Tag: Lines

Here Come the Pats! Plus: The “What’s Wrong?” Game, Taylor vs. Jake, and Guess the Lines With Cousin Sal

The Ringer’s Bill Simmons is joined by Cousin Sal to discuss the Patriots’ blowout win vs. the Browns, the Cowboys’ blowout win vs. the Falcons, a surprising Buccaneers loss to the Washington Football Team, a rocky first game back for Russell Wilson, Chargers-Vikings, Steelers-Lions, and more (2:38). Then they Guess the Lines for NFL Week 11 (40:38) before closing the show with Parent Corner (1:18:40).

Host: Bill Simmons

Guest: Cousin Sal

Producer: Kyle Crichton

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Lamar Jacks the Chiefs, the Kliff-Kyler Roller Coaster, and Guess the Lines Week 3 With Cousin Sal

The Ringer’s Bill Simmons is joined by Cousin Sal to recap NFL Week 2, including the Ravens’ win in a shootout with the Chiefs, the Chargers’ loss to the Cowboys, the Titans’ comeback win against the Seahawks, another crushing Vikings loss, a tough day for rookie QB Zach Wilson against the Patriots, plus Buccaneers-Falcons, Steelers-Raiders, Rams-Colts, and more (2:50). Then they Guess the Lines for NFL Week 3 (52:30) before closing the show with Parent Corner (1:16:15).

Host: Bill Simmons

Guest: Cousin Sal

Producer: Kyle Crichton

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The post Lamar Jacks the Chiefs, the Kliff-Kyler Roller Coaster, and Guess the Lines Week 3 With Cousin Sal appeared first on Buy It At A Bargain – Deals And Reviews.

Securities-Based Lines of Credit

You may have heard about securities-based lines of credit. But what are they, exactly?

What are Securities-Based Lines of Credit?

The term securities-based lending (SBL) refers to the practice of making loans using securities as collateral. Securities-based lending provides ready access to capital. This can be used for almost any purpose, such as buying real estate or investing in a business. The only restrictions to this kind of lending are other securities-based transactions like buying shares or repaying a margin loan.

Here are the Details on Securities-Based Lines of Credit

It is generally offered through large financial institutions and private banks. People tend to seek out securities-based loans, if they want to make a large business acquisition, or if they want to execute large transactions like real estate purchases.

How Does the Process Work?

Lenders determine the value of the loan based on the borrower’s investment portfolio. In some cases, the issuer of the loan may determine eligibility based on the underlying asset. It can end up approving a loan based on a portfolio of US Treasury notes rather than stocks.

Once you get approval, the borrower’s securities (the collateral) are deposited into an account. The lender becomes a lienholder on that account. If the borrower defaults, lender can seize the securities. Then they can sell them to recoup their losses.

In general, borrowers can get cash in just a few days. Securities-based lending is also relatively cheap. The rate borrowers are charged is generally variable, based on the 30-day London InterBank Offered Rate (LIBOR).

What is LIBOR?

Interest rates are typically 2 – 5 percentage points above LIBOR, depending on the sum. LIBOR is derived from an average of daily self-estimates of borrowing costs, supplied by a small group of large global banks.

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

Here are the Advantages of Securities-Based Lines of Credit

Get access to cash when you need it. You can potentially avoid capital gains taxes from selling securities. Typically lower rates than other forms of credit. No setup, non-use, or cancellation fees. Ability to borrow a significant percentage of your eligible assets, depending on the collateral and type of credit you receive.

SBL offers access to cash within a couple of days at lower interest rates with considerable repayment flexibility. These rates are often much lower than home equity lines of credit (HELOCs) or second mortgages. It works best when used for short periods of time in situations that demand a significant amount of cash quickly, like an emergency or a bridge loan.

SBL also provides benefits to the lender. It offers an additional and lucrative income stream, without much additional risk. The liquidity of securities used as collateral can help to mitigate much of the credit risk associated with traditional lending. See investopedia.com/terms/s/securitiesbased-lending.asp.

You can stay invested. You can keep your investment plan and asset allocation in place, without disrupting your long-term strategy. Financial flexibility is another bonus. You can quickly access liquidity for a range of uses.

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

Here are Some of the Disadvantages of Securities-Based Lines of Credit

You are pledging securities. Also, events outside your control affect their value. Hence market fluctuations may cause the value of pledged assets to decline. A decline in the value of your securities could result in selling your securities to maintain equity. Hence you may suffer adverse tax consequences as a result of selling securities. See wellsfargoadvisors.com/why-wells-fargo/products-services/lending/securities-based.htm.

SBL’s growing usage has led to concern, due to its potential for systematic risk. If interest rates increase, financial experts are concerned that there could be fire sales and forced liquidations when the market turns.

The Securities and Exchange Commission (SEC) doesn’t track securities-based lines of credit. Neither does the Financial Industry Regulatory Authority (FINRA). Still, both continually warn investors of the risks in this market. Another risk is if you depend on your securities for your retirement funding, is if they lose considerable value during the life of the loan. But that is a risk with all securities.

When equity and fixed-income markets perform poorly, which is often cyclical, the market value of many assets can hit low levels that were previously unthinkable. Unless the borrower has a lot of surplus liquidity, beyond the securities backing the loan, or the securities backing the loan consist almost entirely of assets like short-term US Treasury bills, this can result in the bank calling in the investor’s collateral.

A bank calling in the investor’s collateral could trigger forced liquidation of the borrower’s holdings at disadvantageous prices. In such cases, the borrower does not have the option to buy and hold. Also, they don’t have the choice of waiting for the market to recover.

Generally, Which Sorts of Securities Can Be Used with Securities-Based Lines of Credit?

