For today’s most competitive brands, design isn’t just about aesthetics — it’s a critical business tool. An AI name generator can get you started, but design is the next step in differentiation and identity. Entrepreneurs …
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Here’s everything you need to know, including bold predictions, notable storylines, fantasy advice and score picks.
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The way you run your business, the day-to-day operations, affects everything. From your reputation with customers to even your ability to get funding, all of it can be affected by business operations. This is why you have to be strategic.
Most business owners do not realize this. They know that how they run their business affects success. However, most don’t get that the details of day-to-day business operations can affect fundability. Things like:
All of these can affect the ability of your business to get funding. It’s not just whether your business is fundable or not. Certain aspects of how you run your business can actually promote the ability of your business to get funding, or fundability.
You may be thinking, ok, what’s the strategy here? Of course you need to have your business licenses. You may be surprised to know how many business owners never think to check licensing requirements. That is, until it is an issue.
Contact state, county, and city government offices to see if there are any required licenses and permits to operate your type of business. Licensing requirements differ based on state, town, and industry. Always make sure you have the proper licensing for your corporation. You don’t want the first time you consider licensing to be when a lender brings it up.
Some business owners start out trying to use one account for business and personal funds. But the best strategy is to have a bank account devoted strictly to your business from the beginning. If it’s too late to do it from the start, start now.
First, the IRS wants to see business funds and personal funds separated. Having a separate, devoted business bank account makes that much easier. Also, your business banking history is important when it comes to fundability. Another reason this is important is one that few realize. The date you open your business bank account is the day that lenders consider your business to have started.
Say you opened your business 10 years ago. Then, 6 months ago you opened a business bank account. If you try to get a loan today, the lender might consider you to have been in business for 6 months. The longer your business banking history, the better your borrowing potential is. Don’t wait to open a bank account just for your business.
Here’s yet another way having a business bank account is a smart business operations strategy. Without one, you cannot get a business merchant account. Without that, you can’t accept credit card payments. Studies show people spend more when they can use a credit card. Even if you do not have a need for that now, you may one day. If you already have a business bank account, you’ll be ready.
Yes, there is even a strategy for your business website and domain. First, you need a business website. Customers and lenders will be looking for one. Then, pay for it to be professionally designed. It has to be user friendly, and you do not want it to look thrown together. If customers or lenders see an unprofessional business website, it will not help you.
Next, pay for web hosting. A company like GoDaddy or HostGator is best. Try to avoid using free Weebly or Wix options. You want it to be your domain, not domain.wix.com. Your domain should be your business name, if possible.
Lastly, you need a company email address for your business that is on the same domain as your website. Use a professional email address such as yourname@yoursite.com. A website domain provider such as GoDaddy will often provide this for you.
Do not use Yahoo, AOL, Gmail, Hotmail or similar free email services.
Managing small business finances can be overwhelming. There are a number of tools that can help streamline the process. Options like Brex, Divvy, Expensify, Lola, and more are growing in popularity. Not only can they help you manage funds, but some of them can help you build business credit if needed.
If you are a new business, it will be incredibly useful to choose a business money management tool that will also help you build business credit. There are not a lot that will do this, but there are a couple.
Brex is a business money management system. It works with your accounting software and allows you to track expenses. Depending on the level of service you choose, it can also help with paying bills and controlling spending.
They offer a couple of options. The easiest way to use Brex for both managing finances and building business credit is to open a Brex Cash account. Note, this is not a bank, but rather a banking alternative. However, they do have a partnership with the FDIC and your funds are secure.
Everyone that opens a Brex cash account gets a corporate card. It works just like a debit card, drawing from your Brex Cash balance daily. However, unlike a debit card, Brex reports these payments to Dun & Bradstreet, thus helping build your business credit score. That, in turn, helps to increase the fundability of your business.
Since this card is secured by the balance in your Brex cash account, and limited to that balance, you do not have to worry about underwriting. They have other money management options as well for those who qualify.
Another business money management option that helps you build business credit is Divvy. It was formerly Bill.com. This company is very similar to Brex . In fact, in a direct comparison there are just a few differences.
First, Brex charges $5 per card for additional cards to team members, unless you pay for the premium account. Then you get unlimited cards. Divvy offers unlimited free cards.
