Fair Credit Business Credit Cards in a Recession

Get the Best Fair Credit Business Credit Cards in a Recession

Are you looking for fair credit business credit cards in a recession? We checked out a ton of company credit cards, and did the research for you.

COViD-19, Economic Downturns, and Getting Fair Credit Business Credit Cards in a Recession

The USA’s economic climate has been through any variety of changes throughout the years. Our financial fortunes can depend on developments in modern technology, diplomatic ties (or cutting those ties), the weather, and much more. COVID-19 in particular is hitting our economy hard, with some 22 million initial claims for unemployment benefits in four weeks.

Business credit, thankfully, is an asset which you can build even during economic slumps. However, you might need to get a little imaginative with it, as well as with various other kinds of financing.

Was an Economic Decline Predicted Before COVID-19 Hit?

Yes, actually. While nobody has a crystal ball, one thing is for certain. Whenever you start to see a bubble, it will at some point burst. Which is true whether the bubble is in the stock exchange, or S&L loans, or real estate.

Economic slumps additionally, certainly, imply financial institutions get even more cautious. Given that bailout money is finite, it would appear that banks will get more cautious very soon.

And because people may have much less discretionary cash money to spend, crowdfunding may become a less feasible funding option. The same may end up being true for angel investing as well as venture capital.

What Does this Mean to You?

Small business loans may be tightening up. However business credit is still a fantastic way to get business funding. By bypassing loan providers, you raise your chances for business financing, specifically if your company is new.

Business credit links to your EIN and not your SSN, as well as is available without a personal guarantee. It is available regardless of individual credit.

Business credit building is an outstanding selection in an economic downturn, as it is not based on how well the economy is doing. It also establishes an asset which will retain its value as long as your ratings remain high.

You can still get fair credit business credit cards in a recession. But note some of our choices need better credit. So take the opportunity as we take a breather to improve your credit scores.

Fair Credit Business Credit Cards in a Recession: Advantages

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

This demonstrates you can get a lot more money with business credit. And it also shows you can have personal credit cards at retailers. So you would now have an added card at the same stores for your company.

And you will not need collateral, cash flow, or financials in order to get small business credit. Fair credit does not have to be an obstacle!

Benefits vary, so make certain to choose the reward you prefer from this assortment of alternatives.

Fair Credit Business Credit Cards in a Recession

Brex Card for Startups

Look into 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 provide a personal guarantee. They will take your EIN.

Nevertheless, they do not accept every industry.

Also, there are some industries they will not work with, and others where they want added documentation. 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. 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.

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 with our research-backed guide to 12 business credit cards and lines, and get fair credit business credit cards in a recession.

Secure Fair Credit Business Credit Cards in a Recession

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 earn unlimited 1% cash back on every purchase for your business, with no minimum to redeem.

While this card is within reach if you have average credit scores, beware of the APR. Yet if you can pay promptly, and in full, then it is a bargain.

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

Terrific Cards for Cash Back

Flat-Rate Rewards

Capital One ® Spark® Cash for Business

Check out the Capital One® Spark® Cash for Business. It has an introductory $0 annual fee for the initial year. After that, this card costs $95 per 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 3 months from account opening. Get unlimited 2% cash back. Redeem any time without minimums.

You will need great to outstanding credit to qualify.

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

Flat-Rate Rewards and No Annual 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. 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 minimum spend requirement.

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

Get it here: https://www.discover.com/credit-cards/business/

Irresistible 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. And get a one-time $200 cash bonus as soon as you spend $3,000 on purchases in the first 3 months. Rewards never expire.

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

You will need good to excellent credit to qualify.

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

Business Credit Cards for Extravagant Travel Points

Flat-rate Travel Rewards

Capital One® Spark® Miles for Business

Have a look at the Capital One® Spark® Miles for Business. It has an introductory yearly 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 excellent for travel if your expenses do not come under basic bonus categories. You can get unlimited double miles on all purchases, without any 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 is the same as $500 in travel. Yet you just get it if you spend $4,500 in the first 3 months from account opening. There is no foreign transaction fee. You will need a great to outstanding 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 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 three months after account opening. This works out to $1,250 towards travel rewards if you redeem using 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 through 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

Establish business credit fast with our research-backed guide to 12 business credit cards and lines, and get fair credit business credit cards in a recession.

Hotel Credit Card

Marriott Bonvoy Business™ American Express® Card

Check out 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 outstanding credit scores to get this card.

Points

You can earn 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 eligible 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 US service providers and on US purchases for shipping.

Get double points on all other eligible purchases.

Rewards

Also, you get a free night each 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 free Marriott Bonvoy Silver Elite status with your Card. Also, 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.

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/

Establish business credit fast with our research-backed guide to 12 business credit cards and lines, and get fair credit business credit cards in a recession.

Perfect Fair Credit Business Credit Cards in a Recession

Your outright best fair credit business credit cards in a recession 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 disastrous for someone else.

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

The post Fair Credit Business Credit Cards in a Recession appeared first on Credit Suite.

