Digital Currency Group, the cryptocurrency conglomerate that owns Genesis Global Trading, is the biggest creditor of the beleaguered hedge fund, according to court documents. The post Genesis Lent $2.4 Billion to Hedge Fund Three Arrows Capital first appeared on Online Web Store Site.
Tag: Fund
3 Types of Collateral Loans to Fund Your Business Now
Collateral loans can allow you to get better rates and terms on business funding. Prime assets for collateral include inventory, equipment, real estate, and investments. Often, the asset you are financing itself can be used as collateral. As a result, you can get what you need without depleting cash reserves.
What is Collateral?
According to Investopedia, collateral is:
“…an asset that a lender accepts as security for a loan. Collateral may take the form of real estate or other kinds of assets, depending on the purpose of the loan. The collateral acts as a form of protection for the lender. That is, if the borrower defaults on their loan payments, the lender can seize the collateral and sell it to recoup some or all of its losses.”
Now, here are some examples of collateral loans.
#1 Inventory
You can use the inventory you want to sell as collateral for a loan to buy the inventory!
Inventory Financing
Inventory collateral loans can be in the form of a revolving line of credit or a short-term loan. The funds can purchase products for resale. In fact, the products typically serve as the collateral for the loan.
Of course, there may be restrictions on the type of inventory you can use. For example This not allowing cannabis, alcohol, firearms, or perishable goods is common. Also, there can also be revenue requirements or a minimum FICO score.
Kickfurther
Interestingly, Kickfurther is a combination of inventory financing and crowdfunding. With this platform, you get financing from supporters and fundraise directly to them. They buy through what’s called a Consignment Opportunity.
Consequently, your customers own the products they help fund. That is, 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. It is possible to get funding for up to $2 million in inventory.
Payback terms will vary. However, at the end of each sales period you submit sales reports and provide payment for inventory sold. Furthermore, you must provide a monthly accounting of current inventory levels.
#2 Equipment
There are several ways to use equipment to get collateral loans.
Equipment Financing
These are collateral loans you can use to purchase hard assets for your business. Terms for equipment financing through Credit Suite are as follows:
- Companies must have at least one year in business
- You can get approved even with challenged credit
- You won’t need financials to secure equipment financing
- Approvals take as little as 24 hours
Equipment Leasing
In contrast, you can also lease equipment rather than buy it outright. Often, you will put down less money than you would if you were buying. In addition, you may be able to negotiate flexible terms with an equipment lease.
Even better, it’s easy to upgrade equipment after your lease ends. Of course, this is helpful if your equipment is something like a computer which quickly becomes obsolete.
- Terms for equipment leasing through Credit Suite are:
- Personal credit score of 640 or above
- Provide lenders with any requested details on the equipment you are getting
- Up $10,000,000 in equipment financing possible
Equipment Sale-Leaseback
You can also use equipment you already own as collateral. Basically, you sell equipment to a lender for cash, and then lease it back from them. As a bonus, this lets you unlock Section 179 tax savings and depreciate your entire equipment purchase in the first year.
Of course, term lengths and the amount you can finance will vary. First, you need at least one larger piece of higher value equipment to qualify. Then, you can get funding in as little as 3 weeks. Generally, a lender just wants to be sure your equipment does not have any liens against it.
Investments
If you have investments, you can use them to gain access to funding for your business through collateral loans without worrying about credit scores.
IRA Financing
IRA financing allows you to invest a portion of your retirement funds into your business. The result is, you gain more control over the performance of your retirement plan assets. At the same time, you get access to the working capital you need for business growth.
Usually, you will work with a CPA who will help you. You can cash out the lesser of half or $50,000 from an account that qualifies. If applicable, the CPA you work with will structure a self-directing IRA for the remaining funds.
Stocks Financing
Some lenders will make loans using securities as collateral. You can use the funds for almost any purpose. This includes buying real estate or investing in a business. The only restrictions to this kind of lending are other securities transactions, like buying shares or repaying a margin loan.
Also, you continue to earn interest on the stocks, and rates can be as low as 1.6%.
Bonds Financing
Typically, bonds financing is available through large financial institutions and private banks. In general, those that look for these kinds of loans want to make a large business acquisition. Or, they may want to execute large transactions like real estate purchases. In this type of funding, the borrower’s investment portfolio helps the lender determine how much to loan.
Most investment-grade corporate, treasury, municipal, and government agency bonds are fair game. You keep all the interest and appreciation from your securities. To qualify, all the lender will require is a copy of your two most recent securities statements.
If your stocks or bonds have a value over $25,000, you can get approval. Even bad personal credit isn’t an issue.
Bonus: 401(k) Financing
To be fair, this is not a loan. You will not have to pay an early withdrawal fee or a tax penalty. The plan, rather than the individual, owns the trade or business through its company stock investments. Since it isn’t a loan against your 401(k), there’s no interest to pay. Instead, this is actually a change of ownership.
Still, it is business funding you can get using investments, so it bears mentioning.
Officially, the name for this type of funding is a 401(k) Rollover for Working Capital program. The IRS calls it a Rollover for Business Startups (ROBS). Per the IRS, a ROBS qualified plan is a separate entity with its own set of requirements.
Credit Suite 401(k) Rollover for Working Capital program highlights:
- Low rates, often less than 5%
- Your 401(k) will need to have more than $35,000 in it
- Can often get up to 100% of what’s “rollable” within your 401(k)
- The lender will want to see a copy of your two most recent 401(k) statements
- You can get 401(k) financing even with severely challenged personal credit
- The 401(k) you use cannot be from a business where you are currently employed
- It must be from older employment
- You cannot be currently contributing to the plan
Collateral Loans Can Open Up a World of FundIng With Terms and Rates that Can’t Be Beat
Honestly, collateral loans open up a whole world of funding you may not be able to get otherwise. One benefit is, it’s typically available regardless of credit history. Better yet, the terms and rates can’t be beat. If you have the option, depending on the need and the situation, collateral loans may just be what you are looking for.
The post 3 Types of Collateral Loans to Fund Your Business Now appeared first on Credit Suite.
Quintez Brown: BLM Louisville, bail fund team up to post bail for shooting suspect: report
BLM Louisville posted the bail on Wednesday, a day after reports that Quintez Brown had allegedly tried to assassinate Craig Greenberg at his campaign headquarters in Butchersville.
