Can the Best Hard Money Lenders Make this Form of Business Funding Worthwhile?

What are the Best Hard Money Lenders, and is Hard Money Lending Worth It?

Even the best hard money lenders can be problematic. Read on to find out more.

Hard Money Lenders and Hard Money Funding

If you’re looking to flip houses, you may have heard these terms. But what is hard money funding, and can it work for you?

Hard Money Funding: What Is It?

Hard money loans are asset-based loans that can fund any real estate investment. These loans are based on the property value. There is no need for background checks or credit scores. Some lenders even offer hard money loans based on the after-repair value of a building. Hard money lenders make finance house flipping with their asset-based loans.

Hard Money Funding: Positives

Since it’s based on the real estate value (before or after repair), a borrower with poor credit can get these loans. Hard money loans are fast, sometimes even within 24 hours of application.

Hard Money Funding: Negatives

Interest rates can be very high, as in three times that of banks. Terms can be very short, as in 6 – 18 months, versus a standard 30-year mortgage.

Plus a hard money lender wants you to have some skin in the game, typically at least 10% of your own money. That way the lender knows their interests are protected, because you don’t want to lose your money. Hard money loans also tend to not be subject to consumer lending regulations. So, caveat emptor.

How is Hard Money Funding Used?

If you go ahead with hard money funding, its use is virtually always for real estate projects. These are either house flipping, or real estate investments.

Fix and Flip Loans

House flipping consists of buying a property, repairing it, and selling it for a profit. Fix and Flip loans are one of the most common types of hard money loans. For house flippers, having fast funds for their flips is a necessity. These hard money loans are made for house flippers looking to flip a property by making some upgrades and selling it for a profit.

Fix and flip loans are short term loans (6 – 12 months) covering almost all the house flipping costs. Hard money funding is not only used to cover the property value of the building. It also pays for a portion of the repairs needed to flip. For example, some hard money lenders even offer to base the loan on the after-repair value of the flip. This gives the house flipper more funds to flip with from fix and flip lenders.

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

Long Term Rentals

House flippers don’t always sell the buildings they repair. Many make passive income by renting their properties. For those looking to acquire and upgrade large rentals, hard money funding is essential. This type of flipper financing lends on the underlying asset of the property.

To make the most of long-term rentals, upgrading and repairing the property is necessary. Here, hard money loans are based on the after-repair value of the property. House flipper funding for large one-time repairs to a property helps improve the property for higher rents. It also helps to offset the cost of the repairs.

Vacation Rental Flips

With alternative rental sites like Airbnb becoming more and more popular, house flippers are looking into flipping vacation rentals with hard money loan lenders. Vacation rentals can turn over large profits but many will require large repairs to get more bookings. These repairs and modern upgrades are necessary to ensure solid bookings throughout the year. Using hard money funding to make upgrades is faster than using a traditional lender. Like all flipper financing, the loan is based on property value and not the applicant’s credit history.

Home Rehabs

Paying cash for a property is a great way to lower costs for a property. But it leaves gaps for funding repairs. Home rehabs are ideal for one-time large repairs. This can be for a flip that they bought in cash, a rental, or anything in between.

Often when looking to charge more in rent, house flippers will add amenities and upgrades to their properties. Home rehabs can also be for investors looking to sell off property and maximize their return by adding a few upgrades. With only using flipper financing for the repairs, the house flipper can save money on down payments. This means a larger profit margin via hard money lending. Hard money funding can be a way to make sure projects finish on time.

Hard Money and Bridge Loans

Sometimes house flippers need to refinance properties to prevent foreclosures, get better rates, or get more cash to finish their flip. Bridge loans, a special type of flipper funding, can help flippers complete their projects to save them from foreclosure. Bridge loans work to ‘bridge’ cash gaps for a property. This cash is used to finish the flip, sell the property, or prevent foreclosure.

Hard Money, Bridge Loans, and Foreclosures

Sometimes, house flippers will use hard money loans to buy foreclosed properties. This makes them a great option for someone looking to pounce on a great deal in the fast-moving real estate market. Sometimes bridge loans fund short sale loans, or even the acquisition of off-market properties. They can help you get a hard money loan for auction property.

Hard Money and Refinancing

Reasons for refinancing include to prevent foreclosure, fill in cash flow, or make sure a project is done on time. Hard money funding can help with all of these issues. This type of funding works for house flippers who need a one-time influx of capital.

Hard Money Funding: Beyond the Flip

Hard money funding can be used for more than flips. It can also be used for commercial real estate financing. This is for commercial properties such as retail stores. Note: hard money loan rates will vary.

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

Options Beyond Hard Money Lenders and Funding

Flippers and commercial real estate investors have choices beyond hard money loans. They can try a home equity loan for flipping, or an investment property line of credit for real estate investments. Another option is a business line of credit.

Yet another option is a cash out refinance loan, or a permanent bank loan/online mortgage. Rates and terms will vary. But for great rates, have you checked out what Credit Suite has to offer?

Check Out Commercial Real Estate Financing from Credit Suite and Connect to Hard Money Lenders

Amounts range from $100,000 – $20,000,000. This financing can be used for refinancing a property, even if you are doing a cash-out refinance. Maximum LTV 70%.

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

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

Commercial Real Estate Financing for All Types of Buildings

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

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

Details on Credit Suite’s Commercial Real Estate Financing Program

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

The Best Hard Money Lenders? The Jury is Still Out on Whether This Form of Funding is the Best Idea

Hard money funding can be a good choice for house flippers and commercial real estate investors who have bad credit or want/need to get money fast. But interest rates can be high, and terms can be short. Plus there is little regulation. Credit Suite can help you get funding for commercial real estate or house flipping, with better rates and terms than you would expect.

