Tag: Business

5 Awesome Ways to Build Business Credit Score

Build Business Credit Score to Get the Funding You Need

Business owners hear it all the time.  You need business credit to run a business.  You shouldn’t run your business using personal credit.  Business credit is the best way to ensure you can get the funding you need to build and grow your business.  The problem is, you don’t hear a lot about what business credit is, how to get it, or how to build business credit score.

Did you know you can’t automatically build business credit score?  That’s right. It isn’t like your personal credit score where accounts are automatically reported. You have to be intentional when you want to build business credit score.  In fact, if you have not been intentional, you may not even have business credit yet, despite the fact that you own a business.

How Do You Get Business Credit?

Before you can even begin to build business credit, you have to establish your business as an entity separate from yourself.  Here is how that happens:

You have to incorporate

This is the most decisive first step in separating your business credit from your personal credit.  When you cease operating as a sole proprietorship and incorporate your business, it will be easier for credit agencies to recognize your business separately. You have a few options.

  • C Corp

This is the most definitive separation, but it is also the most complicated and expensive.  Before choosing this option, be certain there are reasons other than establishing business credit that it needs to be done.  If it isn’t necessary for some other reason, there are other, less complicated, and less costly options.

  • S Corp

This option basically offers the same separation as the C Corp, but taxes are paid at the personal level, rather than requiring the business to be taxed as well, resulting in double taxation.  It is also cheaper than incorporating as a C Corp.  If you aren’t required to file as a C corp, this is a good alternative.

  • LLC

Forming a Limited Liability Corporation results in less liability, thus the name, and offers enough separation to serve the purpose of establishing business credit.  If you are not required to be a C Corp or S Corp, this is the easiest and most cost-effective way to create the separation of business and personal credit needed.

Share our foolproof business credit building checklist and tell your friends about how you’re building business credit the quick and easy way.

Get an EIN

You need to apply for an EIN and stop using your Social Security Number as the identifying number for your business.  Your SSN is tied to you, personally, and it is virtually guaranteed that anything connected credit-wise will end up on your personal credit reports.

The process for applying for and EIN is easy.  The IRS has an online form, and as soon as all the information is verified you receive your number.  It typically happens almost immediately.

Get a DUNS Number

Dun and Bradstreet (D&B) is the most widely used business credit reporting agency.  They issue each business on file a 9-digit DUNS number.  Application is easy and free, and once you have that number, you will be even closer to establishing credit for your business separate from your own.

Separate Contact Information

Your business needs its own phone number.  This way, when you apply for credit, you can enter contact information that is separate from your own.  When information is reported to agencies, sometimes the phone number is an identifying factor.  If you and your business share a number, that just decreases the level of separation.

Be sure you get your business phone number listed in the directory under the business name.

Business Bank Account

There has to be a dedicated business bank account.  Run all business transactions through this account.  Resist the temptation to pay personal expenses from it by paying yourself a salary instead.

build business credit score credit suite2

What if You Already have Business Credit?

The next question is, how do you build business credit score if you have business credit already, but it is bad?   How do you improve your business credit score?  It is impossible to improve on anything if you do not know what you are starting with, what you have to work with, and what you have control over.  Let’s break down where exactly your business credit score comes from and what it means.   This is important to  get a good starting point.

Dun & Bradstreet

Dun & Bradstreet offers several different types of business credit reports.  In fact, there are six different reporting options in all.  They all offer different information related to credit worthiness.  It takes all of them to get the whole picture.

The report most used is the PAYDEX.   This is probably because it is the easiest to understand.  It is the options most like the consumer FICO score.  It measures how quickly a customer makes payments and ranges from 1 to 100.  Scores of 70 or higher are acceptable.   For reference, a score of 100 shows payments are made in advance, and a score of 1 indicates that they are 120 days late, or more.

Experian Commercial

Experian uses what it calls Intelliscore as its credit ranking.  There are more than 800 different factors that they use to predict a company’s credit risk. With Intelliscore, a score of 76 or higher indicates a low risk of default or late payment. If a score falls between 51 to 75, it indicates a low to medium risk.  Scores from 26 to 50 are medium risk, and from 25 down to 1 is medium high to high risk.

Experian Commercial offers a number of other scores as well, similar to Dun & Bradstreet.

Equifax Business

Equifax gets its business credit data in ways similar to D&B and Experian.  They get Net 30 type industry trade credit information from a wide variety of suppliers that provide products and services to businesses on an invoice basis.

In addition, they use financial data with this industry trade data, and they add in utility and telephone payment data.  They also use public records information.

Share our foolproof business credit building checklist and tell your friends about how you’re building business credit the quick and easy way.

 Equifax Business credit scores include:

  • The Small Business Credit Risk Score for Suppliers

It is scored on a scale of 1 to 100, with 90+ indicating that a business has paid its obligations as agreed.  An 80 to 89 means they are 1 to 30 days past due, 60 to 79 indicates they are 31-60 days overdue, 40 to 59 is 61 to 90 days past the payment date.  It  just goes down from there.

  • Business Failure Risk Score

This score indicates the chance of a company paying its bills late on the following scale:

  • 497 – 816: 25% or less chance of payment being overdue
  • 452 – 496: 26 – 50% chance of payment going overdue
  • 415 – 451: 51 – 74% chance of delinquent payments

FICO SBSS

The FICO SBSS is the business version of your personal FICO credit score. It is becoming increasingly more common for lenders to use this score, rather than the Experian or even the D&B PAYDEX business credit score.

Unlike your personal FICO, the SBSS reports on a scale of 0 to 300. Of course, the higher the better, but most lenders require a score of at least 160.

This is a lot different from other business credit scoring models because it combines your business credit score, personal credit score, and other financial information such as business assets and revenue. It is a total global financial picture rolled into one score.

How Do You Know What Your Score Is?

Unfortunately, there are not a lot of ways to find out what your business credit score is without paying. Find  out how to get business credit reports for free here.  Most options do not work on a continual basis however.  You will eventually have to pay.

The prices are not cheap. Here are the prices for the top 3 business credit reporting agencies:

  • Dun & Bradstreet reports range in price from $61 to $229 per report.
  • Experian reports are $49.95 per report.
  • Equifax is $99.95 per report.

As for your FICO SBSS, that is a whole other story.  You cannot really get a copy of it because it will be different from lender to lender.  They system calculates a score based on what the lender tells it to look for.  This means the lender can weight certain aspects of the calculation. For example, if one lender says that they want the personal credit history to be heavily weighted and another prefers to focus on another type of debt, those two lenders will have two different scores.  Meanwhile, another lender may leave out student loans all together.  The next may not want any personal credit information at all.  With the huge number of possibilities, you could feasibly have a different FICO SBSS score every time.

With Credit Suite, you can monitor your scores with Dun & Bradstreet and Experian for a fraction of the cost. Get more information here.

5 Way to Build Business Credit Score

Once you understand  where it comes from, what it is, and what it means, you can get to work and build business credit score.  Here are some of our favorite tips.

1.      Get more accounts reporting

The fastest way to build business credit score is to get as many accounts as possible reporting on-time payments.  The fastest way to do this is to work with starter vendors.

These are vendors that will offer net terms on invoices without a credit check.  After you pay, they will report those payments to the credit agencies. As more and more of these vendors report your payments, your business credit score will start to grow.

Another way to get more accounts reporting on-time payments is to ask vendors you already work with to report.  You pay things like rent, utilities, and your telephone bill each month.  Sometimes if you ask them, they will report those payments.  They are not required to though.

2.      Dispute Mistakes on Your Credit Report

This is one thing that a lot of business owners do not realize they can do to build business credit score. Once you are able to see your business credit report, be sure to dispute any mistakes you find.  Do this in writing.  When you send the letter, you have to be very detailed about what the mistake is.  Be clear about the correct information, and send copies of supporting documents.  These are documents like receipts and cancelled checks. Additionally, use certified mail to send dispute information.  .

Dispute your or your business’s Equifax report by following the instructions here: www.equifax.com/small-business-faqs/#Dispute-FAQs.

You can dispute mistakes on your or your business’s Experian report by following the instructions here: www.experian.com/small-business/business-credit-information.jsp.

And D&B’s PAYDEX Customer Service contact number is here: www.dandb.com/glossary/paydex.

Share our foolproof business credit building checklist and tell your friends about how you’re building business credit the quick and easy way.