Curry starts fund for Davidson's female athletes
Stephen Curry and his wife, Ayesha, are contributing an undisclosed amount to start a scholarship fund at Davidson, with a goal to have an immediate impact on the school’s more than 200 female athletes.
The post Curry starts fund for Davidson's female athletes appeared first on Buy It At A Bargain – Deals And Reviews.
Fund Your Business Today
Can You Fund Your Business Easily?
When you want to fund your business, what are the first ideas you have?
You would be hard-pressed to find a business owner that doesn’t know that they need money. What many do NOT know is that there are many more ways to fund your business. They go beyond the traditional banks loans everyone knows about.
There are a Lot of Ways to Fund Your Business
There are a number of ways to fund your business. Your business – and you – have assets. 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.
401(k) Financing
Use your existing 401(k), or IRA as collateral to fund your business. 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 to fund your business. 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.
Kickfurther to Finance the Purchase of Inventory
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.
Demolish your funding problems with 27 killer ways to get cash for your business.
SBA Loans
These are guaranteed by the federal government. Participating lenders issue these, usually banks. They offer a lot of the perks of traditional loans, such as lower interest rates and favorable terms. Due to government guarantee, lenders are able to offer them to those with a lower credit score than would typically be required.
Eligibility for SBA Loans
Lenders and loan programs have unique eligibility requirements. In general, eligibility is based on what a business does to receive its income, the character of its ownership, and where the business operates. Hence even those with bad credit may qualify for startup funding.
Normally, businesses must meet size standards, be able to repay, and have a sound business purpose. The lender will provide you with a full list of eligibility requirements for your loan. See www.sba.gov/document/support–table-size-standards.
More About Eligibility for SBA Loans
General eligibility also includes:
- Being a for-profit business – the business must be officially registered and operating legally
- Doing business in the US – the business must be physically located and operating in the US or its territories
- Having vested equity – the owner must have invested their own time or money in the business
- Exhausting other funding options – the business must not be able to get funds from any other financial lender
Ideal credit scores for an SBA loan are 680 or above. There are a number of SBA loan programs, each one designed to work for different needs and situations. Some of the most common SBA loan programs include:
- 7(a) loans
- 504 loans
- Microloans
- Disaster loans
- Express loans
These are just a few the of the options available. Find out more at SBA.gov.
Which SBA Loan is Best?
SBA loans each have a specific purpose. For example, if your business has suffered due to a natural disaster, you need a disaster loan. If you need $50,000 or less, a microloan may be the best option. But the 7(a) loan program is the most versatile.
SBA 7 (a) Loan Program Details
A standard 7(a) loan can be for up to $5 million. The maximum SBA guarantee is 85% for loans up to $150,000 and 75% for loans greater than $150,000. The interest rate varies but cannot exceed the SBA maximum. The turnaround is 5 – 10 business days. These funds can be used for a number of things, and the minimum credit score is 640. But of course the higher the better.
Who Do SBA Loans Work Best For?
These loans work well for those that are not in a hurry to get funding
The approval and funding process can take a while, especially with the government red tape required for the government guarantee. If you can wait, meet all the requirements, and want a more traditional type of loan, SBA loans are an option.
Demolish your funding problems with 27 killer ways to get cash for your business.
Merchant Cash Advances
Businesses that accept credit cards as a form of payment may qualify for a merchant cash advance. This means your business must have a merchant account in order to be able to accept credit card payments. Your business must bring in $100,000 or more per year in credit card sales. Typical approval is equal to one month’s credit processing volume. The minimum credit score is 500.
Qualifying for a Merchant Cash Advance
MCAs do not ask for a lot of documents. This is not like what most conventional lenders will want. You won’t need financials, business plans, or resumes. You don’t even need collateral.
Your business’s credit card receipts and business bank statements tell lenders all they need to know. These loans work well for businesses that qualify and need funds fast, and those with credit that is less than perfect. It’s a great way to get money for your business fast with few requirements.
Equipment Financing
Businesses looking to buy or lease equipment can use equipment financing. Rates vary widely depending on risk factors. Usually can get approval with a 650 or better credit score. This is for major equipment only, not a combination of a lot of small equipment. These loans work well for those that have good credit and just need to financing equipment. The equipment is the collateral, so that helps out some with rates.
A Traditional Line of Credit
This is similar to a traditional term loan in terms of where you get it, and approval requirements. However, it is revolving financing more like a credit card. Typically have better interest rates that credit cards. They work well for those who qualify for traditional term loans but want revolving credit rather than a term loan.
Get to Know Our Hybrid Credit Line Program to Fund Your Business
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.
What is the Best Way to Fund Your Business?
If you know what types of business financing is available to your business, you can make a more educated decision about what will work best for you. Knowing what’s out there is only half the battle. You also have to understand your own eligibility and funding needs.
Takeaways
All businesses need funding. Traditional term loans are not the only option. Other options exist to help you money faster. Or funding despite bad credit. And you can better rates and terms than you would get with a traditional term loan. Contact us today to learn more.
The post Fund Your Business Today appeared first on Credit Suite.
6 Ways to Fund Your Startup When You Can’t Get a Government Business Loan
Those who died in military service did so for our freedom. Part of that freedom is the ability to open a business. In fact, you can even get a government business loan to do so. However, that option will not work for everyone. How can you fund a startup when you can’t get a government business loan?
Discover Other Ways to Fund a Business When a Government Business Loan Isn’t An Option
First, you may not qualify. They typically require good credit and some sort of collateral. Likewise, even if you do qualify, a government business loan may not be enough. What are the other options?
1.The Credit Line Hybrid
The Credit Line Hybrid is a funding option that may offer an even better interest rate than a government business loan. Yet, you get the money faster and easier also. Furthermore, you don’t have to supply any bank statements or check stubs. You can get funding in a few days rather than weeks, without supplying any collateral or documents.
It is revolving, unsecured financing that allows you to fund your business without putting up collateral, and you only pay back what you use.
How to Qualify for the Credit Line Hybrid
Your personal credit score should be at least 680. In addition, you can’t have any liens, judgments, bankruptcies or late payments. Furthermore, in the past 6 months, you should have less than 6 credit inquiries. Also, you should have less than a 45% balance on all business and personal credit cards. You need to have at least two credit cards with limits of $2,000 or more and at least a year and a half of good payment history as well.
