Tag: Help

Spend This Veteran’s Day Building Strong Business Credit and Finding Resources to Help You Build the Business of Your Dreams

As a veteran, your country owes you a debt of gratitude.  Unfortunately, it can be difficult to reacclimate to normal life after the trauma of service. Starting a business can be a great way to get back on your feet, and there are a ton of resources that can help.  These resources, coupled with opportunities opened by strong business credit, mean veterans have more support than ever before to help start and run their own businesses successfully.  F

Find Out Where to Look to Find Resources for Veteran Business Owners with or Without Strong Business Credit

Surprisingly, according the SBA findings released a couple of years ago, 2.52 million U.S. businesses are Veteran-owned.  That is 9.1%. To put it in perspective, almost 10% of the U.S. economy is made up of veteran owned businesses.  It seems, not only do veterans deserve our support for fighting for our country, but for helping to keep the economy running as well!

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

In addition, the same report shows veteran-owned businesses, have 5.03 million people working for them.  What’s more, that’s an annual payroll of $195 billion. What does this mean? Surprisingly, it means that if veterans aren’t given a way to fund new business ventures, a significant section of the U.S. economy will be hurting.

Thankfully, there are loans, grants, and other resources available for veteran business owners.  Consequently, you have to know where to find them. Fortunately, we can help with that. While we can’t list them all, this should get you started.  

Business Loans for Veterans

First, the list of available business loans for veterans could go on forever.  We selected a few of the most popular to help you get your research started. 

Military Economic Injury Loans

This is an SBA loan that helps both veteran and current military reservists that own a business that suffered when they were called to active duty. As a result, if you own a small business that is having financial issues due to active military service on your part, you likely qualify.  The MREIDL, (Military Reservist Economic Injury Disaster Loan) Program will offer 4% interest loans to help the business stay afloat. 

Remember, it is available to business owners that are also veterans for only up to one year after release from active duty.  Terms are available for up to 30 years. Remember, there is a collateral requirement for loans over $50,000. Also, by law the SBA has to make a determination that the business will not recover without help from the government. 

Veterans Business Fund

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Another great option, the Veterans Business Fund, is a newer resource for veterans.  Those are looking to fund a new business or an expansion, and those that want to purchase an existing business or franchise, may find help with this fund. 

It’s funded by donors, and seeks to provide veteran business loans with manageable terms. Per their website, these loans are for veterans, and are non-interest bearing to the extent permitted by law.

You cannot finance a business through VBF alone however.  The program offers loans only in conjunction with personal equity and the funding of an outside banking institution.

Streetshares

StreetShares is veteran owned and run.  They have a passion for funding veteran business loans, though they help those who are not veterans as well. Operating as an online auction marketplace, they connect entrepreneurs directly to investors with an interest in small businesses.

They also provide other information and resources for veterans online. They claim to offer funding approvals in just a few hours. Find out more about StreetShares in this review. 

7-Eleven Veterans Franchising

Along with several other companies, including UPS, 7-Eleven is offering benefits to veteran franchisees.  Eligible business owners can receive up to 20% off the franchise fee.  In addition, they may receive up to 65% financing through 7-Eleven, along with other special benefits. 

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

SBA Express Loan Program

In the past, the SBA’s Patriot Express Loan program was top notch for veterans.  Unfortunately, that program has ended.  However, veterans can still apply for the regular Express Loan program. SBA Express loans are available up to $350,000, and decisions are made in up to 35 hours.  This is a far cry from the 5 to 10 days SBA loans regularly take for decisions.   

One benefit for veterans is that loans through this program, for those who have served, will have their guarantee fees waived. This is part of the SBA VA Program.  

Hivers and Strivers

This is an angel group that specializes in startups run by U.S. military academy graduates. West Point, Annapolis, the Air Force, and the Coast Guard are all involved. Find out more here. 

Other Options for Veterans with Strong Business Credit and Personal Credit

Although the following lenders do not focus specifically on veterans, they offer small business loans that can supplement what is obtained from veteran resources. 

LendingClub

LendingClub works by giving investors a fixed income alternative by investing in personal loans, while offering borrowers loans with investors’ funds.

It’s a simple process. Just enter how much you want to borrower.  Next, choose the type of loan you are looking for. Then, enter some very basic information. You’ll get two different offers at least. One will have a lower payment but a higher interest rate. The other will be vice versa.

