Tag: Financing

Ecommerce Business Inventory Financing

How Can Ecommerce Business Inventory Financing Help Your Business?

Selling goods online? Then you might need Ecommerce business inventory financing.

Our World Has Changed – and It’s Gone Even More Online

While there was already a lot of online commerce, in March of 2020, due to COVID-19, a good 42% of Americans bought groceries online at least once per week. Orders for grocers from Amazon increased 50 fold!

Statista says about 227.5 million Americans were buying online in 2020, so with 330.7 American citizens, that’s just under 69% of all Americans. They are buying a lot more than groceries online. And that’s only continuing in 2021.

What is Ecommerce Business Inventory Financing?

According to Investopedia, “Inventory financing is a revolving line of credit or a short-term loan that is acquired by a company so it can purchase products for sale later. The products serve as the collateral for the loan.”

Why Can Ecommerce Business Inventory Financing Work Right Now?

Online businesses are doing relatively well right now. You already have experience with doing all of your commerce online. With a lot of brick and mortar businesses closed right now, or only tentatively reopening, ecommerce businesses can continue to do well.

Consider Ecommerce Business Inventory Financing

Use your existing inventory as collateral for business financing. You’ll need inventory valued at $300,000 or more. You can get approved for a line of credit for 50% of inventory value. Rates are usually 5 – 15% depending on type of inventory. Get funding within 3 weeks or less. It can’t be lumped together inventory, like office equipment.

But there may be restrictions on the type of inventory you can use. This can include not allowing cannabis, alcohol, firearms, etc., or perishable goods. There can be revenue requirements. There may also be minimum FICO score requirements.

Alternatives to Inventory Financing

There are a number of other ways to get financing for your online business. Your business – and you – have assets beyond inventory. You can tap these assets as collateral. You can use: a 401(k) or IRA, accounts receivable, or stocks or bonds. The 401(k), stocks, or bonds don’t have to be yours. You can work with a partner with these kinds of assets.

Securities-Based Financing

Use existing stocks as leverage to get business financing. Borrow as much as 90% of their value. You continue to earn interest on the stocks pledged as collateral. Closing and funding takes less than 3 weeks.

Rates can be as low as 1.6%. This is a working capital line of credit. You will have challenged personal credit.

Demolish your funding problems with 27 killer ways to get cash for your business.

401(k) Financing

Use your existing 401(k), or IRA as collateral for business financing. This program uses IRS proven strategies. You will pay no tax penalties.

You still earn interest on your 401(k). pay low rates, often less than 5%. Close and fund in less than 3 weeks. You can usually get up to 100% of what’s “rollable” within your 401(k).

Follow these steps. A new corporation is formed; a retirement plan is created to allow for investment into the corporation; funds are rolled over into the new plan. Then the new plan purchases stock in corporation and holds it. The corporation becomes debt free and cash rich.

Accounts Receivable Financing

Use your outstanding account receivables for financing. Get as much as 80% of receivables advanced ongoing in less than 24 hours. The remainder of the accounts receivable are released once the invoice is paid in full. Closing takes 2 weeks or less. Factor rates as low as 1.33%. Accounts receivable credit line with rates of less than 1% with no consumer credit requirement

Receivables should be with the government or another business. If you also have purchase orders, you can get financing to have those filled. You won’t need to use your cash flow to do so.

Amazon Corporate Credit Line

Get revolving or pay in full. You can authorize multiple buyers on a single account and download order history reports and pay by purchase order.

With the pay in full credit line, you get net 55-day billing terms to pay in full with no interest. You can set up primary and secondary accounts for multiple purchasers. And you will get a Dedicated Account Manager.

For the revolving credit line, you can make minimum payments or pay in full monthly. Pay 12.99% purchase APR (the minimum interest charge is $1). You get an option to apply as a personal guarantor to build business credit. And enjoy 24/7 Customer Service.

Amazon Lines of Credit and Working Capital Loans

If your business is eligible, you will see funding options when you log into Seller Central. Currently, lines of credit are offered by Marcus by Goldman Sachs. Loans come from Amazon Lending – specific terms are tailored to the business. Get access to loan funds within 5 days.

Kickfurther

You can finance your next inventory purchase with financing from customers and brand supporters and fundraise directly to them. The way it works is, customers buy through what’s called a Consignment Opportunity. Customers own the products they helped fund until they are sold by the brand. As soon as the products sell, the customer earns payments. Kickfurther also offers an online store for businesses to market and sell their products.

Shopify Capital

With Shopify Capital, you can get 12-month terms. Pay back with a percentage of daily sales. Borrow between $200 and $1 million. The total owed and daily repayment rate depend on risk profile.

OnDeck

OnDeck offers inventory loans and business lines of credit. Term loans runs $5,000 to $250,000, with 12-month terms paid back daily or weekly. Lines of credit run from $6,000 to $100,000. Pay back over 12 months, with automatic weekly payments.

Demolish your funding problems with 27 killer ways to get cash for your business.

Get to know Our Hybrid Credit Line Program

Check out this form of unsecured funding. Unsecured funding does not require collateral, but the lender’s risk is mitigated by higher interest rates. Our credit line hybrid has an even better interest rate than a secured loan. Yet you can get the money faster and easier than any type of traditional funding. Get business funding without having to supply bank statements or credit stubs. You can get funding in a few days rather than weeks without supplying any collateral or documents.

You can get some of the highest loan amounts and credit lines for businesses. Get 0% business credit cards with stated income. No financials required. These report to business CRAs. You can build business credit at the same time. This will get you access to even more cash with no personal guarantee.

You can often get a loan of 5 times the amount of current highest revolving credit limit account. This is up to $150,000. Easily five times what you could get on your own when applying for cards. Get cash out on this program as well.

Advantages

There will be NO impact on your personal credit with this type of financing. You need a good credit score or a guarantor with good credit to get an approval. With good personal credit, get unsecured credit cards with a personal guarantee. And with good business credit, get unsecured credit cards without a personal guarantee.

Check out business credit. It should be your goal to build business credit, even if you can get funding elsewhere. Business credit will help your company for years to come. Business credit is credit linked to your EIN and not your SSN.

This credit is available without a personal guarantee. It is available regardless of personal credit. You can get business credit immediately. Business credit is the only way to get money for a business when you don’t have collateral, cash flow, good personal credit, or a guarantor.

Demolish your funding problems with 27 killer ways to get cash for your business.

Ecommerce Business Inventory Financing: Takeaways

Due to current circumstances, online businesses are doing relatively well. You can get inventory financing for your ecommerce business. Or use personal or business assets as collateral for business loans. Amazon and Kickfurther offer even more options. Our hybrid credit line is a stellar choice if you or a guarantor have good personal credit. And don’t forget to build business credit, for even more money for your ecommerce business.

The post Ecommerce Business Inventory Financing appeared first on Credit Suite.

Accounts Receivable Financing

Check Out Accounts Receivable Financing

Are you looking for accounts receivable financing? Even though accounts receivable financing is based on receivables – more on that later – it still pays to look at fundability. Plus we are covering similar alternatives today.

This way in case it turns out that accounts receivable financing is off the table for you and your business, you would still be covered.

Fundability

Fundability is the ability of a business to get funding. It essentially covers all the points a lender or credit provider will be looking at when they’re trying to figure out if you’ll pay back a loan or credit extended to you. These include factors you probably haven’t thought about or might think aren’t so important. But they are!

Your Business name

Does your business include the name of a high risk industry? Did you know it could be preventing you from getting funding? It doesn’t have to be this way. You don’t have to include the name of your industry in your business name. There’s nothing deceptive or illegal or otherwise wrong about calling a business Chico’s rather than Chico’s Bail Bonds.

Note: if you change your business name, be sure to change it everywhere. This means you change it in these places, among others: incorporation documents, licenses, and your records with the business CRAs (D&B, Experian, and Equifax)

It’s best to copy/paste this information. Do not chance making an error by typing it by hand. This is because differences will be interpreted as fraud by lenders and credit providers. Keep records of where your business name is, so, you can be sure you’ve caught everything.

