Tag: Finance

Accounts Receivable Finance: How Can A Business Use Accounts Receivable As A Funding Source

Accounts receivable finance options can offer solutions to a number of business funding needs. They can help cover cash gaps or as working capital. In fact, they are a great way to get money for your business without worrying about credit score.

An Accounts Receivable Finance Option Can Be A Superior Solution for Cash Gaps

Many businesses find themselves cash strapped when their own customers are slow paying. Account receivable financing is a good solution. This is secured financing that uses your accounts receivable as security, or collateral.

Any business that carries receivables that turn over regularly can benefit. Old receivables aren’t worth as much. Think about it. If you have been waiting for payment for several months, you have a collection problem. Lenders aren’t as likely to lend against receivables that aren’t paid regularly.

Yet, if you regularly collect within 30 – 90 days, you only need cash to cover that gap. Accounts receivable financing from Credit Suite may be the perfect option.

An Accounts Receivables Finance Option Can Work Even With Bad Credit

Typically, monthly rates run between 1.25% and 5%. Loan amounts can go as high as $20,000,000. To qualify, you will not need financials or good credit.

You will need a time in business of at least 12 months. The lender will review existing receivables.  Consequently, they will also consider the companies that your receivables are with. Hopefully, the companies who owe you have a good history of paying their debts. If so, your approval chances will increase substantially.

Why Credit Doesn’t Matter

Lenders are not looking for good credit from your business. Instead, they need to see that those who owe you will pay. Of course, that is because they get their money when your customer pays the invoice. Accounts receivable finance options typically offer up to 80% of the total of receivables. When your customer pays, you get the balance, usually 20%, less a fee.

Borrowers can be approved with a personal credit score as low as 500.  That’s even with recent derogatory items or major collections on the credit report.

Fast Access to Cash

You can get initial approval in 3 weeks or less. Once approval is financial, you may have funds in as little as 24 hours.

You can operate your business as if you get payment much sooner than your customers actually pay. Better yet, you can do so even while offering net terms to your clients.  Of course, that helps you grow and run your business more successfully

Required Documentation

Required documentations include:

  • Your application
  • 3 Months of business bank statements
  • Your business debt schedule
  • And your accounts receivable report

Benefits of Accounts Receivable Finance Options

Your business gets money without having to rack up expensive debts.   Furthermore, the process is easy and fast. With more cash on hand, your business will pay its own bills faster. In turn, your business credit score may improve.

Both you and your customers benefit. You collect the majority amount of outstanding invoices. In addition, you can offer your clients far more favorable payment terms directly from your business. It’s a win for everyone!

Start the Accounts Receivable Financing Process with Credit Suite

There is a 4-step process that is easy to complete. First, fill out the  form for a one on one consultation with a representative. Then, submit your application. After that, there will be a soft pull on your credit report. Then, there is an easy account receivables review for approval. You can prequalify in as little as 24 hours. What are you waiting for? Get yours free Business Finance Assessment today!

The post Accounts Receivable Finance: How Can A Business Use Accounts Receivable As A Funding Source appeared first on Credit Suite.

Be Amazing– Use Recession Crowdfunding to Finance Your Business

Use Recession Crowdfunding to Finance Your Business and Tap into the Noble Spirit of Human Kindness

If you have ever wondered how to use recession crowdfunding to finance your business, then this one is for you! But before you commit to numbers, perks, a pitch, or anything of the sort, be sure to read this first. And, in particular, be sure to read this if that last sentence made no sense to you. Seriously!

And don’t despair – even in a bad economy, crowdfunding is still possible. People still want to believe in your dreams. But you will probably need to lower your expectations on funding totals when everyone is feeling the pinch.

Use Recession Crowdfunding to Finance Your Business: What Matters

Crowdfunding has become all the rage and there is no wonder. It is (usually) free money which you do not have to pay back. And you can get these funds without having to give up any ownership or control over your small business.

Plus it can help you to gauge the popularity of an idea or a prototype or invention. Because there is no sense in continuing if there is no interest in your handiwork.

Use Recession Crowdfunding to Finance Your Business: History

Before delving into how to do it, let’s first look at when and how crowdfunding came to be.

A History of Angels

In a way, crowdfunding is the child of angel investing. But what is an angel investor?

According to Investopedia: “Angel investors invest in small startups or entrepreneurs. Often, angel investors are among an entrepreneur’s family and friends. The capital angel investors provide may be a one-time investment to help the business propel or an ongoing injection of money to support and carry the company through its difficult early stages.” 

The term comes from Broadway theater. Angels were originally the investors who backed plays, and they still do so. Those people are also called patrons of the arts.

But it Goes Back Even Earlier

The Statue of Liberty was essentially a crowdfunded endeavor. And that was in 1885. But it goes back more than that, as war bonds are a species of crowdfunding. Plus in the 1730s, the London mercantile community saved the Bank of England by supporting the currency. This averted a confidence disaster.

Heck, even the bank scenes in It’s a Wonderful Life show a form of nascent crowdfunding, because the citizens of the town forego full payments to help each other out.

