Fundry Capital Review

Yellowstone Capital no longer exists! They are now Fundry Capital. We reviewed Fundry Capital, one of several lenders in the online space. They are an ISO (independent sales organization).

We look at the specifics and drill down into the details.

Fundry Capital: Background

Fundry Capital is located online here: https://fundrycap.com. Their physical address is in Jersey City, NJ. The firm’s location is nowhere on their website. And it was a chore to find it on LinkedIn.

You can call them at: (877) 237-2297. Also, you can contact them at: info@fundrycap.com.

Their About page is simply a part of their home page – and it is none too informative.

In 2015, their predecessor Yellowstone Capital had in a $1.5 million deal which, at the time, was their largest ever deal.

Fundry is also related to Green Capital Credit. See: https://greencapitalcredit.com. There’s not a lot of information on the Green Capital site, and their blog stopped being updated in September. Of which year? It is impossible to tell from that website.

Fundry Capital: The Details

Fundry offers loans for what is called B-F credit. These appear to be sub-prime loans. Appear? It is frustratingly tough to find specifics on Fundry Capital’s offerings.

These are types of alternative, or non-conforming, loans, often for borrowers with poor credit.

Non-conforming loans are more risky than conforming ones and are alphabetically classified as according to risk. So non-conforming C loans are less risky than D loans, for example.

Non-conforming Loans

There are far fewer lenders who want to make non-conforming loans. Hence there is less competition for these borrowers.

This causes interest rates to be higher. Also, most lenders view these borrowers as being riskier and more desperate.

That perception also, understandably, pushes up the interest rates.

Sometimes alternative loans can be seen as predatory. Borrowers in such a situation should always be careful that there are no significant prepayment penalties. Those are common with non-conforming loans, and they can prevent you from refinancing.

Business Capital (Merchant Cash Advances)

This online lender offers merchant cash advances – if you dig deeply into their LinkedIn profile. MCAs are not mentioned anywhere on the Fundry Capital website. They will handle high-risk borrowers. You can get same-day funding for approved merchant cash advances.

Fundry Capital Fees

Fundry’s fees are nowhere to be found, either on their website or LinkedIn. In addition, the origination fee and APR are not known. This is because their website is not highly informative.

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

Fundry Capital Advantages

Advantages include fast approvals and acceptance of high-risk borrowers. The company boasts that:

We fund thousands of deals for companies with B-F credit. Found a deal that others say is unfundable? Fundry will get it done.

Fundry Capital Disadvantages

Disadvantages include a lack of transparency regarding fees, or really anything else. Their website has extraordinarily little information. However, a high-risk borrower may have few other options. Also, any borrowers in these categorizes should know the interest rates will be high.

And this is by definition. So don’t blame Fundry for that.

An Alternative?

Given that corporate credit is separate from consumer, it helps to secure an entrepreneur’s personal assets, in case of litigation or business insolvency. Also, with two separate credit scores, a small business owner can get two different cards from the same merchant. This effectively doubles purchasing power.

Another benefit is that even startups can do this. Visiting a bank for a business loan can be a formula for disappointment. But building corporate credit, when done properly, is a plan for success.

Personal credit scores depend on payments but also various other factors like credit utilization percentages. But for company credit, the scores truly just depend on whether a company pays its bills promptly.

The Process

Building business credit is a process, and it does not occur automatically. A small business has to actively work to develop company credit. Nevertheless, it can be done readily and quickly, and it is much faster than building individual credit scores.

Merchants are a big component of this process.

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

Corporate Fundability

A business has to be genuine to loan providers and merchants. That is why, a small business will need a professional-looking web site and email address, with website hosting from a company such as GoDaddy.

Also business telephone and fax numbers ought to have a listing on ListYourself.net.

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

A business will also need a bank account dedicated solely to it, and it has to have all of the licenses essential for running. These licenses all have to be in the perfect, appropriate name of the corporation, with the same company address and telephone numbers.

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

Working with the Internal Revenue Service

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

A small business can begin as a sole proprietor. But they will more than likely want to change to a variety of corporation or partnership to lessen risk and optimize tax benefits.

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

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

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

Additionally, according to the IRS, by having this arrangement there is a 1 in 7 probability of an IRS audit. There is a 1 in 50 possibility for corporations! Prevent confusion and substantially reduce the odds of an IRS audit at the same time.

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

Starting Off the Business Credit Reporting Process

Begin at the D&B website and get a totally free DUNS number. A DUNS number is how D&B gets a small business into their system, to produce a PAYDEX score. If there is no DUNS number, then there is no record and no PAYDEX score.

Once in D&B’s system, search Equifax and Experian’s websites for the company. You can do this at https://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 manner, Experian and Equifax will have something to report on.

