Bad Credit Small Business Credit Cards in a Recession – This is Proven!

As the novel coronavirus changes our economy, there’s one thing you can count on – bad credit small business credit cards in a recession. Yes, they really exist – even in what is looking a lot like an inevitable recession.

Do You Have Bad Credit? Small Business Credit Cards Can Still Be in Your Reach, Even in a Recession

Bad Credit? Small business credit cards in a recession can still be yours, if you know where to look. Fortunately, we have done the research for you.

According to the SBA, company credit card limits are several times that of personal cards! This means you can get a lot more money with corporate credit. And it also means you can have personal charge cards at stores, and now have a second card at the same stores for your small business. And you will not have to put up collateral, cash flow, or financial information in order to get corporate credit.

Even with bad credit, you can still qualify for several of these cards.

Get a Bad Credit Small Business Credit Cards in a Recession with 0% Introductory APR – Pay Zero!

Blue Business® Plus Credit Card from American Express

Take a look at the Blue Business® Plus Credit Card from American Express. It has no annual fee. There is a 0% introductory APR for the initial year. After that, the APR is a variable 14.74 – 20.74%.

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

You will need great to outstanding 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 rather than points.

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

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 will need great to outstanding credit to qualify.

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

Get a Remarkable Bad Credit Small Business Credit Cards in a Recession with No Annual Fee

No Yearly Fee/Flat Rate Cash Back

Ink Business Unlimited℠ Credit Card

Take a look at the Ink Business Unlimited℠ Credit Card. Beyond no yearly fee, get an introductory 0% APR for the first 12 months. 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 through 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

Bad Credit Small Business Credit Cards in a Recession, Not Needing a Personal Guarantee

Brex Card for Startups

Check out the Brex Card for Startups. It has no annual 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 paperwork. 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. 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 (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.

Bad Credit Small Business Credit Cards in a Recessions for Luxurious Travel Points

Flat-rate Travel Rewards

Capital One® Spark® Miles for Business

Take 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 great for travel if your expenditures don’t come under typical bonus categories. You can get unlimited double miles on all purchases, without limits. Earn 5x miles on rental cars and hotels if you book through Capital One Travel.

Get an introductory 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 initial 3 months from account opening. There is no foreign transaction fee. You will need a good to superb 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, take a look at 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 first 3 months after account opening. This works out to $1,250 toward 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 with Chase Ultimate Rewards. You will need a good 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 nine 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.

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

Also earn 3 points per every dollar spent when you book 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 don’t 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

Check out 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 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 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 bought directly from American 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 another free night after you spend $60,000 on your card in a calendar year.

You get Marriott Bonvoy Silver Elite status with your Card. Also, 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: https://creditcard.americanexpress.com/d/bonvoy-business/

Secure Corporate Credit Cards for Fair Credit? Get Bad Credit Small Business Credit Cards in a Recession

Capital One® Spark® Classic for Business

Take a look at 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 get unlimited 1% cash back on every purchase for your company, without any minimum to redeem.

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

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

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

Get Bad Credit Small Business Credit Cards in a Recession for Jackpot Rewards That Never Expire

Capital One® Spark® Cash Select for Business

Have a look at 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 get. Also get a one-time $200 cash bonus when 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 after that.

You will need good to exceptional credit scores to qualify.

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

Get a Terrific Bad Credit Small Business Credit Cards in a Recession for 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 yearly fee for the first year. Afterwards, this card costs $95 each year. There is no introductory APR deal. The regular APR is a variable 18.49%.

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

You will need great to outstanding credit to qualify.

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

Flat-Rate Rewards and No Annual Fee

Discover it® Business Card

Check out the Discover it® Business Card. It has no yearly fee. There is an introductory APR of 0% on purchases for twelve months. Then 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. Keep in mind: you will need great to superb credit scores to get this card.

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

Bonus Categories

Ink Business Cash℠ Credit Card

Take a look at the Ink Business Cash℠ Credit Card. It has no yearly fee. There is a 0% introductory APR for the first twelve 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 first 3 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 net, 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. Get 1% cash back on all other purchases. There is no limit to the amount you can earn.

You will need outstanding credit scores to qualify for 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 initial 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 filling 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. Then earn 1% after, with no limits.

You will need exceptional 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.

Flexible Financing Bad Credit Small Business Credit Cards in a Recession

The Plum Card® from American Express

Have a look at the Plum Card® from American Express. It has an initial yearly 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 excellent to excellent credit scores to qualify.

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

The Perfect Bad Credit Small Business Credit Cards in a Recession for You

Your absolute best bad credit small business credit cards 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 will not last forever.

The post Bad Credit Small Business Credit Cards in a Recession – This is Proven! appeared first on Credit Suite.

Top 10 Brilliant Ways to Find Recession Startup Funding

The COVID-19 pandemic caught the world by surprise and turned the economy on its head. If you are a business trying to stay afloat during this time, we can help. The Federal government has approved funding through The CARES Act, including the Paycheck Protection Plan. In addition, many states and local organizations are offering their own unique funding options. If you are thinking of starting a business during this time, keep reading for recession startup funding options.

It is Possible to Find Recession Startup Funding, but You Have to Get Creative

During a recession, prices go up, employment goes down, and lenders tend to hold on to funds much tighter. This can make funding a startup very difficult. The truth is, startup funding during a recession is not easy to come by. In fact, many of the traditional option will not work for the majority. Recession startup funding takes a little more creativity.

You may even wonder why anyone would start a new business during a recession. It’s all in your perspective. The fact is, a recession could be the perfect opportunity to start your own business.

For example, if you are one of the many who find themselves unemployed during a recession, you are no longer tied down. You have nothing to lose, and you can use that freedom to start brainstorming ways to find startup funding. The recession can actually be a catalyst!

Despite the fact that there are many, many ways to get startup funding, it is still one of the greatest roadblocks to business ownership. It the first stumbling block most come across, and a recession makes it even bigger. Recession startup funding can even seem like a mirage to some, but it is a real thing. It just takes a little creativity to bring it out of hiding.

Some sources of funding for your startup will not work during a recession. You need to know what your options are, what works for startup funding, and what will work best in your situation. Then you can start looking.

Why Small Business Loans Do Not Always Work, Especially for Recession Startup Funding

With this startup funding source, recession is a huge issue. It can work for some, but the traditional lenders tend to really hold on to their funds tighter during an economic downturn. Since this is the source that most people immediately look to when they want to start a business, you can see why they get discouraged early on. They get turned down for traditional financing and just give up. It can look like that is the end of the line.

Note as well: business lending tends to reduce if not dry up altogether during economic downturns.

There is more than one place to get a business loan however, and some people do not realize that.

SBA loans

These loans are still offered through traditional lenders such as banks and credit unions, but the federal government guarantees them. Since they are not completely reliant on the credit score of the borrower to reduce risk, the required credit score is slightly lower to qualify.

There is a lot of red tape related to applying for SBA loans however, and it does take a significant amount of time. If you do not qualify for traditional loans and do qualify for SBA loans however, it is definitely worth the time it takes.

If you are looking to traditional lenders for small business loans as recession startup funding, you will most likely need to consider SBA Loans.

Learn business loan secrets with our free, sure-fire guide. We can help you get money, even during a recession.

Alternative Lenders: The Super Heroes of Recession Startup Funding

These are lenders that, as a general rule, operate online. Most of the time borrowers can apply online or over the phone and know about approval within minutes. Funds usually only take 24 to 48 hours to hit their account. Though this timeline does vary among lenders, the point is the process is fast and easy.

They also will sometimes take other factors into consideration if the credit score isn’t fabulous. Length of time in business and annual revenue can play a role as well. This makes it a more accessible source of funding for startups than traditional lenders for many. In addition, repayment terms are often more flexible and manageable.

These types of lenders are easier to work with even during a recession, though an economic downturn may slow them down some, recession startup funds from these lenders will still be more accessible to most than those from traditional banks and credit unions.

Downfall of Small Business Loans for Small Business Funding

Any small business loan is going to require strict repayment and interest. This is harder to manage for anyone during a recession, so keep that in mind when forming your plan of action.

Credit Line Hybrid

A credit line hybrid is basically revolving, unsecured financing. It allows you to fund your business without putting up collateral, and you only pay back what you use.

What are the Qualifications?

How hard is it to qualify? Not as hard as you may think. You do need good personal credit. That is, your personal credit score should be at least 685. In addition, you can’t have any liens, judgments, bankruptcies or late payments. Also, in the past 6 months, you should have less than 5 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.

If you do not meet all of the requirements, all is not lost. 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.

The Downside?

If you don’t have a decent personal credit score, you’ll need to take on a credit partner.

Bootstrapping: The Ultimate in Recession Startup Funding

You know what bootstrapping is right? Pulling yourself up by your bootstraps and all of that. Basically, it’s when you figure out how to use what you already have as startup funding. This could include a number of options:

· Savings
· Retirement
· Credit cards
· Additional mortgage on a home
· Home equity line of credit

If you use retirement or savings, then you can rest easy knowing you don’t have to pay anyone back but yourself.

The Downside to Using Your Own Funds for Recession Startup Funding

The downside to this option is either the loss of retirement or savings, or significant personal debt. If your business is successful, it is not a problem. However, if your business does not do well, you could find yourself with some pretty major financial issues.

