Tag: Business

How Fundability and Minority Small Business Grants Can Build Off Each Other

First, to be clear, minority small business grants, and any grants for that matter, are totally free money that you do not have to pay back.  As such, those awarding grants typically do not consider your ability to repay a grant in the selection process. That doesn’t mean that fundability doesn’t matter though.  It does. 

Your Level of Fundability Can Affect Your Ability to Win Grants, and Winning Minority Small Business Grants Can Help You Build Fundability 

How does this work?  How does the fundability of your business affect your ability to get grants, and how can getting small business grants help you build fundability? Think about it.  Of course, the main thing that grantors are looking for is a business that can be successful. That means having a winning business idea. That being the case, applicants focus on that piece.  They present a fabulous pitch and a winning business plan, then they execute a flawless presentation and hope those that make the decisions love it.  

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

However, if the competition is a close one, and there are any red flags out there on any applicant, it could mean the difference between winning, and not.  Winning is important, because grants can be a great option for supplementing your funding.

The Bare Minimum: Do I Need Fundability to Get Minority Small Business Grants? 

Most likely, those offering grants are not going to check credit.  They probably do not even really care about your personal financials.  Those pieces of fundability are not likely to come into play. You can find out more about those and the other parts of the fundability puzzle here.  

However, the foundation of fundability needs to be in place.  This is what can make a difference when it comes to winning minority small business grants. What is a foundation of fundability and why does it matter?  It matters because it is what sets your business apart as legitimate. These are the things that separate your business from yourself, and it shows that you have all of your proverbial ducks in a row.  It may never come into play, but if it does, you want to be ready. What are the building blocks of the foundation of fundability? 

Contact Information

The first step in setting up a foundation of fundability is to ensure your business has its own phone number, fax number, and address.   Now don’t panic. That doesn’t mean you have to get a separate phone line, or even a separate location. You can still run your business from your home or on your computer if that is what you are doing.  You do not even have to have a fax machine.  

In fact, you can get a business phone number and fax number pretty easily that will work over the internet instead of phone lines.  In addition, the phone number will forward to any phone you want it too so you can simply use your personal cell phone or landline if you want.  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 your business appear legitimate to lenders. 

You can use a virtual office for a business address. How do you get a virtual office?  What is that? It’s not what you may think. This is a business that offers a physical address for a fee, and sometimes they even offer mail service and life receptionist services.  In addition, there are some that offer meeting spaces for those times you may need to meet a client or customer in person. 

EIN

The next thing you need to do is get an EIN for your business.  This is an identifying number for your business that works in a way similar to how your SSN works for you personally.  Some business owners use their SSN for their business. This is what a lot of sole proprietorships and partnerships do. 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 are looking to increase fundability, you need to apply for and use an EIN. 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. It also offers some protection from liability. 

Which option you choose does not matter as much for fundability as it does for you 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, regardless of when you actually started doing business. 

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

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 when it comes time to do taxes by keeping your personal finances separate from your business finances.. 

There’s more to it however.  There are several types of funding that are not available  without a business bank account. Many lenders and credit cards want to see a business account with a minimum average balance.  In addition, you a merchant account is not an option without a business account at a bank. That means, you cannot take credit cards payments.  Studies show that consumers usually spend more when credit card payment is available.

Licenses

For a business to be legitimate, it has to have all of the necessary licenses it needs to run.  If it doesn’t, warning lights are going to flash all over the place. Research what 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

In these times, you do not exist if you do not have a website.  Having a poorly put together website can be even worse though. It is the first impression you make on most.  As a result, if it appears to be unprofessional, your business will look bad before the customer even gives it a chance. 

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. 

If you are a new business applying for minority small business grants to help get you off of you feet, you may not be ready for all of this yet.  Much of it can be does at square one however, and it is infinitely easier to do so. For example, just go ahead and get a business number and address and use it on your grant applications.  Get a professional website, or at least a prototype, up and running so you have something to show. It could make all the difference.

How Can Minority Small Business Grants Help Build Fundability?minority small biz grants Credit Suite

It’s pretty easy to see how fundability can affect your ability to get minority small business grants.  How is the reverse true though? How can minority small business grants help you build fundability, especially when you don’t have to pay them back so there are no payments to report to business credit. 

Here’s how.  When you get minority small business grants, you have free money to grow and expand your business.  This can help you be more profitable without the debt typically associated with growth. This, in turn, makes it easier to pay back any debt you do have to get in the process of starting and running a business, which will help to build fundability.  

The only question now is, where do you get minority small business grants?  Many private and government agencies offer them, including some corporations.  Some are offered annually, while others are available for one time only. It would be impossible to list all available grants, but here are a few to start with.  Remember to do your research, as all of them have different eligibility requirements and application processes. 

Options for Minority Small Business Grants

If you qualify, there are many grant options available.  There are not as many specifically for minorities, but there are some.  Here is just a sample of what is out there. 

First Nations Development Institute Grants

With a mission to offer grants that help Alaska Natives, Native Hawaiians, and Native Americans, this group is at the top of the list.  They also offer assistance in the application process.

Not only that, but there are a wide range of other opportunities from the First Nations Development Institute. Get on the mailing list 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 has cash prizes ranging from $1,000 to $50,000.  The associate states its purpose is to help newer businesses that have an African founder that maintains equal ownership.  

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 three-minute pitch. Then, finalists go on to compete at the NBMBAA annual conference.

Non-Minority Specific Options

There are grants options that can work well even though they are not exclusively for minorities. Some examples include the following.

FedEx Small Business Grant

This grant is the company’s way of 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 minority owned business with a cutting-edge product, this could be the grant for you.

A business must use the FedEx website to submit entries. There are a few questions to answer about your business.  In addition, there is a requirement for an elevator pitch about what makes your business special.  Also, you have to explain how you would use the grant funds. A 90 second video submission is optional.

NASE Growth Grants

The National Association for the Self-Employed (NASE) has small business Growth Grants of up to $4,000. They are for micro-businesses, and proceeds can be used for a number of things including marketing, advertising, expansion, and even to hire employees.  Anyone can apply, but you do have to be an NASE member. Membership fees vary based on the level of membership you choose. 

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

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. These grants are designed 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 Small Business Loans and Fundability: It Goes Both Ways

While neither directly affects the other, the two do affect each other indirectly.  Having a strong, fundable foundation can help the pendulum swing your way when it comes time to make a grant decision.  By the same token, if you win a grant, the funds could help you build strong fundability if used properly. The two together make a winning team for your business. 

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The Secret To Protecting Your Business Assets

The Secret To Protecting Your Business Assets

No matter the kind of company you carry out, there is a considerable danger of being filed a claim against in our litigious culture. Legal actions can vary from insurance claims of oversight to faulty items to disagreements with workers. Including is a way of defending against these prospective hazards.

Solitary Incorporation – Protecting Your Personal Assets

Including your organisation is a technique for producing a lawful wall surface in between your individual possessions as well as organisation. If a judgment is provided versus your company, the service possessions are as excellent as gone.

Dual Incorporation Strategy – Protect Your Business Assets

If you integrate your service, it is all well and also great that your individual possessions are not at threat. Simply integrating your company will certainly not secure these possessions since they are had by the company entity. Because an effective suit would certainly result in a judgment versus the service entity, all possessions of the service can be taken as component of the judgment.

As the name recommends, the dual consolidation approach entails the development of 2 organisation entities. The initial is your “at danger” service that engages with your customers or clients. The 2nd entity, a “holding company”, is after that developed to have the important properties of your organisation.