While the specifics will depend on the lender, the following are securities which are often acceptable: marginable equity securities, this includes ETFs (exchange-traded funds) and most mutual funds; cash and cash equivalents, such as certificates of deposit; and fixed-income investments. This can include most investment-grade corporate, treasury, municipal, and government agency bonds.

Did You Know that Credit Suite has a Securities-Based Financing Program?

Our securities-based financing offers a powerful and flexible way for businesses and franchises to leverage assets currently in stocks or bonds. You can get a low interest credit line. In as little as 2 weeks, you can invest some of your stocks or bond in your business. This gives you more control over the performance of your retirement plan assets. Also, it gives you the working capital you need for business growth.

Check Out These Details on Credit Suite Securities-Based Lines of Credit

You can get approval for a low-interest credit line for as much as 90% of the value of your securities. Most stocks and bonds are accepted! You keep all the interest and appreciation from your securities. You pay no pre-payment penalty. Also, your securities stay in your name.

Here’s How to Qualify for Credit Suite Securities-Based Lines of Credit

Securities-based financing is very easy to qualify for. You won’t need financials, or good credit for approval. To qualify all the lender will require is a copy of your two most recent securities statements. If your stocks or bonds have a value over $25,000, you can get approval, even with severely challenged personal credit.

But what If You Have Credit Issues Now?

Our securities-based financing program is perfect for business owners who have credit issues. Lenders are not looking for, nor do they require, good credit to qualify.

Credit history is not important, except that there can be no bankruptcies or foreclosures in the last 5 years. Lenders won’t use credit history to determine rate or LTV% (loan-to-value). This is one of the best and easiest business financing programs you can qualify for. Also, you can get really good terms, even if you have severe personal credit problems.

You can Get FAST Funding with the Credit Suite Securities-Based Line of Credit

After the lenders review your securities statements, you can receive your initial approval and funding in 2 weeks or less. You can get a working capital credit line, to use for whatever purposes you need.

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

Check Out Credit Suite Securities-Based Lines of Credit’s Powerful Benefits!

Enjoy 24-hour pre-approval. No penalties for rollover. Easy securities review for approval. you pay no application fees.

You can get approval with very bad credit. Application to funding in 2 weeks or less. Get approval with no revenue requirements. Rates of 5% are common. Get a credit line for 70 – 90% of securities value.

Most stocks and bonds are acceptable. Your securities remain in your name. You keep all the interest from your securities. No pre-payment penalty. You keep 100% of your appreciation.

Get approval for up to 90% of value. Bad credit is acceptable. Your collateral is just your stocks, bonds, or other securities. Also, you DON’T need financials!

Securities-Based Lending: Takeaways

Securities-based lending, including for lines of credit, lets you leverage securities without having to sell them. Rates tend to tie to the London InterBank Offered Rate (LIBOR). There are both advantages and disadvantages to this form of financing. Only you can choose if it’s worth it

Credit Suite offers a securities-based line of credit program. Get up to 90% of the value of your holdings. Also with a fast decision and low rates. Also, you can qualify even with bad credit. Choosing to go for a securities-based line of credit is a big step. Let’s take it together.

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Business Trade Lines In a Recession Can Help Create a Unique Opportunity

It is possible to build business credit, even during hard times.  Of course it’s easier to already have business credit when the hard times hit.  However, if you find yourself in need of funding to get through this Covid caused rough spot, business trade lines in a recession can help.

Business Trade Lines in a Recession: Build Business Credit Even in Hard Economic Times

When the economy heads south, it can seem impossible to build anything good.  Most of us tend to go into survival mode, happy if we can just hang on.  Building, growing, and expanding are the last things on our mind.  The truth is though, you can use business trade lines in a recession to build business credit.

This can allow you to be in the unique position to take advantage of opportunities during a recession that others will not be able to benefit from, because they are still in survival mode.

Imagine, if a wholesaler offers a special on inventory and you have business credit that allows you to take advantage, while your competitor does not, you have a clear advantage.  But how do you do it?  How do you use business trade lines in a recession to build business credit?  The simple answer is, the same way you do any other time.  There is a little more to it however.

Business Trade Lines in a Recession: Where to Start

Before business trade lines in a recession will do you any good, you have to do some prep work.  This prep work lays a solid foundation to build strong business credit on, even during a recession.  If you skip this part, you are likely to find you can’t even get started with business credit.  These first steps truly are essential before you can take advantage of the help business trade lines can offer.

These steps are best taken before you start your business, but if you are already up and running, all is not lost.  Just start where you are.

You need to consider how your business is set up.  For many new business owners, starting a business just kind of happens.  You have something you do that you love, and you decide it’s time to use it to make money.  You may find a location or start from your home.  Likely you simply mingle funds in your personal bank account.  You have a business name but the business address, email, and phone number are all the same as your personal contact information.  It is sort of a natural progression.

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

If you want to establish business credit, you have to be purposeful to set up your business separate from yourself.  This means doing a few things differently.

How to Establish Your Business as a Separate Entity

First, you have to incorporate.  Running as a DBA, sole proprietorship, or partnership really won’t cut it.  You can choose from running as a corporation, S-corp, or LLC based on your specific needs, but it needs to be one of these three. Each one comes associated with a different cost and varying levels of protection, but each will serve the purpose of separating your business from yourself.

Next, establish separate contact information for your business.  You need a business address, email, and phone number that is different from your personal address, email, and phone number.  The phone number should be from a toll-free exchange, and your email address should be associated with your professional website. Do not use a free service such as Gmail or Yahoo, and don’t ignore the professional website part.  These days, a poorly put together website can ruin a business.