There are also differences in budgeting, reimbursement options, and software integrations. For example, Divvy integrates with Quickbooks Online and NetSuite currently. Meanwhile, Brex’s integrations with Quickbooks Desktop and Xero are said to be coming soon.
Divvy also has an offline mode, and they do not currently offer the ability to trade in points for cryptocurrency. One other major difference is that Divvy reports to the Small Business Finance Exchange.
This is a data collection agency, not a credit reporting agency. Yet, they do provide data to their partners. These partners include some business credit reporting agencies. By reporting payments to the SBFE, Divvy indirectly provides information to all SBFE partners. This can definitely help build business credit more quickly.
If you are careful in how you operate your business on a day to day basis, you can promote fundability. By handling certain business operations in an intentional and strategic way, you can increase your ability to get the business funding you need, when you need it.
The post How to Strategically Use Every Day Business Operations to Promote Fundability appeared first on Credit Suite.
The Biden administration moves to make appliances more expensive and less effective. The post A Regulatory Burden for Every Room of Your House appeared first on #1 seo FOR SMALL BUSINESSES. The post A Regulatory Burden for Every Room of Your House appeared first on Buy It At A Bargain – Deals And Reviews.
Rep. Kat Cammack, the Florida Republican, criticized Xavier Becerra, the Health and Human Services secretary, Monday night during an appearance on “The Ingraham Angle,” saying he has been nowhere to be found on any of the major issues that either directly or indirectly impact his office.
Company Marketing Mistakes: 3 Biggest Marketing Mistakes Every Business Manager Makes
That hasn’t allow a typo slip by or misspelled the CEO’s name or published the incorrect telephone number someplace? Those advertising and marketing blunders do not necessitate a post. Simply one word of how-to-fix-it guidance is adequate: check!
Right here are a couple of more vital advertising and marketing blunders that almost every manager around makes, together with an advised solution that will certainly aid you bring in much more service as well as improve arise from your advertising, despite exactly how large or little your advertising and marketing budget plan is.
Error # 1: We believe that advertising is something we ‘do’.
Issue is, when you assume of advertising as something you ‘do’, you’re normally assuming regarding promotion, straight mail, leaflets, e-mail, advertisements and also promo. Advertising and marketing is a lot even more than just promo, as well as it’s seldom a fast solution.
The genuine repair is to broaden your meaning of advertising and marketing. Rather than thinking about it as something you ‘do’, think about advertising as anything that prevents the sale or aids or use your services or product. This consists of: your area, the mindsets of the individual that responds to the phone, your name, rates, plans, propositions, individuality as well as even more.
Prior to you compose an advertising word, do a ‘assistance or prevent’ checkup. Make a checklist of what’s aiding you draw in organization as well as what’s obtaining in the means. What ‘aids’ can you highlight or boost?
We are such large followers in our services that we can not wait to reveal it off. We exhale it all right into our advertising interactions. The trouble is, when you do that, your advertising and marketing is all regarding you.
The very first point it should do is attach to something potential customers care around if your advertising is going to obtain any type of action at all. Attach prior to you encourage. Attempt this four-step workout:
1. Define your solutions as well as items. Obtain the exhaust fumes out.
2. Recognize a couple of features or tourist attraction variables.
3. What is the advantage, the requirement or the desire, that is pleased by those qualities?
4. Why is that advantage crucial, directly, to the target market?
Happiness dishwashing fluid (descprition) has actual lemon (quality) that reduces oil as well as leaves recipes shinier (advantage). What a good representation on you! Link to what individuals desire.
A financial institution is a financial institution is a financial institution. Below’s the great information: the much more 2 companies look alike, the a lot more vital each distinction comes to be, as well as the even more effect also the smallest distinction will certainly have on establishing you apart.
The exact same is real for your organization. Your potential customers are looking for a factor of distinction (simply concerning anything )they can utilize to establish you apart from your competitors.
Service card, fax cover sheet, billing, phone welcoming, front door, house web page, and so on. Simply a little bit will certainly make a large distinction, due to the fact that your leads are looking for them.