Back to the Present

And then we get to crowdfunding on the internet. Kickstarter, for example, was started in 2009. And ArtistShare goes back to 2003. Today, there are several crowdfunding platforms. They handle everything from inventions to artistic endeavors to medical bills.

Use Recession Crowdfunding to Finance Your Business: Decisions, Decisions

So let’s get started. But you will have to make a lot of choices before you even start a business crowdfunding campaign.

Use Recession Crowdfunding to Finance Your Business: How much?

Your first decision should be: how much do I need to crowdfund? If you need $1 million, you are going to have to crowdfund more than that.

Why? Because that is how crowdfunding platforms make their money. They take a percentage of whatever money you can raise. Therefore, you will need to take that into consideration. Crowdfunding percentage charges range from 4% to 10%.

Use Recession Crowdfunding to Finance Your Business: Will I succeed?

Another decision is about how successful you believe your campaign is going to be. If you are super confident that you will be 100% funded at the end of your campaign, then traditional funding will be for you.

But if you are not sure, then try something like GoFundMe’s flexible funding. With flexible funding, you, the campaign runner, can keep your donations even if your campaign fails. But for this privilege, you will have to pay a higher fee to GoFundMe.

Other crowdfunding platforms like Kickstarter do not offer this option.

Use Recession Crowdfunding to Finance Your Business: What should I offer for perks?

Yes, you will have to offer perks to your donors. Perks can take several forms. Consider buttons, tee shirts, book marks – all of those are possible physical perks.

Think about a perk format which can dovetail with your business. If you sell homemade jam, then maybe create a special flavor just for the campaign. And offer bigger and bigger-sized jars depending on donation amount. If you are a horseback riding stable, offer a free lesson or a postcard with a favorite horse’s picture on it, or the like. Does your business flip houses? Then consider offering a coupon to a local home supply company or the like. But do work with them beforehand, of course.

Physical versus Virtual Perks

Pro tip: physical perks are a pain! A lot of people love them, and they will attract attention. But physical perks also need to be shipped. International shipping is extremely expensive, even for small items. So if you offer physical perks, specify if you will allow international donor addresses.

And even if everything has to be shipped in America, you are still left with dealing with a database of names and addresses. And some of which might have typos or be incomplete.

Plus you often have to deal with a variety of available perks. Did Jane want the stuffed teddy bear or the bookmark? Did Alan want the pennant or the tee shirt? Do Jane and Alan live at the same address so maybe you can combine their perks?

What happens if a perk is lost or damaged in the mail?

Therefore, if you can do it, try for virtual perks. For a house flipping company, you might record videos about home decorating or repairs. Or for a bakery, you could offer downloads of recipes. And for a health club, maybe offer electronic coupons for a free month of membership.

Give the People what they (think they) Want

There is absolutely nothing wrong with just going ahead and asking your potential donors about what they might like for perks. They might surprise you. Of course, the final decision will be your own.

But this is an excellent means of investing your donors and potential donors in the process. This is far more vital than you may think. That is because, when the donors are invested in your process, they will be invested in you. And they will want very badly for you to succeed. This will stand you in good stead if you have delays. And it will also help you out, big time, when your company is up and running.

Furthermore, if you ever crowdfund again, treating your donors right and giving them a seat at the table will assure that they just might follow you to your next campaign.

Use Recession Crowdfunding to Finance Your Business: Your Campaign

Your campaign’s success will be far from guaranteed. But you can take advantage of a few known strategies. First of all consider these four feelings that you want to engender in donors. Use one or more of them as the centerpiece of your campaign as a starting point. We will start with two today and the other two in the next post.

Urgency

The first two and last two days of a crowdfunding campaign are nearly always the days with the biggest payoffs. Often, dragging out the campaign does not make you significantly more money.

So why not open a campaign for just a week? Do not let donors think they can contribute any old time they feel like it. If you give them the feeling that they had better act now, or else lose out, you will get more people to donate.

The fear of missing out is a very real thing.

Recession Crowdfunding Credit Suite

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

Scarcity

If you have thousands of something or other to offer as a perk, it will not be as desirable to your donors. But if you only have one or two of a particular perk, that will create a feeling in some people that they just have to have it. Scarcity can create a bit of anxiety in your donors. And you do want that.

So do this with your higher donation levels only. Therefore, you might want to set up a perk/donation level scheme which looks something like this:

Donation Level Number of Perks
Lowest 1,000
Second lowest 500 (this reward also includes the lowest level reward)
Middle 100 (this reward also includes the two lower level rewards)
Second highest 50 (this reward also includes the three lower level rewards)
Highest 10 (this reward also includes all of the other level rewards)

But be sure to remember: a lot of variation in physical perks will make fulfillment a lot harder. So do not work with more than maybe five separate types of physical perks. And even that is pushing it. After all, look at the complexity already inherent in five tiers (see the table, above).

Multiply that by all of the donors you get to your campaign. Larger platforms offer software for fulfillment purposes. It will nearly always be best to work with it.

But if you have to do it all yourself, then seriously consider no more than three tiers. Trust me. You will thank me later.

Novelty

If you are offering the same thing as a thousand other places, no one will want to make a donation. Your widget has to be lighter, hotter, cheaper, or more durable. Your food has to be lower in calories or higher in nutrition. Or at least it should be better-tasting.