Business Fundraising: What You Didn’t Learn in Kindergarten

Most of us grew up hearing that we could do anything we wanted. That’s the beauty of capitalism. With American business lending, anyone can start a business. We are told all we need is a great idea, and with a lot of hard work and a business loan, we can turn that idea into a … Continue reading Business Fundraising: What You Didn’t Learn in Kindergarten

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 … Continue reading Here’s a Great Question from Residential Real Estate Agents: How Do I Build Recession Business Credit

Business Fundraising: What You Didn’t Learn in Kindergarten

Most of us grew up hearing that we could do anything we wanted. That’s the beauty of capitalism. With American business lending, anyone can start a business. We are told all we need is a great idea, and with a lot of hard work and a business loan, we can turn that idea into a thriving livelihood. The thing is, the business fundraising piece isn’t as easy as we may have thought.

Business Fundraising Hinges on Fundability

I mean, the majority of us are smart enough to know that not all new businesses see success. We also know getting investors and loans is not always easy. The thing is, no one tells us what to do if business fundraising turns out to not be as easy as we thought. No one really gives any options, which means when we hit that first brick wall of a lender turning us down for a loan or an investor saying no, we don’t know what our next move should be.

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

Business Fundraising: Why Loans Don’t Always Work

For starting up a small business, the first stop on the business fundraising train is typically the bank. You go in, fill out a business plan, and hope for the best. If your personal credit is stellar, you are golden. If not, you have a problem.

That’s why traditional loans do not always work. If your personal finances cannot handle the up-front expense of starting a business, and you do not have investors, you have to find another way. This is the part that no one tells you. How on earth do you start a business if you cannot get a business loan based on your personal credit.

Business Fundraising: Loans to Apply for When Traditional Loans Will Not Work

Okay, so, here’s the thing. You are going to have to get your business going a little at the time, on your own. Surprisingly, this strange economy created by the coronavirus is prime for this. Maybe you take on a few clients or sell to a few customers in your spare time. Who knows? You need to be in business for at least 6 months before you start applying for these types of loans. In fact, some require a year in business and a minimum revenue.

They key is, you get started, and you get started on your own. Then you figure out where you can turn for business fundraising to grow your business further. If you hit the one year in business mark, you may qualify for SBA loans.

Business Fundraising: SBA Loans

The Small Business Administration is designed specifically to help small businesses. Whether you need working capital or a natural disaster has struck, the SBA can help.

Overall, there’s a wide range of products offered through SBA programs. Typically, the SBA does not lend funds directly. Conversely, they work through lender partners to guarantee loans. This means, they are able to leave the administration of the loans and disbursement of funds to those who regularly handle that sort of this.

7(a) Loans

This is the Small Business Administration’s most popular loan program. It offers federally funded term loans of up to $5 million. Additionally, the funds can be used for expansion, purchasing equipment, working capital and more. Banks, credit unions, and other financial institutions, in partnership with the SBA, process these loans and distribute the funds.

A credit score of 680 is necessary to qualify. In addition, there is a required down payment of at least 10% for the purchase of a business, commercial real estate, or equipment. Lastly, the minimum time in business is 2 years. Business experience equivalent to two years will do the trick for startups, so this is one you don’t have to wait for if you have experience.

504 Loans

These loans are available up to $5 million. Funds can buy machinery, facilities, or land. Generally however, they are for expansion. Private sector lenders or nonprofits handle these loans. They especially work well for commercial real estate purchases.

Microloans

Microloans are available in smallter amounts. They go up to $50,000. Typically, they work well for starting a business, purchasing equipment, buying inventory, or for working capital. Community based non-profits administer microloan programs. Unlike the others, financing comes directly from the Small Business Administration.

Even though SBA loans have less stringent requirements, sometimes they still won’t do the trick. What then?

Business Fundraising: Private Loans to the Rescue

If you see that you do not qualify for SBA Loans, private loans could be an option. They should be the second option for business fundraising, after SBA loans. Here’s why. They typically have higher interest rates and less favorable terms than traditional and SBA loans. That’s the downside. The upside is that their eligibility requirements are even easier to meet than SBA loans, making them a viable option if you do not qualify for other types of financing.

There are lots of private lenders out there, but be careful. Do your research, check the Better Business Bureau, and read reviews so that you know what you are getting into. Some of them are fine, but there are a lot of bad seeds in this category as well. Proceed with caution. Here’s a list of lenders to get you started.

Fundation

Fundation offers an automated process that is super-fast. Originally, they only had invoice financing. Then they added the line of credit service. Repayments are automatic, meaning they draft them electronically. This happens on a weekly basis. One thing to remember is that you could have a repayment as high as 5 to 7% of the amount you have drawn, as the repayment period is comparatively short.

You can get loans for as little as $100 and as high as up to $100,000, but the max original draw is $50,000. They do have some products that go up to $500,000. There is no minimum credit score requirement, but they require at least 3 months in business. Also, $50,000 or more in annual revenue and a business checking account with a minimum balance of $500 are necessary.

Fundation reports to Dun & Bradstreet, Equifax, SBFE, PayNet, and Experian, making them a great option if you are looking to build or improve business credit.

BlueVine

The minimum amount available from BlueVine is $5,000 and loans go up to $100,000. You must have annual revenue of $120,000 or more. In addition, the borrower must be in business for at least 6 months. The personal credit score minimum is 600. It is also important to know that BlueVine does not offer a line of credit in all states.

They report to Experian. They are one of the few invoice factoring companies that will report to any business credit bureau.