In the meantime, attempt the Help or Hinder, Connect Before You Convince and also Find Your Points of Difference devices to make your advertising and marketing a lot more reliable and also significant. Beware, also, of impractical assumptions, malfunctioning research study, harmful bullet factors as well as absence of follow up– 4 various other typical advertising and marketing errors.
Those advertising blunders do not call for a write-up. Issue is, when you believe of advertising as something you ‘do’, you’re normally assuming concerning promotion, straight mail, leaflets, e-mail, advertisements as well as promo. Advertising and marketing is a lot even more than just promo, as well as it’s hardly ever a fast repair.
Rather of reasoning of it as something you ‘do’, assume of advertising as anything that impedes the sale or assists or usage of your item or solution. If your advertising is going to obtain any type of feedback at all, the very first point it need to do is attach to something potential customers care around.
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Every entrepreneur should know about these 7 recession-beating credit cards for business! Despite COVID-19, you can get these cards!
Benefits can vary. So, make sure to choose the benefit you would like from this selection of alternatives.
Look into the Brex Card for Startups. It has no annual fee.
You will not need to provide your Social Security number to apply. And you will not need to provide a personal guarantee. They will take your EIN.
Nonetheless, they do not accept every industry.
Additionally, there are some industries they will not work with, and others where they want added documentation. For a list, go here: https://brex.com/legal/prohibited_activities/.
To determine creditworthiness, Brex checks a corporation’s cash balance, spending patterns, and investors.
You can get 7x points on rideshare. Get 4x on Brex Travel. Also, get triple points on restaurants. And get double points on recurring software payments. Get 1x points on everything else.
You can have bad credit (even a 300 FICO) to qualify.
Find it here: https://brex.com/lp/startups-higher-limits/
Take a look at the Capital One® Spark® Classic for Business. It has no yearly fee. There is no introductory APR offer. The regular APR is a variable 24.49%. You can earn unlimited 1% cash back on every purchase for your company, without minimum to redeem.
While this card is within reach if you have fair credit, beware of the APR. Yet if you can pay on schedule, and in full, then it’s a good deal.
Find it here: https://www.capitalone.com/small-business/credit-cards/spark-classic/
Check out the Ink Business Unlimited℠ Credit Card. Beyond no annual fee, get an introductory 0% APR for the initial 12 months. After that, the APR is a variable 14.74 – 20.74%.
You can get unlimited 1.5% Cash Back rewards on every purchase made for your business. And get $500 bonus cash back after spending $3,000 in the initial three months from account opening. You can redeem your rewards for cash back, gift cards, travel and more using Chase Ultimate Rewards®. You will need outstanding credit scores to qualify for this card.
Find it here: https://creditcards.chase.com/business-credit-cards/ink/unlimited
Check out the Capital One® Spark® Cash for Business. It has an introductory $0 yearly fee for the initial year. After that, this card costs $95 annually. There is no introductory APR offer. The regular APR is a variable 18.49%.
You can get a $500 one-time cash bonus after spending $4,000 in the first 3 months from account opening. Get unlimited 2% cash back. Redeem any time without minimums.
You will need great to exceptional credit scores to qualify.
Find it here: https://www.capitalone.com/small-business/credit-cards/spark-cash/
Check out how our reliable process will help your business get the best business credit cards, even during a recession.
Take a look at the Plum Card® from American Express. It has an initial annual fee of $0 for the first year. Afterwards, pay $250 annually.
Get a 1.5% early pay discount cash back bonus when you pay within 10 days. You can take up to 60 days to pay without interest when you pay the minimum due by the payment due date.
You will need great to excellent credit scores to qualify.
Find it here: https://creditcard.americanexpress.com/d/the-plum-card-business-charge-card/
Check out how our reliable process will help your business get the best business credit cards, even during a recession.
Take a look at the Capital One® Spark® Cash Select for Business. It has no annual fee. You can get 1.5% cash back on every purchase. There is no limit on the cash back you can get. Also earn a one-time $200 cash bonus as soon as you spend $3,000 on purchases in the initial three months. Rewards never expire.
Pay a 0% introductory APR for 9 months. Then pay 14.49% – 22.49% variable APR after that.
You will need great to superb credit to qualify.
Find it here: https://www.capitalone.com/small-business/credit-cards/spark-cash-select/
For a great sign-up offer and bonus categories, check out the Ink Business Preferred℠ Credit Card.
