Get the Perfect Fast Business Loan for Your Side Hustle

If you are thinking about making the leap from side hustle to small business, you are probably wondering how to fund it. Even a side hustle has financing options. Can you get a fast business loan? Is a business loan even the best option for your business at this point? 

Funding a Side Hustle Is Hard

A side hustle, by definition, is a business you run on the “side”. That means, you keep your day job. This kind of activity is typically bootstrapped. Often, the funding is with money from your day job. What if it isn’t enough though?

There are other options for funding a side hustle. The options may allow you to grow and expand your business without using personal funds. That is the dream of a lot of small business owners. As a result, many jump on the fast business loan bandwagon.

While there are ways to make that dream come true, fast business loans are not often the way to make it happen. First, they are more likely to be personal loans than fast business loans.

That means, the business owner is solely responsible for repayment and for default. Business loans can work much differently if the business is set up properly. So, what does it take to get the funding you need for your side hustle, and can you really leave the idea of quick business loans behind? Should you?

Challenges to Funding a Side Hustle

There are plenty of challenges when it comes to business funding for a side hustle. One huge challenge is a lack of business credit history. As a result, there is no business credit score or a poor business credit score. That pretty much knocks a business out of the running for traditional fast business loans.

Another challenge is usually a side hustle is not yet set up properly to get business funding. Most business loans look for a Fundable™  Foundation. This includes a number of things, like getting an EIN and incorporating, that most side hustles do not have.

Not being set up properly to get funding leads to reliance on personal credit and financial resources. Sometimes this is necessary, but it’s best to avoid it when possible.

There are Options 

There are options for getting around each challenge. Credit Suite can offer resources to help you get the funds you need to grow your side hustle into something more.

We can help you get the funding you need now, and guide you step-by-step through the process of setting up in a way that will help you get funding far into the future. Eventually you’ll qualify not only for fast business loans, but for options such as SBA loans, a merchant cash advance, and even a traditional line of credit.

Fast Business Loan From a Traditional Bank

Traditional business loans are hard to get for a side hustle, but not impossible. Yet, approval will likely lean heavily on personal credit. Fast business loans usually have higher interest rates and less favorable terms anyway. This may be even more so when it comes to a side hustle.

The key is to look for business loan programs from non-traditional lenders. Many of these operate online and you can get pretty fast business loans if you qualify. But remember, quick business loans come with a price. Anything fast business related is going to cost you. In the case of business loans, the cost comes in the form of higher interest rates and more personal liability.

Your Personal Credit Will Play a Large Role

For most small business owners, particularly startup owners, personal credit scores will be a vital part of any lender determining if a business should qualify. If you have good credit, getting a business loan, even a fast business loan, will probably not be an issue.

Still, as a business owner, you do not want to rely on personal funds any more than absolutely necessary. What can you do? The key is to build separate credit for your business. As you do, lenders will be able to use it to help make the approval decision when you apply for a business loan.

Keep in mind, when it comes to most business loans, your business credit score will be used with, not instead of, your personal score, in most cases.

Open Your Side Hustle to All Financing Options, Not Just a Fast Business Loan

The truth is, your goal should not always be fast business loans. Fast business loans are great. However, a better goal is to create a situation in which your business qualifies for any funding it needs, when it needs it.

As a side hustle, you are not likely to qualify for merchant cash advances, typical small business loans, and other fast types of financing.

However, you are in the perfect situation to start building Fundability™ right now, from the beginning. You’ll save yourself a lot of time and money in the long term. Better yet, done correctly, you could never have to worry about fast business loans again.

Start With a Fundable™ Foundation

This is a must for business funding of any kind, not just fast business loans. Without this, credit providers and lenders will not recognize the business as a separate entity from you, the owner.

That means a lot of things, but a big one is there is likely to be no separate business credit report without a Fundable™ Foundation. It includes: 

  • Business contact information
  • An EIN
  • Incorporating
  • A business bank account
  • A D-U-N-S number
  • Professional website and email address

Credit Suite Can Help!

We guide you step by step through the process of building a Fundable™ Foundation. We can help you find vendor accounts that will report. And we can show you how to build business credit in the most efficient way possible.

Funding a side hustle is hard. But there are other options besides personal finances. You may qualify for a fast business loan, but it’s a long shot. If you take in enough credit card payments, a merchant cash advance may work. Most side hustles do not, however.

Credit Suite can help you build Fundability™ so you can access those options and more. We can help you build a strong business credit portfolio for your small business so you can effectively manage cash flow.

We can help you get funding right now, and help you get set up to qualify for other types of credit in the future, including:

  • A business line of credit
  • A quick business loan
  • Short term business loans
  • Invoice financing
  • Equipment financing
  • and more!

In addition, we can help you find funding that does not require a personal guarantee, and help you determine if and when a personal guarantee may be worth it. In the end, Credit Suite is on a mission to ensure every small business is set to get the funding it needs in the form of small business loans, a line of credit, equipment loans, and whatever else they may need. 

Fast Business Loans

Small businesses looking for fast cash may find success getting funding with online lenders. Quick business loans just do not come from traditional banks. Their systems are much different and the application and underwriting process usually takes much longer.

Online lenders however, are often specifically designed for quick business loans. In some cases you can get fast business loan approval and even have funds in as little as a week.

Examples of Online Lenders

There are a lot of lenders out there. Some are great to work with, while others are closer to a scam. Be careful and do your own research. Here are a couple of lenders to get you started if you decide to pursue the fast business loan option.

Fundbox

Fundbox is actually a line of credit rather than a small business loan. Still, it is a great funding option because the requirements for approval are much more manageable that those typical of a regular bank.

What Does Fundbox Offer?

Their process is automated and super-fast. Repayments are automatic. They draft them electronically on a weekly basis.  One thing to remember is that you could have a repayment as high as 5 to 7% of the amount you have drawn currently, as the repayment period is comparatively short. 

You will have to pay attention and be certain to manage cash flow accordingly so you have enough funds in the account to cover your payment each week. 

They want to see at least 3 months in business, $50,000 or more in annual revenue, and a business checking account with a minimum balance of $500.

Upstart

Upstart is an online lender that uses a completely innovative platform for small business loans.  The company itself thinks that financial information and FICO on their own may not give the whole picture when it comes to the risk of making a small business loan to a specific borrower. 

As a result, they opt instead to use a combination of artificial intelligence (AI) and machine learning to gather alternative data.  Then, they use this data to help them make credit decisions.

What Kind of “Alternative Data?”

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. 

Note, this is a personal loan.  But, if you need funding now and your personal credit is not great, it can be a good option. It’s a start at least. 

Retirement Plan Financing

This is an excellent way to get fast business funding for a side hustle. If you have a retirement plan, it may be the best option even. First, it is not a loan. There is no early withdrawal fee or tax penalty.

This Credit Suite program offers a flexible and powerful way to leverage assets that are in a 401(k) plan or IRA.

It really is fast too.  In fact, it may take as little as 3 weeks. So while it isn’t a loan, it certainly qualifies as fast business funding. The IRS calls this a Rollover for Business Startups (ROBS)

Tax Repercussions of a ROBs

The IRS considers a ROBS qualified plan to be a separate entity. It has its own set of requirements. Technically, the plan owns the business, not the individual. As a result, some filing exceptions for individuals might not apply to the plan. Still, always check with a tax expert when it comes to tax matters. 

How to Qualify  

Honestly, it’s not hard to qualify. There is no need to submit financials or have good credit to get approval. In fact, all the lender wants is a copy of your two most recent 401(k) statements. The plan must have a value of more than $35,000 to get approval. You can get up to the amount of your 401(k) that is “rollable.”

It cannot be a plan from a business where you work currently. It has to be from previous employment, and you can’t still be contributing to it. 

How Does This Program Work? 

It may sound complicated, but Credit Suite business credit experts will help every step of the way.  They will help you set up a 401(k) plan in your company.  Next, you’ll invest your 401(k) funds in it. Your business then has the cash flow it needs, but no debt. Despite how hard it sounds, your part is fast and easy. We handle the hard stuff.

ROBS vs. a 401K Loan?

First of all,not all plans allow for loans.  If your plan does, the IRS will only let you borrow up to 50%, capped at $50,000, before you have to start paying taxes.

Also, with a 401K loan you will pay interest. Of course, you are paying interest to yourself. However, you will be making monthly payments, whereas with the 401K Rollover for Working Capital, there is no payment.   

This unique program allows you to tap into your existing retirement account without penalties or taxable distributions. You also avoid loans, banks, or credit checks. There is no debt and no monthly payment. 

Credit Line Hybrid

A credit line hybrid is a credit card stacking program that allows for unsecured business funding. It functions much like a line-of-credit. You can draw the cash you need, and repay only what you use.