NAICS code

You choose your business’s NAICS code. NAICS industry codes define businesses based on the activities in which they are primarily engaged. The NAICS puts out a list of high-risk and high-cash industries. Higher risk industries include casinos, pawn shops, and liquor stores. If more than one code would apply, there is nothing deceptive, illegal, or wrong with using a less risky one.

The IRS, lenders, banks, insurance companies, and business CRAs use NAICS codes. They are trying to determine if your business is in a high-risk industry classification. So, you could get a denial for a loan or a business credit card based on your business classification. Some codes can trigger automatic turn-downs, higher premiums, and reduced credit limits for your business. See naics.com/search.

Demolish your funding problems with 27 killer ways to get cash for your business.

Business Entity type

To get financing or credit for your business you must have a business entity. A corporation or LLC gives you more credibility in many cases. It also helps you reduce your liability. And it separates you from your business. It makes the business a separate legal entity. Make sure your entity is set up in the same state as your business address.

Your EIN

Your business must have a Federal Tax ID number (EIN). Just like you have a Social Security Number, your business has an EIN. Your Tax ID number is used to open a bank account and to build a business credit profile. Take the time to verify all agencies, banks, and trade credit vendors have your business listed with the same Tax ID number.

Your Business Address

Your business address has to be a real brick and mortar building. It must be a  deliverable physical address. This should not be a home address or a PO Box. Don’t use UPS mailing addresses. Some lenders will not approve and fund unless this criterion is met.

Your Business Phone Number

A cell or home phone number as your main business line could get you flagged as un-established – but VOIP is okay. Do not give a personal cell phone or residential phone as the business phone number. Your phone number must be listed with 411 for most credit issuers and lenders to approve you. Check your record to see if you’re listed and make sure your information is accurate. No record? Then use ListYourself.net to get a listing. Business phone number should be toll-free (800 exchange or comparable).

Your Business Licensing

Make sure you have the proper licensing for your corporation. And make sure the address on your licenses is the same as all other documents. Contact State, County, and City Government offices, and see if there are any required licenses and permits to operate your type of business. Being licensed also builds credibility in your business, which can help you get more customers.

Your Business Website and Email

You need a company email address for your business. Email must be on the same domain as your website. This usually comes with a website domain provider such as GoDaddy or Host Gator. It is not just professional; it also greatly helps your chances of getting approval from a credit provider. Do not use Yahoo, AOL, Gmail, Hotmail, or similar kinds of email.

Demolish your funding problems with 27 killer ways to get cash for your business.

Accounts Receivable Financing

You can use outstanding account receivables as collateral for financing. Receivables should be with the government or another business. If you also have purchase orders,  you can get financing to have those filled. You won’t need to use your cash flow to do so. Get an accounts receivable credit line with rates of less than 1% with no consumer credit requirement. Receivables should be with the government or another business.

Accounts Receivable Financing: Terms and Qualifying

Use your outstanding account receivables for financing. Get as much as 80% of receivables advanced ongoing in less than 24 hours. Remainder of the accounts receivable are released once the invoice is paid in full. Factor rates as low as 1.33%. you can get an accounts receivable credit line with rates of less than 1% with no consumer credit requirement.

For a Similar Kind of Funding, Try Purchase Order Financing

This is advanced to a business with a large purchase order or contract but cannot fulfill it. Lender then loans the funds necessary to complete the order and charges a percentage for the service. Then the company can fulfill its order or contract. The difference between purchase order and accounts receivable financing is:

  • Purchase order financing involves a company lending you money to fulfill purchase orders
  • Accounts receivable financing involves a company buying your outstanding invoices

Purchase Order Financing: Terms and Qualifying

Terms are for Credit Suite purchase order financing. For approval, lenders will typically review your outstanding purchase orders that need to be filled. If the purchase orders are valid and the suppliers you are dealing with are credible, you can get approval regardless of personal credit history. Rates typically range from 1-4%. In some instances, you can get 95% of your purchase order financed.

Demolish your funding problems with 27 killer ways to get cash for your business.

Consider Cash Flow Financing as Well

A loan made to a company is backed by a company’s expected cash flows. A company’s cash flow is the amount of cash that flows in and out of a business, in a specific period. Cash flow financing (or a cash flow loan) uses generated cash flow as a means to pay back the loan.

Cash Flow Financing: Terms and Qualifying

Often you will need to have a few years in business. You may need to meet a certain minimum credit score requirement. You will need to prove historical cash flow, and present your accounts receivables and accounts payables, so the lender can determine how much to loan to your business.

SBA Seasonal Line

Advances against anticipated inventory and accounts receivables, or in some cases associated increased labor costs. It is meant to help seasonal businesses. It can be revolving or non-revolving.

SBA Seasonal Line: Terms and Qualifying

Get loans to $5 million. Qualification requirements are the same as with other SBA programs. The maximum maturity on this CAPLine loan is 10 years. Holders of at least 20% ownership in the applicant business must guarantee the loan.

For an Alternative to Accounts Receivable Financing, Try Our Credit Line Hybrid

A credit line hybrid is a form of unsecured funding. Our credit line hybrid has an even better interest rate than a secured loan. Get some of the highest loan amounts and credit lines for businesses. Get 0% business credit cards with stated income. These report to business CRAs. You can build business credit at the same time. This will get you access to even more cash with no personal guarantee.

Credit Line Hybrid: Terms and Qualifying

You need a good credit score or a guarantor with good credit to get an approval (a FICO score of at least 680). No financials required. You can often get a loan of five times the amount of current highest revolving credit limit account. This is up to $150,000.

So How Do You Choose?

This is an enormous buffet of business funding choices! But how do you select the one(s) that’s best for your particular situation? This is where our Advisory Team comes in extremely handy. Or help yourself with our Business Credit Builder. It’s your choice. But it all starts with business credit.

Accounts Receivable Financing: Takeaways

There are all sorts of amazing ways to get business funding. Accounts receivable financing and similar funding types are just the tip of the iceberg. You can find the best financing which fits your circumstances, including your strengths in areas like:

  • Personal credit
  • Collateral or
  • Cash flow

The post Accounts Receivable Financing appeared first on Credit Suite.

Commercial Loan for Real Estate Financing

What is a Commercial Loan for Real Estate Financing? 

Commercial real estate (CRE) is income-producing property with just business (rather than residential) purposes. Examples include retail malls, professional offices such as for dentists, office buildings and complexes, and auto dealerships. Financing, including the acquisition, development, and construction of these properties, often comes from commercial real estate loans. These are mortgages secured by liens on the commercial property. So this is a commercial loan for real estate financing.

What is a Commercial Loan for Real Estate All About? 

Commercial real estate loans are often made to business entities. 

These include developers, corporations, limited partnerships, and funds and trusts. These entities are often formed for the specific purpose of owning commercial real estate.

But such a business entity may not have a financial track record or any credit rating. In that case the lender may require the principals or owners of the entity to guarantee the loan. 

Hence a person (or group of people) puts their property on the line. In case of loan default, the lender can recover from them.

If the lender does not require this type of guarantee, and the property is the only means of recovery in the event of loan default, this debt is a non-recourse loan. It means the lender has no recourse against anyone or anything other than the property.

What are Typical Commercial Loan Terms for Real Estate?

Unlike residential loans, terms for commercial lending typically range from 5 years (or less) to 20 years. The amortization period is often longer than the term of the loan. 

Amortization is an accounting technique. Its use is to periodically lower the book value of a loan or intangible asset over a set period of time.

A lender, for example, might make a commercial loan for a term of eight years, with an amortization period of 30 years. Here, the investor would make payments for eight years, of an amount based on the loan being paid off over 30 years. 

Then one final balloon payment of the entire remaining balance on the loan follows.

The length of the loan term and the amortization period affect the rate the lender charges. Depending on the investor’s credit strength, these terms may be negotiable. 

But in general, the longer the loan repayment schedule, the higher the interest rate.

Learn business loan secrets and get money for your business.

What are Loan-to-Value Ratios in a Commercial Loan for Real Estate? 