The post Can the Best Hard Money Lenders Make this Form of Business Funding Worthwhile? appeared first on Credit Suite.

How Hard is it to Establish Business Credit in a Recession?

Do you know? How hard is it to Establish Business Credit in a Recession?

It’s a brilliant question. How hard is it to establish business credit in a recession? Is business credit building impossible? Or is it just some nightmare? And what happens in an economic downturn?

I assure you it is not only possible, it is downright sure-fire. And business credit is all but recession-proof!

Business credit is credit in a business’s name. It doesn’t link to an owner’s personal credit, not even if the owner is a sole proprietor and the solitary employee of the corporation. Because of this, an entrepreneur’s business and consumer credit scores can be very different.

The Advantages

Because business credit is distinct from individual, it helps to safeguard a business owner’s personal assets, in the event of court action or business insolvency. Also, with two separate credit scores, an entrepreneur can get two separate cards from the same merchant.

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 frustration. But building small business credit, when done right, is a plan for success.

Individual credit scores are dependent on payments but also additional considerations like credit usage percentages. But for small business credit, the scores actually merely depend on whether a corporation pays its invoices timely.

How Hard is it to Establish Business Credit in a Recession: The Process

Establishing business credit is a process, and it does not occur automatically. A corporation will need to proactively work to build business credit. Nonetheless, it can be done readily and quickly, and it is much swifter than developing individual credit scores.

Merchants are a big component of this process.

Doing the steps out of sequence will cause repetitive rejections. 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 rejection 100% of the time.

Learn more here and get started toward building business credit attached to your company’s EIN and not your SSN. Get money even in a recession!

How Hard is it to Establish Business Credit in a Recession: Company Fundability

A business has to be authentic to lenders and vendors. As a result, a company will need a professional-looking website and email address, with website hosting from a company like GoDaddy. Additionally business phone and fax numbers need to have a listing on ListYourself.net.

At the same time the company telephone number should be toll-free (800 exchange or the like).

A company will also need a bank account dedicated strictly to it, and it must have every one of the licenses essential for running. These licenses all must be in the accurate, accurate name of the company, with the same business address and phone numbers.

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

How Hard is it to Establish Business Credit in a Recession: Dealing with the Internal Revenue Service

Visit the IRS web site and obtain an EIN for the small business. They’re free of charge. Select a business entity like corporation, LLC, etc.

A small business can start off as a sole proprietor. But will most likely wish to switch to a form 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 owner is it when it comes to liability and tax obligations. No one else is responsible.

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

If you do not, then your personal name is the same as the small business name. Therefore, you can find yourself being directly responsible for all company debts.

And also, per the IRS, with this structure there is a 1 in 7 probability of an IRS audit. There is a 1 in 50 chance for corporations! Prevent confusion and drastically lower the odds of an Internal Revenue Service audit as well.

Learn more here and get started toward building business credit attached to your company’s EIN and not your SSN. Get money even in a recession!

How Hard is it to Establish Business Credit in a Recession: Starting off the Business Credit Reporting Process

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

Once in D&B’s system, search Equifax and Experian’s websites for the company. 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 something to report on.

Trade Lines

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

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

These kinds 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 credit issuers who will give you initial credit when you have none now. Terms are oftentimes Net 30, instead of revolving.

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

Details

Net 30 accounts must be paid in full within 30 days. 60 accounts need to be paid in full 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 made use of.

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

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

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

And Continue…

So get 3 of these to move onto the next step, which is revolving store credit.

1. Uline Shipping Supplies

Uline Shipping Supplies is a true starter vendor. Find them online at https://www.uline.com/. They offer shipping, packing, and industrial supplies, and they report to D&B and Experian.

You need to have a DUNS number. They will ask for 2 references and a bank reference. The initial few orders may need to be paid in advance to initially get approval for Net 30 terms. Also, you may need to buy some things you do not need.

2. Crown Office Supplies

Crown Office Supplies is another true starter vendor. Find them online at https://crownofficesupplies.com.

They sell a variety of office supplies and take helping clients seriously. They say, “just starting your business, or maybe have an existing business, but you have a question regarding office supplies… we are here to help!” And they report to Dun and Bradstreet, Experian, and Equifax.

There is a $99.00 yearly fee, though they do report that fee to the business credit reporting agencies. For other purchases to report, the purchase must be at least $30.00. Terms are Net 30.

3. Grainger Industrial Supply

Grainger Industrial Supply is also a true starter vendor. Find them online at https://www.grainger.com/. They sell safety equipment, plumbing supplies, and more, and they report to D&B. You will need a business license, EIN, and a DUNS number.

For less than $1000 credit limit they will approve virtually anybody with a business license.

Accounts That Don’t Report

Non-Reporting Trade Accounts can also be helpful. While you do want trade accounts to report to at the very 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.

Also credit accounts of any sort will help you to better even out business expenditures, consequently making financial planning simpler. These are companies like PayPal Credit, T-Mobile, and Best Buy.

Revolving Store Credit

Once there are 3 or more vendor trade accounts reporting to at least one of the CRAs move to revolving store credit.

Use the corporation’s EIN on these credit applications.

Fleet Credit

Are there more accounts reporting? Then progress to fleet credit. These are companies like BP and Conoco. Use this credit to buy, repair, and take care of vehicles. Make certain to apply using the business’s EIN.

Cash Credit

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

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

Learn more here and get started toward building business credit attached to your company’s EIN and not your SSN. Get money even in a recession!

