Tag: Help

Debt Help For Mortgage Financing

Credit Scores Help For Mortgage Financing

Funding a brand-new home mortgage? Be cautious of “aggressive loan providers.”
In November 2005, Montgomery County, Maryland’s region council established regulation to broaden the groups of inequitable financing tasks connected with inequitable real estate techniques as well as enhanced the optimum penalty for such tasks from $5,000 to $500,000. The council sited techniques such as billing excessive quantities for early repayment charges, factors, as well as fines; guiding consumers towards much more costly home loans; and also re-financing present home mortgages with brand-new ones that customers will not have the ability to pay off based upon their earnings or credit score.
Predacious lending institutions normally target what’s called the nonprime home loan market, where individuals with poor credit rating documents attempt to obtain cash for houses in much less preferable communities, which implies that it’s typically minority teams, such as African-Americans and also Latinos, that are the targets of aggressive loaning techniques.
February 2006, the American Financial Services Association (AFSA), tested the judgment, competing that just the state has the power to establish regulation concerning home loan loaning techniques– although the AFSA went on document as opposing violent as well as biased financing techniques. The brand-new legislation was expected to work the 2nd week in March, yet home mortgage lending institution attorneys convinced a court to postpone the brand-new legislation, pending a hearing. It’s yet to be established if the Montgomery County regulation will certainly stay on the publications.
No matter of the result in Montgomery County, nevertheless, predacious borrowing techniques are unlawful in the majority of states. An additional typical method is firmly insisting that debtors likewise buy such points as debt life insurance coverage or various other items– once more, mainly made to produce even more revenue for the loan provider.
The lower line is that there are offering organizations that make a lot of cash by billing added charges to those customers that can the very least manage them, thus either robbing those debtors of the American desire for own a home or, even worse yet, establishing them up for ultimate repossession.
As the realty market decreases and also rate of interest approach, it’s more vital than ever before to come to be an educated customer. Find out the essentials of home mortgage loaning, so you’ll understand when you’re being billed excessive for a finance or for points you do not require. Search to see what’s readily available, and afterwards see to it you’re comfy with your financing repayment, due to the fact that you’ll be paying that quantity for several years.
Copyright © & duplicate; 2006 Jeanette J. Fisher

February 2006, the American Financial Services Association (AFSA), tested the judgment, competing that just the state has the power to pass regulation relating to home loan borrowing methods– although the AFSA went on document as opposing violent and also prejudiced loaning methods. The brand-new legislation was expected to take result the 2nd week in March, however home mortgage loan provider attorneys convinced a court to postpone the brand-new regulation, pending a hearing. Find out the fundamentals of home mortgage loaning, so you’ll recognize when you’re being billed as well a lot for a finance or for points you do not require.

The post Debt Help For Mortgage Financing appeared first on ROI Credit Builders.

Debt Help For Mortgage Financing

Credit Scores Help For Mortgage Financing

Funding a brand-new home mortgage? Be cautious of “aggressive loan providers.”
In November 2005, Montgomery County, Maryland’s region council established regulation to broaden the groups of inequitable financing tasks connected with inequitable real estate techniques as well as enhanced the optimum penalty for such tasks from $5,000 to $500,000. The council sited techniques such as billing excessive quantities for early repayment charges, factors, as well as fines; guiding consumers towards much more costly home loans; and also re-financing present home mortgages with brand-new ones that customers will not have the ability to pay off based upon their earnings or credit score.
Predacious lending institutions normally target what’s called the nonprime home loan market, where individuals with poor credit rating documents attempt to obtain cash for houses in much less preferable communities, which implies that it’s typically minority teams, such as African-Americans and also Latinos, that are the targets of aggressive loaning techniques.
February 2006, the American Financial Services Association (AFSA), tested the judgment, competing that just the state has the power to establish regulation concerning home loan loaning techniques– although the AFSA went on document as opposing violent as well as biased financing techniques. The brand-new legislation was expected to work the 2nd week in March, yet home mortgage lending institution attorneys convinced a court to postpone the brand-new legislation, pending a hearing. It’s yet to be established if the Montgomery County regulation will certainly stay on the publications.
No matter of the result in Montgomery County, nevertheless, predacious borrowing techniques are unlawful in the majority of states. An additional typical method is firmly insisting that debtors likewise buy such points as debt life insurance coverage or various other items– once more, mainly made to produce even more revenue for the loan provider.
The lower line is that there are offering organizations that make a lot of cash by billing added charges to those customers that can the very least manage them, thus either robbing those debtors of the American desire for own a home or, even worse yet, establishing them up for ultimate repossession.
As the realty market decreases and also rate of interest approach, it’s more vital than ever before to come to be an educated customer. Find out the essentials of home mortgage loaning, so you’ll understand when you’re being billed excessive for a finance or for points you do not require. Search to see what’s readily available, and afterwards see to it you’re comfy with your financing repayment, due to the fact that you’ll be paying that quantity for several years.
Copyright © & duplicate; 2006 Jeanette J. Fisher