Pay an annual fee of $95. Regular APR is 17.49 – 22.49%, variable. There is no introductory APR offer.
Get 100,000 bonus points after spending $15,000 in the initial 3 months after account opening. This works out to $1,250 toward travel rewards if you redeem using Chase Ultimate Rewards.
Get three points per dollar of the first $150,000 you spend with this card. So this is for purchases on travel, shipping, internet, cable, and phone services. Plus it includes advertising purchases made with social media sites and search engines each account anniversary year.
You can get 25% more in travel redemption when you redeem for travel through Chase Ultimate Rewards. You will need a great to excellent FICO score to qualify.
Find it here: https://creditcards.chase.com/business-credit-cards/ink/business-preferred
Check out how our reliable process will help your business get the best business credit cards, even during a recession.
For no yearly fee while still getting travel rewards, check out this card from Bank of America. It has no yearly fee and a 0% introductory APR for purchases during the first nine billing cycles. Afterwards, its regular APR is 13.74 – 23.74% variable.
You can get 30,000 bonus points when you make at least $3,000 in net purchases. So this is within 90 days of your account opening. You can redeem these points for a $300 statement credit towards travel purchases.
Earn unlimited 1.5 points for each $1 you spend on all purchases, everywhere, every time. And this is regardless of how much you spend.
Likewise earn 3 points per every dollar spent when you schedule your travel (car, hotel, airline) through the Bank of America® Travel Center. There is no limit to the number of points you can get and points do not expire.
You will need outstanding credit scores to get this one (as in, 700s or better).
Find it here: https://www.bankofamerica.com/smallbusiness/credit-cards/products/travel-rewards-business-credit-card/
Your very best 7 recession-beating credit cards for business will hinge upon your credit history and scores. Only you can determine which advantages you want and need, so be sure to do your research. And, as always, make certain to build credit in the recommended order for the max, fastest benefits. The COVID-19 situation will not last forever.
The post 7 Recession-Beating Credit Cards Every Entrepreneur Should Know About appeared first on Credit Suite.
It’s looking a lot like the novel coronavirus is leading to an economic downturn. But you can still hack a great business credit score. Here’s how.
Economic downturn got you down? Beat the recession with these credit score hacks for every business owner.
Establishing business credit means that your firm acquires chances you never believed you would. You can get all-new equipment, bid on buildings, and cover the company payroll. And you can do so even when times are a bit lean. This is especially helpful in holiday firms, where you can go for months with simply negligible sales.
Because of this, you need to focus on building your company credit. Improve and maintain your scores and you will have these chances. Do not, and either you do not get these business opportunities, or they will set you back you a lot more. And no entrepreneur wants that. You need to understand what affects your company credit before you can make it better.
The number of US banks and thrifts has been decreasing gradually for a quarter of a century. This is from consolidation in the marketplace along with deregulation in the 1990s, reducing 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 financial institutions is problematic for local business owners. Big banks are a lot less likely to make small loans. Economic recessions suggest financial institutions become extra mindful with lending. The good news is, business credit does not rely upon financial institutions.
Late payments will impact your small business credit score for a good seven years. You will need to pay your business debts off, as fast as possible and as fully as possible. If you are able to do so, then you can make a very real difference when it concerns your credit scores. Make certain to pay without delay and you will enjoy the rewards of punctuality.
And pay your personal debts off as fast as possible. Pay them off in full if you can. Check Hack #3 for why this is so vital.
Your payment patterns and history are a driving force in your overall credit score. Over time, paying your bills on schedule will help establish your company as one that pays their financial obligations. This will undoubtedly help push your rating up and show other business you are a low risk.
If you pay attention to none of the other credit score hacks, you will still do well to practice this one.
Learn more here and get started toward building business credit attached to your company’s EIN and not your SSN. Get money even in a recession!
Credit utilization rate just means the amount of cash you have on credit which is then divided by your total available credit.
The more debt you have on your plate, the more invoices you have, as well as the less disposable income you have. If your total debt approaches or surpasses your income level, then you’re probably to be seen as high-risk.
Keep your debts in check and regularly pay them off to maintain a healthy balance between what you make and what you owe.