Yet, if you do not meet all of the requirements, you can still get this funding. You can take on a credit partner that meets each of these requirements. Many business owners work with a friend or relative to fund their business. If a relative or a friend meets all of these requirements, they can pair with you to allow you to tap into their credit to access funding.
Learn business loan secrets and get money for your business.
How Much Funding Can You Get?
Generally, approval is up to 5x that of the highest credit limit on your personal credit report. Sometimes, you can get interest rates as low as 0% for the first few months, allowing you to put that savings back into your business.
The process is pretty fast, especially with a qualified expert to walk you through it. Another benefit is, with the approval for multiple credit cards, there is competition. This makes it easier, and even likely if you handle the credit responsibly, that you can get interest rates lowered and limits raised every few months.
2. Retirement Account Financing
This Credit Suite program offers a flexible and powerful way for a startup to leverage assets that are in a 401(k) plan or IRA. It even has the blessing of the IRS. In fact, they have their own name for it. It’s called a Rollover for Business Startups (ROBS).
How to Qualify for Retirement Account Financing?
No financials have to be submitted, and you do not need good credit. In fact, all the lender will ask for is a copy of your two most recent 401(k) statements.
If the plan has a value of more than $35,000, you can get approval. This is true even if you have really bad personal credit. You can get however much of your 401(k) is “rollable.” Sometimes, you can secure a low-interest credit line or loan for 100% of your current 401(k) value.
The plan you use cannot be from a business where you currently work. It will have to be from previous employment. Also, you can’t still be contributing to it.
The cost is 5.25% (prime +2) and the term is 5 years. There is a $1,995 lender fee rolled in as well, which includes 5 years of management and consulting.
3. Line of Credit
The difference between a traditional loan and a traditional business line of credit is that the line of credit is revolving credit rather than a term loan. Like a credit card, you only pay back what you use. Also, lines of credit typically have lower interest rates than business credit cards. The trade off is, there are no rewards like cash back or air miles.
Learn business loan secrets and get money for your business.
At Credit Suite, our funding partners offer an unsecured line of credit that has a minimum FICO score requirement of 600. You also must show business tax returns with net profits over $20,000 if you have been in business between 6 months and a year. If you have been in business for over a year, you need to show $10,000 in monthly revenue. These requirements are much easier to meet than those typically set forth by lenders.
Terms are 6 to 18 months and interest rates range from 12% to 25%. You can get up to $250,000.
4. Alternative Lenders
There are a number of non-bank lenders that will lend to startups. You do have to be careful, as there are a lot of predatory lenders out there. They also tend to have higher interest rates. However, they aren’t all bad. Here are a few decent options for startup loans if a government business loan isn’t available.
BlueVine
BlueVine requires that you be in business for at least 6 months. If you have at least $120,000 in annual revenue, you may qualify for a loan from them. The minimum credit score for a line of credit from BlueVine is 600. Furthermore, if you want invoice factoring, you can get approval with a score as low as 530, 3 months in business, and $10,000 in monthly revenue.
Kiva
Kiva is different. First, the interest rate is 0%. As a result, even though you have to pay it back, a loan from them is free money. There is no credit check at all. However, you have to get at least 5 family members or friends to donate to help fund your business as well. In addition, you have to pitch in a $25 loan to another business on the platform yourself.
Accion
Accion also may also be a good fit if a government business loan isn’t happening. It’s a nonprofit that offers microloans. The minimum credit score is 575. You don’t have to already be in business, but if you are not, you must have less than $500 in past due debt. In addition, your business needs to be home or incubator based.
Remember, details such as interest rates and loan requirements can change, so be sure to check lenders directly for the most up to date information.
5.Crowdfunding
This option for startup funding is growing in popularity. With crowdfunding, you get a lot of smaller investments from a lot of people, or a crowd if you will. It is different from getting the bulk of your small business funding from one or two larger investors.
First, you have to figure out which crowdfunding platform is best for your situation. Kickstarter and Indiegogo are two of the most popular. Be sure to take note of the rules each platform has for when you gain access to funds. They can vary greatly.
Learn business loan secrets and get money for your business.
6.Angel Investors
These are investors that are typically less formal than regular investors. An angel investor can be anyone. For example, it could be a family member or someone you met through networking.
The best way to find an angel investor is to ask people you know. Another option is an angel investors website or network. For example, Gust keeps a database of investors, companies, and programs.
Wait! Don’t Apply for Any Funding Before Your Read This
As you work on starting your business, you need to think about building business credit so that you can get the funding you need as your business grows. Unlike your personal credit score, you have to initially work to establish your business credit score. The best way to do this is to work with a business credit expert from the beginning. The process is not hard, but if you don’t know what you are doing, it can be difficult to navigate. A business credit expert can help you start off on the right food, and guide you through the process in the right order. This will save time and money, ensuring you build a strong business credit profile from the start. See for yourself with a free consultation.
The post 6 Ways to Fund Your Startup When You Can’t Get a Government Business Loan appeared first on Credit Suite.
Can I Use a 401K Loan To Fund a Business?
You can use a 401K loan to fund a business. But, just because you can doesn’t mean you should. It appears to be a fabulous option. Your payments will just be going back into your account, and any interest will be paid to yourself. In reality, it is a good idea, until you realize there is an even better way.
Should You Take Out a 401K Loan For Business Purposes?
When it comes to using a retirement plan to fund a business, a 401K loan isn’t the only option. Technically a distribution could work too, but that’s not wise. More about that later. There is actually another option that many do not know about.
Unlock the Mystery of the 401K for Working Capital Program
It’s not so much of a mystery as it is widely unknown. This Credit Suite program offers a flexible and powerful way for a new or existing business or franchise to leverage assets that are in a 401(k) plan or IRA. These are assets which are tied up in stocks.
It doesn’t take long either. In as little as 3 weeks you can actually invest a portion of these funds into your own business. Then, you not only have more control over the performance of your retirement plan assets, but you also have the working capital you need.
This type of program even has the blessing of the IRS. In fact, they have their own name for it. It’s called a Rollover for Business Startups (ROBS).
Will it Cause More Tax Issues Than a 401K Loan?