Lots of people understand that a company entity can be utilized to produce a safety guard for their individual possessions. Currently you can utilize this dual consolidation method to safeguard those properties as well if your service has high worth possessions.

Including your organisation is an approach for developing a lawful wall surface in between your individual possessions and also service. If a judgment is provided versus your company, the service properties are as excellent as gone. Just including your service will certainly not shield these properties since they are possessed by the company entity. Given that an effective suit would certainly result in a judgment versus the organisation entity, all possessions of the service can be taken as component of the judgment. The 2nd entity, a “holding company”, is after that developed to have the useful possessions of your service.

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Great Generation Z Marketing and More –10 Brilliant Business Tips of the Week

Looking for Generation Z marketing tips? We’ve got those and more this week for our ten brilliant business tips of the week. Find out how to reach the generation after the millennials.

The Hottest and Most Brilliant Business Tips for YOU – Grab Some Great Generation Z Marketing Tips 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! Take your Generation Z marketing to the next level – 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. Better Bonuses? Yes, Please!

Our first jaw-dropping tip is all about building an effective bonus plan. Because who doesn’t love bonuses? Great Game says bonuses need to have a connection to the goals of the business. And the time for being secretive and mysterious about them is over.

Here’s our fave tip.

Rally Everyone Around a Common Goal

So, how many times have you worked for (or heard of) a company where the only bonuses went out to people who made sales? Or who could prove their contributions cost less than what they brought in?

Good golly, that’s unfair. But why?

Because there are plenty of disciplines which are fully important to business operations. But they are cost rather than profit centers. After all, where can human resources show a profit? What about loss prevention? 

And the clerical staff or the front-line factory workers? Fuggeddabout it. They will never see a bonus under these circumstances. By definition, they can’t.

So, where’s the incentive for them?

Communications Are Key

Now, this is true under most circumstances, anyway. But if a person who did really well for the company can’t get a little public recognition, then who can? Or should?

And in particular, if your employees need to meet some sort of quota or goal, let them know how they’re doing. How close are they? And how much further do they have to go? Is it possible for them to meet their goal, or not? Knowing they’re close might help some workers work just that much harder to meet their goal. And if you keep them informed early and often, some might not get discouraged if they are a little behind.

So, don’t just leave the feedback to the last minute. 

#9. Grab Your Advantage and Become a Market Leader

The next awesome tip is about lower risk innovation which can help you become a market leader. Entrepreneurs’ Organization notes you should get started with ‘jobs to do’. That is, understand what your product actually does for your customers. 

This gets into a bigger theme we’ve noticed for a while.

Let Your Customers Take the Reins

The biggest thing we have learned while writing these marketing posts is to listen to your customers.

Listen to your customers.

Let’s repeat that.

Listen to your customers. They know what they want. And it may not be what you think they should want.

It’s time for a true story. And it’s a new one. As in, this just happened this morning.

Please Don’t Treat Me Like Everyone Else

So, I am not in Generation Z. Heck, there are plenty of places which say I’m not even Gen X, although I tend to act and consume like that cohort. For the record, I’m ‘officially’ a late boomer. Birth date in 1962, yo’.

But I digress. I am on Twitter, and I tend to follow fellow writers. This morning, a profile I recently filed sent me a generic DM with their links and all. At least they had the foresight to call me by name. But it was my full name on Twitter. 

Anyone who thinks their program scraped my name from the appropriate Twitter field, give yourself a cookie.

That was the sole attempt at personalization. 

So, I sent them a return PM. And I told them in no uncertain terms that their DM was tone-deaf, generic, and clearly mass-produced. I also told them that if they didn’t have the time to get more personal with their intended audience, then they either need an assistant or they’re trying to be all things to all people.

And, let’s face it. I am most likely not in their target audience. The writing community reads, yes. But our Holy Grail is to find readers.

The person who DM’d me was savvy and gracious enough to thank me for my thoughts. And so, in return, I apologized for being harsh.

Smart Move on the Part of the Marketer

The kicker is that the writer, in this case, absolutely salvaged the situation. Will this person change their ways? Maybe. I have no idea. But they were wise enough to acknowledge my opinion and, dare I say, treat me like an individual.

By listening to your audience, your customers and your prospects, you are treating them like people and not a monolith. And that’s not just good for marketing to the post-millennial generation.

Generation Z Marketing Credit Suite

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 Generation Z marketing today, and more!

#8. Up with Productivity; Down with Stress!

Our following life-changing tip concerns lowering your stress levels. Score lays it all out for us. And be sure to check tip #7, which is also about combatting stress.

But first, let’s tackle productivity. After all, it can be extremely stressful when you don’t seem to be able to get everything done on time. And beyond that, if you’re constantly getting everything done after hours, that will take a lot out of you physically. Not to mention, it could interfere with parenting or even threaten your marriage.

There were some great tips here, but we’ll just focus on one.

Om Shanti – Meditate Your Way to Less Stress

You don’t need to climb a mountain and meet a yogi. Rather, you can just download a meditation app onto your phone or computer. The main point of meditation is to train your mind to essentially go to a ‘happy place’, even if everything else around you is going to hell in a handbasket.

This doesn’t mean you ignore your problems. It’s more that you are able to approach them more dispassionately. That can make it easier to solve them.

Consider this. It’s a lot like listening to your friend’s problems with their love life, and you have the solution on the spot. But when it comes to your own issues, you’re stumped. Well, sure, because you’re too close to those problems. 

Stepping back could be the key to seeing solutions all the more clearly – and faster. What better way to increase productivity than to lessen the amount of time you spend fixing stuff?

#7. Banish Your Financial Stress in 2020

For our next sensational tip, we looked at financial stress in your business, and how to minimize if not outright omit it. Small Biz Club says that over half of all entrepreneurs say debt is a problem.

But you may be asking, don’t you advocate carrying debt here at Credit Suite?

Not exactly.

In reality, we advocate building and leveraging credit. But we also feel you should never bite off more credit you can ‘chew’. Being incapable of paying your business debts is hardly the definition of success.

While this article is mainly about personal finances, we suggest checking it out anyway. Many issues with personal financial stressors are similar to business finance stressors.

In particular, if there’s more than one owner of your company, be open and honest with each other about money. Your business’s survival will depend on your open communications in this area, so don’t clam up about business cash.

#6. Soothe Those Ruffled Feathers

This tip is so helpful, and it works! Inc tells us all about dealing with difficult customers.

Talk about your stressors!

We highly recommend reading the entire article, as it offers a good framework for this inevitable issue. Hence, let’s talk about one tip which really stands you in good stead with difficult customers. Heck, it should help you in your relationships.

Seriously.

Own Up, Apologize, Address, and Resolve

These are actually two separate tips, but we feel they’re related closely enough to talk about them together. 

For any issue in life, you can cover it up and deny it. Or you can own up to it. So, if you did it – whatever it is – say you did. Of course, we all have egos. And we don’t necessarily enjoy or want to confess to our mistakes. But they are going to come out, sooner or later.

Admit to them and you’ll be able to control at least a small part of the narrative. 

And then apologize.

“I took the last cookie. I’m sorry.”

Then address the issue. It’s not just an admission of guilt that’s necessary. You should also be working to prevent a recurrence. 

“I took the last cookie. I’m sorry. I’ll make sure we keep cookies permanently on our shopping list, so we don’t run low again.”

Finally, resolve the issue, as soon as you can.

“I took the last cookie. I’m sorry. I’ll make sure we keep cookies permanently on our shopping list, so we don’t run low again. This afternoon, I’ll go to the store and get more.”

There, now, that wasn’t so bad, now.