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

OnDeck

With OnDeck, applying for financing is fast and simple. You apply online, and you will receive your decision once the application processing is done. Loan funds go directly to your bank account. The minimum loan amount is $5,000 and the maximum is $500,000.

The personal credit score requirement is 600 or more. Also, you must be in business for at least one year. The annual revenue requirement is at least $100,000. In addition, there can be no bankruptcy on file in the past 2 years and no unresolved liens or judgements.

OnDeck reports to the standard business credit bureaus.

Business Fundraising: How to Not Worry About It

Okay so, that’s how to make it work in the beginning. Still, wouldn’t it be great to not have to worry about it? How would it feel to know that, if you needed a business loan, you would have no trouble getting one? How does that even happen?

While there are no guarantees in life, the best chance you have at making this happen is to build strong business fundability. That is your ability to get funding for your business based on the merits of your business and not completely on your own personal finances. To do this, you have to understand exactly what it is that makes your business fundable. There are a lot more working pieces than you may imagine.

Business Fundraising: Fundability

The first step in building fundability has to do with how you set up your business. Regardless of whether you are just getting started or if you have been operating for ages, if these things are not done, do them now. The sooner the better. You cannot build business fundability if you do not establish your business as an entity separate from yourself, and that doesn’t just happen. You have to make it happen.

Don’t Share Contact Information with Your Business

Make sure your business has its own phone number, fax number, and address. That doesn’t mean you have to get a separate phone line, or even a separate location. You can still run your business from your home or on your computer. There are options for virtual business addresses and internet based phone numbers that will serve these purposes nicely.

Apply for an EIN

Next, get an EIN for your business. This is an identifying number for your business that works in a way similar to how your SSN works for you personally. It’s free from the IRS.

Incorporation is Non-Negotiable

You have to incorporate your business as an LLC, S-corp, or corporation. Which option you choose doesn’t really make a difference for fundability. However, it can make a difference for your budget and needs for liability protection. Talk to your attorney or a tax professional about which one will work best for your business.

You are going to lose any time in business that you already have. When you incorporate, you become a new entity. You basically have to start over. You’ll also lose any positive payment history. This is why you have to incorporate as soon as possible.

Separate Bank Accounts

Open a separate, dedicated business bank account. There are a lot of reasons for this, but the first one is that it creates the separation you need to start building business credit, which is necessary to fundability.

Licenses

A legitimate business should have all of the licenses it needs to run. If it doesn’t, red flags are going to go up all over. Research what you need to do to ensure you have all of the licenses necessary to legitimately run your business at all levels.

Website

Spend the time and money necessary to make sure your website is professionally designed and that it works. Also, splurge and pay for hosting. Don’t use a free hosting service. Along these same lines, your business needs a dedicated business email address. Make sure it has the same URL as your Website. Don’t use a free service such as Yahoo or Gmail.

What Else Affects Fundability?

While setting up your business in this way is vital, there are a host of other things that affect fundability. Here’s a brief rundown.

Business Credit Reports

This is a cornerstone of fundability.

Other Business Data Agencies

Two examples of this are LexisNexis and The Small Business Finance Exchange.

Identification Numbers

Specifically a D-U-N-S number. Get one on the D&B website. You cannot have a business credit file with Dun & Bradstreet without one. Since they are the largest and most commonly used business credit agency, you have to get this number.

Business Credit History

This includes how many accounts you have, what types of accounts, and whether or not you pay on time.

Business Information

Not only do you have to have separate contact information for yourself and your business, you need to be consistent with when and where you use it. For example, if a business account has your personal address on it, it could cause problems. Be sure to keep everything up to date.

Financial Statements

Business Financials

Personal Financials
Bureaus

One example is ChexSystems, which keeps track of bad check information.

Personal Credit History
The Application Process

This is everything to do with the application from when you apply to which lending products you choose to apply for.

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

Business Fundraising: Don’t Let the Traditional Loan Brick Wall Stop You

If you hit a brick wall with traditional loans, don’t despair. Don’t let problems with business fundraising stop you. Just fix the problem. There are other options. In addition to these financing options and finding investors, you can explore grants and crowdfunding. While the fierce competition with each can make it hard, they are still viable options. However, you have to start working on fundability now, wherever you are in the life of your business. If you do, one day you will not have to worry about business fundraising. You will be able to access all you need.

The post Business Fundraising: What You Didn’t Learn in Kindergarten appeared first on Credit Suite.

20 Sources of New Business Funding to Help You Get Started

If you own a new business, one that is less than two years old, you likely need funding. Who are we kidding? Everyone needs funding of some sort right now. COVID-19 has made sure of that. It is also just as likely that you will have trouble finding funding that you qualify for. Maybe your personal credit isn’t great. Maybe you are still working on building business credit. While there are a ton of new initiatives to help businesses survive in these unprecedented times, they are mostly for existing businesses. Still, there are many options for new business funding as well. Here, we’ve broken them down in a list to help get you started. They are divided into the categories of SBA loans, private lenders, grants, and crowdfunding.

Need New Business Funding? These 20 Sources Can Help

While it isn’t always wise to stack new business funding of the same type, it isn’t a bad idea to stack different types of funding. For example, you could apply for a grant and take out a loan at the same time. You could even run a crowdfunding campaign simultaneously. However, it is important to be careful of having too many loans out at once.

