Tag: Economy

Raise Your Recession Business Banking Rates and Get Funding Even in a Bad Economy

Do You Need to Know Just How Banks Determine Your Recession Business Banking Rates?

Banks are in the business of judging your company’s creditworthiness. This has a direct relationship to several important issues. Ignore these at your peril! It pays to take the time to try to understand how your recession business banking rates will work.

Recession Era Funding

The number of American financial institutions and also thrifts has been decreasing gradually for a quarter of a century. This is from consolidation in the market along with deregulation in the 1990s, decreasing obstacles to interstate banking. See: https://www.fundera.com/blog/happened-americas-small-businesses-financial-crisis-six-years-start-crisis-look-back-10-charts

Assets concentrated in ever‐larger banks is troublesome for local business proprietors. Big financial institutions are a lot less likely to make small loans. Economic recessions mean financial institutions become more careful with financing. For this reason, you need to understand your business bank ratings. It’s the only way you will be able to improve them.

Your Recession Business Banking Rates – It All Has to do With Your Bank Credit Score

But what’s that all about?

Did you know there are many ways you can ravage your bank credit score? It is, regrettably, quite easy to run a power saw through your bank rating. Your recession business banking rates can easily end up taking a hit.

But before going any further, do you know the difference between bank credit ratings and small business credit?

Business credit is the full and complete amount of cash that your small business can receive from all manner of lenders. That means credit unions, credit card companies, and also renting businesses. And it also means vendors, under what’s called trade credit or vendor credit or trade lines.

A bank credit score, on the other hand, is a measure of the full amount of borrowing ability which a company can get from the banking system only.

Bank Credit Scores Explained

A company can get more business credit fast . That is, as long as it has at least one financial institution reference. Plus it must have an average day to day account balance of at the very least $10,000 for the most recent three months. This setup will generate a bank credit rating of a Low-5. So this means it is an Adjusted Debt Balance of from $5,000 to $30,000.

A lower score, like a High-4, or balance of $7,000 to $9,999 will not result in an automatic turn down of the small business’s loan application. But it will slow down the approval process.

What is a Bank Rating?

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

A company’s chief goal ought to always be to maintain a minimum Low-5 bank rating (or, an average $10,000 balance) for a minimum of 3 months. This is because, without at the very least a Low-5 score, most financial institutions will assume a business cannot pay back a loan or a business line of credit.

Yet there is one point to keep in mind – you will never see this number. The financial institution will keep this number in its back pocket.

The Bank Rating Ranges

The numbers work out to the following ranges:

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

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

Your Recession Business Banking Rates – It Can Be Scary Easy to Damage Your Bank Rating

And now, without further ado, here are 7 ways you can leave your bank score in tatters. These methods can all too easily hurt your recession business banking rates.

7th Way to Ruin Your Bank Credit

Don’t maintain a minimum balance for at least three months. Since every bank score cycle has a basis in the last 3 months, a seesawing balance will harm your bank score.

6th Way to Ruin Your Bank Credit Rating

Don’t bother to assure that your company bank accounts are on report the exact same way as all your small business records are. And do not assume they are on report with the exact same physical address (no post office box) and contact number. Sow confusion here by editing one and not another, or not dealing with an error if there is one.

Recession Business Banking Rates Credit Suite

Have a look at our expert research on bank ratings, the obscure reason why you will – or won’t – get a bank loan for your company.

Fifth Way to Destroy Your Bank Credit

To support # 6, don’t make sure that each and every credit agency and trade credit vendor likewise lists the business name and address the precise same way. This is every keeper of financial records, earnings and sales taxes. It includes web addresses and email addresses, directory assistance, etc.

No loan provider is going to think of the myriad ways that a company may be listed, when they check out the business’s creditworthiness. So if they cannot find what they need fast, they will refute an application. Or it won’t be on the report to a company credit reporting bureau such as Experian, Equifax or Dun & Bradstreet.

For that reason, if they are not able to locate what they need quickly, they will simply reject the application. So make certain your documents are a mess!

4th Way to Damage Your Bank Credit Rating

Never handle your bank account responsibly. This means that your small business must not avoid writing non-sufficient funds (NSF) checks at all costs. Such is due to the fact that those decimate bank ratings. Non-sufficient funds checks are something which no company can afford to let happen.

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

Third Way to Ruin Your Bank Credit Rating

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

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

2nd Way to Damage Your Bank Credit Rating

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

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

When an account shows a positive cash flow it indicates your small business is generating more revenue than you use to run the firm. That means the bank will feel your small business can cover its costs.

So if you really intend to wreck your bank score, get whatever’s expensive for your company so your costs overtake your profits. Doesn’t every factory merit luxurious carpets in the loading dock?

Recession Business Banking Rates Credit Suite

Have a look at our expert research on bank ratings, the obscure reason why you will – or won’t – get a bank loan for your company.

First Way to Damage Your Bank Credit Rating

Financial institutions have quite the motivation to lend to a small business with consistent deposits. And an entrepreneur must also make regular deposits to keep a positive bank rating. The business owner has to make a lot of regular deposits, greater than the withdrawals they are making, to have and maintain a great bank rating. If they can do that, then they will have a great bank credit score.

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

Your Recession Business Banking Rates – It is Way too Easy to Destroy Your Company’s Bank Score – Even Though You Will Never See It

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

If you can do these things, then your company will have a horrible bank credit score. And then a bad bank credit score means your firm is much less likely to get small business loans. This is how you can truly muck up your recession business banking rates.

Your Recession Business Banking Rates – Just Kidding: Of Course We Do Not Actually Want You to Destroy Your Company’s Bank Credit Rating!

But your recession business banking rates are a thing of value. You should want to protect and nurture it. So, where do you go from here?