Loans range in amounts from $1,000 to $40,000 with an origination fee of 1% to 6%. This fee comes off the top before funds go into the borrower’s account. That means if you have a $1,000 loan with a 1% origination fee, you will only receive $990 in your account. You still have to pay back the full loan amount of $1,000 of course.

Interest rates range from 6.16% to 35.89%. Repayment terms are typically monthly, spanning over 3 to 5 years. After approval, it can take up to a week to receive loan funds.

The minimum credit score for a loan is 600. In addition, you must have a credit history that goes back at least 3 years.  If you do not have the personal credit needed, they may take strong business credit into consideration.

Fundation

The great thing about Fundation is that they will report payments to the business credit reporting agencies.  In return, this helps you build strong business credit. They offer a streamlined, automated process. Originally, they only had invoice financing.  However, now they offer a line of credit service as well. Repayments are automatic, meaning they draft them electronically.  This happens on a weekly basis. One thing to remember is that you could have a repayment as high as 5 to 7% of the amount you have drawn currently, since the repayment period is comparatively short.  

Loans range from $100 to $100,000.  The max initial draw is $50,000 however.   They do have some products that go up to $500,000.  There is no minimum credit score requirement, but 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.

As I said, they report to Dun & Bradstreet, Equifax SBFE, PayNet, and Experian, which makes them a great option if you want to build strong business credit.

Funding Circle

Funding circle is one of your best options if you are looking for a low APR.  They offer fixed rate term loans. The credit score requirement is 620 or above.  Still, they make take a strong business credit score into consideration if you do not quite meet that.  They do not have a minimum revenue requirement, but they do require at least 2 years in business. Find out more in our Funding Circle review. 

Veteran Funding Options that Do Not Require Strong Business Credit

In addition to loans, there are many grant opportunities for veteran business owners.  They are not all right for every veteran, but if you are eligible, they can be great supplemental funding. 

VetFran Business Grant Fund

This is a grant opportunity for those that have been awarded a franchise through the IFA VetFran program.  Go here to find out more. 

USDA Veteran and Minority Farmer Grant

This is a grant that helps veterans get started in the farming industry. 

StreetShares Commanders Call Veteran Business Award

The StreetShares Foundation offers this award to 3 veteran business owners each year. 

There are three prizes as follows: 

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

To apply, a business must meet the following requirements:

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

In the end, the foundation will choose 5 to 10 finalists.  They base their decision on the social impact of the business idea.  Additionally, they consider how the business will use award funds, and the social impact of that use.  The fit of the product market, the history of the team, and the history of the company also play into the decision. 

Lastly, once the finalists are set, they post a list on the website and the public votes on which businesses will receive prizes!

Resources that Provide Services Other than Funding Veteran Business Owners

Thankfully, there are many resources available to veteran business owners that provide support not related to business funding. 

Dept of Veterans Affairs

This is the government department set up to help ensure veteran business owners get their fair share of the pie.  That includes government contracts. Find out more at: https://www.va.gov/osdbu/programs/index.asp

Veterans Business Services

Veterans Business Services, or VBS, offers the following: 

  • Self-employment pre -feasibility assessment opinion letters
  • VA vocational rehab
  • Business plan development and coaching for service-disabled veterans
  • Feasibility studies for small business concepts

VBS offers all of this and more.  Go here for more about these and other ways they can help service-disabled veterans. 

VetBiz

The VetBiz program helps veterans “transition military skills into small business success” per their website.  Similar to other programs, they offer training, coaching, and consulting. Also, they partner with the Small Business Administration for the Boots to Business program.  More information can be found here.

Syracuse University’s Institute for Veterans and Military Families

Honestly, there are many programs at Syracuse University for veterans and their families.  Read about all of them here. However, one of the newest programs is an outstanding opportunity for veterans that want to start their own business.  It’s called EBV Accelerate, and it consists of 3-phases. 

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

Self-stated, the goal of the program is to give veterans business tools and coaching to rocket their business to sustainable growth. To qualify, you must be a veteran business owner that has been in business for 3 years or more.  Of course, the veteran must have at least 50% ownership. 

In addition, there must be active duty with honorable discharge or general discharge under honorable conditions. Also, 5 people have to be full time employees.  It’s short, lasting a little over two weeks. The first phase, Phase 1, is 2 weeks of online work. Next, Phase 2, is a 3-day residency course. Phase 3 consists of resources to support business growth.

