21 Digital Marketing Tools You Need When Starting a Business

Did you know there are more than 30 million small businesses in the United States alone?

With a number like this, small business owners need a competitive edge. If you are building a business, chances are you’re looking for ways to get your leg up on the competition. To accomplish this, you’ll need a good marketing strategy and access to the best digital marketing tools.

In this post, I’m going to outline 21 digital marketing tools you need when starting a business. You may be familiar with a marketing tool or two in here; others might be new to you.

From simplifying your social media marketing efforts and project management to finding freelancers, each of these tools will help you get the competitive edge you’re after.

Are you ready to grow your business with digital marketing?

Then let’s begin.

1. MailChimp

Get this: email marketing is used by eight out of ten marketers.

This isn’t something you should wait on. Instead, you should implement an email marketing strategy on day one.

With more than 12 million customers, MailChimp has claimed its spot as one of the top email marketing providers and digital marketing tools in the world.

While there are alternatives, this tool remains one of the best, for many reasons:

  • History dating back to 2001, well before most companies began using email marketing
  • Self-service support options, ensuring that you can quickly find answers to all of your questions
  • Free plan for those with less than 2,000 subscribers and those who don’t send more than 12,000 emails per month

When starting a business, it’s not likely that you will have more than 2,000 subscribers. For this reason, you can get started with MailChimp early using the tool for free as you get your feet wet with email marketing and then move to a paid plan as you scale.

mailchimp digital marketing tool

2. HubSpot

When it comes to marketing, sales, and CRM software, HubSpot has become one of the top players.

For the sake of this post, let’s focus on its marketing software solutions. The company has this to say about this digital marketing tool:

From attracting visitors to closing customers, HubSpot brings your entire marketing funnel together.

You know just how important it is for your marketing funnel to be in good working order. With this software, you have access to tools that help with:

  • blogging
  • SEO
  • social Media
  • website
  • lead management
  • landing pages
  • calls-to-action
  • marketing automation
  • email
  • analytics

There is no stone left unturned, when you rely on HubSpot’s all-in-one marketing software.That’s why it’s a top choice for those who are starting a business.

With everything you need in one place, you don’t have to pull yourself in many different directions. This will help you to find success in the early days and help you as you grow.

hubspot digital marketing tool

3. Trello

Trello is a digital marketing tool that helps you to manage projects and stay on the same page as your team–a sound digital marketing practice if you want to save time and frustration.

For example, you can share blog posts on Trello before you publish them. This gives others on your team the opportunity to review the post, weigh in with their thoughts and make changes that could strengthen the piece before it goes live.

In the past, before the days of Trello and similar programs, email was the best way to collaborate with your team. While this is still helpful, to a certain degree, it can lead to confusion, missed messages, and frustration.

trello digital marketing tools

With Trello, everything related to your online marketing strategy can be shared in the same place. It only takes a few minutes to set up a board. Even better, you can quickly invite your entire staff, all of whom can jump in on the action without delay.

Trello isn’t the only digital marketing tool of its kind, but it’s, by far, one of the best. When it comes to collaborating with others regarding marketing tasks, this tool is hard to beat.

4. Hootsuite

hootsuite digial marketing tools

Social media plays a big part in the success of any company, regardless of size, age, or industry. In fact, I’d argue that social media marketing is a must to thrive in this digital era.

Digital marketing tools like Hootsuite allow you to schedule social media posts in advance, thus saving you loads of time.

Hootsuite offers tons of features to help you grow your business. For example, you can:

  • Identify influencers for your marketing team and leads for your sales team
  • Reply to comments and mentions through the dashboard–there’s no reason to visit each individual platform
  • Take advantage of pre-written responses
  • Schedule posts when your audience is most active (even if you’re asleep!)

Social media marketing is not as difficult as it sounds, especially when you rely on tools like Hootsuite. With this particular tool, you can schedule and manage social media profiles for more than 30 platforms.

Imagine doing this by hand, without a central dashboard to guide you. It would be enough to frustrate even the most experienced entrepreneur, let alone a new business owner. Let Hootsuite take over like the social media marketing manager it is.

5. Google Analytics

As one of the top free tools from Google, Analytics should be part of your digital marketing strategy from the very start. In fact, I’d argue it’s one of the most powerful digital marketing tools out there.

It only takes a couple of minutes to add the Analytics code to your website, giving you the ability to track every action by every visitor.

This is considered by many to be nothing more than a traffic tool, but it can actually have a big impact on your marketing strategy, if you know what you’re doing.

Take, for example, the ability to see where your traffic comes from:

google analytics digital marketing tools

Maybe you realize that a particular social media campaign is driving tons of traffic to your website. With this data, you can adjust your future strategy, in an attempt to capture the same results.

Or, maybe you find that a particular set of keywords is doing wonders for your organic traffic. Again, you can turn your attention to these keywords, ensuring that you keep these in mind as you create content down the road.

Google Analytics isn’t one of those digital marketing tools you can ignore. Installing this early on is a key decision, in regards to your digital marketing strategy. The data you can collect is extremely valuable.

6. KISSmetrics

The tagline of this digital marketing tool says it all:

Track, analyze and optimize your digital marketing performance. See what’s working and what’s not, across all campaigns, mobile and web.

It’s good that you want to spend so much time on digital marketing in the early days of your business. But, do you really want to make decisions that aren’t having an impact?

You need to track and analyze every move that you make, as this is the only way to focus on the tactics that are providing the best return on investment (ROI).

With KISSmetrics, you can easily see what’s working and what’s not, across all of your campaigns.

Take, for example, its Analytics products. With a funnel report, you can see if there are any “leaks” in your business. Here’s a screenshot of what to expect:

kissmetrics digital marketing tool

Starting at $120/month, KISSmetrics isn’t the cheapest digital marketing tool on this list. Even so, it’s one that you’ll want to think about, as your business gets up and running.

With a variety of products at your fingertips, the insights you receive will be invaluable to your company’s growth.

7. Followerwonk

digital marketing tool follower wonk

Do you plan on spending a lot of time on social media marketing?

While this is a great way to engage your audience and send traffic to your website, it’ll only work in your favor if you have a solid plan in place.

Tools, such as Followerwonk, are designed to help you improve your social media marketing strategy, such as by digging into your Twitter analytics data.

