The CARES Act and COVID-19: What You Need to Know NOW

There’s a lot going on right now. So let’s look at the CARES Act Fiscal Stimulus Plan. The details are still in flux. Some may change. This information is current as of right now.

Overview of the CARES Act

Here’s an Overview of CARES. CARES stands for Coronavirus Aid, Relief, and Economic Security Act. This bill addresses economic impacts of, and otherwise responds to, the COVID-19 (coronavirus) outbreak. The bill authorizes emergency loans to distressed businesses, including air carriers and suspends certain aviation excise taxes.

With respect to small businesses, the bill establishes, and provides funding for, forgivable bridge loans; and provides additional funding for grants and technical assistance.

More Details of the CARES Act

The bill also provides funding for $1,200 tax rebates to individuals, with additional $500 payments per qualifying child. The rebate begins phasing out when incomes exceed $75,000 (or $150,000 for joint filers). The bill establishes limits on requirements for employers to provide paid leave.

With respect to taxes, the bill establishes special rules for certain tax-favored withdrawals from retirement plans; delays due dates for employer payroll taxes and estimated tax payments for corporations; and revises other provisions, including those related to losses, charitable deductions, and business interest.

The bill also authorizes the Department of the Treasury to temporarily guarantee money-market funds.

See: congress.gov/bill/116th-congress/senate-bill/3548.

Who Can Make CARES Act Loans?

Lenders with delegated authority from SBA. This lets lenders determine eligibility and creditworthiness. They can do so without going through SBA channels.

How Will Banks Evaluate Borrower Eligibility for CARES Act Funding?

The lender must consider if the borrower was in operation on February 15, 2020; and had employees for whom the borrower paid salaries and payroll taxes OR paid independent contractors, as reported on a Form 1099-MISC. The application period is February 15, 2020 to June 30, 2020.

Business Size Requirements

So any small business, non-profit, veterans’ organization, sole proprietorship or independent contractor, eligible self-employed individuals, or tribal small business concern is eligible for a loan if they employ no more than the greater of 500 employees; or if applicable, the SBA size standard for employees in the industry where the borrower operates (NAICS code).

Employees include anyone employed on full-time, part-time or other basis. For businesses with more than 1 physical location (like food services), the 500 employees can be measured per physical location.

Maximum Loan Amounts Under the Paycheck Protection Program of the CARES Act

The maximum loan amount under the Paycheck Protection Program is the lesser of 2.5 times the average total monthly payments by applicant for payroll costs incurred during one year before the date of the making of the loan. And add in outstanding amounts of any Emergency Injury Disaster Loan (EIDL) gotten on or after January 31, 2020 to be refinanced under this loan. Or $10,000,000. There are special rules for seasonal employers and businesses not in existence from 2/15/2019 to 6/30/2019.

Payroll Costs

Payroll costs include the sum of payments of any compensation for employees for salary, wage, commission, or similar compensation. They also include payment of cash tip or equivalent, and payment for vacation, parental, family, medical or sick leave. And they include allowance for dismissal or separation, and payment for the provision of group health care benefits, including insurance premiums. Plus they include payment of any retirement benefits, or payment of state or local tax assessed on the compensation of employees.

The sum of such payments cannot be more than $100,000 in 1 year, as prorated for February 15, 2020 to June 30, 2020.

Payroll costs do not include compensation of an individual employee’s in excess of an annual salary of $100,000 prorated from February 15, 2020 to June 30, 2020. And they do not include taxes imposed or withheld under FICA (Social Security and Medicare), Railroad Retirement Act, and IRC Chapter 24 (income tax at source).

Also, they don’t include any compensation of an employee whose principal place of residence is outside the US; and qualified sick leave or family leave wages where a credit is allowed under the Families First Coronavirus Response Act.

Want to review your options with one of our consultants? Give us a call at 877-600-2487.

What Can CARES Act Loans Be Used For?

Loans can be used for payroll costs and costs related to the continuation of group health care benefits during periods of paid sick, medical, or family leave, and insurance premiums. They can also be used for employee salaries, commission, or similar compensations.

You can use a loan for payments of interest on any mortgage obligation (excludes prepayment) or rent (including rent under a lease agreement). And you can use it on utilities and interest on any other debt obligation that was incurred before the period.

Good Faith Certification Requirements

So here are the Good Faith Certification Requirements.

An eligible recipient applying for a covered loan must make a good faith certification that: the uncertainty of current economic conditions makes necessary the loan request to support ongoing operations. They acknowledge that funds will be used to retain workers and maintain payroll or make mortgage payments, lease payments, and utility payments

And they certify that the eligible recipient does not have an application pending for a loan under this subsection for the same purpose and duplicative of amounts applied for or received under a covered loan.

Plus they certify that, from February 15, 2020 to December 31, 2020, the eligible recipient has not received duplicate amounts for the same purpose received under a covered loan.

Requirements and Fees

So here are the details on requirements and fees.

The SBA has no recourse against any individual shareholder, member, or partner of an eligible recipient of a covered loan for nonpayment of any covered loan unless it is used for a purpose not authorized.

From February 15, 2020 to June 30, 2020, no personal guarantee is required for the covered loan. And no collateral is required for the cover loan. Also, from February 15, 2020 to June 30, 2020, the SBA will not collect a fee.

Deferral of Payment

So here are the Deferral of Payment details.

From February 15, 2020 to June 30, 2020, there is complete payment deferment relief for impacted borrowers with a loan with terms of 6 months to 1 year. This includes payment of principal, interest, and fees. An impacted borrower is one in operation on February 15, 2020 with an application for covered loan that is approved or pending after the enactment date.

What is Covered for the Sum Paid for 8 Weeks from Loan Origination Date

So here is what is covered for the sum paid for eight weeks from the loan origination date.

Coverage includes payroll costs, and any payment of interest on any covered obligation. It also includes any indebtedness or debt instrument incurred in the ordinary course of business as a mortgage on real or personal property incurred before 2/15/2020.

And it includes any payment of rent made under a leasing agreement in force before 2/15/2020. Plus it includes any utility payment for electricity, gas, water, transportation, phone or internet access where service began before 2/15/2020.

Want to review your options with one of our consultants? Give us a call at 877-600-2487.

Documents a Borrower Must Provide

So here are the documents a borrower must provide. Provide verification of the number of full time equivalent employees on payroll and pay rates including payroll tax filings reported to the IRS and state income, payroll, and unemployment insurance filings.

Add cancelled checks, payment receipts, transcripts of accounts, and any other documents verifying payments on covered mortgages, leases, and utility payments.

And add certification from an authorized representative of the eligible recipient that the documentation presented is true and correct. Plus a certification that the amount for which forgiveness is requested was used to retain employees, make interest payments on a covered mortgage or rent obligation, or to make covered utility payments. Provide any other documentation the SBA determines is necessary. No eligible recipient shall receive forgiveness without submitting the documentation required.

CARES Act Loan Forgiveness Details

So here are the loan forgiveness details. The lender will decide on the application no later than 60 days from receiving the application. Any amount which would be includible in gross income of the eligible recipient by reason of forgiveness is excluded from gross income.

Reduction of Loan Forgiveness

There can be a reduction of loan forgiveness. A reduction can happen if there is a reduction in full time equivalent employees. So this is when comparing to the average number of FTEs per month employed by the recipient from February 15, 2019 to June 30, 2019 or January 1, 2020 to February 29, 2020.

Reductions also happen for over 25% in certain reductions in total salary or wages of any employees. These are employees who in 2019 did not receive a wage or salary at an annualized rate more than $100,000. There are special rules for tipped workers and rehires during a certain time period.

Economic Injury Disaster Loans: Which Kinds of Businesses are Eligible under the CARES Act?

SBA’s Economic Injury Disaster Loans (or working capital loans) are available to small businesses; small agricultural cooperatives; small aquaculture businesses and most private non-profit organizations.

Available businesses include businesses directly affected by the disaster. And they include businesses that offer services directly related to the businesses in the declaration. They also include other businesses indirectly related to the industry that are likely to be harmed by losses in their community.

Criteria for Loan Approval

So here are the criteria for loan approval. Applicants must have a credit history acceptable to SBA. The SBA must determine that the applicant business can repay the SBA loan. And an applicant business must be physically located in a declared county. And it must be suffering working capital losses due to the declared disaster. So this cannot be due to a downturn in the economy or other reasons.

Amounts You Can Borrow

So check out how much you can borrow. Eligible entities may qualify for loans up to $2 million. The interest rates for this disaster are 3.75% for small businesses and 2.75% for nonprofit organizations. So terms go up to 30 years. Eligibility is based on business size, type of business and its financial resources.

The SBA defines what a small business is, at sba.gov/document/support–table-size-standards.

How Can a Business Use the Loan Funds?

A business can pay fixed debts, payroll, accounts payable, and other bills that could have been paid had the disaster not occurred. But there is no intent for the loans to replace lost sales or profits or for expansion.

Want to review your options with one of our consultants? Give us a call at 877-600-2487.

Collateral Requirements

So check out the Collateral requirements. Economic Injury Disaster Loans over $25,000 will need collateral. SBA takes real estate (commercial and residential) as collateral when available. The SBA will not decline a loan for lack of collateral. But they require borrowers to pledge what is available.

Ineligible Entities Under the CARES Act

These are the ineligible entities under the act.

Agricultural Enterprises: if the primary activity of the business (including affiliates) is as defined in Section 18(b)(1) of the Small Business Act. Also ineligible are religious and charitable organizations. Plus gambling concerns if they derive more than one-third of their annual gross revenue from legal gambling activities. And casinos and racetracks, because these are businesses whose sole purpose for being is gambling. Plus real estate developers mainly subdividing real property into lots and developing it for resale on their own account.