3.      Do Business with SBFE Members

The Small Business Finance Exchange collects information from its members for their database.  They then provide this information to partner credit agencies.  These credit agencies can then distribute that information to other SBFE members seeking credit data on potential borrowers.  Consequently, by doing business with members of the Small Business Exchange, you ensure that the credit agencies have as much information as possible related to your business.

4.         Work on Credit Utilization

It’s important to remember that using too much of your available credit can cause problems.  Your credit utilization, as indicated by your debt-to-credit ratio, needs to stay as low as possible.  So you cannot use up every bit of credit you have.  Carrying balances close to your limits will raise this ratio.  As a result, your credit score will go down.  Granted, you need to carry balances and make payments to get those payments reported.  However, avoid getting too close to your limits.

5.         Don’t Forget About Your Personal Credit Score

Despite the fact that business credit is separate from your personal credit, there are some business credit reporting agencies, like Experian Business and FICO SBSS, that use your personal credit history in the calculation.  As a result, it is possible for a poor personal credit score to have a negative effect on your business credit score.  So don’t neglect it.

Follow These Tips and You Can Build Business Credit Score

Here’s the thing.  It will not do you any good to get more accounts reporting, correct mistakes, or work with SBFE members if you are not making payments on time.  Regardless of how much credit you have available and how little you are using, not paying will tank your score fast.  Hence, it will totally negate any progress you make to build business credit score.  You just have to pay, on-time, and consistently.

Whether you are starting from scratch or trying to build up a bad score, trying to build business credit score can be completely overwhelming.  Honestly, you have to start somewhere though, right?  These tips can help you find a good starting point, and from there you just keep swimming.

 

The post 5 Awesome Ways to Build Business Credit Score appeared first on Credit Suite.

4 Fabulous Tips for Getting Small Business Loans

The Key to Getting Small Business Loans is to Be Smart and Prepared

It is inevitable in the life of any small business that the topic of small business loans is going to come up.  No one loves debt, but funding is going to be necessary, and loans are the most common way to get that funding.  For many business owners however, it can be overwhelming.  Our 4 fabulous tips for how to getting small business loans may help.

Getting Small Business Loans By Going Shopping

Who doesn’t love a great deal?  If you are shopping for clothing you have several options for where to go.  Whether you hit the thrift store, a high-end boutique, or something in-between will depend on a number of factors.  What type of clothing are you looking for? Where do you need to wear it?  How long does it need to hold up?  How much do you have to spend?

The same is true when shopping around for the best business loans.  Where you go and what you get will depend on your particular business situation.  You have to find the small business loans with the best rates and terms that you actually qualify for.  When you start shopping, be sure to check out all of the following.

Large Banks

These typically offer the loans with the best rates and terms, but they are the hardest to qualify for.  This is because large banks have very little wiggle room.  They want to see strong financials, strong credit scores, and an established business.

Getting Small Business Loans at Community Banks

These are smaller, local institutions.  Their terms and interest rates are usually competitive, and they are sometimes more willing to give a little on credit score if other mitigating factors exists.

Learn business loan secrets with our free, sure-fire guide.

Credit Unions

The first thing about credit unions is, you have to be a member to get a loan with them.  However, they tend to have the best options for rates, if you are a member and meet the requirements.

Online Lenders

If you struggle with finding a small business loan due to credit score or time, online lenders may be your saving grace.  They are fast, and though interest rates are typically higher, they are more flexible with credit scores as a general rule.  Some of our top picks are included below.

 

●        Fundbox

biz lending Credit Suite2

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

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

 

●        OnDeck

Obtaining financing from OnDeck is quick and easy. First, you apply online.  You will receive the decision once application processing is complete. If you get approval, your loan funds will go directly to your bank account. The minimum loan amount is $5,000 and the maximum is $500,000.

They do require a personal credit score of 500 or more, and you must be in business for at least one year. Annual revenue must be at or exceed $100,000. In addition, there can be no bankruptcy on file in the past 2 years and no unresolved liens or judgements.

●        Kabbage

Kabbage is a well known competitor in the world of online lenders. They offer a small business line of credit that can help accomplish your business goals quickly. The minimum loan amount is $500 and the maximum is $250,000. They require at least one year in business and $50,000 or more in annual revenue, or $4,200 or more in monthly revenue, over the last 3 months.

They are great if you need cash quickly. Also, their non-traditional approach puts less weight on your credit score, so they may work better for borrowers struggling in that area.

Types of Small Business Loans

Remember you will also have choices when it comes to the type of small business loan you choose.  As you are shopping around, consider that some lenders work with the Small Business Administration.  If you qualify, an SBA program may be just what you need.  Find out more about those programs here.

There will also be options for secured and unsecured loans. If you have collateral, a secured loan will usually have better rates and terms.

Nail the Business Plan for Getting Small Business Loans

Any traditional lender is going to need to see a business plan as part of the loan application process.  Honestly, it is best to hire a professional business plan writer if possible. A professional business plan writer can work with you to gather all the necessary information and compile it into the traditional, acceptable format.

Learn business loan secrets with our free, sure-fire guide.

If you cannot hire a business plan writer however, there are a number of options that can help you. The Small Business Administration offers a template, and your local small business development center can help as well.

For a business plan to be taken seriously by a lender, it needs to include the following:

Opening

  • An Executive Summary– This is a complete summary of the business idea.
  • Description– The description goes into further detail than the summary, describing the business. What type of business is it? What product or service will it offer? This is where you work to get others excited about your business. Note that this is important even if your business is already operating, you just need to write in present, rather than future tense.
  • Strategies-Layout your plan for getting started. Do you have a marketing plan, area in mind for location, or idea of how many employees you will start with? What is your ramp up plan? Again, already operating businesses will state the current operating strategy.

Market Research

  • Market Analysis– This actually includes two parts. All that market research you did goes here:

o Analysis of audience: What need will or does your business fill, and for who? Are you a child care facility filling a need for affordable child care for working moms? Are you a diner offering a quick lunch option for those working downtown? How will your business fill the need? All of that information goes in this section.

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

If you are not a new business, this will be a market analysis that supports your need for funding, as well as how you plan to use the funds.

The Plan

  • Plan for Design and Development: How is all of this going to play out, from start to finish? What steps are you going to take? This is more detailed than your strategies section.
  • Plan for Operation and Management– Who will own or does own the business and who will run or currently runs it from day to day. This could be as simple as stating that you are the sole owner and operator, or as complicated as laying out a complete partnership plan or board or directors’ format. It just depends on how your business works.

Financials

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

Hunt and Gather

When you apply for small business loans, there is certain information that is pretty much necessary regardless of the type of loan or lender.  This information is required in addition to a business plan.   For example, you will need:

  • Insurance documents
  • Business licenses
  • Personal income tax returns, usually for the previous 3 years
  • Other personal financial information not included on the tax returns.

Go ahead and hunt these down, put hands on them, and be prepared with copies to present to lenders if they ask for them.  They almost certainly will.

It Takes Two Baby

Large, traditional lenders are going to expect a good personal credit score.  This is true despite the fact that you may have business credit.  Smaller lenders, and especially online lenders, may be more willing to give a little on the personal credit score if your business credit is solid.  They may also be willing to take into consideration things such as annual revenue and length of time in business if credit isn’t as good as they normally like to see.

What this means for you, is that when you go to get small business loans, you need to be sure your personal credit and your business credit are both as strong as possible.  It takes two.

What to Do If your Personal Credit isn’t So Great

If your personal credit score isn’t so hot, there are a few things you can do to beef it up.  The first, of course, is to make your payments consistently only time.  In addition, consider how much of your credit you are using versus what you have available to use.  This is your debt-to-credit ratio, and it affects your credit score negatively if it is too high.  You can lower it by opening new accounts, but that also lowers your average age of accounts, which will have a negative effect on your score as well.  So, you will need to do some research to see if the benefit will outweigh the cost of opening a new account to decrease your debt-to-credit ratio.

It is also important to get a free copy of your personal credit report each year and look for mistakes.  If you find something that should not be there, report it to the credit reporting agency in writing.  You will need to send in supporting documents also, but be sure to send copies and not originals.

Learn business loan secrets with our free, sure-fire guide.

What about Business Credit?

Business credit can help you with getting small business loans if it is strong enough.  Many lenders will still want to see your personal credit score, but if it isn’t quite up to par, solid business credit can make all the difference. Some non-traditional lenders will even accept business credit in lieu of personal credit.

How do you get business credit?  You have to build it, intentionally.  It doesn’t just happen on its own like personal credit does.  If you do not intentionally establish and build separate business credit, then all of your business transactions are simply reported on your personal credit report.