More Resources for Veteran Business Owners

For more help, here are a few more resources that can help veteran business owners in a number of ways.

How Can Strong Business Credit Help?  

Truthfully, strong business credit can help any business owner, including veterans, get the funding they need.  Consequently, if you don’t have business credit, now is the time to start building it. In reality, even though it is easiest to start at the beginning, you can start at any time.  Find out more about how to start and build strong business credit here.

Strong Business Credit Can Help You Access More Resources for Veterans

There are resources available to help veteran business owners, but you have to know where to look.  Most of them will not work singularly, but rather they will work together to help ensure the business has the funding and other support necessary to be successful. 

The post Spend This Veteran’s Day Building Strong Business Credit and Finding Resources to Help You Build the Business of Your Dreams appeared first on Credit Suite.

An Unsecured Business Loan Can Help A Startup Grow. Personal Loans Won’t

How an Unsecured Business Loan Can Be the Dynamite that Helps Your Business Explode

When you are trying to grow a business, you have plenty of funding options.  The first one most think of is a loan. What most don’t realize is that there are many different types of loans.  The most basic options are secured loans and unsecured loans.  However, you also have to choose between business loans and personal loans.  For helping a business grow, you are better off to choose business loans every time.  Securing a business loan will help your business grow long term, even if it is an unsecured business loan.  Personal loans do not carry the same advantage.

Here’s why.  Payments on personal loans, whether secured or unsecured, are going to be reported to your personal credit. That is great for your personal finances, but it doesn’t really help your business credit at all.  If you have business loans, even an unsecured business loan, those payments will be reported on your business credit report.  When this happens, your business credit grows, which will absolutely help you grow your business in the future.

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

Why Personal Loans Aren’t a Good Idea

If you finance your business on personal loans, a number of things can happen.  The first is that you can completely mess up your debt-to-credit ratio.  This is a problem regardless of whether you are making your payments on time.

The debt-to-credit ratio shows how much of your available credit you are using. As a general rule of thumb, personal credit limits are lower than business credit limits.  Conversely, business expenses are typically much higher than personal expenses.  This is the perfect recipe for balances that stay at or near limits, even when you are making payments.

The other reason it isn’t a good idea to use your personal credit to finance your business is this.  If your business finances hit hard times, your personal finances will go down too.  There would be no protection.

What is an Unsecured Loan?

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Now that we’ve established why you need to use business credit for your business and not personal credit, let’s talk about business financing.  Specifically, let’s talk about an unsecured business loan. It is important to understand what an unsecured business loan is before you can understand how it can help you grow your business.

Basically, this is a loan that you get solely on the merits of your business credit.  There is no collateral or personal security put up to help you get the loan. The only risk mitigation by the lender is the reliance on your business credit score. While some may check your personal credit score also, applying with your business information ensures that the payment history will be on your business credit report.

As you can imagine, this means that you need  a pretty stellar business score to get an unsecured business loan. The thing is, once you are there, you can use the funds to do whatever you need to to grow your business without having to worry about using any part of your business as security.

The question then becomes, how on earth do you get the strong business credit you need to qualify for an unsecured business loan?

How to Get Business Credit

Business credit is vastly different from personal credit in many ways.  Perhaps the most glaring difference is that while personal credit kind of just happens based on your spending and paying habits, business credit has to be initiated and built intentionally.  How do you start?

  • Incorporate your business as a corporation, S-corp, or LLC
  • List separate business contact information in directories
  • Obtain an EIN and a DUNS number
  • Open a bank account in your business’s name and run all business expenses through that account.

These steps will help you establish your business as an entity with finances separate from your own. That means vendors will report credit information in your business name. Thus, your business credit will be born.

What’s the Next Step?

Next, you have to do business with starter vendors from the vendor credit tier.  They are vendors that will offer net 30 or higher invoices and report your payments to the business credit reporting agencies. As this continues, your business credit score will grow to the point that you can apply for credit cards from the retail credit tier.

The retail credit tier includes those credit cards that are linked to a specific retail store.  This might include, for example, Staples, Lowes, or Best Buy credit cards.  You need several of these reporting positive payment history.  When that happens, you can begin to apply for cards in the fleet credit tier.

