Do Nothing till You Check Out Our Pearl Financing Recession Funding Review

Check Out Our Pearl Financing Recession Funding Review and Look at Pearl Capital Business Financing

Pearl Financing is a lender in the online space. However, there are two similarly-named players. This blog post will cover both: Pearl Capital Business Financing and Pearl Financing. So it’s more than just a Pearl Financing recession funding review.

Recession Period Financing

The number of United States financial institutions and also thrifts has been decreasing slowly for 25 years. This is from consolidation in the marketplace in addition to deregulation in the 1990s, lowering barriers to interstate banking. See: fundera.com/blog/happened-americas-small-businesses-financial-crisis-six-years-start-crisis-look-back-10-charts. Assets focused in ever‐larger financial institutions is troublesome for small business owners. Big financial institutions are a lot less likely to make small loans. Economic declines imply banks end up being much more mindful with financing. Luckily, business credit does not count on financial institutions.

Pearl Financing Recession Funding Review

Pearl Financing is a lending company in the online space. They provide various loans and forms of financing to businesses.

Pearl Financing currently only handles real estate funding.

Pearl Financing Recession Funding Review: Background

Pearl Financing is located online here: www.pearlfinancing.com.

Their physical address is:

11010 Lake Grove Blvd
Suite 100 PMB 119
Morrisville, NC 27560.

You can also call them at: (866) 865-0121. Their contact page is here: www.pearlfinancing.com/contact-us. Also, you can email them at: info@pearlfinancing.com.

Pearl Financing Recession Funding Review: Bridge Loans and Hard Money

Pearl Financing partners with private investment firms for this typical form of real estate financing. There are no fees listed on their website for this form of funding.

Pearl Financing Recession Funding Review: Commercial Real Estate Financing

Pearl Financing offers several forms of financing. These include SBA 7(a) loans, CMBS Conduit loans, HUD, equity, and conventional loans. There are no fees listed on their website for these forms of funding.

Pearl Financing Recession Funding Review: CMBS Conduit Loans

This is a type of commercial real estate loan secured by a first position mortgage on a commercial property. These loans are packaged and sold by conduit lenders, commercial banks, investment banks, or syndicates of banks.

Terms are five, seven, or ten years. 25 – 30 year amortization. 75% loan to value/80% with Mezzanine Loan Combo. Rates are fixed but otherwise not specified.

Pearl Financing Recession Funding Review: Mezzanine Financing

This is a hybrid of debt and equity financing. It gives the lender the right to convert to an equity interest in the company in case of default. This is often after venture capital companies and other senior lenders are paid. There are no fees listed on their website for this form of funding.

Pearl Financing Recession Funding Review: Advantages

Advantages include a variety of choices for real estate funding. House flippers will do well to work with a specialist, which is what Pearl Financing brings to the table.

Pearl Financing Recession Funding Review: Disadvantages

So the chief disadvantage is no listing of fees anywhere, not even a range. This lack of transparency should be troubling to any entrepreneur. In addition, the company needs to distinguish themselves better from a similar company with a nearly identical name. As a result, borrowers can easily end up on the wrong site.

Pearl Capital Business Funding

Pearl Capital Business Financing is a lending company in the online space. So it is evidently unrelated to Pearl Financing.

They work with Independent Sales Organizations (ISOs) and merchants only. This online lender helps ISOs find more merchants to sign on with credit card payments or create merchant cash advances. There is no listing for their fees on their website.

Background

Pearl Capital Business Financing is located online here: https://pearlcapital.com. Their physical address is in New York, NY. You can also call them at: (800) 888-9959.

A Fantastic Alternative to Both – Building Business Credit

Company credit is credit in a company’s name. It doesn’t link to a business owner’s consumer credit, not even if the owner is a sole proprietor and the sole employee of the business.

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

The Benefits

Considering that business credit is independent from consumer, it helps to safeguard an entrepreneur’s personal assets, in case of court action or business insolvency.

Also, with two distinct credit scores, an entrepreneur can get two separate cards from the same vendor. This effectively doubles buying power.

Another benefit is that even startup companies can do this. Visiting a bank for a business loan can be a recipe for disappointment. But building small business credit, when done the right way, is a plan for success.

Individual credit scores depend upon payments but also various other considerations like credit use percentages.

But for business credit, the scores really just hinge on if a business pays its bills punctually.

The Process

Building business credit is a process, and it does not occur automatically. A small business has to proactively work to build business credit.

Nevertheless, it can be done readily and quickly, and it is much more rapid than developing personal credit scores.

Vendors are a big part of this process.

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

Learn business loan secrets with our free, sure-fire guide. We can help you get money, even during a recession.

Small Business Fundability

A business has to be fundable to lenders and merchants.

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

And also, company telephone and fax numbers must have a listing on ListYourself.net.

Likewise, the company telephone number should be toll-free (800 exchange or the equivalent).

A company will also need a bank account dedicated purely to it, and it has to have every one of the licenses necessary for operation.

Licenses

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

So keep in mind, that this means not just state licenses, but potentially also city licenses.

Working with the IRS

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

A business can begin as a sole proprietor. But they will probably want to change to a sort of corporation or an LLC.

This is in order to limit risk. And it will make the most of tax benefits.

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

Sole Proprietors Take Note

If you run a business as a sole proprietor, then at the very 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 small business name. Because of this, you can wind up being personally responsible for all small business financial obligations.

And also, according to the IRS, using this structure there is a 1 in 7 possibility of an IRS audit. There is a 1 in 50 probability for corporations! Steer clear of confusion and significantly lower the chances of an IRS audit at the same time.

Kicking Off the Business Credit Reporting Process

Start at the D&B website and obtain a free D-U-N-S number. A D-U-N-S number is how D&B gets a company 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 web sites for the small business. You can do this at 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.

By doing so, Experian and Equifax will have something to report on.

Learn business loan secrets with our free, sure-fire guide. We can help you get money, even during a recession.

Vendor Credit

First you should establish trade lines that report. This is also called 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 start to get retail and cash credit.

These types of accounts often tend to be for the things bought all the time, like marketing materials, 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 starter credit when you have none now. Terms are typically Net 30, instead of revolving.

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

Details

Net 30 accounts must be paid in full within 30 days. 60 accounts must be paid in full within 60 days. In contrast to with revolving accounts, you have a set time when you have to pay back what you borrowed or the credit you used.

To begin your business credit profile properly, you should get approval for vendor accounts that report to the business credit reporting agencies. As soon as that’s done, you can then use the credit.

Then pay back 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 merchants that will grant an approval with marginal 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 like Office Depot and Staples.

Only use your Social Security Number and date of birth on these applications for verification purposes. For credit checks and guarantees, use the business’s EIN on these credit applications.

Fleet Credit

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

Cash Credit

Have you been sensibly managing the credit you’ve gotten up to this point? Then move to more universal cash credit. These are businesses like Visa and MasterCard. Only use your SSN 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 feasible.

Monitor Your Business Credit

Know what is happening with your credit. Make certain it is being reported and take care of any mistakes ASAP. Get in the practice of taking a look at credit reports. Dig into the particulars, 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.

Learn business loan secrets with our free, sure-fire guide. We can help you get money, even during a recession.

Update Your Information

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

Fix Your Business Credit

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

Disputes

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

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

A Word about Building Business Credit

Always use credit responsibly! Don’t borrow beyond what you can pay off. Track balances and deadlines for repayments. Paying on schedule and completely will do more to raise business credit scores than pretty much anything else.

Building small business credit pays. Great business credit scores help a company get loans. Your credit issuer knows the small business can pay its financial obligations. They know the company is for real.

The small business’s EIN links to high scores and lenders won’t feel the need to demand a personal guarantee.

Business credit is an asset which can help your small business for years to come.

Pearl Financing Recession Funding Review: Takeaways

The businesses which will do the best with Pearl Financing are going to be the ones with high financing needs but the companies themselves are currently not very large. Therefore, these are companies which are expected to grow quickly and meteorically. However, companies which need less funding have other options. Such businesses should make sure to compare offerings closely.

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 a degree of care.

Only you can decide if this option will be good for you and your company. In addition, consider alternative financing options that go beyond lending. These include building business credit, in order to best decide how to get the money you need to help your business grow. Business credit building is useful as it becomes a company asset.

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

The post Do Nothing till You Check Out Our Pearl Financing Recession Funding Review appeared first on Credit Suite.

Get the Skinny with Our Behalf Recession Funding Review

What Can Behalf Recession Funding Do for Your Business?

Behalf is an online lending company, among several other lending companies online. They offer purchase financing, and also have a virtual MasterCard in order to facilitate financing your purchases. We look at the specifics and drill down into the details of Behalf recession funding.

As of 8/24/2020 Behalf no longer reports. For more information on how to find accounts that report give us a call at 877-600-2487.

Behalf Recession Funding: Background

Behalf is located online here: https://www.behalf.com/.

Their physical address is:

126 5th Avenue

New York, New York 10011.

Behalf keeps their headquarters in New York City with offices in Tel Aviv. You can call them at: (877) 943-9962. Their contact page is here: https://www.behalf.com/help-center/. They have been in business since their founding in 2012. Behalf is backed by venture capital funds from Viola Growth, Spark Capital, Sequoia Capital, MissionOG, Victory Park, and Vintage.

Behalf Recession Funding: Purchase Financing

Behalf’s fees are based on the terms offered to customers. Their fees rise as the number of days to pay rise, with an apparent cap at 3%. This lender offers products to both merchants and their business customers. For business customers, you select the amount to finance, the amount of time to pay it back, and whether you will pay on a monthly or a weekly basis.

Since the end of 2017, all funding from Behalf is through FinWise, a Utah-chartered bank which is located in Sandy, Utah.

This online lender will make a hard inquiry on your personal credit when you first apply for financing.

There is a maximum line size of $50,000. It can extend this in instant purchase capacity to any business customer. Their minimum transaction size is $300. Plus there is no upper limit on individual purchase transactions.

Behalf Recession Funding: Fees

Monthly fees start at 1%, and there is a fixed monthly rate. There are no origination fees and no maintenance fees. You can save 10% on finance fees by choosing a weekly plan.

Behalf Recession Funding: Advantages

Advantages to online lender Behalf include a fixed monthly rate to make your budgeting easier. In addition, there is a discounted rate option if you select weekly payments.

Behalf Recession Funding: Disadvantages

Disadvantages include higher fees if you give your clients longer payment terms. As a result, your company will be penalized for providing better payment terms to your customers.

An Alternative to Behalf Recession Funding – Building Business Credit

Small business credit is credit in a company’s name. It doesn’t connect to an owner’s personal credit, not even when the owner is a sole proprietor and the sole employee of the business.

As a result, a business owner’s business and personal credit scores can be very different.

The Benefits

Due to the fact that small business credit is separate from consumer, it helps to safeguard an entrepreneur’s personal assets, in the event of court action or business insolvency.

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

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

Consumer credit scores rely on payments but also various other considerations like credit utilization percentages.

But for business credit, the scores truly only depend on whether a company pays its invoices in a timely manner.

Hit the jackpot with our best webinar and its trustworthy list of seven vendors who can help you build business credit.

The Process

Growing company credit is a process, and it does not occur automatically. A small business needs to proactively work to build company credit.

Having said that, it can be done easily and quickly, and it is much quicker than establishing personal credit scores.

Merchants are a big part of this process.

Undertaking 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 rejection 100% of the time.