How Hard is it to Establish Business Credit in a Recession: Monitor Your Business Credit

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

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

Disputing Mistakes

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

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

Disputing credit report inaccuracies also means you specifically detail any charges you challenge. 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 mailed in your dispute.

How Hard is it to Establish Business Credit in a Recession: A Word about Business Credit Building

So always use credit sensibly! Don’t borrow beyond what you can pay off. Monitor balances and deadlines for payments. Paying on time and fully will do more to boost business credit scores than virtually anything else.

Establishing corporate credit pays. Good business credit scores help a company get loans. Your credit issuer knows the corporation can pay its financial obligations.

They know the corporation is authentic. And the business’s EIN connects to high scores, and credit issuers won’t feel the need to require a personal guarantee.

How Hard is it to Establish Business Credit in a Recession: Takeaway

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

Obtaining merchant accounts for business credit means that you are on your way to getting good business credit.

These three should conveniently get you going. How hard is it to establish business credit in a recession? Pretty easy! So go out there and clobber it! Learn more here and get started toward establishing business credit.

The post How Hard is it to Establish Business Credit in a Recession? appeared first on Credit Suite.

The post How Hard is it to Establish Business Credit in a Recession? appeared first on Business Marketplace Product Reviews.

The post How Hard is it to Establish Business Credit in a Recession? appeared first on Buy It At A Bargain – Deals And Reviews.

How Hard is it to Establish Business Credit in a Recession?

Do you know? How hard is it to Establish Business Credit in a Recession?

It’s a brilliant question. How hard is it to establish business credit in a recession? Is business credit building impossible? Or is it just some nightmare? And what happens in an economic downturn?

I assure you it is not only possible, it is downright sure-fire. And business credit is all but recession-proof!

Business credit is credit in a business’s name. It doesn’t link to an owner’s personal credit, not even if the owner is a sole proprietor and the solitary employee of the corporation. Because of this, an entrepreneur’s business and consumer credit scores can be very different.

The Advantages

Because business credit is distinct from individual, it helps to safeguard a business owner’s personal assets, in the event of court action or business insolvency. Also, with two separate credit scores, an entrepreneur can get two separate cards from the same merchant.

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 frustration. But building small business credit, when done right, is a plan for success.

Individual credit scores are dependent on payments but also additional considerations like credit usage percentages. But for small business credit, the scores actually merely depend on whether a corporation pays its invoices timely.

How Hard is it to Establish Business Credit in a Recession: The Process

Establishing business credit is a process, and it does not occur automatically. A corporation will need to proactively work to build business credit. Nonetheless, it can be done readily and quickly, and it is much swifter than developing individual credit scores.

Merchants are a big component of this process.

Doing the steps out of sequence will cause repetitive rejections. 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 rejection 100% of the time.

Learn more here and get started toward building business credit attached to your company’s EIN and not your SSN. Get money even in a recession!

How Hard is it to Establish Business Credit in a Recession: Company Fundability

A business has to be authentic to lenders and vendors. As a result, a company will need a professional-looking website and email address, with website hosting from a company like GoDaddy. Additionally business phone and fax numbers need to have a listing on ListYourself.net.

At the same time the company telephone number should be toll-free (800 exchange or the like).

A company will also need a bank account dedicated strictly to it, and it must have every one of the licenses essential for running. These licenses all must be in the accurate, accurate name of the company, with the same business address and phone numbers.

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

How Hard is it to Establish Business Credit in a Recession: Dealing with the Internal Revenue Service

Visit the IRS web site and obtain an EIN for the small business. They’re free of charge. Select a business entity like corporation, LLC, etc.

A small business can start off as a sole proprietor. But will most likely wish to switch to a form 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 owner is it when it comes to liability and tax obligations. No one else is responsible.

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

If you do not, then your personal name is the same as the small business name. Therefore, you can find yourself being directly responsible for all company debts.

And also, per the IRS, with this structure there is a 1 in 7 probability of an IRS audit. There is a 1 in 50 chance for corporations! Prevent confusion and drastically lower the odds of an Internal Revenue Service audit as well.

Learn more here and get started toward building business credit attached to your company’s EIN and not your SSN. Get money even in a recession!

How Hard is it to Establish Business Credit in a Recession: Starting off the Business Credit Reporting Process

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

Once in D&B’s system, search Equifax and Experian’s websites for the company. 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 something to report on.

Trade Lines

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

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

These kinds 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 credit issuers who will give you initial credit when you have none now. Terms are oftentimes Net 30, instead of revolving.

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

Details

Net 30 accounts must be paid in full within 30 days. 60 accounts need to be paid in full 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 made use of.

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

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

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

And Continue…

So get 3 of these to move onto the next step, which is revolving store credit.

1. Uline Shipping Supplies

Uline Shipping Supplies is a true starter vendor. Find them online at https://www.uline.com/. They offer shipping, packing, and industrial supplies, and they report to D&B and Experian.

You need to have a DUNS number. They will ask for 2 references and a bank reference. The initial few orders may need to be paid in advance to initially get approval for Net 30 terms. Also, you may need to buy some things you do not need.

2. Crown Office Supplies

Crown Office Supplies is another true starter vendor. Find them online at https://crownofficesupplies.com.

They sell a variety of office supplies and take helping clients seriously. They say, “just starting your business, or maybe have an existing business, but you have a question regarding office supplies… we are here to help!” And they report to Dun and Bradstreet, Experian, and Equifax.

There is a $99.00 yearly fee, though they do report that fee to the business credit reporting agencies. For other purchases to report, the purchase must be at least $30.00. Terms are Net 30.Fundability in a Recession Credit Suite

3. Grainger Industrial Supply

Grainger Industrial Supply is also a true starter vendor. Find them online at https://www.grainger.com/. They sell safety equipment, plumbing supplies, and more, and they report to D&B. You will need a business license, EIN, and a DUNS number.

