Tag: Recession

Rock Solid: You Can Apply for a Business Credit Card with Bad Credit in a Recession

Apply for a Business Credit Card with Bad Credit in a Recession the Foolproof Way

Do you want to apply for a business credit card with bad credit in a recession which you think will drag you down? Not to worry. And that is still true despite the emergence of COVID-19.

According to the SBA, business credit card limits are 10 – 100 times those of personal cards! This shows you can get a lot more cash with business credit.

And it also means you can have personal credit cards at retail stores, and now have an additional card at the same shops for your business. And you won’t need collateral, cash flow, or financial information to get company credit.

Apply for a Business Credit Card with Bad Credit in a Recession

Brex Card for Startups

Take a look at the Brex Card for Startups. It has no annual fee.

You will not need to provide your Social Security number to apply. And you will not need to provide a personal guarantee. They will take your EIN.

Nonetheless, they do not accept every industry.

Also, there are some industries they will not work with, and others where they want more paperwork. For a list, go here: https://brex.com/legal/prohibited_activities/.

To determine creditworthiness, Brex checks a business’s cash balance, spending patterns, and investors.

You can get 7x points on rideshare. Get 4x on Brex Travel. Also, get triple points on restaurants. And get double points on recurring software payments. Get 1x points on everything else.

You can have bad credit scores (even a 300 FICO) to qualify.

Find it here: https://brex.com/lp/startups-higher-limits/

Check out how our reliable process will help your business get the best business credit cards, even during a recession.

Apply for a Business Credit Card with Bad Credit in a Recession – Fair Credit? No Problem!

Capital One® Spark® Classic for Business

Check out the Capital One® Spark® Classic for Business. It has no annual fee. There is no introductory APR offer. The regular APR is a variable 24.49%. You can earn unlimited 1% cash back on every purchase for your business, with no minimum to redeem.

While this card is within reach if you have average credit scores, beware of the APR. Yet if you can pay in a timely manner, and completely, then it’s a bargain.

Find it here: https://www.capitalone.com/small-business/credit-cards/spark-classic/

Apply for a Business Credit Card with Bad Credit in a Recession with a 0% Introductory APR – Pay Zero!

Blue Business® Plus Credit Card from American Express

Check out the Blue Business® Plus Credit Card from American Express. It has no yearly fee. There is a 0% introductory APR for the first one year. Afterwards, the APR is a variable 14.74 – 20.74%.

Get double Membership Rewards® points on everyday company purchases like office supplies or client suppers for the first $50,000 spent per year. Get 1 point per dollar afterwards.

You will need great to exceptional credit to qualify.

Find it here: https://creditcard.americanexpress.com/d/bluebusinessplus-credit-card/

American Express® Blue Business Cash Card

Also take a look at the American Express® Blue Business Cash Card. Note: the American Express® Blue Business Cash Card is identical to the Blue Business® Plus Credit Card from American Express. However its rewards are in cash instead of points.

Get 2% cash back on all qualified purchases on up to $50,000 per calendar year. After that get 1%.

It has no yearly fee. There is a 0% introductory APR for the initial one year. Afterwards, the APR is a variable 14.74 – 20.74%.

You will need great to exceptional credit scores to qualify.Business Credit Card with Bad Credit in a Recession Credit Suite

Find it here: https://creditcard.americanexpress.com/d/business-bluecash-credit-card/

Apply for a Business Credit Card with Bad Credit in a Recession and Even Get Luxurious Travel Points

Flat-rate Travel Rewards

Capital One® Spark® Miles for Business

Have a look at the Capital One® Spark® Miles for Business. It has an introductory annual fee of $0 for the first year, which after that rises to $95. The regular APR is 18.49%, variable due to the prime rate. There is no introductory annual percentage rate. Pay no transfer fees. Late fees go up to $39.

This card is fantastic for travel if your expenditures do not fall into common bonus categories. You can get unlimited double miles on all purchases, with no limits. Earn 5x miles on rental cars and hotels if you book via Capital One Travel.

Get an initial bonus of 50,000 miles. That’s the same as $500 in travel. Yet you only get it if you spend $4,500 in the first 3 months from account opening. There is no foreign transaction fee. You will need a great to excellent FICO rating to qualify.

Find it here: https://www.capitalone.com/small-business/credit-cards/spark-miles/

Bonus Travel Categories with a Sign-Up Offer

Ink Business Preferred℠ Credit Card

For a terrific sign-up offer and bonus categories, have a look at the Ink Business Preferred℠ Credit Card.

Pay an annual fee of $95. Regular APR is 17.49 – 22.49%, variable. There is no introductory APR offer.

Get 100,000 bonus points after spending $15,000 in the initial 3 months after account opening. This works out to $1,250 towards travel rewards if you redeem through Chase Ultimate Rewards.

Get 3 points per dollar of the first $150,000 you spend with this card. So this is for purchases on travel, shipping, internet, cable, and phone services. Plus it includes advertising purchases made with social media sites and search engines each account anniversary year.

You can get 25% more in travel redemption when you redeem for travel with Chase Ultimate Rewards. You will need a great to exceptional FICO score to qualify.

Find it here: https://creditcards.chase.com/business-credit-cards/ink/business-preferred

No Yearly Fee

Bank of America® Business Advantage Travel Rewards World MasterCard® credit card

For no annual fee while still getting travel rewards, have a look at this card from Bank of America. It has no annual fee and a 0% introductory APR for purchases during the initial 9 billing cycles. After that, its regular APR is 13.74 – 23.74% variable.

You can earn 30,000 bonus points when you make a minimum of $3,000 in net purchases. So this is within 90 days of your account opening. You can redeem these points for a $300 statement credit towards travel purchases.

Earn unlimited 1.5 points for each $1 you spend on all purchases, everywhere, every time. And this is no matter how much you spend.

Also get 3 points per every dollar spent when you reserve your travel (car, hotel, airline) with the Bank of America® Travel Center. There is no limit to the number of points you can earn and points do not expire.

You will need excellent credit to get this one (as in, 700s or better).

Find it here: https://www.bankofamerica.com/smallbusiness/credit-cards/products/travel-rewards-business-credit-card/

Hotel Credit Card

Marriott Bonvoy Business™ American Express® Card

Take a look at the Marriott Bonvoy Business™ Card from American Express. It has a yearly fee of $125. There is no introductory APR offer. The regular APR is a variable 17.24 – 26.24%. You will need good to outstanding credit scores to get this card.

Points

You can get 75,000 Marriott Bonvoy points after using your card to make purchases of $3,000 in the initial three months. Get 6x the points for qualified purchases at participating Marriott Bonvoy hotels. You can get 4x the points at United States restaurants and gasoline stations. And you can get 4x the points on wireless telephone services purchased directly from US providers and on US purchases for shipping.

Get double points on all other eligible purchases.

Rewards

Plus, you get a free night each year after your card anniversary. And you can earn another free night after you spend $60,000 on your card in a calendar year.

You get free Marriott Bonvoy Silver Elite status with your Card. Plus, spend $35,000 on eligible purchases in a calendar year and earn an upgrade to Marriott Bonvoy Gold Elite status through the end of the next calendar year.

Plus, each calendar year you can get credit for 15 nights towards the next level of Marriott Bonvoy Elite status.

Find it here: https://creditcard.americanexpress.com/d/bonvoy-business/

Apply for a Business Credit Card with Bad Credit in a Recession and Pay No Annual Fee

No Annual Fee/Flat Rate Cash Back

Ink Business Unlimited℠ Credit Card

Check out the Ink Business Unlimited℠ Credit Card. Beyond no yearly fee, get an introductory 0% APR for the first year. After that, the APR is a variable 14.74 – 20.74%.

You can get unlimited 1.5% Cash Back rewards on every purchase made for your business. And get $500 bonus cash back after spending $3,000 in the first 3 months from account opening. You can redeem your rewards for cash back, gift cards, travel and more using Chase Ultimate Rewards®. You will need excellent credit scores to qualify for this card.

Find it here: https://creditcards.chase.com/business-credit-cards/ink/unlimited

Apply for a Business Credit Card with Bad Credit in a Recession and Get Jackpot Rewards That Never Expire

Capital One® Spark® Cash Select for Business

Check out the Capital One® Spark® Cash Select for Business. It has no annual fee. You can get 1.5% cash back on every purchase. There is no limit on the cash back you can earn. And earn a one-time $200 cash bonus once you spend $3,000 on purchases in the first 3 months. Rewards never expire.

Pay a 0% introductory APR for 9 months. Then pay 14.49% – 22.49% variable APR afterwards.

You will need great to excellent credit scores to qualify.

Find it here: https://www.capitalone.com/small-business/credit-cards/spark-cash-select/

Check out how our reliable process will help your business get the best business credit cards, even during a recession.

Apply for a Business Credit Card with Bad Credit in a Recession and Get Cash Back

Flat-Rate Rewards

Capital One ® Spark® Cash for Business

Check out the Capital One® Spark® Cash for Business. It has an introductory $0 annual fee for the initial year. After that, this card costs $95 each year. There is no introductory APR offer. The regular APR is a variable 18.49%.

You can get a $500 one-time cash bonus after spending $4,000 in the initial 3 months from account opening. Get unlimited 2% cash back. Redeem any time without any minimums.

You will need great to exceptional credit to qualify.

Find it here: https://www.capitalone.com/small-business/credit-cards/spark-cash/

Flat-Rate Rewards and No Yearly Fee

Discover it® Business Card

Check out the Discover it® Business Card. It has no annual fee. There is an introductory APR of 0% on purchases for twelve months. After that the regular APR is a variable 14.49 – 22.49%.

Get unlimited 1.5% cash back on all purchases, with no category restrictions or bonuses. They double the 1.5% Cashback Match™ at the end of the first year. There is no minimum spend requirement.

You can download transactions| conveniently to Quicken, QuickBooks, and Excel. Note: you will need good to outstanding credit scores to get approval for this card.

https://www.discover.com/credit-cards/business/

Bonus Categories

Ink Business Cash℠ Credit Card

Have a look at the Ink Business Cash℠ Credit Card. It has no annual fee. There is a 0% introductory APR for the first year. After that, the APR is a variable 14.74 – 20.74%. You can get a $500 one-time cash bonus after spending $3,000 in the initial three months from account opening.

You can get 5% cash back on the initial $25,000 spent in combined purchases at office supply stores and on internet, cable, and phone services each account anniversary year.

Get 2% cash back on the initial $25,000 spent in combined purchases at filling stations and restaurants each account anniversary year. Get 1% cash back on all other purchases. There is no limitation to the amount you can earn.

You will need outstanding credit scores to get this card.

Find it here: https://creditcards.chase.com/business-credit-cards/ink/cash?iCELL=61GF

Boosted Cash Back Categories

Bank of America® Business Advantage Cash Rewards MasterCard® credit card

Take a look at the Bank of America® Business Advantage Cash Rewards MasterCard® credit card. Get an 0% introductory APR for the first 9 billing cycles of the account. After that, the APR is 13.74% – 23.74% variable. There is no annual fee. You can get a $300 statement credit offer.