Pick Your Numbers

After these first steps are complete you need to play the numbers game.  In order to establish business credit, your business has to have two numbers associated with it.  The first is an EIN.  This is an identifying number for a business, similar to a social security number.  You can get one for free on the IRS website.

The next is a DUNS number.  This is a number assigned by Dun & Bradstreet, the largest and most commonly used business credit reporting agency.  To have a business credit file with them, you must have a DUNS number.  You can apply for it for free on their website, but note that they will definitely try to sell you other services. Be strong.  The number is free and the other services are not necessary.

Separate the Finances

Open a separate bank account for your business.  This is the account through which all business financial transactions should run.  If your business is already up and running, it may take you some time to get everything switched over, but it will be worth it.  Not only will is help separate your business from your personal credit, but it will also help tremendously when it is time to do your taxes.

The Magic of Business Trade Lines In a Recession:

Plant the Seed, Hammer the Nail

Okay, so these steps ensure that your business is on record as a business at all the right places.  As soon as something credit related is reporting, it will have a place to go.  How do you get something reported though?  You need accounts that will report your on-time payments.  Lenders will not even consider extending you credit however, if you don’t have a credit score, or if your credit score is bad.  How do you break into the circle?

You can find a tiny crack with business trade lines in a recession.  These are vendors that sell things you use in the everyday course of business, and they are vital to building business credit.  Here’s how it works.  They will extend net30 terms on invoices, without a credit check, and then report your invoice payments to the business credit reporting agencies.

For most of these vendors, you will have to make a few initial purchases before they will extend net30 terms.  Some want to see a minimum time in business or a certain revenue level as well.  We have compiled a list of six easy approval options to help you get started with business trade lines in a recession.

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

Strategic Network Solutions

This company sells eBooks, software, and even office supplies.  You do have to register to see their products, but the process if fast and easy.  You will have to make a $75 or more initial purchase to be eligible for a net30 account of up to $1,000 for a new business.  The credit line can increase in increments of $500 if balances are paid in full and on-time. Strategic Network Solutions reports to Experian and Credit Safe.

Grainger Industrial Supply

Granger industrial Supply sells industrial equipment for outdoors as well as standard tools, and more. To gain net 30 approval you will need a business license, a DUNS number, and bank reference.  They report to Dun & Bradstreet.Business Trade Lines in a Recession Credit Suite2

Summa Office Supplies

Another office supply provider, you can order anything from paper to staples, pens to printer ink, and pretty much anything you can think of in between from Summa.  They require a $75 initial purchase, and will approve up to $2,000 on net 30 terms.  They report to Eqifax and D&B.

Quill Office Supplies

Quill also sells standard office supplies.  You will need to make an initial purchase.  They’ll usually put you on a 90 day prepay scheduled, but after ordering for 3 months in a row, they’ll typically approve net 30 terms.  They report to Dun & Bradstreet.

Uline

Uline sells a lot of things, but they specialize in packing and shipping equipment and janitorial supplies. You’ll need to place an initial order, and they do ask for a bank reference and two other references.  They report to Dun & Bradstreet, so you’ll of course need a DUNS number too.

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

What Comes After Business Trade Lines in a Recession?

Using business trade lines in a recession is all part of the working with starter vendors.  After you have a few of these accounts reporting, you can apply for store credit card accounts, then the fleet cards, and finally general use cards.  Here’s what you need to know about each type of card, and what happens when you get to the top.

Business Trade Lines In a Recession :Store Cards

It’s hard work to get something going.  Rolling a tire, pushing a car to jump start it, and starting a business all take an extra exertion of energy.  Once a thing is going, you can sort of set it on cruise control.  Store cars are the beginning of your business credit cruising phase.

In building business credit, after you have enough business trade lines in a recession, you can start applying for store credit.  These are credit cards issued by specific retailers such as Office Depot and Best Buy.  Apply for these accounts, purchase things you need in the everyday course of running your business, and make your payments on-time.  Your business credit score will grow stronger by the day.

Business Trade Lines in a Recession: Fleet Cards

Keep cruising through and after enough store cards are reporting, apply for fleet cards.  These cards are issued by fleet companies such as Shell and Fuelman.  They can be used to purchase gasoline or for automobile maintenance and repairs.  Once you have enough of these accounts reporting, it’s time for the general use cards.

Business Trade Lines in a Recession: General Use Credit Cards

General use credit cards are end game.  Hold the wheel steady, and you can cruise here forever.  These cards consists of the traditional Visa, Master, and American Express cards not associated with a specific store or type of purchase. Use this wisely, continue to make consistent, on-time payments, and your business credit will be rock solid.

Warning Signs

Setting the cruise doesn’t mean you get to be disengaged.  Building business credit with business trade lines in a recession takes a lot of work.  It feels good when you have a business credit score that is building quickly and you can relax a little.  You don’t have to work as hard, but you still have to steer, and watch the signs.

Neglecting to make payments consistently on-time could throw you in a ditch.  You’ll have to climb out and start all over again.  Be careful.

Why Business Credit?

You may be asking yourself the question, why bother?  You may have personal credit that will allow you to get what you need to run your business without needing to work with business trade lines in a recession.   It can take time, and better prices may be available elsewhere.  What’s the point?  Why do you need business credit?

The fact is, it’s never a good idea to have your business transactions on your personal credit report,  recession or not.  There are a few reasons for this.  First, if your personal credit takes a hit, it can affect your ability to run your business.

Also, business credit cards based on personal credit often have a lower credit limit, and business transactions are often very large.  If you get close to your limit, your score will take a hit even if you make your payments like you should due to the high debt-to-credit ratio.

By having cards based on your business credit, you can get higher limits, and your personal credit will not be affected by business transactions.  This way, you do not have to worry about business transactions keeping you from applying for personal credit you may need to purchase a car or make home improvements.