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

New Business Funding: SBA Loans

These are traditional bank loans, but they have a government guarantee. The Small Business Administration, or SBA, works with financial institutions, like banks, to offer small businesses funding solutions that businesses may not be able to get based on their own credit history. Because of the guarantee from the government, lenders are able to relax a little on the personal credit score requirements.

In fact, you can get an SBA microloan with a credit score between 620 and 640. They are small loans, only going up to $50,000. Also, they may require personal collateral.

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

1. 7(a) Loans

This is the Small Business Administration’s main program. It offers term loans up to $5 million. 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.

The minimum credit score to qualify is 680, and there is also a required down payment 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 of at least two years will work.

2. 504 Loans

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

Terms for 504 Loans range from 10 to 20 years, and funding can take from 30 to 90 days. They require a minimum credit score of 680. In addition, they use the asset being financed as collateral. There is also a down payment requirement of 10%, which can increase to 15% for a new business.

The 2 years in business, or 2 years management experience in the case of startups, remains.

3. Microloans are a Great Source of New Business Funding

As mentioned, microloans go up to $50,000. They are good for starting a business, purchasing equipment, buying inventory, or for working capital. Community non-profits handle the administration of microloan programs. In contrast to their other programs, financing comes directly from the Small Business Administration.

Interest rates on these loans are 7.75% to 8% above the lender’s cost to fund. The terms go up to 6 years. They can take up to 90 days to fund. For these, the minimum credit score is 640. Furthermore, collateral and down payment requirements vary by lender.

New Business Funding: Alternative Lenders

Private business loans are loans from companies other than banks. They are sometimes also called alternative lenders. There are a few benefits to using private business loans over traditional loans.

First, they often have more flexible credit score minimums. Even though they still use your personal credit, they will usually accept a score much lower than traditional lenders. Also, they will often report to the business credit reporting agencies. This helps build or improve business credit.

Unfortunately, private business loans tend to have higher interest rates and less favorable terms. Still, the ability to get funding and the potential increase in business credit score can make it well worth it. Here are a few alternative, or private, lenders to consider.

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

4. Fundation

Fundation offers loans for as little as $100 and as high as up to $100,000. The maximum first draw is $50,000. They do have some products that go up to $500,000. Though there is no minimum credit score requirement, they do require at least 3 months in business, $50,000 or more in annual revenue, and a business checking account with a minimum balance of $500.

One thing to remember is that you could have a repayment as high as 5 to 7% of the amount you have drawn, as the repayment period is comparatively short.

Also, Fundation reports to Dun & Bradstreet, Equifax, SBFE, PayNet, and Experian, making them a great option if you are looking to build or improve business credit.

5. BlueVine

The minimum loan amount available from BlueVine is $5,000 and the maximum is $100,000. Annual revenue must be $120,000 or more. In addition, the borrower must be in business for at least 6 months. They require a personal credit score of at least 600. In addition, BlueVine does not offer a line of credit in all states.

They report to Experian. They are one of the few invoice factoring companies that will report any business credit bureau.

6. OnDeck

With OnDeck, applying for financing is quick and easy. Apply online, and you will receive your decision once application processing is complete. Loan funds will go directly to your bank account. The minimum loan amount is $5,000 and the maximum is $500,000.

The personal credit score requirement is 600 or more. In addition, you must be in business at least 3 years and have gross yearly earnings of at least $250,000. Also, there can be no bankruptcy on file in the past 2 years and no unresolved liens or judgements.

OnDeck reports to the standard business credit bureaus.

7. The Business Backer

The Business Backer offers a product they call FlexFund Line of Credit. Funds range in amount from $5,000 to $240,000, and draws can be repaid on either a daily or weekly basis.

They report to Dun & Bradstreet and Equifax.

8. 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.

To be eligible for a StreetShares loan, you must be in business at least 12 months with annual revenue of $25,000. There have been cases where they made exceptions and made loans to companies in business at least 6 months with higher earnings. The borrower’s credit score must be at least 620.

9. Fundbox

When Fundbox offers an automated process that is super-fast. Originally, they only had invoice financing. However, now they offer a line of credit service as well. Repayments are automatic on a weekly basis, so be sure you have enough funds in whatever account you connect them to cover your payment each week.

Fundbox loans come as low as $100 and as high as up to $100,000. There are no revenue or time in business requirements, but your accounting or invoice software must be compatible and must be in use for at least 3 months. Furthermore, there is also no specific credit score requirement. You simply have to be an established business with regular monthly revenue.

10. Fora Financial

Founded in 2008 by college roommates, they now fund more than $1.3 million in working capital around the country. There is no minimum credit score, and there is an early repayment discount if you qualify.

The minimum loan amount is $5,000 and the maximum is $500,000. The business must be at least 6 months in operation and the monthly revenue has to be $12,000 or more. There can be no open bankruptcies.

11. Lendio

The secret to Lendio’s success is customer service and a short, easy application process. This is due to its heavily vetted network of lenders. Sometimes, funding happens in as little as 24 hours.

One easy application can result in offers from as many as 75 lenders to choose from. The minimum loan amount is $500 and the maximum is $5,000,000. You must operate your business in the US or Canada. In addition, you must have a business bank account, and your personal credit score must be at least 560.