Get 3% cash back in the category of your choice. So these are gas stations (default), office supply stores, travel, TV/telecom & wireless, computer services or business consulting services. Get 2% cash back on dining. So this is for the first $50,000 in combined choice category/dining purchases each calendar year. After that earn 1% after, with no limits.

You will need superb credit scores to qualify.

Find it here: https://promo.bankofamerica.com/smallbusinesscards2/

Check out how our reliable process will help your business get the best business credit cards, even during a recession.

Apply for a Business Credit Card with Bad Credit in a Recession with Flexible Financing

The Plum Card® from American Express

Check out the Plum Card® from American Express. It has an initial annual fee of $0 for the first year. After that, pay $250 per year.

Get a 1.5% early pay discount cash back bonus when you pay within 10 days. You can take up to 60 days to pay without interest when you pay the minimum due by the payment due date.

You will need good to exceptional credit scores to qualify.

Find it here: https://creditcard.americanexpress.com/d/the-plum-card-business-charge-card/

The Perfect Way to Apply for a Business Credit Card with Bad Credit in a Recession

Your absolute best way to apply for a business credit card with bad credit in a recession will hinge on your credit history and scores.

Only you can select which features you want and need. So make sure to do your homework. What is excellent for you could be catastrophic for others.

And, as always, make sure to develop credit in the recommended order for the best, speediest benefits. The COVID-19 situation won’t last forever.

The post Rock Solid: You Can Apply for a Business Credit Card with Bad Credit in a Recession appeared first on Credit Suite.

Raise Your Recession Business Banking Rates and Get Funding Even in a Bad Economy

Do You Need to Know Just How Banks Determine Your Recession Business Banking Rates?

Banks are in the business of judging your company’s creditworthiness. This has a direct relationship to several important issues. Ignore these at your peril! It pays to take the time to try to understand how your recession business banking rates will work.

Recession Era Funding

The number of American financial institutions and also thrifts has been decreasing gradually for a quarter of a century. This is from consolidation in the market along with deregulation in the 1990s, decreasing obstacles to interstate banking. See: https://www.fundera.com/blog/happened-americas-small-businesses-financial-crisis-six-years-start-crisis-look-back-10-charts

Assets concentrated in ever‐larger banks is troublesome for local business proprietors. Big financial institutions are a lot less likely to make small loans. Economic recessions mean financial institutions become more careful with financing. For this reason, you need to understand your business bank ratings. It’s the only way you will be able to improve them.

Your Recession Business Banking Rates – It All Has to do With Your Bank Credit Score

But what’s that all about?

Did you know there are many ways you can ravage your bank credit score? It is, regrettably, quite easy to run a power saw through your bank rating. Your recession business banking rates can easily end up taking a hit.

But before going any further, do you know the difference between bank credit ratings and small business credit?

Business credit is the full and complete amount of cash that your small business can receive from all manner of lenders. That means credit unions, credit card companies, and also renting businesses. And it also means vendors, under what’s called trade credit or vendor credit or trade lines.

A bank credit score, on the other hand, is a measure of the full amount of borrowing ability which a company can get from the banking system only.

Bank Credit Scores Explained

A company can get more business credit fast . That is, as long as it has at least one financial institution reference. Plus it must have an average day to day account balance of at the very least $10,000 for the most recent three months. This setup will generate a bank credit rating of a Low-5. So this means it is an Adjusted Debt Balance of from $5,000 to $30,000.

A lower score, like a High-4, or balance of $7,000 to $9,999 will not result in an automatic turn down of the small business’s loan application. But it will slow down the approval process.

What is a Bank Rating?

A bank rating is a measure of the average minimum balance as kept in a business bank account over a 3 month long period. Hence a $10,000 balance| will rate as a Low-5, a $5,000 balance will rate as a Mid-4, and a $999 balance will rate as a High-3, etc.

A company’s chief goal ought to always be to maintain a minimum Low-5 bank rating (or, an average $10,000 balance) for a minimum of 3 months. This is because, without at the very least a Low-5 score, most financial institutions will assume a business cannot pay back a loan or a business line of credit.

Yet there is one point to keep in mind – you will never see this number. The financial institution will keep this number in its back pocket.

The Bank Rating Ranges

The numbers work out to the following ranges:

To get a High-5 rating, your business will need to have an account balance of $70,000 to $99,999. For a Mid-5 score, your business has to have an account balance of $40,000 to $69,999. And for a Low-5 score, your company should hold onto an account balance of $10,000 to $39,000. So your small business needs this level bank rating or better to get a bank loan.

For a High-4 score, your small business needs to have an account balance of $7,000 to $9,999. And for a Mid-4 rating, your company must have an account balance of $4,000 to $6,999. So for a Low-4 score, your company will need to have an account balance of $1,000 to $3,999.

Your Recession Business Banking Rates – It Can Be Scary Easy to Damage Your Bank Rating

And now, without further ado, here are 7 ways you can leave your bank score in tatters. These methods can all too easily hurt your recession business banking rates.

7th Way to Ruin Your Bank Credit

Don’t maintain a minimum balance for at least three months. Since every bank score cycle has a basis in the last 3 months, a seesawing balance will harm your bank score.

6th Way to Ruin Your Bank Credit Rating

Don’t bother to assure that your company bank accounts are on report the exact same way as all your small business records are. And do not assume they are on report with the exact same physical address (no post office box) and contact number. Sow confusion here by editing one and not another, or not dealing with an error if there is one.

Recession Business Banking Rates Credit Suite

Have a look at our expert research on bank ratings, the obscure reason why you will – or won’t – get a bank loan for your company.

Fifth Way to Destroy Your Bank Credit

To support # 6, don’t make sure that each and every credit agency and trade credit vendor likewise lists the business name and address the precise same way. This is every keeper of financial records, earnings and sales taxes. It includes web addresses and email addresses, directory assistance, etc.

No loan provider is going to think of the myriad ways that a company may be listed, when they check out the business’s creditworthiness. So if they cannot find what they need fast, they will refute an application. Or it won’t be on the report to a company credit reporting bureau such as Experian, Equifax or Dun & Bradstreet.

For that reason, if they are not able to locate what they need quickly, they will simply reject the application. So make certain your documents are a mess!

4th Way to Damage Your Bank Credit Rating

Never handle your bank account responsibly. This means that your small business must not avoid writing non-sufficient funds (NSF) checks at all costs. Such is due to the fact that those decimate bank ratings. Non-sufficient funds checks are something which no company can afford to let happen.

Balancing checkbooks and accounts is so boring anyway. You’ve got adequate cash without even making sure, right?

Third Way to Ruin Your Bank Credit Rating

To add to # 4, do not add overdraft protection to your bank account ASAP, to avoid NSFs. Why bother thinking in advance or preparing for the future? Everything is going to be terrific permanently, right?

Writing checks insufficient funds (NSFs) is a sure way to wreck your bank score.

2nd Way to Damage Your Bank Credit Rating

Do not let your business show a positive cash flow. The cash coming in and leaving your business’s bank account should reflect a positive free cash flow.

A positive free cash flow is the quantity of revenue left over after a firm has paid all its expenses. According to Investopedia, it “represents the cash a company can generate after required investment to maintain or expand its asset base. It is a measurement of a company’s financial performance and health.”

When an account shows a positive cash flow it indicates your small business is generating more revenue than you use to run the firm. That means the bank will feel your small business can cover its costs.

So if you really intend to wreck your bank score, get whatever’s expensive for your company so your costs overtake your profits. Doesn’t every factory merit luxurious carpets in the loading dock?

Recession Business Banking Rates Credit Suite

Have a look at our expert research on bank ratings, the obscure reason why you will – or won’t – get a bank loan for your company.

First Way to Damage Your Bank Credit Rating

Financial institutions have quite the motivation to lend to a small business with consistent deposits. And an entrepreneur must also make regular deposits to keep a positive bank rating. The business owner has to make a lot of regular deposits, greater than the withdrawals they are making, to have and maintain a great bank rating. If they can do that, then they will have a great bank credit score.

Consistency is the hobgoblin of little minds, right? So be a free spirit!

Your Recession Business Banking Rates – It is Way too Easy to Destroy Your Company’s Bank Score – Even Though You Will Never See It

You, the entrepreneur must never make consistent deposits. And these deposits ought to never be more than the withdrawals you are making, to ruin your bank credit.

If you can do these things, then your company will have a horrible bank credit score. And then a bad bank credit score means your firm is much less likely to get small business loans. This is how you can truly muck up your recession business banking rates.

Your Recession Business Banking Rates – Just Kidding: Of Course We Do Not Actually Want You to Destroy Your Company’s Bank Credit Rating!

But your recession business banking rates are a thing of value. You should want to protect and nurture it. So, where do you go from here?

The First Great Way to Rescue Your Bank Credit Rating

Probably the easiest way to achieve and maintain an excellent bank credit rating is to deposit at least $10,000 into your company bank account. And keep it there for as much as six months. While you will still have to make regular deposits, this one simple step will assist in 3 ways. One, you will have kept an excellent minimum balance for at the very least 3 months. Two, you will probably not overdraw with such a great balance. And three, you will be at the magic minimum for a Low-5 bank credit rating. Thus you will be dealing with our # 4 and # 7, above.

And you may even have the ability to get around our # 3. But we still highly recommend overdraft protection.

Recession Business Banking Rates Credit Suite

Have a look at our expert research on bank ratings, the obscure reason why you will – or won’t – get a bank loan for your company.

The 2nd Excellent Way to Rescue Your Bank Credit Rating

A 2nd thing you can do is make certain your small business account details are consistent across the board, everywhere. While it may take some work order to make certain every little thing is right, you will be dealing with our # 5 as well as # 6, above.

The Third Great Way to Rescue Your Bank Credit Score

A 3rd thing you can do is make consistent deposits, as well as make sure they are greater than the quantities you are withdrawing each month. This will take care of our # 1 and also # 2.

Your Recession Business Banking Rates –Takeaways

Your bank score is not to be trifled with. The financial institutions maintain a mystery about them. Still, failing to keep your bank credit rating high will make it a whole lot harder to do well in business. In this way, you can defend and improve your recession business banking rates.

The post Raise Your Recession Business Banking Rates and Get Funding Even in a Bad Economy appeared first on Credit Suite.

What Are Inventory Loans and How are They Affected by the Recession

Inventory loans are short term loans that business owners can use to purchase inventory.  The inventory is the security for the loan.  By taking out this type of loan, a business can stay ahead of demand.  It also allows for taking advantage of special pricing, thus increasing profit. 

Inventory Loans are Not Always a Sure Thing

 Investopedia defines inventory financing as: 

“… a revolving line of credit or a short-term loan that is acquired by a company so it can purchase products for sale later. The products serve as the collateral for the loan.”

These types of loans are a type of inventory financing.  Seeing as these are, at their core, secured loans, it stands to reason that they are easier to get than unsecured loans.  However, that is not always the case. 