Fleet cards are those that can be used for fuel and automobile maintenance from companies such as Fuelman and Shell.  After enough of these are reporting you can apply for cards in the retail credit tier.

The retail credit tier is the top tier.  Once you are here, you can apply for those standard Mastercards and Visa cards that are not linked to a specific retail store or fuel company.  Get a few of these reporting and handle the credit responsibly.  Then, you will have a strong business score that should allow you to qualify for an unsecured business loan.  This means, you will not have to put up collateral or personal security, and your personal credit should not be affected by your business credit.

Other Types of Small Business Financing

It’s probably wise at this point to discuss the various types of small business financing available.  There are options between business credit cards and unsecured small business loans.  It isn’t all or nothing, and each one can play a part in helping your business grow.

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

Types of Loans

There are various types of loans including:

●        Traditional

These are the standard loans that disperse a set amount of funds, with the borrower repaying over a certain period of time.  The payment is the same each month, and they can be either secured or unsecured.  Unsecured small business loan options usually have higher interest rates.

●        Line of Credit

This is revolving debt similar to credit cards.  Borrowers are given a maximum limit of the amount of funds they can use, but only pay back the amount that they actually use.  For example, a borrower may have a $5,000 line of credit and use $2,000 to buy a new printer.  They will only pay back to $2,000, until the time comes that they choose to use more. Lines of credit can also be secured or unsecured.

●        Invoice Factoring

Factoring invoices is an option if you have receivables.   The lender basically buys unpaid invoices from you at a premium.  This means you do not get full value.  You then have immediate cash however, for those open invoices.  The lender collects from the consumer directly at full value.  The older the invoice, the higher the premium. That’s because the likelihood of collecting on the invoice goes down the older the invoice gets.

●        Merchant Cash Advance

If you accept credit card payments, a merchant cash advance can help you out in a pinch.  It is  just what its name says it is.  It’s a cash advance on predicted credit card sales.  They base the amount of the loan off of average daily credit card sales, and then take payment from future credit card sales. This usually happens electronically. Most often, the process is automatic.  The draw is that you get the funds fast, and there are usually more flexible options for repayment terms depending on your eligibility.

Where Can I Find an Unsecured Business Loan and Other Small Business Financing Options?

It really does no good to discuss small business financing if we don’t tell you where to find it.  Here are a few options to consider.  Remember though, even if you are applying based on business credit, some lenders still want to see your personal credit score. Also, these guys aren’t the only game in town.  Be sure to do your research to find the best lender for your needs.

Upstart

Upstart is a fairly new online lender that is using cutting edge technology.  They question whether financial information and FICO alone can really determine the risk associated with a specific borrower.  Rather, they are using a combination of artificial intelligence and machine learning to gather alternative data.  They then use this data to aid credit decisions.

Alternative data includes such things as mobile phone bills, rent, deposits, withdrawals, and even other information less directly tied to finances.  Software from the company learns and improves on its own.

They offer various types of financing products to fit a broad range of needs. There is something for everyone.  Debt consolidation and personal loans are included, in addition to business loans.

Quotes are available online in minutes.  Learn more in this comprehensive review.

StreetShares

StreetShares started as a service to veterans.  Now, they offer term loans, lines of credit, and contract financing. They also offer small business loan investment options. The maximum loan amount is $250,000.  Pre Approval only takes a few minutes. They use a soft pull on your credit so it doesn’t affect your score.

To be eligible, you must be in business for at least 12 months with annual revenue of $25,000. Exceptions are possible, with loans to companies in business for at least 6 months but with higher earnings being approved on a case by case basis. The borrower’s credit score must be at least 620. For more on StreetShares, see our in-depth review.

Kabbage

Kabbage is a well know online lender. They offer a small business line of credit that can help businesses accomplish business goals. The minimum loan amount is $500 and the maximum is $250,000. They require you to be in business for at least one year and have $50,000 or more in annual revenue.  They will also accept $4,200 or more in monthly revenue over the most recent three month period.

Kabbage is a great option if you need cash quickly. Also, their non-traditional approach puts less weight on your credit score, so they may work well for borrowers that still have some work to do in that department.

Fundation

Fundation provides both term business loans online and lines of credit. It is most known for its working capital funding options. These are funds meant to help cover the day-to-day costs of running a business rather than larger projects. Typically, funds come in the form of a line-of-credit.

