Tag: Business

Beating Imposter Syndrome and More –10 Brilliant Business Tips of the Week

Have you ever struggled with not thinking you or your business was good enough? Then you’ll want to read on and scoop up our tips for beating imposter syndrome.

The Hottest and Most Brilliant Business Tips for YOU – You Could Be Beating Imposter Syndrome and More

Our research ninjas at Credit Suite smuggled out ten amazing business tips for you! Be fierce and score in business with the best tips around the web. You can use them today and see fast results. You can take that to the bank – these are foolproof! Beating imposter syndrome is in your future.

Stop making stupid decisions and start powering up your business. Demolish your business nightmares and start celebrating as your business fulfills its promise.

And these brilliant business tips are all here for free! So, settle in and scoop up these tantalizing goodies before your competition does!

#10. Please Don’t Hurt Me, Customer!

Our first jaw-dropping tip is all about the bane of ever businessperson’s existence – handling angry customers. Last week, we looked at turning complainers into promoters. Here’s more on that topic. 

The Self Employed says for every brand promoter, you’ll have some 26 brand detractors. Ouch.

As you would probably expect, there’s a lot of harm which detractors can do. And it can be tough to get over that.

One idea is to continue to build as many positive experiences as possible. While you’re not going to be able to please everyone all the time, you can please more people than not. Well done, you could drown out some of the negatives.

But that doesn’t solve them. So, here are some tips for getting to the heart of the matter.

Find Your Complainers and Address Them

What happens when your brand isn’t tagged by the complainer? What if they get really coy, and refer to your business as ‘the company that shall not be named’? Is all lost, in terms of trying to find the complaints and properly handle them?

One idea is to use software such as Daylite, or some other CRM software. The idea is to locate any mentioning of your brand online, and sometimes those aren’t perfect. 

Listen to the Complainers

Now, if you’ve been on the internet for more than five minutes, you’re well aware that there are plenty of people who troll. And there are a ton of folks who just complain for the sake of complaining.

But what about the legit complainers? In such instances, your task is to acknowledge that hey, they’re right. And then tell them what you’re going to do about it. It doesn’t have to be anything detailed. Rather, you can say you’re going to review the matter. That’s good enough. But don’t forget to follow up and do just that.

#9. Run the Customer Journey Smoothly

The next awesome tip is about avoiding problems in your customer relations. Main Street ROI notes there are several ways to, well, mess things up.

We’ve covered a lot of similar territory before, so we won’t repeat ourselves. Rather, we’ll concentrate on what we think is the biggest issue.

Don’t Let Leads Slip Through Your Fingers

Have you ever been to a website which you wanted to be at, but somehow you lost the connection? Maybe you got a phone call and clicked away. Or you restarted. Another possibility is you were there for a while and meant to save the information, but something distracted you. And then, oops, it’s gone.

Imagine being on the other side of this. Heck, you probably don’t have to imagine. You’re probably living it. And you may not even know you are.

The Big Net

Those lost prospects are a bit like fish falling through a bigger than normal hole in a fisherman’s net when he’s failed to repair a tear. That fisherman needs a second net. And so, do you.

But how?

Consider adding a lead capture form to your website. You want contact information. So, in return, provide something for free. In exchange for a name and an email address, try providing a white paper to download. Or maybe access to a webinar not found anywhere else.

Not every lost prospect will fall into your secondary net. But it’s senseless to not put out that net and at least try to catch a few of them.

If you are as passionate about succeeding in business as we are, please help us spread the word about how to take the plunge and save time and money – and your sanity! Start beating imposter syndrome today.

#8. Get a Marketing Network Going

Our following life-changing tip concerns networking for marketers. Wordstream lays it all out for us. Connecting to similar businesspeople doesn’t have to mean just going to a networking event and collecting a bunch of business cards. And then promptly tossing those cards into a drawer and not finding them for a year.

We felt the article had good ideas and recommend checking it out in its entirety. So, we’ll showcase just one of their tips.

Be Our Guest

Contact people and ask them to be your guest bloggers! And do the opposite – ask if you can write a guest post for them. 

The best part of this tip was to do the legwork in advance, including crafting good headlines. Make it painfully easy for the host to say yes.

A Few Extra Words on Blog Guest Posting, From Us

We’ve taken a few guest posts over the years, and here are a few things we’ve learned.

First, craft guest posting guidelines and refer people to them. Second, craft standard responses to people who suggest guest posts. These should cover instances like an acceptance, an acceptance with reservations, a denial with a chance to resubmit, and a flat-out denial.

Ask for a relevant sample. So, here at Credit Suite, it would be a blog post or article about business funding, business credit, or maybe banking. We’ve accepted some posts about related topics, like business insurance. But the idea is to match our theme as closely as possible.

And determine what your standards are going to be. One thing I have found is that, if the pitch letter has grammatical and spelling errors in it, then the pitch sample probably will as well.

Make your life easier and have the guest poster write up a short bio. And give them a chance to give input on topic, title, etc. 

Most importantly, don’t ever be afraid to say no. We’ve only accepted about 5% (if that) of all of the pitches we’ve ever received. 

#7. Social Media + Sales = Results

So, for our next sensational tip, we looked at integrating social media with sales. HubSpot says that you can use social media to, for example, prospect for customers. How? Check places like LinkedIn, and find out their location, work history, and any mutual connections you may have.

Plus, people put all sorts of stuff into their LinkedIn profiles. They might be the member of a surfing club. Or maybe they identify themselves as a graduate of Quinnipiac University. Getting talking points and ways to relate to your prospects can only help you.

Here’s our fave tip of them all.

Social Proof on Social Media

What’s social proof? It’s reviews, mainly. What do other people say about your product or service – or your company? Why not share that with sales. Most people love social proof, as it can often feel more authentic than what a pitchman would say.

Consider Amazon. If there are any reviews for a product at all, people read them. And sometimes those reviews make the difference between a sale… and no sale.

‘The sleeves are too short.’ ‘It didn’t fit my window but the company could not have been nicer. They quickly replaced my purchase with the right size and didn’t charge me for shipping.’ ‘It says it’s chew-proof, but my dog took it apart in less than half an hour.’ ‘The coffee comes with a neat little surprise – a small bracelet with stone beads! I’ll give it to my daughter. What a fun little extra!’

For the positive reviews, give them to sales to make the most of them. And as for the negative reviews, see tip #10 – and address them! 

#6. Cold Emails, Hot Leads

This tip is so cool, and it works! Mail Shake tells us all about how to best cold email prospects. 

We recommend checking out the entire article so instead we’re going to concentrate on one thing.

It’s Not All About You

‘I am writing because …’ ‘You’re on my contact list because I …’ ‘I wanted to tell you…’ ‘Please help me…’

Are you guilty of any of these?

<Raises hand.>

Why should your prospect buy from you when all you can talk about is yourself? Start with them. ‘First off, thank you for …’ ‘You’ve got a great… and I was hoping to…’ See what I mean?

Now, if you could please, go back and reread the first sentence in this article.

Yeah. That’s why it looks the way it does.

Oh and by the way, better cold emailing might just give you the confidence to start beating imposter syndrome – see tip #5.

#5. Start Beating Imposter Syndrome Today

Grab this mind-blowing tip while it’s hot! 

It’s all about beating imposter syndrome.

Freelancers Union says imposter is all too common in the world. And we would venture to say that it’s likely to be more common for new business owners. It’s easy to feel you’re not good enough.

Imposter syndrome takes a number of forms, and that includes resisting raising your rates or asking for extra money for scope creep. It also includes taking guff from clients because you feel you need them. Or maybe, deep down, you feel you somehow deserve it.

I know it all too well. Let me tell you my story.

The Storyteller’s Story

I’ve mentioned this before, that I’m a fiction author. And this came from a number of choices I made and actions I took. Of course.

But it wasn’t overnight. It happened after a number of years of writing. This meant putting thoughts on paper and then, later, realizing how cliché or tired they were. It meant throwing prose against a wall, seeing if it would stick.

I belong to a ton of writing groups, particularly on Facebook and Twitter. These groups are filled with folks who lie about how much money they are making. Some are, yes, telling the truth. But a bunch aren’t. They’re also filled with people who claim you can’t use the term ‘author’ unless you’ve been published. That instead, you must say ‘writer’, as if it were a lesser title.

That’s a load of malarkey.

Beating Imposter Syndrome in the Book

You're Not An Impostor! Credit SuiteSo, how did I first get published? I actually won a contest. Normally, I would have been terrified of entering one. Yep, I would have felt I wasn’t good enough. How could I possibly be good enough, with so many awesome authors out there? I had no experience and no portfolio. There was nothing I could point to and say, ‘I’ve been published at ___’.

Nothing. Nada. Zip.

So, for me, beating imposter syndrome meant putting myself out there and saying ‘oh, to hell with it! Let’s see what happens.’ I hesitated before I sent the email. How could I possibly measure up? I didn’t deserve that sort of success. But I sent the email anyway.

And, once I sent it, I second-guessed myself for a few months.

Some Solutions for Beating Imposter Syndrome

Our favorite tip was to surround yourself with people who are further along than you are. This is for the purpose of mentoring, yes. But I like to think it’s also for the purpose of seeing that it’s possible. Know that person was once in your position. And they made it – or at least they’ve made it further than you have. 

It’s very encouraging.

And, I might add, ignore the folks who claim you need to satisfy some nebulous, weird ideal which, bottom line, means nothing for your success or your career or industry. Of course, CPAs have to pass exams, and a long haul trucker must have the proper driver’s license. But if someone tells you the equivalent of you can’t be a real ___ without a totally unnecessary ___, then smile sweetly. And ignore them.

They’re only projecting their own insecurities on you.

And, here’s one more thing. When you’ve made it, or at least made it further – do the same for those not so far along as you. Don’t pull the ladder of success up behind you. Throw a rope down and help the next person up.

If you are as passionate about succeeding in business as we are, please help us spread the word about how to take the plunge and save time and money – and your sanity! Start beating imposter syndrome today.

#4. Businessperson, Motivate Thyself!

So, check out this spectacular tip, all about motivating yourself. Addicted 2 Success notes that daily motivation starts the night before. And we could not agree more!

So, here are a few tips, together.

The Night Before

Get to bed early. Yeah, really. That means, binge watch Netflix some other time. We would also add that sleep deficits can be downright dangerous. Try to get more sleep and try to get it early.

But before you turn out the light, plan the following day the night before. This means making a list, and it also means visualizing how to get each task accomplished.

By the way, this should help with insomnia. After all, if your tasks are already written down, and you’ve already considered how to get them accomplished, you might spend less time in bed, worrying.

Here’s one tip, just from us.

Batch What You Can

What the heck does that mean? It means getting your lunches together on Sunday, rather than every morning. It means choosing your clothes for the week, or at least the night before. It may also mean cooking something which will work for you for much of the week, like plain drumsticks, which can be served with mashed potatoes and gravy one night, and with buffalo sauce on another night. 