Why Inventory Loans are Hard to Get

The idea of inventory as collateral for the financing used to buy it sounds simple enough.  However, after the hard economic downturn of 2008, lenders are much stingier with this type of small business financing.  During that time, it was painfully evident that, if your loan was secured by non-staple items, there was about to be trouble.  

Non-necessities do not sell well in a recession.  If you can’t sell, the bank cannot either. That means the security is pretty much worthless. 

Another issue is that inventory depreciates.  As security, it’s basically on the clock.  If it depreciates to the point of not being worth the amount of the loan, it is worthless as security.  There is also the idea that it may be a fad that is going to quickly go out of style, also not selling. 

These are just a few of the reasons lenders are reluctant to approve loans secured by inventory. Typically, they approve these types of loans on a case by case basis, taking all of these factors into account. Even when they grant approval, it is typically for only around 50% of the cost.

inventory loans Credit Suite

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

Ways to Use Inventory Loans

There are some things you can purchase with inventory loans that may surprise you.  For example: 

  • If you run a dining establishment, you can use inventory loans to buy flatware and linens in addition to food supplies. 
  • If you run a salon, you can use this type of financing for towels and supplies as well as items to sell. 
  • A clothing store may use the funds for shoes, accessories, and other items. 

The point is, funds for these loans can purchase items that are not specifically inventory in terms of things that you sell to the public.  They can also purchase supplies for any services you may offer. 

Other Options for Inventory Loans

How do you fill in the gap for the other 50% of inventory costs? Further, how can you finance inventory if you cannot get any type of funding at all?  There are some other options. 

Inventory Loans: Credit Line Hybrid

A credit line hybrid is essentially an unsecured line of credit.  It allows you to fund your business without putting up collateral, and you only pay back what you use.  The funds can be used for many things, including inventory financing. 

 It’s super easy to qualify.  You need a personal credit score of at least 680, and you can’t have any liens, judgments, bankruptcies or late payments.  Furthermore, in the past 6 months you should have less than 4 credit inquiries, and you should have less than a 45% balance on all business and personal credit cards.  It’s also preferred that you have established business credit as well as personal credit.

I know, that doesn’t sound all that easy.  Here’s the catch.  If you do not meet all of the requirements, it’s okay. You can take on a credit partner that meets each of these requirements.  Many business owners work with a friend or relative to fund their business.  If a relative or a friend meets all of these requirements, they can partner with you to allow you to tap into their credit to access funding. 

Credit Line Hybrid vs. Inventory Loans

There are many benefits to using a credit line hybrid.  First, it is unsecured, meaning you do not have to have any collateral to put up.  Next, this is no-doc funding.  That means you do not have to provide any bank statements or financials.  

In addition, typical approval is up to 5x that of the highest credit limit on the personal credit report. Often, you can get interest rates as low as 0% for the first few months, allowing you to put that savings back into your business. 

Here is another benefit of the credit line hybrid.  With the approval for multiple credit cards, competition is created.  This makes it easier, and likely even if you handle the credit responsibly, that you can get interest rates lowered and limits raised every few months. The process is generally quick, especially with a qualified expert to walk you through it. 

Inventory Loans: Alternative Lending

Alternative lenders generally operate online.  They tend to reduce risk by increasing interest rates rather than relying completely on credit information.  This means that they can be an option for those businesses and owners that either have bad credit or have not yet built strong enough credit to qualify for financing with traditional lenders. Here are a few options. 

Fundbox

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

They offer an automated process that is super-fast. Repayments are automatic, meaning they draft them electronically, and they occur on a weekly basis.  One thing to remember is that you could have a repayment as high as 5 to 7% of the amount you have drawn currently, as the repayment period is comparatively short.  This means you need to be sure you have enough funds in whatever account you connect them to so that it can cover your payment each week.

inventory loans Credit Suite

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

Upstart

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

This alternative data can include such things as mobile phone bills, rent, deposits, withdrawals, and even other information less directly tied to finances.  The software they use learns and improves on its own. You can use their online quote tool to play with different amounts and terms to see the various interest rate possibilities.  Typically, business loans are available up to $50,000.  Interest rates vary greatly, ranging from 7.5% to 35.99%.  Repayment terms can be either 3 -year or 5-year. 

Fora Financial 

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

OnDeck 

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

Bond Street

Offering term loans of up to $1 million, Bond Street terms are for up to 1 to 3 years. They will ask for both EIN and SSN.

Lending Club

Popular online lender Lending Club offers term loans. Business loans go up to $300,000 and terms from 1 to 5 years are available.

Quarter Spot

Quarter Spot is an online lender that offers short term loans up to $150,000. The terms are 9 to 18 months. 

Rapid Advance

Rapid Advance offers standard, select, and preferred loans. For standard loans, amounts up to $1 million are available. Their terms are 4 to 12 months.

Kiva 

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

Accion 

If your personal credit is okay, Accion may be a good fit for inventory financing. It is a microlender, a nonprofit, that offers installment loans to both startups and already existing businesses. You don’t have to already be in business, but if you are not, you must have less than $500 in past due debt. In addition, your business needs to be home or incubator based. 

Credibly 

Credibly is also a good option if you are already generating some revenue. They offer short term loans for both business expansion and working capital. 

Details related to loan amounts, eligibility requirements, and interest rates change frequently, so it’s best to get that information from the lender’s website directly.  However, many of these either do not check credit or will work with a credit score of less than 600.  Though interest rates are higher than with traditional lenders, they often offer options where there seem to be none. 

Inventory Loans: Credit Cards

In a pinch, you can handle inventory financing with credit cards.  If you pay attention, you can get good introductory rates and rewards.  However, you have to pay attention so you don’t get stuck with high rates once the introductory rates are over.  A better bet is the credit line hybrid, because you can take advantage of all the benefits with an expert to walk you through the process and make sure nothing is missed. 

Inventory Loans: Merchant Cash Advance

In some situations, this can be an option for inventory financing.   This is how it works.  If you take credit card payments, you can get financing based on the average of daily credit cards sales.  Then, payment is taken from future sales.  

The thing is, if you are in a recession, credit cards sales may not be that great, and future sales may not be solid.  However, it is an option that bears mentioning.

inventory loans Credit Suite

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

Inventory Loans: Are They Right for Your Business? 

The fact is, every business is likely to need some type of inventory financing in the course of their business. The problem comes when lenders envision large amounts of inventory sitting in a warehouse not selling.  If it’s not selling, then the business isn’t making money and the lender is not getting paid.  

If you sell staples that are needed in most any type of economy, inventory loans can be a good option.  With strong fundability, you may not have any issue getting loans secured by inventory.  However, this is not the case with many businesses.  A lot of business owners find their fundability is not up to par, and they didn’t even realize it.  Couple that with the already unsure nature of getting approved for business loans, and it may be best to go with an alternative. 

While alternative loans are a viable option, the first stop for most business owners should be the credit line hybrid.  It is available to absolutely anyone.  Even if your own credit is not great, the option to take on a credit partner can make this funding source an option for almost anyone.  

The best part is, using the credit line hybrid helps to build the fundability of your business.  This is because the experts that walk you through the process help ensure that, not only get the funds you need right now, but also that your business is set up and prepared to qualify for any type of funding you may need in the future. 

All businesses need inventory funding.  If inventory loans won’t work, there are other options.

The post What Are Inventory Loans and How are They Affected by the Recession appeared first on Credit Suite.

Get Business Credit Cards That Don’t Report on Your Consumer Credit Reports During a Recession Downturn

Get business credit cards during a recession downturn – coronavirus or no coronavirus, this could be the perfect time for you to build your business credit history. So here are excellent cards where you can do just that.

You Can Get Business Credit Cards That Don’t Report on Your Consumer Credit Reports Even During a Recession Downturn

Learn how to make sure your business credit cards don’t report on your consumer credit reports. It makes a difference with business credit funding! You need business credit cards that do not report to personal credit. Even in a recession downturn!

Many small business credit cards require that the business owner to personally guarantee the debt. Usually this person is also the cardholder, although not all the time. But you want to apply for business credit card without personal guarantee. Don’t blame you! It would be a lot better to get an unsecured business credit card no personal guarantee.

That means that if the balance is not paid off for the business, then the owner will end up being responsible for the entire amount. It also means that business account activity could potentially spill over to the owner’s personal credit reports. It stinks to guaranty business credit!

But this depends upon each card issuer’s policy.

Policy Considerations

Some card issuers only report activity to the cardholder’s personal credit reports in the case of the owner defaulting. And there are others which will report all activity. And they will not distinguish between positive and negative activity.

The easiest way to keep business credit activity off your personal credit report is to use a business credit card which does not report business activity to personal credit bureaus. However, the decision to use a card such as this should not be made lightly. But no matter what, you don’t want these cards to report on your consumer credit reports.

So, is how to get a credit card without credit.

Report Activity During a Recession Downturn

Which is better? It all depends upon your situation. If you pay your business card on time and avoid high balances, then a ‘business’ card that appears on your personal credit reports with Experian, Equifax, and TransUnion should not be a problem.

It could even help your credit scores.

Utilization Issues

But if you charge everything you can on your card in order to rack up rewards, then your personal credit could conceivably suffer. Credit scoring models will take into consideration your debt usage or utilization ratio.

This compares the reported balances versus available credit limits. It is often for each card as well as all credit cards combined.

A high balance on a business card which appears on your personal credit can mean a higher debt usage ratio. And that can lower credit scores.

And paying the balance off in full every month alone is unlikely to solve this problem. The reported balance is often the balance as of the statement closing date and not after a payment has been made.

Therefore, if you want lower balances to get onto the reports, you need to make your payments before either the statement closing date, or whichever date the issuer reports.

Some Small Advantages

However, if your personal credit history is lacking, a business card which reports your full account activity could help. Hence if you avoid credit cards and use a debit card, you may have a “thin” credit profile. It could benefit from the boost another card could provide.

Opting for a business credit card which does not report to personal credit may help if you know there will be times you need to run up charges putting you close to the limit or carry a balance.

This could be for anything from investing in new equipment to spending to prepare for a trade show. Of course you do not want that activity to bring down your scores.

Using a Business Credit Card that Doesn’t Affect Personal Credit in a Recession Downturn

Generally, it’s better to apply for the business credit card which offers rewards and benefits of the most interest to you, rather than focusing solely on the card’s reporting policy.

Furthermore, if you default, then having a business credit card which does not report regularly to consumer credit bureaus will make no difference. You will still end up personally liable for the debt on the card if you signed a personal guarantee. This is not the way to get credit cards for businesses with no personal guarantee.

And you want a business credit card no personal guarantee required.

If the card issuer brings a lawsuit against you for the balance or sends the account to a collections agency, then this activity will likely show up on your personal credit report. That can happen regardless of how any other payment information is reported.

Another option in a Recession Downturn

Another way out is to use business credit cards that do not require a personal guarantee. However, those are few and far between. These sorts of cards ask you, the business owner, to meet a set of conditions which can differ from one product to another.