Company Fundability

A business has to be fundable to credit issuers and vendors.

Due to this fact, a small business will need a professional-looking website and email address. And it needs to have site hosting bought from a vendor like GoDaddy.

In addition, business phone and fax numbers should have a listing on ListYourself.net.

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

A business will also need a bank account devoted purely to it, and it has to have all of the licenses essential for running.

Licenses

These licenses all must be in the particular, appropriate name of the small business. And they need to have the same small business address and telephone numbers.

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

Working with the Internal Revenue Service

Visit the Internal Revenue Service website and acquire an EIN for the small business. They’re totally free. Select a business entity such as corporation, LLC, etc.

A company can begin as a sole proprietor. But they will probably wish to change to a form of corporation or an LLC.

This is in order to limit risk. And it will maximize tax benefits.

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

Sole Proprietors Take Note

If you operate 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 business name. Therefore, you can find yourself being directly accountable for all small business financial obligations.

Also, according to the Internal Revenue Service, using this arrangement there is a 1 in 7 possibility of an IRS audit. There is a 1 in 50 possibility for corporations! Prevent confusion and noticeably lower the chances of an Internal Revenue Service audit as well.

But keep in mind, any DBA filing should just be a steppingstone to incorporating.

Starting Off the Business Credit Reporting Process

Start at the D&B website and get a totally free D-U-N-S number. A D-U-N-S number is how D&B gets a company into 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 company. You can do this at 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.

By doing so, Experian and Equifax will have something to report on.

Vendor Credit

First you need to establish trade lines that report. This is also known 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 even more credit.

These sorts of accounts tend 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 initial credit when you have none now. Terms are frequently Net 30, instead of revolving.

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

Hit the jackpot with our best webinar and its trustworthy list of seven vendors who can help you build business credit.

Details

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

To kick off your business credit profile properly, you should get approval for vendor accounts that report to the business credit reporting agencies. Once that’s done, you can then use the credit.

Then pay back 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 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.

You want 3 of these to move onto the next step, which is retail credit. But you may need to apply more than one time to these vendors. So, this is to confirm you are dependable and will pay punctually.

Retail Credit

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

Only use your Social Security Number and date of birth on these applications for verification purposes. For credit checks and guarantees, use the business’s EIN on these credit applications.

Fleet Credit

Are there more accounts reporting? Then move onto fleet credit. These are companies like BP and Conoco. Use this credit to buy fuel, and to repair, and take care of vehicles. Just use your Social Security Number and date of birth on these applications for verification purposes. For credit checks and guarantees, make certain to apply using the business’s EIN.

Cash Credit

Have you been sensibly managing the credit you’ve up to this point? Then move to more universal cash credit. These are companies such as 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.

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 deal with any errors ASAP. Get in the practice of checking credit reports and digging into the details, and not just the scores.

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

At Equifax, you can monitor your account at: www.equifax.com/business/business-credit-monitor-small-business.

Update Your Records

Update the data if there are errors or the relevant 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 contest any errors in your records. Mistakes in your credit report(s) can be fixed. But the CRAs typically want you to dispute in a particular way.

Get your company’s PAYDEX report at: www.dnb.com/about-us/our-data.html. Get your company’s Experian report at: www.businesscreditfacts.com/pdp.aspx?pg=SearchForm. And get your Equifax business credit report at: www.equifax.com/business/credit-information.

Disputes

Disputing credit report mistakes commonly means you send a paper letter with duplicates of any evidence of payment with it. These are documents like receipts and cancelled checks. Never send the originals. Always send copies and keep the originals.

Fixing credit report inaccuracies also means you specifically itemize any charges you dispute. Make your dispute letter as understandable as possible. Be specific about the concerns with your report. Use certified mail so that you will have proof that you sent in your dispute.

Dispute your or your small business’s Equifax report by following the instructions here: www.equifax.com/small-business-faqs/#Dispute-FAQs.

You can dispute mistakes on your or your small business’s Experian report by following the instructions here: www.experian.com/small-business/business-credit-information.jsp.

And D&B’s PAYDEX Customer Service telephone number is here: www.dandb.com/glossary/paydex.

A Word about Building Business Credit

Always use credit sensibly! Don’t borrow more than what you can pay back. Keep track of balances and deadlines for payments. Paying off in a timely manner and completely will do more to increase business credit scores than nearly anything else.

Growing company credit pays off. Great business credit scores help a business get loans. Your credit issuer knows the business can pay its debts. They understand the company is bona fide.

The company’s EIN attaches to high scores and lending institutions won’t feel the need to require a personal guarantee.

Business credit is an asset which can help your company for many years to come. Learn more here and get started toward building company credit.

Hit the jackpot with our best webinar and its trustworthy list of seven vendors who can help you build business credit.

Behalf Recession Funding: Upshot

For companies just starting out, allowing for longer payment terms for customers can help to convert one-time customers into regulars. Because Behalf effectively penalizes a company for providing longer terms, this is a strike against using them if your company is a startup trying to build a reputation with your clients.

However, for a not so new company which can readily make payments, the discounted weekly payment plan (and rate) could be an attractive option, although companies with regular revenue and enough time in business tend to qualify for more traditional financing, including loans from the Small Business Administration.

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 a fine-toothed comb, and decide whether this option will be good for you and your company. In addition, consider alternative financing options that go beyond lending, including building business credit, in order to best decide how to get the money you need to help your business grow.

Maybe you won’t need Behalf recession funding after all.

The post Get the Skinny with Our Behalf Recession Funding Review appeared first on Credit Suite.

Can You Get Kabbage Business Funding in a Recession?

Is There Any Kabbage Business Funding in a Recession?

Kabbage is one of several lending companies online. It provides small business funding in the form of loans and lines of credit. We look at the specifics and drill down into the details about the online lending option.

Kabbage Business Funding in a Recession: Background

Kabbage is located online here: https://www.kabbage.com/. Their physical address is:

925B Peachtree Street NE

Suite 1688

Atlanta, GA 30309.

You can call them here: (888) 986-8263. You can email them at: support@kabbage.com. Their contact page is here: https://www.kabbage.com/support/contact/. They have been in business since 2009, which is longer than most of the players in this space.

Kabbage is one of several lending companies online. It provides small business funding in the form of a line of credit.

Kabbage is a venture funded company. They are backed by investors which include SoftBank Capital, Thomvest Ventures, Reverence Capital Partners, Mohr Davidow Ventures, the UPS Strategic Enterprise Fund, ING, BlueRun Ventures, Santander InnoVentures, Scotiabank, and TCW/Craton.

The company offers perks for its customers. These include specials from Dun & Bradstreet, UPS, Vonage, and Adobe Creative Cloud. See: https://www.kabbage.com/customer-perks/.

Loans and Lines of Credit

First, they offer lines of credit. This means it is revolving credit you can use as needed. For most, amounts of up to $250,000 are available. You can qualify in as little as 10 minutes. Furthermore, terms are 6, 12, or 18 months. You have to be in business for more than one year, and your business revenue has to be $50,000 annually or $4200 per month over the last 3 months.

Kabbage Review: Credit Reporting and Score Requirements

In the course of this Kabbage review, I could not find anything concrete about a credit score requirement or credit reporting. I did find other reviewers that had contradicting information. For example, one claimed there was no minimum interest rate requirement. In contrast, another claimed that the minimum interest rate for application approval is 500. Another put the minimum at 560. Whatever the case, it appears that their minimum required credit score is much lower than others in the field. In addition, one reviewer stated that they do not report on-time payments to the credit agencies, but they may report late or missed payments.

The only thing concrete I could find from Kabbage themselves is that they do a one-time hard credit pull. A hard credit check will affect your credit score. Also I found this information in the FAQs on the Kabbage website. It wasn’t just out there on a top page.

Kabbage Review: Approval and Receipt of Funds

Kabbage links to your bank or merchant accounts to understand your cash flow and decide what amount you can afford to borrow. Their lines of credit range from $1,000 to $250,000.

For lines of credit up to $200,000, if they are able to automatically get business information and verify your bank account, they can approve a loan in minutes. Amounts over $200,000 must have a manual review. Sometimes, mistakes happen during the sign-up process. Also, they may send small deposits to help confirm your banking information for security purposes. In these cases, it may take longer to get access to funds.

Once everything is settled, they send funds to the account of your choice. If you choose to have your funds deposited to a PayPal account, it takes just a few minutes. However, loans that go to a business checking account can take up to three days to be deposited. It just depends on your bank.

They retain access to your account. This means they can review your revenue faster than other lenders. Still, it also means they have access to your account for the duration and beyond unless you take action.

If you make a draw using the dashboard or app, you have to take a minimum of $500. In contrast, if you use your Kabbage card there is no minimum draw.

Kabbage Business Funding in a Recession: Advantages

Advantages include fairly low fees. Kabbage perks are a nice touch not found with other online lenders.

Kabbage Business Funding in a Recession: Disadvantages

Disadvantages include how hard it is to find the actual, correct requirements to qualify for their loans.

Demolish your funding problems with our rock-solid guide about 27 killer ways to get cash for your business. You might turn out to not need Kabbage business funding in a recession.

A Viable Alternative to Kabbage Business Funding in a Recession – Building Business Credit

This is credit in a small business’s name. It doesn’t link to an entrepreneur’s consumer credit, not even if the owner is a sole proprietor and the only employee of the small business.

Thus, an entrepreneur’s business and consumer credit scores can be very different.

The Benefits

Due to the fact that small business credit is separate from individual, it helps to secure a small business owner’s personal assets, in the event of litigation or business bankruptcy.

Also, with two separate credit scores, a business owner can get two different cards from the same vendor. This effectively doubles buying power.

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

Consumer credit scores depend upon payments but also additional factors like credit usage percentages.

But for small business credit, the scores actually merely hinge on if a company pays its bills timely.

The Process

Establishing business credit is a process, and it does not occur without effort. A business must proactively work to establish business credit.

Nonetheless, it can be done readily and quickly, and it is much quicker than establishing consumer credit scores.

Vendors are a big aspect of this process.

Doing the steps out of sequence will cause repetitive denials. No one can start at the top with company credit. For example, you can’t start with retail or cash credit from your bank. If you do, you’ll get a denial 100% of the time.

Business Fundability

A small business must be fundable to loan providers and merchants.

That’s why, a company will need a professional-looking website and email address. And it needs to have site hosting bought from a supplier such as GoDaddy.

In addition, business phone and fax numbers should have a listing on ListYourself.net.

At the same time, the company phone number should be toll-free (800 exchange or comparable).

A business will also need a bank account devoted purely to it, and it must have every one of the licenses essential for running.

Licenses

These licenses all must be in the accurate, appropriate name of the company. And they must have the same company address and telephone numbers.

So bear in mind, that this means not just state licenses, but potentially also city licenses.

Demolish your funding problems with our rock-solid guide about 27 killer ways to get cash for your business. You might turn out to not need Kabbage business funding in a recession.

Working with the IRS

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

A business can begin as a sole proprietor. But they will more than likely want to change to a variety of corporation or an LLC.

This is in order to limit risk. And it will make the most of tax benefits.

A business entity will matter when it involves taxes and liability in case of a lawsuit. A sole proprietorship means the entrepreneur is it when it comes to liability and taxes. No one else is responsible.

Sole Proprietors Take Note

If you operate a company 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 small business name. Hence, you can wind up being directly accountable for all small business financial obligations.