You’re going to need to get dressed on Thursday and make dinner on Wednesday. You’ll have to carry your lunch (or at least snacks) on Friday. And you’ll need to, say, pay for coffee with exactish change on Monday. 

Since you already know this stuff is happening in advance, stop behaving as if it’s blindsiding you! It isn’t. So, be prepared, and you’ll be a far happier person. And that will translate into improved motivation.

#3. You Don’t Have a Big Budget; But You Can Still Have Big Motivation in Your Business

So, it’s not your imagination: this winning tip can help you motivate your employees – even when the Benjamins just aren’t there. Effortless HR tells us flexibility can be an excellent motivator for people. In fact, parents tend to value it more than a higher salary! So, if you can allow an employee to work from home or later or earlier in the day, do it.

Here’s our fave tip from the pack.

Tradition!

So, this is a neat idea, and it doesn’t have to cost a lot. What can your business do together which won’t break the bank? I once worked for a company which did a potluck lunch once per quarter. People either made something or brought paper plates or soda or the other trappings. Or they contributed a little cash. 

Sitting down together was fun and relaxing. It took us all out of our everyday lives for a few hours, every three months. It’s easy to do something like this. And – bonus – how about asking your employees what they want to do?

#2. What’s in a Business Name?

Our second to last unbeatable tip can give you a new perspective on naming your business. Crowd Spring reveals all about naming your business properly. We’ve covered similar ground on our blog. There are ways to name your business which can lock you out of financing. 

Don’t do that.

This article provides a few other reasons why one name or another could be a pitfall for your business. We suggest you check out the article in its entirety for examples and advice on how to avoid issues.

So, here’s one issue they outlined.

Guilt by Association

Disney recently bought 20th Century Fox and Fox Searchlight Pictures. And they promptly dropped the ‘Fox’ from both acquisitions.

Never mind that these properties aren’t owned by Murdoch (the folks who own Fox News). Disney didn’t want to alienate any potential customers. By dropping the term, they neatly sidestepped that.

For Disney, it was also convenient, as they would have likely been renaming those properties anyway. So, they changed the names to better associate them with the Disney brand. At the same time, they dropped a term which could have turned off some customers.

Smart folks, those Disney people.

#1. Clean Office, Organized Mind

We saved the best for last. For our favorite remarkable tip, we focused on neatening up your office. Noobpreneur says too much clutter can make your job harder. After all, what was the last time you just knew you had a piece of paper on your desk, but now you’ll be damned if you can find it?

This is not good, and you know it! So, getting organized makes sense not just to keep your work area germ-free (ish – we all know there are going to be germs) – it can potentially help you keep clients. 

Here’s the best tip, we felt.

Paper 1, 2, 3

Your paper should have three potential homes. This can, by the way, work for virtual documents as well.

  1. You haven’t gotten to it yet.
  2. It’s a work in progress.
  3. You’re done – so you file the paper. Or you toss it, if appropriate.

We would argue that you may need to make #2 a little more granular. One idea could be a separate folder or the like for a work in progress where you’re waiting for something from someone else. Or you might want to separate time-sensitive items in pile #1. 

You do you. But please, get organized!

So, which one of our brilliant business tips was your favorite? And which one will you be implementing now? 

If you are as passionate about succeeding in business as we are, please help us spread the word about how to take the plunge and save time and money – and your sanity! Start beating imposter syndrome today.

The post Beating Imposter Syndrome and More –10 Brilliant Business Tips of the Week appeared first on Credit Suite.

How Do I Build Business Credit? A Step-by-Step Guide

Building business credit is entirely different from building personal credit.  With personal credit, it simply builds passively as you use credit throughout the course of your life.  Business credit is a different story. You have to actively take steps to ensure that your business transactions are reported on your business credit report, not your personal credit report.  

How Do I Build Business Credit? 3 Definitive Steps for Building Business Credit

When you ask yourself how do I build business credit, you have to understand that business credit works differently than personal credit.  For example, unlike personal credit, there are at least 3 distinct steps you need to take to build business credit. However, it can be helpful to first understand the relationship between business credit and fundability.  This will provide much needed perspective as you work through each step.

Check out our best webinar with its trustworthy list of seven vendors to help you build business credit. 

How Do I Build Business Credit? The Relationship Between Fundability and Business Credit

Business credit is important to the fundability of your business.  However, it is not the sole source of your business fundability. A foundation of fundability is necessary for business credit, and business credit is necessary for fundability.  If you have poor business credit, your business cannot be fundable. Likewise, if your business is not set up to be fundable, you will not be able to build business credit. So, now you are really asking yourself, how do I build business credit? 

How Do I Build Business Credit Step 1: The Foundation of Fundability

If you ever want your business to be fundable on its own, apart from you, it must be set up in this way.  That’s not to say that your personal credit will not ever affect fundability, but if you do not set your business up to be a separate entity, business credit will never even be on the table. 

Like any foundation, it is best to start at the beginning.  It will be faster and easier if you do.  However, if your business is already up and running, you may not have that option.  That’s okay. It’s never too late to start, but start now.  The longer you wait the harder it will be, for several reasons. How do you set up a fundable foundation?  

Separate Contact Information

The first answer to the question of how do I build business credit,  is to separate your business from yourself. One step in this process is to make sure you and your business have separate contact information.  Your business needs 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.  You don’t even have to have a fax machine.  

In fact, you can easily get a business phone number and fax number that will work over the internet instead of phone lines. Even better, the phone number will forward to any phone you want it too so you can simply use your personal cell phone or landline.  Whenever someone calls your business number it will ring straight to you. 

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 with appearances. 

You can use a virtual office for a business address. This isn’t what you may think.  it is a business that offers a physical address for a fee, and sometimes they even offer mail service and live receptionist services.  Also, there are some that offer meeting spaces for those times you may need to meet a client or customer in person if you do not have a place.

Get an EIN

The next thing you need to do is get an EIN for your business.  This is an identifying number that works in a way similar to how your SSN works for you personally.  Some business owners use their SSN for their business. However, it really doesn’t look professional to lenders, and it can cause your personal and business credit to get all mixed up.  When you want to work on fundability and business credit, you need to apply for and use an EIN.  You can get one for free from the IRS.

Make Sure You Incorporate

Incorporating your business as an LLC, S-corp, or corporation is necessary to both fundability and business credit.  It lends credence to your business as one that is legitimate. It also offers some protection from liability. 

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.  What is going to happen is that you are going to lose the time in business that you have.  When you incorporate, you become a new entity. 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.  Not only is it necessary for fundability and for building business credit, but so is time in business.  The longer you have been in business the more fundable you appear to be.  That starts on the date of incorporation, even if you were in business before that time.

Open a Business Bank Accounthow do I build business credit Credit Suite

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. 

Also, there are several types of funding you cannot if you do not have 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 one. That means, you cannot take credit cards payments.  Studies show consumers typically spend more when they can pay by credit card.

Pay Attention to Licensing Requirements

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. 

Make Sure Your Website is Professional 

How can a business website can affect you ability to get funding? These days, you do not exist if you do not have a website.  However, having a poorly put together website can be even worse.  It is the first impression you make on many, and if it appears to be unprofessional it will not bode well for you with consumers or potential lenders. 

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.  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. 

How Do I Build Business Credit Step 2: Get Accounts Reporting

This is the part that a lot of business owners miss the boat on.  It isn’t easy to get credit in the name of your business when you don’t have credit to begin with. There are a few tips that can help you jump over this hurdle however.  Once you break this wall down, you can work your way up through the credit tiers. 

Check out our best webinar with its trustworthy list of seven vendors to help you build business credit. 

The other part that is missed by many is that you have to have a D-U-N-S number for this to work. Dun & Bradstreet is the largest and most commonly used business credit reporting agency, and if you do not have a D-U-N-S number, you do not have a file with them.  If payments are reporting to them and there is no corresponding D-U-N-S, the payments will not be counted. To build business credit you absolutely have to have this number. Find out more about building business credit with D&B here. 

Tip 1: Ask Current Vendors to Report Payments to Credit Agencies

Vendors you already have a relationship with may be willing to extend credit without a credit check.  If not, they may offer net 30 terms on invoices. They don’t have to, so you will have to ask. The worst that can happen is they say no.  If they say yes, ask them to report the payments to the business credit agencies. 

Tip 2: Ask Utility Providers to Report Payments

You pay things like utilities, rent, and internet each month anyway.  Ask those providers to report your payments to the business credit reporting agencies.  If they say yes, make sure your accounts are set up in your business name with your business contact information.  Again, the worst they can say is no.

Tip 3: Work with Starter Vendors in the Vendor Credit Tier

How do I build business credit?  Starter vendors are the business credit building secret that most business owners are unaware of. There are certain vendors, known in the business credit building world, as starter vendors. These are part of what we like to call the vendor credit tier.  They are certain retailers that will extend Net 30 terms in your business name without a credit check. Then, after you pay, they will report those payments to the business credit report agencies (CRAs). 

This is how you can get the ball rolling with business credit.  Since they do not check your credit score, it doesn’t matter than you do not have one.  Of course, they do have other risk reducing techniques in place. These vary by vendor. Here are a few such starter vendors to help you get started.  When you ask yourself how do I build business credit, starter vendors are a huge part of the answer.  

Quill Office Supplies 

Quill sells office supplies as well as cleaning and packaging supplies. Products range from office furniture and printer ink to snacks and coffee. 

They report to D&B. If you do not already have a PAYDEX score, you will have to place an initial order first. Generally speaking, they establish a 90-day prepay schedule, and if you order each month for three months, they will most often approve you for a Net 30 account. 

Go here to get started with Quill.

Grainger Industrial Supply 

Grainger sells power tools, pumps, hardware and other things. In addition, they can handle maintenance of your auto fleet. You need a business license and EIN to quality, as well as a D-U-N-S number.

You can apply by fax or over the phone. If you need less than $1,000 in credit, you only need a business license for approval. For over $1,000, you will need trade and bank references.  

If you are just starting out and do not have references, the $1,000 is plenty to get you started building your business credit. Check them out here.  

Behalf.com 

Behalf is way of getting paid through an app, but they also offer funding. The more you have your customers pay you through Behalf, the more likely Behalf is to offer you favorable terms when it comes to funding.  

Funding can be through purchase financing or a virtual Mastercard option. Terms run from Net 30 to 180 days, and they report to Dun & Bradstreet, Experian, and Equifax. This fact alone, that they report to all the major credit reporting agencies, makes them an extremely valuable tool in building business credit. 

Find out more here. 

After you have 8 or so of these types of accounts reporting payments to your business credit report, you should have a strong enough score to move on to the next tier. We call this the retail credit tier.  They are retailers as well, but offer more traditional credit. These are credit cards for use at specific stores such as Office Depot or Lowes. This is also sometimes referred to as store credit. 

After you have several of these store credit account reporting, you can apply for cards in the fleet credit tier.  These are gas cards with companies such as Shell and Fuelman. They can be used for fuel and auto repair and maintenance only. 