These could be annual sales guarantees. Or they might be requirements to have an open Dun & Bradstreet file or other conditions. If you cannot meet these conditions, then this option will not exist for your business at all.

Finally, as always, it literally pays to separate your business life from your personal life, by opening separate accounts and even incorporating your business, in order to demonstrate to creditors that you and your company are not the same when it comes to credit.

Build Business Credit During a Recession Downturn

So the truth is the best way to get around these problems is simply to build business credit! Don’t settle for credit cards that don’t do what you want. And don’t settle for a corporate business card that say ‘business’ on it, but is really a personal credit card in disguise.

You want it when business credit cards don’t report on your consumer credit reports. And such cards would not be them.

Every Small Business Needs Company Credit Building

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

Because of this, an entrepreneur’s business and individual credit scores can be very different. And establishing business credit without personal guarantee is key.

The Advantages – Especially in a Recession Downturn

Given that small business credit is distinct from personal, it helps to safeguard a business owner’s personal assets, in case of litigation or business bankruptcy.

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

Another advantage is that even startups can do this. Visiting a bank for a business loan can be a formula for disappointment. But building company credit, when done properly, is a plan for success. You could even get a business loan no personal guarantee.

Individual credit scores depend upon payments but also other elements like credit usage percentages.

But for small business credit, the scores actually merely hinge on if a company pays its invoices promptly.

Recession Downturn Credit Suite

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

The Process

Growing business credit is a process, and it does not occur automatically. A small business will need to actively work to build business credit.

That being said, it can be done readily and quickly, and it is much speedier than establishing personal credit scores.

Vendors are a big component of this process.

Carrying out the steps out of order will result in repetitive rejections. Nobody can start at the top with company credit. For example, you can’t start with store or cash credit from your bank. If you do you’ll get a rejection 100% of the time.

But done right, this is how to get business credit card without personal guarantee.

Business Fundability in a Recession Downturn

A business needs to be bona fide to lending institutions and merchants.

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

In addition company telephone and fax numbers should have a listing on ListYourself.net.

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

A company will also need a bank account dedicated solely to it, and it must have every one of the licenses necessary for running.

Licenses

These licenses all must be in the perfect, accurate name of the business. And they need to have the same company address and telephone numbers.

So keep in mind that this means not just state licenses, but possibly also city licenses.

Working with the IRS

Visit the Internal Revenue Service website and acquire an EIN for the business. They’re free of charge. Choose a business entity such as corporation, LLC, etc.

A small business can get started as a sole proprietor. But they will probably want to change to a variety of corporation or partnership.

This is in order to decrease risk. And it will make best use of tax benefits.

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

Beginning the Business Credit Reporting Process

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

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

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

Recession Downturn Credit Suite

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

Vendor Credit

First you should establish trade lines that report. This is also known as vendor credit. Then you’ll have an established credit profile, and you’ll get a business credit score.

And with an established business credit profile and score you can begin getting retail store and cash credit.

These kinds of accounts tend to be for the things bought all the time, like shipping boxes, outdoor work wear, ink and toner, and office furniture.

But first off, what is trade credit? These trade lines are credit issuers who will give you starter credit when you have none now. Terms are usually Net 30, instead of revolving.

Therefore, if you get 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.

Details

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

To launch your business credit profile properly, you need to get approval for vendor accounts that report to the business credit reporting bureaus. When that’s done, you can then use the credit.

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

Vendor Credit – It Makes Sense

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

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

Uline Shipping Supplies

Uline Shipping Supplies is a true starter vendor. You can find them online at www.uline.com. They offer shipping, packing, and industrial supplies, and they report to D&B.

You have to have a D-U-N-S number. They will request 2 references and a bank reference. The first few orders might need to be paid in advance to initially get approval for Net 30 terms. Also, you may have to buy some items you don’t need.

Crown Office Supplies

Crown Office Supplies is another true starter vendor. You can find them online at https://crownofficesupplies.com. They sell a variety of office supplies and take helping clients seriously. They state, “just starting your business, or maybe have an existing business, but you have a question regarding office supplies… we are here to help!” And they report to Dun and Bradstreet, Experian, and Equifax.

There is a $99.00 yearly fee, though they do report that fee to the business credit reporting bureaus. For other purchases to report, the purchase must be at least $30.00. Terms are Net 30.

Grainger Industrial Supply

Grainger Industrial Supply is also a true starter vendor. You can find them online at www.grainger.com. They sell safety equipment, plumbing supplies, and more, and they report to D&B. You will need to have a business license, EIN, and a D-U-N-S number.

For less than a $1000 credit limit they will approve almost any person with a business license.

Accounts That Do Not Report

Non-Reporting Trade Accounts can also be helpful. While you do want trade accounts to report to at the very least one of the CRAs, a trade account which does not report can also be of some worth.

You can always ask non-reporting accounts for trade references. Additionally credit accounts of any sort ought to help you to better even out business expenditures, thereby making budgeting less complicated. These are companies like PayPal Credit, T-Mobile, and Best Buy.

Recession Downturn Credit Suite

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

Retail Credit

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

Use the company’s EIN on these credit applications. These are no personal guarantee business credit cards!

Fleet Credit

Are there more accounts reporting? Then progress to fleet credit. These are service providers such as BP and Conoco. Use this credit to purchase, fix, and take care of vehicles. Make certain to apply using the business’s EIN. These are business credit cards without personal credit. You will have start up business credit cards without personal guarantee.

Cash Credit

Have you been responsibly handling the credit you’ve gotten up to this point? Then move to more universal cash credit. These are service providers like Visa and MasterCard. Keep your SSN off these applications; use your EIN instead. These are business credit cards for new businesses without personal guarantee.

These are frequently MasterCard credit cards. If you have more trade accounts reporting, then these are feasible. Once you’re here, these become easy business credit cards no personal guarantee.

Monitor Your Business Credit in a Recession Downturn and Beyond

Know what is happening with your credit. Make certain it is being reported and fix any errors as soon as possible. Get in the practice of taking a look at credit reports. Dig into the details, not just the scores.

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

At Equifax, you can monitor your account at: www.equifax.com/business/business-credit-monitor-small-business.

Update Your Information

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

Fix Your Business Credit

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

Get your small business’s PAYDEX report at: www.dnb.com/about-us/our-data.html. Get your company’s Experian report at: www.businesscreditfacts.com/pdp.aspx?pg=SearchForm. And get your Equifax business credit report at: www.equifax.com/business/credit-information.

Disputes

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

Fixing credit report inaccuracies also means you precisely spell out any charges you challenge. Make your dispute letter as crystal clear as possible. Be specific about the concerns with your report. Use certified mail so that you will have proof that you sent in your dispute.

Dispute your or your small business’s Equifax report by following the directions here: www.equifax.com/small-business-faqs/#Dispute-FAQs.

You can dispute errors on your or your company’s Experian report by following the instructions here: www.experian.com/small-business/business-credit-information.jsp.

And D&B’s PAYDEX Customer Service telephone number is here: www.dandb.com/glossary/paydex.

A Word about Building Business Credit During a Recession Downturn

Always use credit smartly! Don’t borrow more than what you can pay off. Keep track of balances and deadlines for repayments. Paying in a timely manner and fully will do more to raise business credit scores than just about anything else.

Establishing business credit pays off. Great business credit scores help a company get loans. Your lending institution knows the business can pay its debts. They understand the small business is for real.

The business’s EIN connects to high scores and you can start to get new business credit cards without personal guarantee.

Business credit is an asset which can help your company for years to come. It’s the best way to get corporate credit cards without personal guarantee.

Keep Your Business Credit Cards Off Your Consumer Credit Reports in a Recession Downturn: Takeaways 

Learn more here and get started toward getting the best business credit cards for you needs . And make sure your business credit cards don’t report on your consumer credit reports. This is the best way to successfully apply for business credit card no personal guarantee.

As you keep going, you can qualify for business credit lines with no personal guarantee. And it can all start with small business credit cards without personal guarantee. The COVID-19 situation will not last forever – and in the meantime, you can be getting amazing credit cards for your business.

The post Get Business Credit Cards That Don’t Report on Your Consumer Credit Reports During a Recession Downturn appeared first on Credit Suite.

How to Rock your Business Bank Credit Score in a Recession

Rock Your Business Bank Credit Score in a Recession What’s your business bank credit score in a recession? Before going any further, do you know the difference between bank credit and business credit? Business credit is the full and complete amount of money that your small business can get from all manner of creditors. That … Continue reading How to Rock your Business Bank Credit Score in a Recession

How to Rock your Business Bank Credit Score in a Recession

Rock Your Business Bank Credit Score in a Recession

What’s your business bank credit score in a recession?

Before going any further, do you know the difference between bank credit and business credit? Business credit is the full and complete amount of money that your small business can get from all manner of creditors. That means the credit unions,  credit card companies, and leasing companies. And it means any credit your small business can get from suppliers, under what is called trade credit or vendor credit or trade lines. Your bank credit score, though, is a touch different.

Bank credit, on the other hand, is the full amount of borrowing capacity which a small business can get from the banking system only. Hence your bank credit score, of course, is the measurement of this capacity to borrow.

Your Business Bank Credit Score in a Recession, Explained

A small business can get more business credit rapidly, so long as it has at least one bank reference and an average daily account balance of at least $10,000 for the most recent three month time period. This set up will yield a bank rating of a Low-5. So this means it is an Adjusted Debt Balance of from $5,000 to $30,000.

A lower rating, like a High-4, or balance of $7,000 to $9,999 will not automatically reject the small business’s loan application. However, it will slow down the approval process.

Your Business Bank Credit Score in a Recession, Defined

A bank credit rating is the average minimum balance as maintained in a business bank account over a three month long period. Hence a $10,000 balance will rate as a Low-5, a $5,000 balance will rate as a Mid-4, and a $999 balance will rate as a High-3, etc.

Goals for Your Business Bank Credit Score in a Recession

A small business’s chief goal should always be to maintain a minimum Low-5 bank rating for at least three months. Hence that means  an average $10,000 balance.

This is because, without at least a Low-5 rating, the majority of banks will operate under the assumption that the business has little to no ability to repay a loan or a business line of credit.

One thing to keep in mind – you will never actually see this number. The bank will just keep this number in its back pocket.

Check out our professional research on bank ratings, the little-known reason why you will – or won’t – get a bank loan for your business during a recession.

The Bank Credit Score Rating Ranges

The numbers work out to the following ranges:

  • High-5 – account balance of $70,000-99,999
  • Mid-5 – account balance of $40,000-69,999
  • Low-5 – balance of $10,000-39,000
  • High-4 – 7,000-9,999
  • Mid-4 – $4,000-6,999
  • Low-4 – $1,000-3,999

Do not forget, your small business needs to be at the Low-5 level bank score or better.

Rocking Your Business Bank Credit Score in a Recession

It should be clear that the thrust behind bank credit scores is to show proof that your small business can pay back its financial obligations in an expeditious manner. Therefore, yes, you will need to maintain a minimum balance for at least three months. Every cycle is based on the balance rating during the previous three month period.