Trade Lines

First you ought to build trade lines that report. This is also referred to as vendor accounts. 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 obtaining revolving store and cash credit.

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

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

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

Details

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

To kick off your business credit profile the right way, you should get approval for vendor accounts that report to the business credit reporting bureaus. As soon as that’s done, you can then make use of the credit.

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

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

Revolving Store Credit

Once there are 3 or more vendor trade accounts reporting to at least one of the CRAs, progress to revolving store credit. These are service providers which include Office Depot and Staples.

Use the corporation’s EIN on these credit applications.

Fleet Credit

Are there more accounts reporting? Then move onto fleet credit. These are businesses such as BP and Conoco. Use this credit to purchase fuel, and repair and maintain vehicles. Make sure to apply using the small business’s EIN.

Cash Credit

Have you been responsibly handling the credit you’ve up to this point? Then move to more universal cash credit. These are businesses such as Visa and MasterCard. Keep your SSN off these applications; use your EIN instead.

If you have more trade accounts reporting, then these are doable.

Monitor Your Business Credit

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

We can help you monitor business credit at Experian and D&B for 90% less, here. And update the details if there are mistakes or the details is incomplete.

Challenging Inaccuracies

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

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

Disputing credit report mistakes also means you precisely detail any charges you dispute. Make your dispute letter as crystal clear as possible. Be specific about the issues with your report. Use certified mail so that you will have proof that you sent in your dispute.

A Word about Business Credit Building

Always use credit smartly! Don’t borrow beyond what you can pay off. Monitor balances and deadlines for repayments. Paying off in a timely manner and in full is vital. It will do more to boost business credit scores than nearly anything else.

Building corporate credit pays. Great business credit scores help a small business get loans. Your loan provider knows the business can pay its debts. They recognize the company is authentic.

The small business’s EIN links to high scores. And loan providers won’t feel the need to call for a personal guarantee.

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

Fundry Capital Takeaways

Any business owner should always be wary of funding sources which are not transparent with their fees. Maybe Fundry Capital online lending reveals all once you apply. But why should any business owner have to wait?

Companies which will work best with Fundry are high-risk borrowers. This is because they may have few other options for any loans or other funding.

However, other borrowers should press for more transparency. Or they should be ready to look elsewhere if Fundry is not forthcoming.

Because this should always be basic and easy to find information. No prospective borrower should ever have to glean through a ton of LinkedIn profiles to find the tiniest nugget of information.

A Word to the Wise

And finally, as with every other lender, always read the fine print and do the math. Go over the details with care. Better yet, work with a financial professional with no affiliation with the lender. Decide if this option will be good for you and your company.

In addition, consider alternative financing options that go beyond lending. These are options such as building business credit.

However, only you can best decide how to get the money you need to help your business grow.

The post Fundry Capital Review appeared first on Credit Suite.

Seize the Day with Our OnDeck Review for Terrific Recession Financing

Avoid Business Funding Pitfalls and Let Our OnDeck Review Guide You

Itching for funding? Our OnDeck review helps you make your best possible business decision.

OnDeck is one of several online lending companies. They offer short term loans and lines of credit. We look at the specifics and drill down into the details.

Recession Age Financing

The number of US banks as well as thrifts has been decreasing progressively for a quarter of a century. This is coming from consolidation in the marketplace in addition to deregulation in the 1990s, lowering obstacles to interstate banking. See: fundera.com/blog/happened-americas-small-businesses-financial-crisis-six-years-start-crisis-look-back-10-charts

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

OnDeck Review: Background

OnDeck is located online here: www.ondeck.com. Their American physical address is:

1400 Broadway
New York, NY 10018.

You can call them at: (888) 269-4246. You can email them at: customerservice@ondeck.com. There is no contact page but you can chat with customer service directly on their site. They have been in business since 2007.

OnDeck Online also has a Canadian division, located online here: en-ca.ondeck.com. There is, in addition, an Australian division, located online here: www.ondeck.com.au. There is even a French version of the Canadian site.

OnDeck also receives some small business loan referrals from Prosper. See: www.prosper.com/borrower/#/prospect/pre-registration.

They will not work with certain industries. See: https://www.ondeck.com/restricted-industries.

OnDeck Review: Term Loans

Amounts available range from $5,000 – $500,000. You can get terms of 3 to 36 months.

Your company must have annual revenue of $100,000 or more. Your own personal FICO score has to be 600 or better. And your company must be in business for 1 year or more.

OnDeck Review: Fees

Interest rates start at 11.89% annual percentage rate (APR). The total cost of a short term loan will vary based on a number of factors, including personal and business credit scores, time in business and annual revenue and cash flow.

OnDeck Review: Lines of Credit

Get a line of credit from OnDeck for $6,000 to $100,000. The term is 12 months.