Or your services have to be delivered better, by friendlier and more knowledgeable people. And they should come with a money back guarantee your competitors just plain do not offer.

Think about how services or goods can differentiate themselves. Why do some people prefer Macs? Why do others prefer PCs? And why do some people want to get their insurance from Progressive? But others want theirs from Liberty Mutual.

Consumer choice, particularly in the United States these days, is huge! So offering true novelty can be a way to try to get beyond all of that clutter. And it is a lot of clutter indeed. Have you been to a toothpaste aisle in a drug store lately? Yeah. It is just like that.

Cool factor

Is your product a form of art? Is it a new, gadget-like invention?

Then it might have a coolness factor. And then you can build your campaign around that. But do not be discouraged if it is not! These days, some of the most memorable ad campaigns are based around a product most people found dull not ten years ago – insurance.

Now is the time for us to get back into the nitty gritty of the crowdfunding campaign itself.

Use Recession Crowdfunding to Finance Your Business: Strategy

Here are a few words on strategy.

There’s the Windup and here’s the Pitch!

You will not get anywhere without a pitch video. Yes, even you, you camera shy business owner, you!

Your pitch video needs to be good. Use a professional to film it and write the script. Can’t afford professionals? Then try schools, both students and teachers. Your script does not have to be word for word. But you should have points you want to make and not ramble. A script will help you to focus on exactly what you need to say. This is absolutely not the time to wing it.

Taking time with a script will show in every frame of the finished product. And your professional film maker? They might be charging you by the hour. So it is a really good idea to spend some time on a script or at least an outline of one. Do this before your professional film maker goes on the clock.

Evidence, Your Honor

If you have physical evidence of your project, show it in your campaign video and on your campaign page. This means a picture of your health club’s sign. Or it could be a short video of your prototype robot.

A lot of people are understandably skeptical about crowdfunding. A picture and a tangible thing will go a long way to assuring them that your project is not vaporware.

Recession Crowdfunding Credit Suite

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

Your Mother Was Right

Manners matter. ALWAYS. Say please, thank you, and you’re welcome to everyone. Use these magic words in your pitch and in your communications with your donors. And even use them in the cover letters you send with your perks. This is because even virtual perks can come with a cover email. And they should, as that is another chance to connect with your donors.

Greed is Not Good

Do not get greedy! If you need $250,000 for your campaign, but you ask for $1,000,000, that does not do anyone any good. You will just look like you want to freeload off others’ generosity.

Instead, work hard to account for your expenses as clearly and transparently as possible. And by the way, if you misuse your funds, you might find yourself in an uncomfortable meeting with your state’s attorney general. So always, always, ALWAYS be honest!

If you need help, then hire an accountant or at least a bookkeeper. Much like with your pitch video, if you are low on cash, you can then try a local school.

Keep Your Feet on the Ground, and Your Head in the Clouds

Your stretch goals should be a mix of easily attainable and pie in the sky. If you are crowdfunding for $100,000, a fairly easy to attain stretch goal could be $125,000. Pie in the sky could be $300,000. Only you know your donors, or at least you know some of them. Be realistic about your prospects when it comes to your base. But for stretch goals, feel free to go just a little bit wild.

Make it abundantly clear what you will do with any extra cash if you are fortunate enough to get it. Will you buy the building your business is in? Hire five more people? Replace your old equipment? Open up a new market on another continent? Let your donors know what you are striving for.

This is also an excellent way to help get your donors to feel more invested in your project.

Grace is Amazing

Be gracious if your campaign fails. Even if you use GoFundMe’s flexible funding option, you still might not get enough to make a dent in your funding needs. And of course with most forms of crowdfunding, you have to give everything back no matter what.

But let’s look at how to handle this kind of a situation if you took advantage of the flexible funding option.

Make an executive decision about the funds. If you wanted $100,000 and you only got $500, then your best bet is to just return the money. This kind of a shortfall should also give you a reason to take a good, hard look at your pitch, your campaign, and even your idea. Maybe you are being overly optimistic. A bad failure in crowdfunding can have a way of throwing a bucket of cold water on your dream, yes. But sometimes, that is exactly what you need.

If you almost made it with $95,000, then thank everyone who donated. And see what you can do, even though you have a shortfall. But also tell them what you are doing! Maybe you really will buy your building next year, or hire four people instead of five. Once again, get your donors invested in what you are doing. It will make an enormous difference.

Timing is everything

Line up the biggest donors you can before you get started. Talk to your mother or your brother in law or your former high school football coach. And ask them to hold off on handing over their $1,000 or $10,000 donation until you start your campaign.

Also ask them (nicely!) to release their funds at a very specific time. Which time? The best times will always be the first or last day of the campaign.

Take advantage of the novelty factor of the first day of the campaign. Or take advantage of the urgency factor on the last day of your campaign.

Think about the busker (street musician) with a few of her own dollars in her hat, to encourage people to throw a few bucks for a song. Taking your cue from her, you want your biggest donors to show other donors that they have confidence in you and in your project.