Lenders commonly do not wish to see this exceed 30%. So for every $100 in credit, do not borrow on more than $30 of that. If this percent is rising, you’ll need to spend down. And be sure to work off your financial obligations ahead of borrowing more.
Are you having a bad business year? Then it could end up on your consumer credit score. And in case your small business has not been in existence for too long, it will directly impact your corporate credit.
Nonetheless, you can unlink the two by taking measures to split up them. Open a separate bank account just for the business. And use your business credit cards for your business only. The same is true in reverse – don’t use your personal credit to pay business expenses.
Keep this up, and the credit reporting agencies will start to treat your personal and small business credit separately.
Also, make sure to incorporate. Or at least file a DBA (doing business as) status. You can also take care of your company’s invoices with your company credit card or checking account, and make certain it is the company’s full name on the bill and not your own.
Your own personal credit is fair game when it concerns your Intelliscore Plus rating. Running a company is hard work, yet don’t let your personal finances suffer. Make certain that you remain on top of your personal monthly expenses. Stay clear of unnecessary credit inquiries. And do not compromise your personal credit for business needs.
This is in essence the length of time your firm has been using business credit. Of course newer businesses will have brief credit histories. While there is not a lot you can specifically do about that, do not fret.
Credit reporting bureaus will also take a look at your personal credit score and your own history of payments. If your own personal credit is excellent, and especially if you have a fairly lengthy credit history, then your individual credit can come to the rescue of your business. That is, you did not just get your first credit card recently.
Naturally the opposite is also right– if your personal credit history is poor, then it will impact your corporate credit scores until your company and consumer credit can be split.
Irrespective of what your credit score is, it is crucial that you continue to be thorough and examine your personal and business credit reports. This can help you discover possible issues and stay informed by yourself credit profile.
Just like as each and every organization out there, credit reporting agencies like Equifax and Experian are only as good as their files. If your business’s name is like another’s, or your name is a lot like another business owner’s, there can possibly be some mistakes.
So keep an eye on those reports, and your small business report at Dun & Bradstreet, PAYDEX. Stay on top of these reports and dispute charges with documentation and clear communications. Do not just allow them to stay wrong! You can correct this!
And while you’re at, it you should also be keeping track of the credit reporting bureau which exclusively handles personal and not business credit. So that is TransUnion. If you do not know exactly how to pull a credit report, do not worry. It is easy – just Google to find the links to the CRAs.
Learn more here and get started toward building business credit attached to your company’s EIN and not your SSN. Get money even in a recession!
Keeping your financial obligations low remains sound advice. Still, opening and responsibly making the most of company credit accounts can help you broaden your available credit and enhance your credit score.
Know what is happening with your credit. Make sure it is being reported and address any errors ASAP. Get in the practice of taking a look at credit reports. Dig into the specifics, 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.
At Equifax, you can monitor your account at: www.equifax.com/business/business-credit-monitor-small-business.
Update the data if there are errors or the details 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.
So, what’s all this monitoring for? It’s to challenge any problems in your records. You can fix mistakes in your credit reports. But the CRAs often want you to dispute in a particular way.
Get your business’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.
Disputing credit report inaccuracies usually means you send a paper letter with copies of any proof of payment with it. These are going to be documents like receipts and cancelled checks. Never mail the original copies. Always send copies and retain the original copies.
Fixing credit report mistakes also means you specifically detail any charges you contest. 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.
Dispute your or your small business’s Equifax report by following the directions here: www.equifax.com/small-business-faqs/#Dispute-FAQs.
You can dispute inaccuracies on your or your company’s Experian report by following the directions here: www.experian.com/small-business/business-credit-information.jsp.
And D&B wants you to dispute by phone. So their PAYDEX Customer Service contact number is here: www.dandb.com/glossary/paydex.
Learn more here and get started toward building business credit attached to your company’s EIN and not your SSN. Get money even in a recession!
Hacks for your business credit score are really a fancy way of saying one thing. Be responsible. Pay your debts on time. Don’t put too much on credit. don’t neglect your personal credit. Keep your accounts open. Jump on any errors you find. Use your credit. Monitor what happens with it. Follow these suggestions and you will be well on your way to an excellent business credit score.