LTV is a calculation measuring the value of a loan against the value of the property. A lender calculates LTV by dividing the amount of the loan by the lesser of the property’s appraised value, or its purchase price. For example, the LTV for a $80,000 loan on a $100,000 property would be 80% ($80,000 ÷ $100,000 = 0.8, or 80%).

Borrowers with lower LTVs will qualify for more favorable financing rates than those with higher LTVs. This because they have more equity (i.e., a stake) in the property. It works out to be less risk from the lender’s perspective.

Commercial loan LTVs tend to fall into the 65% to 80% range. While some loans may be made at higher LTVs, they are less common. The specific LTV will often depend upon the loan category

What is Debt-Service Coverage Ratio? 

DSCR compares a property’s annual net operating income (NOI), to its annual mortgage debt service. This includes principal and interest. It measures the property’s ability to service its debt. You calculate it by dividing the NOI by the annual debt service.

For example, a property with $150,000 in NOI and $100,000 in annual mortgage debt service, would have a DSCR of 1.5 ($150,000 ÷ $100,000 = 1.5). The ratio helps lenders determine maximum loan size. That has a basis in the cash flow generated by the property.

What Does it Mean to Have a DSCR of Less than One?

A DSCR of less than 1 means a negative cash flow. For example, a DSCR of .93, means there is only enough NOI to cover 93% of annual debt service. In general, commercial lenders look for DSCRs of at least 1.25. This is to ensure adequate cash flow.

A lower DSCR may be okay for loans with shorter amortization periods, and/or properties with stable cash flows. Higher ratios may be required for properties with volatile cash flows. These include, for example, hotels. This is because hotels do not have long-term (i.e., more predictable) tenant leases, which other types of commercial real estate have.

What Sorts of Interest Rates and Fees Do You Typical Pay with Commercial Real Estate Financing? 

Interest rates on commercial loans tend to be higher than on residential loans. Commercial real estate loans also often involve fees adding to the overall cost of the loan. These include appraisal, legal, loan application, loan origination, and/or survey fees.

Some costs must be paid up front before loan approval or rejection. Others apply annually. A commercial real estate loan may have restrictions on prepayment. The intention is to preserve the lender’s anticipated yield on a loan. 

If investors settle the debt before the loan’s maturity date, chances are good they will have to pay prepayment penalties. See investopedia.com/articles/personal-finance/100314/commercial-real-estate-loans.asp.

Learn business loan secrets and get money for your business.

What are Some Types of Commercial Real Estate Loans? 

You can invest in real estate with an SBA 7(a) loan, or an SBA 504 loan. Conventional bank loans are another option, as are hard money loans. Joint venture loans allow parties to share the risk and returns from commercial property investment, without having to formally enter into a real estate partnership.

You can get a commercial mortgage from Freddie Mac, or Fannie Mae. You can try credit unions, or even life insurance companies. Another option is HUD. See stacksource.com/commercial-mortgage-rates.

You can try an online marketplace loan, AKA a soft money loan. Here, interest rates are still higher than conventional bank loans. But they are lower than loans from hard money lenders. For the most part, online marketplaces match borrowers with shorter-term loans. These run from six months to a few years. See fortunebuilders.com/commercial-real-estate-financing-basics.

What Do Most Lenders Look for When Checking if You Qualify for Commercial Loan for Real Estate Financing? 

This depends on the lender and the type of financing. What they check can include available collateral, borrower creditworthiness, and certain financial ratios dependent on characteristics of the property. 

Borrowers may have to provide several years of financial statements and income tax returns. Lenders may also want to see financial statements indicating cash flow for the property to be financed. See reonomy.com/blog/post/commercial-real-estate-financing.

Check Out a Commercial Loan for Real Estate Financing from Credit Suite

Did you know Credit Suite offers commercial real estate financing? It ranges from $100,000 – $20,000,000. You can use this financing for refinancing a property, even if you are doing a cash-out refinance. Maximum LTV is 70%.

Loan-to-values range from 55 – 65%, depending on the purpose of the loan. Plus your clients can also get SBA loans. Renovations get loan to value of up to 60%.

Credit Suite has funding programs available including conventional property financing, money for investment properties and hard money loans, bridge loans and loans for the purchase of commercial real estate.

Get Commercial Real Estate Financing for All Types of Buildings! 

Credit Suite offers financing for many different, even unique property types. Get funding for offices, industrial offices (this includes general or medical/dental), industrial facilities, light manufacturing buildings, and self-storage facilities.

With our commercial real estate financing, you can also get funding for mixed use properties, commercial condos, auto dealerships, light auto services, and day cares.

And you can even get funding for assisted living facilities, entertainment venues, multi-family properties, retail warehouses, and more.

Learn business loan secrets and get money for your business.

Check Out Details on Credit Suite’s Commercial Loan for Real Estate Financing Program

Approval amounts go up to $20,000,000. Bad credit is okay. Use the real estate as collateral. You will need to provide bank statements. A commercial real estate loan is a big step, let’s take it together.

A Commercial Loan for Real Estate Financing: Takeaways

Commercial real estate financing is for buying properties used solely for commercial purposes. Loan terms tend to be shorter than with residential loans. Plus there are added fees such as an appraisal of the property. You can get a commercial real estate loan from the SBA, HUD, conventional lenders, etc. Credit Suite offers a commercial loan for real estate financing for up to $20,000,000. Check out our terms.

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Commercial Loan for Real Estate Financing

What is a Commercial Loan for Real Estate Financing?  Commercial real estate (CRE) is income-producing property with just business (rather than residential) purposes. Examples include retail malls, professional offices such as for dentists, office buildings and complexes, and auto dealerships. Financing, including the acquisition, development, and construction of these properties, often comes from commercial real … Continue reading Commercial Loan for Real Estate Financing

How to Use Equipment Financing and Leasing In Your Business

It’s hard to grow any business, whether new or established, without the necessary equipment. However, some of it can be expensive. For a new business specifically, affording equipment can feel impossible. Still, you need that equipment to make money, which lends itself to a frustrating cycle. The answer may be equipment financing and leasing.

Equipment Financing and Leasing Is a Great Option for Both New and Established Businesses

Equipment financing is when you use a loan or lease to purchase or borrow hard assets for your business. You can use it to buy or lease any physical asset. This can include items like an industrial freezer in a restaurant or an oven or a company car, you name it.

A recent report, the Equipment Leasing and Finance Association (ELFA) survey, found that 80% of American businesses lease a portion of their equipment. The list of companies using leasing includes everything from Fortune 500 companies to mom and pop shops.

Benefits of Equipment Financing and Leasing

There are many benefits to equipment financing and leasing. For example, you will pay a set amount each month, which makes budgeting easier.  Also, you can build business credit if your creditor reports your payment to the business credit reporting agencies. The equipment is the collateral. That means you do not have to potentially sacrifice any other assets.

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

In addition, it’s easy to upgrade equipment after your lease ends.  This can be helpful if your equipment is something like a computer which quickly becomes obsolete. 

What’s the Catch? 

Of course, nothing is perfect.  You may have to make a large down payment.  Furthermore, you will often need to have good personal credit in order to qualify.  If your financed equipment becomes outdated, your business is stuck with it until the end of the lease or loan. Sometimes, leases can end up actually costing more than purchasing. When the lease ends, you  have to get  a new lease or to make other arrangements. Whereas, if you buy the equipment outright you can sell it if you want. 

Types of leases

There are a few different types of leases. Which one will work best for you will depend on a number of factors. 

Fair Market Value Leasing

This is also called an FMV lease. With an FMV lease, you make regular payments while borrowing the equipment for a set term. When the term is up, you have the option to return the equipment or purchase it at its fair market value.

$1 Buyout Lease

This is a type of capital lease in which you pay off the cost of the equipment plus interest over the course of the lease.  At the end, you owe only $1.  Then, when you pay the $1 you fully own the equipment. This is similar to a loan in structure, and cost as well.

10% Option Lease

This lease is the same as a $1 lease, except at the end of the term you can buy the equipment for 10% of its cost.  These leases typically have lower monthly payments than the $1 buyout option. 

How Much Can a Lease Cost?