No it will not. According to the IRS, a ROBS qualified plan is a separate entity. It has its own set of requirements. The plan technically owns the business, not the individual. That means some filing exceptions for individuals might not apply to the plan. That said, always check with a tax expert when it comes to tax matters.
Find out why so many companies use our proven methods to get business loans.
Do You Qualify for a ROBS?
Surprisingly, this type of financing is pretty easy to get. You do not have to submit financials or have good credit to get approval. In fact, all the lender will ask for is a copy of your two most recent 401(k) statements.
If the plan has a value of more than $35,000, you can get approval. This is true even if you have really bad personal credit. You can get however much of your 401(k) is “rollable.” Sometimes, you can secure a low-interest credit line or loan for 100% of your current 401(k) value.
The plan you use cannot be from a business where you currently work. It will have to be from previous employment. Also, you can’t still be contributing to it.
Benefits of a ROBS
The benefits of this option are many. First, you can get 24-hour pre approval. Also, you pay no penalties for the rollover. Plus, you pay no application fees.
You can get approval even with bad credit, and the time from application to funding is 3 weeks or less. A big bonus is this type of funding will report to the business credit reporting agencies. That means you build business credit!
How Does it Work?
It sounds kind of crazy but it works. Credit Suite business credit experts will help every step of the way. First, we’ll help you set up a 401(k) plan in your company. Then, you’ll invest your 401(k) funds in it. Your business then has cash, but no debt. Despite how complicated it sounds, It’s all super easy and fast on your end. We handle the hard stuff.
Also, with our program, you will get more than just the financing. You will work with a CPA that will help you roll over a non-contributing and qualifying account. By doing this, you can cash out half, or $50,000, whichever is lower.
If applicable, they will also structure a self-directing IRA for the rest of the fund. You will get 5 years of management and consulting services for your business.
The Question of Terms
The cost is 1% and the term is 5 years. There is a $4995 lender fee. Remember, this includes 5 years worth of management and consulting.
Find out why so many companies use our proven methods to get business loans.
Why Can’t I Just Take a Distribution to Fund My Business with My Retirement?
Unless you are 59 ½ years old, there is an early withdrawal penalty of 10%. If you think about it, you would be paying a lot to use your own money. Don’t do that.
ROBS vs. a 401K Loan?
First of all, not all plans allow for loans. If your plan does, the IRS will only let you borrow up to 50%, up to $50,000, before you have to start paying taxes.
Also, you would be paying interest. That isn’t terrible, as you are paying interest to yourself. However, you will be making monthly payments, whereas with the 401K Rollover for Working Capital, there is no payment.
This is a unique program. It allows you to tap into your existing retirement account without penalties or taxable distributions. You also avoid loans, banks, or credit checks. There is no debt and no monthly payment.
What if You Need More Than You Can Get with This Type of Financing?
Whether you decide on a 401K loan or you go the ROBS route, you may find you still need more. It’s not uncommon to need other funding options to bridge the gaps between how much is available from your 401(k) and how much you actually need.
One great option that compliments 401K financing well is the Credit Line Hybrid. You can get up to $150,000 in unsecured business financing. Similar to a 401K loan and the 401K for Working Capital program, you do not have to turn in a lot of documents. In fact, this is considered “no-doc” financing.
You do need to have a 680 or above credit score. However, if you do not meet this or other requirements, you can take on a credit partner that does. Many business owners piggy back off the good credit of a friend or family member until they improve their own.
What makes this an especially good compliment to 401K financing, is that it also reports to the business credit reporting agencies. This just speeds up the rate at which you build your business credit score.
Business Credit Score
Even though neither a 401K loan or the 401K for Working Capital Program require good credit, it’s important to understand this one thing. The 401(k) for Working Capital Program does help you build a strong business credit score. It isn’t easy to find accounts that report your business credit report.
Credit Suite works with business owners every day that are struggling with this. Most account holders do not make it clear whether they do this or not. We work with those that we know do, and this program is one of the easiest ways to get another account reporting.
Find out why so many companies use our proven methods to get business loans.
Do not underestimate this benefit of the 401(k) financing program and the Credit Line Hybrid. It is something that should be considered when making a financing decision. Your business credit report can make a difference in whether you are able to get funding from another source in the future.
Funding a Business With a 401K Loan
If your retirement fund allows for loans, and you have enough available in your account, then the answer is yes. You absolutely can. However, there is another, better option, for using your retirement account to fund your business. Contact Credit Suite today to get started.
The post Can I Use a 401K Loan To Fund a Business? appeared first on Credit Suite.
How to Fund a Startup Business No Matter What
What do you need to know about how to fund a startup business? First, there is more than one way to do it! It’s true. Regardless of what is happening around you, in most cases you can fund a startup business in some way. It may very well take longer depending on your exact situation, but it is almost always possible.
You Can Fund a Startup Business No Matter What is Going On
The thing is, virtually everyone assumes if they cannot get a business loan, they can’t fund a startup business. That really isn’t true. There are all kinds of options for funding. Loans are only one of them. Furthermore, there are probably many more types of loans than you think. We put together a list of some of the most common, and less common, ways to fund a startup business in any situation.
Fund a Startup Business: Traditional Loans
These are the loans that you go to the bank to get. With a traditional loan, you are almost always going to have to give a personal guarantee. This means they will check your personal credit. If it’s not great, you are probably out of luck. That is where a lot of people stop, thinking they have hit a brick wall.
There are ways over that wall however.
Check out our best webinar with its trustworthy list of seven vendors to help you build business credit.
Fund a Startup Business: SBA Loans
SBA loans are traditional bank loans. However, they have a guarantee from the federal government. The Small Business Administration works with lenders to offer small businesses funding solutions that they may not be able to get based on their own credit history. Because of the government guarantee, lenders are able to be a little less strict on personal credit score requirements.
The trade-off is that the application progress is lengthy. There is a ton of paperwork connected with SBA loans.
Fund a Startup Business: Private Loans
Private business loans come from companies other than banks. These companies are sometimes called alternative lenders. Many have popped up in the past decade as entrepreneurship has become more common. The need for a financing option from somewhere other than traditional banks has spurred this growth.
There are a few benefits to using private business loans over traditional loans. The first is that they often have more flexible credit score minimums. They still rely on your personal credit. Yet, they will often accept a score much lower than what traditional lenders require. Another benefit is that they will sometimes report to the business credit reporting agencies. That helps build or improve business credit.