Lastly, with accounts reporting from all these tiers, you should have a score strong enough to apply for cards from what we call the cash credit tier.  Of course, that is only if you have been making payments consistently on time. 

These are traditional credit cards that are not attached to a specific store or tied down to certain types of purchases.  They can be used for anything and everything. In addition, they often have better interest rates and nice rewards programs. 

How Do I Build Business Credit Step 3: Credit Monitoring

The last step in building business credit sounds kind of passive, but it is in fact very active and very important. You must actively monitor your business credit reports for a number of reasons.  First, you need to see that all accounts are reporting. Not only that, but you need to see how many you have reporting so you know when to move on to the next tier. 

Check out our best webinar with its trustworthy list of seven vendors to help you build business credit. 

Other than that, you have to monitor your report to ensure you get any mistakes corrected and that all information is updated as needed. You must request corrections in writing, and send copies of supporting documentation.  You can monitor with the CRAs directly, but we can help you monitor with D&B and Experian here for a fraction of the cost.  

How Do I Build Business Credit? One Step at a Time

Business credit is built through a very specific process. It isn’t hard, but it isn’t passive either.  It does take effort. You have to ensure your business is set up to be fundable. In addition, you have to know where to go to get accounts reporting initially.  After that, it’s all about making wise decisions and managing your credit responsibly. 

Don’t forget, business credit is just one part of overall fundability.  Learn more about what else can affect fundability here.

The post How Do I Build Business Credit? A Step-by-Step Guide appeared first on Credit Suite.

Stop Being Lonely Leaders and More –10 Brilliant Business Tips of the Week

A lot of entrepreneurs are lonely leaders. Are you one of them? Then read on, for tips on how to assuage your loneliness and improve your business.

The Hottest and Most Brilliant Business Tips for YOU – Advice for Lonely Leaders and More

Our research ninjas at Credit Suite smuggled out ten amazing business tips for you! Be fierce and score in business with the best tips around the web. You can use them today and see fast results. You can take that to the bank – these are foolproof! Help and advice for lonely leaders, and more!

Stop making stupid decisions and start powering up your business. Demolish your business nightmares and start celebrating as your business fulfills its promise.

And these brilliant business tips are all here for free! So, settle in and scoop up these tantalizing goodies before your competition does!

#10. Bring Generation Z into the Fold

Our first jaw-dropping tip is all about attracting Gen Z to the workplace. You know, millennials. Effortless HR says work is changing and hiring managers need to change with it. This means, among other things, adapting to the millennial way of life. It means political correctness (you know, courtesy) and even safe spaces.

It also means multitasking and digital nativism. What sort of technology did you use in high school and college? Millennials used PCs, laptops, and smartphones. Tech is in their DNA.

Your intrepid blog writer, heh, used pen and paper. Computers were found in a lab and printed on green and white paper with sprocket holes. 

Here’s one tip we really liked.

Guided Career Choices

The truth is millennials aren’t necessarily the only people who are having issues with their career choices. Heck, I had no idea what I wanted to do for years. It’s not so easy to figure out what will make you happy for decades. It’s rather like a marriage.

For me, my ideal career hadn’t been invented when I graduated from college or even law school (1986). So, don’t be 100% shocked if Generation Z doesn’t know what will gladden their hearts forever and ever (or at least until retirement). This is also, in part, a function of our gig/specialized/personalized economy. We all want our own choices in this area. And why not? We’re getting our choices in every other aspect of our lives.

So, don’t be surprised if your interviewees aren’t certain of what they want to do with themselves. They might not know what they want to be when they ‘grow up’. And that’s okay.

How do you work with these people? Acknowledge the difficulty in knowing the future. And embrace the unknown. At the same time, don’t treat them just like a bunch of interchangeable parts. They’re people, not widgets. Giving your Gen Z (and all other) employees a measure of autonomy will empower them and give them an emotional investment in your business’s success.

It’ll also take some of the decision-making burden off you. You might even stop being lonely leaders (more on that later).

#9. Lights, Camera, Marketing!

The next awesome tip is about borrowing from the world of media for promotional ideas. Wistia notes we’re already preparing and releasing long form content. It’s a lot like a short form film. You know, the kind that gets Oscar nominations and wins while you’re getting more popcorn?

Er, sorry documentary and short subject film makers. But you know it’s true.

Getting back to the point (and I do have one), the idea is to promote your media like the big media companies do.

So, this may or may not work for your small business. You might not see this as being a viable strategy for a long haul trucking company or a nail salon.

But there was one strategy which should work for any business.

Share Your Positive Feedback, Awards, and Nominations – Everywhere 

Chances are incredibly high that you’ve seen film reviews at some point in your life. Of course you have!

Did you mind the filmmakers tooting their own horn this way? Probably not.

So why do you have trouble tooting your business’s horn? Or, if you don’t, then why are you having trouble finding this positive feedback? And why aren’t you sharing it?

Positive feedback can come in all sorts of formats. There are reviews on Google or Yelp. Maybe you’ve got Sotellus or Better Business Bureau feedback. 

There is no reason why you can’t share this positive feedback on social media. And if it’s not perfectly tailored to social (maybe it’s way over Twitter’s limits, for example), why not talk to your top customers? Ask them if you’re okay with paraphrasing. Or maybe you can ask them for something short specially for the platform.

Be nice, always. Say please and thank you like you learned as a child. And ask! 

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#8. Speed Out of the Starting Gate

Our following life-changing tip concerns growing your business during its first year. Entrepreneurship Life lays it all out for us. 

Starting a business is an exhilarating, fun, scary, difficult, risky, fascinating wild ride. Fast growth isn’t guaranteed from the get-go. This article has some great ideas for kickstarting growth from the very beginning.

Our favorite tip was strategic planning. It can be tempting to just take any work you can get at the start. And maybe you should, at least at times. At the same time, planning strategy means having an idea of the kind of customers you want, and how much you want to make. Maybe your first clients are, shall we say, problematic at times. Planning means working directly toward easier to work with clients. It may even, eventually, being in a position to fire the clients who are more trouble than they’re worth. 

But you still need to plan. Business is a place where you need to be intentional pretty much all the time. And that means here, too.

#7. Digital Marketing to the Max

So for our next sensational tip, we looked at squeezing the most out of your digital marketing budget. The Self-Employed says that your first moves may be a touch counterintuitive. You need to have updated content and a good website which loads quickly. Pay attention to SEO and SEM (search engine marketing – this tends to mean paid search). And connect to a well filled-out Google My Business Profile.

Consider this. A lot of these are free or close to free activities (of course, labor isn’t free). And a faster website or better SEO aren’t just good for digital marketing. They’re also good for sales, potentially pulling prospects down the sales funnel more quickly. 

And that never hurts!

Here’s the tip which really stood out for us.

Up the Customer Experience to Infinity

Okay, well, maybe not exactly infinity. But generating and promoting and continuing an excellent customer experience is a valuable form of advertising. One reason is because you can stimulate word of mouth, a very valuable form of marketing. And another is that a fantastic customer experience can give you a reason to suggest customers review your business online.

By the way, even bad reviews link back to your site and can help with SEO.

Just sayin’.

#6. A Business Proposal (Engagement Ring not Included)

This tip is so helpful, and it works! HubSpot tells us all about writing a business proposal. There is a rather specific sequence of operations for this task.  While it’s not identical to a business plan, there are some places where the two documents overlap.

The article goes into significant detail, and it adds a template for free which anyone can use. That alone is worth the price of admission.

Business proposals are terrific professional documents. They set expectations and they get deliverables in writing. Are they contracts? Not necessarily – they’re just you proposing what you’re going to do for someone else. But if there’s no contract in writing, they might be reviewed and referred to. 

Clear communications are always a good idea. And covering your company in case things go south is an even better idea.

#5. Lonely Leaders – You Are Not Alone

Grab this mind-blowing tip while it’s hot! 

You know what they say about the top. There are a lot of lonely leaders out there. Are you one of them?

Young Upstarts says leaders can shut themselves off from others when they become leaders. This is especially the case when they are promoted from within. And that makes sense – after all, now the dynamic with coworkers has changed. If you’ve become your colleagues’ boss, then you probably can’t go out for a beer with them anymore and complain about your boss.

Ewps.

We really liked their idea to bat back questions from the people who report to you with more questions. As in, ask them what they think. And do so rather than spending your nights just looking for solutions. Talk about lonely leaders! And, let’s face it, you’re not being paid for that time. Not to be solely mercenary about it but burning the midnight oil isn’t making you a better leader much of the time. It’s not even helping your bottom line.

An Extra Tip and a True Story

So, there’s one tip which this article didn’t cover. Gather ‘round the electronic hearth, ‘cause it’s time for a true story.

Lonely Leaders Credit SuiteI love channeling my best managers. I’ve had great managers and I’ve had horrible ones. Very rarely, they fell into the middle. But usually, they were in one camp or another. 

I also love channeling the opposite of my worst managers.

Back in the day, I had managers who sat in their little ivory tower. They rarely emerged to do anything beyond commuting or getting lunch – which they always got alone or with the other top level managers. This was a law firm and these were the partners. I was fresh out of law school, waiting to hear if I had passed the bar (I did; my coworker who was also waiting didn’t. Sorry, Joe).

The ivory tower guys didn’t know how anything was going unless it was making them money, or not. Did I feel seen? My God, no. Did I feel appreciated? Not even close. Spoiler alert – I was gone in six months.

Connection

Lonely leaders, at least in the case of that law firm, brought it all upon themselves. It would have been easy to open the office door and say hi. This is what small talk is for. Yeah, you might not care about the local sports team or the weather. But it’s a way to connect with others. We spend far too much time at work in our lives to shut ourselves off from all human contact.

And one more thing, although no one wants to think about it. Lonely leaders, you may be working yourselves into an early grave. You may love your business. And you may need the money. But please don’t do this.

It’s not worth it.

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#4. Top Off Your Productivity Tank

So check out this spectacular tip, all about maintaining optimal productivity. Noobpreneur notes that people work in all sorts of ways. We have differing energy levels at different times of day. Your early bird colleague might conk out at five. Your night owl coworker could be awesome at 4 PM. As a result, and it’s a good bit of advice for pretty much anything in life – know your strengths and play to them.

The best tip in this article was perhaps and obvious one – to plan. How often do you stare at your wardrobe in the morning and are uninspired? Or it’s time for supper and you have no idea what you’re making? Wouldn’t it be easier to plan those sorts of activities in one block?

The same is true for work. Got a bunch of tasks to do? Then figure out priority (or ask). Determine who can help you or who might wait for something from you. Or vice versa. While you’re waiting for something on Task #1, there’s no reason you can’t start Task #2. You get the idea. Mapping this all out in advance makes it considerably easier.

#3. Convert Complainers to Brand Champions

So it’s not your imagination: this winning tip can help you convert detractors into promoters. SCORE tells us a score of 6 or less (out of 10) is seen as being the rating of a detractor.