#5. Learn All About Generation Z Marketing

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

Go beyond the millennial generation and get into Generation Z marketing!

Manta says this generation is going to become 40% of all consumers by year 2020.

Wait a second – that’s this year.

Now, you may be saying to yourself – Generation Snowflake is still a bunch of kids. They aren’t interested in my widgets. Not so fast. Per Wikipedia, the post-millennial generation was born between the mid- to late-90s to, well, they’re not sure when. 2010 seems to come up a lot as the endpoint. But so do 2012 and 2014. 

And no, we don’t know what the post-Generation Z cohort is going to be called, either. 

That means the eldest among them are turning 25 this year. So, these are people who can drive, vote, drink, join the armed forces, and marry. They’re already done with their bachelor’s degrees (if they have them). They may even be past a master’s degree by now. And they may be parents by now – more than once.

For Generation Z Marketing, Find Out What They’re All AboutPost-Millennial Marketing Credit Suite

Generation Z was born into the internet – and it was already a place where a lot of non-technical people were hanging out. Their celebrity heroes are folks like Pewdie Pie, Kylie Jenner, and Millie Bobby Brown. 

How Do You Get Started with Generation Z Marketing?

Start with shareworthy content. That’s easier said than done, though.

Catchy information with a high level of expertise is a great place to start. 

Another tip we really liked was to share your content in bits. For one thing, this cohort has an average attention span of – gulp – 8 seconds. Perfect for Twitter, eh?

So, instead of sharing the entire article (like this one), a better tactic for Generation Z marketing is to just refer to tip #5 in one tweet. And then tip #10 in another tweet. Then, feature tip #3 in an Instagram post. You get the idea.

Oh, and share user-generated content. And if you can convert your content to video, do so.

Is this perfect for Generation Z marketing? Maybe not. But it’s a dang fine start.

Generation Z Marketing Credit Suite

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 Generation Z marketing today, and more!

#4. Up Your Business Growth with Terrific Online Listings

Check out this spectacular tip, all about leveraging your online listings to help your business grows. Succeed as Your Own Boss notes that how you list products and services online can make a difference when it comes to sales.

And, we might add, when it comes to search.

As is often the case, we highly recommend reading this article in its entirety. But one tip really stood out to us.

Tell Your Product’s (or Service’s) Backstory

What does that mean? 

In fiction, it’s the history of your character, before the book or series started. In fiction writing and presentation on TV and film, the backstory is generally better told in pieces. Otherwise, it rightfully feels like an information dump.

But in your online sales listings, you kind of have to. So, our suggestion is to do this, but also to edit the heck out of it. Consider your Generation Z customers and, really, all of us. After all, everyone is busy, and we are all bombarded with information all day long. 

Hence, you probably shouldn’t be writing about how your widgets are locally sourced, unless you can spread that story out across several pages. Maybe the first bit of the production process can be a part of the online listing for one product, and then the second step can end up on the online listing for another.

Experiment!

#3. You Can Lead a Prospect to Your Business…

It’s not your imagination: this winning tip can help you with lead generation. United Capital Source tells us that generating low-quality leads is a surefire way to basically just waste money and time. And, probably, the goodwill and energy of your sales staff.

Hence the article is devoted to various forms of lead generation. We recommend reading it in its entirety as one or the other of their strategies may work for you. Hence, we’re only going to zero in on one of their tactics.

Swap Leads with a Partner

This makes so much sense, and we are kind of surprised we haven’t seen anything like this before!

That is, get to know noncompeting businesses which serve the same demographic niche(s) you do. Their leads could work as your leads, and vice versa.

So, let’s say you have a nail salon, but you don’t do hair. There’s nothing wrong – and a lot right – with talking with nearby hair salon owners and seeing if you can do a lead trade. It will probably be beneficial to both of you.

And you’re not left out if you offer services! If you have a long-haul trucking company, there may be freight companies with a similar lead profile. After all, if a business knows it needs shipping of some form, it may start with air or rail. But then they would quickly realize that there also has to be good, reliable, and fast ground transportation to complement those methods.

So, look for the jam to your peanut butter. And you might just create a partnership in other areas, like sponsoring a local Little League team or running a conference together or – whatever! 

#2. Go and Get More Done

Our second to last unbeatable tip can give you a new perspective on multitasking while on the go. Addicted to Success reveals all about stretching the hour, almost like some people stretch a dollar.

Now, multitasking gets a bad rap at times, because it’s sometimes a not so efficient way to get things done. So, we’d like to concentrate on one tip which just might help save the planet.

Rethink Your Commute

Unfortunately, not every area allows for this. But for those that do, why not use public transportation to get to the office? Yes, the bus is probably not as fast as your car – and you’re beholden to their schedule.

But if you can make it work, having someone else do the driving means your time can be spent on something else. And, it just may be less stressful. Commuting time will never come back to you, so you may as well make the most of it.

Plus, we think there are a few things you can do which the article didn’t go into.

First, could you carpool? Maybe just one day per week to start. Save gas and spend time with someone, maybe someone on your team. You can meet, after a fashion. Or just spend time together quietly sitting or even having some fun. Getting to know your colleagues better is probably not a bad thing.

And another idea is, if it’s safe and feasible, how about bicycling to work? We all know that more aerobic exercise is good for us. You may even live longer. Bring a change of clothes – don’t wear your good clothes to bike. No good bike paths or bus routes by you? Then talk to your local government. 

Because you may not be the only person who wants to change their commute.

#1. Hire the Right People, the First Time – and Keep Them

We saved the best for last. For our favorite remarkable tip, we focused on developing and keeping top talent. HBR says keeping top talent is an ongoing process. You don’t just offer (for example) a company gym. You give your best people a chance to better develop themselves.

This kind of individual treatment is what we’ve been advocating for customers and prospects, too.

Treat people like they were the only person in the world. What a concept.

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

Generation Z Marketing Credit Suite

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 Generation Z marketing today, and more!

The post Great Generation Z Marketing and More –10 Brilliant Business Tips of the Week appeared first on Credit Suite.

Land Minority Small Business Loans to Fund Your Business

If you are a person of color who runs a business, you could end up having some trouble finding traditional loans that will work with your unique needs.  Typically, there are not a lot of loans designed specifically for minority business owners. However, there are some loan options that work better than others. 

How to Find Minority Small Business Loans: What You Need to Know

What’s the trick to finding minority small business loans? Where is a minority business owner to go when the traditional options for loans do not work out?  There are a few options for minority small business loans that you may not realize are out there. Some involve the government through the Small Business Administration, while others involve going a more non-traditional route with private lenders. 

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

Where to Start with Minority Small Business Loans: The Small Business Administration

You cannot talk about minority small business loans without some discussion on the SBA.  While they do not lend funds themselves, they do handle the administration of a number of loan programs that help all small businesses get the funds they need through partner lenders.   

Minority Small Business Loans: 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.  These include 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. 

Minority Small Business Loans: 504 Loans 

504 loans are also available up to $5 million and can buy machinery, facilities, or land. Typically, they are used for expansion.  They work especially well for commercial real estate purchases. 

Minority Small Business Loans: Microloans 

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

Minority Small Business Loans: SBA Express Loans 

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

Minority Small Business Loans: SBA Community Advantage Loans 

This is a pilot program running through 2020, with 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 these.  Get more details on the SBA, these loan programs, and additional resources offered by the Small Business Administration here.    

Other Options for Minority Small Business Loans: Private Lendersminority small business loans Credit Suite

Though not specific to minorities, some private lenders offer products that work better with the unique needs and challenges of minority business owners than others. 