I included this digital marketing tool on the list for two reasons: it’s easy to use and it’s extremely effective.

Followerwonk breaks down its service into three distinct categories:

  • Find: Use the tool to search Twitter bios and compare accounts.
  • Analyze: Breakdown your follower list by bio, location, who they follow, and many other criteria.
  • Optimize: match your strategy to follower gains and losses, to understand what type of content performs best.

The only downside of Followerwonk is that it can’t be used with other social media platforms, such as Facebook, Instagram and LinkedIn. However, if you have big plans for Twitter, this is a digital marketing tool you should use often.

Even though you may not use it on a daily basis, it can come in handy from time to time. After all, it’s imperative that you understand your audience.

follower wonk digital marketing tools

8. All in One SEO Pack

If WordPress is your content management system (CMS) of choice, you shouldn’t hesitate to install the All in One SEO Pack plugin.

A big part of your digital marketing strategy should be based around search engine optimization (SEO) and this digital marketing tool will ensure that you always make good decisions regarding your content and its appeal to search engines.

Some of the top features of the plugin include:

  • XML Sitemap support
  • Advanced Canonical URLs
  • Automatic generation of META tags
  • Compatible with most other plugins
  • Automatically notifies major search engines, including Google and Bing, of any site changes

Even though all of these features are exciting, it’s something else that has made it one of the most popular WordPress plugins of all time: its ease of use.

Here’s a screenshot, showing a small portion of the tool’s back end:

digital marketing tool AIOSEO

You don’t have to make many decisions in order to get started. And, if you’re ever confused as to what you should be doing, there is help to be had. All you have to do is click the “?” symbol and you’re provided with more information and advice.

The All in One SEO Pack plugin has more than a million active installs. You won’t have to look far to find competitors, but there’s a reason why so many people use this digital marketing tool.

Not only is it free and simple, but it’s results can’t be denied. It will definitely help your website from an SEO perspective, which is something all new businesses need.

9. BuzzSumo

BuzzSumo is a big deal for people who need to learn more about their market.

When you start a business, it’s safe to say you know a thing or two about your industry and primary competitors. But, once you dig around more, you’ll find that there is tons of data you can use to your advantage.

If you want to better understand your competition or if you want to learn what type of content performs best with search engines and your audience, you don’t need any other digital marketing tool by your side.

A BuzzSumo search results page looks something like this:

digital marketing tools buzzsumo

Additionally, there is high level data associated with each result:

digital marketing tools buzzsumo

This information can come in handy at many times, such as when you are creating content for your blog.

Why guess as to what is performing best in your niche? You can use BuzzSumo to answer this question with 100 percent accuracy.

With this search, you see that the top result has approximately 20k social shares. You now know what to strive for, if you want to achieve the same level of success.

As a big fan of BuzzSumo, this is a ditial marketing tool that I use on a regular basis. Even if you don’t do much with the data at first, each search will help you to better understand your competition and target audience.

10. Crazy Egg

crazy egg digital marketing tool

Do you ever find yourself asking this question: what’s working and what’s not about my website?

This is where Crazy Egg can step in and provide assistance.

There are two keys here:

  • You can use Crazy Egg to make website changes that generate better results.
  • You don’t need much, if any, IT help to get started.

When you’re new to your business, you don’t want to spend countless hours dealing with IT issues. Unfortunately, this often happens when it comes to split testing. Unless you use Crazy Egg, of course.

The tool is packed with features, such as:

  • heatmaps and mouse recording
  • analysis and reporting
  • platforms and integrations
  • targeting and personalization
  • research and user feedback

A tool that helps you understand what your website visitors like and don’t like, so you can maximize your sales and leads, means that you have to give Crazy Egg a try. It’s one of those digital marketing tools that you don’t know you need, until you use it one time.

11. UberSuggest

ubersuggest marketing tool for starting a business

Not only is keyword research a challenging task, but it can also get expensive with the price of premium keyword research tools. Your typical free software won’t offer you much but UberSuggest isn’t your typical free software. 

Digital Marketing Tools You Need When Starting a Business ubersuggest screen shot

As a whole, this digital marketing tool is easy for beginners because the dashboard is simple to navigate so you can quickly find the data you want. You’ll start by entering a root keyword or domain that you want to research. You get up to three free searches per day on the free version and you can upgrade to a paid software as well. 

UberSuggest provides useful keyword information such as total search volume, difficulty, and paid difficulty if you’re thinking of running an ad campaign around that keyword. 

digital marketing tools for starting a business ubersuggest keyword ideas

As you work your way down you’ll see historical data that will show you how that keyword has trended over time. This is helpful for determining seasonal keywords or ones that are popular now but may die off over time. 

You also get keyword ideas and suggestions that are relevant to the one you’re searching for so you can update older content or develop a content marketing plan.

Overall, UberSuggest is an amazing free keyword research tool that is a great choice for beginners and has enough value as a paid tool for those who are scaling as well.

12. CoFoundersLab

digital marketing tools for starting a business cofounders lab

CoFoundersLab is a great digital marketing tool for small businesses that are growing but need a little help to take things to the next level. It uses AI to help you find a cofounder, additional member, or advisor based on a certain set of criteria.

The best digital marketing tools make life easier. CoFoundersLab intends on helping to create a large ecosystem of business owners, entrepreneurs, consultants, and advisors so it’s that much easier to find whatever you need at the current stage in your business. 

For example, you can search for someone with a specific skill and find them instantly without having to post on job boards, conduct interviews, and do onboarding. If you’re looking for an SEO content creator, you’ll simply fill out that set of criteria and be instantly connected to someone who can fill that role. 

It’s similar to other freelancing platforms out there, but what separates CoFoundersLab is you can find someone who is on the same level. If you’re looking for someone to financially back your business or simply support you equally in your venture, this might be the place to do it. 

13. Adobe Sign

adobe sign digital marketing tools for starting a business

When it comes to must-have digital marketing tools, Adobe Sign more than makes the cut. It’s a cloud-based e-signature service that helps you use less paper, save time, and get signatures using an automated signature system. You can send documents, sign, and manage the whole process via desktop or mobile device. 

There are also integrations to keep records of all the signatures you’ve received so you can reference back if you lose something important. 

This simple but useful tool solves a major problem that a lot of businesses have. More and more people are working remotely and may not have access to printers and scanners. This creates delays in your workflow and can frustrate customers if you’re unable to get them what they want because you’re waiting on signatures and approvals. 