If you happen to have access to the amount of personal funds it would take to fund a startup during a recession, you are likely going to struggle with letting go of those funds. It is a definite risk, especially in economically tough times. However, it may be less of a risk than extensive debt. It could also be the only option available.

Learn business loan secrets with our free, sure-fire guide. We can help you get money, even during a recession.

Crowdfunding

Crowdfunding is a much more viable option during economically stable times. People that do not normally have disposable income may find that they have a little, and would like to help support a startup in return for a piece of the action.

This is still a possible source of recession startup funding, but much less likely. There is simply less “extra” money in the pockets of consumers. It is still worth a shot however.

Popular Crowdfunding Platforms

There are a lot of crowdfunding platforms, but the two most popular are Kickstarter and Indiegogo. While they are very similar in most ways, they do differ in one major way.

For each, you have to set a funding goal. Kickstarter requires the campaign to reach the goal before you can access any of the funds. Indiegogo allows you to choose whether you want to receive funds as they come in, or wait until you reach the goal.

Indiegogo also offers an option to keep accepting funds on the same campaign even after you reach the original goal, rather than having to launch a new campaign to raise more funds.

The Downside of Crowdfunding

A very small percentage of crowdfunding campaigns are successful during the best of times. This shouldn’t deter anyone from trying, but there needs to be a realistic realization that a backup plan may be necessary, especially during a recession.

Small Business Grants

There are small business grants available if you qualify. Most often these are available to certain demographics including:

· Women
· Minorities
· Veterans
· Businesses in low-income areas

If you fall into one of these categories, a quick search could be very fruitful. There are grants available to those that do not fall into these categories, but they are not as common.

There are some grants offered by the government, but most often they are not awarded directly to businesses. Rather local governments and nonprofits disburse the funds. This may involve nothing more than accepting applications and awarding funds based on eligibility until money is gone.

Corporations and professional organizations also sometimes offer private grants as well based on their own application criteria and eligibility requirements.

During a recession there may actually be more options like this available, as the government is looking to help shore up the economy and increase circulation.

The Downside

Grants are an awesome source of recession startup funding if you can get one. However, they are highly competitive and therefore not guaranteed.

Do the Hustle: A Side Hustle Could Be the Answer to Recession Startup Funding

This one is a personal favorite. It could fall under bootstrapping, but in my opinion, it deserves its own category. While you are technically self-funding, this option requires you to work to raise funds rather than using funds you already have available or taking on more debt.

It also, in most cases, requires keeping your day job. When you use a side-hustle to create your own recession startup funding, the process is pretty slow. This is why most do not care to use this option. There are many benefits however.

Benefits of the Side Hustle

The first is that you can gauge the market a little. If you use your business idea as your side hustle, you can get a feel for what kind of demand might be out there. For example, if you want to open a bakery, you could bake breads, cookies, cupcakes, or whatever your specialty may be on the side and sell it. As you do so, you can save any funds you earn to go toward growing your business, and in the meantime, you are gaining a following and making a name for yourself and your product.

Your side hustle does not have to be your business idea at all. It can be as simple as cleaning or babysitting around your day job hours. The point is that you put every penny you earn back for funding your startup.

The Downside

This is a slower option, and some people do not want to wait that long. In addition, with unemployment down during a recession, it may be hard to find one job, let alone a second to use as a side hustle. Even simply things like cleaning houses and cutting grass may be hard, because a lot of people will be trying to save money by doing these things themselves.

Investors: One of the Oldest Forms of Startup Funding

One of the most obvious options, other than small business loans, is to find investors. This would be significant investment from one or a few different people, rather than small investments from a large number of people like in crowdfunding. In addition, investors most definitely invest in exchange for profit sharing, usually in proportion to their investment or a percentage they agree upon from the beginning.

The Downside

You give up some of your earnings. That’s not fun, but it could be worth it for the right investor. Also, during a recession, investors tend to hold on to funds similar to the way lenders do. It is a much greater risk to invest during a recession because of the economic uncertainty that exists.

Learn business loan secrets with our free, sure-fire guide. We can help you get money, even during a recession.

Partner Up: Two Heads are Better Than One

You could also take on a partner. Sometimes the power of two is way stronger when it comes to startup funding. Where your credit score lacks, your partner’s may be strong. In most cases in life in general, two are better than one.

The Downside

Depending on how the partnership is structured, you may give up some of the managerial control. Just like with investors, you will definitely give up a portion of the profits.

Contests: The Longest Shot Option for Recession Startup Funding

There are contests out there that offer startup funding as a prize. Think “Shark Tank.” You could try to get in on that specific contest, but there are smaller scale contests out there also. Similar to crowdfunding and grants, they are not guaranteed. They are certainly worth a shot however.

Some of them simply award prize money, while others, like “Shark Tank,” award investment funds. Either way, it is money you can use for startup funding that you do not have to pay back.

The Downside

Like grants and crowdfunding, winning a contest is not guaranteed. It could end up being a lot of work for little to no payoff. During a recession, it is likely even fewer contests are available. If you find one however, definitely take advantage.

Bartering

It is difficult to fund a whole business by bartering, but in conjunction with one or more other sources of startup funding, it could be just the burst of energy you need to get you over the hurdle. Basically, it can make the funds you already have from other sources go further.

What does this look like? Maybe you are great at keeping books, and you have a friend that is great at social media. You may offer to do his books in exchange for his creating and managing your online presence.

Maybe your buddy is adept at designing websites, or has a space that will work as a location for your business. You could offer equity in the business in exchange for a website or use of the space.

This is one source of recession startup funding that may actually help be more of a possibility during a recession than in a booming economy. With people holding to funds tightly, they may be more likely to help you out for something in return other than money, as it will help them keep more money in their own pockets as well.

The Downside

There isn’t really a downside to this. It may not fully fund a business, but it could definitely reduce the financial need and help you stretch the funds you do have further. If you can find someone willing, this is a great option.

You Might Have to Get Creative, but You Can Find Recession Startup Funding

Sometimes the traditional ways work, and sometimes they do not. In a recession, the traditional ideas are sometimes even less useful. Creativity can be your best friend. You may have to use a few different sources of startup funding, recession or not. It can take longer than you originally anticipated, but slow and steady wins the race as they say.

If you work on winning grants or running a side hustle, it may feel like you will never finish the race, let alone win. Maybe you applied for loans but could not get approval. Now you are shaking yourself off and wondering if it is worth it. It is. Just keep trying. Consider the recession, though a challenge, to be an opportunity to do something not only different, but bigger and better in the long term. The rain doesn’t last forever, and neither does a recession. By starting your business now, you can be positioned for ultimate growth when the clouds finally roll away.

The post Top 10 Brilliant Ways to Find Recession Startup Funding appeared first on Credit Suite.

5 Most Common Mistakes Business Owners Make in a Recession

Mistakes happen. When under pressure, even more mistakes happen. If business owners have ever been under pressure, it’s now. COVID-19 has thrown the economy for a loop, and business owners can’t makes heads or tails of it. Before you do anything else, take a look at the relief options available, including the Paycheck Protection Plan. Then, consider these common mistakes business owners make in a recession, and how to avoid them.

Avoid these Common Mistakes Business Owners Make in a Recession to Make it out of the Recession Twilight Zone

A recession can be a hugely stressful time. Not only can finances be in shambles, but the stress can take a toll on many other things as well. During a recession it can seem that all is lost, but avoiding these common mistakes business owners make in a recession could help. It certainly won’t hurt.

Imagine you wake up tomorrow in the twilight zone, and it lands you right in the middle of recession land. You may be feeling the effects of the recession even now. Here is what not to do if you want to survive. Avoid these mistakes, and your business could just make it out alive.

Common Mistakes Business Owners Make in a Recession: Moving Too Fast

While you definitely have to spend money to make money, it is necessary to be a little more careful during a recession. Spend money cautiously and only when the payoff is certain to avoid this and other common mistakes business owners make in a recession. That’s not to say that you can’t ever take a risk, but definitely don’t do it too quickly.

For example, if you have the opportunity to purchase inventory at a cut rate, it may seem the best idea is to purchase as much as you can. After all, if you sell it at the same price as before, you will still make a larger profit because the cost to you was less.

This is one of the common mistakes business owners make in a recession, because it makes sense when you are not in a recession. However, with people having less disposable income to spend, it is possible that that inventory will not move. Then, you are stuck with inventory you cannot sell, and a lot of it.

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

The Better Option

Considering the financial hard times, take a minute to evaluate things. Why is there a cut rate on the inventory? Is the wholesale provider is having a hard time moving it? If that is the case, you may have the same problem. Pay attention to your customers and your current inventory. Do you see any downward trends?

There a few options here that may be more beneficial. First, consider not stocking up on the inventory at the reduced rate. Maybe buy a little more than normal, but focus instead on the option the reduced rate gives you to lower your own prices.

The better decision is to evaluate how the recession is affecting the industry and the markets around you. Then, make decisions about how much of the discount inventory to purchase based on that. From there, you can make a plan for how to make the most of the discount.

That may mean that you have a sale offering the cheaper inventory at a price below what your competitors are offering. Another option is to purchase enough to lower prices for the duration of the recession.