12. Credibly

Credibly’s specialty is unsecured business loans. The application process and funding can be completed in as little as two days. Sometimes even less than that. They offer daily and weekly repayment options.

The minimum loan amount is $5,000 and the maximum is $250,000. First, they require a personal credit score of at least 500. Next, there is a 6 months or more in business requirement. At least $15,000 plus in average monthly deposits is also required.

13. 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.

They are great if you need cash quickly. Also, their non-traditional approach puts less weight on your credit score.

New Business Funding: Grants

New business funding in the form of grants are available from a number of sources. A lot of these are designed specifically to help those business owners that are minorities, females, or veterans. Be sure to check out local organization options as well.

Here are a couple of options that are open to everyone.

14. FedEx Small Business Grant

FedEx uses this grant as a way to strengthen small business innovation. The company awards 10 grants. They range from $15,000 to $50,000 every year.

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

You have to submit an entry via the FedEx website. There are a few questions about your business. An elevator pitch about what makes your business stand out is also required. In addition, you have to explain how you would use the grant funds. A 90-second video submission is optional.

15. NASE Growth Grants

The National Association for the Self-Employed (NASE) has small business Growth Grants that go up to $4,000. Grant recipients must be micro-businesses. Funds can be used for marketing, expansion, and to hire employees. These grants are open to everyone. However, you have to be a NASE member to apply. Cost of membership depends on the member level you choose.

This is not all that is out there. Do your research, and remember additional grant options are available to women and minority business owners.

New Business Funding: Crowdfunding

Crowdfunding sites allow you to tell thousands of micro investors about your business. Anyone who wants to donate, or invest, can do so.

Investors offer amounts depending on the campaign and the platform you use. They may give $50, they may give $150, or they may give over $500. It might just be $5. Truly, any amount helps, right?

Though not always necessary, most entrepreneurs offer rewards to investors for their generosity. Usually, this comes in the form of the product the business will be selling. Different levels of giving result in different rewards. For example, a $50 gift may get you product A, and a $150 gift will get you an upgraded version of product A.

There are a lot of crowdfunding platforms out there. Here are a few to consider.

16. Kickstarter

They are the largest crowdfunding platform. They have over 14 million backers and over 130,000 funded projects. Campaigns are for products and services such as:

Publishing
The arts and film
Comics and illustration
Design and tech

A prototype is necessary. Projects cannot be for charity, although nonprofits can use Kickstarter. Equity cannot be offered as an incentive.

Taboo projects and perks include anything to do with:

Contests and raffles
Cures and medicines
Credit services
Live animals
Alcohol
Weapons

There is a 5% fee on all funds which creators collect. The payment processor also applies payment processing fees, which are roughly 3-5%. If your campaign is not successful you do not pay a fee. There are also fees of 3% + $0.20 per pledge. Pledges under $10 have to pay a discounted micro pledge fee of 5% + $0.05 per pledge.

17. Indiegogo

Indiegogo has over 9 million backers. Their minimum goal amount is $500. They charge 5% platform fees and 3% + 30¢ third-party credit card fees. Fees are deducted from the amount raised, not the goal you set. As a result, if you raise more than your goal, you will pay more in fees. They also offer a flexible funding option. This allows campaigns to keep any money they receive even if they do not reach their goal.

18. RocketHub

RocketHub is more for entrepreneurs who want venture capital. They give you an ELEQUITY Funding Room. This is where you can pitch your idea and see if it stirs up any interest from potential investors.

The platform is specifically for business owners working on projects in these categories:

Art
Business
Science
Social

If you reach your fundraising goal, there will be a 4% fee. In addition, you’ll pay a 4% credit card handling fee. But if you do not reach your goal, that fee jumps up to 8% plus the credit card handling fee.

19. CircleUp

CircleUp aims to help emerging brands and companies raise capital to grow. However, companies must apply and show revenue of at least $1 million to get a listing on the site. Still, they will sometimes make exceptions.

Due to its more thorough process, CircleUp can be good for entrepreneurs who already have a somewhat established business. These are business owners who want both funding and guidance in order to take their businesses to the next level.

New Business Funding: Strong Overall Fundability

This really comes from yourself. It’s not an outside source. Of course, there are many things that affect fundability, but one you can work on while you are using personal credit or investors for new business funding is business credit.

20. Build Business Credit

Whichever type or types of new business funding you choose to use, be sure to work on building business credit at the same time. This is a major part over overall fundability. Without strong fundability, it is hard to get any type of funding really. Personal credit will only get you so far when it comes to building and running a business.

The post 20 Sources of New Business Funding to Help You Get Started appeared first on Credit Suite.

Small Business Start Up Loans and Other Funding Options

There are many options for funding a startup. The most popular is small business start up loans. However, not everyone can just go to the bank and get a loan. Things like income and credit score get in the way. There are options if you find yourself in this situation.

Small Business Start Up Loans are Great, But Are There Other Options?

While business start up loans are the most popular option for funding a start up, sometimes you have to think outside of the box. Sometimes you have to stack different types of funding to get what you need. Here are some funding options, some loans and some not, that you should consider outside of traditional loans.