Business Bank Loans in a Recession Credit SuiteCongruency

It is also vital that the business owner ensures that their business bank accounts are reported exactly the same way all of their business records are, and with the exact same physical address and phone number. And it cannot be a post office box!

It is imperative that each and every credit agency and trade credit vendor, every record keeper also lists the business name and address the exact same way. No lender is going to stop to consider all of the ways that a business might be listed, when they look into the business’s creditworthiness. Therefore, if they are unable to find what they need easily, they will just deny the application.

Note: these are record keepers of financial records, income tax, web addresses and e-mail addresses, directory assistance, etc.

Congruency also matters in the event you use a fictitious name or DBA, AKA a ‘doing business as’ status.

Responsible Account Management

Plus the business must manage its bank account responsibly. This means that the small business should avoid writing non-sufficient funds (NSF) checks at all costs, because that decimates bank ratings. Non-sufficient-funds checks are something which no business can afford to let happen. It is even a good idea for the business to add overdraft protection to their bank account as soon as possible, in order to avoid NSFs.

Positive Cash Flow

Your business must show a positive cash flow. The cash coming in and leaving a company’s bank account should reflect a positive free cash flow. A positive free cash flow is the amount of revenue left over after a company has paid all of its expenses. When an account shows a positive cash flow it indicates that the business is generating more revenue than is used to run the company. That means the bank will feel that the business can pay its bills.

Consistent Deposits

Finally, understand that banks are highly motivated to lend to a business with consistent deposits. A business owner must also make regular deposits in order to maintain a positive bank rating. The business owner must make a lot of consistent deposits. And they need to be more than the withdrawals they are making, in order to have and maintain a good bank rating. If they can do that, then they will have a good bank credit score.

Check out our professional research on bank ratings, the little-known reason why you will – or won’t – get a bank loan for your business during a recession.

An Alternative to Jacking Up Your Business Bank Credit Score in a Recession

Of course we are talking about business credit building here. Business credit is an asset which can help your company in years to come.

Small business credit is credit in a small business’s name. It doesn’t tie to a business owner’s consumer credit, not even if the owner is a sole proprietor and the solitary employee of the company.

As a result, a business owner’s business and consumer credit scores can be very different.

The Benefits

Due to the fact that small business credit is distinct from consumer, it helps to protect an entrepreneur’s personal assets, in the event of a lawsuit or business insolvency.

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

Another benefit is that even startups can do this. Heading to a bank for a business loan can be a formula for frustration. But building small business credit, when done the right way, is a plan for success.

Consumer credit scores depend on payments but also various other elements like credit use percentages.

But for small business credit, the scores truly just hinge on whether a business pays its invoices punctually.

The Process

Building business credit is a process, and it does not occur without effort. A business has to actively work to build company credit.

That being said, it can be done easily and quickly, and it is much faster than establishing consumer credit scores.

Merchants are a big component of this process.

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

Company Fundability

A small business has to be fundable to lenders and merchants.

For this reason, a small business will need a professional-looking web site and e-mail address. And it needs to have website hosting bought from a merchant such as GoDaddy.

In addition, business telephone and fax numbers must have a listing on ListYourself.net.

Additionally, the company phone number should be toll-free (800 exchange or the like).

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

Licenses

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

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

Check out our professional research on bank ratings, the little-known reason why you will – or won’t – get a bank loan for your business during a recession.

Dealing with the IRS

Visit the IRS website and acquire an EIN for the business. They’re totally free. Select a business entity like corporation, LLC, etc.

A small business can get started as a sole proprietor. But they will most likely want to change to a variety of corporation or an LLC.

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

A business entity will matter when it pertains to taxes and liability in case of a lawsuit. A sole proprietorship means the entrepreneur is it when it comes to liability and tax obligations. No one else is responsible.

Sole Proprietors Take Note

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

If you do not, then your personal name is the same as the company name. Consequently, you can end up being directly liable for all company debts.

Additionally, per the IRS, with this arrangement there is a 1 in 7 possibility of an IRS audit. There is a 1 in 50 chance for corporations! Prevent confusion and substantially decrease the odds of an IRS audit simultaneously.

But treat any DBA filing as a steppingstone to incorporating.

Monitor Your Business Credit

Know what is happening with your credit. Make sure it is being reported and deal with any errors ASAP. Get in the habit of checking credit reports. Dig into the particulars, not just the scores.

We can help you monitor business credit at Experian and D&B for 90% less than it would cost you at the CRAs.

Update Your Data

Update the information if there are inaccuracies or the info is incomplete.

Fix Your Business Credit

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

Disputes

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

Fixing credit report errors also means you precisely spell out any charges you contest. Make your dispute letter as crystal clear as possible. Be specific about the concerns with your report. Use certified mail so that you will have proof that you sent in your dispute.

A Word about Building Business Credit

Always use credit responsibly! Never borrow more than what you can pay off. Keep track of balances and deadlines for payments. Paying off promptly and in full will do more to raise business credit scores than just about anything else.

Building company credit pays. Excellent business credit scores help a company get loans. Your lending institution knows the small business can pay its debts. They understand the company is authentic.

The company’s EIN links to high scores and your business bank credit score in a recession will not matter quite so much.

Takeaways for How to Rock Your Business Bank Credit Score in a Recession

Start with consistent deposits, even if you cannot make terribly high ones. Just, start to become dependable in how you add money to your business’s bank account. Whether you deposit every week or every other week, etc. is your own choice. Opt for whatever you are most likely to be able to do.

This can also help you with both positive cash flow and responsible account management. Hence you get a lot of bang for your buck here – quite literally.

The other fairly simple task you can undertake is to make sure your business address and other particulars are perfectly congruent across the board. This means, for example, that if you wrote Ltd. on your D&B D-U-N-S number application, but Limited when you applied for a business bank account, you will need to take measures to get these two areas in sync.

Generally, the easiest way to do this is by going through everything and simply copying and pasting your information.

The post How to Rock your Business Bank Credit Score in a Recession appeared first on Credit Suite.

Get a Balance Transfer Recession Business Credit Card

The economy is changing. But you can still get a balance transfer recession business credit card.

You Can Get a Balance Transfer Recession Business Credit Card Today

Do you need a balance transfer recession business credit card? For that and any other sort of reward, we’ve got you covered.

Per the SBA, small business credit card limits are a whopping 10 – 100 times that of consumer cards!

This shows you can get a lot more money with small business credit. And it also shows you can have personal credit cards at retailers. So you would now have an additional card at the same stores for your company.

And you will not need collateral, cash flow, or financial data in order to get small business credit.

Credit Card Benefits

Perks vary. So, make sure to choose the benefit you prefer from this array of alternatives. Because you may find something you like even better than a balance transfer recession business credit card.

Get a Reliable Low APR/Balance Transfer Recession Business Credit Card for Lavish Travel Points

Flat-rate Travel Rewards

Capital One® Spark® Miles for Business

Check out the Capital One® Spark® Miles for Business. It has an introductory yearly fee of $0 for the first year, which after that rises to $95. The regular APR is 18.49%, variable due to the prime rate. There is no introductory annual percentage rate. Pay no transfer fees. Late fees go up to $39.

This card is fantastic for travel if your expenses don’t fall under basic bonus categories. You can get unlimited double miles on all purchases, without any limits. Get 5x miles on rental cars and hotels if you book with Capital One Travel.

Get an initial bonus of 50,000 miles. That’s the same as $500 in travel. But you just get it if you spend $4,500 in the initial 3 months from account opening. There is no foreign transaction fee. You will need a good to exceptional FICO score to qualify.

Find it here: https://www.capitalone.com/small-business/credit-cards/spark-miles/

Bonus Travel Categories with a Sign-Up Offer

Ink Business Preferred℠ Credit Card

For a fantastic sign-up offer and bonus categories, take a look at the Ink Business Preferred℠ Credit Card.

Pay an annual fee of $95. Regular APR is 17.49 – 22.49%, variable. There is no introductory APR offer.

Get 100,000 bonus points after spending $15,000 in the initial 3 months after account opening. This works out to $1,250 towards travel rewards if you redeem via Chase Ultimate Rewards.

Get 3 points per dollar of the first $150,000 you spend with this card. So this is for purchases on travel, shipping, internet, cable, and phone services. Plus it includes advertising purchases made with social media sites and search engines each account anniversary year.

You can get 25% more in travel redemption when you redeem for travel via Chase Ultimate Rewards. You will need a great to superb FICO score to qualify.

Find it here: https://creditcards.chase.com/business-credit-cards/ink/business-preferred

No Yearly Fee

Bank of America® Business Advantage Travel Rewards World MasterCard® credit card

For no yearly fee while still getting travel rewards, take a look at this card from Bank of America. It has no annual fee and a 0% introductory APR for purchases during the initial 9 billing cycles. Afterwards, its regular APR is 13.74 – 23.74% variable.

You can get 30,000 bonus points when you make at least $3,000 in net purchases. So this is within 90 days of your account opening. You can redeem these points for a $300 statement credit towards travel purchases.

Get unlimited 1.5 points for each $1 you spend on all purchases, everywhere, every time. And this is despite how much you spend.

Also get 3 points per every dollar spent when you book your travel (car, hotel, airline) via the Bank of America® Travel Center. There is no limit to the number of points you can get and points don’t expire.

You will need outstanding credit to get this one (as in, 700s or better).

Find it here: https://www.bankofamerica.com/smallbusiness/credit-cards/products/travel-rewards-business-credit-card/

Hotel Credit Card

Marriott Bonvoy Business™ American Express® Card

Have a look at the Marriott Bonvoy Business™ Card from American Express. It has a yearly fee of $125. There is no introductory APR offer. The regular APR is a variable 17.24 – 26.24%. You will need good to outstanding credit to get this card.

Points

You can get 75,000 Marriott Bonvoy points after using your card to make purchases of $3,000 in the first 3 months. Get 6x the points for eligible purchases at participating Marriott Bonvoy hotels. You can get 4x the points at US restaurants and gas stations. And you can get 4x the points on wireless telephone services bought straight from American service providers and on American purchases for shipping.

Get double points on all other eligible purchases.

Rewards

Also, you get a free night every year after your card anniversary. And you can get an additional free night after you spend $60,000 on your card in a calendar year.

You get Marriott Bonvoy Silver Elite status with your Card. Plus, spend $35,000 on eligible purchases in a calendar year and earn an upgrade to Marriott Bonvoy Gold Elite status through the end of the next calendar year.

Also, each calendar year you can get credit for 15 nights towards the next level of Marriott Bonvoy Elite status.

Find it here: https://creditcard.americanexpress.com/d/bonvoy-business/

Trustworthy Credit Cards for Fair to Poor Credit, Not Calling for a Personal Guarantee

Get a great alternative to a balance transfer recession business credit card.

Brex Card for Startups

Have a look at the Brex Card for Startups. It has no yearly fee.

You will not need to supply your Social Security number to apply. And you will not need to supply a personal guarantee. They will take your EIN.