Say what?

Seriously, how often do you fill out a survey and hit 5 or 6 out of 10? How often do you feel such a rating is neutral, rather than negative? Raise your hand if that’s 100% of the time.

(raises hand)

But I digress – back to the action.

The article is great, and it goes into depth about how to find detractors online, even when they don’t tag you or your products. We highly recommend reading it in its entirety so let’s concentrate on one tip in particular.

Fix the Problem or Offer Incentives

We’ve probably all seen this in action at one point or another. You complain about, say, your stay at a hotel. And the hotel responds. They offer you a coupon for a free meal for your next stay. If you don’t want it and say you’ll never darken their door again, they may offer a minor discount instead. Or they might offer to have you join a task force or fill out a survey so as to try to improve future service.

These are great ways to pull a detractor into the promoter camp (or, at least, into neutral territory). Often the value of these incentives isn’t too high. Even if your free meal runs $1000, your detractor spreading all sorts of negatives about you online is often worth a lot more.

It’s a simple cost-benefit analysis. 

And the task force or survey idea is pure genius. Give people a say in your future operations. Will you take every suggestion to heart? Of course not. But providing a soapbox can be very empowering to people. Because even your detractors want to feel listened to.

And they might just have something valuable to say.

#2. Cool Down Your Burnout

Our second to last unbeatable tip can give you a new perspective on getting over burnout. Entrepreneur reveals all about getting your mojo back. The slideshow is worth looking at in its entirety.

Our biggest takeaway from it was that people – surprise – find different ways to get their motivation back. One thread which ran through all of the methods was to do things for yourself and to focus inwardly. Whatever form that takes, then do that. 

So, what do I mean? 

It may take the form of getting away or getting exercise. Or it can be getting more education. Another fascinating tip was to talk to people who are different from you. The contrariness can be stimulating.

And through it all, the same message is on repeat. You do so much for others when you run a business. And that can understandably be draining.

So, do something for yourself to get your spark back.

#1. Be Intentional with SEO, Always

We saved the best for last. For our favorite remarkable tip, we focused on easy SEO. Copy Blogger says there are a few areas where you might forget – at times – to improve the SEO on a post or page.

Don’t.

We love the Yoast plugin, and we strongly suspect the Yoast plugin is the star of this highly informative article. We urge you to check out the article as there are subtle details and nuances which you should not miss.

So, let’s concentrate on one tip.

301 Redirects

Don’t know what they are? They’re detours for when a post or page is no longer working. But it doesn’t have to be the entire page that isn’t working. And that’s why this tip is so brilliant. 

Welcome to the land of the limited-time offer. What happens when your Valentine’s Day (for example) promotion is over? Do you take the page the offer was on down?

Nope! You redirect people.

So, where should you redirect people? The best place is probably somewhere on the site where you have a more evergreen offer. Technically, you could just point people to your next limited-time offer. But you’d be creating far more future work for yourself when the second limited-time offer expires and now you’re left with two pages to redirect, versus just one.

Redirects are also great because your older limited-time offer page might still have SEO traction and even backlinks directing to it. Unpublishing it will lose all of that. Redirecting preserves all that lovely link authority.

Keep. Your. Posts and Pages.

So, which one of our brilliant business tips was your favorite? And which one will you be implementing now? 

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How Does Business Credit Work?

Most business owners know that business credit is a thing, but they do not understand how it works.  Many have the idea that all they have to do is apply for credit with their business name to begin building it, but that’s not quite right.  Others have no idea it even exists. You cannot successfully build business credit if you do not understand how it works. So, how does business credit work?

Everything You Need to Know About How Does Business Credit Work from the Ground Up 

The first thing you need to know about how does business credit work is that it does not build passively like consumer credit. You have to actively work to build it. This starts with how your business is set up.  It needs to be set up to be a fundable entity separate from you personally. This is for many reasons, but for business credit it keeps your business and personal credit from getting all mixed up. 

How to Build a Fundable Foundation for Business Credit

We like to call this a “fundable foundation” or a “foundation of fundability.”  Basically, it is setting up your business in a way that makes it appear legitimate and credible.  Some of the factors that go into this are common sense, others may surprise you.

How Does Business Credit Work?  Contact Information

The first step in setting up a foundation for business credit is to get your business its own phone number, fax number, and address.   Surprisingly, this doesn’t mean you have to get a separate phone line, or even a separate location.  You can run your business from your home or on your computer, and you do not even have to have a fax machine.  Find out more about how this works here and here. 

Check out our best webinar with its trustworthy list of seven vendors to help you build business credit. 

How Does Business Credit Work? EIN

Your business needs and EIN.  This is an identifying number for your business that works the same way your SSN works for you personally.  It looks more credible to use this number rather instead of your SSN for business loan applications.  Having an EIN is also important for building business credit, as it separates your business accounts from your personal accounts. You can get one for free from the IRS.

How Does Business Credit Work? Incorporating

Incorporating your business as an LLC, S-corp, or corporation is necessary for building business credit.  It offers some liability protections, but it also separates your business from your self for definitively, which is essential to the business credit building process. 

Which option you choose has more to do with your budget and how much liability protection you need than it does for business credit and fundability.  The best thing to do is discuss the issue with your attorney or a tax professional.  

Incorporation has to happen as soon as possible.  Time in business counts, and it starts over at incorporation.  This is true regardless of how long your business has been in operation before incorporation.  Not only that, but any positive credit history you have related to your business up until the point of incorporation will be lost as well.

How Does Business Credit Work? You Need a Business Bank Account

You have to open an official business bank account.  There are a few reasons for this.  First, it even further establishes your business as a separate entity. Next, it will help you keep personal and business finances separate.  This is beneficial for tax purposes. 

In addition, there are several types of funding that will not be available to you without a business bank account.  Some lenders and credit cards want to see one.  Also, it’s not possible to get a merchant account without a business bank account. That means, you will not be able to take credit card payments.  Consumers tend to spend more when they can pay by credit card.

How Does Business Credit Work? Having the Proper Licenses Matters

A business has to have all of the necessary licenses it needs to be fundable.  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. 

How Does Business Credit Work? A Professional Website is Important

You would probably never dream that your business website could affect your ability to get business credit. However, in today’s world, we all run to the internet first for virtually everything.  Often, the website is the first impression your business makes on customers and even lenders.  A poorly put together website does not make a good impression.

Spend the time and money necessary to ensure your website is professionally designed and works well.  Do not use a free hosting service.  Rather, pay for hosting. Along these same lines, your business needs a dedicated business email address.  Make sure it has the same URL as your Website.  Free email services such as Yahoo and Gmail are not sufficient.

How Does Business Credit Work? D-U-N-S Number

If you do not have a D-U-N-S number, you will not have a credit file with Dun & Bradstreet.  Since they are the largest and most commonly used business credit reporting agency, that would seriously affect your business credit potential. 

Check out our best webinar with its trustworthy list of seven vendors to help you build business credit. 

It’s free and easy to get a D-U-N-S number.  You just go here.  However, be aware that they will try to sell you a number of other products that you do not need.  Just put your blinders on and keep pressing toward the goal of getting that number, which again, is free. 

How Does Business Credit Work? Next Steps

After you have your business set up as a fundable entity, you will have to get accounts reporting to the business credit reporting agencies (CRAs.)  It’s not as easy as just applying for credit and making payments. Here’s why. You have to have business credit to get business credit. Until you have and established score, most lenders will not approve you for funds.  

How do you get around this? The first thing you can do is talk to those vendors you already have a relationship with. With an established relationship, they may be more likely to extend credit without a credit check.  Be sure to ask them if they will report however, because if they will not it doesn’t matter. 

You can also ask utilities and other monthly payments to report.  Electric companies, phone companies, and even internet providers might report your payments if you ask.  They don’t have to, but it can’t hurt to try.

In addition, there’s a little secret known as the vendor credit tier.  These are starter vendors that will award net terms on invoices without a credit check, and then they will report your payments to the CRAs. This will get the ball rolling. 

How do I Find Starter Vendors?

Vendors that fall into the vendor credit tier do not necessarily advertise themselves as such.  As a result, they can be hard to find on their own. Here are a few options to get you started. 

Grainger Industrial Supplybiz credit explained Credit Suite

Grainger sells power tools, pumps, and hardware among other things. You can apply by fax or phone. If you need less than $1,000 in credit, you only have to have a business license for approval. For over $1,000, you will need trade and bank references. 

If you are just starting out and do not have references, the $1,000 is plenty to get you started building business credit. Go here to get started. 

Quill Office Supplies

Quill is popular and easy to get started with. They sell office supplies as well as cleaning and packaging supplies. Generally, you can get most of what you would use in the everyday running of a business from them. 

They report to D&B. If you do not already have a D&B score, you will have to place an initial order first. Typically, they establish a 90-day prepay schedule.  Then, if you order each month for three months, they will approve you for a Net 30 account.

Get started with Quill here.

Uline Shipping Supplies

Uline reports to Dun & Bradstreet.  They carry shipping boxes, dollies, janitorial supplies, and more. Since they report to D&B, you have to have a DUNS number before you get started with them. They will also ask you for a bank reference and two other references. In the beginning, you may need to prepay before they will approve Net 30 terms. 

Find out more about Uline here. 

Behalf.com

Behalf is way of getting paid through an app, but they funding as well. The more often you have customers pay through Behalf, the more likely they are to offer you favorable funding terms.

They offer both purchase financing and virtual MasterCard options. Terms run from Net 30 to 180 days, and they report to Dun & Bradstreet, Experian, and Equifax. This fact alone, that they report to all the major credit reporting agencies, makes them extremely valuable when building business credit.

Find out more here. 

How Does Business Credit Work? The Other Credit Tiers

The vendor credit tier is like a gateway tier to the other credit tiers.  It goes a little something like this. 

Retail Credit Tier

Once there are 5 to 8 or more vendor trade accounts reporting to at least one of the CRAs, then move to the retail credit tier. For example, Lowes falls into this tier and reports to D&B, Equifax and Business Experian. They need to see a PAYDEX score of 78 or higher. The PAYDEX score comes from D&B, so you need a D-U-N-S number for anyone that uses PAYDEX.  Most do.

Fleet Credit Tier

Once you have enough retail accounts reporting, move to the fleet credit tier. This is credit that you can only use to buy fuel, and to fix or maintain vehicles. One example is Shell, who reports to D&B and Business Experian.  They want to see a PAYDEX Score of 78 or better and a 411-business phone listing. 

In addition, Shell might say they want a certain amount of time in business or profits. But if you already have sufficient vendor accounts, that may not be necessary. 

Cash Credit Tier

Here is a good example of how business credit works.  If you handle your credit responsibly in the other tiers, you can start to apply for cards in the cash credit tier. 

These are service providers such as Walmart and Dell, and also Home Depot, BP, and Racetrac. They are usually MasterCard credit cards. If you have 14 trade accounts reporting, then these are in reach.