Build Business Credit With Business Trade Lines in a Recession

Regardless of your personal credit score, you really do have to work with business trade lines in a recession to start your business credit.  After you establish your business and prepare the way for your business transactions to be reported to your business credit profile, you will need accounts to report.  Most credit cards will not extend credit to a business with no credit, or bad credit.  Working with business trade lines that do not do a credit check is a way around that.  You can start building business credit in your business name without your personal credit score ever being involved.  It’s a win/win for you and for your business.

The post Business Trade Lines In a Recession Can Help Create a Unique Opportunity appeared first on Credit Suite.

You Could Take Over the World with Business Lines of Credit

Well, maybe not the entire world.  However, you can definitely take your business to a new level.  If it’s in trouble, business lines of credit could be just the thing you need to get you over the hump.  But what makes this a better option than any other type of business funding? Furthermore, where do you find a business line of credit?  Never fear. We have the answers you seek.

What You Need to Know about Business Lines of Credit

A business line of credit is similar to a credit card, so many think they work exactly the same.  They really do not. There are some major distinctions between the two. These distinctions make each one better suited for specific situations.  For this reason, it is not a bad idea to have both at your disposal for use as needed. 

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

Solving the Business Lines of Credit Mystery

Surprisingly, business owners often do not understand what business lines of credit really are. The simplest explanation is that they are a revolving line of credit.  In fact, they are very much like credit cards. For example, like a credit card, you have a limit and continuous access to that limit. At the same time, you make payments only on the portion you use each month. 

Consider the following example. You have a $1,000 line of credit.  You can use however much of those funds you need each month for whatever you want, unless your lender restricts use. If you use $200, then when you get your statement you will have to pay $200 plus the interest.  You will not owe or pay interest on the whole $1,000 loan. 

If you were to spend the $200, then spend another $50, you would pay on the $250, minus any payment already made, the next month. Your payments change as your balance changes. Just like with a credit card. 

Access is generally granted through checks or a debit card connected to the line of credit account.

Business Lines of Credit vs. Credit CardsBusiness Lines of Credit

Business owners often ask what the difference is between business lines of credit and credit cards. Why is one better than the other? Truthfully, sometimes a credit card may work better.  It just depends on your specific situation and needs. 

The main differences you need to know are that a business line of credit typically has lower consistent interest rates.  Also, there are none of the perks like 0% interest or cash back that you sometimes see with credit cards. 

Unsecured Line of Credit vs Secured Line of Credit
There are two types of business lines of credit.  You can get either an unsecured line or a secured line.

The fact is, an unsecured line of credit is harder to get. Also, it usually costs more than a secured line of credit. 

This is due to the increased risk to the lender with an unsecured business line of credit. A secured business line of credit has the safety net of collateral. Therefore, if you cannot or do not pay, the lender can still use the collateral to recover. 

Some business owners either do not have collateral to offer, or they have no interest in tying up their assets with financing. In this case, an unsecured line of credit may be an option. 

An unsecured line of credit typically has strict approval guidelines and qualifications.  Due to the increase in credit risk, they will also likely have higher interest rates and less favorable repayment terms. 

3 Questions to Ask Yourself Before Looking for Business Lines of Credit for Your Business

While nothing is a guarantee, there are some things you can do to help ensure you get the best possible business lines of credit for your business. Start by asking yourself these questions. 

  1. Why Do You Need a Credit Line?  

This is the basis of finding the best business line of credit for your needs. You have to actually know what your needs are. Here are some examples of how a business may use a line of credit. 

  • Buy or stock up on inventory, raw materials, or supplies while on sale. This can reduce cost of goods sold and consequently, increase the bottom line. 
  • Purchase or repair minor equipment when needed. This would be like a new printer or laptop.  . Larger equipment, like an industrial freezer, would best be purchased with an equipment loan. 
  • Cover temporary gaps in cash flow or continuous, expected cash gaps due to timing issues. For example, if several bills are due at the beginning of the month and you know your largest contracts pay at the end of the month, you could cover those bills with the line of credit until your contracts are paid. The money is coming. It is reliable.  However, the bills are due before the money comes. You can pay the bills with the line of credit. Then pay off the line of credit when the contracts pay.

Another example of this is a seasonal line of credit for a business that does the majority of its sales during a certain time of the year.  A florist does a large percentage of sales during Valentine’s day, so a seasonal line of credit can come in handy to bridge the cash gap during other times of the year.

  1. What is Available to You? 

Shop around with different lenders to figure out which ones offer the best business lines of credit. You will want to look at factors such as interest rate and credit limit in relation to what you need and can afford. 

Check with various types of lenders to get a feel for which ones offer what you need.  Research larger banks, as well as small local institutions and credit unions.  Don’t forget about online lenders either.

 

  • What is Your Business Credit Like? 

 

Your ability to get approval for the best business line of credit will be directly related to your business credit. While lenders may also consider income and cash flow, they are going to rely most heavily on your business credit score when making an approval decision about a line of credit. 

A lower business credit score does not necessarily mean you can’t get approval, but it could greatly affect your interest rate and credit limit. 

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

Consider signing up for a credit monitoring service that lets you keep tabs on your business credit and what is affecting it each month. 

Once you have a handle on why you need a business line of credit, what is available, and what you may actually be eligible for, you can make a decision as to where you are going to apply and which product you are going to apply for. 

Determining which of these lenders offers the best business lines of credit for your business goes back to knowing what you need, who has it, and who will approve you for it. 

When Is a Line of Credit Better than a Credit Card? 

If you are going to need to make payments, a line of credit is a better option. The reason is pretty simple. The credit rate is almost always lower. The few exceptions are those cards that offer 0% APR for a short period of time. 