Nonetheless, they do not accept every industry.

Likewise, there are some industries they will not work with, as well as others where they want more documentation. For a list, go here: https://brex.com/legal/prohibited_activities/.

To determine creditworthiness, Brex checks a corporation’s cash balance, spending patterns, and investors.

You can get 7x points on rideshare. Get 4x on Brex Travel. Likewise, get triple points on restaurants. And get double points on recurring software payments. Get 1x points on everything else.

You can have poor credit scores (even a 300 FICO) to qualify.

Find it here: https://brex.com/lp/startups-higher-limits/

Secure Corporate Credit Cards for Fair Credit Scores

Grab another terrific alternative to a balance transfer recession business credit card.

Capital One® Spark® Classic for Business

Check out the Capital One® Spark® Classic for Business. It has no annual fee. There is no introductory APR offer. The regular APR is a variable 24.49%. You can earn unlimited 1% cash back on every purchase for your business, without any minimum to redeem.

While this card is within reach if you have fair credit, beware of the APR. Yet if you can pay in a timely manner, and in full, then it’s a bargain.

Find it here: https://www.capitalone.com/small-business/credit-cards/spark-classic/

Balance Transfer Recession Business Credit Suite

Establish business credit fast and beat the recession with our research-backed guide to 12 business credit cards and lines. Get a balance transfer recession business credit card now!

Flexible Financing Credit Cards – Check Out Your Alternatives!

The Plum Card® from American Express

Check out the Plum Card® from American Express. It has an introductory yearly fee of $0 for the first year. Afterwards, pay $250 each year.

Get a 1.5% early pay discount cash back bonus when you pay within 10 days. You can take up to 60 days to pay without interest when you pay the minimum due by the payment due date.

You will need excellent to superb credit scores to qualify.

Find it here: https://creditcard.americanexpress.com/d/the-plum-card-business-charge-card/

Outstanding Company Credit Cards with No Annual Fee

No Annual Fee/Flat Rate Cash Back

Ink Business Unlimited℠ Credit Card

Check out the Ink Business Unlimited℠ Credit Card. Past no annual fee, get an introductory 0% APR for the initial twelve months. Afterwards, the APR is a variable 14.74 – 20.74%.

You can get unlimited 1.5% Cash Back rewards on every purchase made for your business. And get $500 bonus cash back after spending $3,000 in the first 3 months from account opening. You can redeem your rewards for cash back, gift cards, travel and more via Chase Ultimate Rewards®. You will need outstanding credit to receive this card.

Find it here: https://creditcards.chase.com/business-credit-cards/ink/unlimited

Balance Transfer Recession Business Credit Suite

Establish business credit fast and beat the recession with our research-backed guide to 12 business credit cards and lines. Get a balance transfer recession business credit card now!

Company Credit Cards with a 0% Introductory APR – Pay Nothing!

Blue Business® Plus Credit Card from American Express

Have a look at the Blue Business® Plus Credit Card from American Express. It has no yearly fee. There is a 0% introductory APR for the first 12 months. Afterwards, the APR is a variable 14.74 – 20.74%.

Get double Membership Rewards® points on day to day company purchases like office supplies or client dinners for the initial $50,000 spent per year. Get 1 point per dollar afterwards.

You will need good to exceptional credit scores to qualify.

Find it here: https://creditcard.americanexpress.com/d/bluebusinessplus-credit-card/

American Express® Blue Business Cash Card

Also have a look at the American Express® Blue Business Cash Card. Keep in mind: the American Express® Blue Business Cash Card is identical to the Blue Business® Plus Credit Card from American Express. Yet its rewards are in cash instead of points.

Get 2% cash back on all eligible purchases on up to $50,000 per calendar year. Then get 1%.

It has no annual fee. There is a 0% introductory APR for the initial twelve months. After that, the APR is a variable 14.74 – 20.74%.

You will need great to exceptional credit to qualify.

Find it here: https://creditcard.americanexpress.com/d/business-bluecash-credit-card/

Balance Transfer Recession Business Credit Suite

Establish business credit fast and beat the recession with our research-backed guide to 12 business credit cards and lines. Get a balance transfer recession business credit card now!

The Perfect Balance Transfer Recession Business Credit Card for You

Your absolute best balance transfer recession business credit card will hinge on your credit history and scores.

Only you can choose which features you want and need. So make sure to do your homework. What is excellent for you could be disastrous for another person.

And, as always, make sure to establish credit in the recommended order for the best, fastest benefits.

The economy will change again, and you will be able to get a balance transfer recession business credit card even more easily.

 

 

 

 

The post Get a Balance Transfer Recession Business Credit Card appeared first on Credit Suite.

Get a Business Credit Report in a Recession

Get a business credit report in a recession and stay on top of your scores.

Here’s How to Get a Business Credit Report in a Recession

You got this: we show you exactly how to get your business credit report in a recession.

Get a Business Credit Report in a Recession: Recession Funding

In a recession, inevitably banks and other credit issuers get more conservative. So it pays to get your business credit report in a recession so you can pounce on any mistakes immediately.

Your best bet as a company owner is to stay on top of every business credit report from PAYDEX, Equifax, and Experian.

There are three big credit reporting agencies for companies and you really should check all three of them frequently. This is because they use moderately different yardsticks. Hence moving the needle for one can move the needle for both of the others. Although maybe not as much.

Do not permit your business credit scores slide, as you have to catch any mistakes as fast as you can. Plus, you need to identify anything which is dragging your scores down. And then take remedial measures. You can get a business credit report in a recession easily and stay on top of all three scores by following a few straightforward steps.

Get a Business Credit Report in a Recession: D&B (PAYDEX) Business Credit Report

Dun & Bradstreet’s PAYDEX score of your company can end up being one of the primary reasons that your business receives credit in any manner.

A Dun & Bradstreet Report (also known as a D&B Report) is a database-generated report. The business services giant produces such a report in order to assist its clients in making decisions regarding new credit applications.

The primary reason for a client using this kind of a report is to engage in credit risk monitoring of vendors, suppliers, and business partners. This helps companies make informed business credit determinations and avoid bad debt.

Dun & Bradstreet takes several factors into account in generating such a report. These include a predictor of payment delinquency; how financially stressed a company is compared to comparable businesses; an evaluation of supplier risk; credit limit recommendation; D&B rating; and PAYDEX score. Let’s consider all these factors in turn.

Delinquency Predictor

Dun & Bradstreet uses predictive models to ascertain how likely a company is to be late with its payments. Predictive scoring is a means of using historical information to attempt to predict future outcomes. It entails identifying the risks inherent in a future decision. It does this by examining the relationship between historical information and the future event.

This represents an objective and statistically derived counterpart to subjective and intuitive assessments. Such scoring allows a business to rank and order accounts based upon the probability of an event occurring, such as delinquent payments. However, note that Predictive Scoring only represents a statistical probability, and not a guarantee.

PAYDEX Score

A PAYDEX Score is Dun & Bradstreet’s proprietary dollar-weighted numerical indicator of how a firm has paid its bills over the past year. The score is based upon trade experiences reported to Dun & Bradstreet by various vendors. In addition, the D&B PAYDEX Score ranges from 1 to 100; higher scores indicate a better payment performance.

Learn more here and get started toward building business credit attached to your company’s EIN and not your SSN. Get money even in a recession!

Monitoring PAYDEX

D & B offers Credit Signal, which is a means to keep track of your credit score by having the business credit report come immediately to you, for a cost. You may discover the expense is well worth it in order to avoid the frustrations that can emerge from letting this score slip. And you will not need to produce and handle the organizing and reminders you might need to stay up to date with if you don’t use it.

Business Credit Report in a Recession Credit Suite

Alternatives to Credit Signal

Don’t wish to make use of Credit Signal? Not a problem, as you can obtain your PAYDEX report through D & B and, if need be, you can get in touch with their Customer Service department (this department exists as a section of Dun & Bradstreet itself).

In addition, in order to review your PAYDEX report, check out what D & B provides, which is a specimen report and even some higher level tips in the way to analyze it.

D&B Data

Any report is only as good as the data it comes from. Dun & Bradstreet’s database contains over 250 million firms spanning the globe, which includes around 120 million active companies and about 130 million businesses which are out of business but kept for historical purposes.

D&B constantly gathers data and works to improve its analyses to ensure the greatest degree of accuracy possible.

Get a Business Credit Report in a Recession: Equifax Business Credit Report

Equifax, one of the large credit reporting bureaus, furnishes a risk monitoring service which is more convenient as it allows for a business credit report to come directly to you.

If you don’t want to purchase continuing reports, you can instead order your company’s Equifax report.

Additionally, if you have to question your small business’s Equifax report, you can do so by following the information on their website.

You can learn how to go over your Equifax report by checking out a specimen of their reports.

Improve Your Equifax Report

Now that you know what enters into it, you can see that some of the more crucial pieces of information Equifax looks into are public records, credit usage, and how you take care of your financial and nonfinancial accounts.

Start getting rid of your debts as quickly as possible and not going delinquent. And keep your credit utilization within reason. Less than 30% of your overall available credit is best. And start staying away from overdue payments. Then you should have the ability to build up your Equifax score.

Learn more here and get started toward building business credit attached to your company’s EIN and not your SSN. Get money even in a recession!

Get a Business Credit Report in a Recession: Experian Business Credit Report

Experian, one more big credit reporting firm, also offers a way having their business credit report sent to you for a fee. As a result you can keep an eye on your Experian small business credit score here and the setup is simple.

However, if you prefer to not get continuing reports (and pay for them), then you can order a single Experian report for your firm on their site.

Business Credit Report Score Improvement Tips

Experian provides a handy list of ways to improve your own, specific report.

You can get your company’s real Experian report and can dispute any errors on your company’s Experian report by following the directions on their website.

Now that you know what goes into it, you can see what some of the more important pieces of data Experian looks into are. These include payment history and credit utilization. And they also include the amount of time in business. Or at least they show the amount of time your company has had an Experian listing.

Beyond anything else, improving your payment history will increase your Experian credit scores.

Keep your credit utilization within reason. So this is because less than 30% of your total available credit is best. Clear your debts as quickly as you are able to. And don’t go delinquent. Also, avoid any late payments. Then, you should be able to improve your Experian score over time.

Likewise, if there are any problems or matters of contention, you can question any errors on your business’s Experian report if you follow the directions on their web site.

Find out about assessing your Experian report by assessing a sample Experian company credit report.

Get a Business Credit Report in a Recession: Monitoring Any Business Credit Report For Less

Know what is happening with your credit. Make sure it is being reported and deal with any errors ASAP. Get in the habit of taking a look at credit reports. Dig into the details, not just the scores.

We can help you monitor business credit at Experian and D&B for 90% less than it would cost you at the CRAs.

At Equifax, you can monitor your account at: www.equifax.com/business/business-credit-monitor-small-business.

Update Your Record

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

Get a Business Credit Report in a Recession: Fix Your Business Credit

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

Get your business’s PAYDEX report at: www.dnb.com/about-us/our-data.html. Get your company’s Experian report at: www.businesscreditfacts.com/pdp.aspx?pg=SearchForm. And get your Equifax business credit report at: www.equifax.com/business/credit-information.