Check out our best webinar with its trustworthy list of seven vendors to help you build business credit. 

How Does Business Credit Work? The Application Process

Having your business set up properly is only the first step.  Once you start applying for business credit you have to use your business information.  Use your business address, business phone, and EIN. Do not use your SSN as part of the credit application, but be aware that they may ask for it, along with your birthday, for identification purposes due to fraud concerns. 

By using your business information and not your personal information, you ensure your business credit transactions are not mixed up with consumer credit transactions.

Business Credit is Just One Part of Fundability

Fundability is composed of many layers, and business credit is just one part with layers all its own.  It is a large part of fundability, but there is a lot more out there. One thing is for sure, you have to have the same foundation for both business credit and fundability, so it’s best to take care of that part as soon as possible.  To find out more about fundability and what affects it, go here.  

Why Is Business Credit Important to Fundability?

When you look at fundability, personal credit affects it as well.  Knowing that, it’s natural to question why business credit matters at all.  Why do we need two different kinds of credit? There are few reasons, but two of them are glaring once you understand how it all works. First, it costs a lot to run a business, and personal credit limits are not as high as business credit.  If you try to put business expenses all on personal credit, you are going to hover near your limits, which will have a negative effect on your personal credit score. That could keep you from being able to get a loan for a house or a car due to simply running your business. 

Also, if you have a good business credit score, you will likely have higher credit limits available to you. This will help ensure you have access to the funds you need to run and grow your business. 

How Does Business Credit Work? It Is a Process

When trying to answer the question of how does business credit work, you have to remember that it’s not a short answer.  There is a process that has to be followed. It starts at ground level with the foundation. Then you have to travel up several credit tiers, using your credit responsibly and making payments on time as you go.  This will ensure you build a strong business credit score that will only increase your fundability. 

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The Muse Is Hiring a Data Analyst, Business Intelligence and Analytics

Article URL: https://www.themuse.com/jobs/themuse/data-analyst-business-intelligence-analytics

Comments URL: https://news.ycombinator.com/item?id=22361157

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Minority Business Loans and Grants: Their Powers Combined Can Help Your Business Explode

Like peanut butter and jelly, minority business loans and grants make for a powerful combination.  On their own, each can be a phenomenon, but put them together, and you have a match made in small business funding heaven.

Use Minority Business Loans and Grants Together for a Powerful Combination

Minority loans and grants can be great tools when paired with other funding sources. But how do you get them? How do you use them together?  Which ones are best for you? We know how to find the answers to all of these questions and more. 

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

Minority Business Loans and Grants: Start with The Small Business Administration

It’s impossible to talk about business loans and not mention the SBA.  While they do not lend funds directly, they do handle the administration of many  loan programs that help all small businesses get the funds they need through partner lenders.   Many of their programs, though not specifically for minorities, work fabulously for minority business owners. 

7(a) Loans 

This is the Small Business Administration’s most known program.  It provides federally funded term loans up to $5 million. The funds can be used for a number of purposes,  including 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. 

504 Loans 

504 loans are also available up to $5 million.  They can be used to buy machinery, facilities, or land. Typically, business owners use them to fund expansion.  They work especially well for commercial real estate purchases. 

Microloans 

Microloans are loans for $50,000 or less. They work well for starting a business, purchasing equipment, buying inventory, or general working capital. 

SBA Express Loans 

These are fast turnaround loans, with the SBA taking 36 hours or less to give a decision. There is less paper work as well, which is part of what makes express loans great if you qualify. 

SBA Community Advantage Loans minority business loans and grants Credit Suite

This is a pilot program running through 2020.  It also has the potential for extension. Its purpose is to promote economic growth in underserved areas and markets. Decision makers look past such things as poor credit or low revenue if the business has the potential to create jobs or promote economic growth in underserved areas. 

These are some of their most popular programs. The Small Business Administration does so much more for small businesses in addition to this.  Get more details on the SBA, these loan programs, and additional resources offered by the Small Business Administration here.    

Minority Business Loans and Grants: Private Lenders

Though not specific to minorities, some private lenders offer products that work well when paired with grants to help a business grow and expand.  Here are just a few examples. 

BlueVine

BlueVine has several financing options.  For example, they offer term loans, invoice financing, equipment financing, lines of credit, and merchant cash advances.  As a requirement, you have to be in business for at least 6 months. If you need a term loan or a line of credit, then they require a minimum annual revenue of $100,000.  For invoice factoring, the minimum credit score is just 530! If you want a line of credit or term loan, you will need a minimum credit score of 600. They have an A+ rating with the BBB.  Find out more about BlueVine in this review. 

OnDeck

OnDeck has lines of credit and term loans with fixed interest rates.  You can get up to $500,000 with a term loan. They also have an A rating with the Better Business Bureau.  The minimum FICO they require is 600. In addition, you must have $100,000 minimum annual revenue and be in business for at least one year.  Find out more about OnDeck in our review. 

SmartBiz

SBA loans typically take a lot of time and paperwork. Still, SmartBiz found a way to speed things up.  They make it easier than ever. Unfortunately, they do have stricter requirements. For example, your credit score has to be at least 650.  Also, you have to be in business for 2 years or more. Further, annual revenue has to be $50,000 at least. There can be no outstanding liens, bankruptcies, or foreclosures in the past 3 years either. 

Funding Circle

If you’re looking for a low APR, then Funding Circle is your go-to.  They have fixed rate term loans and require a credit score of 620 or above.  Unlike BlueVine, there is no minimum revenue requirement. However, they do require you to be in business for at least 2 years.  They have an A+ BBB rating. Find out more in our Funding Circle review. 

StreetShares

This company offers invoice financing, term loans, and lines of credit.  Similar to others, there is a minimum number of years in business requirement.  However, the minimum annual revenue requirement is less than others, at only $25,000.  Additionally, the minimum credit score is 600. They also have an A+ rating with the Better Business Bureau.  Find out more about StreetShares in our review, here. 

Minority Business Loans and Grants: Improve Your Chances of Loan Approval

Just being a minority business owner does not guarantee approval regardless of the lender or loan program. There are some things a lender is looking for regardless.  Though some lenders are a little more relaxed than others, at their core, they are all looking for the same general things on some level. 

Fundability

A business that appears fundable to a lender is complete, organized, and either has solid revenue or a solid startup plan. Find out more about fundability, what it is, and what affects it here. 

To appear fundable, a business needs: 

  • To be formally incorporated as an S-corp, LLC, or a corporation.
  • An EIN from the IRS.  This is an identifying number for your business that functions similar to the way your SSN does for you personally.  
  • A dedicated business bank account.
  • Contact information that is different from the owner’s.  A separate telephone number on a toll-free exchange and a dedicated physical address are vital.. 
  • A professional website and an email address that has the same URL.  Free web hosting and email services won’t do the job in this case.  

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

A Business Plan is Necessary for Minority Business Loans and Grants

Lenders want to see a professional business plan.  Even if you are not a startup a plan is necessary. Startups need a plan so that lenders can see they know what they are doing.  Established businesses need to show how they plan to use the funds. Lenders want to see that applicants have research to support the plan as well.  Find out more about business plans here. 

Forms and Documentation

It is pretty much not possible to over prepare when applying for a loan.  Because of this, you should try to think ahead to what information lenders may want to see. Pull together forms and documentation they may ask for.  Items such as past tax returns, financials, and licenses are common. The more prepared you are from the beginning, the smoother the process will flow. 

Your Personal Credit Has to Be Strong

A solid personal credit score is important to getting the best small business loans.  You can’t escape it. As you can see above, a score of 600 or higher is necessary almost across the board with the exception of some invoice factoring and non-traditional options. 

Remember, it isn’t impossible to improve your personal credit score.  The first step is to get a copy of your credit report. You can get a free copy each year. Scan it for what may be causing a negative impact.  If there are mistakes, contact the credit agency in writing to have them removed. If late payments are the issue, start paying on time. You cannot fix a problem until you know what the problem is. 

Business Credit Counts Also

When it comes to business loans, you cannot ignore business credit either.  While it usually isn’t listed as a primary requirement, for most lenders having a strong business credit score can only help you.

If a lender sees a personal score that isn’t exactly what they need, they may consider business credit when making their decision.  In addition, if you qualify for the loan and have good business credit, you may be able to get a lower interest rate. 

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

Minority Business Loans and Grants: Find Your Loan a Grant Sidekick or Two

No super hero due is complete without a sidekick.  If Robin was the jam to Batman’s peanut butter, then maybe one of these grants, or one not listed, can help round out your business funding as well. 

The nice thing about grants is, they do not have to be repaid.  It’s free money. The drawbacks are that they are highly competitive, and they usually are not enough to fund a business alone.  They work well, but they are not superhero material, typically. Once a sidekick, always a sidekick. 

Some grants are minority specific, and some are not.  They vary in application process and eligibility requirements.  Here are some examples of each to add to your minority business loans and grants repertoire. 

First Nations Development Institute Grants

The mission of this group is to offer grants that help Alaska Natives, Native Hawaiians, and Native Americans. Not only that, but there are a wide range of opportunities from the First Nations Development Institute.  There is a mailing list you can join to receive information about new opportunities as they become available.

National Black MBA Association Scale-Up Pitch Challenge

Also known as NBMBAA, the Scale-Up Pitch Challenge offers cash prizes ranging from $1,000 to $50,000.  The association says its purpose is to help newer businesses that have an African founder that maintains equal ownership.  

A business must be a member of the NBMBAA to compete.  There is a $10 monthly membership fee. After that, there is an online application.   If chosen, you must submit a pitch that lasts three minutes. Then, finalists go on to compete at the NBMBAA annual conference.

Other Grant Options: Non-Minority Specific 

There are grant options that can work well even though they are not exclusively for minorities. They are available to everyone, including minorities.  Some examples include the following.

FedEx Small Business Grant

This grant is how FedEx is working to strengthen small business innovation.  There are 10 grants the company awards each year. They range from $15,000 to $50,000, and if you’re a business with a cutting-edge product, this could be a great opportunity.

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 funds. A 90 second video submission is an option as well.

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 

Minority Business Loans and Grants: A Dynamic Duo for Your Business

You do not have to have one to have the other.  However, if you pair them, you get twice the power.  Another great thing about grants is, you aren’t limited in how many you can win.  Apply for all that you qualify for and see what happens. Minority business loans and grants combined could be just the boost your business needs to soar to new heights.

The post Minority Business Loans and Grants: Their Powers Combined Can Help Your Business Explode appeared first on Credit Suite.

Business Loans for Startups: Everything You Need to Know

The idea of business loans for startups is kind of vague.  I mean, a business that isn’t even operating yet can’t exactly get a business loan.  The people who want to start the business can get a loan to get going, but it will technically be a personal loan, not a “business” loan in terms of a loan to the business directly.  

Business Loans for Startups: Do They Exists and How Do You Get Them?