The First Great Way to Rescue Your Bank Credit Rating

Probably the easiest way to achieve and maintain an excellent bank credit rating is to deposit at least $10,000 into your company bank account. And keep it there for as much as six months. While you will still have to make regular deposits, this one simple step will assist in 3 ways. One, you will have kept an excellent minimum balance for at the very least 3 months. Two, you will probably not overdraw with such a great balance. And three, you will be at the magic minimum for a Low-5 bank credit rating. Thus you will be dealing with our # 4 and # 7, above.

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

Recession Business Banking Rates Credit Suite

Have a look at our expert research on bank ratings, the obscure reason why you will – or won’t – get a bank loan for your company.

The 2nd Excellent Way to Rescue Your Bank Credit Rating

A 2nd thing you can do is make certain your small business account details are consistent across the board, everywhere. While it may take some work order to make certain every little thing is right, you will be dealing with our # 5 as well as # 6, above.

The Third Great Way to Rescue Your Bank Credit Score

A 3rd thing you can do is make consistent deposits, as well as make sure they are greater than the quantities you are withdrawing each month. This will take care of our # 1 and also # 2.

Your Recession Business Banking Rates –Takeaways

Your bank score is not to be trifled with. The financial institutions maintain a mystery about them. Still, failing to keep your bank credit rating high will make it a whole lot harder to do well in business. In this way, you can defend and improve your recession business banking rates.

The post Raise Your Recession Business Banking Rates and Get Funding Even in a Bad Economy appeared first on Credit Suite.

How to Finance a Business in Any Economy

COVID-19 wreaked havoc on the world’s economy.  Business owners are helpless as they watch their businesses slip away. It can seem like there are no options, but there are.  Do you know how to finance a business? There are lots of options, regardless of what the economy is like?  

Best Options for How to Finance a Business 

The economy changes direction much like the wind.  It’s just the way of the world.  Still, none of us have ever seen anything quite like COVID-19 before.  Things may never truly be the same, which means adapting to a new normal is going to be vital. You can’t adapt the way you do business however, if you can’t afford to do business at all.  You need to know how to finance a business regardless of the economy.

How to Finance a Business: Credit Line Hybrid

One of the best options for how to fund a business is the credit line hybrid.  This is revolving, unsecured financing.  It allows you to fund your business without putting up collateral, and you only pay back what you use.  

Do You Qualify? 

You do need good personal credit.  It should be at least 680.  In addition, there can’t be any liens, judgments, bankruptcies or late payments.  Furthermore, in the past 6 months you should have less than 4 credit inquiries, and you should have less than a 45% balance on all business and personal credit cards.  It’s also preferred that you have established business credit as well as personal credit.

If you do not meet all of the requirements, it’s okay. You can take on a credit partner that meets each of these requirements.  Many business owners work with a friend or relative to fund their business.  If a relative or a friend meets all of these requirements, they can partner with you to allow you to tap into their credit to access funding.

how to finance a business Credit Suite

Get up to $150,000 in financing so your business can thrive.

Why is a Credit Line Hybrid Awesome? 

There are many benefits to using a credit line hybrid.  First, it is unsecured, meaning you do not have to have any collateral.  Next, the funding is “no-doc.”  This means you do not have to provide any bank statements or financials.  

Not only that, but typically approval is up to 5x that of the highest credit limit on the personal credit report. Additionally, often you can get interest rates as low as 0% for the first few months, allowing you to put that savings back into your business. 

The process is pretty fast, especially with a qualified expert to walk you through it.  One other benefit is this.  With the approval for multiple credit cards, competition is created.  This makes it easier, and likely even if you handle the credit responsibly, that you can get interest rates lowered and limits raised every few months. 

How to Finance a Business: Credit Cards

Don’t discount credit cards when considering how to finance a business.  In fact, they are probably the easiest and fastest source of funds to help keep you afloat right now.  You have to be smart, and you have to be responsible, but they are definitely a legit option. 

Brex Card for Startups

This Brex Card has no yearly fee.  You will not need to supply your Social Security number to apply. Also, you will not need a personal guarantee. However, this card does not work for every  industry. 

To determine creditworthiness, Brex checks a company’s cash balance, spending patterns, and investors. Rewards include 7x points on rideshare and 4x on Brex Travel. Also, you can get triple points on restaurants and get double points on recurring software payments. Get 1x points on everything else.

Capital One® Spark® Classic for Business

The Capital One® Spark® Classic for Business is another to check out. It has no annual fee and there is no introductory APR offer. The regular APR is a variable 24.49%. However, you can get unlimited 1% cash back on every purchase for your company and there is no minimum to redeem.

While this card is within reach if you have fair credit scores, beware of the APR. If you can pay promptly, and completely, it’s a good deal.

Ink Business Unlimited℠ Credit Card

The Ink Business Unlimited℠ Credit Card has no annual fee and a 0% introductory APR. After that expires, the APR is a variable 14.74 to 20.74%. 

You can earn unlimited 1.5% Cash Back rewards on every purchase made for your company and get $500 bonus cash back after spending $3,000 in the initial 3 months from account opening. You can get rewards for cash back, gift cards, travel and more using Chase Ultimate Rewards®. It takes superb credit to get approval for this card.

Blue Business® Plus Credit Card from American Express

The Blue Business® Plus Credit Card from American Express also has no  no annual fee and  a 0% introductory APR for the first year. After that, the APR is a variable 14.74 to 20.74%.

You can get double Membership Rewards® points on everyday business purchases like office supplies or client dinners.  This applies to the first $50,000 spent each year. You get 1 point per dollar after that.  You will need great to exceptional credit to qualify.

American Express® Blue Business Cash Card

Another one to look into is the American Express® Blue Business Cash Card. Note: the American Express® Blue Business Cash Card is identical to the Blue Business® Plus Credit Card from American Express. However, its rewards are in cash instead of points. You get 2% cash back on all eligible purchases up to $50,000 per calendar year. After that, it’s 1%.