Disputes

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

Fixing credit report errors also means you specifically itemize any charges you dispute. Make your dispute letter as crystal clear as possible. Be specific about the issues with your report. Use certified mail so that you will have proof that you mailed in your dispute.

Dispute your or your small business’s Equifax report by following the instructions here: www.equifax.com/small-business-faqs/#Dispute-FAQs.

You can dispute errors on your or your business’s Experian report by following the instructions here: www.experian.com/small-business/business-credit-information.jsp.

And D&B’s PAYDEX Customer Service contact number is here: www.dandb.com/glossary/paydex.

Learn more here and get started toward building business credit attached to your company’s EIN and not your SSN. Get money even in a recession!

Get a Business Credit Report in a Recession: Takeaways for How to Get a Business Credit Report

At times, it pays to hand over a few dollars to ensure you get a business credit report in a recession consistently. It’s a lot less troublesome than to have to remember to do this.

And you’ll probably look at these reports more thoroughly, as they come at a price tag.

Continue track and make use of the tools that these credit reporting companies provide, and make your life simpler. After all; you’ve already got enough on your plate.

Because of recent data breaches, there are even more reasons to assess your business and personal credit reports and be vigilant about any errors you find. In a recession, you need the highest business credit scores you can get. When you get a business credit report in a recession, you’re doing just that.

The post Get a Business Credit Report in a Recession appeared first on Credit Suite.

How to Use Crowdfunding to Start a Business in a Recession – Amazing!

The Fantastic Way to Use Crowdfunding to Start a Business in a Recession and Get the Financing You Need – Even if the Economy Tanks

Crowdfunding has become all the rage and it’s not surprising. It’s (generally) free money which you do not have to repay. And you can get these funds without needing to give up any ownership or control over your small business. Additionally it can help you to determine the popularity of an idea or a prototype or invention. Because there is no sense in continuing if there is no interest in your design. Still, a lot of entrepreneurs can use crowdfunding to start a business in a recession.

You will need to make a lot of choices before you even launch a startup crowdfunding campaign. And this goes double in an economic downturn.

Use Crowdfunding to Start a Business in a Recession: How Much?

Your very first decision should be: just how much do I need to crowdfund? If you need $1 million, you are going to need to crowdfund more than that. Why? Because that is how crowdfunding platforms make their money– they take a percentage of any money you can raise. Thus, you will need to take that into consideration. Crowdfunding percent charges vary from 4% to 10%.

Use Crowdfunding to Start a Business in a Recession

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

Use Crowdfunding to Start a Business in a Recession: Will I Succeed?

Another decision has to do with how successful you think your campaign will be. If you are extremely confident that you will be 100% funded at the end of your campaign, then traditional funding is for you. If you are not sure, then try GoFundMe’s flexible funding.

With flexible funding, you, the campaign runner, can keep your donations even if your campaign falls short. However, for this benefit, you will have to pay a higher fee to GoFundMe. Other crowdfunding platforms like Kickstarter don’t offer this option.

Use Crowdfunding to Start a Business in a Recession: What Should I Offer for Perks?

Yes, you will have to offer perks to your donors. Perks can take many forms– buttons, tees, book marks – every one of those are possible tangible perks. Consider a perk format which can sync with your business. If you sell homemade jam, then perhaps create a unique flavor just for the campaign, and offer bigger and bigger-sized jars depending on donation amount.

If you are a horseback riding stable, offer a complimentary lesson or a postcard with a favorite horse’s image on it, or something like that. Does your startup flip houses? Then consider offering a coupon to a neighborhood home supply company (work with them beforehand, of course) or the like.

Pro Tip on Perks

Physical perks are a pain! A lot of people love them, and they will stand out. However, you also have to ship physical perks. International shipping is extremely expensive, even for small items. So if you offer physical perks, specify whether you will allow international donor addresses.

Even if everything has to be shipped in the US, you are still left with working with a data base of names and addresses (a few of which might have misprints or be incomplete) and usually a range of available perks. Did Jane want the stuffed teddy bear or the book mark? Did Alan want the pennant or the tee shirt? Do Jane and Alan live at the same address so perhaps you could mail their perks out together? What if a perk is lost or broken in the mail? And what if it injures someone?

Because of this, if you can do it, try for digital perks. For a house flipping startup, you might record video footage about home design or repair. For a pastry shop, you could offer downloads of recipes. And for a health club, maybe offer digital coupons for a free month of membership.

Use Crowdfunding to Start a Business in a Recession

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

Use Crowdfunding to Start a Business in a Recession: Your Campaign

Your campaign’s success is far from assured. However, you can capitalize on a few proven approaches. First off consider these four feelings that you need to engender in donors. Use one or more of them as the focal point of your campaign as a starting point.

Urgency

The first two and last two days of a crowdfunding campaign are pretty much always the days with the biggest payoffs. Often, lengthening the campaign doesn’t make you significantly more money. So why not open a campaign for only a week? Don’t let donors feel they can contribute any old time they feel like it.

Scarcity

If you have thousands of something or other to supply as a perk, it will not be as desirable. If you only have a few copies of a specific perk, that will instill a feeling in some potential donors that they just have to have it. Do this with your larger donation levels only. Therefore, you might want to establish a perk/donation level system similar to this:

Donation Level Number of Perks
Lowest 1,000
Second lowest 500 (reward also incorporates lowest level reward)
Second highest 50 (reward also includes two lower level rewards)
Highest 10 (reward also incorporates all other levels’ rewards)

Remember: a lot of variety in physical perks will make fulfillment a lot harder, so don’t work with greater than maybe five separate varieties of physical perks– and even that is pushing it.

Novelty

If you are offering the identical thing as a thousand other places, no one will want to make a donation. Your widget needs to be lighter, hotter, cheaper, or more resilient. Your food should be reduced in calories or higher in nutrition or better-tasting. Or your professional services need to be delivered better or quicker, by friendlier and more skilled employees. And it should come with a money back guarantee your competition does not provide.

Cool factor

Is your product a work of art? Is it a new, gadget-like innovation? Then it may have a coolness aspect which you can construct your campaign around. But don’t be discouraged if it isn’t! These days, some of the most unforgettable advertising campaigns are based around a product the majority of people found uninspiring not ten years ago– insurance.

Use Crowdfunding to Start a Business in a Recession: Crowdfunding Strategy

A few words on strategy:

Your Pitch Video Will Need to be Great

Use an expert to film it and develop the script. Are you unable to pay for experts? Then try schools, both pupils and educators. Your script doesn’t need to be verbatim but you should have points you wish to make and not babble. Write a script and stay with it. This is not the right time to ad-lib.

If You Have Tangible Evidence of Your Project, then Make Sure to Present it

Put it in your campaign video and on your campaign page. This means a picture of your health spa’s sign or a short video clip of your prototype robot. A number of people are naturally doubtful about crowdfunding. An image and a tangible thing will go a long way to assuring them that your project isn’t vaporware.

Manners Matter

Say please, thank you, and you’re welcome to everyone. Use these magic words in your pitch and in your communications with your donors, even in the cover letters you deliver with your perks (even internet perks can include a cover email message). You do not have to be servile, but you absolutely must be diplomatic.

In particular, be courteous when you want to use crowdfunding to start a business in a recession. After all, you have no idea what people may be going through.

Don’t be Greedy!

If you need $250,000 for your campaign, but you call for $1,000,000, that will not do anyone any good. You’ll just look like you want to leech off other peoples’ generosity. Instead, explain your expenses as plainly and transparently as possible.

And incidentally, if you misuse your funding, you may end up in an unpleasant meeting with your state’s attorney general. So be truthful!

Use Crowdfunding to Start a Business in a Recession

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

Your Stretch Goals Should be a Combination of Readily Achievable and Pie in the Sky

If you are crowdfunding for $100,000, a reasonably easy to attain stretch goal is $125,000. Pie in the sky going to be more like $300,000.

Make it abundantly clear what you will do with any added money if you are fortunate enough to get it. Will you buy the property your startup is in? Employ five more people? Replace your old equipment? Launch a brand-new market on another continent? Let your donors know what you are pursuing, so they can dream with you.

Be Gracious if Your Campaign Fails

Even if you use GoFundMe’s flexible funding option, you still may not receive enough to make an appreciable dent in your funding requirements. If you wanted $100,000 and you just got $500, your best option is to simply give back the money.

If you nearly made it with $95,000, then thank everybody who donated. And see what you can possibly do, although there’s a deficiency. And let them know what you are doing! Maybe you’ll purchase your building next year, or hire four people rather than five.

Once more; give your donors a stake in and an inside look at your startup. This will enable them to feel invested. And they may just opt to make up the deficiency themselves. Even if your crowdfunding campaign concludes does not mean a donor cannot send a check or buy extra goods or services. If that comes about, then politeness is essential.

Start a Business in a Recession with Crowdfunding Credit Suite

Use Crowdfunding to Start a Business in a Recession

Line up the Most Significant and Most Dependable Donors You Can Before You Start

Tell your mother or your brother in law or your former high school soccer coach to postpone on handing over their $1,000 or $10,000 donation till you start your campaign.

And ask them (nicely!) to release their donation at a very precise time. Which time? The initial or final day of the campaign (split the funds as well as you can. If the split isn’t around half and half, then request the larger chunk of donations to come on the very last day of the campaign.

Make the most of the novelty factor of the first day of the campaign, or the urgency factor of the very last. Just like a busker with a couple of her own bucks in her hat, to motivate people to toss in a few bucks for a song, you want your biggest donors to demonstrate to other donors that they believe in you and in your project. And you also want them to suggest your other donors that they had best get in on investing in your startup before the opportunity ends.

Share Your Campaign on Social Media

And ask your family and friends to do so, too. Tweet the link. Incorporate it as a Facebook status. Make it a Tumblr post or a snap on Snapchat or create a blog post about it. Ask your network to publicize the link.

The most effective technique to get your network to help you out is by assisting them in return. If your relative’s rock band is on Facebook, share their page, or tweet about it.

Be a collaborative member of your own personal network. And then your contacts will be more likely to help you out when you ask.

And rerun these social media postings. Considering time zones and our all-too hectic lives, people may not see your message the first time around. Mix it up and deliver it at odd hours (you can oftentimes use scheduling software such as HootSuite for this), including what is the middle of the night where you live.

Use Crowdfunding to Start a Business in a Recession: Pay it Forward

Finally, if your small business crowdfunding campaign succeeds, think about donating a few dollars to others’ campaigns. Because your business goodwill and a good reputation are priceless. And you never know when the economic pendulum will swing the other way.

The post How to Use Crowdfunding to Start a Business in a Recession – Amazing! appeared first on Credit Suite.

Get Gas Cards for Small Business During the US Recession

The Very Best Gas Cards for Small Business During the US Recession

As the COVID-19 situation worsened, we took a look at a number of gas cards for small business and did the research for you. US recession or no US recession, you’ve got to fill your tank! So, here are our preferences.