It allows you to fund your business without putting up collateral, and you only have to use what you need to cover a cash flow gap, purchase supplies, or anything else.

What Are The Qualifications? 

You do need good personal credit.  Your personal credit score should be at least 68o.  In addition, there cannot be any liens, judgments, bankruptcies or late payments on your personal credit report. 

If you do not meet all of the requirements, it’s not the end of the story. You can take on a credit partner that meets them.  Some business owners work with a friend or relative to fund their business. 

It’s really perfect for growing a side hustle, as you can get it without a ton of documents and it’s flexible. 

What are the Benefits of a Credit Line Hybrid? 

There are many benefits to using a credit line hybrid.  First, it is unsecured. There is no need for collateral. Also, the funding is “no-doc.”  You do not have to provide any bank statements or financials.  

Additionally, often you can get interest rates as low as 0% for the first few months. This allows you to put that savings back into your business. 

It is flexible financing that functions much like a revolving credit line. The process is pretty fast. Part of that is due the fact you get qualified experts to walk you through it. 

Crowdfunding

What is crowdfunding?  It’s actually a pretty common way for small business owners to try to take a side hustle to the next level. You can access tons of investors at once. And, you can test the market at the same time.

How Does It Work?

You market your business on the platform. Anyone who wants can invest in the company.  Some platforms accept donations as low as $5 or $10 dollars, though most require more. 

With rewards-based crowdfunding, you get some token of thanks for your donation.  With equity-based crowdfunding, which almost always requires $500 or more, investors get shares of the company. 

Will It Work for You? 

It works well for some businesses, but not for every business.  In fact, most find that they need to supplement their crowdfunding money with some other form of funding.  Since it is debt free cash however, it may be worth considering. 

The Dark Side of Crowdfunding

While there are a lot of successful crowdfunding campaigns, the majority are not able to fully fund their business through crowdfunding.  According to Startups.com, the average success rate of a campaign is 50%, and 78% of crowdfunding campaigns reach their goal. 

That sounds somewhat promising.  However, it appears success depends greatly on your market, among other things.  Here are a few more statistics from the same study with success broken down by the type of business: 

  • Business and Entrepreneurship: 41.4%
  • Social Causes: 18.9%
  • Films and Performing Arts: 12.2%
  • Real Estate: 6.2%
  • Music and Recording Arts: 4.5%

None of these hit the 50% success rate.  If you choose to go this route, be sure you have a backup plan.

Different Types of Crowdfunding

There are actually two types of crowdfunding.  There is rewards based crowdfunding and equity crowdfunding.  Many see all crowdfunding as a mix between the two. However, they are actually very different.

In fact, while some platforms allow campaigns to do both, many only allow one or the other.  It’s important to determine which one will work best for your business before you decide on a platform. 

Benefits and Drawbacks of Each Type

The best one for your business will depend on a number of factors. It helps to understand the benefits, as well as the drawbacks, of each option. 

Rewards Based Crowdfunding

  • Pros
    • Debt free
    • Do not give up equity in your company
    • Relatively easy
  • Cons
    • Typically raises smaller amounts of money
    • Risk lawsuit if do not follow through on promises
    • Rewards can get expensive

Equity Crowdfunding

  • Pros
  • Easier access to investors
  • Faster way to show investors what you’ve got
  • Less focus on regulatory compliance and more on getting product or service to the market
  • Cons
  • Managing a lot of smaller investors can be harder than managing a few large stakeholders
  • May need an investor liaison, which can be costly
  • Reporting and auditing requirements can get tricky with a lot of investors 

It’s important to note since the topic here is getting a fast business loan, that this is neither a loan or fast funding. It is a way that you can possibly fund a side hustle and grow it into a full fledged business. But, you do not repay funds to investors and it may or may not be fast. With most platforms, though not all, you do not get the funds until you reach your funding goal. There is no way to tell how long that might take. 

Credit Suite Can Help You Get Financing

The truth is, you may not really want a fast business loan right now. There are costs and other factors to consider. One of the other options may work better.

In fact, a fast business loan that offers same business day cash in your account is one of the most expensive types available. Instead of a quick business loan, it’s more useful to have flexible financing options in place to use as needed. 

When that is the case, you can have access to funds on the same business day without having to worry about a fast business loan. You can bridge a cash flow gap, take advantage of business day payment discounts, and more.

But it takes time. If you are ready to jump now, you want to be able to fund it fast. Is that possible? Is a fast business loan the best way to do it? If you can get on with an online lender, maybe. The Credit Line Hybrid usually works really well too. Of course, if you have a retirement plan, it’s hard to beat a ROBS.

Find out how we can help you qualify for financing, as well as the financing options we offer, now.  

The post Get the Perfect Fast Business Loan for Your Side Hustle appeared first on Credit Suite.

How to Build Credit for A Business: The Truth About Fast Business Credit

Business credit is a journey, not a destination. It’s not somewhere you get to, but rather a road you travel down, continually making progress.  It’s time to change our mindset from business credit being a thing you get quickly, to being a thing you can start building quickly, and then continue building upon. This is the truth behind fast business credit

How to Build Credit for a Business: The Truth is Growth Takes Time

Growing your business credit portfolio doesn’t happen overnight. Your portfolio can grow over the life of your business. The key to speed is to get accounts that will build business credit while growing your portfolio at the same time.

The Keys to Building Business Credit

Start with a Fundable Foundation. Then, get initial accounts reporting. Knowing which accounts will approve you and report positive payment history is essential.

A Fundable Foundation Includes:

  • Separate, consistent contact information
  • EIN
  • Incorporate
  • Fundable foundation
  • Separate business bank account
  • D-U-N-S Number
  • Profession, user friendly business website and email address on same domain

Initial Accounts

With a Fundable foundation, you can start applying for initial accounts. These are limited, but as you grow, more tools become available. There are not a ton of vendors that offer credit without an established business credit score, and of the ones that do, even fewer report positive payment history.

Even if they do, they do not always make it easy to find that out, or what they require for approval. Applying for and using smaller accounts that report sets you up to qualify for accounts that are harder to get in the future.

The major roadblock when it comes to building business credit is finding accounts that you both qualify for and that will report positive payment history.

Trial and Error is Slow

If you just start applying for credit in the name of your business, without knowing if you qualify or if they will report, your progress will be slow.

How to Build Credit for a Business: The Business Credit Builder

This is the beauty of the Credit Suite Business Credit Builder. We find the vendors for you and tell you which ones to apply for and when. This saves you an abundance of time.

In fact, we gather all of the business credit building blocks together in one place and tell you when it is time to use each one. We offer lists of vetted vendors as you become eligible for them. This cuts out considerable time over the trial and error method.

When you know specifically which accounts will approve you and report your positive payment history, you stop wasting time on accounts that will do neither.

The Secret Benefit of the Business Credit Builder

Once you complete the steps, the initial building process is done. However, you aren’t finished growing your portfolio. That process continues. The Business Credit Builder has a large list of advanced vendors. These vendors extend credit to businesses based on business credit scores, but they may not report.

Still, they are important to your business credit portfolio. They allow you to get supplies you need to serve your clients and pay for them after you are paid for the job. As you grow, you can ask for higher limits. The best part is, you have access to this list for 5 years!

The Beauty of a Strong Business Credit Portfolio

Think of a business credit portfolio as a pool of various types of business credit. You can leverage it to run your business successfully. This “pool” will allow you to further business growth and success.

How to Build Credit for a Business: It’s Okay to Use Personal Guarantees

A well-rounded business credit portfolio can include both PG and non-PG financing. In general, personal guarantees should be avoided, but sometimes you just can’t avoid them. If a personal guarantee will help you qualify for funding or credit cards, and you wouldn’t qualify without it, it can be smart to offer one.  This is especially true if they report payments to the business credit CRAs. Then they can help you build your business credit score.

How to Build Credit for a Business: The Truth

You can get business credit quickly,  in the form of vendor credit, soon after you set up a Fundable Foundation. But, you won’t get anywhere on vendor credit alone. You need a variety of types of business credit accounts. The only way to get those is to continue building on the accounts you have and manage them responsibly.

The post How to Build Credit for A Business: The Truth About Fast Business Credit appeared first on Credit Suite.

How to Get More Twitter Followers Fast (7 Easy Steps)

What if I told you that you could get 10,000 Twitter followers without having to follow others or spend a bunch of money on ads?

What if I also told you that it would be pretty easy to do?

Well, I’ve got seven simple, straightforward, and super effective Twitter tips to help you do just that.

Twitter is still among the top social networks today for users with over 192 million daily active users.

Twitter could be the secret ingredient to connecting with the biggest possible audience, and I am going to help you do it.

First, though, let’s talk about why you would even want more Twitter followers.