Recession Finance Credit Suite

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

When You Care, You Share

Make sure to share your campaign on social media. And always ask your friends and family to do so, too. Tweet the link. Add it as a Facebook status. Make it a Tumblr post or a snap on Snapchat. Or write a blog post about it. Be proud of what you are doing! Tell the world!

Also, ask your network to circulate the link. The best way to get your network to help you out is by helping them in return. So if your cousin’s band is on Facebook, share their page, or tweet about it.

Be a cooperative member of your own personal community. And then your network will be far more likely to help you out when you ask.

Use Recession Crowdfunding to Finance Your Business: Takeaways

Finally, if your small business recession crowdfunding campaign is successful, consider donating a few bucks to others’ campaigns. Or at least donate a few dollars to charity. And this is because business goodwill and a good reputation are going to be priceless. Karma in crowdfunding matters. 

The post Be Amazing– Use Recession Crowdfunding to Finance Your Business appeared first on Credit Suite.

How the Small Business Finance Exchange Can Affect Your Business in a Recession: 4 Things You Need to Know

As the novel coronavirus continues to affect our economy, the SBFE remains committed to its mission. Let’s take a look at the Small Business Finance Exchange in a recession – because the chances of our economy going into a recession look rather high right now.

The Small Business Finance Exchange Affects the Way Lenders Do Business

The Small Business Finance Exchange, in a recession, can change the face of business credit. You need to know how. Solid business credit is necessary to business growth always, whether there is a recession going on or not. It is also important to the protection of your personal finances. Without a strong business credit profile, you will have to rely on your personal credit when it comes to business financing.

This is bad is so many ways. It may not seem so if you have great personal credit. The problem comes when you do not have separate business credit. Then anything that affects your business affects your personal score.  If something doesn’t work out with the business, your personal credit score suffers.

It can work the opposite way also.  A bad personal credit score can affect your ability to get business financing.

The remedy is to ensure your business has its own credit score, and to be certain that score is complete and accurate.

The Small Business Finance Exchange, also known as the SBFE, helps with that.  Certain lenders and agencies have access to their data.  How do they get your information? Does it affect your business credit? How can it affect your ability to get financing for your business?

What is the Small Business Finance Exchange?

To fully understand the role of the Small Business Finance Exchange in a recession, you need to understand what it is. The SBFE is a not-for-profit entity that gathers data on small businesses from its members. The data is then used to compile comprehensive credit information. Lenders use this information to make credit decisions.

The Small Business Finance Exchange does not lend money. It also does not create or distribute credit reports.

How Does the Small Business Finance Exchange in a Recession Work?

Generally speaking, it works the same way in recession as it does in solid economic times.  The impact however, can change.  The model they use is self-dubbed a “give-to-get” model. Members provide information about their borrowers.  In return they can receive information from the exchange. This information can help them make future lending decisions.

Small Business Finance Exchange in a Recession

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The process starts with members. The members report credit data from those companies that they do business with. This data will include payment history, among other things. This is one reason it is important to make payments on time.  When businesses use the Small Business Finance Exchange in a recession, your payment history prior to the recession can affect your business even more.

Next, the SBFE normalizes the raw data into usable information.  It then distributes this data to certified vendors. These include credit agencies that have a partnership with the SBFE. The distribution to certified vendors is step three.

Certified Vendors use the information to create comprehensive credit products for distribution to SBFE members only.

What Do Members Get?

Members can request data on any small business to whom they may extend credit, making the Small Business Finance Exchange in a recession hugely impactful. Since they gave information, they have information available to them.  That means if you work with member lenders, they have access to even more information that can affect their decision than what is on a standard credit report.

Practically, it looks like this. A lender reports credit information about its current borrowers to the Small Business Finance Exchange. When a new potential borrower comes along, they request a credit report.  This report does not come from the SBFE.  The request is to one of the credit reporting agencies such as Dun & Bradstreet or Equifax. Because of their membership with the SBFE, they receive an extended report that includes the data received from the SBFE as well as that from D&B.

How Does Using the Small Business Finance Exchange in a Recession Affects Your Business?

There is so much more to a business than how and when they make payments. Making consistent, on-time payments is essential. However, not doing so for a period of time does not always tell the whole story. The Small Business Finance Exchange uses its data to paint a more complete picture so that creditors can be better informed.

The result is that even if your payment history is not pristine, the use of information from the Small Business Finance Exchange in a recession can be a good thing for your business. Their mission is to be an advocate for the safe and secure growth of small business. They know that lenders need the most complete and accurate information available to make a viable credit decision.

The Small Business Finance Exchange in a Recession Can Help Your Business in 4 Ways

1. It Can Help You Build Business Credit.

Strive to do business with SBFE members. When you do, you know your information is being reported, which means you are building business credit. How do you know if your lender or vendor is a member?

Small Business Finance Exchange in a Recession

Keep your business protected with our professional business credit monitoring. It’s a worthwhile investment, saving you money even during a recession.

Ask them. If they are not, considered mentioning that they become a member. However, there are enough members in the network that it should not be hard to find one.

2. They Can Help You Grow Your Business.

By working with members, you ensure your complete information is being reported.  When creditors receive your information, you know they get a complete credit picture and not just one piece of it. If you are making your payments and working to build strong business credit, this can only help you.