If you are going to use a credit card to make regular purchases that you are going to pay off immediately, and you qualify for a card with perks such as cash back, then you may find that you can benefit from using a credit card over a line of credit. 

An example would be if you wanted to use your business credit card to make your monthly supplies purchase each month and then pay it off in the following month so that you could take advantage of the cash back. 

To float a cash flow gap or make significant purchases that you will need pay out over a short amount of time, a line of credit is almost always the best choice. 

Where Can You Find Business Lines of Credit? 

Not all lenders offer them, but there are options available at many traditional and alternative type lenders. Which one you go with depends, again, on your specific situation.

Traditional lenders typically have the lowest interest rates.  However, their repayment terms may be less flexible. They will also have harder to meet qualifications and a longer approval process. In addition, it can take several days after approval to have access to the funds.

An alternative lender will usually have easier to meet qualifications and more flexible repayment terms.  The tradeoff is interest rates are much higher. The approval process is faster however, and in some cases, you can access funds in as little as 24 hours.

Where to Find the Best Business Line of Credit 

Since most small businesses will have a hard time getting approval from a traditional lender due to poor credit or a lack of sufficient credit history, here are some examples of what some alternative lenders are offering currently. 

Kabbage

Kabbage offers a credit line of up to $150,000 with no credit score required. The catch is that the interest rate is between 32 and 108%. The business must have been in existence for at least one year and have revenue of at least $50,000. 

Due to the extremely high interest rate, this is really only an option for those businesses that cannot get financing due to a low or nonexistent credit score and need something immediately. 

StreetShares

There is a credit line available at StreetShares of up to $100,000 for those who have a business credit score of at least 600, have been in business for at least one year, and have at least $25,000 in revenue. 

It requires weekly repayment. 

Due to the lower revenue requirement, this is a good option for smaller businesses that are okay in the credit department but have trouble meeting higher revenue criteria. Also, the interest rate minimum is lower, with the low end at 9%.

OnDeck

If you have a credit score of at least 500 you can get a credit line of up to $100,000 with OnDeck. There is a $20 per month maintenance fee, and weekly repayment. The interest rate is a little higher here than with those that require a higher credit score minimum. It ranges from 13.99 to 39.99 percent. 

Again, due to the higher interest rate, this should only be an option if you cannot meet the higher credit score requirement. 

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

Lending Club

The credit line offer from Lending Club goes up to a limit of $300,000. It requires a credit score of 600, at least one year in business, and at least $50,000 in revenue. The repayment term is 25 months. Also, they require collateral for limits over $100,000. 

This is a good option for those who meet the requirement as there is a higher limit available with collateral, and the interest rate can go as low as 6.25%. The repayment terms are much friendlier as well. 

The Best Business Lines of Credit May Be Closer Than You Think

A business line of credit can be a great option for funding, depending on your specific needs.  Ask yourself first if you need a credit card or a line of credit. The truth is, it doesn’t hurt to have both.  Then, do your research. Start with the list above, but don’t stop there. Do some research and find a product that will really give you what you are looking for. 

In doing so, don’t forget to take other funding options into account.  Not only are there various types of loans available, but crowdfunding and grant opportunities exist as well. Find out more about the various options available for funding a business and you just might find that at this point, you really need  something other than a business line of credit. At the very least, you’ll have the knowledge going forward, which can only aid in your ability to make better funding decisions for your business. 

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Just Funded… $50,000 in Unsecured Credit Lines

Congratulations to our successful graphics design company client who received $50,000 in unsecured credit lines!

They’ll be using their newly acquired funds to implement marketing strategies to grow and scale their business.

Click Here to see how much funding you can get for your business.

The post Just Funded… $50,000 in Unsecured Credit Lines appeared first on ROI Credit Builders.

Get Business Credit Lines Unsecured by Collateral

You Can Get Business Credit Lines Unsecured by Collateral

Do you need business funding? But maybe you don’t have good collateral? Not to worry – you can still get money. So let’s look at business credit lines unsecured by collateral.

Get Business Credit Lines Unsecured by Collateral: Credit Lines

A credit line, or line of credit (LOC), is an arrangement between a borrower and a bank or private investor which establishes a maximum loan balance that a borrower can access.

A borrower can get access to funds from their line of credit at any time, so long as they don’t go beyond the maximum set in the arrangement, and as long as they meet any other conditions of the finance institution or investor for example, making timely payments.

And business credit lines unsecured by collateral give lenders very little security in case of default. While business credit lines unsecured ed by collateral exist, they can be harder to get.

Advantages

Credit lines offer many distinct advantages to borrowers which include convenience. Borrowers can utilize their line of credit and merely pay interest on what they use, unlike loans where they pay interest on the total borrowed. Credit lines can be reused, so as you acquire a balance and pay that balance off, you can use that accessible credit again, and again.

Details

Credit lines are revolving accounts similar to credit cards, and contrast other kinds of financing such as installment loans. In many cases, lines of credit are unsecured, much the same as credit cards are. There are some credit lines that are secured, and for that reason easier to get approval for. But we’re looking for business credit lines unsecured by collateral!

Credit lines are the most routinely sought after loan type in the business world despite the fact that they are preferred, real credit lines are rare, and difficult to find. Many are also very hard to qualify for, requiring good credit, good time in business, and good financials. But there are other credit cards and lines that few people know about that are attainable for startup companies, bad credit, and even if you have no financials.

Get Business Credit Lines Unsecured by Collateral: Unsecured Business Financing

With this form of business financing, you partner with a lender who concentrates on securing business credit cards. This is a very unusual, very few know of program which few lending sources offer. They can normally get you three to five times the approvals that you can get on your own.