Adobe Sign is also usable from anywhere on any device. Someone can be on their way to a meeting in the car and sign on their mobile device using their fingertip. No need to print anything, scan, fax, anything. It’s completely digital, safe, and secure. 

14. DropBox

DropBox is an essential piece of the modern digital business. It allows all the working pieces of your business to come together in one place to eliminate clutter and save time looking for things. 

Organization is the key to a successful business, and downloading and sharing files simply doesn’t cut it anymore. With people working from home, you can’t have everyone downloading personal company files onto their computers, misplacing them, or potentially abusing them. 

DropBox prevents this from happening by being a totally cloud-based document sharing platform that allows you to set permission levels so certain people can only see what they need to. 

You can also connect other tools like Slack and Zoom to DropBox so you have everything in one place. All company data stays in one place so it’s organized, safe, and accounted for. 

If you’re still manually downloading files to your computer, attaching them to emails, and sending them off into space, you’ll find DropBox is a much more efficient and safer way to keep track of documents and document sharing in your business. 

15. Full Access to Suite of Gmail Products

digital marketing tools to start a business google products

I don’t know where I would be without the full line of Gmail products. There used to be a time when we’d create pieces of content in Word platform, download it, and then attach it to an email and send it off. 

The next person would mark it up with notes and adjustments, send it back, and the process would start over.

Thankfully, those days are long gone.

With Google Docs and Sheets, you can share documents in real-time and actually mark them up with the writer looking at them so you can see what they’re doing. There’s a chat feature and a suggestion area, too where you can ask questions and provide responses as to why a certain adjustment was made. 

There’s a level of security and protection here, as well. Different permission levels ranging from “view” to “edit” give you complete control over your documents. If you’re sending a document off as a reference to something, you might not want that person to make any changes to it without making a copy for themselves, the Gmail Suite of products can do that. 

Plus, everything syncs with your Google Calendar. If you’re talking in an email about setting up a call in three days, you can instantly set that appointment on your calendar and you’ll receive reminders across all your devices. 

16. ODeskWork

odesk work digital marketing tools

oDeskWork is a freelancer platform that connects you with the right virtual assistant or freelancer to support your business. At some point, every business needs to start hiring. No matter what business you’re in, to grow and scale, you need a support system because you can’t do everything.

This is where digital marketing tools like oDeskWork come into play. You can upload current projects that you need completed, browse profiles, and start communicating with potential candidates.

The platform also offers payment protection, so you ensure you get the services you anticipated. Payments are only released to the freelancer when you’re satisfied with the work they completed. 

oDeskWork has experts and freelancers in all different kinds of niches including digital marketing, virtual assisting, transcribing, proofreading, writing, editing, SEO, WordPress, and more.

17. Upwork

upwork digital marketing tools

Upwork is a freelancer platform that connects you with qualified candidates who can help your business grow, making it a must-have digital marketing tool. What I like most about Upwork is the transparency you get and the fact that you can see all types of work that the freelancers have completed.

For example, if you’re browsing for someone to build you a WordPress website, you wouldn’t hire someone without first seeing what type of work they do, right? 

The platform will show you examples of their work, their job success rating, a description of their skills, their rate per hour, as well as any badges they’ve earned for continuous performance. 

When you’re searching for tools for digital marketing agencies, the last thing you need is to waste time with people who can’t deliver. Upwork ensures that doesn’t happen with their escrow protection as well. None of the money you pay for a job will be released until you are happy with it. 

I also find that Upwork is a great place to find long-term working relationships with freelancers that you can use on an ongoing basis versus a one-off job. 

18. Fiverr

fivver digital marketing tools

I like to think of Fiverr as Upwork’s little brother. When you’re looking to create long-term working relationships and hire someone who can really provide you with a premium service, you should turn to Upwork. 

Sometimes though, you’re just looking for a quick job that someone can turn around fast for an affordable price. For example, if you need someone to do up a quick logo for an affiliate site for five dollars, Fiverr is the way to go. 

One thing I really like about Fiverr is you can quickly sift through freelancers using the search feature. Type in the service you’re interested in, and you’ll find information such as overall rating and average starting cost. 

Fiverr also provides certain freelancers with titles like “top-rated seller” and “level 2 seller.” These will help you determine what level of experience you’re looking for in the job you need to be completed. The best digital marketing tools offer this kind of trust.  

This tool is best for one-off jobs that are lower budget and not as difficult, but I wouldn’t recommend hiring off Fiverr for anything too involved such as link building or content creation. 

19. OmniFocus

omnifocus digital marketing tool

Need to stay on task? This digital marketing tool can help.

OmniFocus is a task management tool that helps you manage all your operations in one place. You can keep track of everything that’s going on all from your browser or mobile device. 

You can tag certain projects, assign them to the individual you want to complete them, and set due dates so you can lay out your week in the most productive way possible. As work comes in, you can assign support workers to handle the task and close it out when it’s complete. 

One of my favorite things about OmniFocus is the forecast feature where you can get an overall snapshot of what you have coming up in the future including recurring tasks that might only happen once per quarter, bi-annually, or even every few years. This ensures that no one forgets anything. 

The main downside is that this tool is only available for Apple users at this point. For all the Windows and Android people out there, you’ll have to go with something else like Trello or ClickUp for now.  

20. Zoom

zoom digital marketing tool

We all know Zoom as the video conferencing software used to bring people together no matter where they are on the planet. We’re all facing our own unique remote working situation but we still need to connect sometimes and Zoom allows that to happen. The best digital marketing tools help bring businesses together. 

You can share your screen, draw on the screen, record meetings, and invite others to join in as well. Zoom offers free video conferencing for up to 100 participants for up to 40 minutes.

If you’re holding a one-on-one meeting that runs longer than 40 minutes, I’ve found in the past that Zoom will often extend the meeting for free with no time limit. 

21. Toggl 

toggle digital marketing tool

Toggl helps bring this list of digital marketing tools together. For all the work you’re doing, freelancers you’re managing, and documents you’re sharing; you need to have an idea of how long everything takes.

This tool does that with time tracking, reporting, and project planning. You can use Toggl to get an accurate representation of how long a task or project will take so you can know how many resources you need to allot for next time. 