3. You May Have Increased Funding Options.

The data available about your business from the Small Business Finance Exchange in a recession could open up additional funding opportunities that may not be available to you otherwise.

4. They Can Help You Make Wise Credit Decisions.

Small Business Finance Exchange in a Recession Credit Suite2

Small Business Finance Exchange in a Recession

If you are a small business that lends money to other businesses and has the ability to report that information, you can join the SBFE yourself. You will gain access to information about borrowers available exclusively to members. This information can help you make better decisions about your own business lending.

Who Can Become a Member?

Anyone who has the ability to report their small business lending information to the SBFE can become a member. The only way to gain access to the information that the exchange has in their Data Warehouse is to join.

Members include all types of lending institutions including banks, credit unions, and alternative lenders.

Certified Vendors

Certified vendors are agencies that have a partnership with the Small Business Finance Exchange. They distribute the data they receive from the SBFE. They do this by creating credit analysis products using the information that the Small Business Finance Exchange provides. Then they report the data to members who request a credit report on a business that is included.

Certified Vendors include Equifax, Dun & Bradstreet, and most recently, LexisNexis Risk Solutions. Of course, Equifax and Dun & Bradstreet are credit reporting agencies. LexisNexis sells lending risk insurance products.

While other credit agencies are available to lenders, when they are a member of the Small Business Finance Exchange, in a recession especially, they can get a double shot.  If they utilize one of these certified vendors, they get the benefit of the vendor’s own information plus data received from the Small Business Finance Exchange.  In a recession, this can be an essential link to risk mitigation and solid decision making.

What Goes Around Comes Around

As much as doing business with members of the exchange can help you, it can hurt you if you do not do things properly.

If you are doing business with SBFE members you eliminate the potential to not have any business credit. By default, members are reporting your information and therefore, you have business credit.

However, if you do not handle your business properly, the report members are getting about your business may not be favorable.

Members contract to report both positive and negative information.

How Do You Know If Data Related to Your Business is In the Warehouse?

If you are doing business with member entities, your data is there. How do you know if the companies you do business with are members? Ask them.

What Kind of Data do They Have on My Business?

They have identifying information related to your business. This would include your business name, DUNS number, EIN, address, and NAICS code.

They also have both positive and negative payment information. Bills paid to vendors, suppliers and business partners on time or early are all included. It also includes bills paid late, or not at all, to suppliers, business partners, and vendors.

The limits on your credit accounts, payment information on lease payments, and credit card payment history are also included.

What Action Do I need to Take?

The Small Business Finance Exchange, in a recession, can benefit small businesses. They want to see these businesses thrive and grow, and one way they do that is by offering comprehensive credit information to those who lend them money to do so.

As a small business, you are responsible for your business credit. You control what information ends up on your credit report.  What can you do?

  • Pay your bills consistently on time
  • Do business with SBFE members.
  • If the businesses you currently work with are not members, encourage them to join.
  • Join the SBFE if you are eligible. (Remember you cannot self-report your own information, but by joining, you can make better credit decisions for your business.)
  • Monitor your credit information

Small Business Finance Exchange in a Recession

Keep your business protected with our professional business credit monitoring. It’s a worthwhile investment, saving you money even during a recession.

A Word on Credit Monitoring

There are a couple of ways to monitor credit.  Remember though, that the Small Business Finance Exchange does not create or distribute any type of credit report.

You can request a report from one of the credit agencies such as Dun & and Bradstreet or Equifax.  Even though they are members of the SBFE however, you cannot see that information specific to the exchange unless you are a member as well. You cannot be a member unless you extend credit to small businesses.

Working with members of the Small Business Finance Exchange in a recession is still beneficial, but it doesn’t really help with credit monitoring.

You can also join a credit monitoring service. This will give you continuous access to the information on your report, including your credit score and what is affecting it.

Use the information. Look for ways to build your business credit and report any mistakes. Send the agency a detailed explanation of what is incorrect, what the correct information is, and copies of all supporting documents available.

How to Take Advantage of the Small Business Finance Exchange in a Recession

It is a good idea to work with SBFE members regardless of the economic client.  In a recession however, it can be even more beneficial for all the reasons already stated.  The most prominent reason is that, by doing business with SBFE member, you ensure lenders see the most complete picture of your credit possible.

If the recession has been hard on you and you have missed a payment or two, those negative marks could have a reduced impact. This is based on information lenders receive from the SBFE.  It may not make the bad things go away, but it can definitely add in other information that can help.

The Small Business Finance Exchanges in a Recession – Exists to Help Small Businesses

By offering a more complete credit picture to lenders, the SBFE ensures that more businesses have the financing available that they need to grow. As businesses grow, more businesses can be born.  This is how we come out of a recession.  Successful business begets successful business. And before you know it the economy is thriving again. It’s a win/win for everyone and the Small Business Finance Exchange, in a recession and out, is a superhero to all. Make your payments, do business with SBFE members, and your business can survive and even thrive during the recession.

The post How the Small Business Finance Exchange Can Affect Your Business in a Recession: 4 Things You Need to Know appeared first on Credit Suite.