The truth is, a startup isn’t just a business that hasn’t started yet.  The term startup also includes any business that is still in its beginning stages.  For example, they may be in their first round of financing, or still trying to get ramped up.  Surprisingly, some businesses stay in the startup phase for up to 2 or 3 years. 

Why does that matter?  Because, if they have been operating for any amount of time, that changes the game.  They could then potentially have business credit, which could help them get the funding they need on the merits of their business more so than their personal credit. These would be what we call business loans for startups. For many reasons, it’s harder for startups to get business loans.

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

Business Loans for Startups: Traditional Lenders

Not surprisingly, a lot of startups will not qualify for business loans from traditional lenders.  Some will, but most will have to go the SBA route if they qualify at all. The SBA, or Small Business Administration, offers loan programs through partner lenders.  More startups will qualify for these loans. The reason is, their programs are government backed.  As a result, the lenders are able to be a little more relaxed when it comes to eligibility and approval.  There is a lot of red tape involved, but it can be worth it if you qualify. Here are some examples of SBA loan programs that may work well for startups.  

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. Lenders include banks, credit unions, and other specialized institutions in partnership with the SBA who process these loans and disburse the funds. 

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. 

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

Business Loans for Startups: 504 Loans fundability for startups Credit Suite

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 2 year in business requirement, or equivalent experience for management, if the business is in the startup phase.  

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, necessary paperwork for application is less.  As a result, express loans a great option for working capital, among other things, if you qualify. 

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

Business Loans for Startups: SBA CAPLines

There are 4 distinct CAPline programs that differ mostly in the expenses you can use them to fund. Each carries a maximum amount of $5 million and an interest rate that ranges from 7% to 10%. Funding can take 45 to 90 days. 

The four different programs include: 

  • Seasonal CAPLines -Financing for businesses preparing for a seasonal increase in sales.
  • Contract CAPlines -Financing for business that need funding to fill a contract.
  • Builder’s CAPLines -Financing for businesses taking on a real estate or construction project.
  • Working capital CAPLines -Financing for businesses that are struggling with a short-term slump in sales.

Credit score must be at least 680 to qualify, and there is no minimum time in business requirement unless you are getting a seasonal CAPline. That one carries a one year in business requirement. 

The SBA offers these programs, and a lot more, for small businesses.  Find out more about the SBA and what they offer here.

Business Loans for Startups: What You Need to Apply

There are several things that lenders will look at, whether you are applying for an SBA loan or not.  Some of it, like credit reports, you cannot control. What you can control is the presentation you make in the form of a business plan.  It needs to look professional and be well written and complete. That may mean pulling in some outside help in the form of consultants, writers, or both.  In general, a well put together, complete business plan includes the following. 

Opening

An Executive Summary

This is a complete summary of the business idea. 

Description

The description goes into further detail than the summary, describing the business. What type of business is it? What product or service will it offer? This is where you work to get others excited about your business. Note that this is important even if your business is already operating.  It will just be in the present rather than the future tense.  

Strategies

Layout your plan for getting started. Do you have a marketing plan, area in mind for location, or idea of how many employees you will start with? What is your ramp up plan? Again, already operating businesses will state the current operating strategy.

Research 

Market Analysis

This actually includes two parts. All that market research you did goes here: 

Analysis of audience

What need will your business fill, and for who? Are you a child care facility filling a need for affordable child care for working moms? Are you an eatery filling a need for a lunch spot for those working downtown? How will your business fill the need? All of that information goes in this section. 

Competitive Analysis

Is there already a business working to fill this need? Is there room for more? How do you plan to compete with them? 

If you are not a new business, this will be a market analysis that supports your need for funding, or that shows your business is strong and growing.

Strategy

Plan for Design and Development

How is all of this going to play out, from start to finish. What steps are you going to take? This is more detailed than your strategies section.

Plan for Operation and Management

Who will own or does own the business and who will run or currently runs it from day to day. This could be as simple as stating that you are the sole owner and operator, or as complicated as laying out a complete partnership plan or board or directors’ format. It just depends on how your business works. 

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

Financials

Financial Information

This section includes current financials, projections, and a budget plan for the loan funds you are applying for.  Lenders need to see that you know how to handle the funds you get, and that you have a plan for paying them back.

Private Lender Options for Business Loans for Startups

Regardless, any traditional lender is going to check personal credit history.  They are also going to look for a higher credit score. 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 

If you have been in business for at least 6 months and have $120,000 annual revenue, you may qualify for a loan from BlueVine. Amazingly, the credit score for a line of credit can be as low as 600. Furthermore, if you want invoice factoring, you can get approval with a score as low as 530. 

Kiva 

Kiva is a little different. For example, the interest rate is 0%, so even though you have to pay it back it is absolutely free money. They don’t even check your credit. However, there is one catch.  You have to get at least 5 family members or friends to throw some money in the pot as well. In addition, you have to pitch in a $25 loan to another business on the platform. 

Accion 

If your personal credit is okay, Accion may be a good fit for small business startup loans bad credit. It is a microlender, a nonprofit, that offers installment loans to both startups and already existing businesses. The minimum credit score is 575. In some places they will go as low as 500. 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. 

Loans are from 6 to 60 months and interest rates range from 7% to 34%. A personal guarantee, and sometimes specific collateral, is necessary in most circumstances. 

Credibly 

Credibly is also a good option for business loans for startups if you are already generating some revenue. They offer short term loans for both business expansion and working capital. You must be in business for at least 6 months to qualify, and they will approve loans to those with credit scores as low as 500. 

Business Loans for Startups: Other Options for Startup Funding 

Typically, a business is going to need to combine more than one type of funding to start and run a business.  Of course, traditional investors are the funding source of choice. However, investors are not an option for everyone.  Here are a couple of other options. 

Crowdfunding

What is the newest innovation in small business funding? It is actually quite an arousing invention. Crowdfunding sites allow you to pitch your business to thousands of micro investors. Anyone who wants a piece of the action can buy a piece of the proverbial pie. 

Investors pledge amounts on a broad spectrum depending on the campaign and the platform used. They may give $80, they may give $150, or they may give over $500. 

Though not always required, most entrepreneurs offer rewards to investors for their generosity. Most often, 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 your product A, and a $100 gift will get you and upgraded version of product A.  Find out more about crowdfunding here and here. 

Angel Investors

Angel investors come in all shapes and sizes.  From investment firms to your mom, virtually anyone can swoop in and lift a company up financially.  Some of the top angel investments have become companies that change the world. Learn more about this option here. 

Business Loans for Startups: Work on Overall Fundability

You need to start working on business fundability from day one, before you even think about business loans for startups. There are several reasons for this, but the most important one is that it fundability is starting long before you realize it.  So much goes into it that you probably do not even realize. In fact, some of it is not even related to your business. Learn more about fundability, how it starts, and how to make it strong here. 

The post Business Loans for Startups: Everything You Need to Know appeared first on Credit Suite.

How to Qualify for a Business Loan: What Matters and What Doesn’t

Most agree, when you start wondering how to qualify for a business loan, the waters can become muddied with things that do not really matter.  As a result, it can be hard to distinguish between what really matters, and what doesn’t. In fact, many factors affect whether or not you qualify for a business loan.

How to Qualify for a Business Loan: What Really Matters?

Truly, there is a lot of conflicting information out there on how to qualify for a business loan.  Is it business credit? Is it personal credit? What else makes a difference? Can you get a loan without business credit?  Do you really need a business plan? What reports are they looking at? Let’s clear some of this up. 

How to Qualify for a Business Loan: What You Don’t Know Can Hurt You

First, you need to know that there are probably a lot of things that make a difference in how to qualify for a business loan that you don’t even realize.  At first glance, a lender is going to consider fundability. Usually, most borrowers think this has only to do with your credit score. However, there are many layers to fundability.  Together, they can all make a difference in whether or not you are approved. 

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

How to Qualify for a Business Loan: Understanding Fundability

Not surprisingly, one of the main things about fundability that most business owners do not realize is that it actually starts with how your business is set up.  For example, even the address and telephone number you use for your business can affect fundability. 

Set Your Business Up to Be Fundable

 To help, here are some things to consider when setting up your business to appear fundable. 

  • Contact Information

It has to be separate from your personal contact information. 

  • EIN

If you don’t know, this is the equivalent of an SSN for your business. 

  • Incorporate

It’s true, you have to incorporate as either an LLC, and S-corp, or a corporation.  

  • Business Bank Account

A dedicated business bank account is vital to fundability. 

  • Licenses

Make sure you have all the licenses you need to operate your business. 

  • Website

You need a professionally designed website and an email address with the same URL. 

Honestly, this is a super simple summary.  Get more details on how to set up your business to be fundable here.

Other Things that Affect Fundability

In addition to how your business is set up, there are about a million other things that can affect the fundability of your business.  They can all be broken down into the following categories. 

Business Credit Report

This is the credit report, much like your consumer credit report, that details the credit history of your business.  It is a tool to help lenders determine how credit worthy your business is.  

Where do business credit reports come from?  There are a lot of different places. Still, the main ones are Dun & Bradstreet, Experian, Equifax, and FICO SBSS.  Consequently, you have no way of knowing which one your lender will choose. As a result, you have to make sure all of these reports are up to date and accurate. 

Other Business Data Agencies 

There are other business data agencies that affect those reports indirectly.  This is in addition to the business credit reporting agencies that directly calculate and issue your credit reports.  Two examples of other agencies include LexisNexus and The Small Business Finance Exchange. They gather data from a variety of sources, including public records.  What does this mean for you? It may surprise you, but they could have access to information relating to automobile accidents and liens, among other things. You cannot access or change the data the agencies have on your business.  However, you can ensure that any new information they receive is positive. Enough positive information can help counteract any negative information from the past. 

Identification Numbers 

In addition to the EIN, there are identifying numbers that go along with your business credit reports.  You need to be aware that these numbers exists. Some of them are simply assigned by the agency. 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 has everything to do with all things related to your credit score.  Of course, this is a huge factor in the fundability of your business.  

Credit history 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?

Of course, the more accounts you have reporting on-time payments, the stronger your credit score will be. 

Business Information

On the surface, it seems obvious that all of your business information should be the same across the board everywhere you use it.  However, when you start changing things up like adding a business phone number and address and incorporating, you may find that some things get missed. 

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

This is a problem.  A lot of loan applications are turned down each year due to fraud concerns simply because things don’t match up.  For example, maybe your business licenses have your personal address but now you have a business address. That needs to be changed.  Maybe 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?  

The key to this piece of the business fundability is to monitor your reports often.   When it comes to business credit reports, you can monitor through the reporting agencies directly, or save money here. 

Financial Statements

First, both your personal and business tax returns need to be in order.  Not only that, but you need to be paying your taxes, but business and personal.  

Business Financials

Typically, it is best to have an accounting professional prepare regular financial statements. Having an accountant’s name on financial statements helps your business look more credible and legitimate. If you cannot afford it monthly or quarterly, then at least have professional statements prepared annually. Then, they will be there whenever you need them. 