The minimum loan amount is $20,000, while the maximum loan amount they offer is $500,000. They require you to be in business for at least 12 months and have annual revenue of at least $100,000. To be eligible, your personal credit score must be no less than 600. Additionally, you must have at least 3 full time employees, but this can include yourself. Owners that live or operate their business in North Dakota, South Dakota, or Nevada are not eligible.

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

Why is an Unsecured Business Loan Better Than a Personal Loan?

When you take out an unsecured business loan, you not only protect your business from the bank in case of default, but you ensure your personal assets are protected as well.  In addition, as you continue to build your business credit score by making payments on-time, you guarantee yourself the ability to access the funding you need to grow in the future.

Whether you need to add equipment, open a new location, or simply buy more inventory to supply the demand, you can rest easy knowing you will be able to get the funding you need.

An Unsecured Business Loan Can Help Your Business Grow

Many businesses are started on the merits of the owner’s personal credit.  It certainly isn’t unheard of, and in fact, it is likely the norm.  Before your business starts, it can’t exactly have credit, can it? However, once you are up and running, it is important to start building business credit.  Then, when the time comes to grow and expand, you are more likely to have access to an unsecured business loan.  This will be much more effective at helping your business grow than a personal loan ever could be.

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Affordable Credit Cards Help to Leave Fees Behind

Low-cost Credit Cards Help to Leave Fees Behind

Reduced rate of interest bank card are cards that supply substantial buying power for customers while reducing their general financial obligation tons. The term might appear ‘deal cellar’, however it is making good sense to a growing number of customers.

You must take into consideration all costs while looking for a reduced rate of interest bank card including, consisting of yearly costs, equilibrium transfers, as well as any type of additional appropriate costs.

Additional Fees

Charge card charges can usually be stayed clear of, however still call for an extensive understanding. When these costs are all existing in a charge card use it might be a good idea to stay clear of the deal entirely. Some charges will certainly be inevitable, yet others are totally preventable.

Different added costs consist of:

– Late repayment charges
– Set-up costs
-” Over-the-credit-limit” charges
– Return things charges
– Fees for orders made by telephone

Equilibrium Transfer Fees

Reduced Interest credit report cards are usually made use of in moving equilibriums from a greater passion price credit rating card to a brand-new reduced rate of interest price card. The ideal cards will certainly provide no transfer charges or incredibly reduced initial yearly percent prices (APR).

Yearly Fees

Bank card deals will normally note the quantity needed as a yearly charge. Numerous economical charge card deals have actually removed this charge in “basic usage” cards, however might still need them for their particular incentives programs. See to it to comprehend what yearly cost is being billed as well as if it makes monetary feeling for your circumstance.

After that it is crucial for you to make certain you locate a card with the least costs, if you are a customer that pays your credit rating card off each month. Affordable bank card been available in a selection of arrangements as well as fast paying customers can be punished for approving a card which contains charges that can be evaluated also when the card is not being made use of.

Are These Fees Hidden?

When you use, Credit card business should provide all costs linked with your card choice. Checking out the deal in its whole is the only method to ensure you have actually the understanding required to make smart use the charge card.

Review

Low-cost bank card are frequently specified by their reduced rate of interest and also less included functions such as luxurious benefits programs. A number of economical credit score cards have benefits programs, however the incentives might be less or much less pricey.

The charge card industry is very affordable, which has actually caused a wide range of selection in the field of non-mortgage consumer debt. By recognizing the different facets of non-mortgage consumer debt, you have the power to pick a card that finest fits your way of living as well as investing practices.

An on-line search of the bank card supplies that suit your demands is an advantageous means to contrast the range of aspects of a bank card deal. When a customer is efficiently matched with the very best bank card for their scenario, it shows a feeling of customer empowerment that is expanding with every on-line bank card contrast.

Credit history card charges can frequently be prevented, however still need a detailed understanding. When these costs are all existing in a credit report card supply it might be smart to stay clear of the deal entirely. The finest cards will certainly provide no transfer costs or extremely reduced initial yearly portion prices (APR). Credit scores card deals will usually provide the quantity called for as a yearly charge. Lots of inexpensive credit history card deals have actually removed this charge in “basic usage” cards, however might still need them for their corresponding benefits programs.

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