Of course it varies, but here is an example. Say the total cost of the equipment you are leasing is $25,000.  If it is a 10% option with a 36 month term, with an interest rate of 15%, it looks like this: 

  • Monthly payment is $780
  • Total cost of the lease is $28,079
  • The cost to purchase at the of the lease is $2,500
  • And the total Cost of Equipment is $30,579

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

In this case,  you would be paying an extra $5,579 over the course of the lease. That is over 1/5 added to your total cost for the equipment. If you bought the equipment outright you would pay $25,000. Of course, you would then be out  $25,000 cash all at once.  When you are leasing equipment, you pay out over the life of the lease and thus keep more working capital actually working for your business. 

Credit Suite Offers Equipment Financing and Leasing

You can take advantage of our equipment financing and leasing programs if you have been in business at least one year.  Even if your credit is not the greatest, we have options that may work. Even better, approval takes as little as 24 hours.

The minimum personal credit score requirement is 550. Generally speaking, this is considered a fair credit score, and thus much lower than what many lenders will want to see. You will also need to provide details on the equipment you are getting.  You can be approved for as much as $10,000,000 in equipment financing after a quick credit review. This type of financing often affords more favorable terms than typical business financing programs and better benefits. Our equipment financing programs work for both established and startup businesses. We work with hundreds of lenders, and we can help you find the perfect one for your needs. 

Equipment Financing and Leasing Rates and Payments

You can qualify with only two monthly payments as a down payment.  Rates are affordable, and interest is 100% tax deductible.  In addition, there is no application fee. Furthermore, the time from application to funding is generally 2 weeks or less.

Interest rates range from 7% to 25%, and depending on the amount of the loan and risk factors, you may have to provide 2 years of corporate and personal tax returns.

Are There Other Options for Funding Equipment? 

Of course, we already mentioned paying cash and taking out a traditional loan. If you have accounts receivables you can do receivables financing. That’s really better for funding cash gaps. However, if you need to collect receivable to be able to afford your equipment, it could work.

Another option is the Credit Line Hybrid. This is unsecured business financing. There are no documents required, and you can get up to $150,000.  You do have to have a credit score of at least 680 and meet some other requirements. However, if you do not qualify on your own, you can take on a credit partner that does meet the criteria.  One bonus of this option is that you can purchase the equipment outright.  Since many of the cards that are part of the Credit Line Hybrid sometimes offer low introductory rates for a short time, you could save on interest.

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

Is Equipment Financing and Leasing the Right Option for Your Business?

The short answer is, it depends.  That begs the question, what does it depend on. Well, first, do you need equipment?  That’s what this type of financing is best for. Then, do you need to finance equipment? If you have the cash on hand, you need to consider it carefully.  Financing can be a good idea if you would deplete your cash reserves paying cash for equipment.

Of course, you could just take out a traditional loan. However, you may have to come up with other collateral. If you need finance equipment, using that equipment as the collateral is the easiest solution. The collateralization allows for generally better rates and terms than you would get otherwise. Contact Credit Suite today to find the best option for equipment financing for your business.

The post How to Use Equipment Financing and Leasing In Your Business appeared first on Credit Suite.

Need Funding? Our Credibly Recession Financing Review Can Save Your Business

Get the Funding Your Business Craves with Our Credibly Recession Financing Review

If you’ve been looking for a Credibly recession funding review, then look no further.

Credibly is one of several online lending companies. They are actually an emerging Fintech platform. They also provide SBA PPP loans.

Credibly can provide small business funding for working capital or small business expansion.  You can also get a line of credit through them, equipment financing, invoice factoring, and merchant cash advances.

Credibly Recession Funding Review: Background

Credibly is located online here: www.credibly.com. Their physical addresses are located in Southfield, Michigan; New York, New York; and Scottsdale, Arizona.  You can call them at: (888) 664-1444. Their contact page is here: www.credibly.com/contact.

You can email them at: customerservice@credibly.com.

Credibly Recession Funding Review: Qualification Requirements

Your company has to in business for at least 6 months at the minimum. In addition, you need to have at least $15,000 in monthly revenue. You must have a personal credit score of 500 or better.

Credibly also will want to review your most recent three months’ worth of bank statements while they consider whether to grant your application for funding.

Credibly offers $5,000 to $400,000 in funding. Get money fast – within 24 – 48 hours.

Credibly will perform a soft credit pull only to check your qualifications. But before you receive funding, Credibly will do a hard pull which will appear on your credit profile and may affect your credit score.

In addition, they will want a personal guarantee. They do not require you to provide collateral.

Credibly Recession Funding Review: Working Capital Loans

Get up to $400,000 in funding. Terms are 6 to 18 months. Pay factor rates as low as 1.15. For loans over $100,000, they want to see your most recent business tax return.

Credibly Recession Funding Review: Business Expansion Loans

Get up to $250,000 in funding. Terms are 18 or 24 months. Interest rates start at 9.99%. You must have a FICO score of 600 or better and three or more years in business. Also, you must have $3,000 or more in average daily balances.

Credibly Recession Funding Review: Fees

Pay a one-time 2.5% of the total loan amount set up fee. This fee is deducted from your proceeds. Rates start at 9.99%.

Credibly Recession Funding Review: Lines of Credit. Invoice Factoring, and Equipment Financing

These forms of funding are only available through Credibly’s network of external funding partners.

Credibly Recession Funding Review: Merchant Cash Advances

Get up to $400,000 in funding. Duration is anticipated to be 3 to 18 months. Pay factor rates as low as 1.15. Automatic remittances are tied to your receivables.

Credibly Recession Funding Review: Advantages

Advantages include a short time in business requirement. A short time to funding is also attractive.

Credibly Recession Funding Review: Disadvantages

One set of disadvantages are that they will want a personal guarantee and they will do a hard pull on your personal credit.

For startup companies and their founders in particular, who are often on some shaky financial ground to begin with, this could prove problematic. For these sorts of companies and business owners, a better choice might be to try crowdfunding or angel investing if either is possible. In that way, a business owner’s personal assets would be safer. And, their personal credit would not be affected.

A Viable Alternative – Building Business Credit

Business credit is credit in a small business’s name. It doesn’t attach to a business owner’s personal credit, not even when the owner is a sole proprietor and the solitary employee of the small business.

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

The Advantages

Because company credit is independent from personal, it helps to secure a small business owner’s personal assets, in the event of court action or business insolvency.

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

Another benefit is that even startup ventures can do this. Going to a bank for a business loan can be a recipe for disappointment. But building company credit, when done correctly, is a plan for success.

Personal credit scores depend on payments but also various other components like credit use percentages.

But for business credit, the scores truly merely depend on if a small business pays its bills timely.

Discover our business credit and finance guide, jam-packed with new ways to finance your business without emptying your wallet. Save your money during the recession!

The Process

Establishing company credit is a process, and it does not occur automatically. A business needs to actively work to establish company credit.

Nevertheless, it can be done readily and quickly, and it is much swifter than developing consumer credit scores.

Vendors are a big component of this process.

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

Company Fundability

A company needs to be fundable to lending institutions and vendors.

Consequently, a company will need a professional-looking web site and e-mail address. And it needs to have site hosting bought from a company like GoDaddy.

Additionally, company phone numbers must have a listing on 411.com. Use ListYourself to get a listing.

Likewise, the business phone number should be toll-free (800 exchange or similar).

A business will also need a bank account dedicated solely to it, and it must have every one of the licenses essential for operation.

Licenses

These licenses all have to be in the particular, correct name of the company. And they need to have the same company address and phone numbers.

So note, that this means not just state licenses, but possibly also city licenses.

Discover our business credit and finance guide, jam-packed with new ways to finance your business without emptying your wallet. Save your money during the recession!

Dealing with the IRS

Visit the Internal Revenue Service web site and obtain an EIN for the company. They’re free. Pick a business entity such as corporation, LLC, etc.

A business can get started as a sole proprietor. But they will most likely wish to switch to a type of corporation or an LLC.

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

A business entity will matter when it involves taxes and liability in case of litigation. A sole proprietorship means the entrepreneur is it when it comes to liability and tax obligations. Nobody else is responsible.