OnDeck

OnDeck offers lines of credit and term loans with fixed interest rates.  You can get up to $500,000 with a term loan. Also, they 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. 

BlueVine

BlueVine offers a number of financing options including 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 those looking 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. 

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 number of years in business requirement. However, they require less minimum annual revenue 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. 

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. 

Tips for Landing A Minority Small Business Loan

Once you know where to go to get minority small business loans, you need to know how to get them.  Meeting all the requirements is the first part, but these tips can help you out even more.

Appear Fundable

A business that appears fundable to a lender is an established business separate from its owner.  It is complete, organized, and either has solid revenue or a solid startup plan. 

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

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 imperative. 
  • 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 more about fundability here. 

You Must Have a  Business Plan

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 they have research to show the market supports that plan. Find out more about business plans here. 

Be Prepared

It is almost impossible to over prepare when applying for a loan.  Consequently, you should try to anticipate any questions. Pull together forms and documentation they may ask for.  Items such as past tax returns, financials, and licenses are common. The more you have ready to go before you start, the faster and easier the process will be. 

Your Personal Credit Has to Be Strong

You need a solid personal credit score to land the best small business loans.  There is just no way around it. As you can see above, a score of 600 or above is required almost across the board with the exception of some invoice factoring options.  

Remember, it is possible 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.  Look for what may be having 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 Is Important Too

Of course, when it comes to minority small business loans, you cannot ignore business credit.  While it 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 take business credit into consideration 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. 

Additional Options for Funding a Minority Owned Business

Grants are also an option for minority business owners. They can help bridge funding gaps and stretch funds from minority small business loans. However, they are highly competitive.  Many are only available to those that meet very specific criteria. Here is just a sample of some minority business grants that are out there.  

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. After that, 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.

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

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 

Know Your Options for Minority Small Business Loans and Other Resources

As a minority business owner, it is important that you know what options are available to you regarding funding and support.  The list above is a starting point, but here is so much more out there. Be sure to do your own research. In addition, get your personal and business credit in order, and be sure your business is fundable, so that you do not miss out on an opportunity.  

The post Land Minority Small Business Loans to Fund Your Business appeared first on Credit Suite.

Get Small Loans For Your Business the Easy Way With a Great Bank Rating

Even small loans can be challenging without a great bank rating. Learn why this little-known number matters, and how you can improve yours.

Need Small Loans for Your Business?

Even the search for small loans can be a recipe for frustration if you aren’t ready and don’t take the time to build your bank credit score. But what’s a bank credit rating, anyway?

Your Bank Credit Score – What’s it All About?

Do you know the distinction between bank credit scores and small business credit?

Company credit is the full and complete amount of money that your business can get from all manner of creditors. That means the banking system, credit unions, credit card companies, and also leasing firms. And it also means providers, under what’s called trade credit or vendor credit or trade lines. That is, the vendor credit tier.

A bank credit rating, on the other hand, is a measure of the full amount of borrowing capacity which a business can get from the banking system only. 

Bank Credit Scores Clarified

A business can get more company credit promptly, so long as it has at the very least one bank reference and an average daily account balance of at the very least $10,000 for the most recent three month time period. This setup will generate a bank credit score of a Low-5. So this means it is an Adjusted Debt Balance of from $5,000 to $30,000.

A lower rating, like a High-4, or balance of $7,000 to $9,999 will not instantly turn down the small business’s loan application. Nevertheless, it will slow down the approval process.

What is a Bank Score?

A bank rating is a measure of the average minimum balance as kept in a business bank account over a 3 month long period. Hence a $10,000 balance| will rank as a Low-5, a $5,000 balance will rank as a Mid-4. So a $999 balance will rate as a High-3, etc.

A company’s chief objective should always be to maintain a minimum Low-5 bank rating (or, an average $10,000 balance) for at least three months. This is because, without a minimum of a Low-5 score, most banks will operate under the assumption that the business has little to no capacity to pay off a loan or a business line of credit.

But there is one thing to remember: you will never actually see this number. The financial institution will simply keep this number in its back pocket.

The Bank Score Ranges

The numbers work out to the following ranges:

To get a High-5 score, your company will need to have an account balance of $70,000 to $99,999. For a Mid-5 score, your business must have an account balance of $40,000 to $69,999. And for a Low-5 rating, your business needs to hold onto an account balance of $10,000 to $39,000. So your company needs this level bank score or better to get a bank loan.

For a High-4 score, your company has to have an account balance of $7,000 to $9,999. And for a Mid-4 rating, your small business must maintain an account balance of $4,000 to $6,999. So for a Low-4 score, your small business will need to have an account balance of $1,000 to $3,999.

Ruining Your Bank Score

Unfortunately, there are a lot of ways to really destroy your bank rating. Here are 7 – and how you can fix them in order to get small loans or really any level of financing.

7th Way to Ruin Your Bank Credit Score and Lose Out on Small Loans

Do not maintain a minimum balance for a minimum of three months. Given that every bank rating cycle is based on the previous 3 months, a continuously seesawing balance ought to damage your bank score.

6th Way to Destroy Your Bank Credit 

Don’t bother to ensure that your business bank accounts are reported precisely the same way as all of your small business documents are, as well as with the exact same physical address (no post office box) and telephone number. Sow confusion here by editing one and not another, or not remedying an error if there is one.

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Small Loans

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

5th Way to Destroy Your Bank Credit and Lose Out on Small Loans

To accompany #6, do not see to it that each and every credit agency and trade credit supplier also lists the business name and address the precise same way. This is every keeper of financial documents, earnings and sales taxes, internet addresses and e-mail addresses, directory assistance, and so on.

No loan provider is going to stop to consider the myriad manners in which a business might be listed, when they explore the business’s creditworthiness. For this reason if they are not able to locate what they need quickly, they will either deny an application or it won’t be reported to a business credit reporting agency such as Experian, Equifax or Dun & Bradstreet.

Therefore, if they are not able to discover what they need quickly, they will just reject the application. So see to it your records are a mess!

4th Way to Damage Your Bank Credit Score

Never manage your bank account responsibly. This means that your small business must not avoid writing non-sufficient funds (NSF) checks at all costs, because those annihilate bank ratings. Non-sufficient-funds checks are something which no business can afford to let happen.

Balancing checkbooks and accounts is so dull anyway. You’ve got adequate money without even making sure, right?

3rd Way to Destroy Your Bank Credit Rating and Lose Out on Small Loans

To add to #4, do not include overdraft protection to your bank account ASAP, in order to avoid NSFs. Why bother thinking in advance or preparing for the future? Everything is going to be fantastic forever, right?

Writing checks insufficient funds (NSFs) is a sure way to destroy your bank score.

2nd Way to Damage Your Bank Credit Score

Do not let your small business show a positive cash flow. The cash coming in and leaving your business’s bank account must show a positive free cash flow.

A positive free cash flow is the quantity of profits left over after a business has paid every one of its expenses. According to Investopedia, it “represents the cash a company can generate after required investment to maintain or expand its asset base. It is a measurement of a company’s financial performance and health.”

When an account shows a positive cash flow it indicates your small business is producing more earnings than is used to run the business. That means the financial institution will feel your company can pay its expenses.

So if you actually intend to trash your bank score, get whatever’s expensive for your business so your expenses overtake your profits. Doesn’t every manufacturing facility deserve plush carpeting in the loading dock?

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Small Loans

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

1st Way to Ruin Your Bank Credit and Lose Out on Small Loans

Financial institutions are extremely motivated to lend to a company with consistent deposits. And a business owner should also make regular deposits in order to preserve a positive bank score. The business owner needs to make several regular deposits, greater than the withdrawals they are making, in order to have and preserve a good bank rating. If they can do that, then they will have a great bank credit rating.