Why do Twitter Followers Matter?

Sure, Facebook is the biggest social network with the most monthly active users.

However, you shouldn’t underestimate Twitter’s importance.

It’s a global powerhouse.

Even though nearly a quarter of Americans use Twitter regularly, much of Twitter’s user base is international users.

This means that Twitter allows you to connect with a global audience.

There are other factors to consider, too.

Such as how Twitter’s millennial and Gen Z audience is a coveted one from a marketing perspective.

In fact, 42 percent of Twitter users are between the ages of 18 and 29, and 27 percent are between the ages of 30 and 49.

twitter follower guide users by age group

Not only are there tons of millennials on Twitter, millennials more frequently use social media as a tool for discovering new brands.

Statistically speaking, millennials and Gen Z are an ideal target demographic for many companies because they make up a huge market.

So why not reach out to them where they live?

twitter followers guide percentage of consumers who buy after seeing on social

Millennials eat out more, love trying new products, and they’re always looking for unique experiences with brands and companies.

In fact, the rise of the millennial generation has forever changed the world of marketing, from the strong focus on video to the rise of influencer marketing, and the emphasis on emotional connection.

There’s another reason Twitter is so attractive to marketers, and that’s because it gives you 100 percent reach.

However, there’s a caveat.

When you post to Twitter, your tweets are only seen by your followers or when your tweets are shared with others’ Twitter followers.

You have 100 percent reach only with your followers and their followers.

This means 100 percent reach on Twitter doesn’t matter if there aren’t people seeing your content.

According to recent research, 74 percent of the people who follow small and medium businesses on Twitter are following these businesses because they want updates on future products.

twitter followers guide why people follow brands on twitter/

Additionally, nearly half of those who follow brands and businesses are more likely to visit those companies’ websites.

So your Twitter followers will often become people who visit your website and invest in your brand through purchases.

Fortunately, I can help you get followers quickly and effectively.

How to Get Twitter Followers Fast

Now that you know why Twitter followers matter, let’s talk about how to get them. Keep in mind, quality is always better than quantity. 100K followers is great — but not if they don’t care about your business.

1. Optimize Your Twitter Profile to Attract Twitter Followers

For all the power you stand to gain by using Twitter for your business, not having a professional, up-to-date profile can be a major turn-off to prospective followers.

So one of the first steps on the road to amassing tons of followers is to make sure your Twitter profile rocks.

Your profile picture is the centerpiece of your Twitter profile.

twitter followers guide twitter profile example.

It’s the part of your Twitter profile people probably notice and look at first.

Aside from your username, it’s the one profile element that doesn’t just appear on your profile. It’ll show next to your tweet in the other users’ feeds when you post.

twitter follower guide example of twitter profile image in tweets

So, choose a photo that’s appropriate for your business or brand.

Whether you’re using a professional photo of yourself or your brand’s logo, you want to make sure that the most important elements appear toward the center of the image.

Due to the circular format, anything that appears toward the edges of your profile photo won’t show on your profile.

twitter followers profile image is circular

It’s even a good idea to resize your image. Although you can upload higher-res files, your profile image doesn’t need to be any bigger than a 400px by 400px square.

Here are some examples of how these profile image best practices can be implemented:

Bitfinex — a cryptocurrency exchange company — uses their logo for their profile image.

Bitfinex bitfinex Twitter profile image

Similarly, you can see New York Magazine’s iconic logo as the profile pic used for their Twitter account.

New York Magazine NYMag Twitter follower guide

However, Virgin Group founder and colorful businessperson Richard Branson uses a photo of himself. The photo looks professional yet casual and relatable.

Richard Branson richardbranson Twitter profile twitter follower guide

Not only is this smart for promotional purposes, but it also helps people make stronger associations between your brand and logo.

Your profile photo should draw attention because it will be the identity that your followers will come to see behind all the content you post on Twitter.

Using a branded logo as a profile image, like Louis Vuitton, is an easy and quick way to get followers to recognize your posts instantly.

louis vuitton twitter profile pic twitter follower guide

Beyond the profile photo, there’s the ‘Bio.’

This is the area of your Twitter profile where you provide a little — just 160 characters in total — information about your brand or business.

Here’s an example from the Washington Post’s Twitter profile:

Washington Post washingtonpost Twitter follower guide

As you can see, the goal of your profile is to give a prospective follower an idea of (a) what your business is and (b) what they can expect by becoming a follower.

There’s another reason why your bio is important: it’s searchable.

Of course, you’ll want to include all the essential info, such as your website, location, and possibly a phone number.

You’ll want to include keywords that are relevant to your brand or company in your bio.

PlayStation does this well.

playstation bio example twitter follower guide

PlayStation’s bio includes common variants of the company’s name as well as their products’ names, such as “PS4” for “PlayStation 4.”

A consumer tech outlet called Gadgets Now uses keywords in the bio, too.

gadgets now twitter bio example use keywords twitter follower guide

Another element you can include in your Twitter bio is hashtags.

News network CNN incorporates a single hashtag in the bio.

CNN CNN Twitter followers guide

CNN’s hashtag is a great example because “Go There” is the slogan for the network, emphasizing ingenuity and tenacity in journalism.

So the hashtag reinforces the network’s desired brand image.

Your bio can be an opportunity to show some personality, so don’t be afraid to get a little creative.

Content marketer and author Ann Handley’s profile is an excellent example.

Ann Handley MarketingProfs Twitter followers guide

Ann’s use of the phrase “waging a war on mediocrity in content marketing” is accurate and effective while also showcasing her personality.

Once you’ve chosen your profile photo and written your bio, the next step in a great Twitter profile is to find (or even create) your header image.

Jay Baer jaybaer Twitter follwer guide

Though it changes from time to time, the current dimensions that your Twitter header image should be are 1500px by 500px.

This can be a great opportunity to reinforce your brand or to promote your latest product or service.

coca cola twitter follower guide example

If you have trouble finding the right image with the appropriate dimensions, use a tool like Canva to create your own header image for free online.

Besides being free, Canva also offers tons of templates.

canva templates twitter followers

Now that you’ve spent some time ironing it out, your profile will leave a strong impression on visitors who view your profile, making them much more likely to follow you.

2. Engage With Your Twitter Followers

Although your follower count is a convenient metric, many social media marketers have begun putting more stock into engagement than followers.

In fact, Socialbakers account manager Jeraldine Tan actually considers follower growth an outdated metric.

“It is extremely important for brands to stop looking at outdated metrics like fan growth,” Jeraldine said in an article posted on LinkedIn.

“The overall fans number doesn’t matter if the audience isn’t consuming your content.”

So if you have a million Twitter followers but your posts get zero engagement, what are those followers really worth?

Jeraldine’s perspective is reinforced by Incite Group’s State of Corporate Social Media Survey.

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According to Incite’s data, there’s no correlation between the number of followers and engagement, meaning that more followers doesn’t mean more engagement.

But when followers interact with and share your content on Twitter, their followers see that engagement and often become curious. The engagement serves almost as an endorsement.

So engagement does lead to increased reach and visibility, which, in turn, yields more followers.

However, interactions your followers are having with your Twitter content isn’t the only type of engagement you should care about.

twitter followers guide example of twitter engagement

If you really want to grow your Twitter audience, you should be actively engaging back with them.

Responding to the comments and mentions of your followers reinforces their engagement and makes them more inclined to engage with you in the future.

Engaging with your audience yields more tangible results, too.

Brand social actions twitter follower guide

According to data from Sprout Social, 48 percent of social media users cite responsiveness as the top characteristic that prompts audiences to purchase from a brand or company.

Fortunately, engaging with your Twitter audience is easy to do and something you can start doing right away.

There are three main strategies for actively engaging with your audience:

Respond to Comments and Mentions

Responding is certainly the simplest and easiest of these strategies, but it’s also effective.

It’s as simple as this:

When a user tweets to you or comments on one of your tweets, respond.

The acknowledgment will give them a sense of validation.

If you can make the exchange memorable in some way, they may actively seek out your content in the future. So don’t be afraid to show a little personality.

twitter follower guide wendy's response

Don’t just respond to other people’s comments — pay attention to your own tags as well. Responses like these build good will and increase your reach on Twitter.

Old Spice reply twitter followers

Respond to Direct Messages from Twitter Followers

Take the time to respond to direct messages. Today, customers expect brands to monitor their social platforms.

pasted image 0 360

A lot of big brands and companies are finding success with DMs, including 1-800-FLOWERS and T-Mobile.

2. Host or Engage With Twitter Chats to Increase Twitter Followers

Twitter chats are live conversations that use a specific hashtag. They function sort of like a chat room, but are visible to a wider audience due to the use of the hashtag.

Buffer Chat session twitter followers guide

Public relations professional Janet Murray considers live chats an incredibly effective marketing strategy for Twitter.