Sole Proprietors Take Note

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

If you do not, then your personal name is the same as the company name. Hence, you can find yourself being directly responsible for all small 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 probability for corporations! Prevent confusion and dramatically reduce the odds of an Internal Revenue Service audit simultaneously.

Any DBA should be a stepping stone to incorporating.

Starting Off the Business Credit Reporting Process

Start at the D&B web site and get a free D-U-N-S number. A D-U-N-S number is how D&B gets a small business in their system, to generate a PAYDEX score. If there is no D-U-N-S number, then there is no record and no PAYDEX score.

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

In this manner, Experian and Equifax will have activity to report on.

Vendor Credit

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

And with an established business credit profile and score you can begin to get retail and cash credit.

These types of accounts have the tendency to be for the things bought all the time, like marketing materials, 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 starter credit when you have none now. Terms are in most cases Net 30, versus revolving.

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

Discover our business credit and finance guide, jam-packed with new ways to finance your business without emptying your wallet. Save your money during the recession!

Details

Net 30 accounts must be paid in full within 30 days. 60 accounts need to be paid completely 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 kick off your business credit profile the proper way, you should get approval for vendor accounts that report to the business credit reporting agencies. When that’s done, you can then make use of the credit.

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

Vendor Credit – It Helps

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

You want 3 of these to move onto the next step, which is retail credit.

Retail Credit

Once there are 3 or more vendor trade accounts reporting to at least one of the CRAs, then move onto retail credit. These are companies which include Office Depot and Staples.

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

Fleet Credit

Are there more accounts reporting? Then progress to fleet credit. These are companies like BP and Conoco. Use this credit to purchase fuel, and to fix and maintain vehicles. Just use your SSN and date of birth on these applications for verification purposes. For credit checks and guarantees, make certain to apply using the company’s EIN.

Cash Credit

Have you been responsibly handling the credit you’ve up to this point? Then move onto more universal cash credit. These are businesses like Visa and MasterCard. Only use your Social Security Number and date of birth on these applications for verification purposes. For credit checks and guarantees, use your EIN instead.

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

Monitor Your Business Credit

Know what is happening with your credit. Make sure it is being reported and take care of any mistakes ASAP. Get in the practice of checking credit reports. Dig into the details, not just the scores.

We can help you monitor business credit at Experian and D&B for 90% less.

Update Your Record

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

Fix Your Business Credit

So, what’s all this monitoring for? It’s to challenge any problems in your records. Errors in your credit report(s) can be fixed. But the CRAs often want you to dispute in a particular way.

Disputes

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

Fixing credit report errors also means you precisely detail any charges you challenge. Make your dispute letter as understandable 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 Building Business Credit

Always use credit responsibly! Don’t borrow more than what you can pay back. Track balances and deadlines for payments. Paying punctually and in full will do more to raise business credit scores than just about anything else.

Establishing business credit pays off. Good business credit scores help a small business get loans. Your credit issuer knows the company can pay its debts. They recognize the company is for real.

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

Business credit is an asset which can help your company in years to come. Learn more here and get started toward establishing business credit.

Credibly Recession Funding Review: Takeaways

Companies that do best on Credibly will be fairly new players but with relatively meteoric rises.

A business owner asking for a loan should be prepared for a hard pull on his or her personal credit scores, which will impact those scores. This is just like all hard pulls do.

If an entrepreneur does not have the wherewithal to ride out a slightly lower personal credit score for a couple of years, then Credibly is not for them.

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 with care. Decide if this option will be good for you and your company.

In addition, consider alternative financing options that go beyond just lending. These include building business credit and unsecured business financing. This is in order to best decide how to get the money you need to help your business grow.

Today, we want to hear from our audience! Share your voice with us about your experiences with online lenders and give us your own Credibly review.

 

 

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Need Funding? Our Credibly Recession Financing Review Can Save Your Business

Get the Funding Your Business Craves with Our Credibly Recession Financing Review If you’ve been looking for a Credibly recession funding review, then look no further. Credibly is one of several online lending companies. They are actually an emerging Fintech platform. They also provide SBA PPP loans. Credibly can provide small business funding for working … Continue reading Need Funding? Our Credibly Recession Financing Review Can Save Your Business

Need Funding? Our Credibly Recession Financing Review Can Save Your Business

Get the Funding Your Business Craves with Our Credibly Recession Financing Review

If you’ve been looking for a Credibly recession funding review, then look no further.

Credibly is one of several online lending companies. They are actually an emerging Fintech platform. They also provide SBA PPP loans.

Credibly can provide small business funding for working capital or small business expansion.  You can also get a line of credit through them, equipment financing, invoice factoring, and merchant cash advances.

Credibly Recession Funding Review: Background

Credibly is located online here: www.credibly.com. Their physical addresses are located in Southfield, Michigan; New York, New York; and Scottsdale, Arizona.  You can call them at: (888) 664-1444. Their contact page is here: www.credibly.com/contact.

You can email them at: customerservice@credibly.com.

Credibly Recession Funding Review: Qualification Requirements

Your company has to in business for at least 6 months at the minimum. In addition, you need to have at least $15,000 in monthly revenue. You must have a personal credit score of 500 or better.

Credibly also will want to review your most recent three months’ worth of bank statements while they consider whether to grant your application for funding.

Credibly offers $5,000 to $400,000 in funding. Get money fast – within 24 – 48 hours.

Credibly will perform a soft credit pull only to check your qualifications. But before you receive funding, Credibly will do a hard pull which will appear on your credit profile and may affect your credit score.

In addition, they will want a personal guarantee. They do not require you to provide collateral.

Credibly Recession Funding Review: Working Capital Loans

Get up to $400,000 in funding. Terms are 6 to 18 months. Pay factor rates as low as 1.15. For loans over $100,000, they want to see your most recent business tax return.

Credibly Recession Funding Review: Business Expansion Loans

Get up to $250,000 in funding. Terms are 18 or 24 months. Interest rates start at 9.99%. You must have a FICO score of 600 or better and three or more years in business. Also, you must have $3,000 or more in average daily balances.

Credibly Recession Funding Review: Fees

Pay a one-time 2.5% of the total loan amount set up fee. This fee is deducted from your proceeds. Rates start at 9.99%.

Credibly Recession Funding Review: Lines of Credit. Invoice Factoring, and Equipment Financing

These forms of funding are only available through Credibly’s network of external funding partners.

Credibly Recession Funding Review: Merchant Cash Advances

Get up to $400,000 in funding. Duration is anticipated to be 3 to 18 months. Pay factor rates as low as 1.15. Automatic remittances are tied to your receivables.

Credibly Recession Funding Review: Advantages

Advantages include a short time in business requirement. A short time to funding is also attractive.

Credibly Recession Funding Review: Disadvantages

One set of disadvantages are that they will want a personal guarantee and they will do a hard pull on your personal credit.

For startup companies and their founders in particular, who are often on some shaky financial ground to begin with, this could prove problematic. For these sorts of companies and business owners, a better choice might be to try crowdfunding or angel investing if either is possible. In that way, a business owner’s personal assets would be safer. And, their personal credit would not be affected.

A Viable Alternative – Building Business Credit

Business credit is credit in a small business’s name. It doesn’t attach to a business owner’s personal credit, not even when the owner is a sole proprietor and the solitary employee of the small business.

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

The Advantages

Because company credit is independent from personal, it helps to secure a small business owner’s personal assets, in the event of court action or business insolvency.

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

Another benefit is that even startup ventures can do this. Going to a bank for a business loan can be a recipe for disappointment. But building company credit, when done correctly, is a plan for success.

Personal credit scores depend on payments but also various other components like credit use percentages.

But for business credit, the scores truly merely depend on if a small business pays its bills timely.

Discover our business credit and finance guide, jam-packed with new ways to finance your business without emptying your wallet. Save your money during the recession!

The Process

Establishing company credit is a process, and it does not occur automatically. A business needs to actively work to establish company credit.

Nevertheless, it can be done readily and quickly, and it is much swifter than developing consumer credit scores.