Consistency is the hobgoblin of little minds, right? So be a free spirit!

Damage Your Business’s Bank Score and Losing Out on Small Loans – Even Though You Will Never See This Number

You, the entrepreneur must never make regular deposits. And these deposits ought to never be more than the withdrawals you are making, in order to ruin your bank credit rating.

If you can do these things, then your company will have a dreadful bank credit rating. And, subsequently, a bad bank credit rating means your firm is far less likely to get small business loans.

Just Kidding: Obviously We Do Not Really Want You to Miss Out on Small Loans!

So, where do you go from here?

The First Great Way to Rescue Your Bank Credit Score

Possibly the most convenient way to attain and maintain a good bank credit is to deposit at least $10,000 into your small business bank account and maintain it there for as much as a half year. While you will still have to make consistent deposits, this one straightforward step will aid in 3 ways. 

One, you will have maintained an excellent minimum balance for at the very least three months. Two, you will probably not overdraw with such an excellent balance. And three, you will get to the magic minimum for a Low-5 bank credit rating. Hence you will be dealing with our #4 and #7, above.

And you might even have the ability to get around our #3. But we still highly recommend overdraft protection.

The Second Wonderful Way to Rescue Your Bank Credit Rating

A 2nd need is to make sure your small business account details are consistent across the board, all over. While it might take some work order to ensure everything is right, you will be taking care of #5 and #6, above.

The Third Great Way to Rescue Your Bank Credit 

A third necessity is to make regular deposits. And make certain they are more than the quantities you are withdrawing every month. This will take care of our #1 and #2 smoothly.

Takeaways for Your Bank Credit Rating and Small Loans

Your bank rating is not to be trifled with. Although the financial institutions maintain a secret regarding them, failing to keep your bank credit rating high will make it a great deal harder to do well in business. You might not even get small loans, so be diligent!

Small Biz Lending Credit Suite

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

The post Get Small Loans For Your Business the Easy Way With a Great Bank Rating appeared first on Credit Suite.

Contrast Business Credit Cards and also Save Money

Contrast Business Credit Cards and also Save Money

Today’s company owner have the ability to capitalize on the rewards provided to them by getting company bank card. Whether it is a little or huge organisation, having a credit line is essential and also company owner require to contrast organisation bank card to identify whether they fit their organisation demands. In retrospection, by figuring out which card remains in line with a proprietor’s organisation, she or he is in fact making one of one of the most important choices an entrepreneur can make.

For some entrepreneur, establishing what sort of service charge card fits the requirements of their service might be an overwhelming job. What’s essential to remember is that taking a seat as well as conceptualizing is much better than discovering later on that a poor choice was made and also it can promptly come to be an extremely pricey error.

Various company bank card supply entrepreneur different points. Business proprietor should realize that if an organisation charge card uses significant vacationer’s advantages, like traveling factors as well as tourist’s insurance policy, however that entrepreneur never ever is needed to take a trip, what good does that feature provide for his/her organisation? When business proprietor establishes what finest fits the requirements of his/her service, after that complies with the procedure of study, the most effective bank card selection can be made.

Credit scores card firms using service credit scores cards satisfaction themselves on showcasing what the business is providing. ‘Pay back’ standards might be either the following month or account repayments might be extended out to allow organisation proprietors have the deluxe of not fretting regarding paying the equilibrium on their service debt cards. Contrasting organisation cards can often be a challenging experience however for the a lot of component it is a required job due to the fact that making informed options is essential when self used in order to stay clear of service failing.

Contrasting service charge card can bring about establishing what fits the demands of your service. The sorts of calling card differ and also each deals motivations to local business owner in order to keep or produce long-term company partnerships and also respectability. There are, nevertheless, particular sorts of company charge card that all entrepreneur, tiny or big, ought to make the most of.

It is best to look for the kind of organisation credit history card that uses appealing reduced passion prices that are not just executed briefly, however that will certainly remain reduced for the life of the service credit history card. Make specific the reduced rate of interest price is not marketed for simply the initial month of the service debt card or for the initial year of the organisation credit score card.

Some service debt cards have extraordinary cash money back discounts programs, however have a limitation to the number of money back grants the service debt card gets. There are likewise some company credit score cards that offer organisation proprietors the choice to pay over time or pay equilibrium in complete. The lower line is to contrast organisation debt cards in order to pick the best one to fulfill all of the organisation’ requirements.

Whether it is a little or huge service, having a line of debt is critical as well as organisation proprietors require to contrast organisation credit score cards to figure out whether or not they fit their company demands. The company proprietor should be conscious that if a service credit history card provides significant tourist’s advantages, like traveling factors as well as vacationer’s insurance coverage, yet that organisation proprietor never ever is called for to take a trip, what good does that feature do for his or her company? The kinds of company cards differ as well as each deals rewards to service proprietors in order to preserve or produce lengthy long-term organisation partnerships as well as respectability. It is best to look for the kind of organisation debt card that supplies eye-catching reduced passion prices that are not just carried out momentarily, however that will certainly remain reduced for the life of the service credit scores card. Make specific the reduced passion price is not marketed for simply the initial month of the service credit rating card or for the very first year of the company credit rating card.

The post Contrast Business Credit Cards and also Save Money appeared first on ROI Credit Builders.

Contrast Business Credit Cards and also Save Money

Contrast Business Credit Cards and also Save Money

Today’s company owner have the ability to capitalize on the rewards provided to them by getting company bank card. Whether it is a little or huge organisation, having a credit line is essential and also company owner require to contrast organisation bank card to identify whether they fit their organisation demands. In retrospection, by figuring out which card remains in line with a proprietor’s organisation, she or he is in fact making one of one of the most important choices an entrepreneur can make.

For some entrepreneur, establishing what sort of service charge card fits the requirements of their service might be an overwhelming job. What’s essential to remember is that taking a seat as well as conceptualizing is much better than discovering later on that a poor choice was made and also it can promptly come to be an extremely pricey error.

Various company bank card supply entrepreneur different points. Business proprietor should realize that if an organisation charge card uses significant vacationer’s advantages, like traveling factors as well as tourist’s insurance policy, however that entrepreneur never ever is needed to take a trip, what good does that feature provide for his/her organisation? When business proprietor establishes what finest fits the requirements of his/her service, after that complies with the procedure of study, the most effective bank card selection can be made.

Credit scores card firms using service credit scores cards satisfaction themselves on showcasing what the business is providing. ‘Pay back’ standards might be either the following month or account repayments might be extended out to allow organisation proprietors have the deluxe of not fretting regarding paying the equilibrium on their service debt cards. Contrasting organisation cards can often be a challenging experience however for the a lot of component it is a required job due to the fact that making informed options is essential when self used in order to stay clear of service failing.

Contrasting service charge card can bring about establishing what fits the demands of your service. The sorts of calling card differ and also each deals motivations to local business owner in order to keep or produce long-term company partnerships and also respectability. There are, nevertheless, particular sorts of company charge card that all entrepreneur, tiny or big, ought to make the most of.

It is best to look for the kind of organisation credit history card that uses appealing reduced passion prices that are not just executed briefly, however that will certainly remain reduced for the life of the service credit history card. Make specific the reduced rate of interest price is not marketed for simply the initial month of the service debt card or for the initial year of the organisation credit score card.

Some service debt cards have extraordinary cash money back discounts programs, however have a limitation to the number of money back grants the service debt card gets. There are likewise some company credit score cards that offer organisation proprietors the choice to pay over time or pay equilibrium in complete. The lower line is to contrast organisation debt cards in order to pick the best one to fulfill all of the organisation’ requirements.