Toggl offers a few different tools for time tracking, project planning, and candidate-screening so it’s an all-inclusive tool for businesses that manage a remote team.

Conclusion

Starting or growing a business isn’t easy, but it doesn’t have to be overwhelming, either.

The first step is to create a strong digital marketing strategy–one that incorporates social media marketing, search engine optimization, email marketing, and consistent, valuable content that truly speaks to your audience.

Ensuring your business succeeds means using the right digital marketing tools at the right time. It’s my hope that this list will help you in your digital marketing efforts and bring you the success you seek.

Would you add any other tools to this list? Did you use any of these as you launched your small business? Share your thoughts in the comment section below.

From Set Up to Business Start Up Loans: What You Need to Know About Starting a Business

If you are thinking about starting a business, there is a lot you need to know. Our business experts can walk you through the entire process to ensure you have the fundability you need to succeed. From how to set up your business as a fundable entity to making sure you have what lenders are … Continue reading From Set Up to Business Start Up Loans: What You Need to Know About Starting a Business

6 Things You Need to Know About Alternative Business Lending

Alternative business lending rose from the ashes of the 2008 crash. This was a time when lenders were giving almost no one money.  It was virtually impossible to get a loan of any sort for any reason. Business loans were extremely hard to come by, and when you could get one, rates were terrible. 

Alternative Business Lending: Your Questions Answered

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

As a result, alternative lenders began to pop up. Funding Circle is credited with being the first, but others soon followed. That means this is a fairly new game.  It can be hard to figure out if it is one you should play. This should help. 

  1. What is alternative business lending? 

alternative biz lending Credit SuiteThis type of lending is offered through private companies, not traditional financial institutions like banks and credit unions. They can be an option for those who do not qualify or who do not have the time to wait for a bank loan. These lenders explore other ways of verifying creditworthiness and other forms of collateral. 

Collateral may include credit card transactions, open invoices, equipment, real estate and more. 

  1. How much is alternative business lending?

This is a question asked by many when they first start considering alternative lending options.  The truth is, it depends. That’s the case with any loan.  There are fees, and interest is a factor.  Typically interest is higher with alternative lending. But if you can’t get anything else, you can’t really compare.  

  1. What are the pros of alternative business lending? 

So, why choose alternative lending? Well, if you can’t get a traditional business loan you may need to consider this option. However, there are other reasons as well. For example, alternative lenders typically fund much faster. So, if you need fast cash, this could be the way to go. 

Also, the application process is usually faster and easier. Often you can apply online in a matter of minutes. Repayment terms are usually more flexible as well. 

  1. What are the cons of alternative lending?

As already mentioned, interest rates with alternative loans are usually higher. There is also a breeding ground for scammers in this industry.  It’s important to know how to recognize predatory lending practices to avoid being taken advantage of.

  1. Is alternative business lending right for you? 

If something is blocking you from being approved for a loan through a bank or credit union, then the answer to this question is probably yes. It is highly likely that this is a type of lending that can work well for your business. This is especially true if you have invoices, accept credit card payments, or need to finance equipment. Common types of alternative loans include: 

  • Merchant cash advances
  • Invoice financing
  • Equipment financing
  • And  real estate financing

There are other options as well, and they vary between lenders. These are some of the most 

common however. 

  1. A credit expert can help you find the best alternative business funding for your business. 

Now you need to figure out which lender and which products from that lender will work best for your specific business needs and goals.  The best choice is to work with a business credit expert.  This is someone that can help your maneuver through the process in the most effective and efficient way.  That will help immediately.  Beyond that, into the long-term, an expert in business credit can help you figure out why you are being denied funding, and help you fix the problem. 

Where should  you start when looking for alternative lenders? Here are some options to consider. 

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

Fundbox

Fundbox offers a line of credit rather than a loan.  Still, it is a great funding option because there is no minimum credit score requirement. 

 They offer an automated process that is super-fast. Repayments are automatic, meaning they draft them electronically, and they occur 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, as the repayment period is comparatively short.  This means you need to be sure you have enough funds in whatever account you connect them to so that it can cover your payment to Fundbox  each week. 

 BlueVine 

You will find with most any online lender, they often offer options more similar to invoice factoring and lines of credit.  This is because those options present fewer risks than straight term loans.  BlueVine is no different. 

Upstart

Upstart is an online lender that uses a completely innovative platform for loans.  The company itself questions the ability of financial information and FICO on their own to truly determine the risk of lending to a specific borrower.  Instead, they choose to use a combination of artificial intelligence (AI) and machine learning to gather alternative data for use in making credit decisions.

This may include such things as mobile phone bills, rent, deposits, withdrawals, and even other information less directly tied to finances.  The software they use learns and improves on its own. You can use their online quote tool to play with different amounts and terms to see the various interest rate possibilities.  

Upstart’s innovative platform makes them one to research for sure. 

Fora Financial 

Founded in 2008 by college roommates, online lender Fora Financial now funds more than $1.3 million in working capital around the United States. There is no minimum credit score, and there is an early repayment discount if you qualify. 

 OnDeck 

Obtaining financing from OnDeck is quick and easy. First, you apply the OnDeck website and receive your decision once application processing is complete. If you receive approval, your loan funds will go directly to your bank account. The loan amounts range up to $500,000.

 Lending Club

Popular online lender Lending Club offers term loans.  You can get a quote in less than 5 minutes. Funds are available in as little as 48 hours if approved. There are no prepayment penalties.

Kiva 

Kiva is an online lender that is a little different. For example, the interest rate is 0%.  That means even though you have to pay it back, it is absolutely free money. They don’t even check your credit. However, there is one catch.  You have to get at least 5 family members or friends to throw some money in the pot as well. In addition, you have to pitch in a $25 loan to another business on the platform. 

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

Accion 

If your personal credit is okay, Accion may be a good fit for small business startup loans. It is a microlender, a nonprofit, that offers installment loans to both startups and already existing businesses. 

 Credibly 

Credibly is also a good option for business loans if you are already generating some revenue. They offer short term loans for both business expansion and working capital. You must be in business for at least 6 months to qualify, and Credibly will approve loans to those with credit scores as low as 500. 

Alternative Business Lending Is a Great Tool, but Not a Forever Answer

I mean, it could be a forever answer, but there is a better way.  If you work to build up your fundability, you can get a lot of perks offered by alternative business lending with the interest rates offered by traditional loans.  You could have the best of both worlds.  It takes time to get there however, and alternative loans are the best option for many in the meantime. 