According to Janet Murray, one way to get even more out of your live chat is to like and retweet other participants’ replies.

“Retweeting the posts of [other users] is a great way to build relationships,” Janet says.

She offers another useful tip: When you’re responding to other participants’ tweets, “don’t forget to use the hashtag so people can follow along.”

Or if you want to tweet someone privately, simply “don’t include the hashtag.”

Buffer — a well-known social media management app — hosts weekly Twitter chat sessions using their own hashtag, “#BufferChat.”

buffer chat twitter followers guide

As far as actually hosting the chat, tools like tchat.io and Twchat can turn your hashtag into a more chat-like live stream.

You can access the live Twitter chat directory on Twubs without even needing to register for a free account.

twitter follower guides

Additionally, you can put your own live chat on Twubs so that others can find it more easily.

Another tip is to either post your questions or ask your followers for some questions ahead of time.

Buffer Chat Questions twitter followers guide

When it comes down to it, actively engaging your audience reinforces the decision to follow you.

Plus, their own followers can see how interactive you are with your audience, which makes a strong impression at large.

3. Stay Active by Creating Daily Twitter Routines

If your goal is to gain followers, I can’t stress enough the importance of staying active.

It’s not enough to post a few times a week or even once per day like you probably do on Facebook.

You could even lose followers if you’re not tweeting regularly.

how often to post on social media infographic twitter followers guide

According to CoSchedule, you should post curated content — quotes and retweets — three to seven times per day. Including your own original content, it should be about 15 tweets daily.

Do you have time to sit on Twitter 24 hours per day to make sure you’ve got awesome tweets going out at all the right times? Probabley not.

That’s where your routine can be a life-saver.

The best way to create your Twitter routine is to create separate daily, weekly, and monthly routines.

twitter schedule twitter followers guide

Automate and schedule out your posts in advance with a tool like IFTTT.

Your daily Twitter routine should consist of things like following and unfollowing other users, replying to DMs and mentions, and responding to comments on your tweets.

On a weekly basis, you should focus on broader and more long-term aspects of your marketing strategy.

Your monthly routine should include things that could result in big payoffs down the road.

As such, it largely includes networking with industry influencers, which tends to increase your Twitter reach and visibility.

4. Plan and Schedule Tour Tweets

Compared to a non-chronological network like Facebook, the time of day you post on Twitter matters.

If your tweets are posted when your followers aren’t on the platform, those tweets won’t be seen, and less visibility means less engagement, less traffic, fewer followers.

The logical solution to this problem is to post when the most users are on the platform.

Sprout Social compiled data and found that average global engagement on Twitter is highest on Tuesday between 9 AM and 1 PM, Wednesday between 9 AM and 3 PM, Thursdays between 1 and 11 AM, and Fridays from 9 to 10 AM.

twitter global engagment twitter follower guide

The problem is you’ve got a lot of other tweets to compete with during those times.

That’s where knowing your audience comes in handy.

Different demographic groups have different usage habits when it comes to Twitter.

For instance, there are differences between businesses and consumers.

Twitter content that targets businesses — or B2B content — performs best during business hours.

Content that’s consumer-oriented — or B2C content — performs better on the weekend, according to CoSchedule.

The same study also found that branded content does better overall on Wednesdays.

Branded content like this tweet from Coca-Cola:

Branded tweet twitter followers guide

Optimal performance on Twitter means knowing your audience and knowing when you can reach them.

Twitter gives you an audience overview right inside the Twitter platform. With this information, you can tailor your content to your audience’s demographics and interests.

twitter analytics overview twitter follower guide

Just go to analytics.twitter.com for information about your audience, including what topics they’re into, what type of consumers they are, and even the wireless carriers they’re using.

With this information, you can choose the best times to tweet to your audience for optimal engagement and reach.

From this point, you can proceed in one of two ways:

You can make sure your daily Twitter routine coincides with your audience’s most active time of day, or you can schedule your tweets to post during that time.

Just know that you need a constant flow of content posting to Twitter, and the best resources to make that happen are readily-available data and possibly a tweet-scheduling app.

5. Make Sure There’s Value in Your Tweets

Twitter marketing is like any other type of marketing in that you’ll experience the greatest success with high-quality content.

With so much competition in most industries, great content helps you stand out from the crowd.

ihop twitter followers guide example

Great content is even more important when you’re trying to build your audience on Twitter.

It’s as simple as this:

Good tweets get likes, comments, shares, and followers. Bad tweets don’t.

So what separates a good tweet from a bad tweet?

Value.

Every time you tweet, you must provide value to your audience.

Because when your content is deemed valuable and relevant, your audience is more likely to connect with your brand.

Isn’t value subjective?

Yes, but only to the extent that what’s considered the most ‘valuable’ can vary from one person and demographic to the next.

It’s no lie that people tend to prefer content that’s informative or educational.

This can include an infographic, how-to article, or even current events coverage.

twitter follower guide infographic example

Others put more value on entertainment.

This can include things like memes, gifs, funny videos, or even the actual entertainment industry.

funny twitter example Twitter followers guide

Then there are those who want to be inspired.

Inspirational content largely equates to popular quotes as well as inspirational true stories (weight loss, rescued animals, etc.).

twitter inspirational content examle twitter followers guide

Don’t forget interactive content.

Interactive content refers to things like polls, quizzes, web browser-based games, etc.

Interactive twitter content

Another common type of content on Twitter is promotional.

Typically, promotional content consists of advertisements, coupons, customer testimonials, etc.

Coupon twitter followers guide

Each of these types of content represents a particular perspective in regards to value.

When people find value in your tweet, it gets more engagement. That’s just the way it works.

twitter valuable example twitter followers guide

Of course, this is another reason why knowing your audience is important.

You gain a better sense of what they find valuable and can personalize your content accordingly.

6. Pick the Right Tweet to Pin to Your Profile

Pinning a tweet is like putting a spotlight on that tweet, calling the attention of anyone who visits your Twitter profile.

There are a couple of ways you can approach choosing the right tweet to pin to your profile.

The first strategy is to pin a tweet that has performed particularly well.

If it gained lots of attention from your followers when you initially posted it, the tweet will probably appeal to others who are visiting your profile.

twitter follower guide pinned tweet example

It will certainly get more views and is likely to get more likes, comments, and shares as well.

Since new tweets push older tweets further down in your timeline, your newer followers are unlikely to ever see your best ones.

Pinning a tweet that was well-received by your followers will ensure that profile visitors and potential followers get to see it, too.

It’s also common to pin a tweet that highlights a temporary promotion or an upcoming event that your business is involved with.

Pinned tweet twitter follower guide

When the promotion or event is over, you simply unpin the tweet and pin a new tweet for your next one.

Another strategy for choosing the right tweet to pin is to pick a tweet that promotes your business or brand.

For example, if you tweeted a link to an interview you participated in.

tweet an interview twitter follower example

In effect, it’s actually someone else’s promotion of your brand or business, but you’re pinning it to highlight the value that others have placed on what your brand offers.

Much like a job interview or a business pitch, a pinned tweet gives you a small opening to make a big impression.

7. Link to your Twitter Account on Your Website and Other Social Media Profiles

It may seem counterproductive to be diverting traffic from your website to your Twitter profile.

After all, don’t you want traffic going to your website so they can make a purchase?

But surveys show your social media profiles are just as effective for content marketing as your own website.

Barchart accessing consumermarketing Twitter followers guide

This makes a lot of sense.

So to a large degree, sending traffic to your website actually gives you more opportunities for conversion.

Of course, you don’t want to simply drop a raw link into the body of your website.

Instead, you should link to your Twitter profile in a way that’s a bit more professional.

It could be as simple as attaching the link to an icon.

twitter icon twitter followers guide

If you want something a little fancier, you could even link to your Twitter profile by embedding a tweet into your website or blog:

embedded tweet example twitter followers guide

Simply go to publish.twitter.com where you’ll find options to embed a grid, tweet, timeline, or a button.

twitter publish twitter follower guide

All you need to do is copy the link you want to use and paste it into the prompt at the top of the page.

twitter embed twitter followers guide

Similarly, you should link to your Twitter profile on other social media.

For example, Facebook gives you the option to include your Twitter username in a specific section of the ‘About’ section on your Page.

facebook prfofile add twitter prifole

It gives any of your Facebook followers who also happen to use Twitter the ability to access your Twitter profile easily.

Because if you have people following you on other social networks, there’s a good chance that any of them using Twitter would want to follow you on that platform, too.

Gain Twitter Followers FAQs

What does my Twitter profile need to increase followers?

Make sure all available fields are completed, like your URL, name, and bio. Include applicable keywords or hashtags in your bio to get found by people searching.