There is no yearly fee, and there is a 0% introductory APR for the first one year. Afterwards, the APR is a variable 14.74 to 20.74%.  You will need great to superb credit to qualify.

Capital One ® Spark® Cash for Business 

Check out the Capital One® Spark® Cash for Business. It has an introductory $0 annual fee for the initial year. After that, this card costs $95 per year. There is no introductory APR deal. The regular APR is a variable 18.49%.

You can get a $500 one-time cash bonus after spending $4,000 in the first 3 months from account opening. Get unlimited 2% cash back. Redeem any time without any minimums.  You will need great to outstanding credit scores to qualify.

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Get up to $150,000 in financing so your business can thrive.

Discover it® Business Card

Another one to check out the Discover it® Business Card. It has no yearly fee. There is an introductory APR of 0% on purchases for twelve months. After that is over,  the regular APR is a variable 14.49 to 22.49%. 

You get unlimited 1.5% cash back on all purchases, with no category restrictions or bonuses. Also, they double the 1.5% Cashback Match™ at the end of the first year. There is no minimum spend requirement either.

You can download transactions easily to Quicken, QuickBooks, and Excel. Note: you will need great to exceptional credit to get approval for this card.

Marriott Bonvoy Business™ American Express® Card

If your normal course of business includes travel, and you think you may return to that once everything calms down, have a look at the Marriott Bonvoy Business™ Card from American Express. It has an annual fee of $125. There is no introductory APR offer. The regular APR is a variable 17.24 — 26.24%. You will need good to outstanding credit to get this card.

Delta SkyMiles® Reserve Business American Express Card

This is a great option if flying is your thing.  Even if you don’t fly in the course of business, you can use the rewards for personal travel.  Take a vacation from being stuck in your house! 

The Delta SkyMiles® Reserve Business American Express Card does have a $550 yearly fee! There is no introductory APR offer. Instead, the regular APR is a variable 17.24 — 26.24%.

That doesn’t sound great, but this does.  Get up to 100,000 Bonus Miles and 20,000 Medallion® Qualification Miles. You can earn 80,000 bonus miles and 20,000 Medallion® Qualification Miles after you spend $5,000 in your first three months. Plus, get an extra 20,000 bonus miles after your first anniversary of card membership.

Get triple miles on Delta purchases and 1.5 x miles on eligible purchases the rest of the year after you spend $150,000 in a calendar year. Get a companion certificate annually upon renewal. And you get one $100 statement credit every 4 years. Or you can get one TSA Pre ✓® statement credit every 4.5 years which is an $85 value.

You will need great to excellent credit to qualify.

How to Finance a Business: Online Lenders

Online lenders are private companies that operate completely online.  They are also known as private lenders or alternative lenders. 

BlueVine 

You will find with most any online lender, they often offer options more similar to invoice factoring and lines of credit.  This is because these present fewer risks than straight term loans.

The minimum loan amount available from BlueVine is $5,000 and the maximum is $100,000. Annual revenue must be $120,000 or more and the borrower must be in business for at least 6 months. Your personal credit score has to be 600 or above. It is important to note also, that BlueVine does not offer a line of credit in all states.  

Upstart

Upstart is an online lender that uses a completely innovative platform for loans.  The company itself questions the ability of financial information and FICO on their own to truly determine the risk of lending to a specific borrower.  They choose to use a combination of artificial intelligence (AI) and machine learning to gather alternative data instead.  They then use this data to help them make credit decisions.

This alternative data can include such things as mobile phone bills, rent, deposits, withdrawals, and even other information less directly tied to finances.  The software they use learns and improves on its own. You can use their online quote tool to play with different amounts and terms to see the various interest rate possibilities.  Typically, business loans are available ranging from $1,000 to $50,000.  Interest rates vary greatly, ranging from 7.5% to 35.99%.  Repayment terms can be either 3 -year or 5-year. 

To be eligible for a loan with Upstart, you must meet the following qualifications:

  • Credit score of 620+
  • No bankruptcies or negative public records
  • No delinquent accounts
  • Meet debt to income standards (they only note they will check this ratio, not what their standards are.)
  • Have fewer than 6 inquiries in the past 6 months on your credit report, not including those related to student loans, vehicle loans, or mortgages

These are the requirements they list on their website.  One independent review said that the requirement for the debt to income ratio is a maximum of 45%. It also says that the minimum annual income has to be at least $12,000.  

Fora Financial 

Founded in 2008 by college roommates, online lender Fora Financial now funds more than $1.3 million in working capital around the United States. There is no minimum credit score, and there is an early repayment discount if you qualify.

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

OnDeck 

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

Just like any other online lender, they do have certain requirements to qualify for a loan.  For example, a personal credit score of 600 or more.  Also, you must be in business for at least 3 years. 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.

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Get up to $150,000 in financing so your business can thrive.

How to Finance a Business: When to Go Another Route

Of course, you may want to try to fund your business without debt.  While it is certainly possible to get some funding without debt, it is much more likely your business will have to take on at least some debt. However, non-debt options are definitely great for reducing the amount of debt your business takes on.  Start with trying to find investors.  Although for small businesses, this will likely look different than you imagine.  Most likely you will need to find angel investors or consider crowdfunding. 

Grants are also an option.  This is especially true if you meet certain criteria.  While grants are available to business owners of all types, there are many specifically geared toward minority business owners, women business owners, business owners that are veterans, and those in low-income areas. 

How to Finance a Business: There Is No One Size Fits All

The truth is, the answer to the question of how to finance a business is going to be different for almost every business owner.  Varying credit scores, revenue amounts, and times in business will all make a difference. Sometimes it helps to have someone walk you through the process of figuring out what types of funding and financing will work best for your specific situation. Either way, you need to know all the options and look at each one carefully to figure out the be combination for your business.