The tradeoff is that private business loans typically have higher interest rates and less favorable terms. Still, the ability to get funding and the potential increase in business credit score can make it well worth the cost.
Examples of Private Lenders
The thing about private lenders is, you almost always have a time in business requirement. However, it can be as low as one year, even 6 months in some cases.
BlueVine
The minimum loan amount available from BlueVine is $5,000 and the maximum is $100,000. Annual revenue must be $120,000 or more and the borrower must be in business for at least 6 months. Personal credit score has to be at least 600. It is also important to know that BlueVine does not offer a line of credit in all states.
OnDeck
With OnDeck, applying for financing is quick and easy. Apply online, and you will receive your decision once application processing is complete. Loan funds will go directly to your bank account. The minimum loan amount is $5,000 and the maximum is $500,000.
There is a personal credit score requirement of 600 or more. Also, you must be in business for at least one year. There is an annual revenue requirement of at least $100,000 as well. In addition, there can be no bankruptcy on file in the past 2 years and no unresolved liens or judgements.
Fund a Startup Business: Crowdfunding
Crowdfunding sites allow you to pitch your business to thousands of micro investors. Anyone who wants a piece of the action can buy in.
Investors pledge amounts ranging from as low as $5 to as high as they want. They may give $5, $80, $150, or even over $500. As a general rule, they can give as much or as little as they want.
Though not always necessary, most business owners offer rewards for investment. Typically, this comes in the form of the product the business will be selling. Different levels of giving result in different rewards. For example, a $50 gift may get you product A, while a $100 gift will get you an upgraded version of product A.
The two most common crowdfunding platforms are Indiegogo and Kickstarter.
Check out our best webinar with its trustworthy list of seven vendors to help you build business credit.
Fund a Startup Business: Angel Investors
These investors are usually only in for a one-time deal. Many choose to spread their risk out over many people and many businesses to be certain they get a safe return on their investment.
Angels tend to be a lot more informal than most types of funding. They can be people you know. Or they can be people you connect with through networking or other means.
Angels are not covered by the Securities Exchange Commission’s (SEC) standards for accredited investors. But a lot of them are accredited investors anyway.
To become an accredited investor, an person has to have a minimal net worth of $1 million, and an annual income of $200,000.
There are a number of angels who aren’t millionaires. They could be friends or colleagues with home equity, or local professionals who are looking to invest.
How Do You Find Angel Investors?
The best way to find these kinds of investors is to ask. You can also try an angel investors website or network. Try Gust, which used to be called Angel Soft. They keep a database of investors, companies, and programs. Startups can also search for business plan competitions and more.
Another option is to look at the biggest angel investor groups. Be aware, however, that these meetings are really only going to happen if you can get an introduction.
According to Entrepreneur, in order from smallest to largest the top 10 Angel Investor groups are:
- New York Angels Inc.
- Alliance of Angels (Seattle)
- Pasadena Angels
- Hyde Park Angel Network (Chicago)
- Band of Angels (Menlo Park, CA)
- North Coast Angel Fund (Cleveland)
- Golden Seeds LLC (NYC)
- Investors’ Circle (San Francisco)
- Tech Coast Angels (Los Angeles) and
- Ohio Tech Angel Funds (Columbus, OH)
Focus and requirements may vary from group to group. For example, some concentrate on local startups only. Do your research so you don’t waste yours and the angels’ time if it isn’t a good fit.
Fund a Startup Business While Keeping Your Day Job
Here’s an option that most don’t want to hear, but it is totally legitimate and sometimes, it’s just the best way. If you do not have access to a ton of funds to launch a huge new business right away, consider keeping your day job and start your business small, as a side hustle.
Not every business can start this way, but a lot can. For example, a bakery or a cleaning business can easily start this way. If you set up from the beginning to be fundable and build business credit, you can go even further. More on that later.
Fund a Startup Business: The Retirement Years
This is similar to keeping your day job in that you start small. If you have retirement savings you could use that as loan security, or take a loan directly from retirement if your plan allows for that. You can build your business slowly, a little at the time. While you’re doing so, you can work to build business credit and overall fundability
Whatever You Do, Build Fundability from the Beginning
So, how do you do that? How do you build fundability and business credit? The first thing you do is set up your business to be fundable. When you do this, you will also be setting it up to be a separate entity from you as the owner, which is the first step in building separate business credit. How do you build a fundable foundation? You need the following.
Contact Information Separate from the Owner
The first step in setting up a foundation of fundability is to ensure your business has its own phone number, fax number, and address. That doesn’t mean you have to get a separate phone line, or even a separate location. You can still run your business from your home or on your computer if that is what you want. You don’t even have to have a fax machine.
An EIN
The next thing you need to do is get an EIN for your business. This is an identifying number for your business that works in a way similar to how your SSN works for you personally.
Incorporate
You have to incorporate as an LLC, S-corp, or corporation. It gives credit to your business as one that is legitimate, and it separates your business from you as the owner.
Which option you choose does not matter as much for fundability as it does for your specific budget and liability protection need. The best thing to do is discuss it with your attorney or a tax professional. You are going to lose the time in business that you have. When you incorporate, you become a new entity. Basically, you have to start over. You’ll also lose any positive payment history you may have.
This is why you have to incorporate as soon as possible. Not only is it vital to fundability and for building business credit, but time in business is also important. The longer you have been in business the more fundable you appear to be. That starts on the date of incorporation, regardless of when you actually started doing business.
Separate Business Bank Account
You have to open a separate, dedicated business bank account. There are a few reasons for this. First, it will help you keep track of business finances. It will also help you keep them separate from personal finances for tax purposes.
In addition, you cannot get a merchant account without a business account at a bank. That means, you cannot take credit card payments. Studies show consumers tend to spend more when they can pay by credit card.
Licenses
For a business to be legitimate it has to have all of the necessary licenses it needs to run. If it doesn’t, red flags are going to fly up all over the place. Do the research you need to do to ensure you have all of the licenses necessary to legitimately run your business at the federal, state, and local levels.
Website
These days, you do not exist if you do not have a website. However, a poorly put together website can be even worse. It’s the first impression you make on most, and if it appears to be unprofessional it will not bode well for you with lenders or customers.