For less than $1000 credit limit they will approve virtually anybody with a business license.

Accounts That Don’t Report

Non-Reporting Trade Accounts can also be helpful. While you do want trade accounts to report to at the very 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.

Also credit accounts of any sort will help you to better even out business expenditures, consequently making financial planning simpler. These are companies like PayPal Credit, T-Mobile, and Best Buy.

Revolving Store Credit

Once there are 3 or more vendor trade accounts reporting to at least one of the CRAs move to revolving store credit.

Use the corporation’s EIN on these credit applications.

Fleet Credit

Are there more accounts reporting? Then progress to fleet credit. These are companies like BP and Conoco. Use this credit to buy, repair, and take care of vehicles. Make certain to apply using the business’s EIN.

Cash Credit

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

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

Learn more here and get started toward building business credit attached to your company’s EIN and not your SSN. Get money even in a recession!

How Hard is it to Establish Business Credit in a Recession: Monitor Your Business Credit

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

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

Disputing Mistakes

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

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

Disputing credit report inaccuracies also means you specifically detail any charges you challenge. 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 mailed in your dispute.

How Hard is it to Establish Business Credit in a Recession: A Word about Business Credit Building

So always use credit sensibly! Don’t borrow beyond what you can pay off. Monitor balances and deadlines for payments. Paying on time and fully will do more to boost business credit scores than virtually anything else.

Establishing corporate credit pays. Good business credit scores help a company get loans. Your credit issuer knows the corporation can pay its financial obligations.

They know the corporation is authentic. And the business’s EIN connects to high scores, and credit issuers won’t feel the need to require a personal guarantee.

How Hard is it to Establish Business Credit in a Recession: Takeaway

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

Obtaining merchant accounts for business credit means that you are on your way to getting good business credit.

These three should conveniently get you going. How hard is it to establish business credit in a recession? Pretty easy! So go out there and clobber it! Learn more here and get started toward establishing business credit.

The post How Hard is it to Establish Business Credit in a Recession? appeared first on Credit Suite.

How a Good D&B Business Credit File Can Help In Hard Economic Times

No one realized when the year started that a crushing recession would follow a global pandemic.  And yet, here we are living in this post COVID-19 world.  Here’s how a good D&B business credit file can help you survive.

Everything you Need to Know about Your D&B Business Credit File and the Other Business Credit Reporting Agencies

When it comes to your business, business credit is one of the most important things you can focus on.  Of course, you should keep your main focus on actually running the business. In hard times however, like during a recession, you will be glad you paid some attention to your business credit.   Dun and Bradstreet is the largest and most widely used business credit reporting agency, or CRA.  If you do not have a D&B business credit file, many lenders consider you  to not have credit. There are other CRAs that are worth mentioning however.

It can help to understand a little more about business credit and how it can help in a recession.  What makes it so special?  Who needs it?  How do you get it?

Why Business Credit?

There are a number of reasons why it is important to actively build business credit.

It Shields Your Personal Credit Report

It is important to organization success that you develop business credit. Without a business credit score, your capability to fund your business rests entirely on your individual credit score. That’s not a big deal if you have great personal credit.

However, business financing can impact your personal credit scores as well.  If you finance your business on the merits of your personal credit, you will likely find your balances stay near your limits.  On personal cards the limits are not as high as most business cards allow.

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

This has a negative effect on your credit report.  It is true even if you are making your payments on time. If your business has its very own credit report, it’s not a problem. Limits are higher, so you have a lot more credit to deal with. Regardless, it doesn’t impact your personal credit score.

When you have solid business credit, you have access to the funds you need to run your business.  Not only that, but you can do what you need to do without worrying about exhausting cash reserves.

In short, business credit opens the door to higher limits, lower interest rates, and it protects your business transactions from affecting your personal credit.  This is especially important during a recession.  Imagine how much harder hard times would be if your personal credit was declining due to business issues.

Business Credit vs. Personal Credit

It is also difficult to see how a D&B Business credit file, or any business credit file, is necessary if you do not understand the differences between business credit and personal credit.  We break it down here.

Key Differences Between Personal Credit Reports and Business Credit Reports:

  • Personal FICO scores range from 300 to 850
  • Business credit scores usually range from 0 to 100.
  • FICO algorithms are commonly used by consumer credit bureaus to generate a credit score.
  • Business credit scores do not follow industry standard algorithms, meaning they can vary greatly between credit reporting agencies.
  • Business credit usually include only accounts that are in your company’s name. Your personal accounts are on your personal credit report.
  • You can get a free copy of your personal credit report from the three major consumer credit reporting agencies each year. This includes Experian, Equifax, and TransUnion.  There are also several free options for getting a glimpse at your credit scores at any given time.
  • Business credit is quite different when it comes to accessibility. You have to pay to see your company’s credit report and to find out the score at all three major business credit reporting agencies, including Dun and Bradstreet, Experian, and Equifax.
  • Not just anyone can see your personal credit report, but business credit reports are public. Anyone that wants to pay can see your business credit, including your D&B business credit file.

What Makes the D&B Business Credit File So Special?

Besides being the largest and most commonly uses, they offer way more than just a single business credit score. There are many reporting options that lenders can choose from to assess the credit worthiness of a specific business. Here is a breakdown of what they offer, with an explanation of what it all means.

Credit Reporting at Dun and Bradstreet: What Does Dun and Bradstreet Do?

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The quick answer is they provide lenders with business credit reports to help them make lending decisions.