This is because they know the sources to apply for, the order to apply, and can time their applications so the card issuers won’t decline you for the other card inquiries. Individual approvals commonly range from $2,000 – 50,000.

The result of their services is that you commonly get up to five cards that simulate the credit limits of your highest limit accounts now. Multiple cards generate competition, and this means they will raise your limits, more often than not within 6 months or less of first approval.

While these aren’t business credit lines unsecured by collateral per se, they are rather similar. And the differences between and unsecured business credit cards are probably not going to be noticeable to most.

Approvals

Approvals can go up to $150,000 per entity like a corporation. With UBF they actually get you three to five business credit cards which report just to the business credit reporting agencies. This is huge, something the majority of lenders don’t offer or advertise. Not only will you get cash, but you build your business credit also so within three to four months, you can then use your new company credit to get even more money.

Details

You can get credit with no security, assets, or collateral. The lender has no collateral to collect in case of default. Because there is no collateral, and they don’t look or care about your cash flow, the only thing that matters is your personal credit.

With a 650 you will get only personal cards. But with a 680 credit score, you will get both company and personal cards.

Rates

The lender can also get you low introductory rates, more often than not 0% for 6-18 months. You’ll then pay normal rates after that, typically 5-21% APR with 20-25% APR for cash advances. And they’ll also get you the best cards for points. So this means you get the very best rewards.

Just like with just about anything, there are significant benefits in partnering with a source who focuses on this area. The results will be far better than if you attempt to go at it by yourself.

Learn business loan secrets with our free, sure-fire guide.

Qualifications

You must have excellent personal credit right now, ideally 685 or better scores, the same as with all business credit cards. You shouldn’t have any derogatory credit on your report to get approval. And you must also have open revolving credit on your consumer reports right now.

Balance/Limit Ratios

They consider your balance/limit ratios on existing revolving accounts. The lower the ratio, the higher the amount of the approval. A 30% ratio is a requirement. This looks at overall percentage, and individual percentage on each account.

Credit inquiries are a big factor tying into approval. More than six inquires in six months will be too much. Lenders do not want to see the person is applying for new credit, especially no other revolving accounts.

Learn business loan secrets with our free, sure-fire guide.

Guarantors Welcome

Use a guarantor or a credit partner to boost the numbers. Usually these people want a piece of the business in trade for their assistance. Creditors want to know you’ll pay them back. Most sources will charge 9 to 12% success-based fees. Only pay the fee off what you secure.

Fees

All lenders within this space charge a 9-15% success based fee and you only pay the fee off of what you secure. Keep in mind, you get a lot of extra rewards and about three to five times more money in this program than you’d get on your own, which is why there’s a fee, the same as all other lending programs.

You can get approval with a guarantor and you can even use a wide range of guarantors to get even more money. There are also other cards you can get making use of this very same program but these cards only report to the consumer reporting agencies, not the business reporting agencies. They are consumer credit cards versus business credit cards.

Benefits

Unsecured Business Credit Lines Credit Suite

They deliver similar benefits including 0% intro annual percentage rates and five times the amount of approval of a solitary card but they’re much easier to qualify for.

You can get approval with a 650 score and seven inquiries (or fewer) in the most recent six months and you can have a BK on your credit and other negative items. These are a lot easier to get approval for than UBF business cards.

With all earlier cards above, you must have good consumer credit in order to get approval but what happens if your personal credit is not good, and you don’t have a guarantor?

This is the time when building company credit makes a lot of sense even if you have good personal credit, building your business credit helps you get even more money, and without having a personal guarantee.

Private Investors and Alternative Lenders

Private investors and alternative lenders also grant credit lines. These are easier to get approval for than conventional SBA loans. They also require much less documentation for approval. These alternative SBA credit lines generally demand good personal credit for approval.

Unlike with SBA, many of them don’t necessitate good bank or business credit approval. Nearly all of these sorts of programs call for two years’ of tax returns. Tax returns need to demonstrate a profit. Rates can vary from 7% or greater and loan amounts range from $25,000 into the millions. Loan amounts are typically based upon the revenues and/or profits on tax returns. Sometimes lenders may ask for other financials including a profit and loss statement, balance sheets, and income statements.

Merchant Cash Advances

Merchant cash advances have quickly become the most popular way to get financing, in large part because of the effortless qualification process. Businesses with $10,000 in earnings can get approval, with the business owner having scores as low as 500.

Some sources have now even begun to offer credit lines that accompany their loans. You must have at least $10,000 in revenue for approval. You should be in business for at least one year, however three years is better. Lenders typically want to see a credit score of 650 or better for approval.

Loan amounts are typically around $20,000. Lenders routinely do pull your business credit, so you need to have some credit already and in some cases lenders will want to see tax returns.

Rates vary, due to the risk for this program, and there aren’t a lot of funding sources who offer it.

These can be – in a way – business credit lines unsecured by collateral. This is because the lender gets something better than collateral – a percentage of your incoming revenue.

Get Business Credit Lines Unsecured by Collateral: Credit Cards and Lines are Very Similar

Credit cards frequently offer 0% intro rates for up to two years. This is also extremely useful for startups in particular. And credit lines let you take out more cash at a more affordable rate than do cards. These are the primary two differences which will have an effect on you between credit cards and credit line.

Investopedia even says that “lines of credit are potentially useful hybrids of credit cards.”

Both cards and lines are revolving credit. Credit lines are tougher to qualify for as card approvals are usually very quick, many times automated, while at the same time line require an in-depth underwriting review. Lines usually offer lower rates, per Bankrate card rates average 13% while lines average 4%.

And no matter what, business credit lines unsecured by collateral are going to be even harder to qualify for.

Learn business loan secrets with our free, sure-fire guide.