The post 6 Things You Need to Know About Alternative Business Lending appeared first on Credit Suite.

From Set Up to Business Start Up Loans: What You Need to Know About Starting a Business

If you are thinking about starting a business, there is a lot you need to know. Our business experts can walk you through the entire process to ensure you have the fundability you need to succeed. From how to set up your business as a fundable entity to making sure you have what lenders are looking for when it comes to approving start up business loans, here is what you need to know. 

How to Get Start Up Business Loans and Other Funding

If your business isn’t fundable, you will not get startup business loans, plain and simple. Of course, if you are a start up you aren’t going to have a ton or revenue or business credit history.  So, what can you do to ensure you have a fundable business that can get the money needed to get up and running? 

Credit Line Hybrid Financing: Get up to $150,000 in financing so your business can thrive.

The Set Up, and Why it Matters

Fundability starts in the very beginning.  How you set your business up can make or break your ability to get business start up loans.  Here’s why. Lenders want to see that your business is a stand alone entity, fundable on its own apart from you as the owner. It lends credibility to your business as one that is strong and able to survive on its own merits.

start up loans Credit SuiteTo start this process, you need to make sure your business has its own name and contact information. Do not use your own phone numberaddress, or email address. You also need to apply for an EIN. It’s free on the IRS website. This is an identifying number for your business that’s similar to an SSN for an individual.

After that, it is vital that you incorporate. Choose whichever options works best for your budget and liability needs, S-corp, LLC, or corporation.  But, you must do it. It makes all the difference when applying for business start up loans. 

Then, you need to have a separate, dedicated business bank account. It further lends credibility to your business as one that is legit, and there are a number of other benefits that will serve your business well in the future.  For now, just know it is preferred by lenders. 

Business Plan

If your business is properly set up, you will need a business plan. Most business loan applications have a place where you can just fill in the blanks for this part, but that is not what you want to do. You need a professional, well put together business plan that shows you know what you are doing with the money you are asking for. 

You can find templates online, including at SBA.gov.  However, it’s even better if you can hire a professional business plan writer. You will also likely have to hire other professionals to help you complete each part of the business plan. 

For example, you will need a marketing specialist to help you with the market research and an accountant to help with the forecast and other financial sections. The better your business plan presentation is, the better off you will be. 

Business Start Up Loans and Other Funding

Ok, so now for the nuts and bolts. You cannot start a business without money. If your business is properly set up and you have a solid, professional business plan, you have given yourself a great start. It’s time to find the money. 

Credit Line Hybrid Financing: Get up to $150,000 in financing so your business can thrive.

Business Start Up Loans

There are a few different options when it comes to business start up loans. Traditional loans are the most common and typically the first on the list with new business owners. It’s just what everyone knows. If you want to start a business you go to the bank and get a loan.  That works for a lot of people. 

Generally these are all secured loans. That means you put up collateral. However, if you have fabulous personal credit, you might be able to get an unsecured business start up loan. The thing is, you may not want to. You are almost always going to get better rates and terms if you use collateral. 

SBA Loans

For most, SBA loans are going to be the way to go.  These are business loans that have a government guarantee. Because of this, lenders are able to offer them to business owners with lower credit scores than they would otherwise, and the interest rates tend to be better as well. 

Credit Line Hybrid

This is a great option for those needing business start up loans for a number of reasons. First, if security is an issue, this is totally unsecured business financing. You do not put up any collateral, and you can get up to $150,000. It is also no-doc financing, meaning you do not have to provide banks statements or financials of any kind. 

All you need is to have a personal credit score of at least 680 and meet a few other requirements. However, if you do not meet those requirements, you can take on a credit partner that does. You can use the credit of a friend or family member to apply for the credit line hybrid, and the payments will still report to your business credit report, thus building your business credit score. 

Investors and Crowdfunding

Even though business start up loans are where most new business owners head first for funding, they are far from being the only way.  Of course corporate investors are an option. Similar to a business plan, you need a pitch. Angel investors are an option as well. While debt free and effective, neither of these are particularly easy to come by. 

 Another option when it comes to looking for investors is Crowdfunding. It’s not a huge success rate, but there are some businesses that are able to get all they need from this form of funding. You’ll never know if you don’t try. 

Help Through the Weeds

The biggest issue when it comes to business start up loans, and really any other part of starting a business, is getting through the weeds. It can be overwhelming to try and figure out what you need to do to qualify for the funding you need, and then figure out what funding will actually work best for you. A business credit expert is vital to this process. While it is possible to do it alone, it is well worth any expense to get things done not only faster, but the right way to ensure nothing is missed. 

Credit Line Hybrid Financing: Get up to $150,000 in financing so your business can thrive.

Business Start Up Loans: Fundability Matters

The truth is, fundability matters regardless of the type of start up funding you use. The reason is, you are likely going to need to access funding of some type throughout the life of your business. If your business is not fundable, you will not be able to get it. So, the best option is to work with a business credit expert now, to get you on the path to fundability while helping you find business start up loans and other types of start up funding to get you up and running. Building fundability and business credit takes knowledge and intentionality. Don’t try to do it alone. You don’t have to. 

The post From Set Up to Business Start Up Loans: What You Need to Know About Starting a Business appeared first on Credit Suite.

5 Reasons Why You May Need an Online Business Loan

These days you can find anything online. In fact, you can even find an online business loan.  Some business owners shy away from this option because of the fear of predatory lending. It is possible to find online lenders that will work for your business though. 

Is an Online Business Loan for You?

So, is an online business loan right for you and your business? Here are five ways to know. 

  1. You do not qualify for a loan from a traditional lender, like a bank or a credit union. 

          Online lenders tend to have less strict application requirements, including lower credit score minimums. 

      2. There is no time to wait. 

           You need funds quickly. Online lenders typically fund much faster than traditional lenders. 

      3. You flexible terms

          Online business loans often have more flexibility repayment options. 

     4. You have invoices or accept credit card payments.  

           Online lenders often offer invoice financing and merchant cash advance options. 

     5. It’s impossible for you to wade through the paperwork necessary for a traditional loan. 

           Online lenders usually have super fast application processes. Most of the time you can apply online for a business loan in just a few minutes. 

online business loan Credit Suite

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

Where Can I get a Business Loan Online? 