Beat the economic downturn! You can prosper, even now!
Once you know what impacts your small business credit score, you are that much nearer to building improved corporate credit. Learn more here and get started toward building business credit attached to your company’s EIN and not your SSN.
The COVID-19 situation is not going to last forever.
The post Beat the Economic Downturn With Credit Score Hacks Every Business Owner Should Know appeared first on Credit Suite.
Are you a startup? Do you have a temporary cash shortage you need to cover? Is your credit not so great, or do you need cash to purchase in bulk? Whatever is going on rest assured, there is pretty much a business loan for every situation. Yes, you can even get a business loan now. Pandemic or no pandemic, you can get business money.
Even if, somehow, there isn’t a business loan in the traditional sense to help, there are still options. Sometimes, a traditional business loan isn’t even the right answer. Something else might actually be better.
Going on the assumption that most folks understand what a standard term loan from a traditional lender is, we are going to discuss alternatives to this solution. After all, if you don’t know what’s out there, you’ll never know what might work best for you.
When it comes to starting a business, you can get a business loan if you qualify. There are other options too though.
Check out our best webinar with its trustworthy list of seven vendors to help you build business credit.
You probably know what investors are. Finding traditional investors for your business involves a number of things. First, you have to find investors with deep enough pockets that are willing to hear your pitch. Then, you have to actually create a pitch, and hope they like it.
Then there are angel investors. They work a little differently. Angels are usually more informal than other investors. They can be people you know. They can be people you connect with through networking or other means. Even your mom can be an angel investor.
While the average person that wants to start a business needs funding, it is not always possible to find one or two large investors. With crowdfunding, you can access a lot of investors to fund your business $5 and $10 at the time.
There are many crowdfunding sites. Still, the most popular are Kickstarter and Indiegogo. They are similar to each other. However, there are some major differences as well. The most obvious is the timing of when you get the money that others give your company.
Kickstarter requires you to set a goal first. You do not receive your funds until you reach your goal. For example, if you set a goal of $5,000 when you start your campaign, you will not receive any money that investors offer up until you reach that $5,000.
Indiegogo requires a goal as well. However, they offer the option to receive funds as you go. In addition, they have an option called InDemand. This program lets you keep raising funds even after your original campaign is over. That means you do not have to start a whole new campaign. It’s more like an extension.
There are other crowdfunding sites out there also. Different ones work better for certain businesses and vendors. To figure out which one might work best for your needs, you’ll have to do some research. Keep in mind your type of business and the specific business each one appeals too.
Crowdfunding is a good starting point for a new business. Yet, don’t put all your eggs in this basket. You need a backup plan. Only a small percentage of campaigns are successful. Furthermore, take into account the state of the economy before you rely too heavily on crowdfunding. If it isn’t strong, people will not be as likely to invest.
If you are struggling for a season to keep things going, these options could help. Remember though, none of them are a permanent solution. To be successful your business has to eventually support itself. Be sure to use the time these funds may buy you to figure out the problem and how to fix it.
These are business loans from companies other than banks. Typically, they are referred to as private lenders or alternative lenders. A lot of them have popped up in the past decade as starting your own business has become more popular. A need for financing options from somewhere other than traditional banks has encouraged this growth.
There are a few benefits to using private business loans over traditional loans. The first is that they often have more flexible credit score minimums. Even though they still rely on your personal credit, they will usually accept a score much lower than what traditional lenders require. Another benefit is that they will sometimes report to the business credit reporting agencies. As a result, they can help build or improve business credit if you pay them responsibly.
The tradeoff is that private business loans tend to have higher interest rates and less favorable terms. However, the ability to get funding and the potential increase in business credit score can make it well worth it.
Credit cards often get a bad rap all around. It’s no wonder. If you are irresponsible, they can cause a lot of problems. However, if you handle them properly, they can be an amazing business tool. The thing is, using them to get back on your feet does propose a new set of potential issues. Since most of them come with fairly high interest rates, you need to be especially diligent to find and solve the issues that cause you to need this additional funding.
While there are not a lot out there, grants are probably more common that you think. Usually, these are offered by professional organizations. There are some government grants available as well. Competition can be tough, but they are definitely worth trying for if you think you may qualify.