The post How to Finance a Business in Any Economy appeared first on Credit Suite.

Awesome! Trade References Can Help in the Slump Economy

Learn the Secrets of Trade References in the Slump Economy Today

You may have heard or read the term ‘trade reference’, but do you really know what it’s all about? Are you asking yourself, what are trade references on a standard business credit application? What are the most important things you should know about trade references? How can they help you in a slump economy?

Building corporate credit is more than just the objective information. It’s also about the subjective. So sit tight, because here are the details.

Recession Era Funding

The number of American banks and also thrifts has been decreasing progressively for a quarter of a century. This is from consolidation in the marketplace as well as deregulation in the 1990s, lowering barriers to interstate banking. See: https://www.fundera.com/blog/happened-americas-small-businesses-financial-crisis-six-years-start-crisis-look-back-10-charts

Assets focused in ever‐larger banks is problematic for small business owners. Big banks are much less likely to make small loans. Economic downturns imply banks come to be extra cautious with financing. Luckily, business credit does not depend on banks. And it is utterly independent of any pandemic.

Things You Should Know About Trade References: 5. Just What is a Trade Reference in a Slump Economy, Anyway?

Here is a standard trade reference definition. A trade reference on a credit application is used to help lenders and business to business suppliers make decisions about whether or not to extend credit to a credit applicant.

So, what are trade references on a credit application? They are one of the only parts of a credit file that isn’t just numbers or court filings!

These credit references for businesses are usually presented in conjunction with a formal credit report. Such a formal credit report would come from a known business credit-rating agency. These are the best-known CRAs, such as Experian or Dun & Bradstreet.

Companies and banks which loan money and extend credit want to be sure that their customers can pay their debts on time and in full. Excellent trade references are an important asset which successful companies should place a high value on.

A trade reference means there is more to go on that numbers. With trade references on credit application, there is a lot more detail.

Things You Should Know About Trade References: 4. Criteria for a Business Trade Reference in a Slump Economy

Lenders and credit suppliers will often ask just how long an account has been open. They will ask about its credit or purchasing limit. And they also want to know how many times (if any) the amount due has been paid late. Such inquiries can come either by phone or in writing.

Creditors naturally place a higher value on customers with longstanding payment histories. Plus they often will save their best deals for credit applicants with the best trade references and credit profiles.

Things You Should Know About Trade References: 3. A Trade Credit Reference Can Provide an Accurate and Correct Picture, Even in a Slump Economy

Some banks may not report negative payment histories to the big national credit bureaus (Experian, Equifax, and Dun & Bradstreet) until the borrower is 30 or 60 days late.

And some suppliers, in particular smaller businesses, will not report their client histories at all. These factors make checking trade references vital when companies are making the decision to extend credit.

In addition, month to month payment histories will always represent a far more accurate picture of a small business’s true financial viability. This is because even companies with good cash flow could be taking unreasonable risks at the expense of their suppliers.

Things You Should Know About Trade References: 2. Bank and Trade References Showcase Timely Payment and Repayment, Especially in a Slump Economy

Most businesses realize that maintaining a prime credit rating is very important. Therefore, if they start struggling, they may become good at prioritizing their debt and supplier payments.

This is like the old expression, ‘robbing Peter to pay Paul’. By using their cash flow to pay any bank loans and larger suppliers, they might also be putting off smaller creditors. In this way, these businesses on the edge can paint a misleading credit portrait.

Therefore, it is important to start checking both large and small references. As a result, you can save yourself the time and headaches of taking on new clients whose accounts have a high chance of going into collections.

This is true of both companies looking to extend credit, and banks looking to make loans. And for startups, this is really vital. It helps a lot to get trade references for new business.

Things You Should Know About Trade References: 1. What About the Number and Sort of Trade References in a Slump Economy?

A standard business credit application will ask for three trade references. These are often creditors and suppliers within the industry. Trade reference examples tend not to be utilities like telephone and gas service.

This is because many struggling businesses may try to put off their suppliers for a month or two, but not the utility companies. At least, they won’t do this if they want their offices to have heat and lights.

Primary and direct references, which include suppliers of items such as computer equipment and raw materials, will be the most valuable.

Secondary trade references may include subcontractors who may be willing to not be paid until the main client pays. As a result, these examples of credit references can be less reliable indicators of a small business’s overall financial health. Still, you should take any negative feedback on a trade reference sheet seriously.

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

Things You Should Know About Trade References: Bonus #1 for a Slump Economy: How to Make a Credit Reference Request if You Are the Creditor Asking About a Company You Do Business With

A trade reference sample is best. This great business credit reference form came from Business Debt Line. Make sure to fill in the blanks or information in square brackets [].

Same Trade Reference Request Letter for Creditor

From:

__________ [Sender’s name]
__________ [Sender’s address]
__________
__________

Date: __________ [Sender wrote the letter on this date]

To:

__________ [Receiver’s name]
__________ [Receiver’s address]
__________
__________

Dear Sir/Madam:

Re: [enter the name of the company you are asking about here]

I have received an application for a credit account from the above named company. Your name has been given as a referee. Therefore, I would be grateful if you could answer the following questions.

How long has the customer traded with you? ________________________________
What are your terms of payment? _______________ days
Does the customer generally pay within the time required? YES/NO
Would you consider the customer to be a good credit risk? YES/NO

Please add any other comments you feel are relevant below.
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________

Once you have completed this form please return it in the envelope provided.

Thank you for your assistance.