There is no shortage of options for online lenders out there.  However, you must be careful to choose the best one for you. It is extremely helpful to have a business credit expert help you.  Still, here are a few to help get you started on your search. 

Remember, details for an individual online business loan or lender,  such as interest rates, fees, and credit score requirements, can change frequently. Always check with the lender directly for the most up to date information. 

BlueVine 

BlueVine offers funding up to $100,000. Annual revenue must be $120,000 or more and the borrower must be in business for at least 6 months. Your personal credit score has to be 600 or above. It is important to note also that BlueVine does not offer funding in all states.  

Upstart

Upstart is an online lender that uses a completely innovative platform for loans.  The company chooses to use a combination of artificial intelligence (AI) and machine learning to gather alternative data instead of relying solely on credit score.  They then use this alternative data to help make credit decisions.

It can include such mobile phone bills, rent, deposits, withdrawals, and even other information less directly tied to finances.  The software learns and improves on its own. You can use their online quote tool to play with different amounts and terms to see the various interest rate possibilities.  

To be eligible for a loan with Upstart, you must meet the following qualifications per their website:

  • Credit score of 620+
  • No bankruptcies or negative public records
  • No delinquent accounts
  • Meet debt to income standards (they only note they will check this ratio, not what their standards are.)
  • Have fewer than 6 inquiries in the past 6 months on your credit report, not including those related to student loans, vehicle loans, or mortgages

online business loan Credit Suite

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

Fundbox

Fundbox is a great option because there is no minimum credit score requirement for their line of credit product.  

 They offer an automated process that is super-fast. Repayments are automatic, meaning they draft them electronically, and they occur 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, as the repayment period is comparatively short.  This means you need to be sure you have enough funds in whatever account you connect them to so that it can cover your payment each week. 

Fora Financial 

Founded in 2008 by college roommates, Fora Financial now funds over a million in working capital around the United States. There is no minimum credit score, and there is an early repayment discount if you qualify. 

 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. 

Bond Street

Offering term loans of up to $1 million, Bond Street will ask for both EIN and SSN.

Their offer arrives within 3 days. They will only do a soft credit pull, and a 640 or better credit score is likely to get you a loan.  However, they will look at other factors too.  For example, they require 2 years in business and annual revenue of at least $200,000.

Lending Club

Lending Club offers term loans. Business loans go up to $300,000. You can get a quote in less than 5 minutes. Funds are available in as little as 48 hours if approved. There are no prepayment penalties.

Annual Revenue must be $75,000 or more. You must be in business for 2 years or more. Personal FICO score of 620 or better is required.

Rapid Advance

Rapid Advance offers standard, select, and preferred loans. Your company must have annual revenue of $120,000 or more. You must have a personal FICO Score of 580 or better. The minimum time in business is 2 years. 

Kiva 

Kiva is an online lender that is a little different. For example, the interest rate is 0%, so even though you have to pay it back it is absolutely free money. They don’t even check your credit. However, there is one catch.  You have to get at least 5 family members or friends to throw some money in the pot as well. In addition, you have to pitch in a $25 loan to another business on the platform. 

OnDeck 

Obtaining financing from OnDeck is quick and easy. First, you apply online and receive your decision once application processing is complete. If you receive approval, your loan funds will go directly to your bank account. 

You need a personal credit score of 600 or more.  Also, you must be in business for at least one year. Annual revenue must be at or exceed $100,000. In addition, there can be no bankruptcy on file in the past 2 years and no unresolved liens or judgements. 

online business loan Credit Suite

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

Accion 

If your personal credit is okay, Accion may be a good fit. It is a microlender, a nonprofit, that offers installment loans to both startups and already existing businesses. The minimum credit score is 575. In some places they will go as low as 500. You don’t have to already be in business, but if you are not, you must have less than $500 in past due debt. In addition, your business needs to be home or incubator based. 

 Credibly 

Credibly is also a good option for business loans if you are already generating some revenue. They offer short term loans for both working capital and expansion. You must be in business for at least 6 months to qualify, and they will approve loans to those with credit scores as low as 500. 

Do You Need an Online Business Loan? 

You might.  If you fall under any or all of these 5 reasons, an online loan may very well work for you. Business funding is a difficult landscape, and there are many more options than most realize. Consider these options, do your research, and don’t be afraid to ask a business credit expert for help.  It could very well propel your business to new heights. 

The post 5 Reasons Why You May Need an Online Business Loan appeared first on Credit Suite.

Need Funding? Our Credibly Recession Financing Review Can Save Your Business

Get the Funding Your Business Craves with Our Credibly Recession Financing Review

If you’ve been looking for a Credibly recession funding review, then look no further.

Credibly is one of several online lending companies. They are actually an emerging Fintech platform. They also provide SBA PPP loans.

Credibly can provide small business funding for working capital or small business expansion.  You can also get a line of credit through them, equipment financing, invoice factoring, and merchant cash advances.

Credibly Recession Funding Review: Background

Credibly is located online here: www.credibly.com. Their physical addresses are located in Southfield, Michigan; New York, New York; and Scottsdale, Arizona.  You can call them at: (888) 664-1444. Their contact page is here: www.credibly.com/contact.

You can email them at: customerservice@credibly.com.

Credibly Recession Funding Review: Qualification Requirements

Your company has to in business for at least 6 months at the minimum. In addition, you need to have at least $15,000 in monthly revenue. You must have a personal credit score of 500 or better.

Credibly also will want to review your most recent three months’ worth of bank statements while they consider whether to grant your application for funding.

Credibly offers $5,000 to $400,000 in funding. Get money fast – within 24 – 48 hours.

Credibly will perform a soft credit pull only to check your qualifications. But before you receive funding, Credibly will do a hard pull which will appear on your credit profile and may affect your credit score.

In addition, they will want a personal guarantee. They do not require you to provide collateral.

Credibly Recession Funding Review: Working Capital Loans

Get up to $400,000 in funding. Terms are 6 to 18 months. Pay factor rates as low as 1.15. For loans over $100,000, they want to see your most recent business tax return.

Credibly Recession Funding Review: Business Expansion Loans

Get up to $250,000 in funding. Terms are 18 or 24 months. Interest rates start at 9.99%. You must have a FICO score of 600 or better and three or more years in business. Also, you must have $3,000 or more in average daily balances.