Additionally, per the IRS, with this structure there is a 1 in 7 possibility of an IRS audit. There is a 1 in 50 possibility for corporations! Steer clear of confusion and substantially reduce the odds of an IRS audit simultaneously.

Starting the Business Credit Reporting Process

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

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

Vendor Credit

First you must establish 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 kinds of accounts tend to be for the things bought all the time, like marketing materials, shipping boxes, outdoor work wear, ink and toner, and office furniture.

But first of all, what is trade credit? These trade lines are credit issuers who will give you initial credit when you have none now. Terms are often Net 30, rather than revolving.

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

Demolish your funding problems with our rock-solid guide about 27 killer ways to get cash for your business. You might turn out to not need Kabbage business funding in a recession.

Details

Net 30 accounts have to be paid in full within 30 days. 60 accounts must be paid in full within 60 days. In comparison with revolving accounts, you have a set time when you must pay back what you borrowed or the credit you used.

To launch your business credit profile the right way, you need to get approval for vendor accounts that report to the business credit reporting agencies. Once 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.

Vendor Credit – It Makes Sense

Not every vendor can help in the same way true starter credit can. These are merchants that will grant an approval with very little 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 to retail credit. These are businesses 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 move to fleet credit. These are service providers such as BP and Conoco. Use this credit to buy fuel, and to repair and take care of vehicles. Only use your Social Security Number and date of birth on these applications for verification purposes. For credit checks and guarantees, make certain to apply using the small business’s EIN.

Cash Credit

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

These are normally MasterCard credit cards. If you have more trade accounts reporting, then these are in reach.

Monitor Your Business Credit

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

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

Update Your Record

Update the relevant information if there are mistakes or the data 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 mistakes in your records. Mistakes in your credit report(s) can be corrected. But the CRAs typically want you to dispute in a particular way.

Disputes

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

Fixing credit report inaccuracies also means you precisely spell out 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 Business Credit Building

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

Building small business credit pays off. Excellent business credit scores help a company get loans. Your loan provider knows the small business can pay its debts. They know the small business is for real.

The small business’s EIN attaches to high scores and lenders won’t feel the need to request a personal guarantee.

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

Kabbage Business Funding in a Recession: Upshot

Companies which will do best with this particular lender are already somewhat successful. Most businesses would be able to take advantage of the perks which Kabbage offers. However, smaller companies which are less successful would do well to look elsewhere. In particular, for a company looking for a lower end line of credit would more likely be better served getting a microloan.

So while you can probably get Kabbage business funding in a recession, there are other options out there.

The post Can You Get Kabbage Business Funding in a Recession? appeared first on Credit Suite.

Get Better Financing with Funding Circle Reviews

Looking for Funding Circle reviews? We took a look at this alternative lender to see if the information we had on them is still true. Welcome to Funding Circle reviews.

Funding Circle is one of several lending companies in the online space. They have loaned over $11.7 billion, with over 4.9 million loans under management. They work as a peer to peer lender.

In the US, Funding Circle leads the Marketplace Lending Association, along with LendingClub, Prosper, and Sofi.

Funding Circle Reviews: Background

Funding Circle is online here: www.fundingcircle.com/us/. Their physical addresses are in San Francisco, Denver, London, and Berlin. You can call them here: (855) 385-5356. Their contact page is here: www.fundingcircle.com/us/about/contact/. They have been in business since 2010.

Funding Circle Reviews: Their Borrower’s Bill of Rights

Funding Circle has a business borrowers’ Bill of Rights, here: www.fundingcircle.com/us/business-borrower-bill-of-rights/

It says:

The Right to Transparent Pricing and Terms

You have a right to see the cost and terms of any financing you are offered in writing and in a form that is clear, complete, and easy to compare with other options, so that you can make the best decision for your business.

The Right to Non-Abusive Products

You have a right to loan products that will not trap you in expensive cycles of re-borrowing. Lenders’ profitability should come from your success, not from your failure to repay the loan according to its original terms.

Borrower’s Bill of Rights Continued

The Right to Responsible Underwriting

You have a right to work with lenders who will set you up for success, not failure. High loss rates should not be accepted by lenders simply as a cost of business to be passed on to you in the form of high rates or fees.

The Right to Inclusive Credit Access

You have a right to fair and equal treatment when seeking a loan.

The Right to Fair Collection Practices

If you are unable to repay a loan, you have a right to be treated fairly and respectfully throughout the collections process. Collections on defaulted loans should not be used by lenders as a primary source of repayment.

Funding Circle Reviews: SBA 7(a) Loans

At Funding Circle, you can borrow anywhere from $20,000 to $5 million from the SBA. Loan terms run for up to 10 years. Pay an interest rate of prime +2.75%. as of the writing of this blog post, that is 6%.

There are no prepayment penalties.

Fees

Funding Circle will charge a one-time origination fee on each loan they fund. This amount ranges from 3.49% to 6.99% of the approved loan amount.

Funding Circle Reviews: Qualifying for an SBA 7(a) Loan with Funding Circle

Small businesses which meet the below criteria are eligible to apply for an SBA 7(a) loan:

In business for more than 3 years
At least $500,000 in annual revenue
No federal tax liens
680 FICO for personal Guarantor
Positive book value (assets > liabilities)

Qualified Industries

Because these are SBA loans, Funding Circle must conform to the SBA’s requirements when it comes to industries. Therefore, they cannot lend to these industries:

Speculative real estate
Nonprofit organizations
Weapons manufacturers
Gambling businesses
Marijuana dispensaries
Pornography

Funding Circle Reviews: COVID-19 Relief

As a part of working with the Small Business Administration, Funding Circle offers their COVID-19 relief, in the form of the Paycheck Protection Program.

What frustrates you the most about funding your business during a recession? Check out how our guide can help.

Funding Circle Reviews: More Information

Apply online, and a personal account manager will reach out to you within one hour. They will ask about your business and request and collect documentation. They will decide on your loan in as little as 24 hours.

If you accept a loan offer, you can get funding in as little as one business day. You can return for more funding in as little as six months.

If your monthly payment is more than 10 days late, they may charge a late fee of up to 5% of each missed payment amount. The late fee will be payable immediately and is in addition to the missed payment.

They will place your loan into default if you miss three or more consecutive payments, four out of six monthly payments or do not comply with your loan agreement.

Funding Circle Reviews: Advantages

So the advantages include no prepayment penalty. There are also relatively fast decisions and funding. In addition, the Borrowers’ Bill of Rights is encouraging. The maximum rates you could pay are within reason.

Funding Circle Reviews: Disadvantages

So what are Funding Circle’s disadvantages? It should be obvious: fees, fees, and more fees. They are for origination, missing payments, and also for insufficient funds.

An Alternative to Funding Circle

Of course one great alternative to Funding Circle is to build business credit. But how do you do that? Fortunately, we have the method right here. And we’re more than happy to let you in on the secret.

Corporate credit is credit in a small business’s name. It doesn’t connect to a business owner’s personal credit, not even if the owner is a sole proprietor and the only employee of the business. Accordingly, an entrepreneur’s business and personal credit scores can be quite different.

The Advantages

Because small business credit is separate from individual, it helps to protect a small business owner’s personal assets, in the event of legal action or business insolvency. Also, with two separate credit scores, an entrepreneur can get two different cards from the same vendor. This effectively doubles buying power.

Another benefit is that even startups can do this. Visiting a bank for a business loan can be a formula for disappointment. But building business credit, when done the right way, is a plan for success.

Individual credit scores rely on payments but also other components like credit usage percentages. But for company credit, the scores actually only hinge on whether a company pays its bills in a timely manner.

The Process

Growing small business credit is a process, and it does not happen automatically. A corporation must proactively work to establish corporate credit. Having said that, it can be accomplished readily and quickly, and it is much more efficient than establishing individual credit scores. Merchants are a big part of this process.

Performing the steps out of order will cause repetitive denials. No one can start at the top with company credit. For instance, you can’t start with store or cash credit from your bank. If you do, you’ll get a denial 100% of the time.

Company Fundability

A business needs to be fundable to loan providers and vendors. For this reason, a business will need a professional-looking website and e-mail address, with website hosting bought from a supplier like GoDaddy. And company phone and fax numbers need to have a listing on ListYourself.net.

In addition the business telephone number should be toll-free (800 exchange or the like).

A corporation will also need a bank account devoted strictly to it, and it must have all of the licenses necessary for running. These licenses all must be in the specific, correct name of the company, with the same company address and telephone numbers. Bear in mind that this means not just state licenses, but possibly also city licenses.

What frustrates you the most about funding your business during a recession? Check out how our guide can help.

Working with the Internal Revenue Service

Visit the IRS website and acquire an EIN for the small business. They’re totally free. Choose a business entity such as corporation, LLC, etc. A business can start off as a sole proprietor but will probably want to change to a kind of corporation or partnership to decrease risk and maximize tax benefits.

A business entity will matter when it concerns tax obligations and liability in the event of litigation. A sole proprietorship means the entrepreneur is it when it comes to liability and 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 corporate name. Hence, you can find yourself being personally responsible for all small business debts.

In addition, per the Internal Revenue Service, with this structure there is a 1 in 7 possibility of an IRS audit. There is a 1 in 50 possibility for corporations! Avoid confusion and significantly decrease the odds of an IRS audit at the same time.

Note: any DBA filing should be a steppingstone to incorporating, which is best for building business credit.

Starting Off the Business Credit Reporting Process

Begin at the D&B web site and obtain a free D-U-N-S number. A D-U-N-S number is how D&B gets a 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 corporation. You can do this at https://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. By doing this, Experian and Equifax will have activity to report on.

Trade Lines

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

And with an established business credit profile and score you can begin getting revolving store and cash credit.

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

But first of all, what is trade credit? These trade lines are creditors who will give you initial credit when you have none now. Terms are often Net 30, versus 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, such as within 30 days on a Net 30 account.

Details

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

To launch your business credit profile properly, you need to get approval for vendor accounts that report to the business credit reporting agencies. Once 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 like true starter credit can. These are vendors that will grant an approval with minimal effort. You also need 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 revolving store credit.

Accounts That Don’t Report

Non-Reporting trade accounts can also be helpful. While you do want trade accounts to report to at least one of the CRAs, a trade account which does not report can yet be of some worth. You can always ask non-reporting accounts for trade references. And credit accounts of any sort ought to help you to better even out business expenses, thus making financial planning simpler. These are providers like PayPal Credit, T-Mobile, and Best Buy.

Revolving Store Credit

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

Use the business’s EIN on these credit applications.

Fleet Credit

Are there more accounts reporting? Then move to fleet credit. These are companies such as BP and Conoco. Use this credit to buy fuel, and to repair and maintain vehicles. Make certain to apply using the small business’s EIN.

Cash Credit

Have you been sensibly managing the credit you’ve up to this point? Then move onto more universal cash credit. These tend to be MasterCard credit cards. Keep your SSN off these applications; use your EIN instead.

If you have more trade accounts reporting, then these are in reach.

What frustrates you the most about funding your business during a recession? Check out how our guide can help.

Monitor Your Business Credit

Know what is happening with your credit. Make sure it is being reported and deal with any mistakes ASAP. Get in the habit of checking credit reports and digging into the specifics, and not just the scores.

We can help you monitor business credit at Experian and D&B for 90% less. Update the relevant information if there are errors or the data is incomplete.

Disputing Errors

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

Disputing credit report errors typically means you send a paper letter with copies 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 spell out any charges you contest. Make your dispute letter as clear as possible. Be specific about the issues with your report. Use certified mail so that you will have proof that you sent in your dispute.