There are six different Dun and Bradstreet reporting options. All of them measure different areas of credit worthiness.   The most popular option is also the easiest to understand.  It is the PAYDEX.   Generally speaking, this is the Dun and Bradstreet credit score most like the consumer FICO score.  It measures the speed of payment.  The score ranges from 1 to 100.  A 70 or higher is “good.” For example, a score of 100 means that the company makes payments in advance, and a score of 1 indicates that they pay 120 days late, or more.

What Else Does a D&B Business Credit File Include?

In addition to the PAYDEX, there are many other options for a business credit report on you D&B business credit file.

●       Dun and Bradstreet Delinquency Predictor Score

The delinquency predictor score measures the likelihood the company will not pay, will be late paying, or will fall into bankruptcy.  The scale is 1 to 5, and a 2 is good.

●       Financial Stress Score

The financial stress score is a measurement of the pressure on a company’s balance sheet.  It indicates the likelihood of a shutdown within a year.  It measures with a minimum of 5 and a maximum of 1, with a score of 2 being a good thing.

  • Supplier Evaluation Risk Rating

This is a rating that ranks the odds of a company surviving 12 months.  The minimum score is 9 and the maximum is 1.  A score of 5 is good.

  • Credit Limit Recommendation

The credit limit recommendation shows a business’s borrowing capacity.  It is a dollar amount recommendation for how much debt a company can handle. Typically creditors use it to determine how much credit to extend.

  • D&B Credit Rating

This is an estimation of overall business risk on a scale of 4 to 1.  A two is good.  The rating includes letters, the combination of which indicate a company’s net worth.

Even if there isn’t enough information on a business to assign a regular rating, Dun and Bradstreet will assign what they call a Credit Appraisal Score.  This is based on number of employees. Another option is an alternative rating based on what data is actually available.

What Goes into a Credit Rating on Your D&B Business Credit File?

The different scores and ratings are based on information from a number of places. The first is the business itself, but they also tap into public records.  A business must submit a financial statement to D&B before they can have a full rating.  In the absence of that, they give a limited rating based on number of employees.  For example, the rating would be 1R if the business has 10 employees or more, and 2R if they have less than 2 employees.

A composite credit appraisal may also be available in the absence of a financial statement in your D&B business credit file.  A business is only eligible for a rating up to a 2 in this case however. You do not get a 1 rating without a financial statement.

You can also self-report trade references to D&B, in addition to financial statement. This makes it easier to build business credit faster.  You will need a D-U-N-S number, of course.  It is free and easy to get on their website.

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Dun and Bradstreet and the Commercial Credit Score

The commercial credit score is the term used to describe the actual business credit score.  It has three separate parts. Each predicts how likely the business is to default on bills or become delinquent.  Following are the three parts and the scales by which they are ranked.

●       Commercial credit score

Measured on a scale of 101 to 670, it predicts the probability of a company becoming delinquent.  A score of 101 is most probable, so that’s bad.  A score of around 500 is good.

●       Commercial credit percentile

This is measured on a scale of 0 to 100.  It measures the probability of delinquency as well, but against other companies in the Dun and Bradstreet system.  A score of 1 is the highest probability compared to other businesses in the system, and most say a score of 80 is good.

●       Commercial credit class

This is a method of dividing businesses into classes based on the probability of delinquency.  Companies in class 1 are the least likely to be delinquent.  If you are in class 2, that’s good.

Who Are the Other CRAs?

You hear so much about Dun and Bradstreet, it is easy to forget that there are other agencies that offer business credit reports.

Equifax

They collect their information in ways similar Dun and Bradstreet, including: information from public records, financial data from the business, and payment history from creditors.  In addition, they factor information about credit utilization, or how much credit a business is currently using versus how much they have available, into their calculation.

They then use the information collected to generate various scores, similar to those on your D&B business credit file, but not the same.  These scores include the business credit risk score and the business failure score. The business credit risk score measures how likely it is that a business will become 90 days or more delinquent on bills over the next 12 months.  It ranges from 101 to 992.  The business failure score ranges from 1,000 to 1610, and it predicts how likely it is that the business will file for bankruptcy over the next year.  The lower the score, the higher the risk.

Another score they offer is the business payment index.  This is their version of the D&B PAYDEX, and it even runs on the same scale, 0 to 100.  It indicates payment history over the past year.  Different from the PAYDEX however, you have to reach a score of 90 or higher for it to be a “good” score.

Equifax also offers business identity reports that serve as confirmation that a company actually exists. It also verifies details such as the company’s tax ID, number of employees, and yearly sales.

Equifax does not allow business owners to request a report on their company.  They decide themselves when to start a credit file on a specific company.

Experian

Your Experian report could be a lot different than the one from your D&B business credit file.  Their credit ranking, Intelliscore, uses more than 800 variables to predict a company’s risk of defaulting or becoming delinquent. A 76 or higher is considered good with Intelliscore.  That indicates a low risk of late payments or default.  A score from 51 to 75 indicates a low to medium risk and 26 to 50 indicates medium risk.  From 25 down 1 is medium high to high risk.

Intelliscore is considered a blended score of both the business and business owner’s information.  It offers insights into a business’s public record findings, collections, payment trends, and overall business background. A major difference between Experian and the other two characters is that they do not ask businesses to self-report at all.  Rather, they collect all the information themselves. Since it includes personal information, you do have to give permission for a lender to view this report.

Specifically, the Experian credit ranking gives insights into a company’s payment trends, public record filings, collections, and general business background. The result is a blended score calculated using both the business and business owner’s information.

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The Experian Database and Credit Report Generation

Experian’s database has information on over 27 million businesses.  Reports are generated with information from the database, which houses information on bankruptcy filings, payment history, collections, banking, insurance, and leases.