Withdraw up to $10,000 with Instant Funding.

Your company must have annual revenue of $100,000 or more. Your own personal FICO score has to be 600 or better. And your company must be in business for 1 year or more.

OnDeck Review: Fees

Interest rates start at 10.99% annual percentage rate (APR). The total cost of a line of credit will vary based on a number of factors, including personal and business credit scores, time in business and annual revenue and cash flow.

OnDeck Review: Advantages

Advantages include the rather low FICO score requirement for term loans. Plus there is some flexibility when it comes to term lengths. In addition, few United States-based online lenders will loan outside of the country. But OnDeck will loan to Canadian and Australian businesses.

OnDeck Review: Disadvantages

Disadvantages are the maximum APR for both term loans and lines of credit are somewhat high. Therefore, if your company cannot pay back a loan or line of credit, it could potentially sink you financially. In addition, OnDeck requires a personal guarantee.

OnDeck Review: Upshot

Companies helmed by entrepreneurs with bad personal credit would do well to take a second look at the OnDeck online lending company. However, with qualification comes a steep APR price tag and the requirement of a personal guarantee. This is somewhat understandable.

Borrowers in Canada and Australia can also work with OnDeck, although Canadian borrowers also have NUGROWTH/IBIS (www.nugrowthcapital.com) as an option, although NUGROWTH/IBIS has a higher minimum personal FICO score requirement.

Entrepreneurs would probably do better building business credit and/or trying for unsecured business financing or microloans if their financial requirements are small.

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

Building Business Credit Instead

Company credit is credit in a small business’s name. It doesn’t connect to a business owner’s consumer credit, not even when the owner is a sole proprietor and the solitary employee of the company. Accordingly, an entrepreneur’s business and personal credit scores can be very different.

The Benefits

Business credit helps to safeguard an entrepreneur’s personal assets, in case of court action or business bankruptcy. Also, with two distinct credit scores, an entrepreneur can get two separate cards from the same vendor.

This effectively doubles purchasing power.

Another benefit is that even startups can do this. Heading to a bank for a business loan can be a recipe for disappointment. But building business credit, when done right, is a plan for success.

Individual credit scores are dependent on payments but also various other elements like credit use percentages. But for company credit, the scores really only hinge on whether a corporation pays its invoices in a timely manner.

The Process

Growing company credit is a process, and it does not occur without effort. A business will need to actively work to develop business credit. Having said that, it can be done readily and quickly, and it is much more efficient than establishing individual credit scores.

Merchants are a big aspect of this process.

Carrying out the steps out of sequence will lead to repetitive denials. No one can start at the top with corporate credit. For example, you can’t start with store or cash credit from your bank. If you do you’ll get a rejection 100% of the time.

Business Credibility

A company has to be genuine to lenders and vendors. Consequently, a business will need a professional-looking website and email address, with website hosting bought from a company such as GoDaddy.

Also business telephone and fax numbers must have a listing on ListYourself.net.

At the same time the company telephone number should be toll-free (800 exchange or the like).

A business will also need a bank account devoted purely to it, and it has to have every one of the licenses necessary for operation. These licenses all must be in the identical, accurate name of the company, with the same company 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 business. They’re totally free. Choose a business entity such as corporation, LLC, etc.

A business can begin as a sole proprietor. But they will more than likely want to change to a form of corporation or partnership to reduce risk and take full advantage of tax benefits.

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

Sole Proprietors Take Note!

If you run a business as a sole proprietor, then at the very least be sure to file for a DBA (‘doing business as’) status.

If you do not, then your personal name is the same as the company name. As a result, you can end up being personally responsible for all corporate financial obligations.

Also, per the Internal Revenue Service, with this arrangement there is a 1 in 7 chance of an IRS audit. There is a 1 in 50 probability for corporations! Prevent confusion and drastically lower the odds of an Internal Revenue Service audit simultaneously.

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

Setting off the Business Credit Reporting Process

Begin at the D&B web site and obtain a totally free DUNS number. A DUNS number is how D&B gets a small business in their system, to produce a PAYDEX score. If there is no DUNS 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 corporation. You can do this at www.creditsuite.com/reports. If there is a record with them, check it for accuracy and completeness. If there are no records with them, go to the next step in the process.

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

Trade Lines

First you should build trade lines that report. This is also called vendor accounts. 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 start getting revolving store and cash credit.

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

But first of all, what is trade credit? These trade lines are credit issuers who will give you preliminary credit when you have none now. Terms are ordinarily Net 30, rather than revolving.

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

Details

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

To begin your business credit profile the right way, you ought to get approval for vendor accounts that report to the business credit reporting agencies. As soon as that’s done, you can then make use of the credit.

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

Vendor Credit is Terrific!