Requirements vary from grant to grant. Most are only awarded to a certain number of recipients. If you fit into one of these basic categories however, they are worth considering.
There are also some corporations that offer grants in the form of contests. These usually don’t require much other than that you meet the corporation’s definition of a small business and win the contest. For example, FedEx offers such a context each year.
Check out our best webinar with its trustworthy list of seven vendors to help you build business credit.
Sometimes you aren’t really down on your luck. You may just have a cash gap that is obviously temporary. Seasonal businesses see this on a regular basis. Another situation that may cause this is that you have some large invoices that just do not get pain fast enough. These things can easily be handled with some of the following tools.
The most basic definition of a line of credit is that it is a revolving line of credit, similar to a credit card. You have a limit, but you have access to funds at all times. You only make payments on the portion you use each month.
For example, if you have a $10,000 line of credit, you can use however much of those funds you need each month for whatever you want. That is, unless your lender issues some sort of restriction. Access is most typically granted through checks or a card connected to the line of credit account.
If you are an established business with accounts receivable, invoice factoring is one of the available business funding types that you have access to. This is where the lender buys your outstanding invoices at a premium, and then collects the full amount themselves. You get cash without waiting for your customers to pay the invoices.
This is a good option if you need cash fast. It’s also good if you don’t qualify for other available funding types. The interest rate varies based on the age of the receivables.
If you accept credit cards, you may be able to get a merchant cash advance. This is similar to invoice factoring, but instead of buying your open invoices, the lender advances cash based on average expected credit card sales.
Credit cards can help in this instance as well, and they work a lot better here. In the case of a temporary cash gap, you know the money is coming. Using credit to cover a gap temporarily, and maybe collecting some rewards while you do so, isn’t terrible. This is also useful in the discount inventory situation. If you can get a great deal on bulk inventory, you can use a credit card to take advantage and buy at the lower cost. In theory, when you sell this lower cost inventory, you will actually increase your profit.
Fundability is the ability of your business to get the funding it needs. Highly fundable businesses are able to get business loans quickly and easily. The thing is, few businesses start out fundable. There are many, many factors that affect the fundability of a business. This includes details ranging from something as simple as your business address to things as complicated as liens on your personal record from years ago.
Each and every aspect of fundability is important, and you need to know where you stand with each one. However, one specific piece of the fundability puzzle that is often neglected is business credit. This neglect typically stems from the fact that so few business owners really understand what it is. Many are under the belief that business credit is just debt that is in the business name. That isn’t really the case however.
Credit cards and loans with your business name on them are still going on your personal credit report unless you take some very specific steps to build separate business credit. First, you have to set up your business to be a separate entity from yourself. Coincidently, this setup process is also what needs to happen to begin building strong business fundability.
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To set up your business to be fundable you need to ensure you have the following:
In addition, you absolutely have to incorporate. You can choose to be an LLC, S-corp, or corporation, but you must choose one. Any of them work when it comes to separating business from owner, so talk to your attorney or tax specialist about which option will work best for your business’s other needs.
Once you are all set up, you can start to get accounts reporting to your business credit report. You can ask vendors that you already work with if they will extend credit and report payments. They don’t have to, but they might.
You can also ask those companies you already pay monthly, like utilities and rent, to report your payments. Again, they do not have to, but they may.
Another secret to getting accounts reporting is to work with starter vendors. These are certain vendors that will extend net invoices without a credit check, and then report your payments to the business credit reporting agencies. When you get enough of these reporting, your score will be strong enough to apply for store cards like those offered by Best Buy or Office Depot.
After you get enough of those store cards and make on time payments, you’ll be able to get fleet cards like those offered by Shell and Fuelman. After more of those cards are reporting on-time payments, you should be able to get approval for any business cards out there. For example, those standard credit cards that are not tied to where or what you purchase will be an option. These are the credit cards that can really help bridge a cash gap or, as a last resort, help you get back on your feet.
Getting a business loan doesn’t have to be hard. There are options to cover any situation that may come up. The problem is being eligible for the loans that best fit your needs. You need to be aware of non-financing options and which situations they are best suited for as well. Then, if your work to build business credit makes your fundability stronger, you can be sure that eventually you will be able to get funding to fit any situation that may come up.
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