How can I engage with my Twitter followers?

Engagement leads to increased reach and visibility, so be sure to answer mention tweets, participate in Twitter chats, and reply to tweets from accounts you follow.

How often should I tweet to increase Twitter followers?

Many studies recommend tweeting 5-15 times per day.

What should I tweet about?

Make sure your tweets offer value to your audience, either through knowledge, humor, customer support, and answering questions.

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How to Get 10,000 Twitter Followers Conclusion

Twitter is an international platform with millions of users. It’s just as valuable (if not more valuable) for racking up an audience than sites like Instagram or Facebook.

Getting as many as 10,000 Twitter followers doesn’t have to be hard.

First, you need to optimize your profile. Add a high-quality profile picture, since it’s the first thing people will see when they come across your brand on Twitter.

Complete your bio and don’t forget a header image, too.

Start engaging with your followers by responding to comments, mentions, direct messages, and live chats.

Create a Twitter routine you can stick to. If you aren’t active, your engagement will dip. Make a daily, weekly, or monthly Twitter schedule.

Make sure that what you’re sharing is valuable. Share interactive content, like a poll, quiz, or infographic for best results.

Pin a relevant tweet to your profile. If you have an ongoing promotion or upcoming event, tweet about it and pin it to the top of your page.

Finally, be sure to link your Twitter account to your website and on your other social profiles for maximum exposure.

Each of these steps will result in substantial growth but put them together, and you are likely to see some pretty phenomenal gains.

What are your favorite Twitter follower growth hacks?

You Can Boost Credit Score Fast

Did You Know You Can Boost Credit Score Fast?

Yes, you really can boost credit score fast for your business.

But let’s start with some definitions and background on business credit.

Business Credit

This is credit in a business’s name. It is not tied to the owner’s creditworthiness. Instead, business credit scores depend on how well a company can pay its bills. Hence consumer and business credit scores can vary dramatically.

Business Credit Benefits

There are no demands for a personal guarantee. You can quickly get business credit regardless of personal credit quality. And there is no personal credit reporting of business accounts. Business credit utilization won’t affect your consumer FICO score. Plus the business owner isn’t personally liable for the debt the business incurs. And yes, you can boost credit score fast.

Business Credit Details

Being accepted for business credit is not automatic. Building business credit requires some work. Some of the steps are intuitive, and some of them are not.

Fundability

Fundability is the current ability of our business to get funding. Some factors are within your control. Others (like your time in business) aren’t. Your online presence and data are one area which is at or close to 100% with your control.

Boost Credit Score Fast: Understand Fundability, and Business Funding Applications

The better your business credit and fundability are, the more likely you will get approval for business financing. Today, let’s concentrate on your online presence, that is, your email address and your website. It’s a great way to work to boost credit score fast.

Lenders Use Data to Decide on Your Application

They check information from a variety of sources, and they don’t tell you about any of them. Knowing what these secret sources measure can only help you. Understanding what matters the most makes getting a loan A LOT easier, because you know what to improve first. This information is the difference between getting an approval and getting a denial.

Lenders Use LexisNexis Information

LexisNexis is one source where many of the lenders reviewing loan applications get their information from. They offer information regarding likelihood to pay, or not. Lenders compare LexisNexis information to what you put on your loan application. If the application and LexisNexis don’t match, then, the loan providers will deny you a loan. They will see the inconsistency as fraud.

LexisNexis connects all of the data that pertains to you, both positive and negative. They have access to

  • criminal records
  • every email address you’ve ever used (these are your professional and personal email addresses)
  • your speeding tickets
  • any mortgage you have ever held

Keep your business protected with our professional business credit monitoring.

Lenders Use Online Information Including Your Business Email and Website

One place where lenders and vendors will be looking for your business is online. Even if they’re not specifically checking out your online presence, they may still need to know how to order your product or service, or where to send praise or complaints. Your online presence is where they will find that information, or not.

Boost Credit Score Fast and Work on Your Website

What happens if your family member or a friend built your website? Maybe that person is talented, but business websites differ from personal ones. A business website needs to be easy to navigate. It needs to answer customers’ questions.

Styles differ. Wedding photographers and construction companies differ. They have dissimilar sites and design sensibilities, but they both have Contact and About pages, and information about what they do.

Make sure you own your domain, and not just your domain at Wix or WordPress or the like. You can do this by buying hosting. This is through hosting companies like GoDaddy or HostGator.

Your Email Address

Given that so much more of lending decisions is going on online these days, then your email address is an opportunity for your business to puts its best foot forward. Don’t squander this easy and free opportunity! General email addresses like admin@yoursite.com tend to be best.

With a general email address, if someone leaves your employ, another employee can seamlessly take over that email address. A username like admin, webmaster, or even hello is far, far better than cutiepie or the like, even if you’re in a playful industry that caters to kids. After all, your bank and banker aren’t.

Records Congruency

Keep your records consistent! This includes your online records. LexisNexis and the SBFE (Small Business Financial Exchange) are looking at everything, so it had better match.

Inconsistent records will lead to a denial due to fraud because that’s how lenders interpret inconsistencies. This is a cause of denials which is in the business owner’s hands. You have the ability to change and correct this.

This means your business name, address, phone number – everything! – must look the same in these places and more:

  • Every place your business has an online presence (your website, Yelp, SoTellUs, etc.)
  • IRS records
  • Your business’s records with Dun & Bradstreet, Experian, and Equifax
  • All licenses needed to run your business
  • Incorporation documents

Copy/paste this information; don’t chance it with retyping.

Keep your business protected with our professional business credit monitoring.

Boost Credit Score Fast with Fundable Business Credit Applications – Avoid Denials

Keep your business looking fundable (legit) with:

  • A professional website and email address
  • A toll-free phone number
  • List your phone number with 411
  • A business address (not a PO box or a UPS box)
  • Get all necessary licenses for running your business

Online Fundability

There are some aspects of fundability where you should pay particular attention to what’s going on online. They include:

  • Business owners listed and listed ownership uniform
  • Business name and address uniform
  • Industry aligned
  • Company domain
  • Information uniform on all records

Business Ownership Listings

Records consistency matters here, too. Your website should show who owns your business. And that information needs to be consistent. So if the owner is named Susan Johnson on your website’s About page, then she can’t be listed as Sue Johnson on your Contact page. If your business ownership changes, you need to show that here.

Business Name and Address Uniformity

Abbreviations can be your downfall here, as can punctuation like hyphens, commas, and colons. If your Contact page says your main office is on Main Street, then your About page can’t say it’s on Main St.

If your business moves, or you add subsidiaries and other locations, then you need to update that information everywhere. This even means whether you use your 5-digit ZIP code, or a ZIP plus 4 code (9 digits).

Keep your business protected with our professional business credit monitoring.

Industry Alignment

If your business is over the road trucking, then it needs to be listed that way. Pro tip: when your industry can be called several different names, like long distance trucking, mention those other phrases on your website.

Your Company Domain

When your company domain matches your business name, it helps with fundability. Pro tip: try to match what people will be searching for online, so if (for example) the word ‘brothers’ is in your company name, then determine if ‘brothers’ or ‘bros’ will be used by people searching for your company and its goods and services online.

Boost Credit Score Fast: Takeaways

More fundable businesses can get more money, and they tend to get more prospects who decide to become customers. One area of fundability you have total or near total control over is your business’s online presence. Keep it professional, uniform. and appealing, and easy to use. We can help you with even more aspects of fundability and you can boost credit score fast!

The post You Can Boost Credit Score Fast appeared first on Credit Suite.

Get in the Fast Lane with Fleet Credit

What is Fleet Credit? How Can it Help a Business?

To understand fleet credit, you need to understand business credit first.

Business Credit

Business credit is credit in the name of a business. When built correctly, it has no relationship to an owner’s personal credit. This is the case even if a business has but one owner, and that person is also the business’s sole employee.

Types of Business Credit

You can divide business credit into three separate categories. Vendor credit is credit you can get even if you have no other credit; often net 30 and similar terms. Store credit is often revolving terms; may require some time in business; and offered by major retailers. And cash credit is more universal credit from providers like Visa, MasterCard, and American Express; harder to qualify for; may require more time in business and more paperwork before approval.

Fleet Credit

Fleet credit has some things in common with both vendor and store credit. Terms can be either net 30 (or net 60, etc.), or they can be revolving. This is credit to buy fuel, and to repair and maintain vehicles of any type.

The kinds of vehicles a business needs to maintain can include taxicabs, trucks, vans (for deliveries or to transport workers or passengers), or company cars.

Industries Based on Vehicle Use and Risk

While any company can use vehicles, some industries solely depend on vehicles to deliver their services. Risk is denoted by SIC (Standard Industrial Classification), and NAICS (North American Industry Classification System) standards.