You must establish your business as an entity separate from yourself and start from ground zero to build a business credit report.  It takes a while, so if you haven’t done so yet, now is the time.  The first step is to visit irs.gov and formally incorporate your business.  You will also need an EIN, which is like an SSN but for your business.  This can be done for free on the IRS website as well.  Find out more about how to establish and build business credit here.

Getting Small Business Loans: Be Smart and Be Prepared

The key to finding small business loans is to be smart and be prepared.  Don’t just take the first offer you find. Look around and find the best rates and terms possible.  Check out different types of lenders and various loan options.  Then, get your business plan and other information together so that the process runs as smoothly as possible.

Remember than some lenders and loan programs may have additional requirements.  This list of how to get small business loans doesn’t include all the various hoops some lenders may have you jump through.  It will, however, give you a great start to finding the funding you need to help your business grow.

The post 4 Fabulous Tips for Getting Small Business Loans appeared first on Credit Suite.

Manage Military Marketing and More –10 Brilliant Business Tips of the Week

Military marketing? We’re looking at lessons in marketing success from the military – more on that later. But first….

The Hottest and Most Brilliant Business Tips for YOU – Military Marketing Matters 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!

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. Military Marketing Means a Successful Campaign is a Must

Our first jaw-dropping tip is all about finding the money for your first marketing campaign. The Self Employed says it’s a lot like finding the bucks for anything when you’ve got a new business.

So, you’re going to have to be creative.

Crowdfunding

Their first idea is one of our pet favorites – running a crowdfunding campaign. Crowdfunding is   a perfectly legitimate way of getting money for your business. So why not crowdfund to pay for your first advertising campaign?

However, as the article points out, this is going to be nigh well impossible to do if you don’t have at least something of an audience already. Hence, you probably don’t want to be doing this if it’s happening before you get prospects and customers.

Don’t put the cart before the horse.

Subletting For the Win!Marketing ideas from the Armed Forces Credit Suite

What?

Now, keep in mind, this is only going to be an option if you have your own space. If you don’t (or, say, you’re using a virtual office space), it is probably not going to be on the table.

But if you’ve got your own space, then read on.

Consider this. If you live in a semi-remote area and there isn’t that much of a startup scene, it is possible there are few options for entrepreneurs who don’t have their own office space. Why not provide some as a sublet to your own space?

Your extra desk could make a difference for another entrepreneur, and help your community, to boot. Pretty cool for a bit of furniture you’re not using, anyway.

#9. Get on the Groupon Train

The next awesome tip is about setting up Groupon offers for your small business. Score notes Groupon is a better venue for raising awareness than turning a profit.

But why?

Don’t Look for a Profit Here

It’s due to Groupon’s requirements. After all, they demand you offer a substantial discount, as in 50 – 90% off. And then they take a cut (the listing itself is free).  So if you sell something for $100 (a good or a service; it doesn’t matter), and you offer 90% off, Groupon will take a cut as their marketing fee. This fee will depend on industry and customer demand, plus the market. Let’s say that’s 10% (this is a figure for-instance and isn’t based on anything in particular).

For your $100 good or service, you’re now getting $9. That is, you lopped off 90% as your discount, which brings us to $10. And then with Groupon taking a 10% marketing fee, that’s another $1 off (10% of $10).

Ouch.

Still, if you’ve got to get stuff out of a warehouse, and need it to move fast and hopefully get at least something for it, then this could be a way to go. Plus, there’s no law that says your discount has to be so steep. You can go with the minimum of 50% off, which would put your take at $45 ($50 is 50% of $100, and then Groupon in this example is taking another 10% off the top, or $5).

Rather, Look for Awareness to Grow

A far better use of Groupon is to up the awareness of your product or service. Perhaps the best bit of advice in the entire article is to use Groupon not only for this purpose, but also to plug underutilized services or get rid of excess inventory.

So, if you go into working with Groupon this way, it can be a win-win. After all, it’s advertising (in a way), which you’re being paid for (in a way). And if you can unload some white elephants at the same time, then so much the better.

Military 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! Get lessons from the people in uniform with military marketing and more.

#8. Put LinkedIn to Work for Your Business

Our following life-changing tip concerns improving your LinkedIn lead generation. Wordstream lays it all out for us. The article is comprehensive, and we highly recommend reading it in its entirety.

Our favorite tip was to differentiate between quantity and quality when it comes to generated leads. What do we mean by that?

True story time.

Surveys, AKA What Kind of Potato Are You?

When was the last time you filled out an online form for, well, anything? I recently decided my time is worth far more than a trinket, and so are my personal details. As a result, unless the offer is a great one which I will use ($100 Amazon gift certificate? Yes, please!), I will pass it by unless I have some other reason for filling out a form. say, I might want to know more about a product.

But I also take note of exactly what a business wants out of me. As in, what does my marital status have to do with the type of clothes I might want to shop for? If it’s just to decide on a title for me, then why not add that as a form in an address field and keep out the specifics? After all, a woman who’s married, divorced, or widowed might want to be called Mrs. A woman of any marital status might want to be called Ms. (I do).

And if you’re a doctor, then all of that is out in deference to Dr.

I also pay attention to the number of questions. At a certain point, usually when the ten-question threshold is passed, I bail. Sorry businesses! But I often have better uses for my time.

But What Does This Have to Do With Leads?

A lot! The more questions you get answered, the more qualified your prospect is going to be. The fewer, then the less qualified. But with fewer questions, you’ll get more responses.

Hence, you need to make a decision. Do you want far fewer prospects but they’re all pretty warm, or a ton of chilly not so well-qualified prospects? There are virtues to both approaches. Choose the one which works best for your business.

#7. Oh, Won’t You Please Stay?

For our next sensational tip, we looked at creating reasons for customers to stay. LinkedIn says that retaining customers is vital for continued business success. And truer words were never spoken.

But, how do you do it?

Listen!

We really hope it’s a no-brainer to most to know that you need to keep your finger on the pulses of your customers. That is, conduct a relationship health check, if you will. Work with your customers and don’t just disappear until it’s time to renew.

After all, their circumstances may have changed since the initial sale. And we certainly hope so, and that it’s due to using your product or service. Because nothing stands still, it’s imperative to figure out if what you first offered is still going to be helpful.

Maybe they need more, because they’ve expanded. Or maybe they’ve had a not so good time of it and need to cut back, but still want to do business with you.

Either way, you’ll never know unless you ask, and listen to their responses.

Stay in Touch

This goes hand in hand with the first. If you bug out the moment that the sale is finalized, why should your customers trust you to be around when they have questions or need some sort of service?

Your mission in sales doesn’t end the moment the check is cashed and clears. Much like military marketing, you need to hang around afterwards.

Make Life Easy for ‘Em

And this third tip should be at the top of your mind, no matter what. Is your phone number hard to find, and it’s the only way to get service? Then change that, yesterday. That can take the form of adding online support or another phone line or changing your website design to make the phone number more prominent.

And if your customers can’t figure out how to renew in a short amount of time (as in, often, a minute or less!), then they’ll go to your competition, if it’s easier to renew there.

In these days of responsive web design, there’s no excuse for making such things obscure.

Pro tip: make sure you website works for phones. No matter what, the vast majority of Americans have cell phones, and the vast majority of those are smart phones.

If your website isn’t optimized for mobile, then you’re losing money.

There’s no clearer way to say that.

#6. Start a New Business Effectively

This tip is so cool, and it works! Noobpreneur tells us all about starting a new business effectively.

We liked this sensible, practical guide to starting a new business, and succeeding.

However, we felt it glossed over one area which we kinda know a few things about – getting funding. So there’s a bit that’s incomplete there.

However, the remainder was good advice. In particular, it makes a great deal of sense to not quit your day job until you’re sure your brand-new baby business is making money.

#5. Try Taking Your Advertising and Communications Cues from Military Marketing

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

Military marketing is something we’ve probably all seen a lot of. And we can take some lessons from it.

Perhaps our favorite tip had to do with thinking offense all the time. That is, continually acting. This makes a great deal of sense, as passivity can, at times, lead to things just happening to you. The concept was also to eliminate or at least minimize indecisiveness.

However, we do have to say that we like the idea of analyzing decisions. Of course the idea in the article is to eliminate the dreaded analysis paralysis. But we still think you should at least think about what you’re doing.

That is, charge up and take that hill! Just, know which hill.