Vendors are a big component of this process.

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

Company Fundability

A company needs to be fundable to lending institutions and vendors.

Consequently, a company will need a professional-looking web site and e-mail address. And it needs to have site hosting bought from a company like GoDaddy.

Additionally, company phone numbers must have a listing on 411.com. Use ListYourself to get a listing.

Likewise, the business phone number should be toll-free (800 exchange or similar).

A business will also need a bank account dedicated solely to it, and it must have every one of the licenses essential for operation.

Licenses

These licenses all have to be in the particular, correct name of the company. And they need to have the same company address and phone numbers.

So note, that this means not just state licenses, but possibly also city licenses.

Discover our business credit and finance guide, jam-packed with new ways to finance your business without emptying your wallet. Save your money during the recession!

Dealing with the IRS

Visit the Internal Revenue Service web site and obtain an EIN for the company. They’re free. Pick a business entity such as corporation, LLC, etc.

A business can get started as a sole proprietor. But they will most likely wish to switch to a type of corporation or an LLC.

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

A business entity will matter when it involves taxes and liability in case of litigation. A sole proprietorship means the entrepreneur is it when it comes to liability and tax obligations. Nobody else is responsible.

Sole Proprietors Take Note

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

If you do not, then your personal name is the same as the company name. Hence, you can find yourself being directly responsible for all small 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 probability for corporations! Prevent confusion and dramatically reduce the odds of an Internal Revenue Service audit simultaneously.

Any DBA should be a stepping stone to incorporating.

Starting Off the Business Credit Reporting Process

Start at the D&B web site and get a free D-U-N-S number. A D-U-N-S number is how D&B gets a small business in their system, to generate a PAYDEX score. If there is no D-U-N-S number, then there is no record and no PAYDEX score.

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

In this manner, Experian and Equifax will have activity to report on.

Vendor Credit

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

And with an established business credit profile and score you can begin to get retail and cash credit.

These types of accounts have the tendency to be for the things bought all the time, like marketing materials, 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 starter credit when you have none now. Terms are in most cases Net 30, versus revolving.

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

Discover our business credit and finance guide, jam-packed with new ways to finance your business without emptying your wallet. Save your money during the recession!

Details

Net 30 accounts must be paid in full within 30 days. 60 accounts need to be paid completely 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 kick off your business credit profile the proper way, you should get approval for vendor accounts that report to the business credit reporting agencies. When that’s done, you can then make use of the credit.

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

Vendor Credit – It Helps

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

You want 3 of these to move onto the next step, which is retail credit.

Retail Credit

Once there are 3 or more vendor trade accounts reporting to at least one of the CRAs, then move onto retail credit. These are companies which include Office Depot and Staples.

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

Fleet Credit

Are there more accounts reporting? Then progress to fleet credit. These are companies like BP and Conoco. Use this credit to purchase fuel, and to fix and maintain vehicles. Just use your SSN and date of birth on theCredibly COVID-19 Funding Credit Suitese applications for verification purposes. For credit checks and guarantees, make certain to apply using the company’s EIN.

Cash Credit

Have you been responsibly handling the credit you’ve up to this point? Then move onto more universal cash credit. These are businesses like Visa and MasterCard. Only use your Social Security Number and date of birth on these applications for verification purposes. For credit checks and guarantees, use your EIN instead.

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

Monitor Your Business Credit

Know what is happening with your credit. Make sure it is being reported and take care of any mistakes ASAP. Get in the practice of checking credit reports. Dig into the details, not just the scores.

We can help you monitor business credit at Experian and D&B for 90% less.

Update Your Record

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

Fix Your Business Credit

So, what’s all this monitoring for? It’s to challenge any problems in your records. Errors in your credit report(s) can be fixed. But the CRAs often want you to dispute in a particular way.

Disputes

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

Fixing credit report errors also means you precisely detail any charges you challenge. Make your dispute letter as understandable 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 Building Business Credit

Always use credit responsibly! Don’t borrow more than what you can pay back. Track balances and deadlines for payments. Paying punctually and in full will do more to raise business credit scores than just about anything else.

Establishing business credit pays off. Good business credit scores help a small business get loans. Your credit issuer knows the company can pay its debts. They recognize the company is for real.

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

Business credit is an asset which can help your company in years to come. Learn more here and get started toward establishing business credit.

Credibly Recession Funding Review: Takeaways

Companies that do best on Credibly will be fairly new players but with relatively meteoric rises.

A business owner asking for a loan should be prepared for a hard pull on his or her personal credit scores, which will impact those scores. This is just like all hard pulls do.

If an entrepreneur does not have the wherewithal to ride out a slightly lower personal credit score for a couple of years, then Credibly is not for them.

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 with care. Decide if this option will be good for you and your company.

In addition, consider alternative financing options that go beyond just lending. These include building business credit and unsecured business financing. This is in order to best decide how to get the money you need to help your business grow.

Today, we want to hear from our audience! Share your voice with us about your experiences with online lenders and give us your own Credibly review.

 

 

The post Need Funding? Our Credibly Recession Financing Review Can Save Your Business appeared first on Credit Suite.

How to Rock Out Streetshares Recession Financing

The recession is officially here, and that means finding financing for your business is going to be more challenging than ever.  It is possible however.  Check out Streetshares recession financing for example.

A Comprehensive Review of Streetshares Recession Financing Options

Funding is a huge obstacle for virtually every small business, especially in a recession. It can seem as if there is almost never enough. This is why having more than one option when it comes to small business funding in a recession is vital. Most assume the first stop is a traditional bank or credit union. That isn’t always possible however. Sometimes you need to research alternative options. This is exactly what Streetshares recession financing is.

Traditional lenders rely heavily on personal credit scores and are not set up to specifically help small businesses thrive. There are some non-traditional lenders that, while still acknowledging risk reduction is essential, know small businesses are a different breed needing special help.

Because of this, they are willing to take other factors into consideration rather than relying so heavily on the personal credit. Factors such as business credit, time in business, annual business revenue, and more can come into play.

Is Streetshares one of those companies? In some ways yes, it is.  In other ways, not really.

Find out why so many companies are using our proven methods to improve their business credit scores, even during a recession.

What is Streetshares?

Streetshares is an online small business funding service offering much more than traditional loans. It all began in 2013 when Mark Rockefeller and Mickey Konson both agreed a small business financing solution for everyday small business owners was necessary. The idea for Streetshares was born.

The idea was to create a lender which would offer small business solutions for veterans and their communities. Today, Streetshares offers financial products to all types of small businesses. While you do not have to have military or veteran affiliation to take advantage of these products, they do maintain their dedication to their military and veteran roots.

What Products Do They Offer?

Streetshares offers a variety of recession financing products with fast application processes and funds deposited almost immediately. There is never a prepay penalty, and the credit check is a soft one, so there is not an impact on your credit score for applying.  This is a huge plus when it comes to financing during a recession.

Streetshares Recession Financing Products

Term Loans– These are lump sum, traditional style loans. They run from $2,000 to $100,000 with terms from 3 to 36 months.

Patriot Express Line of Credit– A revolving line of credit for amounts between $5,000 and $100,000. You draw only what you need, when you need it, and only pay interest on what you used. Terms run from 3 to 36 months.

Contract Financing– An advance on contract invoices. You can receive up to 90% of the total of unpaid invoices on a contract, and Streetshares will collect from the contractor. The beauty of this is you get your cash right away, without having to wait for customers to pay their invoices.

Factoring– Similar to contract financing, accounts receivable factoring allows you to collect a portion of your receivables from Streetshares, while they collect the total amount from those who owe you. This allows you to receive your funds immediately without having to worry about collections.

Our comprehensive Streetshares review revealed that this is a flexible product rather an a one-size fits all. The company lets the borrower determine how many and which invoices to factor in the way best suiting their needs. The business does not have to factor all invoices.

You may be wondering how your credit score will react when you apply for a loan. With most lenders, you credit score can drop some due to the credit check made by the lender. However, while we were doing our Streetshares review, we learned they do a soft pull when they check your credit score, so your credit isn’t affected at all by the application.