Typical High-Risk Industries

Normally, high-risk industries have some things in common. There can be high risks of injury on the job. Or an industry may engage in a lot of cash transactions. This is true regardless of the safety record of a particular business, or the majority of its transaction types. Trucking and many other vehicle-intense businesses come under the injury risk umbrella.

NAICS Codes for Vehicle-Based Businesses 

Over the road trucking is considered a high-risk industry. See referenceforbusiness.com/industries/Transportation-Communications-Utilities/Trucking-Except-Local.html. So is local transportation. See referenceforbusiness.com/industries/Transportation-Communications-Utilities/Local-Passenger-Transportation-Elsewhere-Classified.html. And so are taxicabs. See referenceforbusiness.com/industries/Transportation-Communications-Utilities/Taxicabs.html.

Fleet Credit and Gas Cards Today

Small business credit is independent of the economy. But be aware that, as the situation continues, some of the requirements could change. Always be sure to check the links directly, to be sure to get 100% up to date information straight from the source.

The Benefits of Gas Cards for Business

Per the SBA, business credit card limits are high! They’re a whopping 10 – 100 times that of personal credit cards. You can get a lot more money with small business credit. And you will not need collateral, cash flow, or financials in order to get business credit.

Check out our best webinar with its trustworthy list of seven vendors to help you build business credit, even in a recession.

Get Excellent Gas Cards Via Our Business Credit Builder

Gas Credit Cards Credit SuiteOur Business Credit Builder is full of amazing business credit cards. And that includes gas cards! These cards are starter vendors. We know they report to business credit reporting agencies. Whether you’re new to business credit building, or have been at it for a while, it pays to get these cards.

Marathon

Marathon Petroleum Company provides transportation fuels, asphalt, and specialty products, throughout the United States. Their comprehensive product line supports commercial, industrial, and retail operations. This card reports to Dun & Bradstreet, Experian, and Equifax. Before applying for multiple accounts with WEX Fleet cards, make sure to have enough time in between applying so they don’t red-flag your account for fraud.

Qualifying

To qualify, you need an entity in good standing with the applicable Secretary of State, and an EIN number with the IRS. You will need to have a business address matching everywhere. Plus you need a D-U-N-S number, and all applicable business licenses. You will need to have a business bank account, and a business phone number listed on 411.

Your Social Security number is required for informational purposes. If concerned they will pull your personal credit talk to their credit department before applying. You can give a $500 deposit instead of using a personal guarantee, if in business less than a year. You apply online. The terms are Net 15. Get it here: marathonbrand.com.

76

76 is owned by Phillips 66 Company. They sell gas in more than 1,800 retail fuel sites in the United States. This card reports to Dun & Bradstreet, Experian, and Equifax. And it can be used at any P66, 76, or Conoco fueling location.

Qualifying

To qualify, you need an entity in good standing with the applicable Secretary of State, and an EIN number with the IRS. You will need to have a business address matching everywhere. Plus you need a D-U-N-S number, and all applicable business licenses. You will need to have a business bank account, and a business phone number listed on 411.

Your Social Security number is necessary for informational purposes. If concerned they will pull your personal credit, talk to their credit department before applying. If not approved based on business credit history or you have been in business less than 1 year, then a $500 deposit is needed or a personal guarantee (PG). You can apply online or over the phone. The terms are net 15. Get it here: 76fleet.com.

Wex Fleet Card

Wrights Express (WEX Card) offers universal fleet cards, heavy truck cards, and universally accepted business fleet cards. These cards have features that support small business, including a rewards program.

Before applying for multiple accounts with WEX Fleet cards, make sure to have enough time in between applying. This way, they won’t red flag your account for fraud. This card reports to Dun & Bradstreet, Experian, and Equifax.

Qualifying

To qualify, you need an entity in good standing with the applicable Secretary of State, and an EIN number with the IRS. You will need to have a business address matching everywhere. Plus you need a D-U-N-S number, and all applicable business licenses. You will need to have a business bank account, and a business phone number listed on 411.

If you’re not approved based on business credit history, or have been in business a year or less, then a $500 deposit is needed or a personal guarantee. Apply online or over the phone. The terms are net 15 (WEX Fleet Card), Net 26, or Revolving (WEX Flex Card). Get it here: wexinc.com/solutions/fleet-management.

Check out our best webinar with its trustworthy list of seven vendors to help you build business credit, even in a recession.

Fleet Credit Can Help with More than Fuel and Maintenance

All forms of business credit can help you build good business credit scores, as business credit is mainly based on your payment history. As a result, fleet credit can help your business eventually get funding, such as loans and other forms of financing.

But Conventional Banks are Not the Best Place to Find Funding for High Risk Industries

Over 89% of business applications are denied by the big banks. High-risk industries are subject to stricter underwriting guidelines. It is possible to get loans from conventional sources, but it’s not easy. Alternative lenders are often your best bet. Here’s some great funding we’ve found.

National Funding

You can get equipment financing for commercial truck leasing and financing. Up to $150,000 is available. Their requirements are 6 or more months in business, an equipment quote from a vendor, and a 575 personal credit score or better. See www.nationalfunding.com/industries/loans/trucking-business

Or get auto repair shop financing, via leasing.  Their requirements are 6 or more months in business, an equipment quote from a vendor, and a 620 personal credit score or better. See nationalfunding.com/industries/leasing-financing/automotive-repair-equipment.

Kabbage

Kabbage offers loans specifically for truckers. Up to $250,000 is available. Their requirements are 1 or more years in business, and $50,000 or more in annual revenue. See www.kabbage.com/truck-driver-loans.

Crossroads Equipment Lease & Finance, LLC

Get transportation equipment financing. Up to $750,000 is available. Poor credit is not a problem. You can get approval in as little as 24 hours. See https://crlease.com/transportation-equipment-financing.

Check out our best webinar with its trustworthy list of seven vendors to help you build business credit, even in a recession.

Fundbox

You can get a business line of credit. Up to $100,000 is available. No personal credit score is necessary. You must use online accounting software that can link to Fundbox. See creditsuite.com/fundbox and https://fundbox.com/truck-loans.

Credit Line Hybrid

Got good personal credit? Then a hybrid credit line could be the perfect solution. You can get up to $150,000, even if your business is a startup.

To qualify, your personal credit score should be at least 685. You can’t have any liens, judgments, bankruptcies, or late payments. In the past 6 months you should have fewer than 5 credit inquiries, and you should have less than a 45% balance on all business and personal credit cards. It’s better if you have established business credit as well as personal credit. See creditsuite.com/business-loans.

Takeaways

Business credit is credit in the name of a business. Fleet credit is used by businesses to buy fuel, and to fix and maintain all sorts of vehicles. It can help you build business credit and qualify for loans and more forms of funding. Alternative lenders are one option. And the Credit Suite Credit Line Hybrid is even better if you’ve got good personal credit.

The post Get in the Fast Lane with Fleet Credit appeared first on Credit Suite.

4 Lifesaving Ways to Get Fast Working Capital in a Recession

The COVID-19 pandemic caught the world by surprise and turned the economy upside down.  If you are a business trying to make it during this time, we can help.  The Federal government has approved funding through  The CARES Act, including the Paycheck Protection Plan.  In addition, many states and local organizations are offering their own COVID-19 relief options.  If you need funds fast, keep reading for ways to get fast working capital in a recession.

Don’t Drown: Get Fast Working Capital in a Recession Regardless of Credit

If you are drowning, you need help fast. There is no time to learn how to swim if you don’t already know.  You can’t learn how to float in a heartbeat. You need a life preserver.  The same is true if you find yourself in need of fast working capital in a recession.  You can’t learn to swim at that point.  You need immediate help, and once you are safe, then you can focus on longer term solutions.

However, fast working capital in a recession isn’t easy to come by.  In fact, it can seem nearly impossible. There is hope though. You can escape from the recession storm, but it is going to take a lot of work. If you move in the right direction and grab the life preserver, I am about to toss you, survival is possible.

While the goal is to never get back into that kind of danger again, you have to actually get out of the water alive first. Here’s how.

Invoice Factoring for Fast Working Capital in a Recession

Not only is invoice factoring the fastest way to cash, it is also an option that depends very little on your credit, personal or business. In fact, sometimes there isn’t even a minimum credit requirement. They may pull a credit score, but they make decisions based more upon the strength of your invoices.

The lender will gather information to help them determine the likelihood of the invoices being repaid. If they find that the invoices are strong, they will lend money based on the total amount of the invoices minus a premium. The borrower can usually either repay the loan or the lender can keep the invoices and collect from them.

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.

Here are a couple of options for creditors that offer invoice factoring without a minimum credit score or despite a low credit score.