Personal Financials

Usually, this is just tax returns for the previous three years.  That is the bare minimum you will need. Other information lenders may ask for include check stubs and bank statements. 

Bureaus

There are 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. 

Other than that, there is also ChexSystems.  They monitor bad check activity, and that can affect your bank score.  If you have too many bad checks, you will not be able to open a bank account.  That will cause serious fundability issues. 

For this point, everything comes into play.  Have you ever been convicted of a crime? Do you have a bankruptcy or short sell on your record?  How about liens or UCC filings? This all affects fundability. 

Personal Credit Historyhow to qualify for a business loan Credit Suite

Your personal credit score from Experian, Equifax, and Transunion affects fundability as well.  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. 

Also, make sure you monitor your personal credit regularly to make sure mistakes get corrected and that there are no fraudulent accounts reporting. 

Application Process

So much plays into this that you may not even think about. First, consider the timing of the application.  Is your business currently fundable? If not, do some work first to increase fundability. Next, ensure that your business name, business address, and ownership status are all verifiable.  Lenders will check that. Lastly, make sure you choose the right lending product for your business and your needs. Do you need a traditional loan or a line of credit? Would a working capital loan or expansion loan work best for your needs?   

How to Qualify for a Business Loan: Choose the Right Product and the Right Lender

This  falls into that application process section of fundability.  You have to know what you need, what you are eligible for, and what type of lender will work best for your needs.  This will help you know where to apply and what to apply for, so that you can have the best possible chance of qualifying. 

How to Qualify for a Business Loan: Choose the Right Type Business Loan

When it comes to business loans, these are the general types of products available. 

Traditional Loans

These are the standard loans that disperse as a set amount of funds, with the borrower repaying with equal payments over a certain period of time.  These can be secured or unsecured.

Line of Credit 

This is revolving debt similar to credit cards.  Borrowers are given a maximum limit of the amount of funds they can use, but only pay back the amount that they actually use.  

Invoice Factoring

Factoring invoices is an option if you have receivables.   The lender basically buys unpaid invoices from you at a premium, meaning you do not get full value.  However, you do get fast cash.

Merchant Cash Advance

If you accept credit card payments, a merchant cash advance can help you out in a cash pinch.  It is basically just what is says. It’s a cash advance on predicted credit card sales. They base the amount of the loan on average daily credit card sales, and then take payment from future credit card sales. 

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

How to Qualify for a Business Loan: Choose the Right Type of Lender

 A lot of business owners think that a bank is their only option.  There are a few different types of lenders to consider however. 

  • Large Commercial Banks

  • Community Banks

  • Credit Unions

  • Private Lenders

Of course, which one of these you use will depend on your specific needs and qualifications.

How to Qualify for a Business Loan: You Need an Awesome Business Plan

While there are forms available from most lenders for you to simply write in information related to your business plan, that’s not the best way to do it.  A professionally written, complete business plan makes a far better impression on a lender. This is true even if you are an established business applying for a loan.  The only difference is, you will write a plan for how you will use the funds in relation to your current business rather than a business you intend to start. In general, a complete and professional business plan contains the following. 

Opening 

First comes the opening. It includes an executive summary, a more detailed description of the business, and your strategy for getting started.  

Market Research 

Next, there is a section for market research.  As you might guess, this section consists of market analyses including an analysis of your audience and an analysis of any existing competition. It will tell what need exists, how you will fill it, and how you will fill it better than the competition.

How to Qualify for a Business Loan: The Plan 

This can also be broken down into two parts. 

Plan for Design and Development

This is your plan from start to finish.  It discusses what steps are you going to take. In comparison, this is more detailed than your strategies section.

Plan for Operation and Management

This is where a number of questions are answered in relation to the management of the business.  For example, who will own or does own the business? Furthermore, who will run or currently runs it from day to day? It could be as easy as stating that you are the sole owner and operator.  In contrast, it could be as complicated as laying out a complete partnership plan or board or directors’ format. Truthfully, it just depends on your specific business. 

Financials

Lastly, this section includes current financials, projections, and a budget plan for the loan funds you are applying for.  As you can imagine, lenders want to see that you know how to handle and funds you get. Furthermore, they want to know that you have a plan for paying them back.

Take note, if you are not a great writer, you may need to hire a writer to help you with this.  If you have no clue how to do market research, you may need to outsource that piece as well. Thankfully, most small business development centers offer help with business plans also.  Go here to find an SBDC near you. 

How to Qualify for a Business Loan: Wrap Up

Hands down, the absolute first step in the process has to be to do an analysis of fundability. Then, you will know where you stand. As a result, you will have a better idea of what you may need to do to increase fundability.  Also, you will have a better understanding of what type of lender you need to go with and which type of product will best fit your needs.  Then, you can get to work on your business plan. Remember, while nothing is guaranteed, following these steps can help increase your chances of loan approval immensely. 

The post How to Qualify for a Business Loan: What Matters and What Doesn’t appeared first on Credit Suite.

How to Qualify for a Business Loan: What Matters and What Doesn’t

Most agree, when you start wondering how to qualify for a business loan, the waters can become muddied with things that do not really matter.  As a result, it can be hard to distinguish between what really matters, and what doesn’t. In fact, many factors affect whether or not you qualify for a business loan.

How to Qualify for a Business Loan: What Really Matters?

Truly, there is a lot of conflicting information out there on how to qualify for a business loan.  Is it business credit? Is it personal credit? What else makes a difference? Can you get a loan without business credit?  Do you really need a business plan? What reports are they looking at? Let’s clear some of this up. 

How to Qualify for a Business Loan: What You Don’t Know Can Hurt You

First, you need to know that there are probably a lot of things that make a difference in how to qualify for a business loan that you don’t even realize.  At first glance, a lender is going to consider fundability. Usually, most borrowers think this has only to do with your credit score. However, there are many layers to fundability.  Together, they can all make a difference in whether or not you are approved. 

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

How to Qualify for a Business Loan: Understanding Fundability

Not surprisingly, one of the main things about fundability that most business owners do not realize is that it actually starts with how your business is set up.  For example, even the address and telephone number you use for your business can affect fundability. 

Set Your Business Up to Be Fundable

 To help, here are some things to consider when setting up your business to appear fundable. 

  • Contact Information

It has to be separate from your personal contact information. 

  • EIN

If you don’t know, this is the equivalent of an SSN for your business. 

  • Incorporate

It’s true, you have to incorporate as either an LLC, and S-corp, or a corporation.  

  • Business Bank Account

A dedicated business bank account is vital to fundability. 

  • Licenses

Make sure you have all the licenses you need to operate your business. 

  • Website

You need a professionally designed website and an email address with the same URL. 

Honestly, this is a super simple summary.  Get more details on how to set up your business to be fundable here.

Other Things that Affect Fundability

In addition to how your business is set up, there are about a million other things that can affect the fundability of your business.  They can all be broken down into the following categories. 

Business Credit Report

This is the credit report, much like your consumer credit report, that details the credit history of your business.  It is a tool to help lenders determine how credit worthy your business is.  

Where do business credit reports come from?  There are a lot of different places. Still, the main ones are Dun & Bradstreet, Experian, Equifax, and FICO SBSS.  Consequently, you have no way of knowing which one your lender will choose. As a result, you have to make sure all of these reports are up to date and accurate. 

Other Business Data Agencies 

There are other business data agencies that affect those reports indirectly.  This is in addition to the business credit reporting agencies that directly calculate and issue your credit reports.  Two examples of other agencies include LexisNexus and The Small Business Finance Exchange. They gather data from a variety of sources, including public records.  What does this mean for you? It may surprise you, but they could have access to information relating to automobile accidents and liens, among other things. You cannot access or change the data the agencies have on your business.  However, you can ensure that any new information they receive is positive. Enough positive information can help counteract any negative information from the past. 

Identification Numbers 

In addition to the EIN, there are identifying numbers that go along with your business credit reports.  You need to be aware that these numbers exists. Some of them are simply assigned by the agency. 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 has everything to do with all things related to your credit score.  Of course, this is a huge factor in the fundability of your business.  

Credit history 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?

Of course, the more accounts you have reporting on-time payments, the stronger your credit score will be. 

Business Information

On the surface, it seems obvious that all of your business information should be the same across the board everywhere you use it.  However, when you start changing things up like adding a business phone number and address and incorporating, you may find that some things get missed. 

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

This is a problem.  A lot of loan applications are turned down each year due to fraud concerns simply because things don’t match up.  For example, maybe your business licenses have your personal address but now you have a business address. That needs to be changed.  Maybe 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?  

The key to this piece of the business fundability is to monitor your reports often.   When it comes to business credit reports, you can monitor through the reporting agencies directly, or save money here. 

Financial Statements

First, both your personal and business tax returns need to be in order.  Not only that, but you need to be paying your taxes, but business and personal.  

Business Financials

Typically, it is best to have an accounting professional prepare regular financial statements. Having an accountant’s name on financial statements helps your business look more credible and legitimate. If you cannot afford it monthly or quarterly, then at least have professional statements prepared annually. Then, they will be there whenever you need them. 

Personal Financials

Usually, this is just tax returns for the previous three years.  That is the bare minimum you will need. Other information lenders may ask for include check stubs and bank statements. 

Bureaus

There are 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. 

Other than that, there is also ChexSystems.  They monitor bad check activity, and that can affect your bank score.  If you have too many bad checks, you will not be able to open a bank account.  That will cause serious fundability issues. 

For this point, everything comes into play.  Have you ever been convicted of a crime? Do you have a bankruptcy or short sell on your record?  How about liens or UCC filings? This all affects fundability. 

Personal Credit History

Your personal credit score from Experian, Equifax, and Transunion affects fundability as well.  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. 

Also, make sure you monitor your personal credit regularly to make sure mistakes get corrected and that there are no fraudulent accounts reporting. 

Application Process

So much plays into this that you may not even think about. First, consider the timing of the application.  Is your business currently fundable? If not, do some work first to increase fundability. Next, ensure that your business name, business address, and ownership status are all verifiable.  Lenders will check that. Lastly, make sure you choose the right lending product for your business and your needs. Do you need a traditional loan or a line of credit? Would a working capital loan or expansion loan work best for your needs?   

How to Qualify for a Business Loan: Choose the Right Product and the Right Lender

This  falls into that application process section of fundability.  You have to know what you need, what you are eligible for, and what type of lender will work best for your needs.  This will help you know where to apply and what to apply for, so that you can have the best possible chance of qualifying. 

How to Qualify for a Business Loan: Choose the Right Type Business Loan

When it comes to business loans, these are the general types of products available. 

Traditional Loans

These are the standard loans that disperse as a set amount of funds, with the borrower repaying with equal payments over a certain period of time.  These can be secured or unsecured.

Line of Credit 

This is revolving debt similar to credit cards.  Borrowers are given a maximum limit of the amount of funds they can use, but only pay back the amount that they actually use.  