A Word about Building Business Credit

Always use credit smartly! Never borrow beyond what you can pay off. Track balances and deadlines for repayments. Paying off punctually and in full will do more to elevate business credit scores than almost anything else.

Growing business credit pays off. Excellent business credit scores help a business get loans. Your creditor knows the business can pay its financial obligations. They recognize the small business is for real. The small business’s EIN attaches to high scores, and creditors won’t feel the need to require a personal guarantee.

Business credit is an asset which can help your small business for years to come.

Funding Circle Reviews: Takeaways

Fees are high at Funding Circle, but at least they’re being transparent about them. Plus, there is no prepayment penalty – but there are late fees. Hence Funding Circle is best for companies which do not need to borrow much and can pay it all back not only on time, but early. Borrowers which need more time to pay a loan back would probably do better elsewhere.

Finally, read the fine print and do the math. Therefore, go over details carefully. And decide if this option will be good for you and your company. In addition, consider alternative financing options beyond lending. This includes building business credit, to best get the money you need. Funding Circle reviews should be just the beginning.

The post Get Better Financing with Funding Circle Reviews appeared first on Credit Suite.

10 Crowdfunding Platforms for Recession Funding, Part 1

Not All Crowdfunding Platforms for Recession Funding Are Alike

Are crowdfunding platforms for recession funding confusing you? Are you thinking of crowdfunding your business? There are several platforms out there with differing requirements. And they are not even close!

Getting working capital to grow your business doesn’t have to be hard. Many companies these days turn to crowdfunding. A lot of these options

will work for startup ventures.

There Are No Guarantees, Even with Crowdfunding Success

For some companies which crowdfund, the rewards are great. As per the Crowdfunding Blog, the single most successful crowdfunding campaign was for the Pebble Time Smartwatch. So this was as of November of 2018. But before you run out and try to buy one, note one thing. They are now a part of FitBit.

As in, they went out of business in July of 2018. So this is a business which raised over $20 million in 2015! That is no typo. And in point of fact, Pebble holds three of the top six spots in the biggest crowdfunding successes of all time. Together, these three crowdfunding campaigns raked in a staggering $43.39 million.

This is about $8 million more than the town of Huntington, New York (population 203,264) budgeted for highways in 2018. Yes, really.

So there is one thing that should be clear to all. Runaway crowdfunding success is no guarantee whatsoever of actual success.

But now it is time to get to the 10 crowdfunding platforms for recession funding that you should know about.

What frustrates you the most about funding your business? Tell us in the comments.

Quick Tips About Crowdfunding: How Much?

Your very first decision should be: just how much do I need to crowdfund? If you need $1 million, you are going to need to crowdfund more than that. Why? Because that is how crowdfunding platforms for recession funding make their money– they take a percentage of any money you can raise. Thus, you will need to take that into consideration. Crowdfunding percent charges vary from 4% to 10%.

Quick Tips About Crowdfunding : What Should I Offer for Perks?

Check with the crowdfunding platforms for recession funding which interest you the most – just in case they don’t allow perks.

But for many crowdfunding platforms for recession funding, yes, you will have to offer perks to your donors. Perks can take many forms– buttons, tees, book marks – every one of those are possible tangible perks. Consider a perk format which can sync with your business. If you sell homemade jam, then perhaps create a unique flavor just for the campaign, and offer bigger and bigger-sized jars depending on donation amount.

If you are a horseback riding stable, offer a complimentary lesson or a postcard with a favorite horse’s image on it, or something like that. Does your startup flip houses? Then consider offering a coupon to a neighborhood home supply company or the like. Be sure to work with them beforehand, of course.

Perks are only limited by your imagination, so be creative! And if you can offer something which people will use a lot, then so much the better.

What frustrates you the most about funding your business? Tell us in the comments.

Pro Tip on Perks

Physical perks are a massive pain! A lot of people love them, and they will stand out. Plus, if a perk is used regularly, it will help to keep your company at the top of your backers’ minds.

However, you also have to ship physical perks. You may be an American company, but that doesn’t mean all of your backers will be in the United States. International shipping is extremely expensive, even for small items. So if you offer physical perks, specify whether you will allow international donor addresses.

But even if everything has to be shipped in the US, you are still left with working with a data base of names and addresses, and a few of these might have misprints or be incomplete.

And you would usually be working with a range of available perks. Did Jane want the stuffed teddy bear or the book mark? Did Alan want the pennant or the tee shirt? Do Jane and Alan live at the same address so perhaps you could mail their perks out together? What if a perk is lost or broken in the mail? And what if it injures someone?

Because of this, if you can do it, you might want to try for digital perks. For a house flipping startup, you might record video footage about home design or repair. For a long haul trucking company, you could offer PDFs with personal recommendations on what to see and do in certain cities you service. And for a nail salon, maybe offer digital coupons for a free month of manicure touch ups.

Great Crowdfunding Platforms for Recession Funding: 1. Kickstarter

They are the biggest crowdfunding platform. They have over 18 million backers and over 180,000 funded projects. Campaigns are for products and services such as:

Publishing
The arts and film
Comics and illustration
Design and tech

You will need to have a prototype. Projects cannot be for charity, although nonprofits can use Kickstarter. And you can’t offer equity in a company as a perk.

Taboo projects and perks include anything to do with:

Contests and raffles
Cures and medicines
Credit services
Live animals
Alcohol
Weapons

There is a 5% fee on all funds which creators collect. Stripe, their payments processor, will also apply payment processing fees (roughly 3-5%). Campaigns that don’t make it don’t pay a fee. There are also fees of 3% + $0.20 per pledge. Pledges under $10 have to pay a discounted micropledge fee of 5% + $0.05 per pledge.

Great Crowdfunding Platforms for Recession Funding: 2. Indiegogo

Indiegogo has over 9 million backers. Their minimum goal amount is $500. They charge 5% platform fees. There may be third-party credit card fees. Fees are deducted from the amount raised, not the goal. So if you exceed your goal, you will pay more in fees. They do not take PayPal.

Indiegogo is notable because they offer both fixed and flexible funding. This means, if you do not make your goal – assuming you chose flexible funding – you can at least hold onto what you collected. Hence it is the opposite of how crowdfunding normally works.

You cannot change your fundraising structure from fixed to flexible (or vice versa) once the campaign starts. They recommend fixed funding if you need a minimum amount for your project. Indiegogo recommends regular communications to donors if you choose fixed funding.

Great Crowdfunding Platforms for Recession Funding: 3. Patreon

Patreon is more for entrepreneurs in the arts space. With Patreon, fans pay your business on a monthly basis. Get more regular funding, and that’s always better for budgeting. Develop a recurring, dependable income stream while connecting directly with fans.

Pay 5% for Lite. For Patreon Pro, pay 8%. And for Patreon Premium, pay 12%.

What frustrates you the most about funding your business? Tell us in the comments.

Great Crowdfunding Platforms for Recession Funding: 4. CircleUp

CircleUp is only for businesses. Their aim is to help emerging brands and companies raise capital to grow.

CircleUp Growth Partners is CircleUp’s fund currently making direct equity investments into high growth, early stage consumer companies. To qualify, a business must have revenue of $1 – $15 million, raising $1 – $10 million in growth equity. CircleUp Growth Partners is looking for innovative brands that are creating new categories or disrupting existing categories. They want to work with entrepreneurs with a strong vision and unwavering passion for their product.

You can also get a line of credit from CircleUp.

CircleUp says (in its FAQ): “Our commission is intended to be generally consistent with what companies pay to investment bankers in the offline world for similar size fundraising rounds.”

Great Crowdfunding Platforms for Recession Funding: 5. GoFundMe

Because the name is known, we should mention GoFundMe. But it’s probably not the best choice out there.

In general, GoFundMe is for individuals. Hence you might conceivably use it at the very beginning of your starting up a business. You will need to meet your fundraising goal in order to collect. There are no specific platform fees in America. Industry-standard transaction fees apply and vary depending on the country that the campaign was created in.

GoFundMe is often for personal causes, such as people looking to cover their medical bills. Hence it may not be best for business funding. In addition, given the large numbers of people who use GoFundMe for personal expenses, be aware that a business plea might get lost in the shuffle.

What’s in Part 2 of the 10 Crowdfunding Platforms for Recession Funding You Should Know About?

In Part 2, we’ll round out our list of 10. Discover this new way to get funding for your business.

The post 10 Crowdfunding Platforms for Recession Funding, Part 1 appeared first on Credit Suite.

10 Crowdfunding Platforms for Recession Funding You Should Know About, Part 2

Check Out These 10 Crowdfunding Platforms for Recession Funding You Should Know About

These 10 crowdfunding platforms for recession funding have been catching our eye lately.

Have you been thinking of crowdfunding your business? There are several recession crowdfunding platforms out there with differing requirements. These are the recession crowdfunding platforms you should know.

Getting working capital to grow your business doesn’t have to be hard. Many companies these days turn to recession crowdfunding platforms. A lot of these options will work for startup ventures. The last 5 of our top 10 crowdfunding platforms for recession funding are a bit more obscure. But first, here are a few tips to help you with your campaign.

Quick Tips About Crowdfunding: Your Campaign

Your campaign’s success is far from guaranteed. But you can capitalize on a few proven approaches. First off, consider these four emotions that you need to engender in donors. Use one or more of them as the focal point of your campaign as a starting point.

Scarcity

If you have thousands of something or other to supply as a perk, it will not be as desirable. If you only have a few copies of a specific perk, that will instill a feeling in some potential donors that they just have to have it. Do this with your larger donation levels only. Therefore, you might want to establish a perk/donation level system similar to this:

Donation Level	Number of Perks
Lowest	1,000
Second lowest	500 (reward also incorporates lowest level reward)
Second highest	50 (reward also includes two lower level rewards)
Highest	10 (reward also incorporates all other levels’ rewards)

Remember: a lot of variety in physical perks will make fulfillment a lot harder, so don’t work with greater than maybe five separate varieties of physical perks– and even that is pushing it.

Building scarcity into your perk tiers is a great way to add perceived value to the perks which attach to your higher level donations.

Urgency

The first two and last two days of a crowdfunding campaign are pretty much always the days with the biggest payoffs. Often, making the campaign longer doesn’t make you significantly more money. So why not open a campaign for only a week? Do not let donors feel they can contribute any old time they feel like it.

Novelty

If you are offering the same old thing as a thousand other places, no one will want to make a donation. Your widget has got to be hotter, cheaper, lighter, or more resilient. Your food should be reduced in calories or higher in nutrition or better-tasting. Or your professional services need to be delivered better or quicker, by friendlier and more skilled employees. And they should come with a money back guarantee your competition does not provide.

Not sure about your own personal creativity? Then talk to creative people you know, and listen to what they say. They might have amazing ideas and it certainly never hurts to ask.

Cool factor

Is your product a work of art? Is it a new, gadget-like innovation? Then it may have a coolness aspect which you can construct your campaign around. But do not be discouraged if it isn’t! These days, some of the most unforgettable advertising campaigns are based around a product the majority of people found uninspiring not ten years ago– insurance.

So house flipping could boast a cool factor if you show off flipping in a neighborhood where a celebrity lives or once lived. A nail shop can show off coolness with exciting new designs not found anywhere else. And a long haul trucking company can showcase a cool factor with some of the more unusual products you’ve hauled.