SBA Economic Injury Disaster Loan Funds

So here are the details on the SBA’s Economic Injury Disaster Loan (EIDLs) Funds. Funds come straight from the United States Treasury. Applicants do not go through a bank to apply. They apply directly to the SBA’s Disaster Assistance Program. So you can visit disasterloan.sba.gov/ela.

There is no cost to apply. And there is no obligation to take the loan if offered. The maximum unsecured loan amount is $25,000. Applicants can have an existing SBA Disaster Loan and still qualify for an EIDL for this disaster. But you cannot consolidate the loans.

You can apply online. Applicants may apply online using the Electronic Loan Application (ELA). Visit disasterloan.sba.gov/ela. you can download paper loan applications at sba.gov/disaster.

Mail completed applications to:

US Small Business Administration
Processing and Disbursement Center
14925 Kingsport Road
Fort Worth, TX 76155

Get Disaster Loan Information and Application Forms

To get disaster loan information and application forms, call the SBA’s Customer Service Center at 800-659-2955 (800-877-8339 TTY). Or email disastercustomerservice@sba.gov.

Get assistance from SBA partners. So you can get free help with reconstructing financial records, preparing financial statements, and submitting the loan application as follows. Small Business Development Centers (SBDCs); SCORE; and Women’s Business Centers (WBC). For the nearest office: visit sba.gov/local-assistance.

Takeaways

Keep in mind, the CARES Act is still a bit in flux. But the details are probably not going to change much. The gist of it is to help small businesses during 2020. Most of the deadlines are in June, so apply NOW. Contact us today to learn more about the CARES Act and COVID-19: what you need to know.

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Young Person Need To Seek Wealth Literacy, Not Financial Literacy

Today there is much talk concerning just how young grownups are monetarily uneducated as if economic proficiency were appropriate to develop wide range. Millions of individuals have actually reviewed one of the ideal economic proficiency publications out there “Rich Dad, Poor Dad” yet there is a loss of translation someplace in between the audio concepts of economic proficiency and also their energy in structure riches.

( 1 )How to Leverage Money
( 2 )The Four Pillars of Wealth
( 3 )How to Invest Money
( 4 )Gold as well as Precious Metals
( 5 )How to Leverage Time
( 6 )Debunking Widespread Investment Myths; as well as
( 7 )Networking.

There would certainly be a number of much more lessons that I would certainly supply hereafter standard educational program was finished, consisting of:.

( 1 )The Connection Between Politics as well as Investing; as well as.
( 2 )Leveraging Technology to Build Wealth.

With an ample structure of expertise in all these programs, a young grownup would certainly be prepared to develop wide range without so much test as well as mistake, battle, or straight-out failing. If you assume regarding it, also at the Master degree, none of these typical company or monetary proficiency programs will actually show any type of pupil exactly how to construct wide range.

Numerous studies that I have actually come across that evaluate the monetary proficiency of young people are improperly structured due to the fact that they concentrate excessive on typical ideas such as supplies, choices, realty, and so forth versus approving an evaluation on whether young people are experienced concerning any type of principles essential to construct wide range. Being “economically” literate versus being “riches” literate are 2 totally various principles. I think that can be economically literate while not being wide range literate.

The distinction in between economic proficiency training courses as well as riches proficiency programs is this. Financial proficiency programs educate young grownups what they require to do to construct wide range however gives them none of the devices they will really require to effectively develop riches.

If one was a basketball gamer, the equivalent degree of a monetary proficiency training course would certainly be to inform a power onward that he requires a great selection of post-up actions close to the basket, a pleasant outdoors shot to make challengers appreciate his variety, a fast initial action to produce off the dribble as well as a strong protective video game so that challengers can not manipulate him for being a one-dimensional gamer. After informing the power ahead that, there would certainly be no additional description however a dream of “excellent luck” as well as a rub on the back. A riches proficiency training course would in fact educate the professional athlete particularly what he would certainly require to do to attain success in each location of his video game that would certainly make him a premier professional athlete.

Informing young people what they require to do will certainly have little effect on enhancing their lifestyle or making an effective change from young people right into economically independent grownups. Supplying a toolkit for just how to do so is much more vital. To this end, looking for training courses that show wide range proficiency as opposed to monetary proficiency to young people is far more crucial.

Millions of individuals have actually reviewed one of the finest monetary proficiency publications out there “Rich Dad, Poor Dad” yet there is a loss of translation someplace in between the audio concepts of monetary proficiency as well as their energy in structure wide range. Numerous studies that I have actually stumbled throughout that evaluate the economic proficiency of young grownups are improperly structured due to the fact that they concentrate as well much on standard principles such as supplies, choices, actual estate, and also so on versus approving an evaluation on whether young grownups are educated concerning any kind of ideas required to develop wide range. The distinction in between economic proficiency training courses and also riches proficiency programs is this. Financial proficiency programs instruct young grownups what they require to do to construct riches yet gives them none of the devices they will really require to efficiently construct riches. To this end, looking for programs that educate riches proficiency rather of monetary proficiency to young grownups is a lot a lot more vital.

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Business Banking Account: Why You Need One and How to Get One

There may be some things you do not understand about business banking. For example, a lot of businesses start out thinking they can just run their personal and business transactions through the same accounts. It often works well and is easier for small businesses just beginning. However, they soon realize that they need a business banking account, for several reasons.

3 Reasons Why Having a Business Banking Account Is Non-Negotiable; And 4 Options to Kick Off Your Search for the Best One

What are these reasons? Why does it matter if your business has a separate account or not? Here are 3 reasons why you need a business banking account.

Get our business credit building checklist and build business credit the fast and easy way.

Reason 1 Why You Need a Business Banking Account: Separation

For many reasons, your business needs to be an entity all its own. The more it is separated from the personal finances of the owner, the better. The two main reasons this is necessary include:

Tax purposes

To file your business taxes, you are going to have to separate business and personal expenses. If you have a dedicated business banking account, this is immensely easier. Otherwise, you have to pull out the shoebox full of receipts, and that can get cumbersome. Sure, there are easier ways to do it than shoebox filing, but none of them are easier than simply keeping business expenses separated in their own account to begin with.

Business Credit

You also need your business and personal finances separated for business credit purposes. The more connected your business transactions are to you personally, the more likely they are to show up on your personal credit report rather than your business credit report.

In addition to a business bank account, the following things are needed to ensure proper separation for business credit building.

Separate Contact Information

Make sure your business has its own phone number, fax number, and address. Of course, that doesn’t mean you have to get a separate phone line, or even a separate location. You can still run your business from your home or on your computer if you want. You don’t even have to have a fax machine.

In fact, you can get a business phone number and fax number pretty easily that will work over the internet instead of phone lines. In addition, the phone number will forward to any phone you want it too so you can simply use your personal cell phone or landline if you want. Whenever someone calls your business number it will ring straight to you.

More About Separate Contact Information

Faxes can be sent to an online fax service, if anyone ever happens to actually fax you. This part may seem outdated, but it does help your business appear legitimate to lenders.

You can use a virtual office for a business address. How do you get a virtual office? What is that? It’s not what you may think. This is a business that offers a physical address for a fee, and sometimes they even offer mail service and live receptionist services. In addition, there are some that offer meeting spaces for those times you may need to meet a client or customer in person.

EIN

You need to get an EIN for your business. This is an identifying number for your business that works in a way similar to how your SSN works for you personally. Some business owners use their SSN for their business. However, not only does it look unprofessional, but it allows your business and personal transactions to get all mixed up because they are all attached to the same identifying number. To get the separation you need, an EIN is necessary. You can get one for free from the IRS.

Incorporate

Incorporating your business as an LLC, S-corp, or corporation is necessary for establishing a business as a separate entity from the owner. It also lends credence to the legitimacy of your business. As an added bonus, it comes with some protection from liability.

Which option you choose does not matter as much for fundability as it does for your budget and needs for liability protection. The best thing to do is talk to your attorney or a tax professional. What is going to happen is that you are going to lose the time in business that you have. When you incorporate, you become a new entity. You basically have to start over. You’ll also lose any positive payment history you may have accumulated as well.

This is why you have to incorporate as soon as possible. Not only is it necessary for separation, but it affects your time in business. The longer you have been in business the more fundable you appear to be. That starts on the date of incorporation, regardless of when you actually started doing business.

Get our business credit building checklist and build business credit the fast and easy way.

Reason 2 Why You Need a Business Banking Account: Merchant Account

Okay, so having a business bank account aids in separating your business from yourself for business credit building, along with all the other factors mentioned above. While that is most definitely a big deal, it for sure isn’t the only reason you need one. Here’s another reason, and it’s a biggie.

If you do not have a business bank account, you can’t get a merchant account. Without a merchant account, you can’t accept credit card payments. Studies show that customers spend more when they can use a credit card. This makes sense when you think about it, because online sales are made mostly by credit cards. Accepting credit card payments captures impulse sales as well.

When you look at it this way, not having a business banking account, and thus being able to take credit card payments, can severely impact sales in a negative way.

Reason 3 Why You Need a Business Banking Account: More Funding Options

The third reason you need a business bank account is that is opens the door to more funding options. First, it increases fundability. This alone increases the funding options available to you, indirectly. However, there are some lenders and credit card companies that require a business banking account specifically in their requirements for approval.

For example, if you are working toward building business credit, you are going to need to work with starter vendors. These are vendors that will offer net 30 terms on accounts without checking your credit. Then they will report those payments to the business credit reporting agencies. This is basically the cornerstone of how to get started with business credit, because you can get credit without already having credit.

However, since they aren’t checking credit scores, they need to reduce risk in other ways. One of those ways for some is looking for a minimum average balance in a business bank account. If you do not have an account at all, it will be much harder to get this type of vendor credit.