Fundbox

Fundbox offers invoice financing for amounts less than $100,000. There is no minimum credit score, and there are options for a 12- week or 24-week repayment term.

BlueVine

If you have a larger amount in open invoices, like up to $5 million, you can get invoice financing from BlueVine.

Merchant Cash Advance

This is very similar to invoice factoring, but the funds are based on average credit card sales.  For example, if you average $20,000 in credit card sales per year, a merchant cash advance would allow you to access that cash at a premium.

Here is how it works.  If $20,000 is the average, you would get maybe $16,000 of that up from the creditor.  Then, they would take a percentage of your credit card sales, usually weekly, until the whole $20,000 was paid off.

It isn’t perfect, but it is definitely fast, and therefore an option for fast working capital in a recession.

Working Capital Loans for Fast Working Capital in a Recession

If you need really working capital in a recession, invoice factoring or a merchant cash advance is your best bet. Of course, that only works if you have credit cards sales or invoices to factor.  Another option, which takes a little more time, is to apply for a working capital loan from an alternative lender.

Some alternative lenders pull a credit report, but they have a low minimum score requirement. For example, Fundbox offers working capital loans to businesses that have been in operation for at least 3 months and have at least $50,000 in revenue. They lend amounts up to $100,000, and there is no credit check

Kabbage offers something similar if you have been in business for at least 1 year and have $50,000 in revenue. They will lend up to $250,000. There is no minimum credit score here either, but most approvals have over 500. You also have to have either a business checking account or use and online payment platform.

Quaterspot will lend up to $250,000 if you have been in business for at least one year and have at least $200,000 in annual revenue. They will do a soft credit pull, but it does not affect your credit. The minimum score is 550.

Business Credit Cards for Fast Working Capital in a Recession

Even if your personal credit isn’t fabulous, you can get fast working capital in a recession with business credit cards.  How?  You can do it with your business credit.  That is, your business credit score.  It is totally separate from your personal credit score.

If you have business credit you can access those cards for fast working capital in a recession if needed.  Of course, credit cards are not an ideal source of working capital, but if you need a way out of the waves, they work well as a life preserver.

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.

Credit Line Hybrid

A credit line hybrid is revolving, unsecured financing.  It allows you to fund your business without putting up collateral, and you only pay back what you use.  It even works for startups.

What are the Qualifications?

How hard is it to qualify?  It’s probably easier than you think.  You do need good personal credit.  That is, your personal credit score should be at least 685.  In addition, you can’t have any liens, judgments, bankruptcies or late payments.  Also, in the past 6 months, you should have less than 5 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, all is not lost. 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 Get Business Credit

If you are not in trouble yet, start now establishing and building business credit so that when hard times come, are ready to meet them head on.  Even if you are already in trouble, find one of the other options for fast working capital in a recession and go ahead and get busy working on your business credit.  You can start at any time, even if you are in the middle of a recession storm.  Here’s how.

Establish Business CreditFast Working Capital in a Recession Credit Suite2

The first step in getting business credit is to establish your business as a separate entity from yourself.  This isn’t hard at any point, but it is a lot easier if you start at the beginning.  Start by ensuring your business has its own contact information.  It cannot have the same address, telephone number, or email address as you.  The telephone number needs to be toll-free, and the email address should have the same URL as your business website.  Yes, you need a website.  More on that later.

Next, set up your business as a formal corporation.  It needs to be either a corporation, S-corp, or LLC.  Operating as a sole proprietor or partnership will not suffice for business credit purposes.

After this, you need to apply for two different identifying numbers.  The first is an EIN.  This is similar to a social security number, but for your business.  You can apply for free on the IRS website.  After that, you need a DUNS number.  This is a number assigned by Dun & Bradstreet, the largest and most often used business credit reporting agency.  Apply for it for free on their website.

Set Up a Separate Bank Account

This not only helps to separate your business from yourself, but it also helps keep business and personal finances separated.  It will be easier to track business expenses and income, which is a huge time saver come tax time.

Work with Starter Vendors

These are vendors that will extend net 30 terms on invoices and report payments to the credit agencies without checking your credit.  You may have to make a few initial purchases, and some have a minimum time in business or revenue requirement.  Companies in that will do this are the best place to start when it comes to getting payments reporting to establish business credit.

Beyond Starter Vendors

Once you have a few starter vendor accounts reporting you will be able to apply and get approval for other credit cards, which can be a source of fast working capital in a recession. The store cards are the next step.  These include credit cards connected to specific retail stores such as Amazon, Best Buy, and Office Depot.

After enough of these are reporting to the credit agencies, you can apply for fleet credit cards.  They include cards from Fuelman, WEX, and others that can be used for fuel as well as vehicle repair and maintenance.

Eventually, you will have enough accounts reporting that you can apply for, and get approval for, cards general use credit cards.  This is where you can really access significant fast working capital in a recession if necessary.  Cards in the cash credit tier include MasterCard and Visa cards that are not attached to a specific store or limited by the type or location of purchase.

Like I said, even if you do not have business credit in place before the recession hits, this process will still work.  You can use it at any time, but if you already have business credit in place, it will be easier and faster to use it to access fast working capital in a recession.

An Ounce of Prevention…Always Prepared

Once you are out of the water, don’t get back in until you know how to handle yourself.  Learn how to swim, take a survival class, and be prepared.

The way you do this is by establishing and building strong business credit. Not only will this keep you out of choppy water, but it can turn that same churning nightmare into beautifying, relaxing, calm waters.

Here is how you start.

Figure Out What Happened

Did you fall overboard or were you pushed? If hard times just sent you flying over the rails and into the churning waves, don’t sweat it.  It happens.  Just grab a hold of the first floating object you can find, hold on for dear life, and make it through.  Use the fast working capital in a recession and you will come out on the other side.

If, however, your peril was caused by foolish decisions, poor planning, or some undiscovered fraud, you are going to have some work to do when you get out.  Damage control is in order.  Figure out what happened and take steps to ensure it doesn’t happen again.

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.

Learn to Read Financials

The best way to stay on top of your finances is to understand your financial statements.  There is more to it that just revenue, expenses, and assets.  Of course you need to understand profit, but learn to look closer.  Figure out the real story your financial statements are telling you.

There is a lot to this, but the easiest and quickest way to start is to do a comparison.  Take a look at what sales, profit, and expenses looked like at the same time last year, last quarter, and last month.  If you see a significant change, look into it.  You may find something easily explained, such as an increase in cost or a decline in sales that is standard at that time of the year.

You may, however, find something that is causing a problem.  Has a cost increased significantly enough that you need to shop around for a better price?  Is there a cash leak that you cannot get your hands around?  It could be fraud.

Maybe receivables haven’t turned over at all in a significant amount of time.  Consider increasing collection efforts or revisiting the credit policy.  Learning how to read your financial statements and understand what they are telling you will help you stay out of the deep end.

Evaluate Processes

Look at your processes.  Is there a more efficient way to do things?  It isn’t uncommon to find that you need to make some changes during an economic downturn.  Maybe you need to adjust the hours you are open or make some staffing changes.  Take a fresh look at your pricing model and make any decisions that need to be made.

Use Fast Working Capital in a Recession Wisely

Whether you turn to invoice factoring, merchant cash advances, working capital loans, or business credit cards, you need to handle the working capital you access during a recession wisely.  Make payments consistently on-time, and don’t blow it.  It is best to have a plan and a budget in place for the funds before you have it in hand.

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How to Build PAYDEX Score Fast: And Other Dun & Bradstreet Reports You Need to Know About

If you know anything about business credit is it probably about the Dun & Bradstreet PAYDEX score.  D&B is the largest and most commonly used business credit reporting agency. The PAYDEX score is the score from Dun & Bradstreet that lenders use most often.  This is likely because it is the most comparable to the consumer FICO, so they feel like they can easily understand the information it is telling them. Follow these tips to build PAYDEX score fast.<

Build PAYDEX Score Fast, but Don’t Forget the Other D&B Reports

Your Dun & Bradstreet report is among the first things a lender will look at when determining whether to do business with you. They offer database-generated reports to their clients to help them decide if you, a potential vendor, supplier, or business partner, are a good credit risk. 

A company will rely on the D & B Report about your firm to make informed business credit determinations and avoid bad debt. Dun & Bradstreet takes several factors into account in creating such a report. Let’s look at all of these factors in turn, starting with the PAYDEX.  Afterall, you cannot understand how to build PAYDEX score fast without understanding what exactly the PAYDEX is.

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PAYDEX Score

The PAYDEX Score is Dun & Bradstreet’s score that tells the lender how well your business has paid the bills over the past year. D & B bases this score on trade experiences documented by vendors.  It ranges from 1 to 100. The higher the score, the lower the perceived risk.