Find out why so many companies are using our proven methods to improve their business credit scores, even during a recession.

Streetshares Recession Financing: Repayment

They deduct a set amount from your bank account weekly, so repayment is easy peasy. They also do not have a prepayment penalty, so if you want to pay ahead, you can totally do that.

Other Services: Investment Products

Veterans Business Bonds– These bonds pay a flat 5% interest rate with as little as $25 to start. You can withdraw from the bond in the first year with a 1% fee, and after one year can access your funds at any time without a fee.

Streetshares Pro Investing– If you choose, you can let the Streetshares pros build a portfolio that will help you reach your financial goals.

Financing Application and Requirements for Streetshares Recession Financing

Online application for Street Shares recession financing is quick and easy. If you want or need personal help, you can call and speak with a qualified professional who will walk you through the process. Approval typically comes the same day as application, and funds can be in your account within 3 days.

The basic loan pre-approval qualification requirements are:

  • United States citizenship
  •  At least one year in business (in some cases 6 months is enough)
  •  Minimum required earnings
  •  Business guarantor with reasonable credit

When you apply, you will need to have the following information ready:

  • Business owner’s social security number
  • EIN
  • Total outstanding business debts
  • 6 months of the most recent bank statements
  • Most recent business and personal tax returns

In some cases, financial statements may also be required for Streetshares recession financing. These would include the Profit and Loss statement, the Balance Sheet, and other information as requested. If you use QuickBooks Online, their system can review your financial information directly from there, making the process even faster!

What About Closing Costs?Streetshares Recession Financing Credit Suite

Streetshares changed how they accounted for closing costs mid-2018. Previously, these fees came from funds before they went into the borrower’s account.

The new policy allows for the disbursal of all funds to the borrower, who is then allowed to either roll closing costs into the payment, or pay them back immediately. Streetshares says they made this change to allow borrowers to receive all their funds and have more control over how they used the money based on the needs of their individual business.  This is a huge plus for Streetshares recession financing.

Other Perks

There are a few exceptional benefits to being a Streetshares member.

Discounts

Members of Streetshares enjoy discounts at various retailers. These include but are not limited to discounts on bookkeeping services, services offered by Amazon, and combat attire.  In a recession, every penny counts, right?

Best Price Guarantee

When it comes to Streetshares recession financing, they are serious about offering the best deals and rates when it comes to small business funding. In an effort to do just that, they guarantee they will beat or match a competitor’s offer, or give you a $100 gift card. Here are the details: 

  • You must have a loan offer from Streetshares that has been fully underwritten.
  • You must also have an approved and underwritten offer from one of the lenders listed below.
  • There will need to be proof of the competitor’s offer.

This only applies to online lenders. These are defined as lenders that:

  • Are not a bank, credit union, CDFI, or thrift
  • Operate as a for-profit lending agency
  • Are not a brokers or ISOs (Independent Sales Organizations)
  • Provide Merchant Cash Advance products or is one of the lenders in the following list:
    • Strategic Funding
    • YellowStone
    • BFS capital
    • SOS capital
    • IOU Central
    • BOFI
    • EBF partners
    • Flash Advance
    • LoanMe
    • Ondeck 
    • Kabbage
    • Swift Capital
    • Breakout Capital
    • PayPal LoanBuilder   
    • Principis capital
    • Par Funding
    • National Funding
    • Quick Bridge Funding
    • Business Backer
    • Advance Capital
    • Mulligan Funding Knight Capital
    • 1st Global Capital
    • SFS Funding
    • Itria Ventures
    • EIN CAP
    • Pearl Capital
    • Prime Meridian

They must also, of course, provide small business lines of credit or loans as part of their normal operations.

Brass Tacks of the Best Price Guarantee

After reviewing your offer, Streetshares will generate an Annual Percentage Rate (APR) for the costs of your Streetshares offer in an effort to give you a fair comparison. They will then offer lower fees, a lower interest rate, or make other changes to their offer to beat or match that of the competitor.

Find out why so many companies are using our proven methods to improve their business credit scores, even during a recession.

If they, for some reason, cannot beat or match the offer, they will give you a $100 Amazon gift card.

Streetshares Foundation

We would be remiss if we didn’t talk about the Streetshares Foundation along with Streetshares recession financing. The foundation’s mission is to encourage and support veteran small business owners. In keeping with this, they present a grant to 3 veteran-owned businesses each year.

There are three prizes as follows: 

  • 1st Place: $15,000
  • 2nd Place: $6,000
  • 3rd Place: $4,000

To apply, a business must meet the following requirements:

  • The applicant has to be a veteran or reserve or active duty member of a branch of the United States Armed Forces, or a spouse of an armed forces member.
  • They must be at least 21 years old.
  • The business must be legally incorporated or a formal partnership or sole proprietorship.
  • There must be some sort of social impact on the veteran or military community either in conjunction with or in addition to the primary business function.

The foundation will choose 5 to 10 finalists based on the social impact, business idea, how they will use award funds and the social impact of that use, fit of the product market, and the history of the team and the company.

The final selection process is one of the best parts. Once the finalists are set, they post a list on the website and the public votes on which businesses will receive prizes!

What is “Reasonable Credit? And What if My Credit Isn’t “Reasonable?”

To gain approval for Streetshares recession financing, you need to have “reasonable” credit. It took a little digging around, but it turns out they define reasonable credit as a credit score over 650.

What If My Credit Score Doesn’t Meet that Definition?

There are some steps you can take to improve your score. First, pay your bills on time, every time. You also need to take a look at your credit report. You can do this by obtaining a free copy. Get one annually at no cost.

Review it with a fine-toothed comb. It is even more important to do this during a recession.  If you find mistakes, have them corrected. Do this by submitting the detailed request in writing, with back up documentation of the correct information. Never send originals of backup. Always make copies.

You can also ask those that are not required to report payments to credit agencies to do so. A couple of examples include landlords and utilities. If you are making your payments to them on time, you can ask them to report those payments.

They may say no. It can’t hurt to ask though. If they choose to do so, it could improve your score much faster.

The Better Business Bureau: What Do They Say About Streetshares?

You really can’t talk about a lending company without checking out their profile on the Better Business Bureau. It’s pretty important when considering Streetshares recession financing. As it turns out, they have an A+ rating! There are only two complaints on file, and they are each in reference to unwanted solicitation. The company has responded, and in each case the individual complaining was taken off of their list.

There are 3 reviews on file, and all three relate to the investing option. One is a 3-star rating because there seem to be no financials available for the past 4 years. The last ones are when they first filed with the SEC. The reviewer would like to see how the investment money is being used.

Another 3-star rating is from a reviewer who was not impressed either way yet. They note a few good things and a few not so good things and state they need more time to form an opinion.

The last reviewer gives a 5-star rating and says their investing experience has been “as advertised.”

Do You Need Streetshares Recession Financing?  

It depends.  If you qualify, Streetshares recession financing could be the perfect solution for whatever you need.  The company prides itself on offering fast financing options with little hassle. They have lower interest rates than other online lenders.  Also, while they offer their products to everyone, they take their original mission to use their business solutions to support businesses run by those in the military and veterans seriously.

The main drawback is they are a newer company.  This inevitably causes some kinks, but they seem to be working them out nicely.

(Note: We make every effort to update details regularly but always check the lender’s website for the most up-to-date information on terms, rates, and requirements as these details can change frequently.)

The post How to Rock Out Streetshares Recession Financing appeared first on Credit Suite.

Fundbox Recession Funding – Check Out Our Research on This Rock Solid Way to Get Financing Even in a Recession

Itching for Business Financing? Then Check out Our Review of Fundbox Recession Funding

Fundbox is one of several lending companies online. They offer Invoice Financing (which is not the same as Invoice Factoring). Our Fundbox recession funding review can help you make the best decision for your business.

Fundbox has raised more than $100 million in capital from Silicon Valley investors such as General Catalyst Partners, Khosla Ventures, Blumberg Capital, Entrée Capital, and Spark Capital. They count Jeff Bezos of Amazon as one of their investors.

We look at the specifics and drill down into the details.