Credibly Recession Funding Review: Fees

Pay a one-time 2.5% of the total loan amount set up fee. This fee is deducted from your proceeds. Rates start at 9.99%.

Credibly Recession Funding Review: Lines of Credit. Invoice Factoring, and Equipment Financing

These forms of funding are only available through Credibly’s network of external funding partners.

Credibly Recession Funding Review: Merchant Cash Advances

Get up to $400,000 in funding. Duration is anticipated to be 3 to 18 months. Pay factor rates as low as 1.15. Automatic remittances are tied to your receivables.

Credibly Recession Funding Review: Advantages

Advantages include a short time in business requirement. A short time to funding is also attractive.

Credibly Recession Funding Review: Disadvantages

One set of disadvantages are that they will want a personal guarantee and they will do a hard pull on your personal credit.

For startup companies and their founders in particular, who are often on some shaky financial ground to begin with, this could prove problematic. For these sorts of companies and business owners, a better choice might be to try crowdfunding or angel investing if either is possible. In that way, a business owner’s personal assets would be safer. And, their personal credit would not be affected.

A Viable Alternative – Building Business Credit

Business credit is credit in a small business’s name. It doesn’t attach to a business owner’s personal credit, not even when the owner is a sole proprietor and the solitary employee of the small business.

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

The Advantages

Because company credit is independent from personal, it helps to secure a small business owner’s personal assets, in the event of court action or business insolvency.

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

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

Personal credit scores depend on payments but also various other components like credit use percentages.

But for business credit, the scores truly merely depend on if a small business pays its bills timely.

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

The Process

Establishing company credit is a process, and it does not occur automatically. A business needs to actively work to establish company credit.

Nevertheless, it can be done readily and quickly, and it is much swifter than developing consumer credit scores.

Vendors are a big component of this process.

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

Company Fundability

A company needs to be fundable to lending institutions and vendors.

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

Additionally, company phone numbers must have a listing on 411.com. Use ListYourself to get a listing.

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

A business will also need a bank account dedicated solely to it, and it must have every one of the licenses essential for operation.

Licenses

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

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

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

Dealing with the IRS

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

A business can get started as a sole proprietor. But they will most likely wish to switch to a type of corporation or an LLC.

This is in order to decrease risk. And it will optimize tax benefits.

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

Sole Proprietors Take Note

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

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

Plus, according to the Internal Revenue Service, using this structure there is a 1 in 7 chance of an IRS audit. There is a 1 in 50 probability for corporations! Prevent confusion and dramatically reduce the odds of an Internal Revenue Service audit simultaneously.

Any DBA should be a stepping stone to incorporating.

Starting Off the Business Credit Reporting Process

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

Once in D&B’s system, search Equifax and Experian’s websites for the small business. You can do this at www.creditsuite.com/reports. If there is a record with them, check it for accuracy and completeness. If there are no records with them, go to the next step in the process.

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

Vendor Credit

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

And with an established business credit profile and score you can begin to get retail and cash credit.

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

But to start with, what is trade credit? These trade lines are credit issuers who will give you starter credit when you have none now. Terms are in most cases Net 30, versus revolving.

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

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

Details

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

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

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

Vendor Credit – It Helps

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

You want 3 of these to move onto the next step, which is retail credit.

Retail Credit

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

Only use your SSN and date of birth on these applications for verification purposes. For credit checks and guarantees, use the company’s EIN on these credit applications.

Fleet Credit

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

Cash Credit

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

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

Monitor Your Business Credit

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

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

Update Your Record

Update the data if there are inaccuracies or the information is incomplete. At D&B, you can do this at: https://iupdate.dnb.com/iUpdate/viewiUpdateHome.htm. For Experian, go here: www.experian.com/small-business/business-credit-information.jsp. And for Equifax, go here: www.equifax.com/business/small-business.

Fix Your Business Credit

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

Disputes

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

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

A Word about Building Business Credit

Always use credit responsibly! Don’t borrow more than what you can pay back. Track balances and deadlines for payments. Paying punctually and in full will do more to raise business credit scores than just about anything else.

Establishing business credit pays off. Good business credit scores help a small business get loans. Your credit issuer knows the company can pay its debts. They recognize the company is for real.

The business’s EIN connects to high scores and lenders won’t feel the need to ask for a personal guarantee.

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

Credibly Recession Funding Review: Takeaways

Companies that do best on Credibly will be fairly new players but with relatively meteoric rises.

A business owner asking for a loan should be prepared for a hard pull on his or her personal credit scores, which will impact those scores. This is just like all hard pulls do.

If an entrepreneur does not have the wherewithal to ride out a slightly lower personal credit score for a couple of years, then Credibly is not for them.

And finally, as with every other lending program, whether online or offline, remember to read the fine print and do the math. Go over the details with care. Decide if this option will be good for you and your company.

In addition, consider alternative financing options that go beyond just lending. These include building business credit and unsecured business financing. This is in order to best decide how to get the money you need to help your business grow.

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

 

 

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Need Funding? Our Credibly Recession Financing Review Can Save Your Business

Get the Funding Your Business Craves with Our Credibly Recession Financing Review If you’ve been looking for a Credibly recession funding review, then look no further. Credibly is one of several online lending companies. They are actually an emerging Fintech platform. They also provide SBA PPP loans. Credibly can provide small business funding for working … Continue reading Need Funding? Our Credibly Recession Financing Review Can Save Your Business

Need Funding? Our Credibly Recession Financing Review Can Save Your Business

Get the Funding Your Business Craves with Our Credibly Recession Financing Review

If you’ve been looking for a Credibly recession funding review, then look no further.

Credibly is one of several online lending companies. They are actually an emerging Fintech platform. They also provide SBA PPP loans.

Credibly can provide small business funding for working capital or small business expansion.  You can also get a line of credit through them, equipment financing, invoice factoring, and merchant cash advances.

Credibly Recession Funding Review: Background

Credibly is located online here: www.credibly.com. Their physical addresses are located in Southfield, Michigan; New York, New York; and Scottsdale, Arizona.  You can call them at: (888) 664-1444. Their contact page is here: www.credibly.com/contact.

You can email them at: customerservice@credibly.com.