Business Banking Account: A Word About Your Bank Score

You bank score is not the same thing as your credit score. It is basically a score assigned to you by your bank. It helps them determine if they should let you open an account. The sad fact is, if you are not able to open a personal account, the chances are high you will not be allowed to open a business bank account. One thing some banks do is check with agencies such as ChexSystems, Early Warning Systems, and Telecheck to see what your report from them says. As ChexSystems is the most common, let’s take a closer look at them. The others work in a similar way.

Per the ChexSystems website, they are, “a nationwide specialty consumer reporting agency under the federal Fair Credit Reporting Act (FCRA). ChexSystems’ clients regularly contribute information on closed checking and savings accounts.”

In addition, they say, “ChexSystems provides services to financial institutions and other types of companies that have a permissible purpose under the FCRA. ChexSystems’ services primarily assist its clients in assessing the risk of opening new accounts.”

Details About ChexSystems

Other things noted about ChexSystems on their site include,

“ChexSystems is not a collection agency.
Also, “ChexSystems will never contact a consumer as part of an effort to collect a debt, and does not make unsolicited calls to consumers.”
And “ChexSystems will never require payment from a consumer in order to investigate the accuracy of consumer reporting information, nor will it ever require payment in order to remove inaccurate consumer reporting information.”

More About ChexSystems

That still leaves a lot of unanswered questions. As mentioned above, some banks will use reports from them to help determine if they should let you open an account. On occasion, lenders will use them to help determine fundability as well. They report on insufficient funds, closed accounts, and overdrafts. If these things are present in large numbers, it could affect your ability to get a bank account. This would affect your fundability.

Most people don’t even know that ChexSystems is a thing. That is of course, until they’re turned down for a loan or cannot open an account. Find out what to do if this happens to you and get out of ChexSystems jail.

Get our business credit building checklist and build business credit the fast and easy way.

Business Banking Account: Best to Start from the Beginning

It stands to reason that it would be easier to open a business banking account from the very beginning. Still, most business owners do not know how important it is. It seems easier at the time to just use an already existing personal account. Then, before they know it, the need a business bank account becomes obvious. At that point, they have a lot of work to do to sort things out.

The hassle of separating business from personal transactions grows as your business does. You have to change any auto drafts. You need to make sure all information is updated with all vendors and on all documents. There are any number of things that have to be done to change over to a new bank account. Furthermore, if it is the middle of the year, you will have to do some major quilt work when it is time to do the taxes. Long story short, the sooner you open your business bank account, the better.

Business Banking Accounts: Best Options to Get Started

Not all business banking accounts are created equal. Some work better for new businesses than others. Also, some have better rewards and incentives than others. Here are a few to look at to get your started, but be sure to take a look around at all the different accounts available.

Chase

The Chase free business checking account has one of the lowest minimum balance requirements available at $1,500. Up to 100 transactions are free each month. In addition, you get unlimited electronic deposits for free. The minimum amount required to open the account is $25, but if you open it with less than the $1,500 minimum balance requirement you will have to pay the $15 monthly fee until you reach the minimum balance.

Bank of America

The minimum balance for the Bank of America free business checking account is a little higher at $3,000. You get up to 200 free transactions per month.

Axos

There is no minimum balance requirement for this free business checking account. The minimum initial deposit requirement for Axos is $1,000. Also, you get up to 200 transactions free per month. As an added bonus, there is unlimited ATM fee reimbursement.

This account operates online only. There are no branches to visit.

Azlo

Another online only free business checking account, Azlo has no minimum opening deposit or minimum balance. There is no ATM fee at BBV or Allpoint ATMs. In addition, there are no paper statement, incoming wire, or stop payment fees.

Having a Business Banking Account is More Important than You May Think

Most business owners do not realize just how important a business bank account is to their business. As you can see, however, it is very important indeed. By having this information upfront, you can be way ahead of the game. Whatever season your business is in, today is the day to open a business bank account. Whether you go with a bank you already have a relationship with, or one of the options above, it’s important to take this step now, rather than later.

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Coronavirus and SBA Business Loans: The Urgent News You Need to Know Now

The world is changing around us, and businesses are more on edge than ever before. Making matters worse is the fact that things are changing by the minute. States are issuing new mandates constantly based on the most recent recommendations. Stores are having trouble keeping necessities in stock because items fly off the shelves as soon as they are put there. Understandably, customers and prospects are getting nervous.

How SBA Business Loans Can Help Your Business Survive and Even Thrive Despite the Coronavirus

As a result, steps are being taken to try and stop, or at least slow, ever sharpening decline of the economy. If you are wondering how to get capital to keep your business running or start a new business, there’s never been a better time. Interest rates area at an all time low. Currently, banks are still lending. That means loans are available at dirt cheap rates, but not for long. Act now to get the best rates on SBA business loans.

Get the funding you need to keep your business running.

SBA Business Loans are Actually a Great Option During this Time

Here’s the thing. The federal government recently poured $50 billion into SBA loan programs for coronavirus relief. They are also waiving upfront fees on loans to veterans up to $1 million when it comes to the SBA Express program.

As for the SBA Disaster relief fund, the SBA can now exercise available authority. They will use funds to provide loans to businesses that are affected by coronavirus. Funds can be used to help overcome disruptions caused by pandemic.

Additionally, the President is asking Congress to increase funding for this program, with an intent to make 30 million small businesses more resilient to the economic impact of the coronavirus. These funds could be used to pay debts that would not be able to be paid otherwise due to the COVID-19 economic impact. Bills such as payroll, accounts payment, and any others could be covered by these funds.

However, you have to act fast. There is a limited window to access money, and the money itself isn’t infinite. Already, lenders are reviewing weekly statements rather than monthly statements. This is because when revenue starts to fall, business owners will lose the ability to get funding.

What Exactly Does the SBA do?

Their mission is to help U.S. small businesses not only survive, but thrive. They offer a broad range of products through their programs. Yet, for the most part, the SBA does not lend money directly. They work through partner financial institutions to guarantee loans. In this way, they are able to leave the administration of the loans and disbursement of funds to those who do it on a regular basis.

How Do SBA Business Loans Work?

SBA business loans are small-business loans guaranteed by the Small Business Administration and issued by participating lenders, mostly banks. They can guarantee up to 85% of loans of $150,000 or less. In addition, loans that are more than $150,000 will guarantee up to 75%. The maximum loan amount they offer is $5 million.

Due to the fact that these are government loans, meaning that they have a government guarantee, financial institutions are able to offer them at lower interest rates than they would be otherwise even before the rate cut.

Who Qualifies for SBA Government Loans?

To be eligible for SBA Government Loans, you must meet certain qualifications. These include:

Your business must be for profit.

Your business must be inside the US.

Business owners must invest equity.

You must have exhausted all other financing options.

Your business must qualify as a small business.

Your business must be in an eligible industry.

Keep in mind these can change given the current situation with the coronavirus.

Get the funding you need to keep your business running.

Repaying SBA Government Loans

One perk of SBA loans is that you get more time to pay them back than you would otherwise. According to the SBA, the terms depend on how you intend to use the funds.

For example, working capital loans, or funds you intend to use for daily operation, have a repayment term of seven years. However, funds for new equipment purchase have a term of 10 years. On the other hand, real estate loan terms extend even longer to 25 years. Of course, the longer the term the lower the interest, which means lower regular payments.

How Does the SBA Loan Guarantee Actually Work?

With little exception, the SBA does not actually provide the funds for the loans they guarantee. The lenders that partner with them provide the funds, but the agency guarantees a portion. Currently, they will guarantee up to $3.75 million.

The SBA guarantee reduces the risk to the bank. As a result, lenders are able to offer better interest rates and terms than they would be able to otherwise. If the borrower defaults on the loan, the Small Business Administration will pay out their guarantee amount.

How to Apply for an SBA Government Loan

One of the downsides to SBA loans is that they have a lengthy and somewhat complicated application process. There is a lot of red tape involved, but understandably so considering it is the federal government and they are guaranteeing a huge chunk of the loan. This may be adjusted somewhat during the coronavirus outbreak.

Gather the Information

The first thing you have to do is gather the information you will need. This includes:

The SBA borrower loan information form

Statement of personal history

Personal financial statement

Personal income tax returns for the previous 3 years

Tax returns for the business for the previous 3 years

Business certificate or license

Business lease

Loan application history

This list along with links to forms and templates is available at SBA.gov. Once you have this information, you can start looking for a lender.

Get the funding you need to keep your business running.

Realize that once you and the lender determine which loan program will work best for your needs, there may be additional paperwork, as each loan has its own set of requirements. This is a general list for beginning the application process for all loans.

To apply for SBA business loans because your business has suffered due to the coronavirus phenomenon, go here first.

Types of SBA Business Loans

In addition to those loan programs already mentioned that are receiving extra funding to help businesses during this time, the other SBA business loans are still available. Due to the rate cut by the Federal Reserve, these should be available at super low rates.

7(a) Loans

This is the Small Business Administration’s flagship loan program. It offers federally funded term loans up to $5 million. The funds can be used for expansion, purchasing equipment, working capital and more. Banks, credit unions, and other specialized institutions in partnership with the SBA process these loans and disburse the funds.

The minimum credit score to qualify is 680, and there is also a required down payment of at least 10% for the purchase of a business, commercial real estate, or equipment. The minimum time in business is 2 years. In the case of startups, business experience equivalent to two years will suffice.

This is by far the most popular loan program the SBA offers. Funds are available for a broad range of projects, from working capital to refinancing debt, and even buying a new business or real estate.

SBA business loans

504 Loans

These SBA business loans are also available up to $5 million. Funds can pay for machinery, facilities, or land. Generally, they are for expansion. Private sector lenders or nonprofits process and disburse the funds. They work especially well for commercial real estate purchases.