We will discuss this more in depth later, but the quick answer to how to build PAYDEX score fast is to pay your business obligations on-time and consistently. The trick is getting those payments reported to D&B and not personal credit reporting agencies.

In addition to the PAYDEX, D&B uses the following. 

Delinquency Predictor

To estimate how likely a company is to be late in paying debts, Dun & Bradstreet uses predictive models. They use predictive scoring, which takes historical data to try to predict future results. They do this by figuring out the potential risk of a future decision, then they compare the historical information to a future event. Thus, predictive scoring only represents a statistical probability, and not a guarantee.

Financial Stress Percentile

The Financial Stress Percentile compares companies in categories such as region, industry, number of employees, or number of years in the business. Financial Stress Score Norms determine an average score and percentile for similar firms. 

Financial Stress Score

Dun & Bradstreet generates Financial Stress Scores to predict how likely it is a business will fail over the next twelve months.  These scores range between from 1,001 to 1,875. A score of 1,001 represents the highest probability while a figure of 1,875 shows the lowest probability of business failure.

Financial Stress Risk Class

This is a rating from D&B that places business in classes from 1 to 5. Class 1 includes businesses least likely to fail, while class 5 includes those firms most likely to fail. Therefore, a D & B customer can rapidly divvy their new and existing accounts by risk and then determine how to proceed. If your business is shown as being Discontinued at This Location; Higher Risk; or Open Bankruptcy, you are going to automatically get a 0 score.

Financial Stress Score Percentile

This score has a 1-100 ranking where a 1 percentile is most likely to fail and a 100 percentile is least likely to fail. If D&B identifies a company as financially stressed, that indicates it has stopped operations following assignment of bankruptcy, voluntarily withdrawn from business operation with unpaid obligations, or closed up shop with a loss to creditors.  It could also mean a company is in receivership, reorganization, or has made some sort of an arrangement for the benefit of creditors.

Supplier Evaluation Risk Rating

The Supplier Evaluation Risk Rating (also called a SER Rating) predicts how likely it is a company will get legal relief from creditors or end operations without paying creditors in full over the next twelve months. Once Dun & Bradstreet calculates the Financial Stress Score percentile for your company, they apply a second set of rules to calculate the SER Rating, on a scale of 1 – 9. A 1 means your company is least likely to fail to pay suppliers. A 9 is the opposite, showing the highest likelihood.

Credit Limit Recommendation

A D&B Credit Limit Recommendation includes two recommended guidelines:

  • A conservative limit, recommending a dollar benchmark if a company’s policy is to extend less credit to minimize risk and
  • An aggressive limit, suggesting a benchmark if a firm’s policy is to extend more credit with potentially more risk.

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D & B bases these dollar guideline levels on a historical evaluation of the credit demand for similar businesses, with respect to employee size and industry. Dun & Bradstreet assesses how likely a business is to continue to pay your according to the agreed-upon terms, and how likely it is to experience financial stress in the next twelve months.

D & B Rating

A D&B Rating helps lenders swiftly assess a business’s size and credit potential. Dun & Bradstreet bases this rating on details in your company’s balance sheet, plus an overall evaluation of the firm’s creditworthiness. The scale goes from 5A to HH. 

Composite Credit Appraisal

This number, between 1 through 4, makes up the second half of your firm’s rating. It reflects Dun & Bradstreet’s overall rating of your business’s creditworthiness. They analyze company payments, financial information, public records, business age, and other factors.

If your company does not supply current financial information, you cannot get a Composite Credit Appraisal rating of better than a 2. The 1R and 2R rating categories show company size only based on the total number of employees.  Consequently, these ratings are assigned only if your company’s file does not contain a current financial statement. Employee Range (ER) Ratings apply to specific lines of business not lending themselves to categorization under the D & B Rating system. These kinds of businesses receive an Employee Range symbol based upon the number of employees and nothing else.

In general, when Dun & Bradstreet does not have all of the information they need, they will show that in their reports. However, omitted information does not necessarily mean your firm is a poor credit risk.

D & B Data

Finally, any report is only as good as the data it originates from. Dun & Bradstreet’s database includes over 250 million companies around the world. It includes around 120 million active companies and about 130 million companies which are out of business but kept for historical reasons. D & B continuously gathers data and works to improve its systems to ensure the greatest degree of accuracy feasible. Businesses should provide D&B with a  complete financial statement to ensure as accurate a report as possible.

Build PAYDEX Score Fast: Practical Tips

While it is tremendously helpful to understand all the different reports Dun & Bradstreet can generate for your business, when it comes to getting funding you need to know how to build PAYDEX score fast.  Keep in mind however, fast is relative. Will it take years like it does to build a personal credit score? No, it won’t. Will it happen overnight? That’s a resounding no as well.  

It also will not happen on its own.  You cannot passively do business and expect to build PAYDEX score fast.  You have to take intentional steps toward building your business credit score.  It’s a process, and it starts with how your business is set up. Some of these steps may already be done, as often they happen in the course of opening a business.  Some of them however, may not have seemed necessary at the time. When it comes to building PAYDEXs however, they are absolutely necessary. 

Regardless of where you are in the life of your business, it is never too late to take the steps necessary to build PAYDEX score fast. 

Build PAYDEX Score Fast: Set Up Your Business as a Fundable Entity

Many times, in the early days of a business, business owners find it easy to run the business as an extension of themselves.  They operate as a sole proprietorship, using their own address and phone number as contact information. There seems to be no reason for a separate bank account, and an SSN works just find when asked for. 

To build PAYDEX score fast however, this will not work.  Your business needs to be separated from yourself as the owner.  It needs to appear to lenders to have fundability on its own merits, not yours.

Steps to Set Up Your Business as a Fundable Entity

establish PAYDEX quickly Credit Suite

Separate Contact Information

Contact information is an identifying factor.  If you apply for credit with your personal address and phone number, that application is going to pick up you’re your personal credit report. Your business needs its own phone number and address.  If you don’t have an actual location or separate phone line, you can still accomplish this. There are a number of options for phone numbers that will ring to your current line, and virtual offices offer a physical mailing address along with many other services. 

Get an EIN to Use in Place of an SSN

This is easy to do and completely free.  It can be done online at IRS.gov in a matter of minutes.  The point is to use this number, instead of your social security number, to apply for credit in your business name.  This way, the account will report your information to the business CRAs, including Dun & Bradstreet.

Incorporate Your Business

Whether you choose to incorporate as a corporation, S-corp, or LLC does not matter when it comes to fundability.  Make that decision based on other factors, like how much liability protection you need and your budget. You do need to choose one though. Operating as a sole proprietorship will not work well if when building business credit.

Get a D-U-N-S Number

If your follow every single step and do not do this one, you will never build PAYDEX score fast.  In fact, you cannot have a PAYDEX score at all if you do not have this number. It’s free also, and easy to get on the D&B website.   However, they will try to sell you a ton of other services that you really do not need.  Just get the number and move on. 

Open a Separate Business Bank Account

Not only will this help you keep your business expenses separated from your personal expenses for tax purposes, but it will also help you when you apply for credit in your business name.  Some vendors and lenders like to see a business bank account with a minimum average balance before extending credit.

Build PAYDEX Score Fast: Vendor Credit

Separating your business from yourself is not the whole story. That’s really just laying the foundation that you can build on.  You have to stack the blocks, and they have to be stacked in order. You can’t just follow all these steps and then go apply for regular business credit cards with your business credit.  It still doesn’t exist. 

The key to building PAYDEX score fast is the vendor credit tier. This is how your will initially build your PAYDEX score so that you can apply for credit from those lenders that will want to see a strong score.   

The vendor credit tier includes starter vendors that will issue invoices with net 30 terms without even checking your credit.  Set up your account in your business name, and they will report your on-time payments to the business credit reporting agencies.  It is important to note that not all of them report to all the CRAs, so be sure you find those that report to Dun & Bradstreet if you want to build PAYDEX score fast.  The more of these vendors your have reporting, the faster your score will grow. Remember though, you have to pay on time.  

Build PAYDEX Score Fast: Other Ways to Get Accounts Reporting

At the same time, you can talk to vendors you already do business with.  In light of the fact that you already have a relationship with them, they may be willing to offer net terms without checking credit and report payments.  Check with utilities too. They will sometimes report payments to D&B if you ask. The more accounts you get reporting, the faster your score will build. With each on time payment your score will only get stronger.

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It is Possible to Build PAYDEX Score Fast with the Vendor Credit Tier

This process is not only important for building PAYDEX score fast, but really for building PAYDEX, or any business credit at all.  If you do not separate your business from yourself, any credit accounts you get approval for will report payments to your personal credit.  That doesn’t affect your business credit score. If you follow these steps however, you will be able to build your business credit score on each report, including your PAYDEX report, faster. 

 

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