Quick Tips About Crowdfunding: Crowdfunding Strategy

A few words on strategy:

Your Pitch Video Must be Great

Use an expert to film it and develop the script. Can’t pay for experts? Then try schools, both pupils and educators. Your script doesn’t need to be verbatim but you should have points you wish to make and not babble. Write a script and stay with it. This is not the right time to ad-lib.

If You Have Tangible Evidence of Your Project, then Show it

Put it in your campaign video and on your campaign page. A number of people are naturally doubtful about crowdfunding. An image and a tangible thing will go a long way to assuring them that your project isn’t vaporware.

Manners Matter

Say please, thank you, and you’re welcome to everyone. Use these magic words in your pitch and in your communications with your donors, even in the cover letters you deliver with your perks (even internet perks can include a cover email). You don’t need to be servile, but you absolutely must be diplomatic.

Stretch Goals Should be a Combination of Readily Achievable and Pie in the Sky

If you are crowdfunding for $100,000, a reasonably easy to attain stretch goal is $125,000. Pie in the sky going to be more like $300,000.

Make it abundantly clear what you will do with any added money if you are fortunate enough to get it. Will you buy the property your startup is in? Employ five more people? Replace your old equipment? Launch a brand-new market on another continent? Let your donors know what you are pursuing, so they can dream with you.

Be Gracious if Your Campaign Fails

You may not receive enough to make an appreciable dent in your funding requirements. So give your donors a stake in and an inside look at your business. This will enable them to feel invested. Even if your crowdfunding campaign concludes does not mean a donor cannot send a check or buy extra goods or services. If that happens, then politeness is essential.

Line up the Most Significant and Most Dependable Donors You Can Before You Start

Tell these people to postpone handing over their $1,000 or $10,000 donation till you start your campaign.

And ask them (nicely!) to release their donation during either the first or last day of the campaign.

Make the most of the novelty factor of the first day of the campaign, or the urgency factor of the very last. Just like a busker with a couple of her own bucks in her hat, to motivate people to toss in a few bucks for a song, you want your biggest donors to show other donors that they believe in you and in your project. And you also want them to suggest your other donors that they had best get in on investing in your startup before the opportunity ends.

Share Your Campaign on Social Media

And ask your family and friends to do so, too. Tweet the link. Incorporate it as a Facebook status. Make it a Tumblr post or a snap on Snapchat or create a blog post about it. Ask your network to publicize the link.

The most effective technique to get your network to help you out is by helping them in return. If your relative’s rock band is on Facebook, share their page, or tweet about it.

Be a collaborative member of your own personal network. Then your contacts will be more likely to help you out when you ask.

And rerun these social media postings. Considering time zones and our all-too hectic lives, people may not see your message the first time around. Mix it up and deliver it at odd hours. You can oftentimes use scheduling software such as Hootsuite for this. This includes what is the middle of the night where you live.

In Part 1, we covered 5 great crowdfunding sites you should have on your radar. Here are 5 more to round out 10 crowdfunding platforms for recession funding you should know about. But now we’re going a little more obscure.

More About Our Favorite 10 Crowdfunding Platforms for Recession Funding: 6. GoGetFunding

GoGetFunding has been around since 2011. It lets fundraisers keep the money they raise, whether they meet their target or not. Flexible funding can be a great option if your company is a somewhat unproven idea and you are unsure whether you will be able to meet your funding needs.

GoGetFunding charges a fee of 6.9%. This somewhat high fee includes both the platform fee and the payment processing fee. Hence this option is actually somewhat more cost-effective than many other crowdfunding options.

What frustrates you the most about funding your business? Tell us in the comments.

More About Our Favorite 10 Crowdfunding Platforms for Recession Funding: 7. Crowdfunder

Crowdfunder works as what’s called equity crowdfunding. This is where investors purchase equity in promising companies.

Crowdfunder treats its campaigns as deals, and its donors as ‘investors’. Pay a one-time fee to make your campaign discoverable.

Starter listings are $299/month. Premium listings are $499/month. Premium Plus is $999/month.

Types of business which cannot use Crowdfunder include:

Guns/Firearms
Tobacco/Cigarettes/Cannabis
Pyramid Marketing
Adult Products & Entertainment
Gambling
Contests and Raffles
Illegal Substances/Drugs

More About Our Favorite 10 Crowdfunding Platforms for Recession Funding: 8. Fundable

Fundable is a business crowdfunding platform which lets companies raise capital from investors, customers, and friends. Create an equity or a rewards-based campaign.

In their first year, they generated over $80 million in funding commitments.

Fundable allows equity campaigns.

They charge $179 per month to fundraise. Fees on rewards are: 3.5% + 30¢ per transaction. They do not charge success fees.

More About Our Favorite 10 Crowdfunding Platforms for Recession Funding: 9. AngelList

At AngelList, you can invest in a startup or even get a job at one. So it can be, essentially, an index fund for startups. Hence if a larger, established company wanted to offer retirement investment opportunities geared to investing in startup companies, AngelList would be a place where they could go.

Hence AngelList is not exactly a business crowdfunding site. Rather, it is a way to connect investors to an array of startup investment opportunities. So investors can try for returns on FinTech or even cryptocurrencies. One of their better-known investments is a business administration site called HoneyBook.

What frustrates you the most about funding your business? Tell us in the comments.

More About Our Favorite 10 Crowdfunding Platforms for Recession Funding: 10. Fundly

Not quite one of our 10 crowdfunding platforms for recession funding, Fundly does allow for crowdfunding for creative ventures. Therefore, if your business has a creative bent, you might find a home there.

Fundly imposes no minimum amount to fundraise in order to keep any raised funds. You can generally withdraw payments within 24 – 48 hours of the donation. They also allow for automatic and scheduled transfers. It is free to create and share an online fundraising campaign.

However, Fundly will deduct a 4.9% fee from each donation you get. A credit card processing fee of 3% is also taken out from each donation. Plus there are nonspecific automatic discounts for larger campaigns.

What frustrates you the most about funding your business? Tell us in the comments.

Takeaways

So for small business owners who want to crowdfund, it pays (quite literally!) to read the fine print. Large and well-known sites such as Kickstarter may get more attention from donors. This is often because they are better known. However, smaller sites on our list of 10 crowdfunding platforms for recession funding – like Fundable – might offer better rates and more personal service.

In the end, though, it is all about the funding. This is true for all of the recession crowdfunding platforms you should know. If your company can meet its goal, then any platform is going to be terrific. If your business cannot, then you will probably do better looking for another form of funding. This includes building business credit. Discover this new way to get funding for your business.

The post 10 Crowdfunding Platforms for Recession Funding You Should Know About, Part 2 appeared first on Credit Suite.

Top 10 Brilliant Ways to Find Recession Startup Funding

The COVID-19 pandemic caught the world by surprise and turned the economy on its head. If you are a business trying to stay afloat during this time, we can help. The Federal government has approved funding through The CARES Act, including the Paycheck Protection Plan. In addition, many states and local organizations are offering their own unique funding options. If you are thinking of starting a business during this time, keep reading for recession startup funding options.

It is Possible to Find Recession Startup Funding, but You Have to Get Creative

During a recession, prices go up, employment goes down, and lenders tend to hold on to funds much tighter. This can make funding a startup very difficult. The truth is, startup funding during a recession is not easy to come by. In fact, many of the traditional option will not work for the majority. Recession startup funding takes a little more creativity.

You may even wonder why anyone would start a new business during a recession. It’s all in your perspective. The fact is, a recession could be the perfect opportunity to start your own business.

For example, if you are one of the many who find themselves unemployed during a recession, you are no longer tied down. You have nothing to lose, and you can use that freedom to start brainstorming ways to find startup funding. The recession can actually be a catalyst!

Despite the fact that there are many, many ways to get startup funding, it is still one of the greatest roadblocks to business ownership. It the first stumbling block most come across, and a recession makes it even bigger. Recession startup funding can even seem like a mirage to some, but it is a real thing. It just takes a little creativity to bring it out of hiding.

Some sources of funding for your startup will not work during a recession. You need to know what your options are, what works for startup funding, and what will work best in your situation. Then you can start looking.

Why Small Business Loans Do Not Always Work, Especially for Recession Startup Funding

With this startup funding source, recession is a huge issue. It can work for some, but the traditional lenders tend to really hold on to their funds tighter during an economic downturn. Since this is the source that most people immediately look to when they want to start a business, you can see why they get discouraged early on. They get turned down for traditional financing and just give up. It can look like that is the end of the line.

Note as well: business lending tends to reduce if not dry up altogether during economic downturns.

There is more than one place to get a business loan however, and some people do not realize that.

SBA loans

These loans are still offered through traditional lenders such as banks and credit unions, but the federal government guarantees them. Since they are not completely reliant on the credit score of the borrower to reduce risk, the required credit score is slightly lower to qualify.

There is a lot of red tape related to applying for SBA loans however, and it does take a significant amount of time. If you do not qualify for traditional loans and do qualify for SBA loans however, it is definitely worth the time it takes.

If you are looking to traditional lenders for small business loans as recession startup funding, you will most likely need to consider SBA Loans.

Learn business loan secrets with our free, sure-fire guide. We can help you get money, even during a recession.

Alternative Lenders: The Super Heroes of Recession Startup Funding

These are lenders that, as a general rule, operate online. Most of the time borrowers can apply online or over the phone and know about approval within minutes. Funds usually only take 24 to 48 hours to hit their account. Though this timeline does vary among lenders, the point is the process is fast and easy.

They also will sometimes take other factors into consideration if the credit score isn’t fabulous. Length of time in business and annual revenue can play a role as well. This makes it a more accessible source of funding for startups than traditional lenders for many. In addition, repayment terms are often more flexible and manageable.

These types of lenders are easier to work with even during a recession, though an economic downturn may slow them down some, recession startup funds from these lenders will still be more accessible to most than those from traditional banks and credit unions.

Downfall of Small Business Loans for Small Business Funding

Any small business loan is going to require strict repayment and interest. This is harder to manage for anyone during a recession, so keep that in mind when forming your plan of action.

Credit Line Hybrid

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

What are the Qualifications?

How hard is it to qualify? Not as hard as you may think. You do need good personal credit. That is, your personal credit score should be at least 685. In addition, you can’t have any liens, judgments, bankruptcies or late payments. Also, in the past 6 months, you should have less than 5 credit inquiries, and you should have less than a 45% balance on all business and personal credit cards. It’s also preferred that you have established business credit as well as personal credit.

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

The Downside?

If you don’t have a decent personal credit score, you’ll need to take on a credit partner.

Bootstrapping: The Ultimate in Recession Startup Funding

You know what bootstrapping is right? Pulling yourself up by your bootstraps and all of that. Basically, it’s when you figure out how to use what you already have as startup funding. This could include a number of options:

· Savings
· Retirement
· Credit cards
· Additional mortgage on a home
· Home equity line of credit

If you use retirement or savings, then you can rest easy knowing you don’t have to pay anyone back but yourself.

The Downside to Using Your Own Funds for Recession Startup Funding

The downside to this option is either the loss of retirement or savings, or significant personal debt. If your business is successful, it is not a problem. However, if your business does not do well, you could find yourself with some pretty major financial issues.

If you happen to have access to the amount of personal funds it would take to fund a startup during a recession, you are likely going to struggle with letting go of those funds. It is a definite risk, especially in economically tough times. However, it may be less of a risk than extensive debt. It could also be the only option available.