Military Marketing and Leading from the Front

What do they mean by this? Essentially, the idea is to have vision and courage. We like this idea, although there’s a lot to be said for employee input. And that is one thing which the military really doesn’t do much of – get feedback from the lower levels in the command food chain.

So, we encourage courage (that’s hard to say) but, at the same time, there are some bits of military marketing which we should probably all take with a grain of salt.

Startup Professionals says these lessons from the folks in uniform can give you a

Military 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! Get lessons from the people in uniform with military marketing and more.

#4. Freshen Up Facebook and More

Check out this spectacular tip, all about revamping your company’s social media profiles. Fundera notes that social media profiles can sometimes get stale over time.

So, how do you fix that?

We really loved their idea of using a mascot. Now, this idea cannot work with every single company out there. But for those where it can, it can be a fun and entertaining way to keep your audience engaged.

Consider Swatch, the mascot for Mood Fabrics who is also an unofficial Project Runway mascot. This cute dog’s picture is in just about everything. He makes everything more accessible.

Think about your mascot a bit like colleges do. And in the interests of full disclosure, your intrepid blog writer is a graduate of Boston University and our mascot is the Boston Terrier. Which is what made the connection that much more obvious.

If your brand can do with a mascot, then have at it. And, by the way, your mascot can be someone’s child or a stuffed animal.

Listen to This

Another fantastic idea was to publish playlists. These can be fun and utterly unrelated to your business. Or maybe they can more subtly be related to it.

Do your employees have get up and go songs which get the blood pumping? Those are great! Or maybe a little mood music? If you’ve got a long haul trucking company, there are any number of songs about places and driving. And don’t forget Route 66!

Even marches are probably okay (talk about your military marketing!), assuming your clientele would find them interesting and pleasant.

Just make sure the songs are G rated. The last thing you want is to accidentally insult your customers.

#3. Influencers All Have to Start Somewhere

It’s not your imagination: this winning tip can help beginner influencers. Young Upstarts tells us there are ways which embryonic influencers can become more seasoned.

While this article is written more for the influencers themselves, there are bits of information which are useful for you, the entrepreneur.

Our favorite tip was to use an influencer matching site.

We had no idea such things existed!

Did you? We don’t want to feel left out.

Back to the topic at hand, these influencer sites (in this, as in all things, Google is your friend) are a way for influencers to connect with brands.

Keep in mind, the more seasoned influencers with larger followings are probably not going to feel the need to use such services. But that’s okay. This can be a way to link up with an influencer with fewer followers. It should cost less than working with a big wheel influencer.

And who knows? Maybe your brand and your influencer will grow together.

#2. Multitasking Just Might Not Be the Best Idea After All

Our second to last unbeatable tip can give you a new perspective on quitting multitasking and focusing better. Addicted 2 Success reveals all about how to keep your focus from splitting.

Breaks, Breaks, and More Breaks

We loved this idea, and it’s probably not surprising. When you fail to take frequent breaks, your mind wanders. And, inevitably, you end up checking Facebook or Twitter briefly, or text someone, etc. A few minutes here and there, and it’ll all add up.

So why not schedule those times, rather than let them take little nibbles out of your day and your focus? Interval working also makes sense simply because it’s not possible for us to go, go, go all day long. We need breaks anyway!

Swallow That Live Frog First Thing

The other tip we really liked was to do the hard stuff first. Take advantage of being fresher and give yourself the advantage of being done with the hard stuff when you’re getting tired.

Our corollary tip is to do the most unpleasant tasks early, too. That way, the fun stuff will be a reward.

#1. Throw Some Ice On That Burnout

We saved the best for last. For our favorite remarkable tip, we focused on helping employees avoid burnout. Effortless HR says we, as a culture, don’t value rest time like we should. Unfortunately, we’ve noticed that as well.

A corollary to this is a personal observation – not being treated like a person at the office. Employees can sometimes be treated like just so many cogs in a wheel. And when we treat people that way, it should be no great shock when they start to feel that way.

So, what can you do?

Goals and Credit

There were two tips which go hand in hand. One was to set achievable and realistic goals; the other was to recognize when those goals have been met.

These are key. Long before Credit Suite, your intrepid blog writer worked at places where goal-setting was another box ticked off by management. Goals had little to do with reality. These included going on more trips – yet cutting the budget.

Er, that’s not how the universe works.

Plus recognition, boy howdy, recognition! Money is nice (it’s always appropriate), but it can be spent. Recognition can bring with it promotions and recommendations. And those tend to last longer.

In short, treat your employees like flesh and blood humans.

What a concept.

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

Military 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! Get lessons from the people in uniform with military marketing and more.

The post Manage Military Marketing and More –10 Brilliant Business Tips of the Week appeared first on Credit Suite.

What’s the Best Way to Build Business Credit? We Have the Secret!

Learn the Best Way to Build Business Credit We can show you the best way to build business credit! Get the kind of business funding that can take your business to new heights! The Best Way to Build Business Credit – But What’s Business Credit, Anyway? Small business credit is credit in a business’s name. … Continue reading What’s the Best Way to Build Business Credit? We Have the Secret!

What’s the Best Way to Build Business Credit? We Have the Secret!

Learn the Best Way to Build Business Credit

We can show you the best way to build business credit! Get the kind of business funding that can take your business to new heights!

The Best Way to Build Business Credit – But What’s Business Credit, Anyway?

Small business credit is credit in a business’s name. It doesn’t link to a business owner’s personal credit, not even if the owner is a sole proprietor and the sole employee of the small business.

Accordingly, a business owner’s business and individual credit scores can be very different.

The Benefits

Because business credit is distinct from consumer, it helps to secure a business owner’s personal assets, in the event of a lawsuit or business bankruptcy.

Also, with two separate credit scores, a business owner can get two different cards from the same merchant. This effectively doubles buying power.

Another benefit is that even start-ups can do this. Heading to a bank for a business loan can be a recipe for frustration. But building company credit, when done the right way, is a plan for success.

Individual credit scores rely on payments but also various other factors like credit usage percentages.

But for company credit, the scores actually just hinge on whether a company pays its debts on a timely basis.

The Best Way to Build Business Credit – The Process

Building business credit is a process, and it does not occur automatically. A business will need to actively work to build company credit.

Nonetheless, it can be done easily and quickly, and it is much speedier than building consumer credit scores.

Merchants are a big aspect of this process.

Undertaking the steps out of order will lead to repetitive rejections. Nobody can start at the top with business credit. For example, you can’t start with retail or cash credit from your bank. If you do, you’ll get a denial 100% of the time.

The Best Way to Build Business Credit – Enhancing Company Fundability

A company must be fundable to credit issuers and vendors.

Therefore, a company will need a professional-looking web site and email address. And it needs to have site hosting bought from a vendor like GoDaddy.

Also, business telephone and fax numbers must have a listing on ListYourself.net.

Also, the business telephone number should be toll-free (800 exchange or comparable).

A business will also need a bank account dedicated strictly to it, and it needs to have all of the licenses essential for operation.

Licenses

These licenses all have to be in the exact, appropriate name of the company. And they need to have the same business address and telephone numbers.

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

Learn more here and get started toward establishing small business credit.

The Best Way to Build Business Credit – Working with the IRS

Visit the IRS website and get an EIN for the small business. They’re totally free. Select a business entity such as corporation, LLC, etc.

A company can begin as a sole proprietor. But they will more than likely wish to change to a type of corporation or an LLC.

This is in order to limit risk. And it will optimize tax benefits.

A business entity will matter when it pertains to taxes and liability in case of litigation. A sole proprietorship means the owner is it when it comes to liability and tax obligations. No one else is responsible.

Sole Proprietors Take Note

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

If you do not, then your personal name is the same as the company name. Hence, you can wind up being personally accountable for all small business debts.

In addition, according to the IRS, by having this arrangement there is a 1 in 7 possibility of an IRS audit. There is a 1 in 50 possibility for corporations! Avoid confusion and significantly reduce the chances of an Internal Revenue Service audit as well.

The Best Way to Build Business Credit – Starting Off the Business Credit Reporting Process

Begin at the D&B website and obtain a cost-free D-U-N-S number. A D-U-N-S number is how D&B gets a small business into their system, to produce a PAYDEX score. If there is no D-U-N-S number, then there is no record and no PAYDEX score.

Once in D&B’s system, search Equifax and Experian’s web sites for the business. You can do this at www.creditsuite.com/reports. If there is a record with them, check it for correctness and completeness. If there are no records with them, go to the next step in the process.