The only way to make these decisions however, is to have thorough market research. That may cost money as well, but it is a much better use of the funds than wasted inventory. It will take time, but the slowdown will definitely be worth it.

Common Mistakes Business Owners Make in a Recession: Failing to Plan

One of the most important parts of running a business is planning for the unexpected. This includes planning for a recession. That is one of the most common mistakes business owners make in a recession. They panic, and either forget their plan, or they realize they never had a plan.

The first way to avoid this mistake is, obviously, to make a plan. If you have a plan, now is the time to put it into action. Don’t panic. Take stock of your expenses and revenue. Adjust expenses accordingly as much as possible.

Keep a watch on the market to see how your particular industry is responding to the recession. Use what you learn to tweak your plan as necessary. The point is, if there is a plan, use it. If not, it’s never too late to avoid this one of the most common mistakes business owners make in a recession. Make a plan and put it into action.

Not Having Fail Safe

You always need a safety net. Unfortunately, one of the common mistakes business owners make in a recession is not realizing this until they are in the middle of a recession. Technically, that is the mistake made before the recession.

The “in recession” mistake is actually not trying to do something about it. If you catch the problem soon enough, you may be able to take action. What type of “fail safe” do you need?

Credit Card

A credit card that is open can help you float until you find a more permanent fix for whatever woes the recession is causing you.

Line of Credit

A line of credit works similar to a credit card in that it is a revolving line of credit, but it does not carry the same types of interest rates and terms that a credit card does.

Whether you get a credit card or a line of credit, it is important to remember to use it only to get you over a hump. It has to be paid back, and you need to be sure you can do that. These are tools that could be useful if you have customers that cannot pay invoices, or if you need to take advantage of a special deal like in the example above.

However, if you find you are continually using these “safety nets” to simply run the day to day operations of your business, you need to do more. You are going to have to find the leak and shore it up.

What if…?

There are a few other options if you have already waited too long. For example, you can consider factoring your invoices. This will allow you to access cash immediately, often without a credit check. Also, you do not have to worry about paying the money back, as your lender will collect the payments on the invoices directly.

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

Be aware however, they will purchase them at a premium. You will not get the full value of the invoices, but if you need the cash fast, it may be worth it.

Another option is a merchant cash advance. If you accept credit card payments, a lender may advance you funds based on your average daily credit card sales. Then, they collect repayment from those future sales, typically daily.

Common Mistakes Business Owners Make in a Recession: Trying to Take on Too Much

It is easy during a recession to try to save money by cutting staff. While there may be a time for this, one common mistake business owners make in a recession is trying to save money by doing everything themselves.

That just is not always the answer. If you are trying to do the day to day operations as well as the bookkeeping, cleaning, advertising, and even purchasing yourself, you are going to burn out. Not only that, but things are going to start slipping through the cracks. Bills will be missed. Orders will not get entered. Invoices will not get sent.

These things are just as detrimental to a business as paying employees you cannot afford. What is the better option? The first thing is to not let go of a bunch of employees out of panic. Slowly and carefully evaluate each job. Do you have any positions that can be combined? If so, do you have employees capable of accomplishing the tasks of both positions?

Better Options

Is it possible to cut one position, split it between two others, and raise the pay of the other two but by less than what the cut position was making? No one likes to let go of good employees at all, but taking the time to evaluate all of the options is much better for everyone than a massive axing party.

Additionally, consider which jobs can be outsourced. Outsourcing can save money because you do not have the additional payroll costs that go along with an employee. Janitorial services, bookkeeping, and social media marketing can all lend themselves well to outsourcing depending on the situation.

Common Mistakes Business Owners Make in a Recession: Thinking You Can Do It All

Another of the common mistakes business owners make in a recession is not playing to their strengths. This is similar to taking on too much, but for different reasons. While it may seem like you are saving money by not paying someone else to do certain things, it can definitely cost money to do things that you are not good at.

We all have certain strengths, and not knowing yours can be a money drain. If you are not good with the books, don’t try to do them. A mistake in that area can be very costly. If you are not great at managing people, assign that task to a trusted employee. Know your strengths and your weaknesses, and delegate tasks accordingly.

Do not let the fact that you are operating in a recession cause you to try do work in areas where you are weak in an effort to save money. It won’t work, and during a recession it could cause even more damage than it would otherwise.

Cutting Prices Too Soon or Too Much

When things start to look scary, it is almost a reflex reaction to cut prices. The idea is that If you offer a better deal, more people will do business with you.

This isn’t always the case. If your products are not at a price the market supports, it might work. Otherwise, you may see an increase at first, but long term it isn’t going to be a good thing.

People are willing to pay for a quality product. If you are struggling, it is best to figure out what they are buying instead of what you have for them. It could be the demand just isn’t there.

In a recession it is quite likely that people just do not have the disposable income necessary to purchase your product or service. In fact, it is even more likely than not. The answer then is not necessarily as easy as a price cut.

A price cut could work, if you can maintain quality. A better option is to be flexible and figure out what they are able to spend money on. For example, if you specialize in premium quality boutique clothing, consider adding inventory that is not as expensive. Call it something that sounds catchy, like “economy boutique,” and you just may have something that will get you through the recession.

In the restaurant business, consider offering specials at reduced rates to make what you have a better deal for customer that they can better afford.

Forgetting How Much Quality Counts

Truly you get what you pay for, and a hugely common mistake business owners make in a recession is that they forget that. This rings true in all aspects of business from inventory to supplies, and even employees.

There is a fine line between saving money and sabotaging yourself. You cannot purchase lower quality inventory, charge the same, and expect that profit increase to hold. Word will spread. You can’t pay less than the competition and expect your employees to be top notch.

Keep in mind that for you and your customers, quality counts, always. You get what you pay for, and your customers expect to get what they pay for.

Common Mistakes Business Owners Make in a Recession: It’s Never too Late to Build Business Credit

If you don’t already have established business credit, that can go a long way toward helping your business through a recession as well. Incorporate your business and get an EIN from the IRS. Make sure your business has a different address and phone number from your own, and sign up for a DUNS number from Dun & Bradstreet.

Once these things are done, check into doing business with starter vendors. These vendors, such as Uline, Quill, and Grainger will offer invoices with net terms. They do this without checking your credit score, and they will report your payments to the business credit reporting agencies.

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

In this way, you can begin to build business credit even during a recession. If you make your payments on time, you can continue to build it by applying for credit from the retail credit tier, the fleet credit tier, and the cash credit tier. Then, if you need funding to help get you through the recession, you will have it. It takes time, but it’s never too late to start.

Avoid these Common Mistakes Business Owners Make in a Recession and Keep Your Business Going Strong

Of course, there are no guarantees the recession won’t pull you under, but there are things you can do to make it less likely. If you are careful to not make these common mistakes business owners make in a recession, and pay attention to what is going on around you, your business just may have a fighting chance of making it out of the recession twilight zone intact.

The post 5 Most Common Mistakes Business Owners Make in a Recession appeared first on Credit Suite.

Here’s a Great Question from Residential Real Estate Agents: How Do I Build Recession Business Credit

COVID-19 got you down? It’s not going to last forever. In the meantime, you can build recession business credit. Get a jump on then competition and use this pause in our lives to get ahead.

Recession Business Credit for Residential Real Estate Agents and the Rest of Us!

Every entrepreneur asks this same question: how do I build recession business credit?

The United States’s economy has been through any number of changes throughout the years. Our economic fortunes can depend on breakthroughs in modern technology, diplomatic ties (or cutting those ties), the weather, and a lot more. Business credit, luckily, is an asset which you can build even during economic recessions. Nevertheless, you may need to get a little imaginative with it, and with other forms of company funding.

Business credit is credit in a company’s name. It doesn’t link to a business owner’s consumer credit, not even when the owner is a sole proprietor and the sole employee of the company.

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

Recession Business Credit – Get The Advantages

Due to the fact that recession business credit is separate from individual, it helps to safeguard a business owner’s personal assets, in the event of a lawsuit or business insolvency.

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

Another advantage is that even new ventures can do this. Going to a bank for a business loan can be a recipe for disappointment. But building small business credit, when done properly, is a plan for success.

Consumer credit scores rely on payments but also other components like credit utilization percentages.

But for company credit, the scores actually only hinge on if a business pays its invoices on time.

Recession Business Credit – Start The Process

Growing company credit is a process, and it does not occur automatically. A small business has to proactively work to establish business credit.

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

Merchants are a big part of this process.

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

Recession Business Credit – Get Started with Small Business Fundability

A small business needs to be fundable to lenders and vendors.

Hence, a business will need a professional-looking website and e-mail address. And it needs to have site hosting bought from a supplier like GoDaddy.

And also, company phone and fax numbers ought to have a listing on ListYourself.net.

At the same time, the company phone number should be toll-free (800 exchange or comparable).

A business will also need a bank account dedicated solely to it, and it has to have all of the licenses essential for running.

Licenses

These licenses all have to be in the particular, accurate name of the small business. And they must have the same small business address and phone numbers.

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

Learn more here and get started toward establishing small business credit. Get money even in a recession!

Recession Business Credit – Start Credibly Dealing with the Internal Revenue Service

Visit the Internal Revenue Service web site and get an EIN for the small business. They’re free. Pick a business entity like corporation, LLC, etc.