Learn business loan secrets with our free, sure-fire guide. We can help you get money, even during a recession.

Crowdfunding

Crowdfunding is a much more viable option during economically stable times. People that do not normally have disposable income may find that they have a little, and would like to help support a startup in return for a piece of the action.

This is still a possible source of recession startup funding, but much less likely. There is simply less “extra” money in the pockets of consumers. It is still worth a shot however.

Popular Crowdfunding Platforms

There are a lot of crowdfunding platforms, but the two most popular are Kickstarter and Indiegogo. While they are very similar in most ways, they do differ in one major way.

For each, you have to set a funding goal. Kickstarter requires the campaign to reach the goal before you can access any of the funds. Indiegogo allows you to choose whether you want to receive funds as they come in, or wait until you reach the goal.

Indiegogo also offers an option to keep accepting funds on the same campaign even after you reach the original goal, rather than having to launch a new campaign to raise more funds.

The Downside of Crowdfunding

A very small percentage of crowdfunding campaigns are successful during the best of times. This shouldn’t deter anyone from trying, but there needs to be a realistic realization that a backup plan may be necessary, especially during a recession.

Small Business Grants

There are small business grants available if you qualify. Most often these are available to certain demographics including:

· Women
· Minorities
· Veterans
· Businesses in low-income areas

If you fall into one of these categories, a quick search could be very fruitful. There are grants available to those that do not fall into these categories, but they are not as common.

There are some grants offered by the government, but most often they are not awarded directly to businesses. Rather local governments and nonprofits disburse the funds. This may involve nothing more than accepting applications and awarding funds based on eligibility until money is gone.

Corporations and professional organizations also sometimes offer private grants as well based on their own application criteria and eligibility requirements.

During a recession there may actually be more options like this available, as the government is looking to help shore up the economy and increase circulation.

The Downside

Grants are an awesome source of recession startup funding if you can get one. However, they are highly competitive and therefore not guaranteed.

Do the Hustle: A Side Hustle Could Be the Answer to Recession Startup Funding

This one is a personal favorite. It could fall under bootstrapping, but in my opinion, it deserves its own category. While you are technically self-funding, this option requires you to work to raise funds rather than using funds you already have available or taking on more debt.

It also, in most cases, requires keeping your day job. When you use a side-hustle to create your own recession startup funding, the process is pretty slow. This is why most do not care to use this option. There are many benefits however.

Benefits of the Side Hustle

The first is that you can gauge the market a little. If you use your business idea as your side hustle, you can get a feel for what kind of demand might be out there. For example, if you want to open a bakery, you could bake breads, cookies, cupcakes, or whatever your specialty may be on the side and sell it. As you do so, you can save any funds you earn to go toward growing your business, and in the meantime, you are gaining a following and making a name for yourself and your product.

Your side hustle does not have to be your business idea at all. It can be as simple as cleaning or babysitting around your day job hours. The point is that you put every penny you earn back for funding your startup.

The Downside

This is a slower option, and some people do not want to wait that long. In addition, with unemployment down during a recession, it may be hard to find one job, let alone a second to use as a side hustle. Even simply things like cleaning houses and cutting grass may be hard, because a lot of people will be trying to save money by doing these things themselves.

Investors: One of the Oldest Forms of Startup Funding

One of the most obvious options, other than small business loans, is to find investors. This would be significant investment from one or a few different people, rather than small investments from a large number of people like in crowdfunding. In addition, investors most definitely invest in exchange for profit sharing, usually in proportion to their investment or a percentage they agree upon from the beginning.

The Downside

You give up some of your earnings. That’s not fun, but it could be worth it for the right investor. Also, during a recession, investors tend to hold on to funds similar to the way lenders do. It is a much greater risk to invest during a recession because of the economic uncertainty that exists.

Learn business loan secrets with our free, sure-fire guide. We can help you get money, even during a recession.

Partner Up: Two Heads are Better Than One

You could also take on a partner. Sometimes the power of two is way stronger when it comes to startup funding. Where your credit score lacks, your partner’s may be strong. In most cases in life in general, two are better than one.

The Downside

Depending on how the partnership is structured, you may give up some of the managerial control. Just like with investors, you will definitely give up a portion of the profits.

Contests: The Longest Shot Option for Recession Startup Funding

There are contests out there that offer startup funding as a prize. Think “Shark Tank.” You could try to get in on that specific contest, but there are smaller scale contests out there also. Similar to crowdfunding and grants, they are not guaranteed. They are certainly worth a shot however.

Some of them simply award prize money, while others, like “Shark Tank,” award investment funds. Either way, it is money you can use for startup funding that you do not have to pay back.

The Downside

Like grants and crowdfunding, winning a contest is not guaranteed. It could end up being a lot of work for little to no payoff. During a recession, it is likely even fewer contests are available. If you find one however, definitely take advantage.

Bartering

It is difficult to fund a whole business by bartering, but in conjunction with one or more other sources of startup funding, it could be just the burst of energy you need to get you over the hurdle. Basically, it can make the funds you already have from other sources go further.

What does this look like? Maybe you are great at keeping books, and you have a friend that is great at social media. You may offer to do his books in exchange for his creating and managing your online presence.

Maybe your buddy is adept at designing websites, or has a space that will work as a location for your business. You could offer equity in the business in exchange for a website or use of the space.

This is one source of recession startup funding that may actually help be more of a possibility during a recession than in a booming economy. With people holding to funds tightly, they may be more likely to help you out for something in return other than money, as it will help them keep more money in their own pockets as well.

The Downside

There isn’t really a downside to this. It may not fully fund a business, but it could definitely reduce the financial need and help you stretch the funds you do have further. If you can find someone willing, this is a great option.

You Might Have to Get Creative, but You Can Find Recession Startup Funding

Sometimes the traditional ways work, and sometimes they do not. In a recession, the traditional ideas are sometimes even less useful. Creativity can be your best friend. You may have to use a few different sources of startup funding, recession or not. It can take longer than you originally anticipated, but slow and steady wins the race as they say.

If you work on winning grants or running a side hustle, it may feel like you will never finish the race, let alone win. Maybe you applied for loans but could not get approval. Now you are shaking yourself off and wondering if it is worth it. It is. Just keep trying. Consider the recession, though a challenge, to be an opportunity to do something not only different, but bigger and better in the long term. The rain doesn’t last forever, and neither does a recession. By starting your business now, you can be positioned for ultimate growth when the clouds finally roll away.

The post Top 10 Brilliant Ways to Find Recession Startup Funding appeared first on Credit Suite.

Business Loans for Minority Women and Other Funding Options

As a minority woman in business, it is important to know what is available to you for business funding. Do business loans for minority women even exist? The answer is, sort of. There are business loans for minority women, but not for them exclusively. There are other funding options out there as well. Grants, crowdfunding, and even angel investors are all viable options.

Business Loans for Minority Women and So Much More

How do you find the best options for you? How do you know if you need to be looking for grants or business loans for minority women? The truth is, you need to explore every option. This is because, in reality, it is probably going to take a combination of funding options to fully fund your business.

Business Loans for Minority Women: The Truth

The thing is, there aren’t a ton of loan programs only for minority women. You are really looking for regular loans that work with the challenges faced by business owners that fit into both categories. Once you understand that, your search will become much easier.

Business Loans for Minority Women: Traditional vs. Private

As a general rule, loans from traditional lenders are both the best and the hardest to get. Their terms and rates are much better than those offered by private lenders. They also have more stringent eligibility requirements. They typically require higher credit scores, longer time in business, and more annual revenue.

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

Private lenders, on the other hand, work a little differently. They tend to have higher interest rates and less favorable terms. However, they have less strict requirements for approval. They allow lower credit scores and less time in business, as a general rule.

The Small Business Administration

So where do you go to find business loans for minority women? Since traditional loans offer the best rates and terms, they are truly the place to start. They are harder to get, but the Small Business Administration loan programs help make them easier. They do not lend funds directly. Instead, they work with traditional lenders. They back loans to make them easier for borrowers to qualify. You can find a list of SBA partner lenders using their lender match tool.

7(a) Loans

This is the Small Business Administration’s main loan program. It offers federally funded term loans up to $5 million. The funds can be used for expansion, purchasing equipment, working capital and more. These funds are distributed through traditional lenders.

The minimum credit score to qualify is 680. In addition, there is a down payment requirement of at least 10% for the purchase of a business, commercial real estate, or equipment. The minimum time in business is 2 years. In the case of startups, business experience equivalent to two years will suffice.

504 Loans

These loans are also available up to $5 million and can buy machinery, facilities, or land. They are generally used for expansion. Like 7 (a) loans, private sector lenders or nonprofits process and disburse these funds. They work well for commercial real estate purchases especially.

Terms for 504 Loans range from 10 to 20 years. Unfortunately, funding can take up to 90 days. They require a minimum credit score of 680, and collateral is the asset it is financing. There is also a down payment requirement of 10%, which can increase to 15% for a new business.

There is also a 2-years in business requirement. For a startup, equivalent experience for management will meet this.

Microloans

Microloans are available in amounts up to $50,000. They work for starting a business, purchasing equipment, buying inventory, or for working capital. Community based nonprofits handle SBA microloan programs as intermediaries.

Interest rates on these loans are 7.75% to 8% above the lender’s cost to fund, and the terms go up to 6 years. Similar to other programs, they can take up to 90 days to fund. The minimum credit score is 640, and the collateral and down payment requirements vary by lender.

SBA Express Loans

These loans max out at $350,000. They have a maximum interest rate of 11.50%. In addition, terms range from 5 to 25 years, and the SBA guarantee is less than it is with their other loan programs at 50%. To qualify, your credit score must be above 680. Another requirement is that you must have a debt to service ratio of 1.1 or higher. If the loan is greater than $25,000, collateral may be necessary. It depends on the lender.

The turnaround for express loans is much faster. The SBA takes up to 36 hours to give a decision. Also, there is not as much application paperwork. As a result, express loans are a great option for working capital, among other things, if you qualify.

Other SBA Resources

The SBA exists for all small company owners. However, their Office of Women’s Business Ownership exists to help women local business owners specifically. This includes women minorities. Their goal is to enable and empower business owners that are women via advocacy, outreach, and education as well as assistance.

Business Loans for Minority Women: Private Lenders

Other options for business loans for minority women include private lenders. These loans, much like SBA loans, are not exclusively for minorities or women. However, by nature they tend to work well with the unique challenges each group faces.

Lending Club

LendingClub functions as a peer-to-peer lender that offers mostly fixed-term small business loans. Borrowers that get loans from LendingClub generally use loans funds to buy equipment, finance growth or expansion projects, consolidate other debt, or hire new employees.

The minimum loan amount at LendingClub is $5,000 and the maximum is $300,000. You must have been in business for 12 months or more and have at least $50,000 in annual sales to qualify. There can be no tax liens or bankruptcies, and you must have at least 20% ownership. They will work with a credit score that is fair or higher. A fair credit score ranges from 620 to 659.

Lendio

Lendio offers a loan-connection service that dramatically cuts the time it takes for small business owners to find the perfect loan. They do the legwork by vetting a network of competing small business lenders. Funding is fast, sometimes in as little as 24 hours.

Potential borrowers submit one application and then see offers from lenders in the network. The minimum loan amount is $500 while the maximum is $5,000,000. The business must be U.S. or Canada based and must have a business bank account. The minimum personal credit score for approval is 560.