Whether it is a little or huge service, having a line of debt is critical as well as organisation proprietors require to contrast organisation credit score cards to figure out whether or not they fit their company demands. The company proprietor should be conscious that if a service credit history card provides significant tourist’s advantages, like traveling factors as well as vacationer’s insurance coverage, yet that organisation proprietor never ever is called for to take a trip, what good does that feature do for his or her company? The kinds of company cards differ as well as each deals rewards to service proprietors in order to preserve or produce lengthy long-term organisation partnerships as well as respectability. It is best to look for the kind of organisation debt card that supplies eye-catching reduced passion prices that are not just carried out momentarily, however that will certainly remain reduced for the life of the service credit scores card. Make specific the reduced passion price is not marketed for simply the initial month of the service credit rating card or for the very first year of the company credit rating card.

The post Contrast Business Credit Cards and also Save Money appeared first on ROI Credit Builders.

Business Loans and Fundability: What You Need to Know

What you eat affects your health.  How much you study affects how well you do on a test.  How well you listen affects your understanding. Our actions have consequences.  It’s just a fact. Similarly, the fundability of your business affects your ability to get business loans. 

Everything You Need to Know About How Fundability and Business Loans Go Together

Think about it. Getting business loans can be tricky.  How could you possibly get funding if your business isn’t fundable?  You may be thinking to yourself, what is fundability? It’s simple really.  A fundable business is a business that lenders perceive as legitimate and able to pay back their debts.  

Lenders Don’t Give Business Loans to Businesses That Lack Fundability

It’s true.  Lenders are in it for the money.  Therefore, if they see anything that makes them think that lending to your business is a high credit risk, they will not approve business loans.  If they feel like you will not repay the loan, they will fear a bad return on investment. They want their money, plain and simple. If it looks like you won’t pay, you are out of luck. Your business has to be fundable to get business loans. 

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

How to Achieve Fundability

Fundability itself is a giant.  Honestly, most business owners equate fundability, and thus the ability to get business loans, with a strong credit score and solid profits.  However, there is so much more to it. In fact, it starts with the way your business is set up. We call that the foundation of fundability. 

Everything related to the foundation of your business can affect your ability to get business loans.  Many of the elements you would never dream make a difference to lenders, actually do. Sometimes the data doesn’t take a direct line to lenders, but weaves its way through the maze of public records, data agencies, and credit reporting agencies until a dozen tiny red flags culminate to set off blaring alarms in a lender’s ears.  

How do you get a fundability?  Start with the foundation. 

Business Loans and Fundability: Building a Fundable Foundation

The elements of a foundation of fundability include the following. 

Contact Information

The first step in setting up a foundation of fundability is to ensure your business has its own phone number, fax number, and address.   Now don’t panic. That doesn’t mean you have to get a separate phone line, or even a separate location.  Truthfully, you can still run your business from your home or on your computer if that is what you want. You do not even have to have a fax machine. Find out how here and here.  

EIN

The next thing you need to do is get an EIN for your business.  If you don’t know, this is an identifying number for your business that works similarly to how your SSN works for you personally.  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 be fundable. The reason is, makes your business appear to be legitimate. Additionally, it offers some protection from liability. 

Which option you choose does not matter as much for fundability as it does for what you actually need. The best thing to do is talk to your attorney or a tax professional.  You need to know that you are going to lose all of your time in business and any credit history you may have accumulated. That’s because, 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 time in business is important as well.  The longer you have been in business the more fundable you appear to be. That starts on the date of incorporation, regardless of when you actually started doing business. The best thing to do is to incorporate from day one if that is an option.

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. Not only that, but certain types of funding will not be available to you in the future without a business bank account. 

Licenses

For a business to be legitimate it has to have all of the necessary licenses it needs to run.  If it doesn’t, red flags are going to fly up all over the place. Make sure you have all of the licenses necessary to legitimately run your business at the federal, state, and local levels. 

Website

These days, you do not exist if you do not have a website.  Still, having a poorly put together website can be even worse. For many, this is the first they see of your business. If it appears to be unprofessional, it will not bode well for you with consumers or potential lenders. Have a website that is professionally designed.  It’s worth the money it takes to hire a designer. Make sure your email address has the same URL as your website also. Do not use a free email service like Yahoo or Gmail.

Business Loans and Fundability: Business Credit Reports

Your business credit reports, much like your consumer credit reports, detail the credit history of your business.  As a result, they help lenders determine the creditworthiness of your business. 

They come from a number of sources, known as credit reporting agencies, or CRAs.  The main ones are Dun & Bradstreet, Experian, Equifax. Of course, there are others.  They are used less often however. Since you have no way of knowing which one your lender will choose, you need to make sure all of these reports are up to date and accurate. 

Other Business Data Agencies 

In addition to the business credit reporting agencies that directly calculate and issue 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.  Consequently, they could have access to information relating to automobile accidents and liens, among other things. Unfortunately, you can’t change the information they already have.  What you can do, however, is ensure any further information they have access to going forward is positive.  

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Identification Numbers 

Other than the EIN, there are identifying numbers that go along with your business credit reports.  You need to be aware that these numbers exist. Some are simply assigned by the agency. One, however, you need to take action to get.  That’s the D-U-N-S number.

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

Credit history is the largest factor relating to your credit score.  In return, credit score is a huge factor in the fundability of your business.  

Credit history involves several factors.  

  • 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. 

Since a ton of loan applications are turned down each year because of fraud concerns, this is a problem.   Maybe your business licenses have your personal address but now you have a business address. You have to change it.  Perhaps some of your credit accounts have a slightly different name or a different phone number listed than what is on your loan application. Do your insurances all have the correct information?  Your business information needs to be consistent across all platforms and records. 

Business Loans and Fundability: Financial Statements

Both your personal and business tax returns need to be in order.  Not only that, but you need to be paying your taxes, both business and personal.  Additionally, have financial statements professionally prepared for your business.  It’s also a good idea to do the same for your personal financials. 

Bureaus

There are several other agencies that hold information related to your personal finances that you need to know about.  Everyone knows about FICO. Your personal FICO score needs to be as strong as possible. It really can affect business fundability and almost all traditional lenders will look at personal credit in addition to business credit. Records from other agencies such as ChexSystems can come into play as well. 

Personal Credit History

Your personal credit score from Experian, Equifax, and Transunion does matter.  You have to have your personal credit in order. It will definitely affect the fundability of your business. The number one way to get a strong personal credit score or improve a weak one is to make payments consistently on time. 

Monitor your personal credit to ensure all the information is correct. 

Business Loans and Fundability: The Application Process

First, consider the timing of the application.  Is your business currently fundable? If not, do some work  to increase fundability before applying for business loans. Next, make sure that your business name, business address, and ownership status are all verifiable.  Lastly, make sure you choose the right business loans for your needs. Choosing the right product to apply for can make all the difference. 

Business Loans and Fundability: How Do You Know Which Type of Lender to Use?

There are so many options it can be hard to figure out which ones will work best for you.  First, you need to decide between traditional and non-traditional lenders. If your business is fundable, a traditional lender will work and offer the best rates and terms.  If not, you may need to start with a non-traditional, private lender.  

Maybe you are somewhere in between.  If so, an SBA loan may be perfect. Traditional lenders work with The Small Business Administration to offer loans through their programs. 