Yours faithfully,

Signature

Name

For and On Behalf of Your Business

Slump Economy Recession Credit Suite

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

Things You Should Know About Trade References: Bonus #2 for a Slump Economy: How to Ask for One if You Need a Trade Reference for Your Company

Let’s use another business credit application sample. Make sure to fill in the blanks or information in square brackets [], and select anything with a slash (/) and delete the other choice. This is a great trade reference form template.

Same Trade Reference Request Letter for Company

From:

__________ [Sender’s name]
__________ [Sender’s address]
__________
__________

Date: __________ [Sender wrote the letter on this date]

To:

__________ [Receiver’s name]
__________ [Receiver’s address]
__________
__________

Dear Sir/Madam:

Re: Trade Reference for [your company]

It has been [your company]’s pleasure to conduct business with you for [number] years/months. The company is applying for more credit, and I hope to be able to cite your name as a referee. Would that be possible? Please let me know either way.

If the answer is yes, then I have prepared a few brief questions. Please send back in the enclosed envelope and we will type it up. We will send it back with another self-addressed, stamped envelope, so you can send us a signed copy. Of course we will enclose a copy for you to keep for your records.

Therefore, I would be grateful if you could answer the following questions.

How long has [your company] traded with you? ________________________________
What are your terms of payment? _______________ days
Does [your company] generally pay within the time required? YES/NO
Would you consider [your company] to be a good credit risk? YES/NO

Please add any other comments you feel are relevant below.
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________

Once you have completed this form please return it in the envelope provided.

Thank you for your assistance.

Yours faithfully,

Signature

Name

For and On Behalf of Your Business

Slump Economy Recession Credit Suite

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

Things You Should Know About Trade References: Bonus #3 for a Slump Economy: How to Write a Trade Reference Letter About a Company You Do Business With

Let’s start with a trade reference example. Make sure to fill in the blanks or information in square brackets [], and select anything with a slash (/) and delete the other choice in this trade reference form.

Sample Trade Reference Letter

From:

__________ [Sender’s name]
__________ [Sender’s address]
__________
__________

Date: __________ [Sender wrote the letter on this date]

To:

__________ [Receiver’s name]
__________ [Receiver’s address]
__________
__________

Subject: Trade Reference for [company name]

Dear Sir/Madam:

Thank you for requesting a trade reference. We have done business with the [company name] for [amount of time]. Our terms of payment with them are [number] days.

[Company name] generally pays/does not pay within the time required. Payment patterns with [company name] are/are not subject to seasonal fluctuations. I would/would not consider the customer to be a good credit risk.

If you have any questions, please feel free to contact me.

Yours faithfully,

Signature

Name

Business Name

Things You Should Know About Trade References: Bonus #4: What to Do with a Trade Reference Request About Your Company

Send a copy of your trade reference to Dun & Bradstreet here. It will become part of your credit report, available to anyone who pulls your report. Because D&B gives trade references meaning – slump economy or not.

Things You Should Know About Trade References in the Slump Economy: Takeaways

So, what is trade references? Trade references for a small business can provide a much clearer picture of the overall health and day to day operations of a company. These allow a credit or loan provider to dig much deeper into the financial guts of a company.

What is trade reference meaning? What is a trade reference on a credit application? This is the best way to get to the real truth about the business’s financial viability. And that goes double in a slump economy.

 

The post Awesome! Trade References Can Help in the Slump Economy appeared first on Credit Suite.

5 Warning Signs Your Business Is Failing in the Decline of the Economy

Are there warning signs your business is failing in the decline of the economy?  There could be.  By knowing the signs you can take action and help keep things running even during the worst of time.  Right now, the problem is COVID-19.  The Federal government and state governments are working hard to help small businesses, … Continue reading 5 Warning Signs Your Business Is Failing in the Decline of the Economy

5 Warning Signs Your Business Is Failing in the Decline of the Economy

Are there warning signs your business is failing in the decline of the economy?  There could be.  By knowing the signs you can take action and help keep things running even during the worst of time.  Right now, the problem is COVID-19.  The Federal government and state governments are working hard to help small businesses, but you can do something for yourself as well.

There are Warning Signs That Your Business is Failing in the Decline of the Economy, but What You Can Do About It

You can see the impending doom on the horizon. Its building like a sand storm and you can’t promise you will not be buried in it.  The decline of the economy is inevitable, and you cannot promise your business will survive.

Our economy runs in cycles, with waves of good times and bad coming in like clockwork.  The fact that a rise or decline will come is pretty much the only predictable part however.  No one knows when the economy tide will change, only that it will. If things are good, you can bet eventually the decline of the economy will come.  If your business is to make it through the sandstorm of hard times, you have to know the warning signs.

You may think you are safe if your business is already established. While it is true that it is much harder for a new business to stay afloat during the decline of the economy, research shows that 50% of small businesses fail in the 5th year, and as many as 30% go belly up in the 10th year.

The news is depressing, but if you can spot the warning signs you have a fighting chance.  You may not be able to stop the storm, but if you can see it coming, you can at least board up the windows and ride it out with as little damage as possible.

COVID-19 and the Decline of the Economy

The federal government is working to try to stem the tide of business failures. This includes SBA Paycheck Protection Program funding. But you’re going to need to be in business to take advantage of the financing.

Demolish your funding problems with our rock-solid guide about 27 killer ways to get cash for your business. Get money even during the worst of a recession.

How do you keep your business from failing? If you are already sinking, how do you reverse the damage? Sometimes you can’t. Sometimes the decline of the economy is too much.  Don’t give up though.  If you’re taking on water, we can help you do more than scoop it out with a plastic cup.