How to Finance a Business in Any Economy

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

Best Options for How to Finance a Business 

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

How to Finance a Business: Credit Line Hybrid

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

Do You Qualify? 

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

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

how to finance a business Credit Suite

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

Why is a Credit Line Hybrid Awesome? 

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

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

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

How to Finance a Business: Credit Cards

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

Brex Card for Startups

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

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

Capital One® Spark® Classic for Business

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

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

Ink Business Unlimited℠ Credit Card

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

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

Blue Business® Plus Credit Card from American Express

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

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

American Express® Blue Business Cash Card

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

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

Capital One ® Spark® Cash for Business 

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

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

how to finance a business Credit Suite

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

Discover it® Business Card

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

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

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

Marriott Bonvoy Business™ American Express® Card

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

Delta SkyMiles® Reserve Business American Express Card

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

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

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

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

You will need great to excellent credit to qualify.

How to Finance a Business: Online Lenders

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

BlueVine 

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

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

Upstart

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

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

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

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

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

Fora Financial 

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

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

OnDeck 

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

Just like any other online lender, they do have certain requirements to qualify for a loan.  For example, a personal credit score of 600 or more.  Also, you must be in business for at least 3 years. Annual revenue must be at or exceed $100,000. In addition, there can be no bankruptcy on file in the past 2 years and no unresolved liens or judgements.

how to finance a business Credit Suite

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

How to Finance a Business: When to Go Another Route

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

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

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

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

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

Rapid Finance Review

Are you looking for funding from Rapid Advance? They’ve changed their name – so welcome to our Rapid Finance review.

Rapid Advance is one of several lending companies online. They offer short term loans (MCA, also known as merchant cash advances) and more. We look at the specifics and drill down into the details.

Note: due to the COVID-19 health crisis, Rapid Finance is not offering loans at this time. But this lender does not appear to be going out of business.

Rapid Finance Review: Background

Rapid Finance is located online here: https://www.rapidfinance.com/. Their physical address is:

4500 East West Highway
6th Floor
Bethesda, MD 20814.

You can call them at: (800) 664-0173. Their contact page is here: https://www.rapidfinance.com/contact-us/. They have been in business since 2005.

Small Business Term Loans

$5,000 – $1 million is available in funding. The terms are 3 to 60 months. Your business needs to be generating revenue.

You will need to supply a government-issued ID (like a driver’s license), a void check from your business banking account, and the last three statements from your business bank account.

Merchant Cash Advances 

A range of $5,000 – $500,000 is available in funding. 

You will need to supply a government-issued ID (like a driver’s license), a void check from your business banking account, your last three credit card processing statements, and the last three statements from your business bank account.

Bad credit is no problem. 

SBA Loans

$30,000 – $250,000 is available in funding. The terms are 1 to 10 years. 

You will need to supply a government-issued ID (like a driver’s license), a void check from your business banking account, the last three statements from your business bank account, two years of business tax returns, and your schedule of debts.

Rapid Finance also offers bridge loans, lines of credit, asset-based financing, and invoice factoring.

Rapid Finance Review: Advantages

Advantages are a few choices for loan types. The maximum amounts available are high. Rapid Finance has also been in the online lending space for longer than most of the players in this industry.

Rapid Finance Review: Disadvantages

Disadvantages are that the documentation requirements can be a bit extensive. 

An Alternative to Rapid Finance

Why, it’s business credit, of course! Business credit is an asset which can help your small business for years to come.

The Process

Building corporate credit is a process, and it does not happen without effort. A corporation will need to actively work to build business credit. Nevertheless, it can be done easily and quickly, and it is much swifter than establishing consumer credit scores. Merchants are a big part of this process.

Doing the steps out of sequence will cause repetitive denials. Nobody can start at the top with business credit. For example, you can’t start with store or cash credit from your bank. If you do, you’ll get a rejection 100% of the time.

Company Credibility

A small business has to be reliable to loan providers and merchants. As a result, a small business will need a professional-looking web site and email address, with site hosting bought from a vendor like GoDaddy. In addition business phone and fax numbers ought to have a listing on ListYourself.net.

Also the company phone number should be toll-free (800 exchange or the equivalent).

A company will also need a bank account devoted purely to it, and it has to have all of the licenses essential for operation. These licenses all have to be in the correct, appropriate name of the company, with the same company address and telephone numbers. Keep in mind that this means not just state licenses, but potentially also city licenses.

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

Working with the IRS

Visit the Internal Revenue Service website and obtain an EIN for the company. They’re totally free. Choose a business entity such as corporation, LLC, etc. A business can get started as a sole proprietor but will more than likely wish to switch to a type of corporation or partnership to decrease risk and optimize tax benefits.

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

If you are a sole proprietor at the very least be sure to file for a DBA. If you do not, then your personal name is the same as the corporate name. Therefore, you can end up being directly accountable for all business financial obligations.

Plus, according to the Internal Revenue Service, using this structure there is a 1 in 7 chance of an IRS audit. There is a 1 in 50 chance for corporations! Avoid confusion and significantly reduce the odds of an IRS audit simultaneously.

But you should see any DBA filing as a steppingstone to incorporating, which is best for business credit building. 