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

Vendor Credit Tier

First you should build trade lines that report. This is also known as the vendor credit tier. Then you’ll have an established credit profile, and you’ll get a business credit score.

And with an established business credit profile and score you can begin to obtain credit in the retail and cash credit tiers.

These kinds of accounts tend to be for the things bought all the time, like marketing materials, shipping boxes, outdoor work wear, ink and toner, and office furniture.

But first off, what is trade credit? These trade lines are credit issuers who will give you starter credit when you have none now. Terms are often Net 30, versus revolving.

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

Details

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

To begin your business credit profile the proper way, you should get approval for vendor accounts that report to the business credit reporting agencies. When that’s done, you can then make use of the credit.

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

Best Way to Establish Company Credit Suite

Vendor Credit Tier – It Helps

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

You want 5 to 8 of these to move onto the next step, which is the retail credit tier. But you may have to apply more than once to these vendors. So, this is to verify you are dependable and will pay punctually. Here are some stellar choices from us: https://www.creditsuite.com/blog/5-vendor-accounts-that-build-your-business-credit/

The Best Way to Build Business Credit – Accounts That Do Not Report

Non-Reporting Trade Accounts can also be helpful. While you do want trade accounts to report to a minimum of one of the CRAs, a trade account which does not report can yet be of some worth.

You can always ask non-reporting accounts for trade references. And also credit accounts of any sort will help you to better even out business expenditures, thereby making budgeting less complicated. These are companies like PayPal Credit, T-Mobile, and Best Buy.

Retail Credit Tier

Once there are 5 to 8 or more vendor trade accounts reporting to at least one of the CRAs, then move to the retail credit tier. These are service providers like Office Depot and Staples.

Just use your SSN and date of birth on these applications for verification purposes. For credit checks and guarantees, use the small business’s EIN on these credit applications.

One good example is Lowe’s. They report to D&B, Equifax and Business Experian. They need to see a D-U-N-S and a PAYDEX score of 78 or higher.

Fleet Credit Tier

Are there 8 to 10 accounts reporting? Then move to the fleet credit tier. These are companies such as BP and Conoco. Use this credit to purchase fuel, and to fix, and maintain vehicles. Only use your SSN and date of birth on these applications for verification purposes. For credit checks and guarantees, make sure to apply using the business’s EIN.

One such example is Shell. They report to D&B and Business Experian. They want to see a PAYDEX Score of 78 or better and a 411 business phone listing.

Shell might say they want a specific amount of time in business or revenue. But if you already have enough vendor accounts, that won’t be necessary. And you can still get approval.

Learn more here and get started toward establishing small business credit.

Cash Credit Tier

Have you been responsibly handling the credit you’ve up to this point? Then move to the cash credit tier. These are businesses such as Visa and MasterCard. Just use your SSN and date of birth on these applications for verification purposes. For credit checks and guarantees, use your EIN instead.

One example is the Fuelman MasterCard. They report to D&B and Equifax Business. They want to see a PAYDEX Score of 78 or higher. And they also want you to have 10 trade lines reporting on your D&B report.

Plus, they want to see a $10,000 high credit limit reporting on your D&B report (other account reporting).

Additionally, they want you to have an established company.

These are businesses such as Walmart and Dell, and also Home Depot, BP, and Racetrac. These are normally MasterCard credit cards. If you have 14 trade accounts reporting, then these are doable.

Learn more here and get started toward establishing small business credit.

The Best Way to Build Business Credit – Monitor Your Business Credit

Know what is happening with your credit. Make certain it is being reported and deal with any inaccuracies ASAP. Get in the habit of taking a look at credit reports and digging into the specifics, and not just the scores.

We can help you monitor business credit at Experian and D&B for 90% less than it would cost you at the CRAs. See: www.creditsuite.com/monitoring.

At Equifax, you can monitor your account at: www.equifax.com/business/business-credit-monitor-small-business. Equifax costs about $19.99.

Update Your Data

Update the data if there are mistakes or the data is incomplete. At D&B, you can do this at: https://iupdate.dnb.com/iUpdate/viewiUpdateHome.htm. For Experian, go here: www.experian.com/small-business/business-credit-information.jsp. So for Equifax, go here: www.equifax.com/business/small-business.

The Best Way to Build Business Credit – Fix Your Business Credit

So, what’s all this monitoring for? It’s to challenge any inaccuracies in your records. Mistakes in your credit report(s) can be taken care of. But the CRAs normally want you to dispute in a particular way.

Get your company’s PAYDEX report at: www.dnb.com/about-us/our-data.html. Get your company’s Experian report at: www.businesscreditfacts.com/pdp.aspx?pg=SearchForm. And get your Equifax business credit report at: www.equifax.com/business/credit-information.

Disputes

Disputing credit report inaccuracies generally means you mail a paper letter with duplicates of any proof of payment with it. These are documents like receipts and cancelled checks. Never mail the original copies. Always send copies and keep the original copies.

Fixing credit report inaccuracies also means you precisely itemize any charges you dispute. Make your dispute letter as clear as possible. Be specific about the concerns with your report. Use certified mail so that you will have proof that you mailed in your dispute.

The Best Way to Build Business Credit – A Word about Building Business Credit

Always use credit smartly! Don’t borrow more than what you can pay off. Monitor balances and deadlines for payments. Paying promptly and in full will do more to raise business credit scores than nearly anything else.

Building company credit pays. Good business credit scores help a small business get loans. Your credit issuer knows the small business can pay its financial obligations. They recognize the small business is bona fide.

The business’s EIN links to high scores and lenders won’t feel the need to ask for a personal guarantee.

The Best Way to Build Business Credit – Takeaways

Business credit is an asset which can help your company for many years to come. Learn more here and get started toward growing small business credit.

 

The post What’s the Best Way to Build Business Credit? We Have the Secret! appeared first on Credit Suite.

Discover How To Earn Continuous Money With A Residual Income Business Opportunity

Discover How To Earn Continuous Money With A Residual Income Business Opportunity They have actually begun gaining a recurring earnings. Everybody is looking for a method to make even more cash as well as a recurring earnings service possibility is a terrific means to do so. Direct revenue is revenue an individual makes from doing …

Time for a Change? 6 Reasons to Swap Your Old Card for a New Business Credit Card

…And How to Find the Best New Business Credit Card for Your Business

Just as Thor has his hammer and Captain America has his shield, every business super hero needs an ultimate tool.  You cannot really call them all weapons right?  I mean, a shield is not about destroying, but about protection.  Everyone knows a hammer is a tool.  So, in short, tools can be used as weapons, and superhero tools can serve a variety of purposes, all for the greater good.  So too, can your business credit cards.  Sometimes, however, it is necessary to pursue a new business credit card, also for the greater good.  How do you know when that time has come?  Read on and we’ll tell you.

How Do You Know It’s Time for a New Business Credit Card?

You might not think it’s a hard decision.  Most business owners fall into two camps.  Either they are happy with their card and there is no need for a new one, or you just get a new card whenever you feel like it.  Unbeknownst to most, there actually is a right time and a wrong time to get a new business credit card.  Not only that, but there is also a right and a wrong way to handle the old one.  We can help you with both.

It might be time to ditch the old business credit card and get a new one if:

1.      The Fee is More than the Benefits are Worth

Maybe you are paying a hefty annual fee, but you justify it by weighing it against the rewards and interest rate you receive with the card.  It’s always wise to review that however.  Next time you are about to fork over that fee, take a look at what your options are.  Do you actually use the rewards offered with that credit card?  Are the rewards based on fuel spending and maybe you don’t travel?  Perhaps the rewards are at dining establishments you do not frequent.

Is that interest rate really the best?  Maybe you had a great promotional rate when you first got the card but now it’s nothing special.  Maybe the interest rate was the best available at the time but you are not so sure any more.

If either or both of these situations sound familiar, it may be time to ditch the old card and look for a new business credit card.  There is no point in paying the annual fee if you are no longer reaping the benefits that made you willing to pay it in the beginning.

2.      Your Spending Habits Have Changed

Have you outgrown the credit limit on your own card?  Maybe you spend more now that your business has grown.  It could also be that you spend on different things now.  In the beginning you may have used your card mostly for business supplies and sales dinners, whereas now you may use the funds for travel expenses and inventory more often.

Things change, and those things include spending habits.  The card that worked for your spending habits before may not be the best option for your current spending habits. Take a look at what you have versus what’s available in light of this, and you may see its time to ditch your old card and get a new one.