Set Yourself Up for Success

Wherever you are in the life of your business, now is the time to set yourself up for success.  Don’t wait another day.  In order to protect your personal finances and build business credit, you need to separate your business from yourself. Doing so on the front end is easiest, but many business owners do not know the importance of this when they first start.  Building business credit is vital for the survival of your business, and protecting your own personal liability is a necessity at all times. Here are some ways to make it happen:

  • Incorporate as an LLC, S-corp, or corporation. Do not operate as a sole proprietor or partnership. If you do, you and your business appear to be one in the same.
  • Get an EIN. They are free at gov and act as an identifying number for your business, similar to your personal SSN.
  • Open a business bank account. It should be used exclusively for business expenses. This is another tip that also helps at tax time.
  • Go to the Dun & Bradstreet website and get a DUNS
  • Make sure your business has its own telephone number and address that is not your personal telephone number and address.
  • Have a professional website created that does not use a free service. The web address needs to be paid for, and you need a dedicated email address that uses the same URL as the website.  It can’t be Yahoo or Gmail or some other free email service.

These things will help you not only when it comes to taxes and liability, but also when you are trying to establish and build business credit, which is essential for the growth of a business.

Prepare for the Unknown Known

While that sounds crazy at first, there really is an unknown known out there.  The economy will take a dive.  It is a fact of life just like birth and death.  That is the known.  The unknowns are the how, why, and when.  How do you prepare for something like that?  You cover all your bases.  Here are some things that can cause a business to go down during the decline of the economy along with some tips on how to prepare for them.

Cash Gap

Prepare for this by getting your business credit in order on the front end. Establish and build business credit so you can access the cash you need to bridge the gaps that are bound to show up.  Setting up your business as a separate entity is the first step in the business credit building process.

Gaps happen for a variety of reasons. Sometimes they are temporary timing issues, and sometimes you are leaking cash faster than a dam with a hole in it. If your business credit is strong, you can access credit cards or a business line of credit to help you shore up the leak while you look for a more permanent fix.

Without a solid business credit foundation, you will have a hard time finding the cash you need to fill the shortage, even short-term. Without access to cash a business cannot survive.

Growing Too Fast

You have to start slow. If you dive in before you are ready, you’ll cramp up and never make it to the other side. Take things one step at a time and research everything before you take the leap. Want to expand? Make sure you can handle the financing. Want to open a new location? Double check demand to make sure it’s there.

Demolish your funding problems with our rock-solid guide about 27 killer ways to get cash for your business. Get money even during the worst of a recession.

Trying to grow too much too fast is a sure plan for disaster, especially if the economy is in decline.

You Don’t Have a Plan

You had to write a business plan to get a business loan in the beginning. Even if you were solely founded on the backs of investors, they probably wanted to see a plan. It should already be there, in writing. Use it!

Work the plan you started with, tweaking as needed. It was good enough to get you started, and with minor adjustments for growth, it should be good enough to keep you going even in a decline of the economy.

Working without a plan is like heading into the dust storm naked.  If you survive, you will have much damage to repair.

Not Focusing on the Endgame

While branching out is a great thing in many cases, you can diversify too much. For example, if your specialty is pizza, and you want to add other entrees to the mix, that may be a great idea.

However, if you are a pizza shop and you decided to sell hunting equipment also, you may run into problems.

Find what you are good at and stick to it. Before you make any decisions on diversifying product lines, do the necessary research to determine whether or not that is the best plan of action.  It may sound good in theory, but will it create profit?  This is where good market research and a healthy dose of reality comes in handy.

Not Retaining Good Employees

If you have great employees, treat them right. Offer benefits, time off, fair payment, and appreciation as much as is in your power. Showing appreciation for a job well done is crucial to keeping good employees, and keeping good employees is vital to the success of a business.  This is especially true in a decline of the economy.  Starting over with new workers in hard times is not an easy task. Keeping the people that already know your business and do their jobs well is a much better recipe for success.

Is Your Business Failing in the Decline of the Economy?

Maybe it’s too late for prevention. Maybe you are already going down and you need a rescue plan. How do you know? What does it look like when a business starts to fail?

There are many warning signs, but these seem to be the most common.

  • You consistently can’t pay your bills.
  • Sales are steady but you have a ton of old receivables on the books.
  • Inventory is too high.
  • Your employees keep leaving.
  • There’s no chatter about your business.

While these aren’t always bad signs, they usually are. It might not be too late though. Let’s look at each one and see what can be done.

decline of the economy Credit Suite2

Inability to Meet Financial Obligations

If you have that business credit foundation we mentioned before, you can buy yourself some time here. Figure out a way to pay now, or ask creditors for more time. Then set to work figuring out the problem. Is it a timing issue? Look at getting a credit card or line of credit to bridge that gap.

Are your customers not paying? We’ll hit that in a minute. Are sales simply lagging? Find a way to increase sales! Have a sale, work harder at marketing, and improve the quality of your product or service.

Collect on Old Receivables

First, sell old invoices. Invoice factoring is a great way to get some cash fast, and if this is why you are short, it’s a suitable temporary fix. Get those accounts off the books and the cash in the bank.

Then, reconsider your credit strategy. Do you need to offer an incentive for early payment? Does there need to be tighter regulations when it comes to extending credit?

Slow Inventory Turnover

What’s up? Did you order too much? Maybe you need to have a sale to clear some of it out. Do you have too many different types of inventory? Go back to your first love, your original product, and off load the rest at a deep discount if you need to.

Employees Keep Leaving

This one is hard to fix on the back end. They aren’t happy, and trying to make them happy after the fact is almost impossible. If you have good workers, show your appreciation. They have plenty of options when it comes to places to work. Increase pay where possible and warranted. Offer as much flexibility as you can. Most of all, just show appreciation. Courtesy goes a long way. It may not be too late.

Demolish your funding problems with our rock-solid guide about 27 killer ways to get cash for your business. Get money even during the worst of a recession.

There is No Word of Mouth

Word of mouth is a powerful thing. If you have no reviews and no recommendations, that is a bad sign. Try offering incentives to those willing to leave a review. They can send you a link to the review in exchange for a discount or trinket.