Per the SBA, business credit card limits are a whopping 10 – 100 times that of personal credit cards! This demonstrates you can get a lot more money with small business credit. 

Small business credit is independent of the economy. Coronavirus or not, these credit cards are out there – but be aware that, as the situation drags on, some of the requirements could change. Always be sure to check the links directly to be sure to get 100% up to date information straight from the source.

And you will not need collateral, cash flow, or financials in order to get business credit.

The Benefits of Gas Cards for Small Business

Benefits can vary. So, make sure to select the benefit you like from this choice of options.

Build Business Credit During the US Recession with Excellent Gas Cards Via Our Business Credit Builder

Our Business Credit Builder is full of amazing business credit cards and that includes gas cards!

76

So, check out this card from 76. It reports to Dun & Bradstreet, Experian, and Equifax.

To Qualify:

  • Entity in good standing with Secretary of State
  • EIN number with IRS
  • Business address- matching everywhere.
  • D-U-N-S number
  • Licenses for your business (if applicable)
  • And a Company Bank account
  • If you’re not approved based on business credit history or been in business a 1 year, then a $500 deposit is needed or a Personal Guarantee (PG)

To Apply: Online or over the phone

Terms: Net 22

Get it here: 76fleet.com 

Marathon

Check out this great card from Marathon. It reports to Dun & Bradstreet, Experian, and Equifax.

To Qualify:

  • Entity in good standing with Secretary of State
  • EIN number with IRS
  • Business address- matching everywhere.
  • D-U-N-S number
  • Licenses for your business (if applicable)
  • Company Bank account
  • You can give a $500 deposit instead of using a personal guarantee if in business less than a year.

To Apply: Online 

Terms: Net 22

Get it here: marathonbrand.com 

Wex Fleet Card

And check out the Wex Fleet Card. It reports to Dun & Bradstreet, Experian, and Equifax.

To Qualify:

  • Entity in good standing with Secretary of State
  • EIN number with IRS
  • Business address- matching everywhere.
  • D-U-N-S number
  • Licenses for your business (if applicable)
  • Business Bank account
  • Business Phone Number Listed in 411
  • If you’re not approved based on business credit history or been in business a 1 year, then a $500 deposit is needed or a Personal Guarantee (PG)

To Apply: Online or over the phone

Get it here: onlineservices.secure.force.com/creditapplication/WexBOCA?pgm=WEXFleetUniversal&cc=BCOMPARE&lc=bcompare 

Terms:  Net 22 but can be extended to Net 30

Terrific Cards for Cash Back (A Supplement to Gas Cards in the US Recession)

Flat-Rate Rewards

Capital One ® Spark® Cash for Business 

Check out the Capital One® Spark® Cash for Business. It has an introductory $0 annual fee for the initial year. After that, this card costs $95 per year. There is no introductory APR offer. The regular APR is a variable 18.49%.

You can get a $500 one-time cash bonus after spending $4,000 in the first three months from account opening. Get unlimited 2% cash back. Redeem any time without minimums.

You will need good to superb credit to qualify.

Find it here: capitalone.com/small-business/credit-cards/spark-cash

US recession Credit Suite

Check out our Hybrid Credit Line funding. It’s a great complement to the best gas cards for small business during the US recession – and more!

Flat-Rate Rewards and No Yearly Cost

Discover it® Business Card

Check out the Discover it® Business Card. It has no annual fee. There is an introductory APR of 0% on purchases for one year. After that the regular APR is a variable 14.49 – 22.49%.

Get unlimited 1.5% cash back on all purchases, with no category restrictions or bonuses. They double the 1.5% Cashback Match™ at the end of the first year. There is no minimal spend requirement.

You can download transactions| easily to Quicken, QuickBooks, and Excel. Keep in mind: you will need great to superb credit to get approval for this card.

discover.com/credit-cards/business

Bonus Categories

Ink Business Cash℠ Credit Card

Have a look at the Ink Business Cash℠ Credit Card. It has no annual fee. There is a 0% introductory APR for the first 12 months. After that, the APR is a variable 14.74 – 20.74%. You can get a $500 one-time cash bonus after spending $3,000 in the initial three months from account opening.

You can get 5% cash back on the initial $25,000 spent in combined purchases at office supply stores and on web, cable and phone services each account anniversary year. 

Get 2% cash back on the first $25,000 spent in combined purchases at gas stations and restaurants each account anniversary year. Earn 1% cash back on all other purchases. There is no limit to the amount you can get.

You will need superb credit scores to qualify for this card.

Find it here: creditcards.chase.com/business-credit-cards/ink/cash?iCELL=61GF 

Boosted Cash Back Categories

Bank of America® Business Advantage Cash Rewards MasterCard® credit card

Have a look at the Bank of America® Business Advantage Cash Rewards MasterCard® credit card. Get an 0% introductory APR for the first 9 billing cycles of the account. After that, the APR is 13.74% – 23.74% variable. There is no yearly fee. You can get a $300 statement credit offer.

Get 3% cash back in the category of your choice. So these are gasoline stations (default), office supply stores, travel, TV/telecom & wireless, computer services or business consulting services. Get 2% cash back on dining. So this is for the first $50,000 in combined choice category/dining purchases each calendar year. After that get 1% after, with no limits.

You will need superb credit scores to qualify.

Find it here: promo.bankofamerica.com/smallbusinesscards2 

We also found cards which give bonuses for auto rental, because you might not be driving your own car when on business.

Company Credit Cards for Travel Points (Another Addition to Gas Cards in the US Recession)

Flat-rate Travel Rewards

Capital One® Spark® Miles for Business

Have a look at the Capital One® Spark® Miles for Business. It has an introductory yearly fee of $0 for the first year, which then rises to $95. The regular APR is 18.49%, variable due to the prime rate. There is no introductory annual percentage rate. Pay no transfer fees. Late fees go up to $39.

This card is excellent for travel if your expenses don’t fall into typical bonus categories. You can get unlimited double miles on all purchases, with no limits. Get 5x miles on rental cars and hotels if you book via Capital One Travel.

Get an initial bonus of 50,000 miles. That’s the same as $500 in travel. But you only get it if you spend $4,500 in the first 3 months from account opening. There is no foreign transaction fee. You will need a good to exceptional FICO score to qualify.

Find it here: capitalone.com/small-business/credit-cards/spark-miles 

Bonus Travel Categories with a Sign-Up Offer

Ink Business Preferred℠ Credit Card

For an excellent sign-up offer and bonus categories, check out the Ink Business Preferred℠ Credit Card. 

Pay a yearly fee of $95. Regular APR is 17.49 – 22.49%, variable. There is no introductory APR offer.

Get 100,000 bonus points after spending $15,000 in the initial three months after account opening. This works out to $1,250 towards travel rewards if you redeem with Chase Ultimate Rewards.

Get 3 points per dollar of the first $150,000 you spend with this card. So this is for purchases on travel, shipping, internet, cable, and phone services. Plus it includes advertising purchases made with social media sites and search engines each account anniversary year.

You can get 25% more in travel redemption when you redeem for travel using Chase Ultimate Rewards. You will need a good to superb FICO score to qualify.

Find it here: creditcards.chase.com/business-credit-cards/ink/business-preferred 

No Yearly Fee

Bank of America® Business Advantage Travel Rewards World MasterCard® credit card

For no yearly fee while still getting travel rewards, take a look at this card from Bank of America. It has no yearly fee and a 0% introductory APR for purchases during the initial nine billing cycles. After that, its regular APR is 13.74 – 23.74% variable.

You can get 30,000 bonus points when you make a minimum of $3,000 in net purchases. So this is within 90 days of your account opening. You can redeem these points for a $300 statement credit towards travel purchases.

Earn unlimited 1.5 points for each $1 you spend on all purchases, everywhere, every time. And this is no matter how much you spend.

Likewise earn 3 points per every dollar spent when you schedule your travel (car, hotel, airline) through the Bank of America® Travel Center. There is no limit to the number of points you can earn and points do not expire.

You will need excellent credit scores to get this one (as in, 700s or better).

Find it here: bankofamerica.com/smallbusiness/credit-cards/products/travel-rewards-business-credit-card

Hotel Credit Card

Marriott Bonvoy Business™ American Express® Card

Have a look at the Marriott Bonvoy Business™ Card from American Express. It has an annual fee of $125. There is no introductory APR offer. The regular APR is a variable 17.24 – 26.24%. You will need great to superb credit scores to get this card.

Points

You can earn 75,000 Marriott Bonvoy points after using your card to make purchases of $3,000 in the initial three months. Get 6x the points for qualified purchases at participating Marriott Bonvoy hotels. You can get 4x the points at US restaurants and filling stations. And you can get 4x the points on wireless telephone services bought directly from American service providers and on American purchases for shipping.

Get double points on all other eligible purchases.

Rewards

Also, you get a free night every year after your card anniversary. And you can get one more free night after you spend $60,000 on your card in a calendar year.

You get complimentary Marriott Bonvoy Silver Elite status with your Card. Plus, spend $35,000 on eligible purchases in a calendar year and earn an upgrade to Marriott Bonvoy Gold Elite status through the end of the following calendar year.

Plus, each calendar year you can get credit for 15 nights towards the next level of Marriott Bonvoy Elite status.

Find it here: creditcard.americanexpress.com/d/bonvoy-business

US recession Credit Suite

Check out our Hybrid Credit Line funding. It’s a great complement to the best gas cards for small business during the US recession – and more!

Dependable Credit Cards for Fair to Poor Credit, Not Calling for a Personal Guarantee (get Rideshare Points – to Supplement Your Gas Cards)

Brex Card for Startups

Look into the Brex Card for Startups. It has no yearly fee.

You will not need to supply your Social Security number to apply. And you will not need to provide a personal guarantee. They will take your EIN.

However, they do not accept every industry. 

Likewise, there are some industries they will not work with, and others where they want added paperwork. For a list, go here: brex.com/legal/prohibited_activities.

To determine creditworthiness, Brex checks a corporation’s cash balance, spending patterns, and investors.

So you can get 7x points on rideshare. Get 4x on Brex Travel. Also, get triple points on restaurants. And get double points on recurring software payments. Get 1x points on everything else.

You can have poor credit (even a 300 FICO) to qualify.

Find it here: brex.com/lp/startups-higher-limits

US recession Credit Suite

Check out our Hybrid Credit Line funding. It’s a great complement to the best gas cards for small business during the US recession – and more!

The Best Gas Cards for Small Business for You During the US Recession and Beyond

So your outright best gas cards for small business will always hinge on your credit history and scores.

Only you can pick which features you want and need. So make sure to do your homework. What is outstanding for you could be catastrophic for another person.

And, as always, make certain to establish business credit in the recommended order for the best, quickest benefits. The US recession won’t last forever. And with these credit cards and a good payment history, you can emerge from the US recession even better off than you were before.

The post Get Gas Cards for Small Business During the US Recession appeared first on Credit Suite.