Fundbox Recession Funding Review: Background

Fundbox is located online here: https://fundbox.com/. Their physical address is:

300 Montgomery St.
San Francisco, CA 94104.

You can call them at: (855) 572-7707. Their contact page is here: https://fundbox.com/company/contact-us/. You can email them at: support@fundbox.com. The company has been in business since 2013.

Invoice Financing

Rather than purchasing your accounts receivables for a percentage of the money owed to you, they will instead finance the full amount in the form of what is essentially a loan. And then you will pay it back as your customers pay their invoices. Fundbox does not communicate directly with your customers; you will continue to do so.

Payment plans are either 12 or 24 weeks. There is no penalty for repaying early. If you repay early, Fundbox will waive all remaining fees. If you finance your invoices with Fundbox, the fees are flat.

To qualify, you must have at least 6 months invoicing history in your accounting software. And you must have at least $50,000 in annual revenue.

Fees

Fundbox’s fees can vary, depending on customer and over time. You will pay the same amount each week. See: https://fundbox.com/pricing/.

Determine if you can meet a regular payment schedule during an economic downturn.

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.

Revolving Business Lines of Credit

They also offer revolving business lines of credit. You can get line of credit up to $100,000. You will need to allow Fundbox to connect with your accounting software, such as QuickBooks. Fundbox would like to see at least two months of activity in any supported accounting software or three months of transactions in a business bank account.

Your business should be based in one of the 50 United States or one of their supported US territories. Their approved territories are Guam, American Samoa, Northern Mariana Islands, Puerto Rico, and the US Virgin Islands.

Fundbox Pay

Fundbox has a B2B payment system (in a way, like Square or PayPal). This enables merchants to get paid faster on Net 60 accounts. It also allows buyers to qualify for net terms wherever Fundbox is accepted. Applying will not affect your personal credit. See: https://fundboxpay.com.

Accounting Software they Support

Fundbox Pay supports several types of accounting software, including:

  • Clio
  • Ebility
  • FreshBooks
  • Harvest
  • InvoiceASAP

They also support:

  • Jobber
  • Kashoo
  • PayPal
  • QuickBooks Desktop and Online
  • Zoho

Fundbox Recession Funding Review: Advantages

Advantages to Fundbox recession funding  include their exceptional flexibility in connecting to your business bank account, and fast approval. Another advantage is that Fundbox stays out of your relationship with your clients. Your clients need never know that you are working with Fundbox.

Fundbox Recession Funding Review: Disadvantages

The main disadvantage is less than fully transparent fee information. However, if you sign up for Fundbox, they will let you know what your fees are.

Fundbox Recession Funding Review: The Bottom Line

The businesses which do best with Fundbox will be those which can pay back their debts on time or even early. But this is the case with virtually all online lenders, of course.

In addition, entrepreneurs with poor credit will be able to turn to Fundbox. This is vital as most other online lenders will not do the same. And it is even more important during a recession.

Companies without a long time in business might also do well. While neither a minimal time in business nor a minimal annual or monthly revenue requirement is spelled out on the site, there has got to be some sort of minimum in both areas.

As might be expected, companies which miss payments will not do so well with Fundbox recession funding – but that is the case with all online lenders.

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.

Fundbox Recession Funding Review: Alternative Funding

Of course we recommend business credit building as a reasonable alternative to Fundbox.

The Advantages

Since small business credit is separate from personal, it helps to safeguard a business owner’s personal assets, in the event of legal action or business bankruptcy. Also, with two separate credit scores, a small business owner can get two separate cards from the same vendor. This effectively doubles buying power.

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

Individual credit scores depend upon payments but also other elements like credit usage percentages. But for business credit, the scores truly just hinge on if a business pays its invoices on a timely basis.

The Process

Growing business credit is a process, and it does not happen without effort. A business needs to actively work to build company credit. Nonetheless, it can be done readily and quickly, and it is much faster than establishing personal credit scores. Vendors are a big part of this process.

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

Small Business Fundability

A business has to be fundable to lending institutions and vendors. For this reason, a small business will need a professional-looking web site and e-mail address, with website hosting from a company like GoDaddy. Plus business phone and fax numbers ought to have a listing on ListYourself.net.

Additionally the business telephone number should be toll-free (800 exchange or the equivalent).

A company will also need a bank account devoted strictly to it, and it has to have all of the licenses essential for operation. These licenses all have to be in the accurate, appropriate name of the small business, with the same business address and phone numbers. Note that this means not just state licenses, but potentially also city licenses.

Working with the Internal Revenue Service

Visit the Internal Revenue Service website and get an EIN for your business. They’re free of charge. Select a business entity such as corporation, LLC, etc. A business can begin as a sole proprietor but will most likely wish to switch to a form of corporation or LLC to limit risk and make best use of tax benefits.

A business entity will matter when it involves tax obligations and liability in case of a lawsuit. A sole proprietorship means the entrepreneur is it when it comes to liability and tax obligations. Nobody else is responsible.

If you operate a business as a sole proprietor at least file for a DBA (‘doing business as’) status. If you do not, then your personal name is the same as the business name. As a result, you can wind up being directly responsible for all business debts.

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

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.

Instigating the Business Credit Reporting Process

Start at the D&B web site and obtain a free DUNS number. A DUNS number is how D&B gets a corporation into their system, to produce 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 web sites for the company. 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. In this manner, Experian and Equifax will have activity to report on.

Vendor Credit

First you must establish trade lines that report. This is vendor credit.

And with an established business credit profile and score you can start getting retail and cash credit.

These varieties 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 first off, what is trade credit? These trade lines are credit issuers who will give you preliminary credit when you have none now. Terms are generally Net 30, instead of revolving.

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

Details

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

To kick off your business credit profile the right way, you should get approval for vendor accounts that report to the business credit reporting agencies. As soon as that’s done, you can then make use of the credit.

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

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

Retail Credit

Once there are 3 or more vendor trade accounts reporting to at least one of the CRAs, move onto retail credit. These are companies such as Office Depot and Staples.

Use the business’s EIN on these credit applications.

Fleet Credit

Fundbox Recession Funding Credit Suite

Are there more accounts reporting? Then progress to fleet credit. These are companies such as BP and Conoco. Use this credit to buy fuel and fix and take care of vehicles. Make sure to apply using the small business’s EIN.

Cash Credit

Have you been responsibly handling the credit you’ve up to this point? Then move to more universal cash credit. These are companies like Visa and MasterCard. Use your EIN to apply.

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

Monitor Your Business Credit

Know what is happening with your credit. Make certain it is being reported and deal with any errors ASAP. Get in the habit 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 than it would cost you at the CRAs.

Update the info if there are inaccuracies or the info is incomplete.

Challenging Mistakes

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

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

Disputing credit report errors also means you precisely detail any charges you contest. Make your dispute letter as understandable as possible. Be specific about the problems with your report. Use certified mail so that you will have proof that you sent in your dispute.

A Word about Business Credit Building

Always use credit sensibly! Never borrow more than what you can pay back. Keep an eye on balances and deadlines for payments. Paying promptly and fully will do more to boost business credit scores than nearly anything else.

Building business credit pays. Good business credit scores help a small business get loans. Your loan provider knows the small business can pay its debts. They understand the business is bona fide. The company’s EIN connects to high scores, and credit issuers won’t feel the need to ask for a personal guarantee.

Business credit is an asset which can help your small business for years to come. And you can even build it during a recession.

Fundbox Recession Funding Review: Some Final Thoughts

And finally, as with every other lending program, whether online or offline, always remember to read the fine print and do the math. Go over the details with care. And decide if this option will be good for you and your company.

In addition, consider alternative financing options that go beyond lending, including building business credit. Recession funding exists but it is harder to get. So make sure to try Fundbox recession funding.

Only you can best decide how to get the money you need to help your business grow. Today, we want to hear from our audience! Share your voice with us about your experiences with online lenders. And let us know your opinion of our Fundbox review.

The post Fundbox Recession Funding – Check Out Our Research on This Rock Solid Way to Get Financing Even in a Recession appeared first on Credit Suite.