Unsecured Business Credit Cards

Many of these cards report to the consumer credit reporting agencies. They all demand a personal guarantee from you. You can get approval typically for one card max as they stop approving you when you have two or more inquiries on your report.

Most credit card providers feature business credit cards including Capital One, Chase, and American Express. These have rates similar to consumer rates and limits are also similar.

Some of them report to the consumer reporting agencies, some report to the business bureaus. Approval requirements are similar to consumer credit card accounts.

They are pretty similar to business credit lines unsecured by collateral.

Inquiries

Normally, when you apply for a credit card you put an inquiry on your consumer report. When other lenders see these, they won’t approve you for more credit for the reason that they aren’t sure how much other new credit you have recently obtained.

So they’ll only approve you if you have no more than two inquiries on your report within the most recent six months. Any more than that will get you refused.

Establishing Business Credit

Business credit is credit in a company name, in association with the business’s EIN number, and not the owner’s Social Security Number. When undertaken properly, you can acquire business credit without a personal credit check and no personal guarantee. This is a thing all other cards above can’t deliver.

You can get three types of business credit cards. First is vendor credit, which offers net 30 terms to start a business credit profile. Then is retail credit, where you will get credit cards with high limits at most establishments.

Next is fleet credit. It’s credit to fuel, service, and maintain company vehicles. And then there’s cash credit, which includes Visa, MasterCard, and American Express cards that you can use anywhere. You can acquire these without any credit check or guarantee. Limits are oftentimes $5,000 – $10,000 to start, and can exceed $50,000.

While these types of credit aren’t business credit lines unsecured by collateral, they can often be better. They are often easier to qualify for.

But What About The SBA?

The majority of credit line types that most entrepreneurs think of come from standard banks and traditional banks use SBA loans as their principal loan product for small business owners. This is due to the fact that SBA guarantees as much as 90% of the loan in the case of default. These credit lines are the most challenging to qualify for because you must qualify with SBA and the bank.

Furthermore, you are nearly always going to need some form of collateral. So, by definition, they won’t be business credit lines unsecured by collateral.

Business Credit Lines Unsecured by Collateral: Takeaways

Your business can get business credit lines unsecured by collateral, if you know where to look. Learn more here and get started toward establishing business credit.

 

 

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Break in to the Credit Circle: 6 Easy Approval Business Trade Lines

Everything Starts with Something: Business Credit Starts with Business Trade Lines

Everything has to start somewhere, with something.  A flower starts with a seed.  A book starts with the first letter typed, a house begins with the first nail hammered, and a move begins with the director’s word.  When it comes to business credit, it all starts with business trade lines.

You have heard the adage you have to have money to make money.  You have probably heard you have to have credit to get credit.  While both of these are true to a point, seemingly catching us in a vicious circle, it isn’t entirely true with business credit.

A circle has no clear beginning.  Business credit however, does.  Just not very many people know about it, and it can be difficult to find. We know the secret though, and we are willing to share.

The Prep Work for Business Trade Lines

Of course, we all know that a lot of work goes in a house, a book, a garden, and a movie before that actual first nail, letter, seed, or director’s word.  This prep work lays as solid foundation for the final masterpiece.  There is a way to lay a solid foundation for business credit as well, before you even consider looking into business trade lines.

Research is how a book or movie starts, and any construction starts with clearing the area and dirt work.  A garden spot must be tilled and fertilized before seeds can be planted.  Something similar is necessary to establish and build business credit.  You have to build a solid foundation for that credit to sit on.  Now, that foundation is not necessarily your business.  Your business and your business credit will grow together.  You can start the prep work at the same time you are starting your business.

To be clear, if your business is already up and running you can still establish business credit.  The foundation can still be built.  In this way it is different than a building or a book.  However, as with any first steps, it is much easier to take them in the beginning.

How to Form the Foundation for Business Credit

Before you consider business trade lines, you need to consider how your business is set up.  For many new business owners, starting a business just kind of happens.  You have something you do that you love, and you decide its time to use it to make money.  You may find a location or start from your home.  Likely you simply mingle funds in your personal bank account.  You have a business name but the business address, email, and phone number are all the same as your personal contact information.  It is sort of a natural progression.

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

If you want to establish business credit, you have to be purposeful to set up your business separate from yourself.  This means doing a few things differently.

How to Establish Your Business as a Separate Entity

First, you have to incorporate.  Running as a DBA, sole proprietorship, or partnership really won’t cut it.  You can choose from running as a corporation, S-corp, or LLC based on your specific needs, but it needs to be one of these three. Each one comes associated with a different cost and varying levels of protection, but each will serve the purpose of separating your business from yourself.

Next, establish separate contact information for your business.  You need a business address, email, and phone number that is different from your personal address, email, and phone number.  The phone number should be from a toll-free exchange, and your email address should be associated with your professional website. Do not use a free service such as Gmail or Yahoo, and don’t ignore the professional website part.  These days, a poorly put together website can ruin a business.

Pick Your Numbers

After these first steps are complete you need to play the numbers game.  In order to establish business credit, your business has to have two numbers associated with it.  The first is an EIN.  This is an identifying number for a business, similar to a social security number.  You can get one for free on the IRS website.

The next is a DUNS number.  This is a number assigned by Dun & Bradstreet, the largest and most commonly used business credit reporting agency.  To have a business credit file with them, you must have a DUNS number.  You can apply for it for free on their website, but note that they will definitely try to sell you other services. Be strong.  The number is free and the other services are not necessary.

Separate the Finances to Get Business Trade Lines

Open a separate bank account for your business.  This is the account through which all business financial transactions should run.  If your business is already up and running, it may take you some time to get everything switched over, but it will be worth it.  Not only will is help separate your business from your personal credit, but it will also help tremendously when it is time to do your taxes.