A small business may get started as a sole proprietor. But they absolutely need to change to a form of corporation or an LLC.

This is to diminish risk. And it will take full advantage of tax benefits.

A business entity matters when it involves tax obligations and liability in the event of a lawsuit. A sole proprietorship means the owner is it when it comes to liability and tax obligations. No one else is responsible.

The best thing to do is to incorporate. You should only look at a DBA as an interim step on the way to incorporation.

Recession Business Credit – Set off the Business Credit Reporting Process

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

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

This way, Experian and Equifax will have activity to report on.

Starter Vendor Credit

First you must establish tradelines that report. Then you’ll have an established credit profile, and you’ll get a business credit score.

And with an established business credit profile and score you can begin to get credit for numerous purposes, and from all sorts of places.

These types of accounts often tend to be for things bought all the time, like marketing materials, shipping boxes, outdoor workwear, ink and toner, and office furniture.

But first of all, what is trade credit? These trade lines are credit issuers who give you starter credit when you have none now. Terms are generally 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 have to be paid in full within 30 days. 60 accounts need to be paid fully within 60 days. Unlike revolving accounts, you have a set time when you have to pay back what you borrowed or the credit you made use of.

To launch your business credit profile the right way, you ought to get approval for vendor accounts that report to the business credit reporting bureaus. As soon as 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 Helps

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

As you get starter credit, you can also start to get credit from retailers. This is to continue to prove you are reliable and pay in a timely manner. Here are some stellar choices from us: https://www.creditsuite.com/blog/5-vendor-accounts-that-build-your-business-credit/

Uline

Uline 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 and Experian. You MUST have a D-U-N-S number and an EIN before starting with them. They will ask for your business bank information. Your company address must be uniform everywhere. You need for an order to be $50 or more before they’ll report it. Your first few orders may need to be prepaid initially so your business can get approval for Net 30 terms.

How to apply with them:
Add an item to your shopping cart
Go to checkout
Select to Open an Account
Select to be invoiced

Quill

Quill is an additional true starter vendor. You can find them online at www.quill.com. They sell office, packaging, and cleaning supplies. And they also sell toner, office furniture, and even shipping and school supplies. They report to Dun and Bradstreet every quarter.

To apply, you MUST have a D&B PAYDEX score. If not given a Net 30 they will ask you to do prepaid orders of $100.00. Normally any prepaid order won’t report but you would need them to have given you a Net 30 account. Net 30 accounts require $50.00 purchase to report.

New business or businesses with no credit history may need to prepay purchases until Net 30 approval. Terms are Net 30.

Here’s how to qualify:
Your corporate entity must be in good standing with the applicable Secretary of State
You must have an EIN and a D-U-N-S number
Business address (it has to match everywhere)
Business license (if applicable)
A corporate bank account

Apply online or over the phone.

Grainger Industrial Supply

Grainger Industrial Supply is likewise a true starter vendor. You can find them online at www.grainger.com. They sell hardware, power tools, pumps and more. They also do fleet maintenance. And they report to D&B. You need to have a business license, EIN, and a D-U-N-S number.

To qualify, you need the following:
A business license (if applicable)
An EIN number
A company address matching everywhere
A business bank account
A D-U-N-S number from Dun & Bradstreet

Your business entity must be in good standing with the applicable Secretary of State. If your company doesn’t have established credit, they will require additional documents. So, these are items like accounts payable, income statement, balance sheets, and the like.

Apply online or over the phone.

Recession Business Credit – Get Benefits from Accounts That Don’t Report

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

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

Store Credit

Store credit comes from a variety of retail companies.

You must use your Social Security Number and date of birth on these applications for verification purposes. For credit checks and guarantees, use the small business’s EIN on these credit applications.

Fleet Credit

Fleet credit is from companies where you can purchase fuel, and fix and maintain vehicles. You must use your Social Security Number and date of birth on these applications for verification purposes. For credit checks and guarantees, make certain to apply using the business’s EIN.

Learn more here and get started toward establishing small business credit. Get money even in a recession!

Cash Credit

These are businesses such as Visa and MasterCard. You must use your SSN and date of birth on these applications for verification purposes. For credit checks and guarantees, use your EIN instead.

These are often MasterCard credit cards.

And there are tons of ways these business credit cards can help residential real estate agents.

Learn more here and get started toward establishing small business credit. Get money even in a recession!

Recession Business Credit – Monitor My Business Credit

Know what is happening with your credit. Make certain it is being reported and take care of any mistakes ASAP. Get in the practice of taking a look at credit reports and digging into the details, and not just the scores.

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

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

Update Your Data

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

Recession Business Credit – Fix My Business Credit

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

Disputes

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

Fixing credit report inaccuracies also means you specifically itemize any charges you dispute. 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.

Recession Business Credit – A Word to the Wise

Always use credit smartly! Don’t borrow more than what you can pay back. Keep track of balances and deadlines for payments. Paying off on schedule and fully will do more to elevate business credit scores than nearly anything else.

Establishing small business credit pays off. Great business credit scores help a business get loans. Your lender knows the small business can pay its debts. They understand the company is bona fide.

The business’s EIN attaches to high scores and credit issuers won’t feel the need to demand a personal guarantee

How Do I Build My Business Credit: Takeaways

Business credit is an asset which can help your small business for years to come. Learn more here and get started toward establishing small business credit. The COVID-19 pandemic is not going to last forever.

The post Here’s a Great Question from Residential Real Estate Agents: How Do I Build Recession Business Credit appeared first on Credit Suite.

Fair Credit Business Credit Cards in a Recession

Get the Best Fair Credit Business Credit Cards in a Recession

Are you looking for fair credit business credit cards in a recession? We checked out a ton of company credit cards, and did the research for you.

COViD-19, Economic Downturns, and Getting Fair Credit Business Credit Cards in a Recession

The USA’s economic climate has been through any variety of changes throughout the years. Our financial fortunes can depend on developments in modern technology, diplomatic ties (or cutting those ties), the weather, and much more. COVID-19 in particular is hitting our economy hard, with some 22 million initial claims for unemployment benefits in four weeks.

Business credit, thankfully, is an asset which you can build even during economic slumps. However, you might need to get a little imaginative with it, as well as with various other kinds of financing.

Was an Economic Decline Predicted Before COVID-19 Hit?

Yes, actually. While nobody has a crystal ball, one thing is for certain. Whenever you start to see a bubble, it will at some point burst. Which is true whether the bubble is in the stock exchange, or S&L loans, or real estate.

Economic slumps additionally, certainly, imply financial institutions get even more cautious. Given that bailout money is finite, it would appear that banks will get more cautious very soon.

And because people may have much less discretionary cash money to spend, crowdfunding may become a less feasible funding option. The same may end up being true for angel investing as well as venture capital.

What Does this Mean to You?

Small business loans may be tightening up. However business credit is still a fantastic way to get business funding. By bypassing loan providers, you raise your chances for business financing, specifically if your company is new.

Business credit links to your EIN and not your SSN, as well as is available without a personal guarantee. It is available regardless of individual credit.

Business credit building is an outstanding selection in an economic downturn, as it is not based on how well the economy is doing. It also establishes an asset which will retain its value as long as your ratings remain high.

You can still get fair credit business credit cards in a recession. But note some of our choices need better credit. So take the opportunity as we take a breather to improve your credit scores.

Fair Credit Business Credit Cards in a Recession: Advantages

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

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

And you will not need collateral, cash flow, or financials in order to get small business credit. Fair credit does not have to be an obstacle!

Benefits vary, so make certain to choose the reward you prefer from this assortment of alternatives.

Fair Credit Business Credit Cards in a Recession

Brex Card for Startups

Look into the Brex Card for Startups. It has no annual 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.

Nevertheless, they do not accept every industry.

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

To determine creditworthiness, Brex checks a company’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/

Establish business credit fast with our research-backed guide to 12 business credit cards and lines, and get fair credit business credit cards in a recession.

Secure Fair Credit Business Credit Cards in a Recession

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 promptly, and in full, then it is a bargain.

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

Terrific Cards for 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 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 initial 3 months from account opening. Get unlimited 2% cash back. Redeem any time without minimums.

You will need great to outstanding credit to qualify.

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

Flat-Rate Rewards and No Annual Cost

Discover it® Business Card

Check out the Discover it® Business Card. It has no yearly fee. There is an introductory APR of 0% on purchases for year. Then 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| quickly to Quicken, QuickBooks, and Excel. Note: you will need good to exceptional credit scores to get approval for this card.

Get it here: https://www.discover.com/credit-cards/business/

Irresistible Cards for 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 get. And get a one-time $200 cash bonus as soon as 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 good to excellent credit to qualify.

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

Business Credit Cards for Extravagant 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 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 excellent for travel if your expenses do not come 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 introductory bonus of 50,000 miles. That is the same as $500 in travel. Yet you just 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 outstanding 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 great 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 first three months after account opening. This works out to $1,250 towards travel rewards if you redeem using Chase Ultimate Rewards.

Get three 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 through Chase Ultimate Rewards. You will need a great to excellent FICO score to qualify.