3.      You Now Qualify for Better Perks

For most business owners, their first business credit card is the first one for which they qualify for approval.  As your business, and your credit score, grows, you can get so much more.  If it’s been awhile since you shopped around, or if you see that you are getting unsolicited offers for cards that offer better perks than your currently have, it may be time to check out what new business credit cards are out there and ditch your old one.

Hit the jackpot with our best webinar and its trustworthy list of seven vendors who can help you build business credit.

4.      You Can Get a Better Interest Rate with a New Business Credit Card

Another thing that you can get stuck with in the beginning, simply because you qualify for nothing better, is a lousy interest rate.  After you spend some time managing your business, and your finances, wisely, you are likely eligible for much better.

You can start with calling your current credit card company, but if they won’t budge, it’s time to drop the old card and start looking for a new business credit card.

5.      There is Any Better Offer With No Fee

Aside from a lousy interest rate and non-existent or useless perks, you can get stuck with an annual fee.  Sometimes the fee it worth it for the perks.  However, it is important to keep watch for cards that have better perks, better rates, and no annual fee.  Even if you get the same perks and the same rates, if there is no fee you are better off. If you are getting offers that do not include an annual fee, it might be time to find a new business credit card.

6.      You Anticipate an Upcoming Large Purchase

Sometimes it is simply a matter of dollars.  If you foresee a larger purchase in the near future, you may need to start looking for a new card.  For example, if you need to buy a new industrial refrigerator or oven, or both, you might not want to put that on a card you use for regular purchases.  Not only can it mess with the amount of funds you have available, but often you can find great deals on interest rates from dealers that sell what you are looking to buy.  It can help to save money and manage finances, by keeping larger purchases separate, if you just go ahead and open a new business credit card.

Bonus: Your Old Card Is Connected to Your Personal Credit Score

You need your business cards to be based on and reporting to your business credit.  In the beginning however, most businesses do not have business credit.  They can get cards based on their personal credit score, so they never even think about business credit.

When it comes to running a business however, business credit is better.

If you have great personal credit, you may think business credit is a non-issue.  Regardless of what your personal credit looks like, as a business owner it is important that you begin to build business credit. Here’s why.

If you use business credit to handle business transactions, your personal finances will not be affected by those transactions.  This means that if your business fails, your personal credit score will stay intact.  Also, you will not be personally liable for your business debts.

In addition, paying business expenses with personal credit cards can keep balances near the credit limit.  This is true even if you pay everything off each month.  Business expenses are large, and personal credit cards usually have smaller limits than business credit cards.

Your debt-to-credit ratio is affected by this.  That will negatively affect your personal credit score even if you make payments on time.

How to Build Business Credit

You know the why, now here’s the how.

Get an EIN

It is a number for your business, kind of like your personal SSN. Apply on the IRS website.  It doesn’t cost anything, and you can use it on business credit applications instead of your SSN.  You may still need to provide your SSN for fraud prevention, but it will not be used to access your personal credit score.

Formally Incorporate

A business must be incorporated to have business credit. The idea is that your business needs to be established as an entity separate from yourself in every way.  Incorporation not only accomplishes that, but it also offers you some liability from business debts.

Dedicated Contact Information

You need a dedicated business address and telephone number.  The phone number should be toll free, and the business should be listed in the directories with its own contact information.

Professional Website and Email

All businesses these days need a professional, user friendly website to be able to compete.  You also need an email address that is specifically for the business.  Do not use a free email service such as Gmail or Yahoo.  The business email address should use the same URL as the business website.

Business Bank Accounts

A separate business banking account is a must.  You can pay yourself from this account, but do not run personal expenses through it.

You Need a D-U-N-S Number

Yes, another number. This time it comes from Dun & Bradstreet.  They are the largest and most commonly used business credit reporting agency, so having a credit report with them is necessary for getting business credit.  The number is free on the D&B website, but they will try to sell you other services.  You don’t need any of them.

A Quick Note on How to Start Building Business Credit

Once you accomplish this, it is time to work on building your business credit score.  There is a process, and you have to work your way through it patiently.  It takes time, but the payoff is big.

Hit the jackpot with our best webinar and its trustworthy list of seven vendors who can help you build business credit.

The Vendor Credit Tier

This is your way in.  These are vendors that will extend net 30 terms on invoices and then report your payments to the credit reporting agencies.  Once they start doing that, your business credit score will be established and grow from there.

This tier includes vendors such as Quill.com, Granger, and Uline that sell items you can use in your business every day.  Make a few purchases with net 30 terms, make your payments on time, and watch your business credit score explode. Find more about vendors that can help you build business credit here.

Working Through the Credit Tiers

After you have 7 to 10 accounts reporting from the vendor credit tier, it should be possible to get approval in the retail credit tier.  These are credit cards attached to specific stores such as Best Buy, Amazon, and Office Depot.

After you have several accounts reporting from the retail credit tier, you will qualify for cards in the fleet credit tier.  These cards are issued by companies like Shell, Fuelman, and WEX to be used for fuel and vehicle repair and maintenance.

The last tier is the cash credit tier.   When you have enough accounts reporting from each tier, and if you are keeping current on all your payments, your score will be strong enough to get your approval for these cards.  They are general credit cards such as MasterCard and Visa that are not attached to a specific store.  Typically, they have higher limits and more rewards options.

 

What to Look for in a New Card

This part is easy. You want something, everything if possible, to be better than the old card.  Your old tool should by default be more powerful than the old one.

  • Annual Fee– Whether the fee is the actual reason for the change or not, if you are changing anyway look for the lowest annual fee possible that also fulfills all your other needs.
  • Interest Rate– Again, maybe you are changing specifically for the lower rate, and maybe you aren’t. Either way you need to find the lowest interest rate possible that still gives you everything else you need.
  • Perks– look for perks you will actually use. If it’s all travel miles and you never travel, there is no point.
  • Credit Limit– A limit that will not handle your spending habits or the amount of your new purchase isn’t going to do you any good. Look for the highest limit you are eligible for. Remember that if you do not use it all, it will only help your debt-to-credit ratio, which in turn helps your credit score.

Hit the jackpot with our best webinar and its trustworthy list of seven vendors who can help you build business credit.

As with all things, you can do an analysis of the cost versus the benefit. If the annual fee means you get a super low interest rate or perks that will save you several hundred dollars a year, it may be worth it.  Before you make a decision, consider this in light of the reason why you are changing versus what is available to you at the moment.

Should You Shut Down the Old Card?

This is where it can get iffy.  You might think it obvious that you close the old account.  That is not always the best option however.  It can actually be beneficial to keep it open.

The average age of all of the accounts on your credit report affects your credit score.  The older your accounts are, the better it is for your score.  Opening a new account already lowers that average, so closing an older account is going to lower it even further.

If you have had the account for a while, it might be better to zero it out and keep it active.  Be sure to determine what level of activity is necessary to keep the account active.  If you have to make a small monthly purchase and pay it off every month or so it may be worth it to keep and older account open.

Is it Time for a New Business Credit Card?

The short answer is, maybe.  If your credit is at a point where you can get better rates and incentives with a lower annual fee, then it is time to get a new card.  If your credit limit on your old card can’t support your current or changing spending habits, it’s time for a new card.  Lastly, if your business credit cards are on your personal credit report, it’s time to build business credit and get a new business credit card.

 

 

 

The post Time for a Change? 6 Reasons to Swap Your Old Card for a New Business Credit Card appeared first on Credit Suite.

The post Time for a Change? 6 Reasons to Swap Your Old Card for a New Business Credit Card appeared first on Buy It At A Bargain – Deals And Reviews.

Time for a Change? 6 Reasons to Swap Your Old Card for a New Business Credit Card

…And How to Find the Best New Business Credit Card for Your Business

Just as Thor has his hammer and Captain America has his shield, every business super hero needs an ultimate tool.  You cannot really call them all weapons right?  I mean, a shield is not about destroying, but about protection.  Everyone knows a hammer is a tool.  So, in short, tools can be used as weapons, and superhero tools can serve a variety of purposes, all for the greater good.  So too, can your business credit cards.  Sometimes, however, it is necessary to pursue a new business credit card, also for the greater good.  How do you know when that time has come?  Read on and we’ll tell you.

How Do You Know It’s Time for a New Business Credit Card?