There has to be a minimum amount of information in the database about a business before Experian will generate a score for it. There must be at least one tradeline in the system, so you should definitely do business with a company that will report to Experian if you want to build business credit.

Your D&B Business Credit File and Those from Experian and Equifax Can Make All the Difference During a Recession

You can’t know or choose which one your lender will use to base their decision upon.  That means it is important to build strong business credit with each one.  While a lot of this is out of your control, you can choose which starter vendors you work with.  Since not all starter vendors report to all credit reporting agencies, you need to make sure you do business with a variety that report to each one.  Then you can be on your way to building strong business credit.

 

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5 Ways House Flippers Use Hard Money Funding

House flippers are always looking for the next big deal. One easy way that house flippers can earn more for their flips is by using hard money funding.

Hard money loans can work for almost every real estate transaction that a house flipper can face. For house flippers looking into diversifying their investments, hard money financing can be a dream come true.

Hard money loans are asset-based loans that can fund any real estate investment. These loans are based on the property value. There is no need for background checks or credit scores. Some lenders even offer hard money loans based on the after-repair value of a home. Hard money lenders make house flipper financing easy with their asset-based loans.

The best news for house flippers is that they can use hard money funding for more than flips. For those looking for house flipper funding, using hard money loans is a great way to start your investments.

Here are all the different ways house flippers use hard money funding.

House Flipping

For house flippers, having fast funds for their flips is a necessity. House flipping is as easy as buying a property, repairing it and selling it for a profit. Many know of house flipping thanks to very popular television shows.  House flipping has only become more and more popular over the years. So there is a lot of information for those looking to start flipping.

House flippers love using hard money loans for their flips. House flippers can easily find hard money funding for their properties.  Flipper funding is what most house flippers use hard money loans for. Hard money funding makes flipping a home easy as they allow you to buy properties, make repairs, and flip the homes for profit.

Fix and Flip loans are one of the most common types of hard money loans. These hard money loans are made for house flippers looking to flip a property by making some upgrades and selling it for a profit. Hard Money funding is perfect for house flippers who want to buy a property today.

These loans are short term loans (6 months to 12 months) that cover almost all the house flipping costs. Hard money funding is not only used to cover the property value of the home. It also pays for a portion of the repairs needed to flip. 

For example, some hard money lenders in Phoenix even offer to base the loan on the after repair value of the flip. This gives the house flipper more funds to flip with.

These hard money loans help house flippers buy, repair and flip faster than ever with hard money funding.  

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Long Term Rentals

House flippers don’t always sell the homes they repair. Many make passive income by renting their properties to generate passive income for their next property.

For those looking to acquire and upgrade large rentals, hard money funding is essential. This type of flipper financing makes buying a property easy. It does so by lending on the underlying asset of the property instead. To make the most of their long-term rentals, upgrading and repairing the property is essential. So hard money loans make this easy.

Hard money loans are based on the after-repair value of the property. So getting funded and approved for the loans is easy. House flipper funding for large one-time repairs to a property helps improve the property for higher rents. It also helps to offset the cost of the repairs.

Vacation Rentals

With alternative rental sites such as Airbnb becoming more and more popular, house flippers are looking into flipping vacation rentals.

Vacation rentals are a great way to generate passive incomes without the hassle of being a landlord. Short term rentals offer the benefits of lucrative revenue streams. They are a way to use properties for their highest earning capacity.

To make the most of their vacation rental, house flippers use hard money funding to make their rentals stand out. Large repairs such as pools are a necessity. Modern upgrades are necessary to ensure solid bookings throughout the year. For high travel areas, the best location, and best amenities will ensure a high occupancy rate. This results in even more passive income for the house flipper.

Using house flipper financing to make upgrades is faster than using a traditional lender. Like all flipper financing, the loan is based on property value and not the applicant’s credit history. House flippers use these loans to upgrade their rentals. This can make them more attractive to travelers.

Hard Money Funding and Home Rehabs

House flippers love to pay in cash, and sometimes are only looking for hard money funding for repairs.

Home rehabs are ideal for one-time large repairs. This can be for a flip that they bought cash, a rental, or anything in between.

Often when looking to charge more in rent, house flippers will add amenities and upgrades to their properties using flipper funding. Home rehabs can also be great for investors looking to sell off property and maximize their return by adding a few upgrades.

Often house flippers use hard money funding for kitchen rehabs, new roofs, or even large foundational repairs.

With only using flipper financing for the repairs, the house flipper can save money on down payments. This means a larger profit margin.

Hard money funding is a great way to add large upgrades and make flipping a home easy. Companies like Prime Plus Mortgages  will work with house flippers to maximize their properties and offer the best repairs that should be made.

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Refinancing

Refinancing a house flip isn’t easy. Thankfully house flippers using hard money funding can get their projects back on track fast.

Sometimes house flippers will need to refinance properties to prevent foreclosures, get better rates, or get more cash to finish their flip. Bridge loans, a special type of flipper funding, can help flippers complete their projects save them from foreclosure.

Bridge loans work to ‘bridge’ cash gaps for a property. This cash is used to either finish the flip, sell the property, or prevent foreclosure. Due to the nature of these loans, they move fast to get the flipper money as soon as possible. Bridge loans are also extremely fast to get. Some approval is within 24 hours of application!

Sometimes, house flippers will use these loans to buy foreclosed properties. This is using hard money funding to buy auction properties. This makes them a great option for someone looking to pounce on a great deal in the fast-moving real estate market. Sometimes bridge loans fund short sale loans, or even acquire off-market properties.

With refinancing their loans, they can finish their projects and make money on properties in different ways.