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

Establish business credit fast with our research-backed guide to 12 business credit cards and lines, and get fair credit business credit cards in a recession.

Hotel Credit Card

Marriott Bonvoy Business™ American Express® Card

Check out 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 great to outstanding 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 first three months. Get 6x the points for eligible purchases at participating Marriott Bonvoy hotels. You can get 4x the points at United States restaurants and filling stations. And you can get 4x the points on wireless telephone services purchased directly from US service providers and on US purchases for shipping.

Get double points on all other eligible purchases.

Rewards

Also, you get a free night each 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 free Marriott Bonvoy Silver Elite status with your Card. Also, spend $35,000 on eligible purchases in a calendar year and get 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/

Establish business credit fast with our research-backed guide to 12 business credit cards and lines, and get fair credit business credit cards in a recession.

Perfect Fair Credit Business Credit Cards in a Recession

Your outright best fair credit business credit cards in a recession will hinge on your credit history and scores.

Only you can pick which features you want and need. So be sure to do your homework. What is outstanding for you could be disastrous for someone else.

And, as always, make certain to develop credit in the recommended order for the best, speediest benefits. The COVID-19 situation will not last forever.

The post Fair Credit Business Credit Cards in a Recession appeared first on Credit Suite.

Here’s a Great Question from Residential Real Estate Agents: How Do I Build Recession Business Credit

COVID-19 got you down? It’s not going to last forever. In the meantime, you can build recession business credit. Get a jump on then competition and use this pause in our lives to get ahead. Recession Business Credit for Residential Real Estate Agents and the Rest of Us! Every entrepreneur asks this same question: how … Continue reading Here’s a Great Question from Residential Real Estate Agents: How Do I Build Recession Business Credit

Standard Industry Classification Codes in a Recession – Which Get You Denied?

Standard Industry Classification Codes in a Recession – Which Will Get a Business Funding Denial?

Do you know which Standard Industry Classification codes in a recession will get you denied?

A Standard Industry Classification – SIC Code – may or may not be vital for SBA Paycheck Protection Program funding. Yet it is certainly important when it comes to other types of funding.

But before we go any further, just what is a Standard Industry Classification code, anyway?

Standard Industry Classification Codes in a Recession: SIC Codes

The SIC Code (Standard Industrial Classification) is a part of a business classification system.

A Standard Industry Classification code, or SIC is a four digit numerical code which is assigned by the U.S. government to businesses, to make it easier to identify the primary activity of the business. It is an indicator of the kind of business a company is in.

The Securities and Exchange Commission developed this system. For example, if your company makes tires and/or inner tubes, then your SIC code would be 3011. The numbers are somewhat intelligent. There are ranges of industry groups which correspond to the first of the four digits Such as manufacturing corresponds to four-digit SIC codes which start with either a 2 or a 3.

Details

The combination of the first and second digits then defines the major industry group. In our example, 30 will designate ‘Rubber and Miscellaneous Plastic Products’.

The SIC code’s digits are grouped to identify the industry and industry group. The first two digits in the SIC code identify the major industry group. And the third digit identifies the industry group. Finally, the fourth digit identifies the industry.

In fact, the Internal Revenue Service will use the SIC code that you select. This is in order to determine if your business tax returns are comparable to the other businesses in your industry. Hence, if your tax deductions do not reasonably resemble the other businesses in your industry, your business could be audited.

Furthermore, some companies may be labeled high-risk when they do not select the right SIC codes to classify their company. However, if you understand how the business classification system works, then you can choose the correct code on your first try.

Demolish your funding problems with our rock-solid guide about 27 killer ways to get cash for your business. Get money even during the worst of a recession.

Standard Industry Classification Codes in a Recession: NAICS Codes

The North American Industry Classification System (NAICS) is another business classification code.

This code classifies business establishments for the purpose of collecting, analyzing, and publishing statistical data related to the U.S. economy. NAICS industry codes define establishments based on the activities in which they are primarily engaged.

The NAICS puts out its own list of high-risk and high-cash industries. Higher risk industries on the list include casinos, pawn shops, and liquor stores, but also automotive dealers and restaurants.

OSHA requires injury and illness reports from certain high-risk industries.

Restricted industries (automatic decline) include:

Ammunition or Weapons Manufacturing; wholesale and retail.
Bail Bonds
Check Cashing Agencies
Energy, oil trading, or petroleum extraction or production
Finance: (Federal Reserve Banks, foreign banks, banks, bank holding companies,
loan brokers, commodity brokers, security brokers, mortgage brokers, mortgage bankers, mortgage companies, bail bond companies, or mutual fund managers).
Gaming or Gambling Activities
Loans for the speculative purchases of securities or goods.
Pawn shops
Political campaigns, candidates, or committees
Public administration (e.g., city, county, state, and federal governmental agencies).
X-rated products or entertainment

High-Risk Industries (subject to stricter underwriting guidelines):

Agriculture or forest products
Auto, recreational vehicle or boat sales.
Courier services
Computer and software related services.
Dry cleaners
Entertainment (adult entertainment is to be considered restricted).
General contractors
Gasoline stations or convenience stores (also known as c-stores)
Healthcare; specifically nursing homes, assisted living facilities, and continuing care retirement centers.
Special trade contractors
Hotels or motels
Jewelry, precious stones and metals; wholesale and retail.
Limousine services
Long distance or “over-the-road” trucking.
Mobile or manufactured home sales.
Phone sales and direct selling establishments
Real estate agents/brokers
Real estate developers or land sub-dividers
Restaurants or drinking establishments.
Software or programming companies
Taxi cabs (including the purchase of cab medallions) .
Travel agencies

Standard Industry Classification Codes in a Recession: Which Code is in Use?

They both are. However, the SIC code system is phasing out and NAICS will replace it. But for the moment, assume they are both in play, as the transition has not yet finished. These coding systems are similar but not identical.

Lenders, banks, insurance companies and business CRAs use both business classification systems. So this is to determine if your business is in a high-risk industry classification. Hence you could get a denial for a loan or a business credit card based on your business classification. Some SIC codes can trigger automatic turn-downs, higher premiums, and reducing credit limits for your business.

Demolish your funding problems with our rock-solid guide about 27 killer ways to get cash for your business. Get money even during the worst of a recession.

Standard Industry Classification Codes in a Recession: Risks

When considering any aspects of a business, risk has to be a major factor. There are inherent issues in every single industry. Crops fail, or lease terms go up too high so a company has to move. Or tariffs or even a war make importing less reliable.

But some businesses are considered to be risky by their very nature. And this is the case even if everything else goes off like a hitch and the business is prospering. Risk is inherent within these business types. Therefore, even if your business doesn’t feel risky, it just might be anyway.

Why Risk Matters

The biggest reason why risk matters has to do with funding. There are several industries where lending institutions are hesitant to do business. In those particular cases, there are stricter underwriting guidelines. But at least a company can get funding.

Not so with other industries. In some industries, no funding is available at all. As a result, those businesses will need to find other solutions for financing. These solutions can include, potentially, crowdfunding, angel investors, venture capital, business credit building and more.

Still, a lot of businesses would rather work with lenders. But where are lenders’ ideas of the magnitude of risk coming from?

Standard Industry Classification Codes in a Recession: Real Injury Risks According to the CDC

In 1999, the Centers for Disease Control published an article on risks in small businesses. This article contains information on SIC codes. And it gives information on injuries associated with the codes. While this is not the true means by which lending institutions decide on risk, it is still of interest. And it can demonstrate what may be behind some of the reasoning.

Part of the calculation of risk comes from occupational injuries. These are such as those noted in the CDC report. But the other side of the risk coin is occupations which are high in cash transactions. After all, a pawn shop might not have much of a specific risk of injury at all. But the large amounts of cash normally associated with one mean that it can be a tempting target for thieves.

Standard Industry Classification Codes in a Recession: Choosing Better SIC Codes

The choice of SIC code is yours. For automotive sales, for example, you would normally select 5511, ‘Motor Vehicle Dealers (New and Used)’. But most lenders will automatically turn your business down because of the high-risk factor within the business classification name. Of course you want to be honest with your SIC coding classification. But if more than one SIC code could apply, try this. There is nothing wrong with choosing the SIC code which will not get you denied by lenders.

Ideas

Therefore, if you want to have your automobile sales company, do this. You need a business code with auto and home supply stores, motor vehicle parts and accessories, or car washes written in the actual business code. That way, you can still operate your real business of “automotive sales” without actually being considered a risk factor.

There is nothing deceptive or dishonest about doing this.

Check the SIC code database for more information on these codes.

Demolish your funding problems with our rock-solid guide about 27 killer ways to get cash for your business. Get money even during the worst of a recession.

Standard Industry Classification Codes in a Recession: Choosing Lower-Risk Business Names

It goes beyond coming up with the perfect memorable name which is easy to spell and say. Even beyond evoking your company’s mission statement, there’s more. There’s also the matter of risk. Adding a risky business type into your business name will trigger financing denials.

For example, bail bonds are a restricted industry. So are many types of financing business types, and check cashing agencies. Hence naming your venture Chico’s Bail Bonds is a recipe for a delay if not an outright denial.

But it is the same as with choosing a lower-risk SIC code when two apply. There is nothing deceptive, illegal, or unethical in naming your company Chico’s.