You might not think it’s a hard decision.  Most business owners fall into two camps.  Either they are happy with their card and there is no need for a new one, or you just get a new card whenever you feel like it.  Unbeknownst to most, there actually is a right time and a wrong time to get a new business credit card.  Not only that, but there is also a right and a wrong way to handle the old one.  We can help you with both.

It might be time to ditch the old business credit card and get a new one if:

1.      The Fee is More than the Benefits are Worth

Maybe you are paying a hefty annual fee, but you justify it by weighing it against the rewards and interest rate you receive with the card.  It’s always wise to review that however.  Next time you are about to fork over that fee, take a look at what your options are.  Do you actually use the rewards offered with that credit card?  Are the rewards based on fuel spending and maybe you don’t travel?  Perhaps the rewards are at dining establishments you do not frequent.

Is that interest rate really the best?  Maybe you had a great promotional rate when you first got the card but now it’s nothing special.  Maybe the interest rate was the best available at the time but you are not so sure any more.

If either or both of these situations sound familiar, it may be time to ditch the old card and look for a new business credit card.  There is no point in paying the annual fee if you are no longer reaping the benefits that made you willing to pay it in the beginning.

2.      Your Spending Habits Have Changed

Have you outgrown the credit limit on your own card?  Maybe you spend more now that your business has grown.  It could also be that you spend on different things now.  In the beginning you may have used your card mostly for business supplies and sales dinners, whereas now you may use the funds for travel expenses and inventory more often.

Things change, and those things include spending habits.  The card that worked for your spending habits before may not be the best option for your current spending habits. Take a look at what you have versus what’s available in light of this, and you may see its time to ditch your old card and get a new one.

3.      You Now Qualify for Better Perks

For most business owners, their first business credit card is the first one for which they qualify for approval.  As your business, and your credit score, grows, you can get so much more.  If it’s been awhile since you shopped around, or if you see that you are getting unsolicited offers for cards that offer better perks than your currently have, it may be time to check out what new business credit cards are out there and ditch your old one.

Hit the jackpot with our best webinar and its trustworthy list of seven vendors who can help you build business credit.

4.      You Can Get a Better Interest Rate with a New Business Credit Card

Another thing that you can get stuck with in the beginning, simply because you qualify for nothing better, is a lousy interest rate.  After you spend some time managing your business, and your finances, wisely, you are likely eligible for much better.

You can start with calling your current credit card company, but if they won’t budge, it’s time to drop the old card and start looking for a new business credit card.

5.      There is Any Better Offer With No Fee

Aside from a lousy interest rate and non-existent or useless perks, you can get stuck with an annual fee.  Sometimes the fee it worth it for the perks.  However, it is important to keep watch for cards that have better perks, better rates, and no annual fee.  Even if you get the same perks and the same rates, if there is no fee you are better off. If you are getting offers that do not include an annual fee, it might be time to find a new business credit card.

6.      You Anticipate an Upcoming Large Purchase

Sometimes it is simply a matter of dollars.  If you foresee a larger purchase in the near future, you may need to start looking for a new card.  For example, if you need to buy a new industrial refrigerator or oven, or both, you might not want to put that on a card you use for regular purchases.  Not only can it mess with the amount of funds you have available, but often you can find great deals on interest rates from dealers that sell what you are looking to buy.  It can help to save money and manage finances, by keeping larger purchases separate, if you just go ahead and open a new business credit card.

Bonus: Your Old Card Is Connected to Your Personal Credit Score

You need your business cards to be based on and reporting to your business credit.  In the beginning however, most businesses do not have business credit.  They can get cards based on their personal credit score, so they never even think about business credit.

When it comes to running a business however, business credit is better.

If you have great personal credit, you may think business credit is a non-issue.  Regardless of what your personal credit looks like, as a business owner it is important that you begin to build business credit. Here’s why.

If you use business credit to handle business transactions, your personal finances will not be affected by those transactions.  This means that if your business fails, your personal credit score will stay intact.  Also, you will not be personally liable for your business debts.

In addition, paying business expenses with personal credit cards can keep balances near the credit limit.  This is true even if you pay everything off each month.  Business expenses are large, and personal credit cards usually have smaller limits than business credit cards.

Your debt-to-credit ratio is affected by this.  That will negatively affect your personal credit score even if you make payments on time.

How to Build Business Credit

You know the why, now here’s the how.

Get an EIN

It is a number for your business, kind of like your personal SSN. Apply on the IRS website.  It doesn’t cost anything, and you can use it on business credit applications instead of your SSN.  You may still need to provide your SSN for fraud prevention, but it will not be used to access your personal credit score.

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Formally Incorporate

A business must be incorporated to have business credit. The idea is that your business needs to be established as an entity separate from yourself in every way.  Incorporation not only accomplishes that, but it also offers you some liability from business debts.

Dedicated Contact Information

You need a dedicated business address and telephone number.  The phone number should be toll free, and the business should be listed in the directories with its own contact information.

Professional Website and Email

All businesses these days need a professional, user friendly website to be able to compete.  You also need an email address that is specifically for the business.  Do not use a free email service such as Gmail or Yahoo.  The business email address should use the same URL as the business website.

Business Bank Accounts

A separate business banking account is a must.  You can pay yourself from this account, but do not run personal expenses through it.

You Need a D-U-N-S Number

Yes, another number. This time it comes from Dun & Bradstreet.  They are the largest and most commonly used business credit reporting agency, so having a credit report with them is necessary for getting business credit.  The number is free on the D&B website, but they will try to sell you other services.  You don’t need any of them.

A Quick Note on How to Start Building Business Credit

Once you accomplish this, it is time to work on building your business credit score.  There is a process, and you have to work your way through it patiently.  It takes time, but the payoff is big.

Hit the jackpot with our best webinar and its trustworthy list of seven vendors who can help you build business credit.

The Vendor Credit Tier

This is your way in.  These are vendors that will extend net 30 terms on invoices and then report your payments to the credit reporting agencies.  Once they start doing that, your business credit score will be established and grow from there.

This tier includes vendors such as Quill.com, Granger, and Uline that sell items you can use in your business every day.  Make a few purchases with net 30 terms, make your payments on time, and watch your business credit score explode. Find more about vendors that can help you build business credit here.

Working Through the Credit Tiers

After you have 7 to 10 accounts reporting from the vendor credit tier, it should be possible to get approval in the retail credit tier.  These are credit cards attached to specific stores such as Best Buy, Amazon, and Office Depot.

After you have several accounts reporting from the retail credit tier, you will qualify for cards in the fleet credit tier.  These cards are issued by companies like Shell, Fuelman, and WEX to be used for fuel and vehicle repair and maintenance.

The last tier is the cash credit tier.   When you have enough accounts reporting from each tier, and if you are keeping current on all your payments, your score will be strong enough to get your approval for these cards.  They are general credit cards such as MasterCard and Visa that are not attached to a specific store.  Typically, they have higher limits and more rewards options.

 

What to Look for in a New Card

This part is easy. You want something, everything if possible, to be better than the old card.  Your old tool should by default be more powerful than the old one.

  • Annual Fee– Whether the fee is the actual reason for the change or not, if you are changing anyway look for the lowest annual fee possible that also fulfills all your other needs.
  • Interest Rate– Again, maybe you are changing specifically for the lower rate, and maybe you aren’t. Either way you need to find the lowest interest rate possible that still gives you everything else you need.
  • Perks– look for perks you will actually use. If it’s all travel miles and you never travel, there is no point.
  • Credit Limit– A limit that will not handle your spending habits or the amount of your new purchase isn’t going to do you any good. Look for the highest limit you are eligible for. Remember that if you do not use it all, it will only help your debt-to-credit ratio, which in turn helps your credit score.

Hit the jackpot with our best webinar and its trustworthy list of seven vendors who can help you build business credit.

As with all things, you can do an analysis of the cost versus the benefit. If the annual fee means you get a super low interest rate or perks that will save you several hundred dollars a year, it may be worth it.  Before you make a decision, consider this in light of the reason why you are changing versus what is available to you at the moment.

Should You Shut Down the Old Card?

This is where it can get iffy.  You might think it obvious that you close the old account.  That is not always the best option however.  It can actually be beneficial to keep it open.

The average age of all of the accounts on your credit report affects your credit score.  The older your accounts are, the better it is for your score.  Opening a new account already lowers that average, so closing an older account is going to lower it even further.

If you have had the account for a while, it might be better to zero it out and keep it active.  Be sure to determine what level of activity is necessary to keep the account active.  If you have to make a small monthly purchase and pay it off every month or so it may be worth it to keep and older account open.

