth or expansion projects, consolidate other debt, or hire new employees.
The minimum loan amount at LendingClub is $5,000 and the maximum is $300,000. You must have been in business for 12 months or more and have at least $50,000 in annual sales to qualify. There can be no tax liens or bankruptcies, and you must have at least 20% ownership. They will work with a credit score that is fair or higher. A fair credit score ranges from 620 to 659.
Lendio
Lendio offers a loan-connection service that dramatically cuts the time it takes for small business owners to find the perfect loan. They do the legwork by vetting a network of competing small business lenders. Funding is fast, sometimes in as little as 24 hours.
Potential borrowers submit one application and then see offers from lenders in the network. The minimum loan amount is $500 while the maximum is $5,000,000. The business must be U.S. or Canada based and must have a business bank account. The minimum personal credit score for approval is 560.
Find out why so many companies use our proven methods to get business loans.
Blue Vine Business Loans for Minority Women
BlueVine offers two options for small business financing. They include lines of credit and invoice factoring. They also offer the ability to talk with a financing advisor, and their application process takes place exclusively online. Their minimum loan amount is $5,000 and their maximum is $100,000. To be eligible you must be in business for at least 6 months, have revenue of $120,000 per year or more, and have a credit score of at least 600.
Kiva
Kiva has a different lending model. They offer loans to businesses, but their platform is far different from that of traditional or even other non-traditional lenders. It is a kind of cross between crowdfunding and lending. They offer loans with a 0% interest rate, so even though you have to pay it back, it is actually free money. In addition, they do not run a credit check at all. The only requirement is that you have to get at least 5 family members or friends to donate money for your business, and you have to give at least a $25 loan to another business on the platform yourself.
Grameen
Microloans are a great option when it comes to business loans for women with bad credit. Grameen is one of the few lenders that offers microloans specifically for women. The loan amounts range from $2,000 to $15,000, and they also offer financial training and support.
As a bonus, they report payments to Equifax and Experian. Consequently, these loans help borrowers build credit.
Other Resources for Women
Here are some other organizations that work to help women of all races.
National Female’s Service Council
The NWBC is a federal advising council. It works as a resource of guidance to the government on women’s organization problems. The objective is to encourage campaigns, programs, and policies to sustain females from startup to growth.
Other Tools to Consider
Along with those firms listed above, these agencies provide support to women owned businesses.
The AWBC runs a network of business centers geared toward women. These centers labor to help women succeed by offering training, business development, financing, and mentoring opportunities.
This organization, also known as NAFE, sponsors events, provides training, and offers other resources to help female business owners achieve success.
The NAWBO works across the country to offer training, events, and other resources to women owned businesses nationwide.
With more than 300 chapters and 10,000 volunteers, this is the country’s largest network of expert business mentors that volunteer their time. They match female business owners with mentors, or they can participate in a workshop to help them learn what they need to know to be successful.
Don’t Forget to Look into Grants to Supplement Business Loans for Minority Women
Though highly competitive and rarely enough to fund a business on their own, grants are a great way to supplement other business funding. Here are a few you can start with.
Amber Grant
The Amber Grant awards $500 to $1,000 per month to a woman-owned business. One of the recipients also receives an additional $10,000 grant at the end of the year. Applicants only need to tell their story and turn it in with a $15 application fee.
Find out why so many companies use our proven methods to get business loans.
#GIRLBOSS Foundation Grant
Specifically for woman-owned businesses in fashion, music, and art, the #GIRLBOSS small business grant awards $15,000. They also offer exposure via the Girlboss website and social media platforms. Judges rate those applying on creativity, business savvy, planning, innovation in the field, need, and where they plan to work.
Cartier Women’s Initiative Award
The Cartier Women’s Initiative Award is $100,000 for first place and $30,000 for second place. They award the grant to 18 female business owners from around the world each year. Women business owners who are just getting started may qualify. Look over the complete application for more information.
Grants for Minorities
If you are looking into business loans for minority women, then you must be both a minority and a woman. That being the case, you should check out these grants for minorities as well.
First Nations Development Institute Grants
The mission of this group is to offer grants that help Alaska Natives, Native Hawaiians, and Native Americans. They offer assistance in the application process in addition to funds.