Will this more generalized name guarantee funding for your business venture? Of course it won’t. But at least your business will not be automatically turned down before you can make your case for funding.

Standard Industry Classification Codes in a Recession: Takeaways

Choosing the incorrect Standard Industry Classification codes in a recession could end up costing your business. And it could get you labeled as high-risk. And this could directly impact your insurance premiums, your financing ability, and even your credit limit recommendations.

This small error of choosing the wrong SIC codes could cost your business in the future. Therefore, be sure to do your research before you select any SIC codes for your business. Because you might just end up choosing which SIC codes get you denied. And it does not have to be that way.

The post Standard Industry Classification Codes in a Recession – Which Get You Denied? appeared first on Credit Suite.

Get Business Credit Cards with no Personal Guarantee in a Business Recession

Get Business Credit Cards with no Personal Guarantee and Beat the Business Recession

Do you know how to beat the business recession? You get business credit cards with no personal guarantee? We do, and we are here to show you how. This method will work no matter what is happening with COVID-19.

Normally, getting credit isn’t easy.

You know what I’m talking about. You looked around the big banks, and then the medium-sized banks and then the small ones. And you tried the banks where you do business. And you also tried the others suggested by your friends or business associates. But after your long quest, you were unable to acquire any kind of a small business credit card without a personal guarantee.

Recession Period Funding

The number of American banks as well as thrifts has been decreasing slowly for 25 years. This is from consolidation in the marketplace as well as deregulation in the 1990s, lowering barriers to interstate banking. See: https://www.fundera.com/blog/happened-americas-small-businesses-financial-crisis-six-years-start-crisis-look-back-10-charts

Assets focused in ever‐larger banks is problematic for small business proprietors. Big financial institutions are much less likely to make small loans. Economic declines mean banks become extra careful with lending. Fortunately, business credit does not count on financial institutions.

The Baddish News – in the Business Recession and Beyond

There are over 500 distinct business credit cards around but less than fifty of them grant credit to companies in the absence of a personal guarantee. Complicating matters, these cards are not marketed or granted to all interested clients.

You can identify with the banks’ viewpoint. They don’t like risk so they attempt to diminish it by securing a business credit card. They accomplish this by asking you, the business owner, to guarantee payments from your private finances. So, this is in the event of business default.

If worst comes to worst, and as a guarantor or co-signer you are not able to pay the financial obligation, then your individual assets will be executed. If you provide a personal guarantee and don’t pay your business credit card bills, the bank can seize your accounts, your vehicle, your residential property, and your stocks.

And they can seize whatever else you may have used to guarantee that card.

But your standpoint, of course, is that you need to have this card to run your company better.

Get Business Credit Cards with no Personal Guarantee in a Business Recession: What You Can Do

The first thing you can do, and it’s easier said than done, is to have patience, and grow creditworthiness for your small business in the same manner that you have established your personal credit history. For most companies, this means paying your debts punctually, plus staying in business for a while, to develop a record of creditworthiness.

To get rid of the sticking point of a personal guarantee, you will have to demonstrate to the bank that your small business is solid. And you have to show that it can produce consistent earnings, and it has a substantial cash flow.

And the business needs to have a flawless payment history. If all the above can be shown, it will be a lot easier to find small business credit cards with no personal guarantee.

This is how to start establishing business credit without personal guarantee.

Get Business Credit Cards with no Personal Guarantee in a Business Recession: Here are Measures You Can Take:

Get Business Credit Cards with no Personal Guarantee in a Business Recession: Step 1

Set apart yourself from your company. This means you can help your cause by incorporating or becoming a limited liability company (LLC). This is a separate entity from the owner(s). And it means you must register for a separate identification number with Internal Revenue Service.

If your business is already an LLC you can skip this step altogether.

Find out why so many companies are using our proven methods to improve their business credit scores, even during a recession.

Get Business Credit Cards with no Personal Guarantee in a Business Recession: Step 2

Get several company credit cards with personal guarantees. The ones with high spending limits will be better. This is because they are the only ones reported to the business credit agencies. And you definitely want business credit cards that do not report to personal credit.

Make sure when you buy these products, they have the personal guarantee removal feature baked right in. Keep your credit utilization at one third of your credit limit or less. Pay in a timely manner every time.

Make sure to use these small business credit cards to make your business’s large orders. These purchases, in combination with a low revolving debt and of course on time payment will all help.

These actions will demonstrate to the bank that your company can control its financial resources well. It will also persuasively show that the profit your business yields is enough to take care of financial obligations and more.

This can lead to an unsecured business credit card no personal guarantee.

Details

Make certain that your personal credit history stays spotless. Eventually, you can file a personal guarantee removal request for these preexisting business credit cards. So, this is normally six months to one year.

The financial institution will hold an account review. But they could also consider your private credit report. If the bank approves your request then you have met your goal. If the bank says no, don’t lose hope. Just go to the next step.

No personal guarantee business credit cards can be yours.

Get Business Credit Cards with no Personal Guarantee in a Business Recession: Step 3

You can elect to make an application for third-party guaranteed lending. For example, this could be an SBA loan, for financing. Settling such a loan will help you develop your business credit score.

You can also make an application for a small business credit card from a particular retailer. These retail credit cards often do not require a personal guarantee. Chose a store where your company makes purchases often. And by all means do not forget about those prompt payments!

These retail credit cards, along with an SBA loan will raise your PAYDEX score from Dun and Bradstreet. If you are unfamiliar with the term, the quick version is that PAYDEX is for businesses what FICO is for people.

Retail credit cards will give you an extra advantage from the start. This is because they will decrease your personal liability for your company debt. These are business credit cards for new businesses without personal guarantee.

Ask the financial institution again to take off the personal guarantee clause. Or apply for new business credit cards without any personal guarantee. Yes, new business credit cards without personal guarantee are possible.

You can try this once you have gotten an 80 PAYDEX score under the above conditions. This is when your opportunity to get such credit cards will increase exponentially.

Another Technique to Get a Business Credit Card with no Personal Guarantee in a Business Recession

You can instead apply directly for those very few small business credit cards with no personal guarantees. You should apply for business credit card no personal guarantee. For example you can opt for Sam’s Club® Business MasterCard® or the Bremer Bank Visa® Signature Business Company Card.

Each specific card of this type asks you, the business owner, to satisfy a set of conditions. But these conditions will differ from one card to another. For a Sam’s Club ® Business MasterCard ® you need your business to bring in over $5 million in yearly sales.

The Bremer Bank Visa ® Signature Business Company Card is available for businesses with annual revenues between $1 million and $10 million. But at the same time other company credit cards with no personal guarantee attached call for an open Dun & Bradstreet file. Plus there can be other requirements to be met.

Be sure to consult the card issuer. And read through all the specifics of the promotion carefully.

Business Credit Cards with no Personal Guarantee in a Business Recession: Build Business Credit

Increase your chances big time by building business credit!

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

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

The Advantages

Considering that small business credit is distinct from individual, it helps to protect a small business owner’s personal assets, in case of legal action or business insolvency.

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

Another benefit is that even new ventures can do this. Visiting a bank for a business loan can be a formula for frustration. But building company credit, when done properly, is a plan for success.

Individual credit scores rely on payments but also additional components like credit usage percentages.

But for business credit, the scores actually only hinge on whether a small business pays its debts promptly.

The Process

Establishing business credit is a process, and it does not happen automatically. A small business will need to actively work to develop small business credit.

Having said that, it can be done easily and quickly, and it is much speedier than establishing personal credit scores.

Merchants are a big part of this process.

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

Starting with vendors is how to get easy business credit cards no personal guarantee.

Company Fundability

A business must be fundable to loan providers and merchants.

Hence, a company will need a professional-looking website and e-mail address. And it needs to have website hosting from a company like GoDaddy.

Plus, company telephone and fax numbers ought to have a listing on 411.com.

In addition, the company telephone number should be toll-free (800 exchange or the like).

A small business will also need a bank account dedicated strictly to it, and it needs to have every one of the licenses essential for running.

Licenses

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

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

Working with the Internal Revenue Service

Visit the Internal Revenue Service website and obtain an EIN for the small business. They’re totally free. Select a business entity like corporation, LLC, etc.

A company can start off as a sole proprietor. But they will probably wish to switch to a kind of corporation or an LLC.

This is in order to minimize risk. And it will make the most of tax benefits.

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

A corporate business card will be in the corporate name. Yes, that even includes corporate credit cards without personal guarantee. And it can even mean start up business credit cards without personal guarantee. This is how to get a credit card without credit.

Setting off the Business Credit Reporting Process

Begin at the D&B website and obtain a cost-free D-U-N-S number. A D-U-N-S number is how D&B gets a business in 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 small business. You can do this at www.creditsuite.com/reports. If there is a record with them, check it for correctness and completeness. If there are no records with them, go to the next step in the process.

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

Start with business credit cards without personal credit.

Vendor Credit

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

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

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

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

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

Soon, these will be business credit cards that do not require a personal guarantee.

Find out why so many companies are using our proven methods to improve their business credit scores, even during a recession.

Accounts That Don’t Report

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

You can always ask non-reporting accounts for trade references. And also credit accounts of any sort should help you to better even out business expenditures, thus making financial planning simpler. These are providers like PayPal Credit, T-Mobile, and Best Buy.