Credibly Recession Funding Review: Qualification Requirements

Your company has to in business for at least 6 months at the minimum. In addition, you need to have at least $15,000 in monthly revenue. You must have a personal credit score of 500 or better.

Credibly also will want to review your most recent three months’ worth of bank statements while they consider whether to grant your application for funding.

Credibly offers $5,000 to $400,000 in funding. Get money fast – within 24 – 48 hours.

Credibly will perform a soft credit pull only to check your qualifications. But before you receive funding, Credibly will do a hard pull which will appear on your credit profile and may affect your credit score.

In addition, they will want a personal guarantee. They do not require you to provide collateral.

Credibly Recession Funding Review: Working Capital Loans

Get up to $400,000 in funding. Terms are 6 to 18 months. Pay factor rates as low as 1.15. For loans over $100,000, they want to see your most recent business tax return.

Credibly Recession Funding Review: Business Expansion Loans

Get up to $250,000 in funding. Terms are 18 or 24 months. Interest rates start at 9.99%. You must have a FICO score of 600 or better and three or more years in business. Also, you must have $3,000 or more in average daily balances.

Credibly Recession Funding Review: Fees

Pay a one-time 2.5% of the total loan amount set up fee. This fee is deducted from your proceeds. Rates start at 9.99%.

Credibly Recession Funding Review: Lines of Credit. Invoice Factoring, and Equipment Financing

These forms of funding are only available through Credibly’s network of external funding partners.

Credibly Recession Funding Review: Merchant Cash Advances

Get up to $400,000 in funding. Duration is anticipated to be 3 to 18 months. Pay factor rates as low as 1.15. Automatic remittances are tied to your receivables.

Credibly Recession Funding Review: Advantages

Advantages include a short time in business requirement. A short time to funding is also attractive.

Credibly Recession Funding Review: Disadvantages

One set of disadvantages are that they will want a personal guarantee and they will do a hard pull on your personal credit.

For startup companies and their founders in particular, who are often on some shaky financial ground to begin with, this could prove problematic. For these sorts of companies and business owners, a better choice might be to try crowdfunding or angel investing if either is possible. In that way, a business owner’s personal assets would be safer. And, their personal credit would not be affected.

A Viable Alternative – Building Business Credit

Business credit is credit in a small business’s name. It doesn’t attach to a business owner’s personal credit, not even when the owner is a sole proprietor and the solitary employee of the small business.

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

The Advantages

Because company credit is independent from personal, it helps to secure a small business owner’s personal assets, in the event of court action or business insolvency.

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

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

Personal credit scores depend on payments but also various other components like credit use percentages.

But for business credit, the scores truly merely depend on if a small business pays its bills timely.

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

The Process

Establishing company credit is a process, and it does not occur automatically. A business needs to actively work to establish company credit.

Nevertheless, it can be done readily and quickly, and it is much swifter than developing consumer credit scores.

Vendors are a big component of this process.

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

Company Fundability

A company needs to be fundable to lending institutions and vendors.

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

Additionally, company phone numbers must have a listing on 411.com. Use ListYourself to get a listing.

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

A business will also need a bank account dedicated solely to it, and it must have every one of the licenses essential for operation.

Licenses

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

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

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

Dealing with the IRS

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

A business can get started as a sole proprietor. But they will most likely wish to switch to a type of corporation or an LLC.

This is in order to decrease risk. And it will optimize tax benefits.

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

Sole Proprietors Take Note

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

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

Plus, according to the Internal Revenue Service, using this structure there is a 1 in 7 chance of an IRS audit. There is a 1 in 50 probability for corporations! Prevent confusion and dramatically reduce the odds of an Internal Revenue Service audit simultaneously.

Any DBA should be a stepping stone to incorporating.

Starting Off the Business Credit Reporting Process

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

Once in D&B’s system, search Equifax and Experian’s websites for the small business. You can do this at www.creditsuite.com/reports. If there is a record with them, check it for accuracy and completeness. If there are no records with them, go to the next step in the process.

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

Vendor Credit

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

And with an established business credit profile and score you can begin to get retail and cash credit.

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

But to start with, what is trade credit? These trade lines are credit issuers who will give you starter credit when you have none now. Terms are in most cases Net 30, versus revolving.

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

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Details

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

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

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

Vendor Credit – It Helps

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

You want 3 of these to move onto the next step, which is retail credit.

Retail Credit

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

Only use your SSN and date of birth on these applications for verification purposes. For credit checks and guarantees, use the company’s EIN on these credit applications.

Fleet Credit

Are there more accounts reporting? Then progress to fleet credit. These are companies like BP and Conoco. Use this credit to purchase fuel, and to fix and maintain vehicles. Just use your SSN and date of birth on theCredibly COVID-19 Funding Credit Suitese applications for verification purposes. For credit checks and guarantees, make certain to apply using the company’s EIN.

Cash Credit

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

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

Monitor Your Business Credit

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

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

Update Your Record

Update the data if there are inaccuracies or the information is incomplete. At D&B, you can do this at: https://iupdate.dnb.com/iUpdate/viewiUpdateHome.htm. For Experian, go here: www.experian.com/small-business/business-credit-information.jsp. And for Equifax, go here: www.equifax.com/business/small-business.

Fix Your Business Credit

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

Disputes

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

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

A Word about Building Business Credit

Always use credit responsibly! Don’t borrow more than what you can pay back. Track balances and deadlines for payments. Paying punctually and in full will do more to raise business credit scores than just about anything else.

Establishing business credit pays off. Good business credit scores help a small business get loans. Your credit issuer knows the company can pay its debts. They recognize the company is for real.

The business’s EIN connects to high scores and lenders won’t feel the need to ask for a personal guarantee.

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

Credibly Recession Funding Review: Takeaways

Companies that do best on Credibly will be fairly new players but with relatively meteoric rises.

A business owner asking for a loan should be prepared for a hard pull on his or her personal credit scores, which will impact those scores. This is just like all hard pulls do.

If an entrepreneur does not have the wherewithal to ride out a slightly lower personal credit score for a couple of years, then Credibly is not for them.

And finally, as with every other lending program, whether online or offline, remember to read the fine print and do the math. Go over the details with care. Decide if this option will be good for you and your company.

In addition, consider alternative financing options that go beyond just lending. These include building business credit and unsecured business financing. This is in order to best decide how to get the money you need to help your business grow.

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

 

 

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