February 2006, the American Financial Services Association (AFSA), tested the judgment, competing that just the state has the power to pass regulation relating to home loan borrowing methods– although the AFSA went on document as opposing violent and also prejudiced loaning methods. The brand-new legislation was expected to take result the 2nd week in March, however home mortgage loan provider attorneys convinced a court to postpone the brand-new regulation, pending a hearing. Find out the fundamentals of home mortgage loaning, so you’ll recognize when you’re being billed as well a lot for a finance or for points you do not require.

The post Debt Help For Mortgage Financing appeared first on ROI Credit Builders.

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. new biz funding Credit SuiteBecause 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.

The post 20 Sources of New Business Funding to Help You Get Started appeared first on Credit Suite.

46 Crowdfunding Resources Available to Help You Run Your Campaign

Are you looking for crowdfunding resources? You’ve come to the right place. There are videos, books, articles, blogs, and even special tools to help you run the most successful campaign possible. 

Of course, some of the information these resources offer will not be as useful to you as others.  It all depends on your unique needs and situation. Do take the time to browse them all, even those that are written specifically for a platform you do not intend to use.  You may be surprised at what you can learn and what advice can cross over.

Be aware too, that each platform has its own set of rules. Do not neglect to read the regulations and FAQs for whichever platform you choose to go forward with.

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Keep your business protected with our professional business credit monitoring.

Try These 46 Crowdfunding Resources to Help You Run a Successful Campaign

Regardless of how many crowdfunding resources you find or how successful your campaign is, you will still need to build fundability for your business.  Crowdfunding won’t work forever, and you need to be sure you have every funding option possible available to you. The best way to do that is to ensure your business is as fundable as possible. 

In truth, fundability is much more important than building the perfect crowdfunding campaign.  That doesn’t mean you should give up on crowdfunding, but you definitely can’t rely on it. It may work, but it may not.  So, building fundability will ensure you have access to the funding you need throughout the life of your business. 

What is Crowdfunding? 

Crowdfunding sites allow you to inform thousands of micro investors about your business or business idea. Anyone who wants to can invest as much or as little as they want.  

Investors pledge a broad range of amounts depending on the campaign and the platform in use. They may give $50, they may give $150, or they may give over $500. Pledges can even go as low as $5.

Though not always necessary, most offer rewards to investors for their giving. Typically, this comes in the form of the product the business will be selling. Different levels of giving result in different rewards. For example, a $50 gift may get you one incentive, and a $100 gift will get you an upgraded version of that incentive, or something different all together.

Where Do You Get Started with Crowdfunding? 

There are many crowdfunding sites, but the most popular are Kickstarter and Indiegogo. Many crowdfunding resources are geared toward aiding in success on these two platforms.  Much of the advice these resources offer is useful on any crowdfunding campaign, but some is specifically useful on one of these two. 

The platforms are similar, but there are some very large differences. The most obvious is when you actually get the funds you raise. 