Invoice Factoring

Factoring invoices is an option if you have receivables.   The lender basically buys unpaid invoices from you at a premium, meaning you do not get full value.  However, you do get fast cash.

Merchant Cash Advance

If you accept credit card payments, a merchant cash advance can help you out in a cash pinch.  It is basically just what is says. It’s a cash advance on predicted credit card sales. They base the amount of the loan on average daily credit card sales, and then take payment from future credit card sales. 

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

How to Qualify for a Business Loan: Choose the Right Type of Lender

 A lot of business owners think that a bank is their only option.  There are a few different types of lenders to consider however. 

  • Large Commercial Banks

  • Community Banks

  • Credit Unions

  • Private Lenders

Of course, which one of these you use will depend on your specific needs and qualifications.

How to Qualify for a Business Loan: You Need an Awesome Business Plan

While there are forms available from most lenders for you to simply write in information related to your business plan, that’s not the best way to do it.  A professionally written, complete business plan makes a far better impression on a lender. This is true even if you are an established business applying for a loan.  The only difference is, you will write a plan for how you will use the funds in relation to your current business rather than a business you intend to start. In general, a complete and professional business plan contains the following. 

Opening 

First comes the opening. It includes an executive summary, a more detailed description of the business, and your strategy for getting started.  

Market Research 

Next, there is a section for market research.  As you might guess, this section consists of market analyses including an analysis of your audience and an analysis of any existing competition. It will tell what need exists, how you will fill it, and how you will fill it better than the competition.

How to Qualify for a Business Loan: The Plan 

This can also be broken down into two parts. 

Plan for Design and Development

This is your plan from start to finish.  It discusses what steps are you going to take. In comparison, this is more detailed than your strategies section.

Plan for Operation and Management

This is where a number of questions are answered in relation to the management of the business.  For example, who will own or does own the business? Furthermore, who will run or currently runs it from day to day? It could be as easy as stating that you are the sole owner and operator.  In contrast, it could be as complicated as laying out a complete partnership plan or board or directors’ format. Truthfully, it just depends on your specific business. 

Financials

Lastly, this section includes current financials, projections, and a budget plan for the loan funds you are applying for.  As you can imagine, lenders want to see that you know how to handle and funds you get. Furthermore, they want to know that you have a plan for paying them back.

Take note, if you are not a great writer, you may need to hire a writer to help you with this.  If you have no clue how to do market research, you may need to outsource that piece as well. Thankfully, most small business development centers offer help with business plans also.  Go here to find an SBDC near you. 

How to Qualify for a Business Loan: Wrap Up

Hands down, the absolute first step in the process has to be to do an analysis of fundability. Then, you will know where you stand. As a result, you will have a better idea of what you may need to do to increase fundability.  Also, you will have a better understanding of what type of lender you need to go with and which type of product will best fit your needs.  Then, you can get to work on your business plan. Remember, while nothing is guaranteed, following these steps can help increase your chances of loan approval immensely. 

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How Do Lenders Measure Business Fundability?

Have you ever wondered what exactly it is that lenders are looking for when it comes to approving a loan? Is it just your credit score, or is there more that comes into play? Why do you keep getting denied despite a strong, successful business with plenty of profit? How do they measure business fundability?

The answers to these questions can vary from lender to lender. 

What are Lenders Looking at to Determine Business Fundability? 

Honestly there is really no way to know for sure what exact information a lender is going to choose to use in their decision making.  What you can do, however, is learn everything you can about business fundability and what affects it. By doing that, you can begin to make changes where possible in an effort to ensure anything a lender sees is as positive as possible. 

Check out our best webinar with its trustworthy list of seven vendors to help you build business credit. 

What is Business Fundability?

To do this, you first have to know exactly what business fundability is.  The easiest way to explain it is to say it is how worthy of credit your business is.  If a lender considers your business to be fundable, it means they see your business as a low credit risk. However, everything that goes into being fundable is much more complicated.  

It is easiest to start at the beginning. Believe it or not, business fundability actually starts with how your business is set up. 

Business Fundability: The Set Up

These are the things that lenders consider, either directly or indirectly, in relation to how your business is set up.  They all work together to build the credibility and legitimacy of your business. 

Contact Information

The first step in setting up a foundation on which to build business fundability is to get your business its own phone number, fax number, and address.   What is surprising to some, is that this doesn’t mean you have to get a separate phone line, or even a separate location. You can run your business from your home or on your computer, and you do not even have to have a fax machine.  Find out more about how this here and here. 

EIN

Your business needs and EIN.  This is an identifying number for your business that works the same way your SSN works for you personally.  It looks more credible to use this number rather than your SSN for business loan applications. Having an EIN is also important for building business credit, as it separates your business accounts from your personal accounts. You can get one for free from the IRS.

Incorporate

This is the most important step in fundability thus far.  Incorporating your business as an LLC, S-corp, or corporation is necessary to fundability.  It lends credence to your business as one that is legitimate. In addition, it also offers some protection from liability. 

Which option you choose has more to do with your budget and how much liability protection you need than it does for fundability.  The best thing to do is discuss the issue with your attorney or a tax professional.  

Incorporation has to happen as soon as possible.  Time in business counts toward fundability and for business credit.  This starts over at incorporation, regardless of how long your business has been in operation before incorporation.  Not only that, but any positive business credit history you have up until the point of incorporation will be lost as well.

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. 

In addition, there are several types of funding you cannot get without a business bank account.  Some lenders and credit cards want to see one. Also, you cannot get a merchant account without a business account at a bank. That means, you cannot take credit cards payments.  Consumers tend to spend more when they can pay by credit card.

Check out our best webinar with its trustworthy list of seven vendors to help you build business credit. 

Licenses

For a business to be legitimate it has to have all of the necessary licenses it needs to run legally.  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. 

Website

How does a business website affect fundability?  Here’s how. In today’s world, we all run to the internet first for virtually everything.  For most businesses, the website is the first impression you make on anyone, including lenders.  If it appears to be unprofessional, it will cause problems.

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, 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.

Business Fundability: Business Credit Reports

This is what most business owners think about when it comes to business fundability. That is the credit report, much like your consumer credit report, that details the credit history of your business.  It is a tool to help lenders determine how credit worthy your business is.  

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. 

Not only that, but you need to be sure you actually have business credit. It does not build passively as a result of credit transactions in the same way consumer credit does.  That set-up for fundability? It is necessary to begin building business credit as well. After you have that, you have to get accounts reporting, which is a whole other process.  Find out more about that here. 

Other Business Data Agencies 

In addition to the business credit reporting agencies that directly calculate and issue your credit reports, there are other business data agencies that affect those reports indirectly.  Two examples of this are LexisNexus and The Small Business Finance Exchange. These two agencies gather data from a variety of sources, including public records.  This means they could have access to information relating to automobile accidents, liens, and more. While you may not be able to access or change the data the agencies have, you can ensure that any new information they receive is positive.  Enough positive information can help counteract any negative information from the past. 

Identification Numbers 

In addition to the EIN, there are other identifying numbers related to business credit reports.  You need to be aware that these numbers exist. Some of them are simply assigned by the agency. One, however, you have to apply for.  It is pertinent that you do this. 

That number is a D-U-N-S number from Dun & Bradstreet.  D&B 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 has everything to do with everything related to your credit score, which is a huge factor in the fundability of your business.  

Your credit history 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

On the surface, it seems obvious that all of your business information should be the same across the board everywhere you use it.  However, when you start changing things up like adding a business phone number and address and incorporating, you may find that some things slip through the cracks. 

This is a problem because a ton of loan applications are turned down each year due to fraud concerns simply because things do not match up.  Maybe your business licenses have your personal address but now you have a business address. Fix it. Do some of your credit accounts have a slightly different name or a different phone number listed than what is on your loan application? Make sure your insurances all have the correct information, too.  

The key to this piece of the business fundability is to monitor your reports frequently.   When it comes to business credit reports, you can monitor through the reporting agencies directly, or save money by going here. 

Financial Statements

This covers a broad spectrum.  First, there is the obvious. 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. But wait, there’s more.  

Business Financials

It is best to have an accounting professional prepare regular financial statements. Having an accountant’s name on financial statements lends to the legitimacy of your business. If you cannot afford them monthly or quarterly, at least have professional statements prepared annually. This way, they will be ready whenever you need them. 

Personal Financials

Often this is simply tax returns for the previous three years.  That is the bare minimum you will need. Other information lenders may ask for include check stubs and bank statements. 

Bureaus

There are several other agencies that hold information related to your personal finances that you need to know about as well.  One example is ChexSystems. It 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.  That will cause serious fundability issues. 

For this point, everything comes into play.  Have you ever been convicted of a crime? Do you have a bankruptcy or short sell on your record?  How about liens or UCC filings? All of this can and will play into business fundability. 

Personal Credit History

Your personal credit score from Experian, Equifax, and Transunion all matter.  You have to have your personal credit in order because it will definitely affect business fundability.  If it isn’t the best, get to work on it now. The number one way to get a strong personal credit score or improve a weak one is to make payments regularly on-time.

Also, make sure you monitor your personal credit regularly to ensure mistakes are corrected and that there are no fraudulent accounts being reported. You can get one free copy of your personal credit report annually.

Business Fundability: Application Process

So much plays into this that you may not even think about. First, consider the timing of the application.  Is your business currently fundable? If not, do some work to change that. Next, make sure that your business name, business address, and ownership status are all verifiable.  Lastly, make sure you choose the right lending product for your business and your needs. Do you need a traditional loan or a line of credit? Would a working capital loan or expansion loan work best for your needs?  Choosing the right product to apply for can make all the difference. 

Check out our best webinar with its trustworthy list of seven vendors to help you build business credit. 

Do Lenders Really Look at All of These Things for Business Fundability? biz funding Credit Suite2

Maybe not directly.  For traditional lenders, your personal credit and finances are going to directly affect your ability to get a business loan for sure.  Your business credit may be able to help you get a better rate, or push you over the approval line if personal credit isn’t as great as it needs to be.  Private lenders may lean more toward business credit.  

Neither is likely to pull, or to even be able to pull, a report directly from another agency however.  Furthermore, most will not seek out public records. However, those things can show up on and affect your credit reports.  Not only that, but if in the process a lender sees a discrepancy in name or address, it will throw up red flags.  

Even something minor like a poorly put together website, when coupled with a few other seemingly minor issues, can be enough to put you out of the running for a business loan all together.  It’s best to have a thorough understanding of what business fundability is and what affects it, so you can keep any issues, either minor or major, from causing problems. 

Business Fundability: How it All Ties Together

Truly, few business owners understand how important business fundability really is.  Even if they do, they are not sure what to do about it. However, if you set up things right, pay attention to what’s out there, and ensure all the information is as correct as possible, you have a good start.  The only way to do this is to consistently monitor credit reports. If your business credit isn’t the best, or if you do not yet have business credit, find out how to start and build strong business credit here.   

The post How Do Lenders Measure Business Fundability? appeared first on Credit Suite.