Create social media chatter in a similar way. Incentives to like, share, or retweet sometimes take off like wildfire.

Even better, hire someone who specializes in this type of publicity.

Sometimes it Really is Too Late

The fact is, once a business is already failing, it is sometimes too far gone to save it. If you see the warning signs early enough and take big enough action, you may be able to make it through a decline in the economy.

Stay Aware of Your Surroundings

Keep your eyes open. At the first sign of trouble, take action. Follow these tips, do your own research, and start working to save your business. It is yours to save. You can enlist others if you need to however. Consultants and specialists may be able to help, and certainly in many cases professionals such as accountants and those trained in marketing research can be of tremendous value.

The most important thing is to not stand by and watch. You may still become a statistic, but you don’t have to go

down without a fight. Prepare for the inevitable and be ready to act when they come.

Have an Armory of Weapons Ready for the Fight During the Decline of the Economy and Any Other Time

No one starts a business planning to fail, but if you do end up in trouble, you can at least give yourself a fighting chance during the decline of the economy.   The best time to start is now.  Establish your business as separate from yourself so you can begin to build strong business credit.

If your business does actually fail, remember those mistakes you made, learn your lessons well, and start anew. Your next business venture will only be stronger for what you learned on the last one.

 

The post 5 Warning Signs Your Business Is Failing in the Decline of the Economy appeared first on Credit Suite.

Gas Economy Versus Gasoline Prices

Increasing fuel costs has actually come to be a truth of life. The trouble is that there is absolutely nothing that many people can actually do regarding it other than anticipate it. Due to the fact that of the overall reliance of nations in fossil gas to maintain and also preserve their markets, the factor for this is.

For so long currently, a lot of nations have actually been reliant on fossil gas such as gas as well as unrefined oil to give the power for markets as well a bulk of the transport demands of the individuals. It is a reality that many automobiles running in today’s roads have either fuel or diesel as gas.

Fossil gas accounts for a bulk of the power and also power demands of nations all over the globe. As well as such occasions might likely occur in the close to future as unrefined oil supply obtains limited while the need for it still expands. Fossil gas such as unrefined oil is not a sustainable source.

The worry over petroleum at some point going out in a globe starving for a growing number of power has actually fretted several globe leaders along with future coordinators. And also consequently, several are attempting to teach much better gas economic climate with study as well as modern technology. In addition to seeking alternate resources of gas to change nonrenewable fuel source in the future, much better gas economic climate might appear to be one of the most efficient concept to exercise in today’s globe.

Much better gas economic climate merely suggests a much better as well as a lot more boosted use gas sources to obtain one of the most from it. If being exercised on a globally range, it can aid supply a variety of advantages- both from a specific as well as international perspective. Right here are a few of those primary advantages.

For one far better gas economic climate converts to cash conserved. Much better use gas can assist in saving people cash in regards to decreased gas prices. Doing so would certainly suggest making use of even more gas reliable cars and trucks, far better gas range along with a handful of various other aspects.

Not just that, gas economic climate can likewise aid save the sources that the globe might still have actually left. Given that nonrenewable fuel sources are non-renewable sources, it is very important that the globe finds out just how to utilize it a lot more sensibly to aid prevent a feasible power situation in the future. With nonrenewable fuel source such as fuel still a key as well as significant power resource for numerous nations discovering to interact to boost basic gas economic situation can assist nonrenewable fuel source supply last also a little bit much longer.

Usage of fossil gas such as fuel and also diesel gas apart from various other unrefined oil by-products have actually resulted in contaminants produced right into the ambience. With much better gas economic situation, these gas can be melted as well as utilized extra successfully and also in a method that minimal as well as minimal contaminants are made to get away right into the ambience as well as damage the setting in basic.

Apart from looking for alternate resources of gas to change fossil gas in the future, much better gas economic climate might appear to be the most efficient suggestion to exercise in today’s globe.

Much better gas economic climate merely implies a far better as well as a lot more enhanced usage of gas sources to obtain the most out of it. With fossil gas such as gas still a main and also significant power resource for numerous nations discovering to function with each other to enhance basic gas economic climate can assist fossil gas supply last also a little bit much longer.

Usage of fossil gas such as gas and also diesel gas apart from various other unrefined oil by-products have actually resulted in contaminants discharged right into the environment. With far better gas economic situation, these gas can be melted as well as utilized extra successfully and also in a method that minimal and also minimal toxins are made to get away right into the ambience as well as injury the setting in basic.

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The U.S. Economy Helps Sink The Middle Class

The radiant financial records are blowing away the center course. Tiffany the high-end jewelry expert revenue climbed as sales went up 20% to $ 662.6 million. The having a hard time center course are really feeling the pinch.

The attractive residence market has actually dropped level for the having a hard time center course. The inadequate are still bad as well as the center course is having a hard time to remain center course. The case is various other areas of the economic situation are healthy and balanced.

That and also what are the records referring to? What this implies is if the reduced to center course revenues are stagnate while rising cost of living is climbing, the healthy and balanced economic climate exists for the abundant. There are numerous methods to make the nationwide economic climate show up healthy and balanced than it is for the typical functioning course household.

Readjusted for rising cost of living the government minimal wage has actually dropped 42% in June 2006 given that its optimal. The U.S. economic situation is partially constructed on the pharmaceutical as well as food corporations. Assume concerning it you have to consume so there is constantly a market for what the food sector creates.

The U.S. economic climate is sustained by the functioning course. If the U.S. economic situation sinks the center course, it will certainly resemble believed the entire economic situation.

The chances for wide range still exist in this economic situation. Their purchasing power and also customer costs feed the economic situation. The inquiry is whose economic climate.