Business Loans: Options that Can Help Build Fundability

If traditional lenders are not an option, you can look at private lenders.  You know business credit is a large piece of fundability. If your business credit is lacking when you are looking for business loans, it can be helpful to find loans that can help build your business credit and thus, your fundability.  Some private lenders do this by reporting your on-time payments to business credit reporting agencies. Here are few. 

Business Loans from Fundation

Fundation offers an automated process that is super-fast. Originally, they only had invoice financing.  Later, they added the line of credit service. Repayments happen automatically. They draft them electronically, and this occurs on a weekly basis.  One thing to remember is that you could have a repayment as high as 5 to 7% of the amount you have drawn currently, as the repayment period is relatively short.  

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

Fundation reports to Dun & Bradstreet, Equifax SBFE, PayNet, and Experian, making them a great option if you are looking to increase fundability by building business credit. 

BlueVine

As you find with many alternative small business loans, lenders often offer options more similar to invoice factoring and lines of credit.  The reason is, these present less risk than straight term loans. This is true of BlueVine as well as Fundbox.  

The minimum loan amount available from BlueVine is $5,000 and the maximum is $100,000. Annual revenue must be $120,000 or more and the borrower must be in business for at least 6 months. Personal credit score has to be 600 or above. Also, BlueVine does not offer a line of credit in all states.  You can find out more in our review here.

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

Business Loans from OnDeck

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

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

OnDeck reports to the standard business credit bureaus.

biz loans Credit Suite3

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

The Business Backer

These guys offer a product they call FlexFund Line of Credit.  Funds range in amounts from $5,000 to $240,000.  Draws can be repaid on either a daily or weekly basis.

They report to Dun & Bradstreet and Equifax.

Business Loans and Fundability: Now You Know

Of course, it would be impossible to list all of the different types of lenders and loans available to your business.  These are a great starting point however. Start with taking a close look at your fundability. Apply for loans that you can get approved for based on that.  Then, if you need to work on your fundability, the sooner the better. The longer you wait, the more tangles you will have to work through.

The post Business Loans and Fundability: What You Need to Know appeared first on Credit Suite.

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Start Smarter Hiring Practices in 2020 and More –10 Brilliant Business Tips of the Week

It’s 2020, time for smarter hiring practices. Hiring is costly, but bad hiring can be devastating to a business. Learn how to perfect this essential business skill. Plus, nine other ways to take your small business to the next level this year.

The Hottest and Most Brilliant Business Tips for YOU – Bring Smarter Hiring Practices to Your Business 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! Start with smarter hiring practices and more and watch your business grow and thrive.

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. How to Excel in Your Business

Our first jaw-dropping tip is all about working with our old friend, Excel. HubSpot says this old workhorse program is on many if not most resumes. That is, for people looking for office jobs. There are any number of traditional uses for Excel. The article provides instructions for how to create a business model. That’s worth the price of admission all by itself.

So, instead, we want to concentrate on one specific use in the article.

Time Tracking

There are any number of time tracking apps and software out there. But before you go and plunk down serious money for one or learn a new system (even if it’s free), our old friend Excel can also do the job.

All you really need is a spreadsheet with the following:

Dates Covered 1/17/2020 to 1/23/2020
Date Time In Lunch Start Lunch End Time Out Hours Worked
1/17/2020 8:45:00 AM 1:00:00 PM 1:30 PM 5:00 PM 7:45
1/18/2020 9:00 AM 12:00 PM 1:00 PM 5:30 PM 7:30
1/19/2020 8:15 AM 12:15 PM 1:00 PM 6:00 PM 9:00
1/20/2020 8:30 AM 11:30 AM 12:00 PM 5:30 PM 8:30
1/21/2020 9:00 AM 11:45 AM 12:30 PM 5:00 PM 7:15
1/22/2020 9:00 AM 12:00 PM 12:45 PM 4:15 PM 6:30
1/23/2020 9:15 AM 12:30 PM 12:45 PM 5:45 PM 8:15
Total Hours Worked 54:45:00

 

Formulas

Here’s how the formulas work. Let’s start with cell A1 (that’s where you type Dates Covered). In cell A3, put the first date of the time period you’re covering. Obviously, if your time period is longer or shorter, add cells accordingly. In our example, you put the last date of the time period in cell A9.

For cell B1, type =A3. This gets you the first date of the time period. In cell A4, type to. And in cell A5, type =A9 (if you’re adding or subtracting dates, then you want the cell including the last date after the equals sign).

Format cells B3 through E9 under Custom. Add h:mm AM/PM as the format. For cells F3 through F9, format under Time, 13:30. In cell F10, format it under Time, 37:30:55.

The F3 formula is: =(C3-B3)+(E3-D3). Place your cursor in the right lower corner of cell F3 until you see a black cross. Pull down until cell F9 and you’ll get the right formula for all of the cells where you need it.

The F10 formula is: =SUM(F3:F9). Everything else is just formatting and depends on how pretty you want the spreadsheet to be.

To calculate salary, add a column where you convert the hours to regular format (it’s probably easiest to do this manually). Hence, 8:30 should be written as 8.5. Add one more column and type in =(cell name*salary), where cell name is the designation of the cell with the converted format and salary of course is what you pay on an hourly basis.

Excel Rocks, and It Works

When your company gets larger, Excel might no longer be a feasible way to handle your time tracking. But until it is, this hardworking program can be your best friend.

#9. Get in the Ring with Business Heavyweight, Amazon

The next awesome tip is about competing with the 700-pound gorilla in the room: Amazon. Small Business Bonfire notes smaller enterprises can successfully compete. They are often nimbler and can be quicker to react to new information or business conditions. Those are huge advantages. Here are a few more.

Personalized Service

There are only a few areas where Amazon can truly offer a personalized sales experience. For example, when installation is offered. And even then, installation isn’t offered everywhere. It’s a lot more likely to be available if you live in a major urban center (like I do).

So, you, as a small business owner, have got something that Amazon doesn’t. 

In your shop, you can greet customers by name if you know them. And you can use data to give them personalized recommendations. While Amazon tries to do so with offering related products, they don’t always hit their marks.

You’re smarter than Amazon’s suggestion database. 

I guarantee it.

Smarter Hiring Practices Credit Suite

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! Make smarter hiring practices a part of your business’s DNA in 2020, and more.

#8. Improve Your Website Rankings

Our following life-changing tip concerns upping your website rankings in search. Success Harbor lays it all out for us. 

Now, we’ve blogged about a lot of their suggestions already. Here, they’re in a convenient format. But I will caution you: some of the information is out of date. For example, they suggest getting backlinks from StumbleUpon. Well, they shut their doors in June of 2018.

So, take their suggestions with a grain of salt.

We suggest, of course, to create as good a website as you can. That means speed, links that work, user security, and relevance. Because what helps you succeed in search will also help you succeed in business.

#7. Google, Let Me Talk to You About Search

For our next sensational tip, we looked at improving and optimizing your website for voice search. Doers Empire says that voice search is getting big – which is exactly what our SEO people are telling us. Current reports say a good 3.5 billion voice searches go on every day. Yeah, that’s billion with a B.

We recommend reading the entire article as there are details which you shouldn’t miss. So, instead, we’ll concentrate on one area only.

Long-Tail Keywords Rule

You may have heard the term before (at least, I hope you have). If you haven’t, no sweat. Here’s what they are.

Let’s say you go shopping for a birthday present for the six-year-old daughter of a friend. And you know this little girl loves animals. The more exotic, the better.

Instead of searching for just gifts, your search might look something like this.

Show me zebra-striped barrettes for a little girl. The seller must offer free shipping.

You’ll get a lot fewer results this way. But the chances of them being on point are extremely high. 