Starting the Business Credit Reporting Process

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

Once in D&B’s system, search Equifax and Experian’s websites for the business. You can do this at https://www.creditsuite.com/reports/. If there is a record with them, check it for correctness and completeness. If there are no records with them, go to the next step in the process. This way, Experian and Equifax will have activity to report on.

Trade Lines

First you ought to establish trade lines that report. This is also referred to as vendor accounts. Then you’ll have an established credit profile, and you’ll get a business credit score.

And with an established business credit profile and score you can start obtaining revolving store and cash credit.

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

But to start with, what is trade credit? These trade lines are credit issuers who will give you initial credit when you have none now. Terms are normally Net 30, versus revolving.

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

Details

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

To launch your business credit profile the proper way, you ought to get approval for vendor accounts that report to the business credit reporting bureaus. As soon as that’s done, you can then use the credit.

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

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

Revolving Store Credit

Once there are 3 or more vendor trade accounts reporting to at least one of the CRAs, progress to revolving store credit. These are companies such as Office Depot and Staples. These companies are likelier to have products you need.

Use the business’s EIN on these credit applications.

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

Fleet Credit

Are there more accounts reporting? Then progress to fleet credit. These are businesses like BP and Conoco. Use this credit to buy fuel, and to repair and maintain vehicles. Make certain to apply using the corporation’s EIN.

Cash Credit

Have you been responsibly managing the credit you’ve gotten up to this point? Then move onto more universal cash credit. These are service providers such as Visa and MasterCard. Keep your SSN off these applications; use your EIN instead.

These are usually MasterCard credit cards. If you have more trade accounts reporting, then these are attainable.

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

Monitor Your Business Credit

Know what is happening with your credit. Make sure it is being reported and fix any mistakes ASAP. Get in the practice of checking 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. Update the details if there are mistakes or the info is incomplete.

Disputing Inaccuracies

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

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

Disputing credit report errors also means you specifically itemize any charges you dispute. Make your dispute letter as crystal clear as possible. Be specific about the problems with your report. Use certified mail so that you will have proof that you mailed in your dispute.

A Word about Business Credit Building

Always use credit sensibly! Don’t borrow beyond what you can pay off. Keep an eye on balances and deadlines for repayments. Paying in a timely manner and fully will do more to raise business credit scores than pretty much anything else.

Establishing company credit pays. Good business credit scores help a small business get loans. Your credit issuer knows the small business can pay its debts. They understand the small business is authentic. The small business’s EIN links to high scores, and lenders won’t feel the need to demand a personal guarantee.

Rapid Finance Review: Takeaways

The companies which will do the best with Rapid Finance will tend to have entrepreneurs with decent personal credit scores and a considerable time in business. These companies will also have fairly high annual revenues.

The businesses which might not do so well will have been in business for too short an amount of time, or not have sufficient annual revenues. Companies not needing a lot in funding would probably do better going elsewhere.

And finally, as with every other lending program, whether online or offline, remember to read the fine print and do the math.

Go over the details carefully. And decide whether Rapid Finance will be good for you and your company. In addition, consider alternative financing options that go beyond lending, including building business credit, in order to best decide how to get the money you need to help your business grow.

The post Rapid Finance Review appeared first on Credit Suite.

The post Rapid Finance Review appeared first on Buy It At A Bargain – Deals And Reviews.

Rapid Finance Review

Are you looking for funding from Rapid Advance? They’ve changed their name – so welcome to our Rapid Finance review.

Rapid Advance is one of several lending companies online. They offer short term loans (MCA, also known as merchant cash advances) and more. We look at the specifics and drill down into the details.

Note: due to the COVID-19 health crisis, Rapid Finance is not offering loans at this time. But this lender does not appear to be going out of business.

Rapid Finance Review: Background

Rapid Finance is located online here: https://www.rapidfinance.com/. Their physical address is:

4500 East West Highway
6th Floor
Bethesda, MD 20814.

You can call them at: (800) 664-0173. Their contact page is here: https://www.rapidfinance.com/contact-us/. They have been in business since 2005.

Small Business Term Loans

$5,000 – $1 million is available in funding. The terms are 3 to 60 months. Your business needs to be generating revenue.

You will need to supply a government-issued ID (like a driver’s license), a void check from your business banking account, and the last three statements from your business bank account.

Merchant Cash Advances 

A range of $5,000 – $500,000 is available in funding. 

You will need to supply a government-issued ID (like a driver’s license), a void check from your business banking account, your last three credit card processing statements, and the last three statements from your business bank account.

Bad credit is no problem. 

SBA Loans

$30,000 – $250,000 is available in funding. The terms are 1 to 10 years. 

You will need to supply a government-issued ID (like a driver’s license), a void check from your business banking account, the last three statements from your business bank account, two years of business tax returns, and your schedule of debts.

Rapid Finance also offers bridge loans, lines of credit, asset-based financing, and invoice factoring.

Rapid Finance Review: Advantages

Advantages are a few choices for loan types. The maximum amounts available are high. Rapid Finance has also been in the online lending space for longer than most of the players in this industry.

Rapid Finance Review: Disadvantages

Disadvantages are that the documentation requirements can be a bit extensive. 