Terms for 504 Loans range from 10 to 20 years, and funding can take from 30 to 90 days. They require a minimum credit score of 680. The asset that is being financed has to be used as collateral. There is also a down payment requirement of 10%, which can increase to 15% for a new business.

Furthermore, to qualify you be in business at least 2 years, or management must have equivalent experience if the business is a startup.

Microloans

Microloans are SBA business loans available in amounts up to $50,000. They work for starting a business, purchasing equipment, buying inventory, or for working capital. Community based non-profits administer microloan programs as intermediaries, with financing coming directly from the Small Business Administration.

Interest rates on these loans are 7.75% to 8% above the lender’s cost to fund. Terms go up to 6 years. They can take upwards of 90 days to fund. The minimum credit score is 640, and the collateral and down payment requirements vary by lender.

SBA Express Loans

These SBA business loans max out at $350,000. They have a maximum interest rate of 11.50%. Also, terms range from 5 to 25 years, and the SBA guarantee is less than with their other loan programs at 50%. To qualify, your credit score must be above 680, and you must have a debt to service ratio of 1.1 or higher. If the loan is greater than $25,000, collateral may be necessary depending on the lender.

The turnaround for express loans is much faster. In fact, the SBA takes 36 hours or less to give a decision. Necessary paperwork for application is less also. Consequently, express loans are a great option for working capital, among other things, if you qualify.

SBA CAPLine

There are 4 distinct CAPLine programs that differ mostly in the expenses they can fund. Each of them carries a maximum amount of $5 million and an interest rate that ranges from 7% to 10%. Funding can take 45 to 90 days.

The four different programs are:

Seasonal CAPLines -Financing for businesses preparing for a seasonal increase in sales.

Contract CAPLines -Financing for businesses that need funding to fill a contract.

Builder’s CAPLines -Financing for businesses taking on a real estate or construction project.

Working capital CAPLines -Financing for businesses that are struggling with a short-term slump in sales.

Credit score must be at least 680 to qualify. There is no minimum time in business requirement unless you are getting a seasonal CAPLine. That one carries a one year business requirement.

SBA Community Advantage Loans

This program is a pilot set to either expire or extend in 2020. Its purpose is to promote economic growth in underserved areas and markets. Credit decision makers overlook factors such as poor credit or low revenue if the business has the potential to stimulate the economy or create jobs in underserved areas.

Loan amounts range from $50,000 to $250,000 with a maximum interest rate of 11%, while terms range up to 25 years.

Other Programs

In addition to these loan programs, the SBA offers additional programs for certain groups. These include:

Veterans Advantage- General-use business loans with no guarantee fee for majority veteran-owned small businesses.

International Trade- General-use financing for businesses actively involved in international trade or hurt by competition from imports.

Export Working Capital Program- Short-term working capital for exporters backed by invoices or other business assets.

These are Scary Times, but SBA Business Loans are Here to Help

There’s no doubt about it. These are unchartered waters. No one knows what’s going to happen. All we can do is act on what we do know right now. Still, when it comes to applying for loans, you have to act fast before more changes happen and the window disappears. For now, it is the perfect time to get SBA business loans.

They can help your business not only survive, but even thrive in these troubled economic times. However, there is limited time and limited funds available. Run, don’t walk. Even if you aren’t feeling the effects of the coronavirus on your business now, you likely will soon.

Furthermore, if you don’t foresee a need for extra funds, you can still apply and take advantage of lower rates. You may end up needing money and not be able to get it. If you don’t, you can always pay it back without ever using it. No harm no foul is a good rule of thumb here. Better yet, you can use the funds to pivot and adapt your business to the changing economic scene and actually end up seeing more success.

The post Coronavirus and SBA Business Loans: The Urgent News You Need to Know Now appeared first on Credit Suite.

Coronavirus Business Impact: What You Need to Know Now

Here’s what we all know. There is definitely a coronavirus business impact. The market is scary right now. You are probably thinking now is not the time to make any big financial decisions about your business. However, the truth might surprise you.

You Need to Know the Facts About the Coronavirus Business Impact

Here are the facts. The federal government does not want to see a collapse of the economy any more than we do. They want to do what they can to help small businesses, and they are taking steps to do just that. State governments are in the same boat, wanting to ensure their states are able to survive and thrive economically despite the coronavirus business impact. What steps are being taken, and what do they mean for your fundability?

Coronavirus Business Impact: The Bad News

Here’s the bad news, as if you didn’t already know. Businesses are closing. People aren’t going out anyway. Spending is vastly curtailed. Without a steady flow of income, eventually businesses will not be able to make payments on existing debt.

Of course, some businesses may be able to make current payments for a few months. However, access to new credit will likely not be around for long, at least when it comes to traditional banks.

The good news in light of all of this darkness is that no one wants this to happen. That means measures are being taken to try and stop the spiral. The most notable is the rate cut by the Federal Reserve. The most recent cut brought the rate down to 0%.

Get funding for your business.

Coronavirus Business Impact: What Does This Mean for Your Fundability?

First, it helps to know exactly what fundability is. Basically, it is the ability of your business to get funding. Can you get approval for financing? Is your business eligible for a loan, a line of credit, or a credit card? It all depends on your fundability.

The cut rates and other measures do not truly affect the fundability of your business as so much plays into that. However, if you are eligible for any financing at all, it will most definitely allow you to get lower interest rates. Even if your credit score is low, meaning your rate is higher, it would be lower right now than it would have been even last week.

Coronavirus Business Impact: Is Now the Time to Start A New Business?

Because of that, along with the unique market now presented, now may very well be the time to jump on starting or growing your business rather than holding back. As already mentioned, any financing is going to cost much less right now.

However, you also have a never before seen opportunity, one we never saw coming, to create a business that works well in a market we’ve not seen in modern times. With the rise of social distancing comes a host of other needs. We are already well set with grocery delivery and food delivery services, but the possibilities are literally endless. Many of these opportunities could easily continue to be useful and profitable long after the crisis has passed. The best part is you could help people right now.

Maybe you have always dreamed of starting a mobile dog grooming business. Want to open a salon? Maybe take your equipment into homes and do your thing, with the opportunity for clients to see you sanitize and suit up before you enter their home.

If you have an innovative, useful idea that could continue to work after this is all over, now is the time to jump.

Coronavirus Business Impact: What about Current Businesses?

If you currently own a business, you have to act fast. Retail stores, restaurants, entertainment facilities and more are being asked to shut down each day. If you act now, before this happens to you, you can get funding that can help you get through this time with a better interest rate than has been available in a long time.

Another option is to take the funding and find a way to adapt your business to the times. Maybe offer delivery or curbside options if you don’t already. Been thinking about going online? Now’s the time to launch. Again, you must act fast to take advantage of lower interest rates.

Coronavirus Business Impact: Resources Available to Help Businesses Negatively Impacted

The federal government is working on a number of options to help businesses during this time. One idea is a cut in the payroll tax. Currently, SBA loans are getting an increase from the relief fund for COVID-19. $50 billion is going in as relief in March of 2020. Also, the SBA is also waiving upfront costs on financing to veterans, up to $1 million, in the SBA Express program.

SBA Disaster Relief

The SBA is currently permitted to exercise readily available authority. They will supply funding to businesses affected by the coronavirus to help overcome disruptions. The president is asking Congress to raise financing for this program. The intent is to make 30 million small businesses more resilient to coronavirus-related economic disruptions.

Here is what you need to know about the process for accessing these funds according to SBA.gov.

When they get a request from a Governor, the SBA will issue an Economic Injury Disaster Loan Injury Declaration.

This declaration makes loans available to small businesses to help relieve the economic injury due to Coronavirus.

The Office of Disaster Assistance will work with the Governor to submit the request for assistance.

Allowable uses of these funds include:

- Pay current debts
- Payroll
- Accounts payable
- Pay other bills that the business will not be able to pay to the coronavirus business impact

The credit rate is 3.75%, or 2.75% for non-profits

Businesses with credit available elsewhere are not eligible.

In order to keep payments affordable, terms go up to 30 years. Determination on individual loan terms will be made on a case-by-case basis. The borrower’s ability to repay will play a role in this decision

The Economic Injury Disaster Loans are just a part of the big picture of the federal government’s plan for relief.

Get funding for your business.

Some State Governments are Offering Assistance as Well

Some state governments have stepped up also. In New York, businesses with up to 100 employees that can show a drop in sales of 25% or more may be able to get a loan of up to $75,000 interest free. In addition, businesses that have fewer than five employees may be eligible for cash grants. These can go up to 40% of payroll costs for a couple of months, so that would average to about $6,000.

In Washington State, they are working on favorable credit terms for businesses that have cash-flow problems. In addition, there is a debt and late penalty forgiveness program in the works, as well as deferred bills, waived fees, and no-interest loans.

Colorado, Florida, and other states are beginning to roll out their own unique aids to help both individuals and businesses impacted by this crisis.

Coronavirus Business Impact: Into the Future

There is no doubt this is a huge beast, and the landscape is very muddy. Eventually it will dry out and the beast will be gone. When it is, there is likely to be a nicely preserved footprint left behind. What might the new business landscape look like? Will companies embrace telecommuting like never before? On the flip side, will employees begin to push for it more? Will we see an even greater rise in home services, or delivery, because consumers who were previously wary of them now have to give it a try. Will there be more homeschoolers than ever before because some who were not sure before now see they like it?

Imagine the business opportunities. You could find yourself on the leading edge. However, to get the funding at the best rates available in a long, long time, you have to act now.

Coronavirus Business Impact: Where to Go to Take Advantage of Lower Rates

Other than the SBA, another option is to take a look at what is happening with private lenders. While their rates are typically higher than those of traditional lenders, the Fed’s cut shouldl make even private lender rates lower than normal.

They are likely less affected by current events. We have some favorites which can be a good fit for this unique economic climate. Some can even work with low annual revenues or lower credit scores.