These won’t start out as small business credit cards without personal guarantee. But in time, they can be credit cards for businesses with no personal guarantee.

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 businesses like Office Depot and Staples.

Fleet Credit

Are there more accounts reporting? Then move onto fleet credit. These are companies such as BP and Conoco. Use this credit to purchase fuel, and to fix, and maintain vehicles. Only use your SSN and date of birth on these applications for verification purposes. For credit checks and guarantees, make sure to apply for business credit card no personal guarantee using the small business’s EIN.

By now, you’ll get a business credit card no personal credit check.

Find out why so many companies are using our proven methods to improve their business credit scores, even during a recession.

Cash Credit

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

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

Make sure to use the business EIN to apply for business credit card without personal guarantee. Then you will get a business credit card no personal guarantee.

A Word about Business Credit Building in a Business Recession

Always use credit sensibly! Never borrow beyond what you can pay off. Monitor balances and deadlines for repayments. Paying in a timely manner and fully will do more to boost business credit scores than almost anything else.

Establishing small business credit pays off. Excellent business credit scores can help a business get a business loan no personal guarantee. Your lending institution knows the business can pay its financial obligations. They recognize the small business is authentic.

The company’s EIN links to high scores and loan providers won’t feel the need to request a personal guarantee.

Business credit is an asset which can help your business for many years to come. It’s really the only way to get a business credit card no personal guarantee required.

Get Business Credit Cards with no Personal Guarantee in a Business Recession – These Could be Yours

With patience and over time, you can get business credit cards with no personal guarantee. All you need to have is what the banks ask. That is, a dependable small business generating consistent profit, with a strong cash flow. And then, you will have what it takes.

This is how to get business credit card without personal guarantee. The COVID-19 situation will not last forever!

The post Get Business Credit Cards with no Personal Guarantee in a Business Recession appeared first on Credit Suite.

Don’t Let Bad Credit Sink Your Business: Recession Vendor Credit Can Pull You Out of the Quicksand

How Recession Vendor Credit Can Be a Lifeline Out of Mud and Muck

You’re trying to sleep but anxiety is creeping in. You can’t shake the cold feeling in the pit of your stomach. The recession hit and you are about to start sinking fast. What can you do? Is there any hope? Your personal credit can only hold so much, and it won’t last for long the way things are going. The business credit situation isn’t great either. You need to find a vine so you can pull yourself out of this mess. That is exactly what recession vendor credit can do, if you know how to use it.

Bad business credit is like quicksand. It can pull you down and choke the life out of your business before you can think. The more you struggle the deeper you sink. How can you possibly pull your business out of this sticky situation? Reach for the vine of recession business credit. Not only can it help rebuild and repair damaged business credit, it can start you on the path to stronger business credit than you have ever had. If you don’t have business credit, then recession vendor credit can help you establish it.

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!

The vendor credit tier of business financing offers terms that count as credit, and reports payments to credit agencies. This allows you to establish and build business credit that will get you out and keep you away from more business finance quicksand.

To fully understand the vendor credit tier however, you need to know what it is, and how it fits in to the other business financing tiers.

The Recession Vendor Credit Vine Hangs Low

If you are sinking in quicksand the first thing you have to do is stop struggling. The more you struggle the faster you sink. You do not reach for vines and branches that are too high. The low hanging vine that is easy to get to is really the only option you have. Recession vendor credit is easy to recognize because, unlike the other credit tiers, it is going to be easy to grab a hold of from right where you are.

Start Vendors

This is a low hanging vine that you need to grab to build your business credit. Even if you do not have business credit at all when you first start, it will still work. In fact, it may work better from the beginning. However, this vine can pull you out of a bad credit mess as well.

Starter vendors are the businesses from which you purchase the things you use day to day in your own business. It may be inventory, raw materials, office supplies, or any number of things. They offer terms such as net 30, meaning you get 30 days from the date of purchase to pay for the items purchased. Some vendors offer net 15, net 60, or even net 90.

In the end, they report your payments, or lack thereof, to credit agencies. The beauty is they do not require a credit check typically, meaning if you handle things properly, they offer an opportunity to build business credit from the ground up.

Store Credit

Once there are 3 or more vendor trade accounts reporting to at least one of the CRAs, you can start to reach for some of the higher vines, like store credit. These are service providers like Office Depot and Staples.

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

There are several options that report to various credit reporting agencies. For example, Lowe’s reports to D&B, Equifax and Business Experian. They want to see a D-U-N-S and a PAYDEX score of 78 or more. If you have handled your recession vendor credit properly, this will be no problem.

Fleet Credit

Are there more accounts reporting? Then you can reach for the next higher vine, fleet credit. These are companies like BP and Conoco. Use this credit to purchase fuel and vehicle maintenance. Just use your Social Security Number and date of birth on these applications for verification purposes. For credit checks and guarantees, make sure to apply using the company’s EIN.

Shell is an example of a company in this tier. They report to D&B and Business Experian. They want to see a PAYDEX Score of 78 or more and a 411-business phone listing.

Shell might say they want a certain amount of time in business or revenue. However, if you already have adequate recession vendor credit, that won’t be necessary. You will still be able to get approval.

General Credit Cards

Have you been responsibly handling the credit you’ve gotten up to this point? Then keep reaching for higher vines and get yourself out of the muck for good. General credit cards include businesses such as Visa and MasterCard. Only use your Social Security Number and date of birth on these applications for verification purposes. For credit checks and guarantees, use your EIN.

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!

Additionally, they want you to have an established company.

How to Make Starter Credit Work for Your Business

Using recession vendor credit doesn’t help you at all if you are operating under your personal credit. You have to establish your business as its own entity before it can build its own credit. It’s much easier to stay out of the quicksand, but if you do fall in, knowing what to do is essential. It also helps if you have been working out and have a solid core to help pull yourself up. When it comes to business credit, these are the things you must do to build your core:

Incorporate your business (or at least begin operating under a DBA)

List separate business contact information in directories

Obtain an EIN and D-U-N-S number

Open a bank account in your business name and run all business expenses through that account.

These steps will help you establish your business as an entity with finances separate from your own. That means vendors will report credit information in your business name. Thus, your business credit will be born. This is the foundation of your strong core and what will help you begin the process of pulling yourself out of a sticky credit situation.

Now, who are these vendors that can save you? We picked a few of the best to highlight, but the list isn’t exhaustive by any means.

Grainger Industrial Supply

Grainger sells power tools, pumps, hardware and other things. In addition, they can handle maintenance of your auto fleet. You need a business license and EIN number to quality, as well as a D-U-N-S number from Dun & Bradstreet.

Quill Office Supplies

Quill is the ultimate starter vendor . They sell office supplies as well as cleaning and packaging supplies. Products range from office furniture and printer ink to snacks and coffee.

Uline Shipping Supplies

Uline reports to Dun & Bradstreet and carries shipping boxes, trucks, dollies, janitorial supplies, and more. Initially, you may need to prepay. After that, they are likely to approve you for Net 30 terms.

Behalf.com

Behalf is way of getting paid through an app, but they also offer funding. The more you have your customers pay you through Behalf, the more likely they are to offer you favorable terms when it comes to funding.

Avoid the Quicksand All Together

Once you are out of muck and safe, don’t jump right back in. Stay on solid ground and on top of your business credit. How do you do this when quicksand can sneak up on you so quickly? It’s not as hard as it sounds.

If you are working with recession vendor credit, be certain to make payments on time or early. Then, monitor your credit. When you see things moving in the right direction, keep moving up the vines and building strong business credit.

Don’t become a victim of credit agency mistakes. If you see a problem on your report, signal for help. Let them know about the mistake in writing, give them the correct information, and provide documentation. Don’t send originals though. Be sure to make copies and keep the originals for yourself.

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!

You should note that it is isn’t as easy to monitor business credit as it is to monitor personal credit. You can get a free personal credit report annually, and you can monitor your score and changes in your report through several free websites. It costs money to monitor your business credit score. There is no way around it. However, we can help you monitor business credit at Experian and D&B for 90% less than it would cost you with the credit reporting agencies. Find out how at www.creditsuite.com/monitoring.

Grab the Recession Vendor Credit Vine: Don’t Let Bad Business Cause Your Business to Sink

If you know it’s there and are watching out for it, quicksand is totally avoidable. Unless, of course, you find yourself in a COVID-19 situation. Then, you may very likely be pushed in before you even know what is happening. Bad business credit is also avoidable and fixable, even in a recession. It may take some time, but you can establish and build great business credit following the process, starting with recession vendor credit.

Start with starter vendors and work your way up to traditional financing. If you trust the process, your business can thrive. Be careful not to move too fast. Start slow. If you move to quickly you could be sinking before you know it. When it comes to building business credit, slow and steady wins the race.

What does it mean to take it slow? Don’t bite off more than you can chew. Do not take on more credit than you can handle. Know your limits, and pay attention to the market. If you move to fast when trying to get out of quicksand you are just going to sink faster. You have to stop struggling and move with slow, controlled movements. Any progress is progress toward where you want to be, meaning you are getting closer no matter how slowly you are moving. Just keep moving in the right direction.