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Summary

Hard money funding helps house flippers for any of their investments. For house flipper funding having quick funds is vital for their business.  House flippers need flexible funds that help create revenue streams and profit.

Many house flippers like hard money funding to get the capital they need for their properties.

For house flippers having hard money loans are a no-brainer. These loans are flexible, fast, and hassle-free, making it easy to get funding when they need it.

Hard money funding is perfect for house flippers who don’t have good credit or have spotty employment histories. Hard money is based on the real estate value for a flip, making it perfect for house flipper financing. And it is also quick to fund, with loans approved in as little as 12 hours, and loans funded in as little as two days. Some hard money lenders make it easier than ever and offer completely virtual applications.

Here are all the ways that house flippers use hard money funding:

Hard Money Funding and House Flipping

House flippers use this flipper financing to quickly get money for their flips. This loan covers most of the sales price, repairs, and list costs. All the loans can be funded in as little as two days do flippers can start flipper A.S.A.P.

Long term Rentals

House flippers do more than flip. For those looking to build passive income, this flipper funding is perfect for large one-time repairs.  

Hard Money Funding and Vacation Rentals

For those house flippers living in travel hubs, having house flipper funding is perfect for a rental. Vacation rentals can turn over large profits but will require large repairs and attracts to get more bookings. For adding pools, and making a top-tier rental, this type of loan is perfect.

Home Rehabs

Paying cash for a property is a great way to lower your costs for a property, but leaves gaps for funding repairs. For those looking to fund their repairs, house flipper financing is a great way to make sure projects finish on time.

Refinancing

Whether it’s to prevent foreclosure, fill in cash flow, or to make sure a project is done on time. This type of house flipper funding is ideal for those house flippers who need a one-time influx of capital.

Have you ever used hard money funding?

Catherine Way Hard Money Funding Credit Suite

 

 

About the Author: Catherine Way graduated from Michigan State University with her Bachelor of Advertising, with a specialization in Graphic Design. She is a content marketer for business, mortgage, and real estate industries. She currently writes and reports for Prime Plus MortgagesPrivate money lenders Arizona

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Building Business Takes a Lot of Hard Work, but it Isn’t as Hard as You May Think

The key to building business successfully is to set your business up for success in the beginning.  Everyone knows that the key to building anything strong is to have a solid foundation, and the same is true of building a business.

Building Business Means Setting Up a Strong Foundation and Following Through

No one wants to go back to the beginning to build a foundation. It is always best to take the extra time to build a solid foundation on the front end.  That usually takes some extra work and more than a few extra steps. While it’s true that building business is not for the faint of heart, this extra work is always worth it.  Here is how to begin setting up your business for success. 

Building Business: It’s all in the Plan

Not only is a business plan necessary when it comes to getting business loans, but it is necessary to the day to day operations of your business as well.  Virtually all successful entrepreneurs will tell you that a major key to success is to plan to work and work the plan.  

Most traditional lenders are going to need to see a business plan as part of the loan application process.    Truthfully, it’s best to hire a professional business plan writer if possible. They can work with you to get all the necessary information and put it together in the traditional  format.  

If you cannot hire a business plan writer however, there other options. The Small Business Administration offers a template, and your local small business development center may also be able to help.

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For a business plan to be taken seriously by a lender, it needs to include the following: 

A Strong Opening 

 An Executive Summary

 This is a complete summary of the business idea. 

Description

The description goes into further detail than the summary, describing the business. This is where you work to build excitement about your business. 

Strategies

Layout your plan for getting started. Do you have a marketing plan, area in mind for location, or idea of how many employees you will start with? What is your ramp up plan? 

Market Research 

Market Analysis

This actually includes two parts. All that market research you did goes here: 

Analysis of audience

What need will your business fill, and for who? Are you a child care facility filling a need for affordable child care for working moms? Are you an eatery filling a need for a lunch spot for those working downtown? How will your business fill the need? All of that information goes in this section. 

Competitive Analysis

Is there already a business working to fill this need? Is there room for more? How do you plan to compete with them? 

If you are not a new business, this will be a market analysis that supports your need for funding, or that shows your business is strong and growing.

The Plan 

Plan for Design and Development

How is all of this going to play out, from start to finish. What steps are you going to take? This is more detailed than your strategies section.

Plan for Operation and Management

Who will own or does own the business and who will run or currently runs it from day to day. This could be as simple as stating that you are the sole owner and operator, or as complicated as laying out a complete partnership plan or board or directors’ format. It just depends on how your business works. 

Financials

Financial Information

This section includes current financials, projections, and a budget plan for the loan funds you are applying for.  Lenders need to see that you know how to handle the funds you get, and that you have a plan to pay them back.

Working the Plan 

Don’t fall into the trap of thinking the official business plan is only for lenders to help you get loan approval.  It isn’t. Your business plan should be a useable, practical tool that you can follow and refer back to. That is key to building business.   Are sales down? Refer to your plan. Struggling with cash flow? What does the plan say? Work the plan you worked so hard on and trust the process. Also, remember to revisit the plan occasionally even if things are going well to look for ways to improve it, or adjust it if necessary.

Building Business: Licenses

Do you need a business license?  What type of license do you need?  Ask yourself these questions and find the answers to begin building business on a solid foundation.  

Which Types of Business Licenses Do You Need?

If a federal agency regulates your business activities, you will need a federal license.  The Small Business Administration lists the following industries as needing a federal license.

    • Agriculture
    • Alcoholic beverages
    • Aviation
    • Firearms, ammunition, and explosives
    • Fish and wildlife
    • Commercial fisheries
    • Maritime transportation
    • Mining and drilling
    • Nuclear energy
    • Radio and television broadcasting
    • Transportation and logistics

The SBA also has a wealth of other information you need to know for starting your business, from help writing a business plan to finding funding.