When paying attention to the records on the economic situation you have to ask where Middle America is. It is being sunk by the individuals that assert to be holding the economic climate with each other.

What this implies is if the reduced to center course earnings are stagnate while rising cost of living is climbing, the healthy and balanced economic situation exists for the abundant. There are lots of methods to make the nationwide economic situation show up healthy and balanced than it is for the typical functioning course household.

The U.S. economic climate is sustained by the functioning course. If the U.S. economic climate sinks the center course, it will certainly resemble assumed the entire economic climate.

When paying attention to the records on the economic situation you have to ask where Middle America is.

The post The U.S. Economy Helps Sink The Middle Class appeared first on ROI Credit Builders.

The U.S. Economy Helps Sink The Middle Class

The U.S. Economy Helps Sink The Middle Class

The radiant financial records are blowing away the center course. Tiffany the deluxe jewelry expert revenue increased as sales went up 20% to $ 662.6 million. The battling center course are really feeling the pinch.

The appealing residence market has actually dropped level for the battling center course. The inadequate are still inadequate as well as the center course is battling to remain center course. The case is various other areas of the economic situation are healthy and balanced.

That as well as what are the records referring to? What this indicates is if the reduced to center course earnings are stagnate while rising cost of living is increasing, the healthy and balanced economic climate exists for the abundant. There are numerous means to make the nationwide economic situation show up healthy and balanced than it is for the ordinary functioning course family members.

Changed for rising cost of living the government minimal wage has actually dropped 42% in June 2006 given that its height. The U.S. economic situation is partially constructed on the pharmaceutical and also food empires. Believe regarding it you have to consume so there is constantly a market for what the food sector creates.

The U.S. economic climate is sustained by the functioning course. If the U.S. economic situation sinks the center course, it will certainly resemble assumed the entire economic situation.

The possibilities for riches still exist in this economic situation. Their acquiring power and also customer costs feed the economic situation. The inquiry is whose economic situation.

When paying attention to the records on the economic situation you have to ask where Middle America is. It is being sunk by the individuals that declare to be holding the economic situation with each other.

What this suggests is if the reduced to center course earnings are stagnate while rising cost of living is climbing, the healthy and balanced economic situation exists for the abundant. There are lots of means to make the nationwide economic climate show up healthy and balanced than it is for the ordinary functioning course family members.

The U.S. economic climate is sustained by the functioning course. If the U.S. economic situation sinks the center course, it will certainly resemble believed the entire economic climate.

When paying attention to the records on the economic climate you have to ask where Middle America is.

The post The U.S. Economy Helps Sink The Middle Class appeared first on ROI Credit Builders.

Crush This Economy – Spirituality Information

Crush This Economy – Spirituality Information

Economic climate I recognize not,

Neither the GDP all brief,

Numbers they are for the intelligence,

What usage it that for the inadequate to remember… Economic climate has an odor … Economy has actually come a cropper … History stands witness … There are extremely couple of individuals that have actually bid farewell to this globe with a grinning face … The creases and also marks of the silly economic climate show up in every face. Economic situation provides a task to somebody, makes a firm abundant and also fills up the funds of the Government yet it leaves the majority of individuals emotionally inadequate … Economy is only capitalizing your least expensive wishes and also removing you of your internal powers.

Economic situation has to make a nation abundant while it has not … It has actually made just 5% people well-off … The staying 95% of the populace have to function for cash. There is absolutely nothing incorrect in going for a task however a thriving economic climate has to assist in splendor of ideas … It has to make you mentally abundant … It has to make you material, really feel deserving of whatever you are doing. This economic situation of the globe has actually never ever functioned and also will certainly never ever once again in the close to future.

The basis of the economic situation all over the globe is to supply you the standard conveniences a task, a home, an automobile, a mobile phone, insurance policy as well as the listing goes on … It tries to inform you that we can make you abundant however it compels you to use the clothes of a beggar … It provides you comfort playthings however it clips your hands and also swipes away your flexibility … It maintains creating brand-new devices of conveniences as well as tosses it at you and also you like a beggar choice it up since it is appealing as well as that is all you can do … You are a beggar and also I am a larger one than you … due to the fact that i did it all with my life. The economic situation of love holds you entirely answerable for your activities. It tries to construct specific economic climates based on the splendor of your mind and also absolutely nothing else.

When a billion individuals venture to do develop this private economic situation a brand-new globe will certainly be produced. It is this mind that you have complete control over as well as I urge you to control it as well as develop an economic situation which will certainly offer as a criteria for all various other minds … Stop chatting concerning the economic climate of the globe of which you have no control as well as begin developing upon the economic climate of Love within.

Economic climate of love is therefore liable as well as individualistic. Economic climate of the globe is all regarding intellectual numbers as well as makes extremely little feeling for the typical male.

Economic situation has an odor … Economy has actually fallen short badly … History stands witness … There are extremely couple of individuals that have actually bid bye-bye to this globe with a grinning face … The creases and also marks of the silly economic situation are noticeable in every face. Economic situation offers a task to a person, makes a business abundant as well as loads the funds of the Government however it leaves many of the individuals emotionally inadequate … Economy is absolutely nothing however paying in on your least expensive wishes and also removing you of your internal powers.

Economic situation has to make a nation abundant while it has not … It has actually made just 5% people affluent … The staying 95% of the populace have to function for cash. There is absolutely nothing incorrect in going for a task yet a thriving economic situation has to promote splendor of ideas … It has to make you mentally abundant … It has to make you web content, really feel worthwhile of whatever you are doing. It is this mind that you have overall control over and also I motivate you to control it and also construct an economic situation which will certainly offer as a criteria for all various other minds … Stop speaking concerning the economic situation of the globe of which you have absolutely no control and also begin constructing upon the economic situation of Love within.

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