By being specific in your prose on blogs and product and landing pages, you’ll get prospects who are a lot closer to buying. They know what they want. And once search serves them with choices, they’ll decide.

You may pick the first return you get. Or the one with the best prices, or a seller you know and trust. Maybe you’ll select a local retailer or made in the USA or even a seller where you have an account and can get loyalty points.

To make your search even faster, you might even specify those particulars from the start. If you only get one search result, then so what? If it’s precisely what you want and need, you have no need for a second search result.

Specify. You’ll never regret it.

#6. Save Bucks on Search

This tip is so cost-effective, and it works! Word Stream tells us all about improving your pay per click (PPC) budget. Paid search can be a godsend. It can get your product or service in front of so many more people! So, don’t spend an arm and a leg on it.

A lot of this article is about budgeting and forecasting, so please check it out for the details.

Our biggest takeaway from it was to keep in mind that results in search aren’t immediate. So, be patient! And recognize that any budgeting will need to take multiple month payments into consideration.

You won’t be an overnight success. But with smart paid search planning, your not-so fast success won’t come at the expense of too much of your company’s budget.

#5. Smarter Hiring Practices Can Be Yours

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

It’s 2020, time to bring smarter hiring practices to your business. 

Small Business Bonfire says there are some understandable legal pitfalls when it comes to hiring and firing.

The article provides valuable advice for both hiring and firing. It really should be read in its entirety – we highly recommend it. This includes doing a business background check, of course.

But first, here are some personal stories/observations on both.

Hire Better in 2020 Credit SuiteHiring – a Personal Story

Of course, your intrepid blog writer has been hired in places. And I have also done hiring in some places.

My first tip is to make candidates feel comfortable. Remember, you were in the exact same situation before. Being kind costs your company nothing (whereas the hiring process for just one new employee can run about $4,000). And being kind can help more introverted candidates shine. 

Not all of your employees have to be live wires, unless you’re hiring for the Sales Department. Hiring some of the quieter people out there can help better balance your workforce. Going out of your way to make them comfortable can help some people who otherwise may not interview well most of the time. More perspectives are good for any business.

Firing – a Personal Story

Yeah, I have been through this as well. And I have had to fire people. It’s never easy. It shouldn’t be.

My suggestion is to, assuming the person wasn’t actively stealing from the company or harassing your other employees, make it easy for them to collect unemployment. There are states where there are a lot of restrictions on who can collect. You may be disappointed in a hire who didn’t work out and didn’t really do much. But keep your personal feelings out of it if you can.

You may be less than thrilled with your ex-employee. But your okay could be all that’s standing between them getting an unemployment check and being able to feed their family – or not. You’re angry at them, maybe. But you’re probably not angry at their spouse or significant other. And for God’s sake, you’re not angry at their children. Right?

So, don’t begrudge them the ability to collect on insurance that you and they have paid into. You won’t get that money back by being nasty. 

Do this, and you’ll be able to sleep at night.

Smarter Hiring Practices Credit Suite

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! Make smarter hiring practices a part of your business’s DNA in 2020, and more.

#4. Use Your Smarter Hiring Practices and Put Together a High-Performing Team Through Leadership

Check out this spectacular tip, all about building higher-performing teams through leadership. Talk about your smarter hiring practices! Proof Hub notes that their first suggestion is to do just that – to engage in smarter hiring practices and bring in people who you feel can excel. And, they need to be people who you feel will work well together.

We wanted to focus on one particular tip.

Address the Team, Not Individuals

We found this to be a fascinating idea. Now, of course teams are composed of individuals. Their roles and responsibilities must be clearly defined. Underperformers should be shored up and helped, so they can succeed.

But this particular tip is about when things go a little, shall we say, ca-ca.

When one person is continually blamed for problems, it doesn’t just hurt them. It doesn’t just make their work life miserable. It can also make others’ work lives miserable. If you have put together a good team who like to work together, then blaming X for really anything is going to be felt by the entire team.

We would like to add not just addressing the entire team when things go haywire. We also strongly suggest any personal issues for one employee in particular be handled in private. 

Because dressing down an employee in front of others, no matter how well-deserved, makes people uncomfortable.

Do the right thing and wait for a time when you’re not in front of the rest of the team. HR may need to be involved, of course. It can’t always be one on one. Just, eliminate the audience.

Treat that employee like you would want to be treated.

#3. Huddle Up and Get Your Business Going

It’s not your imagination: this winning tip can help you more effectively handle your short huddle-style meetings. Great Game tells us a company huddle should be handled more or less like an actual sports huddle. 

That is, check your current game conditions. What works, and what doesn’t?

Check the score. That is, what are your numbers?

And plan the next play. As in, what are your upcoming plans?

But our fave tip was to get all fired up. Being psyched about who you are, and what you do, is a great way to lead your business into future success. Dare we say? It helps make your smarter hiring practices really pay off.

#2. Polish the Shine on a Dull Industry 

Our second to last unbeatable tip can give you a new perspective on creating compelling content, even when your company and your industry aren’t exactly excitement fests. Noobpreneur reveals all about garnering attention even when you’re industry is kind of, for lack of a better word, dull.

Sorry.

So, how do you do it? We really liked the examples and ideas this article had, so we recommend reading it in its entirety. Hence, we’ll zero in on just one of their ideas.

Focus Your Blog Topics

We firmly believe in this! Consider these Friday posts. While they aren’t about business credit, per se, they are about running a small business. Marketing is a huge part of business, and it can lead directly to success. Furthermore, the better you can market yourself and your business, the better you’ll handle important business moments such as meeting with investors or talking to a lender about a loan.

Going utterly off-topic is a poor idea pretty much 100% of the time. Why?

Because your readers aren’t coming to your blog for your movie reviews if your company is all about baking cookies. With no connection to your main topic, your readers will see the off-topic post for what it is – a waste of their time.

Ouch.

There’s nothing wrong with branching out a bit. But you need a connection to the main topic at hand. Without that connection, you just look like you’re trying to be all things to all people. And that never works out.

#1. Become an Investor Magnet

We saved the best for last. For our favorite remarkable tip, we focused on attracting investor attention with your personal attributes. Startup Professionals says a personal connection between you and angel investors and venture capitalists can be the difference between success and failure.

They cited a few examples of how you can become catnip to investors. Here are a few that we especially loved.

Integrity, Humility, and Stability

Yeah, we know. There are a lot of wacko geniuses out there. But stability goes a lot further with investors. You could be brilliant.  But if the investors think there’s a chance you’ll crash and burn, they’ll lose interest. And if they think you’ll skip town with their funds, then they’ll be happy to have the law on you.

Effective Communication

You don’t have to be a salesperson. The two suggestions in the article were to personalize communications and to listen as well speak. And let’s face it, that’s good life advice anyway.

Already Set and Achieved Fundamental Milestones

Many investors want to see you’re already on you’re way. This doesn’t necessarily mean you have to already be profitable. It’s more that you have set goals and have met some of them. This doesn’t just show you’re operating well. It also shows that you’re capable of making SMART goals and follow through. 

Expert in Your Chosen Field

This, we felt, is key. This doesn’t just show that you know your stuff. It also means that you keep up with your industry. And it means that you are willing and able to continue your education. You don’t rest on your laurels. You read, you network with people in your field, and even return to school if necessary. And you care about being right.

Pro tip: it’s not just investors who love that.

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

Smarter Hiring Practices Credit Suite

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! Make smarter hiring practices a part of your business’s DNA in 2020, and more.

The post Start Smarter Hiring Practices in 2020 and More –10 Brilliant Business Tips of the Week appeared first on Credit Suite.