Online Lending Institution OnDeck

Apply online with OnDeck and get a decision as soon as processing is over. If you get approval, loan funds will go to the bank account you select. Financing can be fast. Entrepreneurs can use such a loan to establish their company’s credit history by making prompt payments. They have fixed rates. $5,000- $500,000 is available.

With OnDeck, you will need to have a 500 or better personal credit score for a minimum of one owner. There is also a 1 or more years in business requirement, in addition to $100,000 or better gross yearly earnings. You cannot have a bankruptcy in the last 2 years, or any unresolved liens or judgements.

Online Lender StreetShares

StreetShares is a loan provider offering term loans, credit lines, and specialized veteran company bonds. In addition, small business loans and investing alternatives are available. Most recently, they offer contract financing, which is similar to invoice factoring. Pre Approval takes just a few minutes and does not hurt individual credit. Loans are available ranging from $2,000- 100,000.

You need to have one year or more in business and $25,000 or better in yearly income. Often, StreetShares will make exceptions for high-earning businesses at least 6 months old. You need to have a 620 or better individual credit rating, be a United States citizen, and have reasonable credit. If you do not have reasonable credit, you need a guarantor that does.

Online Lender LoanBuilder

A PayPal service since November 2017, LoanBuilder concentrates on short-term lending to midsize businesses. They provide term loans. You might have the ability to get a loan by the next business day. They have customizable loans without an origination fee.

Loans range from $ 5,000- $500,000. Requirements include a 550 or better personal credit score, $42,000 or more in annual profits, as well as 9 months or more in business.

Online Lender BlueVine

Get quick money with BlueVine. They offer invoice factoring as well as lines of credit. BlueVine can process financing in just a day. Loan amounts from $5,000 to 100,000 are available. Lines of credit are not available in all states. Requirements are 6 or more months in business as well as $100,000 or more in yearly income. Plus, you need to have a 600 or better personal credit rating.

Get funding for your business.

Online Lender Credibly

Credibly is a direct loan provider that specializes in unsecured business funding. Can take just a day or two from application to financing. Funding can cover overhead or day-to-day operations. Loans are available from $5,000- $250,000. Your personal credit does not need to be super-high.

Credibly requires a 500 or better individual credit score, 6 or more months in service, and $15,000 or higher in average monthly deposits. In addition, you must have at least $10,000 in monthly deposits.

Coronavirus Business Impact: Act Now

There is a small window of time to access cash, and it is open right now. You cannot wait. Even if you do not currently see a need, you need to take action. Take a look around and see what your options are for financing. You don’t have to spend it, but you need to get it so you will have it. The chances are highly likely that you will end up needing funds at some point during this crisis, but you cannot wait until you do.

By finding funding now, you can prepare yourself at the best rates possible. Not only that, but you reduce the chance of needing funding in the future and not being able to access it. Don’t wait until it’s too late.

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Do You Feel Lucky? Everything You Need to Know About Crowdfunding for Business

Crowdfunding for business startup is just one of many options. For some, crowdfunding is a foreign concept. In contrast, others know just what is happening. If you are looking to start a business with minimal debt, crowdfunding could be the answer. If you’re lucky.

Is Crowdfunding for Business Startup the Best Option or Is it the Luck of the Draw?

Still, it may not be the answer at all. First, it isn’t cost free, though it does have minimal costs compared to some other options. Truly, the main costs associated with crowdfunding for business are related to marketing your campaign in order to attract investors. Yet, other costs include any fees charged by the crowdfunding platform.

If you are lucky enough to meet your goal, you are golden. Just imagine, all you have to do is live up to your campaign promises and you have no debt related to those funds. However, if you do not meet your funding needs on the campaign alone, you are out those marketing costs and you still have to find additional funds. It’s a fine line to balance.

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What is Crowdfunding?

The truth is, with crowdfunding for business, there is no need to limit yourself to just one or two large investors. You can find a lot of investors to fund your business a few bucks at the time. In fact, some even kick in as little as $5.

Crowdfunding is a good starting point for a new business. Still, it shouldn’t be relied upon completely. Truly, you need a backup plan. Unfortunately, only a small percentage of crowdfunding campaigns are successful. Furthermore, consider how the economy is doing before you rely too heavily on crowdfunding. If the economy isn’t strong, people will not be as likely to invest.

Crowdfunding Platforms

There are many crowdfunding platforms, but they aren’t all exactly the same. You have to check them each out and figure out which one will work best for your business. We’ll start with the two most popular options.

Kickckstarter

They are the largest crowdfunding for business platform. With over 14 million backers, they boast over 130,000 funded projects. These include products and services related to:

Publishing
The arts and film
Comics and illustration
Design and tech

With Kickstarter, you must have a prototype. In addition, projects cannot be for charity. However, nonprofits can use Kickstarter. Also, you are not allowed to offer equity in a company as a perk.

Other banned projects and perks include anything to do with:

Contests and raffles
Cures and medicines
Credit services
Live animals
Alcohol
Weapons

Creators collect a 5% fee on all funds. They also use a payment processor, Stripe, that applies payment processing fees (roughly 3-5%). Unsuccessful campaigns do not pay a fee. There are also fees of 3% + $0.20 per pledge. Pledges under $10 have to pay a discounted micro pledge fee of 5% + $0.05 per pledge.

Indiegogo

Indiegogo has over 9 million investors. The minimum goal they allow campaigns is $500. They charge 5% platform fees and 3% + 30¢ third-party credit card fees. It is important to note that fees are deducted from the amount raised, not the goal. As a result, if you raise more than your goal, you will pay more in fees. PayPal is not accepted.

Indiegogo is noteworthy because they offer flexible financing in addition to fixed financing options. So, if you do not make your goal and you chose flexible funding, you can at least hold onto what you collected. This is the opposite of how crowdfunding normally works.

You cannot change your fundraising structure from fixed to flexible, or vice versa, once the campaign starts. They recommend fixed funding if you need a minimum amount for your project. Indiegogo recommends regular communications to donors if you choose fixed funding.

RocketHub

RocketHub is better suited for those who need venture capital. They give you an ELEQUITY Funding Room. There, you can pitch your idea and see if it stimulates any interest from donors.

This platform is specifically for business owners working on projects related to:

Art
Business
Science
Social

If you achieve your fundraising goal, you will pay a fee of 4%. In addition, you’ll pay a 4% credit card handling fee. But if you do not reach your goal, then that fee jumps up to 8% plus the credit card handling fee. That means RocketHub is best for companies that

are more confident they will make their goals.

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CircleUp

CircleUp aims to help emerging brands and companies raise capital for growth projects. However, companies must apply and show revenue of at least $1 million to get a listing on the site. That said, the platform will sometimes make exceptions.

CircleUp can be good for those who already have a somewhat established business. That includes business owners who want both funding and guidance in order to take their businesses to the next level.

If your business gets approval for listing on CircleUp, the fee percentage comes from the total amount you raise.

GoGetFunding

GoGetFunding has been around since 2011. They let fundraisers keep the money they raise, regardless of whether they meet their target. If your business idea is unproven and you are unsure of whether you can meet your funding needs with a crowdfunding for business campaign, flexible funding can be a great option.

They charge a 6.9% fee. This is pretty high, but it includes both the platform fee and the payment processing fee. Therefore, it is actually more cost-effective than many other crowdfunding for business options.

Crowdfunder

With Crowdfunder, investors purchase equity in promising companies. They consider campaigns to be deals, and its donors are investors. Basic listings are $449/month. Self-start listings are $499/month. Self-start plus is $999/month. In their community, there are over 15,000 investors and 200,000 startups.

Fundable

This is a crowdfunding for business platform that allows companies raise funds from investors, customers, and friends. They have over $80 million in funding commitments.

Fundable does allow equity campaigns. Also, they charge $179 per month to raise funds. Fees on rewards are: 3.5% + 30¢ per transaction. They do not charge success fees.

Fundly

Fundly allows for crowdfunding for creative ventures. If your business has a creative lean, this might work for you.

There is no minimum amount to fundraise or to keep money you raise. You can usually withdraw payments within 24 – 48 hours of the donation. In addition, they offer automatic transfers. It is free to create and share an online fundraising campaign.

Yet, Fundly will deduct a 4.9% fee from each donation you get. A credit card processing fee of 3% is also taken out from each donation. Also, there are nonspecific automatic discounts for larger campaigns.

Successful Crowdfunding Campaigns

A lot of times crowdfunding for business is not successful. There are some campaigns that find their proverbial gold at the end of the rainbow however. Consider these examples.

Pebble SmartWatch

They actually have more than one of the top 10 campaigns ever on Kickstarter. Their 2nd campaign is one of the highest funded ever. It hit over $20,000,000. That’s not too bad considering their goal of only $500,000.

They eventually sold to FitBit.

FlowHive

The FlowHive Indiegogo campaign caused quite a buzz. The idea was to find a way to get the honey from bees without causing the bees harm.

Traditionally, they just break open the hives to get honey. However, this process can kill the bees. FlowHive developed a fake hive. It is made from reusable plastic. Bees make honey in it, and the honey flows out through a spout. The bees are safe and fresh honey is readily available.

It seems beekeeping is growing in interest. This campaign raised $14,000,000. Though they won’t let on as to what the exact numbers are, those in charge say they are still turning a profit.

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CoolestCooler

The coolest cooler was a super cool Kickstarter campaign that brought in over $13,000,000. The cooler had bluetooth and a blender among other things. Investors got one for their donation toward the cause.

This campaign did run into some trouble when it wasn’t able to deliver rewards as quickly as promised. There was actually a lawsuit. In the end, everything worked out and everyone got what they were promised.

The CoolestCooler group says they are glad to put that behind them and get back to work. You can still buy one today.