National Black MBA Association Scale-Up Pitch Challenge
Also known as NBMBAA, the Scale-Up Pitch Challenge has cash prizes ranging from $1,000 to $50,000. The associate states its purpose is to help newer businesses that have an African founder that maintains equal ownership.
Non-Minority or Female Specific Options
There are grants options that can work well even though they are not exclusively for minorities, or women. Some examples include the following.
FedEx Small Business Grant
There are 10 grants the company awards each year. They range from $15,000 to $50,000. If you’re a minority owned business with a cutting-edge product, this could be the grant for you.
A business must use the FedEx website to submit entries. There are a few questions to answer about your business. In addition, there is a requirement for an elevator pitch about what makes your business special. Also, you have to explain how you would use the grant funds. A 90 second video submission is optional.
NASE Growth Grants
The National Association for the Self-Employed (NASE) has small business Growth Grants of up to $4,000. They are for micro-businesses, and proceeds can be used for a number of things. They can be utilized for marketing, advertising, expansion, and even to hire employees. These grants are open to everyone. However, you do have to be an NASE member to apply. Membership fees vary based on the membership level chosen.
USDA Value Added Producer Grant
The USDA’s Value-Added Producer Grant (VAPG) program offers grants for small businesses. It includes minority owned business. Grants range up to $250,000. They are specifically to help agricultural producers with activities that add value to their products. As a result, grants are open to those in rural areas. They must be operating as one of the following:
- Cooperative
- Farmer
- Rancher
- an independent agricultural producer
- or an agricultural producer group
Business Loans for Minority Women and Other Helpful Resources
It’s important that you know about your options for business loans for minority women. However, you need to know what other resources are available as well. There are plenty. Take a look around and see what you can dig up.
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10 Books For Entrepreneurs To Make Your Business Successful
From smart business strategies to helpful stress-management, reading and continuous education are highly effective habits of the most successful entrepreneurs. Bill Gates is reading 50 each year, and Elon Musk spent 10 hours a day …
The post 10 Books For Entrepreneurs To Make Your Business Successful appeared first on Paper.li blog.
10 Books For Entrepreneurs To Make Your Business Successful
From smart business strategies to helpful stress-management, reading and continuous education are highly effective habits of the most successful entrepreneurs. Bill Gates is reading 50 each year, and Elon Musk spent 10 hours a day … The post 10 Books For Entrepreneurs To Make Your Business Successful appeared first on Paper.li blog.
Here’s a Great Question from Residential Real Estate Agents: How Do I Build Recession Business Credit
COVID-19 got you down? It’s not going to last forever. In the meantime, you can build recession business credit. Get a jump on then competition and use this pause in our lives to get ahead.
Recession Business Credit for Residential Real Estate Agents and the Rest of Us!
Every entrepreneur asks this same question: how do I build recession business credit?
The United States’s economy has been through any number of changes throughout the years. Our economic fortunes can depend on breakthroughs in modern technology, diplomatic ties (or cutting those ties), the weather, and a lot more. Business credit, luckily, is an asset which you can build even during economic recessions. Nevertheless, you may need to get a little imaginative with it, and with other forms of company funding.
Business credit is credit in a company’s name. It doesn’t link to a business owner’s consumer credit, not even when the owner is a sole proprietor and the sole employee of the company.
As such, a business owner’s business and consumer credit scores can be very different.
Recession Business Credit – Get The Advantages
Due to the fact that recession business credit is separate from individual, it helps to safeguard a business owner’s personal assets, in the event of a lawsuit or business insolvency.
Also, with two distinct credit scores, a small business owner can get two separate cards from the same merchant. This effectively doubles purchasing power.
Another advantage is that even new ventures can do this. Going to a bank for a business loan can be a recipe for disappointment. But building small business credit, when done properly, is a plan for success.
Consumer credit scores rely on payments but also other components like credit utilization percentages.
But for company credit, the scores actually only hinge on if a business pays its invoices on time.
Recession Business Credit – Start The Process
Growing company credit is a process, and it does not occur automatically. A small business has to proactively work to establish business credit.
However, it can be done readily and quickly, and it is much swifter than establishing consumer credit scores.
Merchants are a big part of this process.