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Credit Line Hybrid

What if there were an option that allowed you to have an even better interest rate than a secured loan, and yet get the money faster and easier than any type of traditional funding. Consider if you could get business funding without having to supply any bank statements or credit stubs? Just think, you could get funding in a few days rather than weeks without supplying any collateral or documents. That is exactly what the credit line hybrid lets you do.

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

What are the Qualifications?

How hard is it to qualify? Not as hard 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. Furthermore, in the past 6 months, you should have less than 5 credit inquiries. Also, you should have less than a 45% balance on all business and personal credit cards. It’s also preferred that you have established business credit as well as personal credit.

If you do not meet all of the requirements, it’s okay. You can take on a credit partner 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 pair with you to allow you to tap into their credit to access funding.

What are the Benefits of a Credit Line Hybrid?

This type of funding has many benefits. First, it is unsecured. That means you do not have to have any collateral. Next, you do not have to provide any bank statements or financials.

Not only that, but generally approval is up to 5x that of the highest credit limit on your personal credit report. Sometimes, 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. Another benefit is, with the approval for multiple credit cards, there is competition. This makes it easier, and even likely if you handle the credit responsibly, that you can get interest rates lowered and limits raised every few months.

Credit Cards

Credit cards get a bad rap. Yet, if you know what you are doing, they can work well to help fund a start up in addition to small business startup loans. The draw is that these are accessible even with a credit score that isn’t great. However to be fair, the lower the credit score, the higher the interest rate. Also, there are limits on how low they will go with a credit score.

Typically, most business owners are eligible for a credit card of some sort. They do a credit check, but your credit doesn’t have to be as high as it would to gain approval for traditional small business start up loans.

The downside of business credit cards is that they usually have a high interest rate. The upside is that many of them offer rewards in the form of cash or points that can be helpful.

Crowdfunding

This is an increasingly popular option for startup funding. Here is how it works. Crowdfunding is a type of investment option. You get a lot of smaller investments from a lot of people. Hence the term, crowdfunding. This is different from getting the bulk of your small business funding from one or two larger investors.

First, you have to figure out which crowdfunding platform is best for your situation. Kickstarter and Indiegogo are two of the most popular. Be sure to take note of the rules each platform has for when you gain access to funds. They can vary greatly.

Angel Investors as an Alternative to Small Business Start Up Loans

Investopedia defines angel investors as those who “… invest in small startups or entrepreneurs. Often, angel investors are among an entrepreneur’s family and friends. The capital angel investors provide may be a one-time investment to help the business propel or an ongoing injection of money to support and carry the company through its difficult early stages.”

They are usually a lot less formal than regular investors. An angel investor can be anyone. Like, it could be your mom or someone you met through networking.

The best way to find angel investors is to ask people you know. Also, you can try an angel investors website or network. For example, Gust keeps a database of investors, companies, and programs. Startups can even search for business plan competitions and other opportunities.

SBA Options

Small business start up loans are a specialty of The Small Business Administration. These programs are designed for borrowers with lower credit scores than those required for traditional loans.

Score the best business credit cards for your business, even when a recession looms.Check out our professional research.

Small Business Startup Loans: 7(a) Loans

This program offers federally funded term loans of up to $5 million. Funds can be used for expansion, purchasing equipment, and working capital in addition to startup. SBA partner lenders, usually banks, process these loans and disburse the funds.

The lowest credit score to qualify is 680. There is also 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. For startups, business experience equivalent to two years will serve this purpose.

504 Loans

These loans are also available up to $5 million. Funds can be used to buy machinery, facilities, or land. Typically, these loans are used for expansion. Like 7(a) loans, partner lenders process and disburse funds. These are especially great for real estate purchases.

Terms for 504 Loans range from 10 to 20 years, and funding can take from 30 to 90 days. They also require a minimum credit score of 680. The asset being financed is required for collateral. In addition, the down payment requirement of 10% remains, but can increase to 15% for a new business.

Again, you must be in business at least 2 years, or management has to have equivalent experience if the business is a startup.

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 non-profits administer microloan programs as intermediaries, with financing coming directly from the Small Business Administration.

The minimum credit score is 640, and the collateral and down payment requirements vary by lender.

Private Lender Options for Small Business Start Up Loans

If your personal credit score isn’t the best, consider looking at private lender options.

These are alternative lenders that have less strict eligibility requirements. They do have higher interest rates and less favorable terms than traditional loans however, so choose wisely.

BlueVine

BlueVine requires that you be in business for at least 6 months. If you have at least $120,000 in annual revenue, you may qualify for a loan from them. The minimum credit score for a line of credit from BlueVine is 600. Furthermore, if you want invoice factoring, you can get approval with a score as low as 530, 3 months in business, and $10,000 in monthly revenue.

Kiva

Kiva is different. How different? They are actually very different. For example, the interest rate is 0%. That means, even though you have to pay it back, a loan from them is free money. They don’t check your credit at all. However, you have to get at least 5 family members or friends to throw some money in to help fund your business. In addition, you have to pitch in a $25 loan to another business on the platform.

Accion

Accion may be a good fit for small business start up loans also. It’s a nonprofit that offers microloans. Installment loans are available to both startups and already existing businesses through Accion. The minimum credit score is 575. You don’t have to already be in business, but if you are not, you must have less than $500 in past due debt. In addition, your business needs to be home or incubator based.