Fund a Startup: Build Business Credit
Okay so, you need to know how to fund a startup, not how to set it up, right? Here’s the thing. Once you have your business set up like this, you can start building business credit so that you have more options for funding your business.
The main key to this is to use starter vendors that will issue net terms on your invoices and report those payments to the business credit reporting agencies. Even if you are keeping your day job or starting small during retirement, you can use these vendors for the things you need in the everyday course of business.
Things like office supplies, packaging, and even cleaning supplies can be purchased from such vendors on account using your business information. As you get enough of these accounts reporting, you can apply for store credit, then fleet credit, and eventually, regular business credit cards that are not limited to specific types of purchases or specific stores. Then, your business credit should be strong enough that you can qualify for a loan and launch your business on a bigger scale.
Check out our best webinar with its trustworthy list of seven vendors to help you build business credit.
Fund a Startup Business: There are More Ways than One
The truth is, there is more than one way to fund a startup business. Depending on your specific situation, you will have to decide which option or combination of options will work best for you and your business.
The post How to Fund a Startup Business No Matter What appeared first on Credit Suite.
Fund your Business with Crowdfunding During a Financial Recession
Financial Recession Got You Down? Then Fund Your Business with Crowdfunding
There are thousands of businesses using crowdfunding to raise money to fund their next business venture. For some entrepreneurs, crowdfunding is the ticket to financial independence. Starting a new business without adding debt or taking out equity, can be unheard of for startups. But with a little planning and creative marketing, starting a new business can be more enjoyable than disappointing. Yes, you can fund your business with crowdfunding, even during a financial recession.
Financial Recession Period Funding
The number of American financial institutions and thrifts has been decreasing slowly for a quarter of a century. This is from consolidation in the market along with deregulation in the 1990s, minimizing obstacles to interstate banking. See: https://www.fundera.com/blog/happened-americas-small-businesses-financial-crisis-six-years-start-crisis-look-back-10-charts
Assets concentrated in ever‐larger financial institutions is troublesome for local business proprietors. Big banks are a lot less likely to make small loans. Economic recessions imply banks become more careful with financing. The good news is, business credit does not count on financial institutions.
Beating the Financial Recession: What’s Crowdfunding All About?
Crowdfunding gives today’s business owner a new way to build a successful business. Don’t be fooled. Not everyone with a campaign on a crowdfunding site becomes an automatic millionaire! Success on crowdfunding doesn’t happen overnight. In fact, being an instant success on a crowdfunding site doesn’t usually happen. To succeed at crowdfunding, do your due diligence. And see if you would be successful at crowdfunding.
Beating the Financial Recession: What’s a Good Crowdfunding Platform?
Find which crowdfunding platform is best to use for your business. Kickstarter and Indiegogo are two of the most popular crowdfunding platforms to use. If you’re like most new business owners, you’re looking for investors. Before you start putting your campaign out there, make sure that you have everything ready and perfect. This way, you can get the investors that you want to fund your campaign.
Beating the Financial Recession: How Do You Get Creative With Crowdfunding?
Trying to get the investors you want will take time. You need to brainstorm, create, and perfect the right pitch that gets investors pouring money into your campaign. To help you get your campaign started in the right direction, use this quick guide.
Getting the Best Crowdfunding Platform For Your Needs
Pick a Crowdfunding Platform. Before you get started with your campaign, pick a crowdfunding platform that’s the right fit for you. There are several crowdfunding platforms to choose from. Kickstarter and Indiegogo are two to start looking into.
And you need to be aware of what you are doing when you’re developing your campaign. If you’re raising rewards and not investments, then Kickstarter and Indiegogo should be on your list.
Kickstarter is great to use for creative projects, but it’s all or none. This means that if you don’t raise 100% of your initial funding goal, then you don’t keep the pledged money. Indiegogo is a little different from Kickstarter. If you choose to pay up to 9% of your funds raised, then you can keep the funds pledged to your campaign. The only drawback is that your project will need some minimum funding to work.
GoFundMe is another choice; they let you keep the money even if you don’t meet your goal.
Beating the Financial Recession: Crowdfunding Pitches
Prepare and Get your Pitch Perfect. Remember that the content in your campaign is vying for the attention of your potential investor and client. There are so many other distractions that pull for the attention of your viewers. For this reason, your pitch and its messaging has to grab their attention immediately. Once you get their attention, you can’t stop there. You’ll want to keep your viewers engaged, which means that you need to have a great story to tell about yourself or your project.
Pitch Videos
Your pitch video will need to be good. Use a professional to film it and develop the script. Unable to afford professionals? Then try schools, both pupils and instructors.
Your script doesn’t need to be word for word but you must have points you want to make and not babble. Create a script and stay with it. This is not the right time to wing it.
Show the Evidence
If you have physical evidence of your project, then make sure to show it in your campaign video and on your campaign web page. This means an image of your spa’s sign or a short video recording of your prototype robot.
Address Skepticism
A great deal of people don’t trust crowdfunding. A photo and a tangible thing will go a long way to demonstrating to them that your project isn’t vaporware.
Good Manners Matter
Say please, thank you, and you’re welcome to everyone. Use these magic words in your pitch and in your interactions with your donors. And use them in the cover letters you deliver with your perks (even virtual perks can include a cover e-mail). You don’t need to grovel, but you must be polite.
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.
Don’t Be Greedy!
If you need $250,000 for your campaign, but you ask for $1,000,000, that does not do anyone any good.
You’ll just seem like you want to bum off others’ generosity. As an alternative, explain your overhead as transparently as possible. Because if you misuse your funds, you may find yourself in an unpleasant meeting with your state’s attorney general. So be truthful!
Beating the Financial Recession: Crowdfunding and Focusing on Your Investors
Focus On What You’re Giving to Your Investors. One of your goals in crowdfunding is to raise funding. But you need to focus on your investors. You want to create rewards or terms that will help you raise the money that you want. When developing the rewards for investors and backers, have your rewards tie back into your story.
One way to come up with a great reward for your campaign is to check out the most successful campaigns which raised the most money.
Donor Strategy
Line up the most significant and most reliable donors you can before you start. Tell your mother to postpone handing over her donation till you launch your campaign.
And ask them (nicely!) to release their money at a very specific time. Which time? The first or final day of the campaign. Separate the expected funding as well as you can. If the split isn’t around half and half, then ask for more to come on the final day of the campaign. Make the most of the novelty factor of the very first day of the campaign, or the urgency factor of the very last.