Plant the Seed, Hammer the Nail: The Magic of Business Trade Lines

Okay, so these steps ensure that your business is on record as a business at all the right places.  As soon as something credit related is reporting, it will have a place to go.  How do you get something reported though?  You need accounts that will report your on-time payments.  Lenders will not even consider extending you credit however, if you don’t have a credit score, or if your credit score is bad.  How do you break into the circle?

You can find a tiny crack with business trade lines.  These are vendors that sell things you use in the everyday course of business, and they are vital to building business credit.  Here’s how it works.  They will extend net30 terms on invoices, without a credit check, and then report your invoice payments to the business credit reporting agencies.

For most of these vendors, you will have to make a few initial purchases before they will extent net30 terms.  Some want to see a minimum time in business or a certain revenue level as well.  We have compiled a list of six easy approval business trade lines to help you get started.

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

Newegg Business

If you need computers or other electronics, this is the place to start.  Newegg Business offers tons of electronic products, so there is something that pretty much any business can use.  To open an account with net30 terms, you’ll need a DUNS number and a bank reference.  Net30 accounts range from $500 to $1,000, and they report to Dun & Bradstreet.

Strategic Network Solutions

This company sells eBooks, software, and even office supplies.  You do have to register to see their products, but the process if fast and easy.  You will have to make a $60 or more initial purchase to be eligible for a net30 account of up to $2,000.  They report to Experian and Credit Safe.

Grainger Industrial Supply

Granger industrial supply sells industrial equipment for outdoors as well as standard tools, and more. To gain net 30 approval you will need a business license, a DUNS number, and bank reference.  Their net 30 accounts range from $500 to $1,000 and they report to Dun & Bradstreet.

Summa Office Supplies

Another office supply provider, you can order anything from paper to staples, pens to printer ink, and pretty much anything you can think of in between from Summa.  They require a $60 initial purchase, and will approve up to $2,000 on net 30 terms.  They report to Dun & Bradstreet.

Quill Office Supplies

Quill also sells standard office supplies.  You will need to make an initial purchase.  They’ll usually put you on a 90 day prepay scheduled, but after ordering for 3 months in a row, they’ll typically approve net 30 term.  They report to Dun & Bradstreet.

Uline

Uline sells a lot of things, but they specialize in packing and shipping equipment and janitorial supplies. You’ll need to place an initial order, and they do ask for a bank reference and two other references.  They report to Dun & Bradstreet, so you’ll of course need a DUNS number too.

If you open accounts and get net 30 approval with each of these, you could have between $5,000 and $10,000 in accounts reporting to the credit agencies pretty quickly.  Make your payment consistently, and that seed you planted with these easy approval business trade lines will sprout to the point you will be ready for the next step in building business credit before you know it.

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

What Comes After Business Trade Lines?

These business trade lines are all part of the vendor credit tier.  After you have a few of these accounts reporting, you can apply for accounts in the retail credit tier, then the fleet credit tier, then the cash credit tier.  Here’s what you need to know about each tier, and what happens when you get to the top.

The Retail Credit Tier

This would be relatable to the editing stage of writing a book or a movie, the weeding stage of planting a garden, or the sheetrock stage of building a house.  You’ve done the prework of research or preparing the ground, you have planted that first seed, banged out that first word, or hammered that first nail.  So now, it is time to move on.

In building business credit, after you have enough business trade lines reporting, this means moving on to the retail credit tier.  These are credit cards issued by specific retailers such as Amazon, Office Depot, and Best Buy.  Apply for these accounts, purchase things you need in the everyday course of running your business, and make your payments on-time.  Your business credit score will grow stronger by the day.

The Fleet Credit Tier

This is where you head into publication, start prescreens, water the garden daily, and start getting the inside of that house ready for move in with paint and appliances.  These cards are issued by fleet companies such as Shell and Fuelman.  They can be used to purchase gasoline or for automobile maintenance and repairs.  Once you have enough of these accounts reporting, it’s time for the last tier.

Business Trade Lines Credit Suite2

The Cash Credit Tier

The cash credit tier is the finished product.  Your book or movie is out there for the public to enjoy, your garden is ready for harvest, and you can sleep comfortably in that house each night.  The cash credit tier consists of the traditional Visa, Master, and American Express cards not associated with a specific store. Use this wisely, continue to make consistent, on-time payments, and your business credit will be rock solid.

Why Business Credit?

You may be asking yourself the question, why bother?  You may have personal credit that will allow you to get what you need to run your business without needing to work with business trade lines.   It can take time, and better prices may be available elsewhere.  What’s the point?  Why do you need business credit?

The fact is, its never a good idea to have your business transactions on your personal credit report.  There are a few reasons for this.  First, if your personal credit takes a hit, it can affect your ability to run your business.

Also, business credit cards based on personal credit often have a lower credit limit, and business transactions are often very large.  If you get close to your limit, your score will take a hit even if you make your payments like you should due to the high debt-to-credit ratio.

By having cards based on your business credit, you can get higher limits, and your personal credit will not be affected by business transactions.  This way, you do not have to worry about business transactions keeping you from applying for personal credit you may need to purchase a car or make home improvements.

Business Trade Lines are the Beginning of Great Business Credit

Regardless of your personal credit score, you really do have to work with business trade lines to start your business credit.  After you establish your business and prepare the way for your business transactions to be reported to your business credit profile, you will need accounts to report.  Most credit cards will not extend credit to a business with no credit, or bad credit.  Working with business trade lines that do not do a credit check is a way around that.  You can start building business credit in your business name without your personal credit score ever being involved.  So it’s a win/win for you and for your business.

 

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