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

Blue Vine Business Loans for Minority Women

BlueVine offers two options for small business financing. They include lines of credit and invoice factoring. They also offer the ability to talk with a financing advisor, and their application process takes place exclusively online. Their minimum loan amount is $5,000 and their maximum is $100,000. To be eligible you must be in business for at least 6 months, have revenue of $120,000 per year or more, and have a credit score of at least 600.

Kiva

Kiva has a different lending model. They offer loans to businesses, but their platform is far different from that of traditional or even other non-traditional lenders. It is a kind of cross between crowdfunding and lending. They offer loans with a 0% interest rate, so even though you have to pay it back, it is actually free money. In addition, they do not run a credit check at all. The only requirement is that you have to get at least 5 family members or friends to donate money for your business, and you have to give at least a $25 loan to another business on the platform yourself.

Grameen

Microloans are a great option when it comes to business loans for women with bad credit. Grameen is one of the few lenders that offers microloans specifically for women. The loan amounts range from $2,000 to $15,000, and they also offer financial training and support.

As a bonus, they report payments to Equifax and Experian. Consequently, these loans help borrowers build credit.

Other Resources for Women

Here are some other organizations that work to help women of all races.

National Female’s Service Council

The NWBC is a federal advising council. It works as a resource of guidance to the government on women’s organization problems. The objective is to encourage campaigns, programs, and policies to sustain females from startup to growth.

Other Tools to Consider

Along with those firms listed above, these agencies provide support to women owned businesses.

Association of Women’s Business Centers

The AWBC runs a network of business centers geared toward women. These centers labor to help women succeed by offering training, business development, financing, and mentoring opportunities.

National Association for Female Executives

This organization, also known as NAFE, sponsors events, provides training, and offers other resources to help female business owners achieve success.

National Association of Women Business Owners

The NAWBO works across the country to offer training, events, and other resources to women owned businesses nationwide.

SCORE

With more than 300 chapters and 10,000 volunteers, this is the country’s largest network of expert business mentors that volunteer their time. They match female business owners with mentors, or they can participate in a workshop to help them learn what they need to know to be successful.

Don’t Forget to Look into Grants to Supplement Business Loans for Minority Women

Though highly competitive and rarely enough to fund a business on their own, grants are a great way to supplement other business funding. Here are a few you can start with.

Amber Grant

The Amber Grant awards $500 to $1,000 per month to a woman-owned business. One of the recipients also receives an additional $10,000 grant at the end of the year. Applicants only need to tell their story and turn it in with a $15 application fee.

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

#GIRLBOSS Foundation Grant

Specifically for woman-owned businesses in fashion, music, and art, the #GIRLBOSS small business grant awards $15,000. They also offer exposure via the Girlboss website and social media platforms. Judges rate those applying on creativity, business savvy, planning, innovation in the field, need, and where they plan to work.

Cartier Women’s Initiative Award

The Cartier Women’s Initiative Award is $100,000 for first place and $30,000 for second place. They award the grant to 18 female business owners from around the world each year. Women business owners who are just getting started may qualify. Look over the complete application for more information.

Grants for Minorities

If you are looking into business loans for minority women, then you must be both a minority and a woman. That being the case, you should check out these grants for minorities as well.

First Nations Development Institute Grants

The mission of this group is to offer grants that help Alaska Natives, Native Hawaiians, and Native Americans. They offer assistance in the application process in addition to funds.

National Black MBA Association Scale-Up Pitch Challenge

Also known as NBMBAA, the Scale-Up Pitch Challenge has cash prizes ranging from $1,000 to $50,000. The associate states its purpose is to help newer businesses that have an African founder that maintains equal ownership.

Non-Minority or Female Specific Options

There are grants options that can work well even though they are not exclusively for minorities, or women. Some examples include the following.

FedEx Small Business Grant

There are 10 grants the company awards each year. They range from $15,000 to $50,000. If you’re a minority owned business with a cutting-edge product, this could be the grant for you.

A business must use the FedEx website to submit entries. There are a few questions to answer about your business. In addition, there is a requirement for an elevator pitch about what makes your business special. Also, you have to explain how you would use the grant funds. A 90 second video submission is optional.

NASE Growth Grants

The National Association for the Self-Employed (NASE) has small business Growth Grants of up to $4,000. They are for micro-businesses, and proceeds can be used for a number of things. They can be utilized for marketing, advertising, expansion, and even to hire employees. These grants are open to everyone. However, you do have to be an NASE member to apply. Membership fees vary based on the membership level chosen.

USDA Value Added Producer Grant

The USDA’s Value-Added Producer Grant (VAPG) program offers grants for small businesses. It includes minority owned business. Grants range up to $250,000. They are specifically to help agricultural producers with activities that add value to their products. As a result, grants are open to those in rural areas. They must be operating as one of the following:

Cooperative
Farmer
Rancher
an independent agricultural producer
or an agricultural producer group

Business Loans for Minority Women and Other Helpful Resources

It’s important that you know about your options for business loans for minority women. However, you need to know what other resources are available as well. There are plenty. Take a look around and see what you can dig up.

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20 Sources of New Business Funding to Help You Get Started

If you own a new business, one that is less than two years old, you likely need funding. Who are we kidding? Everyone needs funding of some sort right now. COVID-19 has made sure of that. It is also just as likely that you will have trouble finding funding that you qualify for. Maybe your personal credit isn’t great. Maybe you are still working on building business credit. While there are a ton of new initiatives to help businesses survive in these unprecedented times, they are mostly for existing businesses. Still, there are many options for new business funding as well. Here, we’ve broken them down in a list to help get you started. They are divided into the categories of SBA loans, private lenders, grants, and crowdfunding.

Need New Business Funding? These 20 Sources Can Help

While it isn’t always wise to stack new business funding of the same type, it isn’t a bad idea to stack different types of funding. For example, you could apply for a grant and take out a loan at the same time. You could even run a crowdfunding campaign simultaneously. However, it is important to be careful of having too many loans out at once.

Establish business credit fast with our research-backed guide to 12 business credit cards and lines.

New Business Funding: SBA Loans

These are traditional bank loans, but they have a government guarantee. The Small Business Administration, or SBA, works with financial institutions, like banks, to offer small businesses funding solutions that businesses may not be able to get based on their own credit history. Because of the guarantee from the government, lenders are able to relax a little on the personal credit score requirements.

In fact, you can get an SBA microloan with a credit score between 620 and 640. They are small loans, only going up to $50,000. Also, they may require personal collateral.

The trade-off with SBA loans is that the application progress is lengthy. There is a ton of red tape connected with these types of loans.

1. 7(a) Loans

This is the Small Business Administration’s main program. It offers term loans up to $5 million. Funds can be used for expansion, purchasing equipment, working capital and more. Banks, credit unions, and other specialized institutions in partnership with the SBA process these loans and disburse the funds.

The minimum credit score to qualify is 680, and there is also a required down payment of at least 10% for the purchase of a business, commercial real estate, or equipment. The minimum time in business is 2 years. In the case of startups, business experience of at least two years will work.

2. 504 Loans

These loans are also available up to $5 million and can buy machinery, facilities, or land. They are generally used for expansion, and private sector lenders or nonprofits process and disburse them. They work especially well for commercial real estate purchases.

Terms for 504 Loans range from 10 to 20 years, and funding can take from 30 to 90 days. They require a minimum credit score of 680. In addition, they use the asset being financed as collateral. There is also a down payment requirement of 10%, which can increase to 15% for a new business.

The 2 years in business, or 2 years management experience in the case of startups, remains.

3. Microloans are a Great Source of New Business Funding

As mentioned, microloans go up to $50,000. They are good for starting a business, purchasing equipment, buying inventory, or for working capital. Community non-profits handle the administration of microloan programs. In contrast to their other programs, financing comes directly from the Small Business Administration.

Interest rates on these loans are 7.75% to 8% above the lender’s cost to fund. The terms go up to 6 years. They can take up to 90 days to fund. For these, the minimum credit score is 640. Furthermore, collateral and down payment requirements vary by lender.

New Business Funding: Alternative Lenders

Private business loans are loans from companies other than banks. They are sometimes also called alternative lenders. There are a few benefits to using private business loans over traditional loans.

First, they often have more flexible credit score minimums. Even though they still use your personal credit, they will usually accept a score much lower than traditional lenders. Also, they will often report to the business credit reporting agencies. This helps build or improve business credit.

Unfortunately, private business loans tend to 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 it. Here are a few alternative, or private, lenders to consider.

Establish business credit fast with our research-backed guide to 12 business credit cards and lines.

4. Fundation

Fundation offers loans for as little as $100 and as high as up to $100,000. The maximum first draw is $50,000. They do have some products that go up to $500,000. Though there is no minimum credit score requirement, they do require at least 3 months in business, $50,000 or more in annual revenue, and a business checking account with a minimum balance of $500.

One thing to remember is that you could have a repayment as high as 5 to 7% of the amount you have drawn, as the repayment period is comparatively short.

Also, Fundation reports to Dun & Bradstreet, Equifax, SBFE, PayNet, and Experian, making them a great option if you are looking to build or improve business credit.

5. 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. In addition, the borrower must be in business for at least 6 months. They require a personal credit score of at least 600. In addition, BlueVine does not offer a line of credit in all states.

They report to Experian. They are one of the few invoice factoring companies that will report any business credit bureau.

6. 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.

The personal credit score requirement is 600 or more. In addition, you must be in business at least 3 years and have gross yearly earnings of at least $250,000. Also, there can be no bankruptcy on file in the past 2 years and no unresolved liens or judgements.

OnDeck reports to the standard business credit bureaus.

7. The Business Backer

The Business Backer offers a product they call FlexFund Line of Credit. Funds range in amount from $5,000 to $240,000, and draws can be repaid on either a daily or weekly basis.

They report to Dun & Bradstreet and Equifax.

8. StreetShares

StreetShares started as a service to veterans, but now offers term loans, lines of credit, and contract financing. They also offer small business loan investment options. The maximum loan amount is $250,000, and preapproval only takes a few minutes.

To be eligible for a StreetShares loan, you must be in business at least 12 months with annual revenue of $25,000. There have been cases where they made exceptions and made loans to companies in business at least 6 months with higher earnings. The borrower’s credit score must be at least 620.

9. Fundbox

When Fundbox offers an automated process that is super-fast. Originally, they only had invoice financing. However, now they offer a line of credit service as well. Repayments are automatic on a weekly basis, so be sure you have enough funds in whatever account you connect them to cover your payment each week.

Fundbox loans come as low as $100 and as high as up to $100,000. There are no revenue or time in business requirements, but your accounting or invoice software must be compatible and must be in use for at least 3 months. Furthermore, there is also no specific credit score requirement. You simply have to be an established business with regular monthly revenue.

10. Fora Financial

Founded in 2008 by college roommates, they now fund more than $1.3 million in working capital around the country. There is no minimum credit score, and there is an early repayment discount if you qualify.

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

11. Lendio

The secret to Lendio’s success is customer service and a short, easy application process. This is due to its heavily vetted network of lenders. Sometimes, funding happens in as little as 24 hours.

One easy application can result in offers from as many as 75 lenders to choose from. The minimum loan amount is $500 and the maximum is $5,000,000. You must operate your business in the US or Canada. In addition, you must have a business bank account, and your personal credit score must be at least 560.

12. Credibly

Credibly’s specialty is unsecured business loans. The application process and funding can be completed in as little as two days. Sometimes even less than that. They offer daily and weekly repayment options.