Kingdom Death Monster 1.5

A lot of people jumped in on this one, to the tune of $12,000,000 on Kickstarter for this surprisingly popular board game. It did take a while to get going, but investors finally got their copy. After production was over, resale values skyrocketed upwards of $1,000 per game. A later campaign promising updated material did just as well.

BauBox Travel Jacket

This jacket boasts 10 different design elements, like a drink holder and a neck pillow. They raised over $11,000,000 across 2 campaigns. While it had a rough start, including the jacket being available on retail sites before investors even got theirs, it is still selling today.

How to Launch a Successful Crowdfunding for Business Campaign

There is no such thing as guaranteed success. Luck truly has an awful lot to do with it. In lieu of catching a leprechaun however, these steps can help make sure you give yourself the best chance possible when it comes to crowdfunding for business.

Do the Research

You have to know your market and what demand looks like. The only way to find that out is to research. Figure out how much money you actually need before you set your goal. Lots of business owners have started crowdfunding campaigns only to find the demand isn’t there or their goal fell short of the actual need.

Create a Prototype

For products, you need to have a sample to show investors. This is important. People are much more likely to let go of money if they can see something tangible. This is so vital that Kickstarter actually mandates that you to have a prototype to show potential investors

Consider Your Platform

Once you know who your target audience is, you can determine if you would be best served by Kickstarter, Indiegogo, or another successful platform that is not as well known. If your audience doesn’t use the platform you are on, it won’t matter how great your idea or product is. They’ll never see it.

Give Awesome Incentives

This is huge. Be sure you can deliver on your promises. Yet, don’t give away the company. Still, if someone one is going to help you get started, they deserve something amazing. Offer more than a thank you note. Be bold with what you offer as a reward for their support, without harming your success.

Set a Goal

Setting attainable goals is necessary to success. Make certain you look at the numbers in relation to actual facts before you set a fundraising goal. Be certain you have production facilities on the line that can meet the timeline goals. Do not randomly set goals with no clue what it will take to reach them.

It’s All in the Marketing

You can’t just willy nilly throw a campaign together. If you create a video, it needs to be professionally edited. Any social media should be specifically targeted toward your audience. If they are a cheesy, audience, then that is how your social media and videos need to be. A more sophisticated audience will need a different feel.

Be Realistic About Crowdfunding for Business

Keep in mind, when it comes to crowdfunding, you need a backup plan. Don’t count on rainbows and leprechauns. Honestly, there are far more unsuccessful campaigns than there are successful ones. In fact, competition is fierce. It’s definitely worth trying, but remember that you are likely going to need other types of funding as well.

Finally, you need to work on building fundability. That is the ability of your business to get funding. Everything from traditional business loans to business credit cards and lines of credit require a business to be fundable for approval. Furthermore, part of being fundable is having great business credit, which also requires a specific process to build. Do not neglect fundability and business credit while your crowdfunding campaign is running. Those funds will only last so long, if you even get enough to get started.

The post Do You Feel Lucky? Everything You Need to Know About Crowdfunding for Business appeared first on Credit Suite.

Everything You Need to Know About Your PAYDEX and Other D&B Reports

PAYDEX is important to your business credit. In fact, the D&B PAYDEX is one of the most common tools used by lenders to determine credit risk. There are a couple of reasons for this. First, Dun & Bradstreet is one of the largest and most commonly used business credit reporting agencies. Next, the PAYDEX score is the most like the personal FICO score, so it is easy for lenders to understand.

The PAYDEX is Important, But It’s Not the Only Thing the Dun & Bradstreet Has on You

Though the PAYDEX is the most commonly used, there are other reports that Dun & Bradstreet issue that can be helpful to lenders. You need to know about all of them, because you never know what all a lender will look at.

Learn more here and start building business credit with your company’s EIN, not your SSN.

The Quick and Dirty on the PAYDEX

The PAYDEX Score is Dun & Bradstreet’s score that tells the lender how well your business has paid the bills over the past year. D & B bases this score on trade experiences documented by vendors. It ranges from 1 to 100. The higher the score, the lower the perceived risk. In business credit terms, it is the most similar to the personal FICO score. This is why it is the most popular business credit option among lenders.

In addition to the PAYDEX, D&B issues the following options for lenders.

PAYDEX and Your Delinquency Predictor

To estimate how likely a company is to be late in paying debts, Dun & Bradstreet uses predictive models. They use predictive scoring, which takes past data to try to predict what will happen in the future. They do this by figuring out the potential risk of a future decision. Then they compare the historical information to a future event. Thus, predictive scoring only represents a statistical probability. It is not a guarantee.

Financial Stress Percentile

The Financial Stress Percentile compares companies in categories such as region, industry, number of employees, or number of years in the business. Financial Stress Score Norms determine an average score and percentile for like firms.

Financial Stress Score

Dun & Bradstreet generates Financial Stress Scores to predict how likely it is a business will fail over the next twelve months. These scores range between from 1,001 to 1,875. A score of 1,001 represents the highest probability while a figure of 1,875 shows the lowest probability of business failure.

Financial Stress Risk Class

This is a rating from D&B that places business in classes from 1 to 5. Class 1 includes businesses least likely to fail, while class 5 includes those firms most likely to fail. Therefore, a D & B customer can rapidly divvy their new and existing accounts by risk and then determine how to proceed. If your business is shown as being Discontinued at This Location; Higher Risk; or Open Bankruptcy, you are going to automatically get a 0 score.

Financial Stress Score Percentile

This score has a 1-100 ranking where a 1 percentile is most likely to fail and a 100 percentile is least likely to fail. If D&B identifies a company as financially stressed, that indicates it has stopped operations following assignment of bankruptcy, voluntarily withdrawn from business operation with unpaid obligations, or closed up shop with a loss to creditors. It could also mean a company is in receivership, reorganization, or has made some sort of an arrangement for the benefit of creditors.

Supplier Evaluation Risk Rating

The Supplier Evaluation Risk Rating (also called a SER Rating) predicts how likely it is a company will get legal relief from creditors or end operations without paying creditors in full over the next twelve months. Once Dun & Bradstreet calculates the Financial Stress Score percentile for your company, they apply a second set of rules to calculate the SER Rating, on a scale of 1 – 9. A 1 means your company is least likely to fail to pay suppliers. A 9 is the opposite, showing the highest likelihood.

Credit Limit Recommendation

A D&B Credit Limit Recommendation includes two recommended guidelines:

A conservative limit, recommending a dollar benchmark if a company’s policy is to extend less credit to minimize risk and
An aggressive limit, suggesting a benchmark if a firm’s policy is to extend more credit with potentially more risk.

D & B bases these dollar guideline levels on a historical evaluation of the credit demand for similar businesses, with respect to employee size and industry. They assess how likely a business is to continue to pay obligations according to the agreed-upon terms, and how likely it is to experience financial stress in the next twelve months.

Learn more here and start building business credit with your company’s EIN, not your SSN.

D & B Rating

A D&B Rating helps lenders assess a business’s size and credit potential. Dun & Bradstreet bases this rating on details in your company’s balance sheet and an overall evaluation of the firm’s creditworthiness. The scale goes from 5A to HH.

Composite Credit Appraisal

This number, between 1 through 4, makes up the second half of your firm’s rating. It reflects Dun & Bradstreet’s overall rating of your business’s creditworthiness. They analyze company payments, financial information, public records, business age, and other factors.

If your company does not supply current financial information, you cannot get a Composite Credit Appraisal rating of better than a 2. The 1R and 2R ratings show company size only based on the total number of employees. Consequently, these ratings are assigned if your company’s file does not contain a current financial statement. Employee Range (ER) Ratings apply to specific lines of business that are hard to put into categories under the D & B Rating system. These kinds of businesses receive an Employee Range symbol based upon the number of employees and that is all.

In general, when Dun & Bradstreet does not have all of the information they need, they will show that in their reports. However, omitted information does not necessarily mean your firm is a poor credit risk.

Now, How Do You Get Started Building Your PAYDEX?

The first step is to ensure your business is set up properly to separate it from yourself. You don’t want business credit accounts reporting to your personal credit. They need to report to your business credit only. How do you make this happen? Glad you asked.

Your Business Needs Separate Contact Information

The first step in setting up a foundation of fundability is to ensure your business has its own phone number, fax number, and address. Then, when you apply for credit accounts, use that information and not your personal information.

That doesn’t mean you have to get a separate phone line, or even a separate location. You can still run your business from your home or on your computer if that is what you want. You do not even have to have a fax machine.

In fact, you can get a business phone number and fax number that will work over the internet instead of phone lines. In addition, the phone number will forward to any phone you want it to so you can still use your personal cell phone or landline. Whenever someone calls your business number it will ring straight to you.

Faxes can be sent to an online fax service, if anyone ever happens to actually fax you. This part may seem outdated, but it does help your business appear legitimate to lenders.

You Must Have an EIN

The next thing you need to do is get an EIN for your business. This is an identifying number for your business that works similar to how your SSN works for you personally. Some business owners use their SSN to apply for business accounts. This is what a lot of sole proprietorships and partnerships do. However, it really doesn’t look professional to lenders. It can cause your personal and business credit to get mixed up. When you are looking to increase fundability, you need to apply for and use an EIN. You can get one for free from the IRS.

Incorporating is Absolutely Necessary

This is the most important step separating your business from yourself. Incorporating your business as an LLC, S-corp, or corporation is necessary to fundability as well. It lends credence to your business as one that is legitimate and it offers some protection from liability.

Which option you choose does not matter as much for business credit and fundability as it does for your budget and needs for liability protection. The best thing to do is talk to your attorney or a tax professional. What is going to happen is that you are going to lose the time in business that you have. When you incorporate, you become a new entity. You basically have to start over. You’ll also lose any positive payment history you may have accumulated.