Is it Time for a New Business Credit Card?

The short answer is, maybe.  If your credit is at a point where you can get better rates and incentives with a lower annual fee, then it is time to get a new card.  If your credit limit on your old card can’t support your current or changing spending habits, it’s time for a new card.  Lastly, if your business credit cards are on your personal credit report, it’s time to build business credit and get a new business credit card.

 

 

 

The post Time for a Change? 6 Reasons to Swap Your Old Card for a New Business Credit Card appeared first on Credit Suite.

The 4 Best Small Business Loans of 2019

And 5 Practical Tips for Landing the Best Small Business Loans

If you need a small business loan, you shouldn’t settle for just any loan.  You want the best.  You’re in luck, because we not only have a list of the best small business loans of the year, but we also have in depth reviews and practical tips to help you find not just the best, but the best for your specific business.  Let’s take a closer look.

Where Do You Find the Best Small Business Loans?

I know, you are wondering how there can be more than one best.  The best is the best, and there is only one best when it comes to most things. Business loans don’t work exactly the same way.  The best loan for your business may be different than the best loan for the next business.  That’s because your business will likely have different needs and qualifications than the next one.

US News  handles this by naming the best small business loans in different categories.  This year, these took the prize:

  • OnDeck: Best Lender for Small Business Loans of Up to $500,000
  • BlueVine: Best Lender for Fast Funding
  • Funding Circle: Best Lender for Small Business Loans with a Low APR
  • StreetShares: Best Lender with Prequalification Available

In addition to this list from US News, we would like to add our own bonus category of “Best Lender for Faster, Easier SBA Loans.”  That award, in our opinion, would go to SmartBiz.  They have totally streamlined the Small Business Administration loan program application process making it both faster and easier.

Well that’s all great of course, but to make a true informed decision, you need details.  What makes these the best?

Learn business loan secrets with our free, sure-fire guide.

OnDeck

OnDeck offers lines of credit and term loans with fixed interest rates.  You can’t get up to $500,000 with a term loan.  They also have an A rating with the Better Business Bureau.  The minimum FICO they require is 600.  In addition, you must have $100,000 minimum annual revenue and be in business for at least one year.  Find out more about OnDeck in our review.

BlueVine

BlueVine offers a number of financing options including term loans, invoice financing, equipment financing, lines of credit, and merchant cash advances.  They require you 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.  If you are trying to get invoice factoring, the minimum credit score is just 530!  For 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.  There is no minimum revenue requirement, but 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 is considered by US News to be the best lender with prequalification available.  They offer invoice financing, term loans, and lines of credit.  The number of years in business requirement is one.  They require less minimum annual revenue than the others at only $25,000.  The minimum credit score is 600, and they also have an A+ rating with the Better Business Bureau.  You guessed it.   You can find out more about StreetShares in our review, here.

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SmartBiz

SBA loans typically take a lot of time and paperwork. SmartBiz found a way to speed things up, making it easier than ever. The requirements are a little more strict however. Your credit score has to be 650, and you have to be in business for 2 years or more. In addition, annual revenue has to be $50,000 at least, and there can be no outstanding liens, bankruptcies, or foreclosures in the past 3 years.

Tips for Landing One of the Best Business Loans

1.      Appear Fundable

What is 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 plan if a startup.

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 function 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.

2.      Have a Killer Business Plan

Lenders are also going to want to see a professional business plan.  Even if you are not a startup a plan is necessary.  Startups have to show what they are planning and that they have done the research to make it work.  Established businesses need to show how they plan to use the funds, and that they have research to show the market supports that plan.

At a minimum, a business plan should have the following sections.

  • An Executive Summary– This is a complete summary of the business idea.
  • Description– The description goes into further detail than the summary, describing the business. What type of business is it? What product or service will it offer?
  • Strategies-Layout your plan for getting started. Do you have a marketing plan, area in mind for location, or idea of how many employees you will start with?
  • Market Analysis– All that market research you did goes here and should include not only a market analysis but an analysis of the competition as well.
  • Plan for Design and Development: How is all of this going to play out, from start to finish. What steps are you going to take? This is more detailed than your strategies section.
  • Plan for Operation and Management– Who will own or does own the business and who will run or currently runs it from day to day.
  • Financial Information– This section includes current financials, projections, and a budget plan for the loan funds you are applying for.

3.      Be Prepared

It is almost impossible to over prepare when applying for a loan.  Anticipate any questions they may ask.  Pull together any forms or documentation they might 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.

Learn business loan secrets with our free, sure-fire guide.

4.      Have Solid Personal Credit

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 at least 600 is required almost across the board with the exception of some invoice factoring options.   If you do not have this score however, all is not lost.

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 impacting your score negatively.  If there are mistakes, contact the credit agency in writing to have them removed. If late payments are a problem, start paying on time.  Knowing what you need to work on is the first step.

5.      Have Solid Business Credit

Of course, when it comes to the best small business loans, you cannot ignore business credit.  While it isn’t listed as a primary requirement for most lenders, it can only help you to have strong business credit.

If a lender sees a personal score that isn’t exactly what they need, it is possible they will take business credit into consideration when making their decision.  In addition, if you qualify and have stellar business credit, you may be able to get a lower interest rate.

More Benefits of Business Credit

Since business credit is the one topic out of these 5 that people seem to question the most often, let’s talk about why it’s important.  There are a number of reasons.  The first one is, if you have business credit, your business transactions will not affect your personal credit report.

You may be thinking that it doesn’t matter, because you pay all your bills anyway.  You would be wrong however.  It absolutely matters.  Here’s the thing.  Personal credit cards often have lower limits than business credit cards.  Conversely, business expenses are typically much higher than personal expenses. This means, if you are using personal cards for business expenses, you are likely to keep balances at or near your limits.

Consistent balances near your limits has a negative impact on your credit score even if you are making regular payments.  If you have business credit cards, your limits will be higher and better able to accommodate the high expense of running a business.

How do You Get Business Credit?

The steps to looking fundable are also the first steps toward business credit.  Your business has to be separate from yourself before business credit can be established.  In addition, you will need a D-U-N-S number.

This is a number from Dun & Bradstreet that they use to enter you into their system and issue a business credit score.  If you do not have a D-U-N-S number you will not have a credit file with them.  Since they are the largest and most commonly used business credit reporting agency, you need to have a business credit profile with them.  Get a D-U-N-S number for free on their website.

How Do You Get Business Credit if You Do Not Already Have It?

If you do not yet have business credit, you will need to open accounts in the vendor credit tier after you finish these steps.  We all know that it is almost impossible to get credit if you do not already have credit.  However, the vendor credit tier consists of vendors that will offer net 30 terms without a credit check, and then report your payments to the credit reporting agencies.  After you have enough of these types of accounts reporting, you will have a credit score and be able to apply for accounts from different types of companies to grow it even more.  Find out more about the vendor credit tier and building credit here.

Keep an Eye on Your Credit Reports

Both credit scores are so vital to being able to get the best business loans, it is important to talk about monitoring them. With personal credit scores, this is easy.  You can get a free copy of your personal credit report every year.  In addition, there are numerous websites that allow you to monitor your credit on a monthly basis for free.

Business credit monitoring isn’t as easy, and it definitely isn’t free.  The credit agencies charge from $50 to over $100 for just one report.  You can monitor your business credit at a fraction of the price at https://www.creditsuite.com/monitoring.

Don’t Forget Traditional Lenders

These business loans are from non-traditional lenders.  This is because non-traditional lenders are generally more friendly toward small businesses than the traditional banks.  Do not neglect to check into what your local traditional lenders may have available however.  If your personal credit score is above 650, they may very well offer even better rates and terms than those listed above.

While big banks are not typically friendly toward small businesses, local community banks can be favorable if your credit is strong.  Credit Unions are another option if you have a good credit score and are a member.  Do your research before making a final decision.

Learn business loan secrets with our free, sure-fire guide.

The Best Small Business Loans Can be Yours

How do you land the best small business loans of the year?  In short, you prepare.  Do a fast check to ensure your business will appear fundable to lenders.  Do some research to determine which loan options best fit your needs and qualification abilities. Don’t forget to see what traditional lenders have to offer as well. Get all the necessary paperwork, including your business plan, together before you begin the process.  Then, take note of both your personal and business credit scores and determine if you need to make some adjustments to improve them.  With these items checked off your list, the best small business loans really can be yours.

The post The 4 Best Small Business Loans of 2019 appeared first on Credit Suite.