For example, with Kickstarter you have to reach your preset goal before you can receive the funds. If you set a goal to raise $12,000, investments have to reach that amount before you get your hands on any of the money. 

Indiegogo on the other hand lets you choose if you want to receive funds as they come in or wait until you reach your goal. In addition, they have the option for InDemand, which lets you continue to raise funds after your initial campaign is over.  There is no need to start a new campaign. 

Indiegogo also has a flexible funding option for those who may need it.

To make the choice for yourself, you need to figure out who your audience is, and which platform will best reach them.

The internet is full of advice and tools to help you fund a fabulous crowdfunding campaign. We’ve gathered some of them here in one place so you can get the best start possible.

crowdfunding resources Credit Suite

Keep your business protected with our professional business credit monitoring.

Platform Specific Crowdfunding Resources

Like I said, you’ll find many crowdfunding resources are geared toward help on a specific platform. Remember though, don’t underestimate a resource that is not geared toward your platform.  Certain aspects can be helpful regardless of the platform you use.

Kickstarter

Here are some great crowdfunding resources to help with success on Kickstarter.

  1. Hacking Kickstarter by Tim Ferriss 

  2. The Language that Gets People to Give: Phrases that Predict Success on Kickstarter

  3. Stonemaier Games — Kickstarter Lessons 

  4. Kickstarter Stats You Can Use 

  5. Also Kickstarter Step-By-Step: Making $15,000 in 28 hours

  6. Kickstarter Forum

  7. Better tools for project creators 

  8. Kickstarter Calculator 

  9. Kickstarter Creator Handbook

  10. The Five Dollar Movie 

  11. Potato Salad: By the Numbers 

  12. Kickstarter’s 2-billionth dollar statistics 

  13. Kickstarter Stats (official)

  14. What Successful Kickstarter Campaigns Have In Common

  15. How Much Is A Tweet Worth for a Kickstarter Campaign?

  16. How our $500K Kickstarter Crashed And Burned

  17. Why 84% of Kickstarter’s top projects shipped late

  18. The Kickstarter Fulfillment Report

  19. Comix Tribe Kickstarter Resources

  20. Kickstartup 

  21. Kicktraq 
  22. Kickstarter Budget Tool 

Indiegogo

Here are some crowdfunding resources geared toward Indiegogo users.

  1. Indiegogo — 12 Insights for 2012

  2. Indiegogo Playbook

  3. E-Sources for Crowdfunding Campaigners 

  4. Loochi 

Other Specific

These crowdfunding resources are geared toward specific platforms other than Kickstarter and Indiegogo.

  1. BackersHub Facebook Group

  2. Reddit Crowdfunding Thread

  3. RocketHub Success School

  4. Pozible Handbook

  5. FirstGiving Handbook

  6. PledgeMe Project Guide

Non-Platform Specific Crowdfunding Resources

These resources are not directed toward success on any specific crowdfunding platform.  Rather they can offer inspiration and direction on techniques and circumstances that should work regardless of the platform you choose. 

Videos

These video crowdfunding resources may be useful.

  1. Emily Best on Why Filmmakers Make The Worst Crowdfunding Videos 

  2. Taking the shame out of self-promotion 

  3. What getting rejected says about you 

Other Crowdfunding Resources

The following crowdfunding resources do not really fit into another category so we are calling them miscellaneous.

  1. Show Me the Money! An Analysis of Project Updates During Crowdfunding Campaigns

  2. I crowdfunded my PhD research

  3. The Two-Step Method for Easy Press Coverage

  4. The Era Of The Crowdfunded Business

  5. Pay Caesar His Due

  6. Hardware is hard

  7. Crowdfunding Campaign Tools

  8. 5 Effective and Free Publicity Tools to Boost Your Crowdfunding Campaign

  9. The Secret To Getting Exposure From Influencers (video)

  10. 6 Research-backed ways to get more followers on Twitter, Facebook, G+ and more

  11. Crowdfunding Forum

Don’t Put all your Eggs in the Crowdfunding Basket

Crowdfunding is a great option, but the cold hard fact is that it rarely works.  There are far more campaigns that fail than see success. Even those that are successful often end up not raising enough funds.  Then, entrepreneurs end up needing to seek out funds from other sources. 