This is why you have to incorporate as soon as possible. Not only is it necessary for fundability and for building business credit, but so is time in business. The longer you have been in business the more fundable you appear to be. That starts on the date of incorporation, regardless of when you actually started doing business.

A Separate Business Bank Account Is Vital

You have to open a separate, dedicated business bank account. There are a few reasons for this. First, it will help you keep track of business finances. It will also help you keep them separate from personal finances for tax purposes.

Learn more here and start building business credit with your company’s EIN, not your SSN.

There’s more to it however. There are several types of funding you cannot get without a business bank account. Many lenders and credit cards want to see one with a minimum average balance. In addition, you cannot get a merchant account without a business account at a bank. That means, you cannot take credit card payments. Studies show consumers tend to spend more when they can pay by credit card.

How Do You Establish a PAYDEX Score?

Once you are certain your business is established as an entity separate from you as the owner, you need a DUNS Number. This 9-digit number is a unique identifying number that works to establish a business credit file with D & B. A DUNS (Data Universal Number System) works to keep accurate and timely data on over 250 million businesses around the globe. You want your business to be one of them.

From an identification standpoint, it makes a lot of sense. With the use of this identifier, errors can be kept to a minimum. As a result, Dun & Bradstreet will never confuse your business with someone else’s.

Dun & Bradstreet requires that you register your company for free on their site to get a number. There are a few other ways to get a DUNS if your business belongs to a special class. These include if it is a US government contractor or grantee, your company is Canadian, or you are working as an Apple developer.

Registration is fast and simple. Once you have said yes to their Terms and Conditions, you are taken straight to a dashboard where you either ask for a DUNS number or you look up to see if your business is already listed. If it is already on the big list, then you click on your company’s name to make any needed changes.

Understanding the PAYDEX and How Dun & Bradstreet Works Is Important

By understanding what the D&B PAYDEX is, how it works, and how lenders use it, you can have a better feel for how fundable your business is. The PAYDEX is one measure of business credit, and business credit is just one piece of a business’s overall fundability.

While other aspects of fundability are important, business credit is the one that is easiest to control. All you have to do is make your payments consistently on-time. If you do that, you PAYDEX will be fabulous and you will be able to get whatever funding you need to run and grow your business.

The post Everything You Need to Know About Your PAYDEX and Other D&B Reports appeared first on Credit Suite.

Why You Need Vendors to Build Business Credit

Building business credit is not like building personal credit. When building personal credit, you simply do the things you do every day and your credit score builds passively. You do not have to do anything special to start or build personal credit. You can just open accounts, make purchases, pay them off, and your score builds from there. Business credit is different however. You have to actively work at it, and it takes vendors to build business credit.

How to Use Vendors to Build Business Credit and Other Steps in the Process

Building business credit is a process. There are many steps in the process. Using vendors to build business credit is actually one of the last steps. There are many steps you will need to take to ensure you can properly use vendors to build business credit.

Check out our best webinar with its trustworthy list of seven vendors to help you build business credit.

The First Steps in the Process: Business Credit as Part of Overall Fundability

You absolutely cannot start to use vendors to build business credit if your business does not have a foundation of fundability. Here’s why. Vendors will report to the business credit reporting agencies, but those agencies will not be able to tell you from your business. Wondering how you ensure your business is set up to be fundable? We’ll tell you.

How to Build a Fundable Foundation for Your Business

A small business has to be fundable to lenders and merchants. The first step in this process, the one that allows vendors to report payments to your business credit report rather than your personal credit, is to separate your business from yourself. The business needs to be recognizable as an entity separate from the owner, and thus have financial transactions that are not related to the owner’s personal finances. Here is how you start.

Get Separate Contact Information

First, you have to ensure your business has its own phone number, fax number, and address. Now don’t panic. That doesn’t mean you have to get a separate phone line, or even a separate location. You can still run your business from your home or on your computer if that is what you want. You do not even have to have a fax machine.

Faxes can be sent to an online fax service, if anyone ever happens to actually fax you. This part may seem outdated, but it does help your business appear legitimate to lenders.

You will also need a separate email address. Make sure it has the same URL as your business website. It shouldn’t be from a free service.

Get an EIN

The next thing you need to do is get an EIN for your business. This is an identifying number for your business that works in a way similar to how your SSN works for you personally. Some business owners used their SSN for their business. This is what a lot of sole proprietors and partnerships do. However, it really doesn’t look professional to lenders, and it can cause your personal and business credit to get all mixed up. When you are looking to increase fundability, you need to apply for and use an EIN. Get one for free from the IRS.

You Have to Incorporate

This is the most important step in fundability thus far. Incorporating your business as an LLC, S-corp, or corporation is essential. It lends credence to your business as one that is legitimate. It also offers some protection from liability. For business credit building, it is a necessary step in separating your business from yourself.

Which option you choose does not matter as much building credit as it does for your budget and needs for liability protection. The best thing to do is talk to your attorney or a tax professional. What is going to happen is that you are going to lose the time in business that you have. When you incorporate, you become a new entity. You basically have to start over. You’ll also lose any positive payment history you may have accumulated as well.

Open a Business Bank Account

Lastly, many of the best vendors to build business credit require you to have a business bank account before they will extend credit.

Due to this fact, a small business needs a professional-looking website and email address. And it needs to have site hosting you actually pay for. A free hosting service looks unprofessional.

Get a D-U-N-S Number

You will also have to get a D-U-N-S Number from Dun & Bradstreet. It’s free and easy to do on their website, but beware. They will try to sell you other services you do not need. The number is free. You definitely need it to use vendors to build business credit. Without it, you will not have a business credit profile with Dun & Bradstreet. Since they are the largest and most commonly used business CRA, you need a profile with them.

Check out our best webinar with its trustworthy list of seven vendors to help you build business credit.

The Need Credit to Get Credit Cycle

Here is why you need vendors to build business credit. There is a vicious cycle in which you have to have credit to get credit. Most lenders and credit issuers will not extend credit if you do not have a good business credit score. However, there are certain vendors, known as starter vendors, that will extend credit without even doing a credit check. They break this cycle. Still, they do reduce their risk in other ways. You need to know what they look for.

The Vendor Credit Tier

These vendors that do not check credit are in what we like to call the Vendor Credit Tier. We recognize 4 tiers in the business credit building process, and the vendor credit tier is where you will find vendors to build business credit. Typically, they offer net terms on invoices rather than revolving credit. This means, if you get an approval for $1,000 in vendor credit and use all of it, you must pay that money back in a set term, such as within 30 days on a Net 30 account.

Then, after you make payment, they will report your payment to the business credit reporting agencies.

There are a few such vendors out there. Here are some options to help get you started.

Examples of Vendors to Build Business Credit: Some of Our Top Picks

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

Uline is One of Our Favorite Vendors to Build Business Credit

Uline sells shipping, packing, and industrial supplies. Also, they report to Dun & Bradstreet. This means you must have a D-U-N-S number.

In addition, they ask for 2 references and a bank reference. The first few orders might need to be paid in advance to get approval for Net 30 terms.

Quill

Quill is another true starter vendor. They sell office, packaging, and cleaning supplies. They report to D&B and Experian.

Since Quill reports to two separate credit reporting agencies, you get two credit experiences with them. Place an initial order first unless you already have a D&B score.

Generally, they put you on a 90-day prepayment schedule. If you order items each month for 3 months, they usually approve you for a Net 30 Account.

Grainger Industrial Supply

Grainger Industrial Supply is likewise a true starter vendor. They sell safety equipment, plumbing supplies, and more. Like Uline, they report to D&B. To qualify, you must have a business license, EIN, and of course a D-U-N-S number.

For under a $1000 credit limit they approve almost anybody with a business license.

You need 5 to 8 of these types of accounts to move onto the next step, which is the retail credit tier.

Existing Accounts that Do Not Report

Be sure to check with any vendors you already do business with and ask if they will extend net terms or vendor credit of some sort and report to the business CRAs. They do not have to, but they might since they already have a relationship with you.

Likewise, ask your landlord and utilities companies if they will report your payments to them. Again, they are under no obligation to do so. However, if you ask them, they just might do it. If they do, this will only build your business credit faster.

Check out our best webinar with its trustworthy list of seven vendors to help you build business credit.

The Rest of the Story

Once there are 5 to 8 or more vendor trade accounts reporting to at least one of the CRAs, then progress to the retail credit tier. These are companies like Office Depot and Staples. They offer revolving credit only to be used in their own store or website.

After there are 8 or 10 of these types of account reporting, you can move to the fleet credit tier. These are service providers like BP and Conoco. Use this credit to buy fuel, and to repair, and take care of vehicles. Only use your Social Security Number and date of birth on these applications for verification purposes. For credit checks and guarantees, make certain to apply using the company’s EIN.

If you have been responsibly managing the credit you’ve gotten up to this point, you can start to apply for credit in the cash credit tier. These are companies that extend credit not limited by location or type of purchase. Typically, these accounts have higher limits, better interest rates, and sometimes they even offer rewards!

Vendors to Build Business Credit and Business Credit Monitoring

It is important that you monitor your business credit for many reasons. However, when you are using vendors to build business credit it is even more important. This is how you will keep up with which vendors are reporting. Then, you can know when your score may be strong enough to move on to the next credit tier.

Furthermore, you will be able to keep an eye on the overall health of your credit score and catch any mistakes that may pop up.

Be Sure to Choose the Right Vendors to Build Business Credit

Like I said before, not all vendors will work to build business credit. Not only do they have to extend credit relatively easily without a credit check, but they also have to report your payments to the proper agencies. We’ve provided you with a list of a few to start with, and there are more vendors to build business credit out there. Do you research and find the ones that work best for your situation.

The post Why You Need Vendors to Build Business Credit appeared first on Credit Suite.