Doing the steps out of order will lead to repetitive rejections. Nobody can start at the top with company credit. For example, you can’t start with retail or cash credit from your bank. If you do, you’ll get a rejection 100% of the time.
Recession Business Credit – Get Started with Small Business Fundability
A small business needs to be fundable to lenders and vendors.
Hence, a business will need a professional-looking website and e-mail address. And it needs to have site hosting bought from a supplier like GoDaddy.
And also, company phone and fax numbers ought to have a listing on ListYourself.net.
At the same time, the company phone 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.
Licenses
These licenses all have to be in the particular, accurate name of the small business. And they must have the same small business address and phone numbers.
So keep in mind, that this means not just state licenses, but potentially also city licenses.
Learn more here and get started toward establishing small business credit. Get money even in a recession!
Recession Business Credit – Start Credibly Dealing with the Internal Revenue Service
Visit the Internal Revenue Service web site and get an EIN for the small business. They’re free. Pick a business entity like corporation, LLC, etc.
A small business may get started as a sole proprietor. But they absolutely need to change to a form of corporation or an LLC.
This is to diminish risk. And it will take full advantage of tax benefits.
A business entity matters when it involves tax obligations and liability in the event of a lawsuit. A sole proprietorship means the owner is it when it comes to liability and tax obligations. No one else is responsible.
The best thing to do is to incorporate. You should only look at a DBA as an interim step on the way to incorporation.
Recession Business Credit – Set off the Business Credit Reporting Process
Start at the D&B web site and obtain a totally free D-U-N-S number. A D-U-N-S number is how D&B gets a company in their system, to generate a PAYDEX score. If there is no D-U-N-S number, then there is no record and no PAYDEX score.
Once in D&B’s system, search Equifax and Experian’s sites for the business. You can do this at www.creditsuite.com/reports. 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.
This way, Experian and Equifax will have activity to report on.
Starter Vendor Credit
First you must establish tradelines that report. 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 begin to get credit for numerous purposes, and from all sorts of places.
These types of accounts often tend to be for things bought all the time, like marketing materials, shipping boxes, outdoor workwear, ink and toner, and office furniture.
But first of all, what is trade credit? These trade lines are credit issuers who give you starter credit when you have none now. Terms are generally Net 30, instead of revolving.
Therefore, 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, such as within 30 days on a Net 30 account.
Details
Net 30 accounts have to be paid in full within 30 days. 60 accounts need to be paid fully within 60 days. Unlike revolving accounts, you have a set time when you have to pay back what you borrowed or the credit you made use of.
To launch your business credit profile the right way, you ought to 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.
Vendor Credit – It Helps
Not every vendor can help like true starter credit can. These are vendors that grant approval with marginal effort. You also want them to be reporting to one or more of the big three CRAs: Dun & Bradstreet, Equifax, and Experian.
As you get starter credit, you can also start to get credit from retailers. This is to continue to prove you are reliable and pay in a timely manner. Here are some stellar choices from us: https://www.creditsuite.com/blog/5-vendor-accounts-that-build-your-business-credit/
Uline
Uline is a true starter vendor. You can find them online at www.uline.com. They offer shipping, packing, and industrial supplies, and they report to D&B and Experian. You MUST have a D-U-N-S number and an EIN before starting with them. They will ask for your business bank information. Your company address must be uniform everywhere. You need for an order to be $50 or more before they’ll report it. Your first few orders may need to be prepaid initially so your business can get approval for Net 30 terms.
- How to apply with them:
- Add an item to your shopping cart
- Go to checkout
- Select to Open an Account
- Select to be invoiced
Quill
Quill is an additional true starter vendor. You can find them online at www.quill.com. They sell office, packaging, and cleaning supplies. And they also sell toner, office furniture, and even shipping and school supplies. They report to Dun and Bradstreet every quarter.
To apply, you MUST have a D&B PAYDEX score. If not given a Net 30 they will ask you to do prepaid orders of $100.00. Normally any prepaid order won’t report but you would need them to have given you a Net 30 account. Net 30 accounts require $50.00 purchase to report.
New business or businesses with no credit history may need to prepay purchases until Net 30 approval. Terms are Net 30.