These other sources may  include loans, invoice financing, and lines of credit.  Of course, grants are an option too. However, they are few and far between.  Furthermore, competition for grants is fierce. That leaves the financing options, and to be eligible for those, your business has to be fundable. 

Fundability if the ability of your business to get funding.  It is affected by many things. Business credit is a huge piece, as is personal credit.  However, it is impossible to have fundability regardless of your credit, if your business is not properly set up to be fundable.

crowdfunding resources Credit Suite

Keep your business protected with our professional business credit monitoring.

How to Set Up Your Business to Be Fundable

LIke I said, setting up your business to be fundable is not the only piece of the fundability puzzle.  However, it is the first piece that has to be placed and the biggest piece missed by most business owners.  Here is where you start. 

Contact Information

The first step in setting up a business to be fundable is to ensure it has its own phone number, fax number, and address.   You can still run your business from your home or on your computer if that is what you want.  

In fact, you can get a business phone number and fax number that will function over the internet rather than phone lines.  Also, the phone number will forward to any phone you want it to so you can simply use your personal cell phone or landline if you want.  

In addition, you can use a virtual office for a business address. This is a business that offers a physical address for a fee.  Sometimes they even offer mail service and live receptionist services.  Even better, there are some that offer meeting spaces for those times you may need to meet a client or customer in person. 

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.

Incorporate

Incorporating your business as an LLC, S-corp, or corporation is necessary to fundability.  This helps show your business is legitimate, and it gives some protection from liability. 

It does not matter which option you choose when it comes to fundability.  It does matter for your budget and needs for liability protection.  The best bet is to talk to your attorney or a tax professional.  Keep in mind, when you incorporate, you become a new entity. Basically, you have to start over. You’ll also lose any positive payment history you may have accumulated. 

As a result, you have to incorporate as soon as possible.  Time in business is important to fundability 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 you actually started doing business. 

Business Bank Account

You need a separate, dedicated business bank account.  Here’s why.  First, it will help you keep business finances separate from personal ones.  This is important for tax purposes.

But wait, there’s more.  You can’t get some types of funding without a business bank account.  Many lenders and credit cards want to see a minimum average balance.  In addition, you cannot get a merchant account without a business account at a bank. That means you can’t take credit card payments.  Generally, consumers spend more when they can pay by credit card.

Licenses

For a business to be legitimate, it has to have all of the licenses it needs to run.  Conversely, if it doesn’t, it will not appear to be a legitimate business.  Do the research you need to do to make sure you have all of the licenses you need to legitimately run your business at the federal, state, and local levels. 

Website

How can a business website affect your ability to get funding?  In today’s world, you do not exist if you do not have a website.  However, a poorly put together website can be even worse.  It is the first impression you make on most. If it appears to be unprofessional, it will not look good for you with consumers or potential lenders. 

Even more to the point, if potential investors from a crowdfunding site check out your website and it stinks, they will not donate.

Do what you have to to make sure your website is professionally designed and works well.  Also, don’t use a free hosting service.  Don’t forget, your business needs a dedicated business email address.  Make sure it has the same URL as your Website. Don’t use a free service such as Yahoo or Gmail.

Get all Your Proverbial Ducks in a Row

What’s the take away?  First, crowdfunding is a legitimate option, and these 46 crowdfunding resources can help you on your road to success.  Next, you have to have a backup plan. You have to know you can get funding if crowdfunding doesn’t work out. Fundability is your backup plan.  There are a lot of things that affect fundability, but none of it matters if your business isn’t set up to be fundable in the first place. There are several things you have to do to set up your business to build fundability.

If your business is fundable, you will be able to access pretty much any funding you need now and into the future.  You won’t have to worry about the ability to qualify for a loan, line of credit, or any other type of financing. This will help ensure your business can run and grow for as long as you want.

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