Everything You Need to Know About Your Experian Business Credit Score

Experian is one of the big three credit reporting agencies. Equifax and Dun & Bradstreet are the other two. In fact, Experian keeps business credit profiles on 99.9% of all American companies. Furthermore, it boasts the most in-depth information on small and midsize businesses. Knowing this, it is easy to see why your Experian business credit score is important.

Your Experian Business Credit Score: How to Start It, Build It, and Keep It Strong

Obviously, the score is important. As a result, it is necessary to know how Experian gets their data on your business. How do they calculate your Experian business credit score? What does their report tell lenders? More than that, can you improve your score if it isn’t great?

Keep your business protected with our professional business credit monitoring.

How to Start Your Experian Business Credit Score

According to Experian, all their information comes from third parties. This means you cannot add any information to your company credit profile. That said, you can still review your report for mistakes.

You still have to ensure your business is set up properly. If it isn’t, third parties will not recognize your company as a business. You have to establish your business as an entity separate from yourself. Otherwise, your business transactions will get mixed up with personal transactions. They may show up on your personal credit report. This will cause a huge tangle of a mess.

To separate your business from yourself, make sure your business has the following.

EIN
Separate contact information
A dedicated business account
Also, you have to formally incorporate

Experian business Credit Score: Intelliscore

You have to set up your business to be separate from yourself so your business accounts will report to the business CRAs. With Experian, the main business credit score and report is the Intelliscore Plus. Along with your Experian business credit score, the report contains the following:

Identifying Information

First, there is the standard identifying information. This includes company name and address, in addition to any ownership information. This part also lists important personnel and the type of company you have. Time in business, number of employees, and the amount of yearly sales are also in this section.

Payment Information at a Glance

After this, there is a section that lists how delinquent payments are, along with how many days late they are. It also provides an overall trend. For example, the lowest and highest balance for the past six months. Current balance is also shown. So it shows the credit limit available to your business. And this is how the report gives an idea of the credit utilization rate for your company.

In addition, this part lists the number of tradelines your business holds. It also includes how many times a company has checked your credit and any UCC filings.

It also shows the percent of businesses doing worse than yours as well. The number of bankruptcies, liens, and judgments are in this section too.

Credit Summary

The credit summary shows your business’s Experian credit score. Also, it links to information on what goes into the score and tips on the best ways to improve it.

Payment Summary

Next, you see the payment summary. There are line graphs for monthly and quarterly payment trends. Conveniently, it also shows where the numbers come from. There is even a graph that shows the monthly payment trend in relation to the what is average for the industry.

Below this, there are three bar charts showing payment trends for the past 6 months. This is as reported from the tradelines.

Trade Payment Information

The next part is about how your business has done with its payments, broken down by type of account.

Inquiries

Next up are inquiries into your small business’s credit. The list names companies making inquiries and the month the inquiry was made.

Collection Filings

If your company has any collection filings, the listing is here by date. It includes collection agency name, status, amounts, and the close date, if appropriate.

Collections Summary

The summary is relatively self-explanatory. It is just below the collection filings portion.

Keep your business protected with our professional business credit monitoring.

Commercial Banking, Insurance, Leasing

Here, Experian lists all the data it has on your business relationships. Specifically, this includes relationships with insurance, commercial banking, and leasing companies. For example, how much credit was extended? When did the loan start? What is the remaining balance, if any?

Judgment Filings

Next is the report on legal information. It includes the court where a judgment was filed, the date, and how much it was for.

Tax Lien Filings

Tax lien filing information is similar to judgment filings. The only difference is there is a listing for a filing location instead of court.

UCC Filings

In this section you will see the following information related to UCC filings:

Date
filing number
jurisdiction
name of the secured party
activity on the filing.

UCC Filings Summary

Just beneath is the UCC filings summary, broken down by filing period and type of filing.

Business Owner Profile

Experian will also include an entrepreneur profile for smaller companies. The purpose is to show the relationships between you, the person, and your business. This automatically links the credit history of more than 5 million business owners to their business credit report.

It makes it much easier for your creditors to access your personal credit. This aids them in determining your overall creditworthiness. That’s important. It means that you can do the work to establish separate business credit. But your personal credit still matters. But this is in some cases.

Experian Business Credit Score: Intelliscore

The Intelliscore Plus credit score is a credit-risk evaluation based on statistics. The goal is to help businesses, investors, and prospective lenders make decisions about creditworthiness.

It’s similar to how lenders use your personal credit score. Before they decide to lend money to you, they check your credit score. The Intelliscore Plus can provide an idea of the credit risk associated with a specific business.

Intelliscore Plus Credit Score Range

The scores range from 1 to 100. The higher your score, the lower your risk class. Alternatively, the lower your score, the higher your risk class. The chart below describes each range and what it means to lenders.

Score Range Risk Class

76 – 100 Low

51 – 752 Low – Medium

26 – 503 Medium

11 – 254 High – Medium

1 – 105 High

How Is an Intelliscore Plus Credit Score Calculated?

In the credit world, Intelliscore Plus is one of the best tools for predicting risk. One reason is that they identify key factors that show how likely a business is to pay their debt.

There are over 800 of these factors. However, they can all fit into the following general categories.

Payment History

Not surprisingly, this is how well you are making payments. It includes the number of times your accounts become delinquent. It also shows the percent of accounts that are currently late. Your overall trade balance is listed too.

Frequency

Frequency refers to the amount of times your accounts have been sent to collections. It includes the number of liens and judgments you may have. Any bankruptcies related to your business or personal accounts also show up here.

In addition, frequency has to do with your payment patterns. Were you regularly slow or late with payment? Did you start off paying bills late but get better over time?

Financial

This specific factor focuses on how you use credit. For example, how much of your available credit is currently in use? Do you have a high ratio of delinquent balances in relation to your credit limits?

If you are about to start a business or are somewhat new to this game, the list above may seem a bit overwhelming. But what if your business is not yet in operation? Or you do not have a long history of business transactions? Then how will they rate you?

In this case, a blended model is used to establish your score. That means they consider your personal consumer credit score with your business’s credit score.

Other Experian Reports

Experian offers a number of other products as well. These include reports designed to help you as the owner monitor your business credit.

Business Credit Advantage Plan

This one is currently $149 monthly and contains mobile-friendly alerts and score improvement tips.

Profile Plus Report

This report is currently priced at $49.95. It features comprehensive financial payment data and predictive information on payment behavior.

Credit Score Report

This is the least expensive of the reports, currently priced at $39.95. Basically, it includes comprehensive business and credit information. Also, there is a summary of financial payment data.

Valuation Report

This report sells for $99 right now. It shows the value of your company and contains Key Performance Indicators. Additionally, it shows your business’s fair market value.

Keep your business protected with our professional business credit monitoring.

Premium Corporate Profiles

Experian also furnishes premium corporate profiles at an addition cost. The enhanced profiles contain even more detail including:

Sales figures
size
contact details
products and operations
credit summary
any Uniform Commercial Code (UCC) filings
fake business names
payment and collections history

This is in addition to the data supplied in their basic corporate profiles. They also have information on credit inquiries made in the past nine months.

Credit Alerts

Not surprisingly, you can subscribe to business credit alerts. Experian’s Business Credit Advantage program serves as a self-monitoring service. You get unlimited access to your business’s business credit report and score. You can make use of this tool for proactively handling your business credit. Alerts are sent for:

Company address changes
Changes in your business credit score
Credit inquiries on your business profile
Newly-opened credit tradelines
Any USS filings
Collection filings and
Any public record filings, for example, liens, bankruptcies, and judgments

There are ways to monitor your Experian business credit score for a fraction of the cost. Be sure to do your research.

How Do You Improve Your Experian Business Credit Score?

If your Experian business credit score isn’t the best, there are a few things you can do to improve it. It takes time, but it is possible.

Make On-Time Payments Consistently

Paying your bills on time will help establish your small business as one that meets financial obligations. This will eventually help push your score up. As a result, lenders will view your business as low risk.

Use the Credit

Keep your debt low. That’s good advice. Still, opening business credit accounts can help raise your credit score. The key is to use all credit responsibly.

Keep Your Personal Credit in Check

By now, you’re aware that your personal credit is fair game when it comes to your Intelliscore Plus score. Running a business is hard work. However, don’t let your personal finances suffer. See to it you stay on top of your personal debt. Steer clear of credit checks that are not necessary. Basically, do not compromise your personal credit for business needs.

Your Experian Business Credit Score is Vital to Funding Approval, But There is More

Your credit score from all of the business credit reporting agencies is important. Each one can affect your ability to get funding. One isn’t more important than the other. This is because you never know which agency a lender may use.

However, credit score isn’t the only thing that matters. Business credit scores are just one piece of overall business fundability. There is so much more to it. Fundability as a whole is much more complicated than just business credit. The bigger picture is just as important.

What makes up this bigger picture? There are a number of things that go into fundability. For example, you have to have all of the licenses necessary to run your business. In addition, there has to be consistency in your business information across all platforms. Of course, your business has to be set up to be fundable as well. All of this and more comes together to form the complete fundability of your business. Are you wondering if your business is fundable? Take a minute and do an analysis of fundability and see what you find out.

The post Everything You Need to Know About Your Experian Business Credit Score appeared first on Credit Suite.

What Digital Agencies Need to Know about ADA Compliance: Paper.li Blogs & More

Are you digital providing marketing services? Is usability and ADA compliance part of your auditing process? If not, you are missing out… Here’s why: What is ADA Compliance? ADA (Americans with Disabilities Act Standards for … The post What Digital Agencies Need to Know about ADA Compliance: Paper.li Blogs & More appeared first on Paper.li … Continue reading What Digital Agencies Need to Know about ADA Compliance: Paper.li Blogs & More