The same is true of building a business. You don’t have to move quickly, you just have to keep moving in the right direction.

The post Don’t Let Bad Credit Sink Your Business: Recession Vendor Credit Can Pull You Out of the Quicksand appeared first on Credit Suite.

4 Lifesaving Ways to Get Fast Working Capital in a Recession

The COVID-19 pandemic caught the world by surprise and turned the economy upside down. If you are a business trying to make it during this time, we can help. The Federal government has approved funding through The CARES Act, including the Paycheck Protection Plan. In addition, many states and local organizations are offering their own COVID-19 relief options. If you need funds fast, keep reading for ways to get fast working capital in a recession.

Don’t Drown: Get Fast Working Capital in a Recession Regardless of Credit

If you are drowning, you need help fast. There is no time to learn how to swim if you don’t already know. You can’t learn how to float in a heartbeat. You need a life preserver. The same is true if you find yourself in need of fast working capital in a recession. You can’t learn to swim at that point. You need immediate help, and once you are safe, then you can focus on longer term solutions.

However, fast working capital in a recession isn’t easy to come by. In fact, it can seem nearly impossible. There is hope though. You can escape from the recession storm, but it is going to take a lot of work. If you move in the right direction and grab the life preserver, I am about to toss you, survival is possible.

While the goal is to never get back into that kind of danger again, you have to actually get out of the water alive first. Here’s how.

Invoice Factoring for Fast Working Capital in a Recession

Not only is invoice factoring the fastest way to cash, it is also an option that depends very little on your credit, personal or business. In fact, sometimes there isn’t even a minimum credit requirement. They may pull a credit score, but they make decisions based more upon the strength of your invoices.

The lender will gather information to help them determine the likelihood of the invoices being repaid. If they find that the invoices are strong, they will lend money based on the total amount of the invoices minus a premium. The borrower can usually either repay the loan or the lender can keep the invoices and collect from them.

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Here are a couple of options for creditors that offer invoice factoring without a minimum credit score or despite a low credit score.

Fundbox

Fundbox offers invoice financing for amounts less than $100,000. There is no minimum credit score, and there are options for a 12- week or 24-week repayment term.

BlueVine

If you have a larger amount in open invoices, like up to $5 million, you can get invoice financing from BlueVine.

Merchant Cash Advance

This is very similar to invoice factoring, but the funds are based on average credit card sales. For example, if you average $20,000 in credit card sales per year, a merchant cash advance would allow you to access that cash at a premium.

Here is how it works. If $20,000 is the average, you would get maybe $16,000 of that up from the creditor. Then, they would take a percentage of your credit card sales, usually weekly, until the whole $20,000 was paid off.

It isn’t perfect, but it is definitely fast, and therefore an option for fast working capital in a recession.

Working Capital Loans for Fast Working Capital in a Recession

If you need really working capital in a recession, invoice factoring or a merchant cash advance is your best bet. Of course, that only works if you have credit cards sales or invoices to factor. Another option, which takes a little more time, is to apply for a working capital loan from an alternative lender.

Some alternative lenders pull a credit report, but they have a low minimum score requirement. For example, Fundbox offers working capital loans to businesses that have been in operation for at least 3 months and have at least $50,000 in revenue. They lend amounts up to $100,000, and there is no credit check

Kabbage offers something similar if you have been in business for at least 1 year and have $50,000 in revenue. They will lend up to $250,000. There is no minimum credit score here either, but most approvals have over 500. You also have to have either a business checking account or use and online payment platform.

Quaterspot will lend up to $250,000 if you have been in business for at least one year and have at least $200,000 in annual revenue. They will do a soft credit pull, but it does not affect your credit. The minimum score is 550.

Business Credit Cards for Fast Working Capital in a Recession

Even if your personal credit isn’t fabulous, you can get fast working capital in a recession with business credit cards. How? You can do it with your business credit. That is, your business credit score. It is totally separate from your personal credit score.

If you have business credit you can access those cards for fast working capital in a recession if needed. Of course, credit cards are not an ideal source of working capital, but if you need a way out of the waves, they work well as a life preserver.

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Credit Line Hybrid

A credit line hybrid is revolving, unsecured financing. It allows you to fund your business without putting up collateral, and you only pay back what you use. It even works for startups.

What are the Qualifications?

How hard is it to qualify? It’s probably easier than you think. You do need good personal credit. That is, your personal credit score should be at least 685. In addition, you can’t have any liens, judgments, bankruptcies or late payments. Also, in the past 6 months, you should have less than 5 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.

How to Get Business Credit

If you are not in trouble yet, start now establishing and building business credit so that when hard times come, are ready to meet them head on. Even if you are already in trouble, find one of the other options for fast working capital in a recession and go ahead and get busy working on your business credit. You can start at any time, even if you are in the middle of a recession storm. Here’s how.

Establish Business Credit

The first step in getting business credit is to establish your business as a separate entity from yourself. This isn’t hard at any point, but it is a lot easier if you start at the beginning. Start by ensuring your business has its own contact information. It cannot have the same address, telephone number, or email address as you. The telephone number needs to be toll-free, and the email address should have the same URL as your business website. Yes, you need a website. More on that later.

Next, set up your business as a formal corporation. It needs to be either a corporation, S-corp, or LLC. Operating as a sole proprietor or partnership will not suffice for business credit purposes.

After this, you need to apply for two different identifying numbers. The first is an EIN. This is similar to a social security number, but for your business. You can apply for free on the IRS website. After that, you need a DUNS number. This is a number assigned by Dun & Bradstreet, the largest and most often used business credit reporting agency. Apply for it for free on their website.

Set Up a Separate Bank Account

This not only helps to separate your business from yourself, but it also helps keep business and personal finances separated. It will be easier to track business expenses and income, which is a huge time saver come tax time.

Work with Starter Vendors

These are vendors that will extend net 30 terms on invoices and report payments to the credit agencies without checking your credit. You may have to make a few initial purchases, and some have a minimum time in business or revenue requirement. Companies in that will do this are the best place to start when it comes to getting payments reporting to establish business credit.

Beyond Starter Vendors

Once you have a few starter vendor accounts reporting you will be able to apply and get approval for other credit cards, which can be a source of fast working capital in a recession. The store cards are the next step. These include credit cards connected to specific retail stores such as Amazon, Best Buy, and Office Depot.

After enough of these are reporting to the credit agencies, you can apply for fleet credit cards. They include cards from Fuelman, WEX, and others that can be used for fuel as well as vehicle repair and maintenance.

Eventually, you will have enough accounts reporting that you can apply for, and get approval for, cards general use credit cards. This is where you can really access significant fast working capital in a recession if necessary. Cards in the cash credit tier include MasterCard and Visa cards that are not attached to a specific store or limited by the type or location of purchase.

Like I said, even if you do not have business credit in place before the recession hits, this process will still work. You can use it at any time, but if you already have business credit in place, it will be easier and faster to use it to access fast working capital in a recession.

An Ounce of Prevention…Always Prepared

Once you are out of the water, don’t get back in until you know how to handle yourself. Learn how to swim, take a survival class, and be prepared.

The way you do this is by establishing and building strong business credit. Not only will this keep you out of choppy water, but it can turn that same churning nightmare into beautifying, relaxing, calm waters.

Here is how you start.

Figure Out What Happened

Did you fall overboard or were you pushed? If hard times just sent you flying over the rails and into the churning waves, don’t sweat it. It happens. Just grab a hold of the first floating object you can find, hold on for dear life, and make it through. Use the fast working capital in a recession and you will come out on the other side.

If, however, your peril was caused by foolish decisions, poor planning, or some undiscovered fraud, you are going to have some work to do when you get out. Damage control is in order. Figure out what happened and take steps to ensure it doesn’t happen again.

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

Learn to Read Financials

The best way to stay on top of your finances is to understand your financial statements. There is more to it that just revenue, expenses, and assets. Of course you need to understand profit, but learn to look closer. Figure out the real story your financial statements are telling you.

There is a lot to this, but the easiest and quickest way to start is to do a comparison. Take a look at what sales, profit, and expenses looked like at the same time last year, last quarter, and last month. If you see a significant change, look into it. You may find something easily explained, such as an increase in cost or a decline in sales that is standard at that time of the year.

You may, however, find something that is causing a problem. Has a cost increased significantly enough that you need to shop around for a better price? Is there a cash leak that you cannot get your hands around? It could be fraud.

Maybe receivables haven’t turned over at all in a significant amount of time. Consider increasing collection efforts or revisiting the credit policy. Learning how to read your financial statements and understand what they are telling you will help you stay out of the deep end.

Evaluate Processes

Look at your processes. Is there a more efficient way to do things? It isn’t uncommon to find that you need to make some changes during an economic downturn. Maybe you need to adjust the hours you are open or make some staffing changes. Take a fresh look at your pricing model and make any decisions that need to be made.

Use Fast Working Capital in a Recession Wisely

Whether you turn to invoice factoring, merchant cash advances, working capital loans, or business credit cards, you need to handle the working capital you access during a recession wisely. Make payments consistently on-time, and don’t blow it. It is best to have a plan and a budget in place for the funds before you have it in hand.

The post 4 Lifesaving Ways to Get Fast Working Capital in a Recession appeared first on Credit Suite.