Fundability is Important for Small Business Start Up Loans

Fundability, in the simplest terms, is the ability of your business to get funding. When lenders consider funding your business, does it appear to them to be a good idea to make the loan? What do they look at to make that determination?

You see why it makes a difference. Lenders have to perceive lending to your business as profitable. But what makes a business fundable? How do you become fundable?

First, you have to have a fundable foundation. That includes the following.

Separate Contact Information

The first step in setting up a fundable foundation is to ensure your business has its own phone number, fax number, and address. That doesn’t necessarily mean you have to get a separate phone line, or even a separate location. There are ways around that.

EIN

The next thing you need to do is get an EIN for your business. This is an identifying number for your business that works in a way similar to how your SSN works for you personally. You can get one for free from the IRS.

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Incorporate

Incorporating your business as an LLC, S-corp, or corporation is necessary to fundability. It offers liability protection and helps separate your business from you as the owner, among other things.

Which option you choose does not matter as much for fundability as it does for your budget and needs for liability protection. The best thing to do is talk to your attorney or a tax professional. Also important to note is that, when you incorporate, you become a new entity. You’ll also lose any positive payment history you may have already accumulated, and your time in business will start over.

This means it is vital to incorporate as soon as possible. It’s important for fundability and building business credit, but time in business makes a difference for those things as well. The longer you have been in business the more fundable you appear to be. That starts on the date of incorporation, regardless of when your business actually opened.

Business Bank Account

You have to open a separate, dedicated business bank account. First, it will help you keep track of business finances. It will also help you keep them separate from personal finances for tax purposes.

Furthermore, it is much easier to show you meet the minimum income a lender requires for small business start up loans if you have everything in a separate business account.

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.

There is much more to fundability than these foundational factors, but none of it matters if you don’t have the foundation in place. Taking care of that piece at startup is the way to go.

Small Business Start Up Loans Are Just One Way to Fund a Startup

There are many ways to fund a startup. Small business start up loans are just one of them. The truth is, most businesses have to access more than one option to make things work. If you can start debt free with angel investors or crowdfunding, do that. If not, these other options are just what you need to get up and running.

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All You Need to Know About Business Crowdfunding

Business crowdfunding is a legitimate business funding option. Not only can it work well for startups, but it is an option for growth and expansion projects as well.

You Need Other Funding Options for When Business Crowdfunding Doesn’t Cut It

However, crowdfunding isn’t a sure thing by a long shot. In fact, it is pretty risky if it is all you have. Of course, you only lose what you put into the campaign, but you definitely need a backup funding plan. What do you need to know about business crowdfunding?

What is Business 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 a lot of investors to 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.

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

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 $10,000 when you start your campaign, you will not receive any money that investors offer up until you reach that $10,000.

Indiegogo requires a goal as well, but they offer the option to receive funds as you go if you would rather. 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, like an extension.

More Crowdfunding Sites

There are other crowdfunding sites out there also. Different ones work better for certain businesses and vendors. To figure out which one you 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, but it shouldn’t be relied upon completely. You need a backup plan. Only a small percentage of crowdfunding campaigns are successful. Furthermore, consider how the economy is doing before you rely too heavily on crowdfunding. If the economy isn’t strong, people will not be as likely to invest.

Examples of Successful Business Crowdfunding Campaigns

Though not all business crowdfunding campaigns are successful, some are incredibly profitable. Here are some of the most successful.

Pebble SmartWatch

Pebble actually has several of the top 10 campaigns ever on Kickstarter. Their 2nd campaign is one of the highest funded ever, reaching over $20,000,000. That’s not too shabby for a goal of only $500,000. They blew it out of the water!

Are they still successful? They are, but not in the way you may think. They actually sold to FitBit. So I call that success.

FlowHive

This one is not one that most would expect to be as profitable as it was. The FlowHive Indiegogo campaign was buzzworthy for sure. The idea was to find a way to get the honey from bees without harming the bees.

Traditionally, hives are simply broken open to get the honey. This process can kill the bees. FlowHive developed a fake hive, made from reusable plastic. Bees make honey in it, and the honey flows out through a spout. The bees are safe and fresh honey is readily available.

Apparently, beekeeping is growing in interest. This campaign raised $14,000,000. Though they won’t disclose exact numbers, those in charge say they are still in the black.

CoolestCooler

The coolest cooler was a super cool Kickstarter campaign that came in at over $13.000,000 raised. The cooler boasted bluetooth and a blender among other things. Investors received a cooler for their donation toward the cause.

This one did run into some trouble when it wasn’t able to deliver investment rewards as quickly as promised and there was actually a lawsuit. In the end, everything worked out and everyone got their rewards.

The cool gang at CoolestCooler says they are glad to put that behind them and get back to work. You can still buy one today.

Kingdom Death Monster 1.5

Strange name, huh? What do you say to that? Apparently a lot of people said yes. They said yes to the tune of $12,000,000 on Kickstarter.

It’s a board game, if you didn’t already know. It did take a while to get the get going, but investors finally got their copy. After production stopped, resale values went upwards of $1,000. A later campaign promising updated material did just as well. Seems like a lot people love horror games.