- Here’s how to qualify:
- Your corporate entity must be in good standing with the applicable Secretary of State
- You must have an EIN and a D-U-N-S number
- Business address (it has to match everywhere)
- Business license (if applicable)
- A corporate bank account
Apply online or over the phone.
Grainger Industrial Supply
Grainger Industrial Supply is likewise a true starter vendor. You can find them online at www.grainger.com. They sell hardware, power tools, pumps and more. They also do fleet maintenance. And they report to D&B. You need to have a business license, EIN, and a D-U-N-S number.
- To qualify, you need the following:
- A business license (if applicable)
- An EIN number
- A company address matching everywhere
- A business bank account
- A D-U-N-S number from Dun & Bradstreet
Your business entity must be in good standing with the applicable Secretary of State. If your company doesn’t have established credit, they will require additional documents. So, these are items like accounts payable, income statement, balance sheets, and the like.
Apply online or over the phone.
Recession Business Credit – Get Benefits from Accounts That Don’t Report
Non-Reporting Trade Accounts can also be helpful. While you do want trade accounts to report to a minimum of one of the CRAs, a trade account which does not report can still be of some worth.
You can always ask non-reporting accounts for trade references. And credit accounts of any sort will help you to better even out business expenditures, thereby making budgeting simpler. These are companies like PayPal Credit, T-Mobile, and Best Buy.
Store Credit
Store credit comes from a variety of retail companies.
You must use your Social Security Number and date of birth on these applications for verification purposes. For credit checks and guarantees, use the small business’s EIN on these credit applications.
Fleet Credit
Fleet credit is from companies where you can purchase fuel, and fix and maintain vehicles. You must use your Social Security Number and date of birth on these applications for verification purposes. For credit checks and guarantees, make certain to apply using the business’s EIN.
Learn more here and get started toward establishing small business credit. Get money even in a recession!
Cash Credit
These are businesses such as Visa and MasterCard. You must use your SSN and date of birth on these applications for verification purposes. For credit checks and guarantees, use your EIN instead.
These are often MasterCard credit cards.
And there are tons of ways these business credit cards can help residential real estate agents.
Learn more here and get started toward establishing small business credit. Get money even in a recession!
Recession Business Credit – Monitor My Business Credit
Know what is happening with your credit. Make certain it is being reported and take care of any mistakes ASAP. Get in the practice of taking a look at credit reports and digging into the details, and not just the scores.
We can help you monitor business credit at Experian and D&B for 90% less than it would cost at the business CRAs.
At Equifax, you can monitor your account at: www.equifax.com/business/business-credit-monitor-small-business.
Update Your Data
Update the relevant information if there are inaccuracies or the information is incomplete. At D&B, you can do this at: https://iupdate.dnb.com/iUpdate/viewiUpdateHome.htm. For Experian, go here: www.experian.com/small-business/business-credit-information.jsp. So for Equifax, go here: www.equifax.com/business/small-business.
Recession Business Credit – Fix My Business Credit
So, what’s all this monitoring for? It’s to dispute any inaccuracies in your records. Mistakes in your credit report(s) can be fixed. But the CRAs often want you to dispute in a particular way.
Disputes
Disputing credit report errors typically means you mail a paper letter with copies of any evidence of payment with it. These are documents like receipts and cancelled checks. Never send the originals. Always mail copies and retain the originals.
Fixing credit report inaccuracies also means you specifically itemize any charges you dispute. Make your dispute letter as crystal clear as possible. Be specific about the concerns with your report. Use certified mail so that you will have proof that you sent in your dispute.
Recession Business Credit – A Word to the Wise
Always use credit smartly! Don’t borrow more than what you can pay back. Keep track of balances and deadlines for payments. Paying off on schedule and fully will do more to elevate business credit scores than nearly anything else.
Establishing small business credit pays off. Great business credit scores help a business get loans. Your lender knows the small business can pay its debts. They understand the company is bona fide.
The business’s EIN attaches to high scores and credit issuers won’t feel the need to demand a personal guarantee
How Do I Build My Business Credit: Takeaways
Business credit is an asset which can help your small business for years to come. Learn more here and get started toward establishing small business credit. The COVID-19 pandemic is not going to last forever.
The post Here’s a Great Question from Residential Real Estate Agents: How Do I Build Recession Business Credit appeared first on Credit Suite.