The minimum loan amount is $5,000 and the maximum is $250,000. First, they require a personal credit score of at least 500. Next, there is a 6 months or more in business requirement. At least $15,000 plus in average monthly deposits is also required.

13. Kabbage

Kabbage offers a small business line of credit that can help accomplish your business goals quickly. The minimum loan amount is $500 and the maximum is $250,000. They require you to be in business at least one year and have $50,000 or more in annual revenue or $4,200 or more in monthly revenue over the last 3 months.

They are great if you need cash quickly. Also, their non-traditional approach puts less weight on your credit score.

New Business Funding: Grants

New business funding in the form of grants are available from a number of sources. A lot of these are designed specifically to help those business owners that are minorities, females, or veterans. Be sure to check out local organization options as well.

Here are a couple of options that are open to everyone.

14. FedEx Small Business Grant

FedEx uses this grant as a way to strengthen small business innovation. The company awards 10 grants. They range from $15,000 to $50,000 every year.

Establish business credit fast with our research-backed guide to 12 business credit cards and lines.

You have to submit an entry via the FedEx website. There are a few questions about your business. An elevator pitch about what makes your business stand out is also required. In addition, you have to explain how you would use the grant funds. A 90-second video submission is optional.

15. NASE Growth Grants

The National Association for the Self-Employed (NASE) has small business Growth Grants that go up to $4,000. Grant recipients must be micro-businesses. Funds can be used for marketing, expansion, and to hire employees. These grants are open to everyone. However, you have to be a NASE member to apply. Cost of membership depends on the member level you choose.

This is not all that is out there. Do your research, and remember additional grant options are available to women and minority business owners.

New Business Funding: Crowdfunding

Crowdfunding sites allow you to tell thousands of micro investors about your business. Anyone who wants to donate, or invest, can do so.

Investors offer amounts depending on the campaign and the platform you use. They may give $50, they may give $150, or they may give over $500. It might just be $5. Truly, any amount helps, right?

Though not always necessary, most entrepreneurs offer rewards to investors for their generosity. Usually, 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, and a $150 gift will get you an upgraded version of product A.

There are a lot of crowdfunding platforms out there. Here are a few to consider.

16. Kickstarter

They are the largest crowdfunding platform. They have over 14 million backers and over 130,000 funded projects. Campaigns are for products and services such as:

Publishing
The arts and film
Comics and illustration
Design and tech

A prototype is necessary. Projects cannot be for charity, although nonprofits can use Kickstarter. Equity cannot be offered as an incentive.

Taboo projects and perks include anything to do with:

Contests and raffles
Cures and medicines
Credit services
Live animals
Alcohol
Weapons

There is a 5% fee on all funds which creators collect. The payment processor also applies payment processing fees, which are roughly 3-5%. If your campaign is not successful you do not pay a fee. There are also fees of 3% + $0.20 per pledge. Pledges under $10 have to pay a discounted micro pledge fee of 5% + $0.05 per pledge.

17. Indiegogo

Indiegogo has over 9 million backers. Their minimum goal amount is $500. They charge 5% platform fees and 3% + 30¢ third-party credit card fees. Fees are deducted from the amount raised, not the goal you set. As a result, if you raise more than your goal, you will pay more in fees. They also offer a flexible funding option. This allows campaigns to keep any money they receive even if they do not reach their goal.

18. RocketHub

RocketHub is more for entrepreneurs who want venture capital. They give you an ELEQUITY Funding Room. This is where you can pitch your idea and see if it stirs up any interest from potential investors.

The platform is specifically for business owners working on projects in these categories:

Art
Business
Science
Social

If you reach your fundraising goal, there will be a 4% fee. In addition, you’ll pay a 4% credit card handling fee. But if you do not reach your goal, that fee jumps up to 8% plus the credit card handling fee.

19. CircleUp

CircleUp aims to help emerging brands and companies raise capital to grow. However, companies must apply and show revenue of at least $1 million to get a listing on the site. Still, they will sometimes make exceptions.

Due to its more thorough process, CircleUp can be good for entrepreneurs who already have a somewhat established business. These are business owners who want both funding and guidance in order to take their businesses to the next level.

New Business Funding: Strong Overall Fundability

This really comes from yourself. It’s not an outside source. Of course, there are many things that affect fundability, but one you can work on while you are using personal credit or investors for new business funding is business credit.

20. Build Business Credit

Whichever type or types of new business funding you choose to use, be sure to work on building business credit at the same time. This is a major part over overall fundability. Without strong fundability, it is hard to get any type of funding really. Personal credit will only get you so far when it comes to building and running a business.

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Small Business Start Up Loans and Other Funding Options

There are many options for funding a startup. The most popular is small business start up loans. However, not everyone can just go to the bank and get a loan. Things like income and credit score get in the way. There are options if you find yourself in this situation.

Small Business Start Up Loans are Great, But Are There Other Options?

While business start up loans are the most popular option for funding a start up, sometimes you have to think outside of the box. Sometimes you have to stack different types of funding to get what you need. Here are some funding options, some loans and some not, that you should consider outside of traditional loans.

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Credit Line Hybrid

What if there were an option that allowed you to have an even better interest rate than a secured loan, and yet get the money faster and easier than any type of traditional funding. Consider if you could get business funding without having to supply any bank statements or credit stubs? Just think, you could get funding in a few days rather than weeks without supplying any collateral or documents. That is exactly what the credit line hybrid lets you do.

It is revolving, unsecured financing. It allows you to fund your business without putting up collateral, and you only pay back what you use.

What are the Qualifications?

How hard is it to qualify? Not as hard as you may think. You do need good personal credit. That is, your personal credit score should be at least 685. In addition, you can’t have any liens, judgments, bankruptcies or late payments. Furthermore, in the past 6 months, you should have less than 5 credit inquiries. Also, you should have less than a 45% balance on all business and personal credit cards. It’s also preferred that you have established business credit as well as personal credit.

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

What are the Benefits of a Credit Line Hybrid?

This type of funding has many benefits. First, it is unsecured. That means you do not have to have any collateral. Next, you do not have to provide any bank statements or financials.

Not only that, but 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.

Credit Cards

Credit cards get a bad rap. Yet, if you know what you are doing, they can work well to help fund a start up in addition to small business startup loans. The draw is that these are accessible even with a credit score that isn’t great. However to be fair, the lower the credit score, the higher the interest rate. Also, there are limits on how low they will go with a credit score.

Typically, most business owners are eligible for a credit card of some sort. They do a credit check, but your credit doesn’t have to be as high as it would to gain approval for traditional small business start up loans.

The downside of business credit cards is that they usually have a high interest rate. The upside is that many of them offer rewards in the form of cash or points that can be helpful.

Crowdfunding

This is an increasingly popular option for startup funding. Here is how it works. Crowdfunding is a type of investment option. You get a lot of smaller investments from a lot of people. Hence the term, crowdfunding. This 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.

Angel Investors as an Alternative to Small Business Start Up Loans

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

They are usually a lot less formal than regular investors. An angel investor can be anyone. Like, it could be your mom or someone you met through networking.

The best way to find angel investors is to ask people you know. Also, you can try an angel investors website or network. For example, Gust keeps a database of investors, companies, and programs. Startups can even search for business plan competitions and other opportunities.

SBA Options

Small business start up loans are a specialty of The Small Business Administration. These programs are designed for borrowers with lower credit scores than those required for traditional loans.

Score the best business credit cards for your business, even when a recession looms.Check out our professional research.

Small Business Startup Loans: 7(a) Loans

This program offers federally funded term loans of up to $5 million. Funds can be used for expansion, purchasing equipment, and working capital in addition to startup. SBA partner lenders, usually banks, process these loans and disburse the funds.

The lowest credit score to qualify is 680. There is also a down payment requirement of at least 10% for the purchase of a business, commercial real estate, or equipment. The minimum time in business is 2 years. For startups, business experience equivalent to two years will serve this purpose.

504 Loans

These loans are also available up to $5 million. Funds can be used to buy machinery, facilities, or land. Typically, these loans are used for expansion. Like 7(a) loans, partner lenders process and disburse funds. These are especially great for real estate purchases.

Terms for 504 Loans range from 10 to 20 years, and funding can take from 30 to 90 days. They also require a minimum credit score of 680. The asset being financed is required for collateral. In addition, the down payment requirement of 10% remains, but can increase to 15% for a new business.

Again, you must be in business at least 2 years, or management has to have equivalent experience if the business is a startup.

Microloans

Microloans are available in amounts up to $50,000. They work for starting a business purchasing equipment, buying inventory, or for working capital. Community based non-profits administer microloan programs as intermediaries, with financing coming directly from the Small Business Administration.

The minimum credit score is 640, and the collateral and down payment requirements vary by lender.

Private Lender Options for Small Business Start Up Loans

If your personal credit score isn’t the best, consider looking at private lender options.

These are alternative lenders that have less strict eligibility requirements. They do have higher interest rates and less favorable terms than traditional loans however, so choose wisely.

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. How different? They are actually very different. For example, the interest rate is 0%. That means, even though you have to pay it back, a loan from them is free money. They don’t check your credit at all. However, you have to get at least 5 family members or friends to throw some money in to help fund your business. In addition, you have to pitch in a $25 loan to another business on the platform.

Accion

Accion may be a good fit for small business start up loans also. It’s a nonprofit that offers microloans. Installment loans are available to both startups and already existing businesses through Accion. 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.

Fundability is Important for Small Business Start Up Loans

Fundability, in the simplest terms, is the ability of your business to get funding. When lenders consider funding your business, does it appear to them to be a good idea to make the loan? What do they look at to make that determination?

You see why it makes a difference. Lenders have to perceive lending to your business as profitable. But what makes a business fundable? How do you become fundable?

First, you have to have a fundable foundation. That includes the following.

Separate Contact Information

The first step in setting up a fundable foundation is to ensure your business has its own phone number, fax number, and address. That doesn’t necessarily mean you have to get a separate phone line, or even a separate location. There are ways around that.

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. You can get one for free from the IRS.

Score the best business credit cards for your business, even when a recession looms.Check out our professional research.

Incorporate

Incorporating your business as an LLC, S-corp, or corporation is necessary to fundability. It offers liability protection and helps separate your business from you as the owner, among other things.

Which option you choose does not matter as much for fundability as it does for your budget and needs for liability protection. The best thing to do is talk to your attorney or a tax professional. Also important to note is that, when you incorporate, you become a new entity. You’ll also lose any positive payment history you may have already accumulated, and your time in business will start over.

This means it is vital to incorporate as soon as possible. It’s important for fundability and building business credit, but time in business makes a difference for those things as well. The longer you have been in business the more fundable you appear to be. That starts on the date of incorporation, regardless of when your business actually opened.

Business Bank Account

You have to open a separate, dedicated business bank account. First, it will help you keep track of business finances. It will also help you keep them separate from personal finances for tax purposes.

Furthermore, it is much easier to show you meet the minimum income a lender requires for small business start up loans if you have everything in a separate business account.

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.

There is much more to fundability than these foundational factors, but none of it matters if you don’t have the foundation in place. Taking care of that piece at startup is the way to go.

Small Business Start Up Loans Are Just One Way to Fund a Startup

There are many ways to fund a startup. Small business start up loans are just one of them. The truth is, most businesses have to access more than one option to make things work. If you can start debt free with angel investors or crowdfunding, do that. If not, these other options are just what you need to get up and running.

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