It’s like a busker with a few of her own dollars in her hat. To motivate people to donate, you want your biggest donors to show other donors that they believe in you and your project. It helps if they tell other donors that they’d best get in on investing in your company before the opportunity ends.
Beating the Financial Recession: Crowdfunding Supporter Engagement
Get Supporter Engagement. Don’t make the common mistake of not engaging the people in your network of friends, family, and supporters. When creating a campaign, be ready to start funding once you launch everything. It’s especially important if you are using equity crowdfunding. Supporter engagement is vital. Because these people are your stakeholders, advisors, board members, partners, and existing investors.
Courtesy Counts
Be gracious if your campaign fails. Even with GoFundMe (where you can keep the money even if you fall short), you still may not get enough to make a significant dent in your funding needs. If you wanted $100,000 and you only got $500, your best option may be to give back the cash.
If you almost got there with $95,000, then thank everybody who donated. See what you can do, although there’s a deficiency. And tell them what you are doing! Perhaps you’ll buy your building next year, or hire four people as opposed to five.
Once more, give your donors a stake in and an inside look at your startup. This will help them to feel invested. And they may decide to make up the shortfall themselves. Just because your crowdfunding campaign ends doesn’t mean a donor can’t send a check or buy more goods or services. If that comes about, then politeness is crucial.
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.
Beating the Financial Recession: Finding Influencers
Get to know Notable Investors. Get the attention of people who have never heard of your project before. One of your main goals should be to get people, organizations, and businesses that are familiar with you involved with your campaign. And ask them to spread the word. This sort of networking can only help you.
Social Media
Share your campaign on social networks and ask your friends and family to do so, too. Tweet the link. Add it as a Facebook status. Turn it into a Tumblr blog post or a snap on Snapchat or publish a blog post about it. Ask your network to distribute the link. The best technique to get your network to help you out is by assisting them in return. If your nephew’s band is on Facebook, share their page, or tweet about it.
Be a cooperative member of your own personal community. Then your online community will be more likely to help you out when you ask. And rerun these social media posts. Consider time zones and our all-too busy lives. People might not see your message the first time around. Mix it up and send it at irregular hours. Use scheduling software such as HootSuite for this. This includes what is the middle of the night where you live.
Beating the Financial Recession: Crowdfunding Strategy
Plan your Marketing and Outreach Strategy. You will need to put hours into creatively marketing your campaign before it launches. Successful campaign owners spend hours developing a plan that will market their campaign. And they have a defined goal that raises funding efforts both online and offline.
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.
Stretch Goals
Your stretch goals should be a mix of easy to get and pie in the sky. If you are crowdfunding for $100,000, a pretty easy to meet stretch goal is $125,000.
Pie in the sky will be more like $300,000. Make it clear what you will do with any added cash if you are fortunate enough to get it. Will you buy the property your startup is in? Hire five more people? Replace your worn out equipment? Open a brand-new market on some other continent? Let your donors know what you are striving for, so they can dream with you.
Beating the Financial Recession: Takeaways
Starting a new business venture doesn’t have to be restrictive or stressful. This is especially when you know how to use crowdfunding and its various platforms. Crowdfunding can be another way to fund your business or a new project without having to pay for upfront marketing costs. And you get to keep your equity!
As a business owner, you should always look for ways to grow your business. And by using crowdfunding you can provide your business with new avenues to get funding.
The post Fund your Business with Crowdfunding During a Financial Recession appeared first on Credit Suite.
Fund the Flip of Your Dreams with Lending One
If you are a real estate investor, then you need to know about Lending One. It is a direct real estate investing lender that has been around since 2014. They are newer, but they are quickly establishing themselves in the industry. Here is what you need to know to get a jump on deciding whether they are right for you, or not.
The company began as Crestar Funding, but changed its name in November 2016 to LendingOne. In the press release, they say that they realize the potential for this company was much larger than they originally thought.
Is Lending One a Good Option for You?
Bill Green (CEO) and Matthew Neisser (COO) joined forces in 2014 to open a private real estate lending company. The mission? To use technology to streamline and speed up the process of borrowing for real estate investment.
With Green’s skill and expertise in creating world class organizations and Neisser’s background in technology and finance, it did just that. As a result, we have the Lending One of today.. It provides a faster and easier way to apply for and receive approval for loans. Furthermore, it allows borrowers to more easily grow their real estate portfolios.
They make loans to citizens of the United States, Canadian citizens, and permanent resident aliens.
Check out our trustworthy list of seven vendors to help you build business credit. Conquer any recession!
What Types of Loans Do They Offer?
There are a range of options when it comes to loans with Lending One. They include:
Fix-and-Flip
For example, if your real estate game is to purchase homes to rehab and then sell for profit, then fix-and-flip loans are for you. Amazingly, rate quotes are available online in as little as 2 minutes.
They will loan up to 80% of the cost of the project, or LTC (Loan to Cost.) The minimum loan amount is $75,000. They do not list a maximum. Also, there is no interest charged on unused funds, and there is no penalty for early repayments. The minimum FICO required for a Fix-and-Flip loan is not noted on the website. They state only:
“We are much more flexible in the FICO score we accept and are happy to work with each client’s individual situations.”
Additionally, you will need to have the following documents on hand.
- Sales contract
- One month’s bank statement
- Construction budget
- List of properties currently owned
- 2 years tax returns
- LLC operating agreement, or Articles of Incorporation
Remember to send copies. Never send originals.
Rental Loans
Now, if your business is more “fix it up and rent it out” based, you will be more interested in the rental loans. With these, there are two options. The first, RentalOne, and then the Apartment Bridge loans.
Check out our trustworthy list of seven vendors to help you build business credit. Conquer any recession!
RentalOne
This option is available on either a 5 or 7-year ARM (adjustable rate mortgage.) Or, if you would rather, as a 30-year fixed loan. Loan amounts go up to $2 million.
The FICO requirement for the RentalOne loan is flexible, same as with the Fix and Flip loans. However, these requirements change without warning. The truth is, you really do not know until you try. You do not have to turn over income verification, not even a W-2. Instead, they consider the cash flow of the property itself in the decision-making process. It appears, however, that there is a prepayment penalty on this one.