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

BauBox Travel Jacket

This jacket was set to be hot with 10 different design elements, like a drink holder and a neck pillow. They raised over $11,000,000 across 2 campaigns. While it had a bumpy start, including the jacket being available on retail sites before investors even got theirs, it is still selling today.

How to Launch a Successful Business Crowdfunding Campaign

There is no such thing as guaranteed success, but following these steps can help make sure you give your business the best chance possible.

You Have to Research

You need to know your market and what demand looks like. The only way to figure that out is to research. Find out how much you actually need before you set your goal. Many business owners have started business crowdfunding campaigns only to find the demand isn’t there or their goal fell short of what they actually needed to get started.

You Need a Prototype

If you are selling a product, you have a sample to show investors. This is key. People are much more likely to invest if they can see something tangible. This is so important that Kickstarter actually requires you to have a prototype to show potential investors

Consider Your Platform

Once you know who your target audience is, you can decide if you would be best served by Kickstarter, Indiegogo, or some other, lesser known yet equally successful platform. If your audience doesn’t frequent the platform you are on, it won’t matter how great your idea or product is. They will never see it.

Offer Good Rewards

Rewards are vital. However, be certain you can deliver. Also, don’t give away the company. But if someone one is going to help you get started, they deserve something pretty epic. Go beyond a thank you note. Be fearless with what you offer as a reward for their support, without harming your success.

Have Something to Reach For

Setting attainable goals is absolutely necessary to success. Make sure you look at the numbers in light of actual facts before you set a fundraising goal. Be certain you have production facilities on the line that can meet the timeline goals. Don’t set random goals with no clue what it will take to reach them, or if they are even realistic to reach.

Make Your Marketing Pop

You can’t just throw something together. If you do a video, it needs to be professionally edited. Any social media needs to be specifically geared toward your audience. If they are a cheesy, campy audience, then that is how your social media and videos need to come off.

If they are an audience is more sophisticated, your campaign needs to be as well.

Other Funding Options

Remember, you need a backup plan in case business crowdfunding doesn’t work out. Here are some options.

Traditional Term Loans

These are the loans that you go to the bank to get. As a business, your business credit score can help you get some types of funding even if your personal score isn’t awesome. That isn’t necessarily the case with traditional loans however.

With a traditional lender term loan, you are almost always going to have to give a personal guarantee. As a result, they will check your personal credit. If it isn’t good enough, you will not get approval.

What kind of personal credit score do you need to have to qualify for a traditional term loan? 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 really great business credit, your lender might be more inclined to be a little more flexible. However, your personal credit score will still weigh heavily on the terms and interest rate.

Of all of the available business funding types, this is the hardest to get. It is usually worth the trouble however, because it often has the best rates and terms.

SBA Loans

These are traditional bank loans, but they have a guarantee from the federal government. The Small Business Administration, or SBA, works with lenders to offer small businesses funding solutions that they may not be able to get based on their own credit history. Because of the government guarantee, lenders are able to relax a little on the personal credit score requirements.

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 require personal collateral as well.

Every rose has its thorn, and SBA loans are no different. The application progress is lengthy. There is a ton of red tape to get through due to the government affiliation.

Business Line of Credit

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

If you need revolving credit and can qualify for a term loan, this is a good option. It is great for bridging cash gaps and covering short term expenses without the high credit card interest rates.

Still, there are no cash back rewards or loyalty points. This makes some business owners prefer business credit cards in some cases, despite higher interest rates.

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. You get cash right away, without waiting for your customers to pay the invoices.

It is a good option if you need cash fast, or you do not qualify for other funding types. The interest rate varies based on the age of the receivables.

Private Lenders

Private lenders are lenders other than traditional banks and credit unions that offer terms loans. Generally, they operate online. The difference between these and traditional lenders is that the loans have less strict 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.

Grants

While there are not a lot of these out there, they are more common than you probably think. Usually, they are offered by professional organizations. There are some government grants available also. Competition can be tough, but they are definitely worth a shot if you think you may qualify.

Requirements

Requirements vary from grant to grant. Also, most are only awarded to a certain number of recipients. Still, they are a good option, especially if you fall into one of these basic categories.

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

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. They do not require much other than that you meet the corporation’s definition of a small business and win the contest.

Business Crowdfunding is a Legitimate Option

Business crowdfunding can be fabulous. You can get all the funds you need to start or grow your business. The best part is, you don’t have to pay any of it back. However, it doesn’t always work. Often campaigns do not reach goals, or they do, but it isn’t enough. It is definitely worth a shot, but you need to know your other options as well.

The post All You Need to Know About Business Crowdfunding appeared first on Credit Suite.

Smarking (YC W15) Is Hiring a Customer Support and Business Operations Manager

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All You Need to Know About Business Crowdfunding

Business crowdfunding is a legitimate business funding option. Not only can it work well for startups, but it is an option for growth and expansion projects as well. You Need Other Funding Options for When Business Crowdfunding Doesn’t Cut It However, crowdfunding isn’t a sure thing by a long shot. In fact, it is pretty … Continue reading All You Need to Know About Business Crowdfunding

Recurring Income Home Business Online– What To Look For

Recurring Income Home Business Online– What To Look For Do you intend to have the ability to take some time off whenever you intend to, as well as job whenever you want to? Do you wish to utilize your company with a network of companions that deal with you and also for you– without you …