An Alternative to Rapid Finance

Why, it’s business credit, of course! Business credit is an asset which can help your small business for years to come.

The Process

Building corporate credit is a process, and it does not happen without effort. A corporation will need to actively work to build business credit. Nevertheless, it can be done easily and quickly, and it is much swifter than establishing consumer credit scores. Merchants are a big part of this process.

Doing the steps out of sequence will cause repetitive denials. Nobody can start at the top with business credit. For example, you can’t start with store or cash credit from your bank. If you do, you’ll get a rejection 100% of the time.

Company Credibility

A small business has to be reliable to loan providers and merchants. As a result, a small business will need a professional-looking web site and email address, with site hosting bought from a vendor like GoDaddy. In addition business phone and fax numbers ought to have a listing on ListYourself.net.

Also the company phone number should be toll-free (800 exchange or the equivalent).

A company will also need a bank account devoted purely to it, and it has to have all of the licenses essential for operation. These licenses all have to be in the correct, appropriate name of the company, with the same company address and telephone numbers. Keep in mind that this means not just state licenses, but potentially also city licenses.

Rapid Finance

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

Working with the IRS

Visit the Internal Revenue Service website and obtain an EIN for the company. They’re totally free. Choose a business entity such as corporation, LLC, etc. A business can get started as a sole proprietor but will more than likely wish to switch to a type of corporation or partnership to decrease risk and optimize tax benefits.

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

If you are a sole proprietor at the very least be sure to file for a DBA. If you do not, then your personal name is the same as the corporate name. Therefore, you can end up being directly accountable for all business financial obligations.

Plus, according to the Internal Revenue Service, using this structure there is a 1 in 7 chance of an IRS audit. There is a 1 in 50 chance for corporations! Avoid confusion and significantly reduce the odds of an IRS audit simultaneously.

But you should see any DBA filing as a steppingstone to incorporating, which is best for business credit building. 

Starting the Business Credit Reporting Process

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

Once in D&B’s system, search Equifax and Experian’s websites for the business. You can do this at https://www.creditsuite.com/reports/. If there is a record with them, check it for correctness and completeness. If there are no records with them, go to the next step in the process. This way, Experian and Equifax will have activity to report on.

Trade Lines

First you ought to establish trade lines that report. This is also referred to as vendor accounts. Then you’ll have an established credit profile, and you’ll get a business credit score.

And with an established business credit profile and score you can start obtaining revolving store and cash credit.

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

But to start with, what is trade credit? These trade lines are credit issuers who will give you initial credit when you have none now. Terms are normally Net 30, versus revolving.

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

Details

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

To launch your business credit profile the proper way, you ought to get approval for vendor accounts that report to the business credit reporting bureaus. As soon as that’s done, you can then use the credit.

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

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

Revolving Store Credit

Once there are 3 or more vendor trade accounts reporting to at least one of the CRAs, progress to revolving store credit. These are companies such as Office Depot and Staples. These companies are likelier to have products you need.

Use the business’s EIN on these credit applications.

Rapid Finance

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

Fleet Credit

Are there more accounts reporting? Then progress to fleet credit. These are businesses like BP and Conoco. Use this credit to buy fuel, and to repair and maintain vehicles. Make certain to apply using the corporation’s EIN.

Cash Credit

Have you been responsibly managing the credit you’ve gotten up to this point? Then move onto more universal cash credit. These are service providers such as Visa and MasterCard. Keep your SSN off these applications; use your EIN instead.

These are usually MasterCard credit cards. If you have more trade accounts reporting, then these are attainable.

Rapid Finance

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

Monitor Your Business Credit

Know what is happening with your credit. Make sure it is being reported and fix any mistakes ASAP. Get in the practice of checking 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. Update the details if there are mistakes or the info is incomplete.

Disputing Inaccuracies

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

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

Disputing credit report errors also means you specifically itemize any charges you dispute. Make your dispute letter as crystal clear as possible. Be specific about the problems with your report. Use certified mail so that you will have proof that you mailed in your dispute.

A Word about Business Credit Building

Always use credit sensibly! Don’t borrow beyond what you can pay off. Keep an eye on balances and deadlines for repayments. Paying in a timely manner and fully will do more to raise business credit scores than pretty much anything else.

Establishing company credit pays. Good business credit scores help a small business get loans. Your credit issuer knows the small business can pay its debts. They understand the small business is authentic. The small business’s EIN links to high scores, and lenders won’t feel the need to demand a personal guarantee.

Rapid Finance Review: Takeaways

The companies which will do the best with Rapid Finance will tend to have entrepreneurs with decent personal credit scores and a considerable time in business. These companies will also have fairly high annual revenues.

The businesses which might not do so well will have been in business for too short an amount of time, or not have sufficient annual revenues. Companies not needing a lot in funding would probably do better going elsewhere.

And finally, as with every other lending program, whether online or offline, remember to read the fine print and do the math.

Go over the details carefully. And decide whether Rapid Finance will be good for you and your company. In addition, consider alternative financing options that go beyond lending, including building business credit, in order to best decide how to get the money you need to help your business grow.

The post Rapid Finance Review appeared first on Credit Suite.