Multifamily Bridge Loans
These are available for buildings with 5 to 200 rental units. There is no interest on funds that are not drawn, and the terms range from 12 to 36 months. The loan amount is up to $15 million.
There is a minimum FICO requirement of 650, but closing is super-fast, sometimes in as little as 20 business days.
New Construction Loans
Another product they offer is new construction loans. Amounts range up to $5 million. These loans are available in terms ranging from 12 to 24 months with fast approval. Eligible properties include single family, townhomes, condos, and multi-family buildings.
Rehab to Rent
If you want to rehab a home to rent for profit, you can do that as well. Here is how it works. First, you apply for a Fix-and-Flip loan. Then, when the rehab is complete, they will roll it into a 30-year fixed rental loan. As a bonus, since you are already a customer with the Fix-and-Flip, you will get a discount on the fees toward your rental loan.
Lending One Pre-Approval
There is an easy, fast pre-approval process, and it’s free. You can have your terms and rates in writing before you ever submit an offer. Honestly, the proof of funds provided with pre-approval makes submitting an offer easier than ever. Pre-approvals are available for amounts up to $5,000,000.
Lending One Partner Program
The company also offers a partner program. It’s a community of investors, realtors, real estate attorneys, and third parties. Potential partners have the opportunity through the program to earn compensation in exchange for client referrals. Interest parties are invited and encouraged to participate.
The following options exist:
- The Referral Partner Program is for real estate investors, real estate attorneys, and other third partners that want to refer business to Lending One.
- The Broker Partner Program is for mortgage brokers or loan origination consultants that wish to refer business.
- Finally, the corporate partner program is designed for businesses that provide goods or services to those that invest in real estate not occupied by the owner.
Partner consultants contact potential partners within 24 hours of application to the program.
Making Payments on Your Lending One Loan
They have a contract with FCI Lender Services. This company services and accepts payment for loans. Borrowers get a welcome package with directions directly from FCI about 2 to 3 weeks after the loan closes. Payments are made via ACH, and are due on the first of the month.
Lending One and the Better Business Bureau
It never hurts to seek out what type of online reputation a company has. Online reviews are huge these days. For this company we found the following.
The Better Business Bureau
As it turns out, not only do they have an A+ rating with the Better Business Bureau, but they are actually accredited since February 2017.
In that whole time, there has only been one complaint. The company addressed it and it was solved. There are only 3 reviews, and unfortunately the most recent one is negative. However, it is from someone who was in the middle of the loan process and the process was put on hold due to the COVID-19 pandemic. This is an extreme circumstance, of course.
Check out our trustworthy list of seven vendors to help you build business credit. Conquer any recession!
Benefits of Using Lending One
They use proprietary technology that allows them to streamline the underwriting process. As a result, application processing is much faster. Along with pre-approval and good reviews from previous customers, they sound like superstars. Yet, nothing’s perfect, right?
The Downside of Using Lending One
The main drawback is, they are a young company. Of course, that will not always be the case. One can only hope they will continue the positive path they are on and continue to work to get rid of any bugs.
Another negative is that you would not be able to get enough money for larger projects due to the maximum loan amounts offered. With a max of $2 million for rehab and $5 million for new construction, commercial jobs are pretty much out the window. Lending One would not be an option for those looking to do commercial flips or flips on more expensive homes in higher income areas.
A Quick Review of Real Estate Investing
If you happen to be newer to the world of real estate investing, you may want to consider these tips before you go much further.
Formally Incorporate
Many real estate investment lenders will not lend to individuals. Form a legal business so that you have the best options available when it comes to funding. This is just one of many lenders that will only lend to companies. An S-corp, LLC, or corporation will work.
Tell the Truth
In real estate, there is even more importance placed on doing honest business. If you cut corners when working on a rehab, or if you are a bad landlord, word will get out. This will not only cause problems when you try to sell or rent in the future, but it can detour future funding efforts as well.
Location Matters
This is especially true in relation to flipping homes. A fabulous home in a terrible location is probably not going to yield a significant enough profit.
Watch the Markets
Pay attention to what is selling and where. Take note of trends in what people are willing to pay for, as well as what they are not. This will help you figure out how to best use your funds.
A Word About Credit
This lender is more flexible than many lenders when it comes to credit. However, they make it very clear credit history still counts. Consider these tips to raise your credit score if you need to.
- First, make sure you have separate business credit. This includes getting and using an EIN, and incorporating, which as noted above is something that needs to be done anyway. Also, you need to have separate contact information for your business and a dedicated business bank account.
- Next, get copies of all your credit reports.
- Look first at what is affecting your score in a negative way. Then you will know where to focus your efforts.
- After that, review the report for mistakes.
- Report mistakes to the issuing agency, in writing.
- Only send copies of backup documentation, not originals.
- Monitor your personal and business credit score continually using a credit monitoring service. This will help you stay on top of things. You can monitor your credit with both Dun and Bradstreet and Experian through Credit Suite for 90% less than it would cost you at the business credit reporting agencies. You can monitor your credit with Equifax through them directly.
Of course, none of this really matters if you are not making your payments on time. Make sure you are doing that regardless. Nothing helps a credit score like consistent, on time payments.
Is Lending One for You?
In the end, Lending One isn’t a bad option. It does have higher interest rates and lower maximum loan amounts than some. However, they are also more lenient with their credit score requirements. That means if you are not able to get the funding you need somewhere else, they could be just what you need. They have a good reputation and offer a variety of loan options.
As with any decision on a lender, do you own research. Things change frequently, and the COVID-19 pandemic changed a lot of things. You’ll want to double check details such as loan amounts and interest rates. It seems though, despite being a young company, Lending One is doing pretty well, not only for themselves, but for their customers as well.
Are There Other Options? 
If you want financing for commercial flips, CreditSuite might be a better option. Financing ranges up to 20,000,000 which is much more suited to that type of project.
Loan-to-values range from 55-65%. Which one you can get depends on the purpose of the loan. Funding programs are available that include conventional property financing, money for investment properties and hard money loans, bridge loans, and loans for the purchase of commercial real estate. SBA loans are also an option. For renovation, you can get a loan-to-value of up to 60%. They have many other loan programs as well, including some for residential flips.
In the end, you just need to find which option will work best for you. Lending One is definitely one to consider. I’d even give them four out of five stars. But don’t stop there. Be sure to explore all your options.
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