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Building Business: What Funding Options are Available

There are a number of funding options available to help you when building business.  Which one you choose will depend on a number of variables. It’s likely the best option will be some combination of the many possibilities, including how fundable your business is.  We break them down for you below.

Traditional Term Loans 

These are the loans from traditional lenders such as banks and credit unions.  As a business, your business credit score can help you get some types of funding even if your personal score isn’t awesome.  That isn’t necessarily the case with this type of funding however. 

With a traditional lender term loan, you are almost always going to have to give a personal guarantee.  This means they will check your personal credit. You will need a personal credit score of 700 or higher to gain approval usually, with the best terms and rates coming at 750 or higher.  

Of all of the available business funding types, this is the hardest to get, but is also typically the option with the lowest interest rates and most reasonable terms.

SBA Loans

These are traditional bank loans, but they have a guarantee from the federal government. The Small Business Administration works with lenders to offer small business loans  that they may not be able to get otherwise based on their credit history. Because of the government guarantee, lenders are able to relax a little on the personal credit score requirements. 

In fact, it is possible to get an SBA micro-loan with a personal credit score between 620 and 640. These are very small loans, up to $50,000.  Personal collateral is also usually a requirement. 

 The trade-off with SBA loans is that the application process is long and involved. 

Business Line of Credit 

This is basically the traditional lender’s version of a business credit card. The credit is revolving, meaning you only pay back what you use, just like a credit card. However, rates are typically much better than a credit card.  The application and approval process is similar to that of a traditional term loan. 

If you need revolving credit and can qualify for a term loan, this is a good option. It is great for bridging cash gaps and covering short term expenses without the high credit card interest rates. 

There are no cash back rewards or loyalty points.  This makes some business owners prefer business credit cards despite higher interest rates. 

Invoice Factoring 

If you are an established business with accounts receivable, then you might consider invoice factoring. This is where the lender buys your outstanding invoices at a premium, and then collects the full amount themselves. You get cash right away, without waiting for your customers to pay the invoices.

This is a good option if you need cash fast.  It can also work if you do not qualify for other funding types. The interest rate varies based on the age of the receivables.

Non-Traditional Lenders

These are private lenders, not traditional banks and credit unions, that offer terms loans.  Usually they operate online. The difference between these and traditional lenders is that the loans have looser approval requirement and a much faster application process. Most often you can simply apply online, get approval in as little as 24 hours, and the funds are in your account within 24 to 48 hours after approval. 

These are an option if your personal credit isn’t terrible and you need money quickly.

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Crowdfunding

Crowdfunding is a newer option for finding investors. While the average Joe that wants to start a business needs funding, it is not always possible to find one or two large investors. With crowdfunding, you can literally have a crowd of investors fund your business in $5 and $10 increments. 

There are many crowdfunding sites, but Indiegogo and Kickstarter are the most popular. The platforms are similar but there are some important differences. The most obvious is the timing of when you actually receive the funds that other invest in your company.

Find out more about each option here

Grants 

These are typically offered by professional organizations. There are some government grants available also. Competition can be stiff, but they are definitely worth applying for if you think you may qualify. 

While requirements vary from grant to grant, and most are only awarded to a certain number of recipients, this is an option is worth looking into if you fall into one of these basic categories. 

  • Women owned business
  • Minority owned business
  • Businesses run by veterans
  • Businesses in low income areas

 There are also some corporations that offer grants in a contest format that do not require much other than that you meet the corporation’s definition of a small business and win the contest. 

Business Credit Cards 

These get a bad rap, but in lieu of another option, they aren’t a bad option. The draw is that they are available to most, even if their credit score that isn’t awesome. The catch is, the lower the credit score, the higher the interest rate. Also, there are limits on how low they will go with a credit score. 

However, this is one type of funding that most of the general public is eligible for at any given time. They do a credit check, but your credit doesn’t have to be as high as it would be to gain approval for a traditional loan. 

 The downside of business credit cards is that they typically 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. 

Building Business: Marketing

Once you have your foundation set, you have to actually build up the business.  That means getting others to buy whatever you are selling. Marketing is a term used for getting your product and service out there for others to see.  

The number one beginner tip for marketing is to know who you are marketing to.  You need to know what types of people will be buying your product so that you know how to convince them they need it.  This step was probably taken care of in the marketing section of your business plan.  

How you market will vary based on your budget, but these days social media marketing is huge.  It’s a lower cost option than traditional television and news print, yet highly effective. If you can get just one post to go viral, you’ve done something.  Get people talking about your product on social media and your marketing could basically be done for you, depending on what you are selling.

Of course, there is still a place for, and even a need for, traditional marketing when building business.  Generally speaking, the best bet is to hire a professional to handle all aspects of marketing.

Building Business: Networking

This is an aspect of building business that so many do not really think about until after the fact.  It can have a huge impact though. Of course, these days, as with marketing, much networking is done online through social media channels. There is something to be said for face to face connections however. 

While much of your business may be run online, limiting face to face interaction, take some time to consider ways to connect locally.  There could be those that need your services or product right in your area. Try joining your local chamber of commerce. They typically have events like business after hours that support this type of networking. 

Building Business Isn’t Hard, but it Does Take Work

Building a successful business takes a lot of hard work and a lot of luck.  Things can go wrong, even if you do everything right. You have to have a business plan, find funding, nail marketing, and work at networking.  However, if you set yourself up for success in the beginning, work hard, and don’t lose momentum, you may end up with something fabulous.

 

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