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

But you may have to apply more than one time to these vendors, and you may have to purchase some things you do not really need, to confirm you are reliable and will pay on time. Consider giving nonessential items to charity.

Revolving Store Credit

Once there are 5 to 8 or more vendor trade accounts reporting to at least one of the CRAs, progress to revolving store credit. These are companies such as Office Depot and Staples. These companies are more likely to have supplies you need.

Use the corporation’s EIN on these credit applications.

Fleet Credit

Are there 8 to 10 accounts reporting? Then move onto fleet credit. These are businesses like BP and Conoco. Use this credit to buy, repair, and maintain vehicles. Make sure to apply using the corporation’s EIN.

Cash Credit

Have you been responsibly handling the credit you’ve up to this point? Then progress to cash credit. These are businesses such as Visa and MasterCard. Keep your SSN off these applications; use your EIN instead.

These are businesses like Walmart and Dell, and also Home Depot, BP, and Racetrac. These are normally MasterCard credit cards. If you have 14 trade accounts reporting, then these are feasible.

Monitor Your Business Credit

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

We can help you monitor business credit at Experian and D&B for 90% less. Update the data if there are mistakes or the information is incomplete.

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

Contesting Inaccuracies

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

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

Disputing credit report inaccuracies also means you specifically detail any charges you dispute. Make your dispute letter as understandable as possible. Be specific about the issues with your report. Use certified mail so that you will have proof that you sent in your dispute.

A Word about Building Business Credit

Always use credit responsibly! Don’t borrow beyond what you can pay off. Keep track of balances and deadlines for repayments. Paying on schedule and fully will do more to raise business credit scores than virtually anything else.

Growing corporate credit pays. Excellent business credit scores help a company get loans. Your lending institution knows the small business can pay its debts. They recognize the small business is bona fide.

The small business’s EIN connects to high scores, and credit issuers won’t feel the need to call for a personal guarantee.

Business credit is an asset which can help your corporation for years to come. Learn more here and get started toward growing business credit.

OnDeck Review: Some Final Thoughts

And finally, as with every other lending program, whether online or offline, remember to read the fine print and do the math.

Go over the details with care, and decide if this option will be good for you and your company. In addition, consider alternative financing options that go beyond lending. And these include building business credit.

This is so you can best decide how to get the money you need to help your business grow.

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

The post Seize the Day with Our OnDeck Review for Terrific Recession Financing appeared first on Credit Suite.

Do Nothing Until You Read Our LenCred Recession Finance Review

Everything You Need to Know About LenCred – Don’t Be Afraid to Ask!

LenCred is one of several lending companies in the online space. They are based in Bentonville, AR. Check out our LenCred Recession Finance Review.

LenCred works with startup and established business owners who need between $25,000 – $150,000 in financing to start, build, or grow their companies. They do NOT have any revenue requirements and the companies who work best with them have between $0 and $250,000 in annual revenues. That’s their first requirement to be a good fit.

We look at the specifics and drill down into the details.

LenCred Recession Finance: Background

LenCred is located online here: lencred.com. Their physical address is in Bentonville, Arkansas. You can call them at: (479) 268-4353 (Arkansas) and (888) 783-1503 (toll free). Their contact page is here: lencred.com/contact. You can email them at: info@lencred.com.

LenCred Recession Finance: Unsecured Business Credit Lines

There is a $50,000 guaranteed minimum for a line. You can get $25,000 – 150,000 or more. You will need solid credit, but it does not have to be perfect. Keep your personal credit utilization rate under 30%.

Their unsecured business credit lines allow small business owners to build corporate credit.

LenCred Recession Finance: Fees

Various sources report 6%, 8%, or 9% fees. However, there are currently no fees listed on the site.

LenCred Recession Finance: SBA Loans

They do not get SBA Loans or give them out. Rather, they can help companies apply for these. The LenCred team has the knowledge and experience to guide a business owner to the right SBA loan program and approved SBA lender. If they don’t qualify for an unsecured business line of credit, an SBA loan may be the next best option.

LenCred Recession Finance: Equipment Financing

LenCred has both equipment leases and loans. This lender specializes in helping entrepreneurs and small business obtain capital in the simplest way possible. And equipment financing is one of those ways.

$1,000 – $5 million is available. However, this lender does not seem to actually provide equipment financing.

LenCred Recession Finance: Fees

Various sources report 6%, 8%, or 9% fees. However, there are currently no fees listed on the site.

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

LenCred Recession Finance: Advantages

Advantages are that unsecured business funding is often a great way for startups to get the money they need, and they do not seem to have an annual revenue requirement unless you have bad personal credit. This particular lender also seems to be flexible when it comes to borrowers with less than stellar credit.

LenCred Recession Finance: Disadvantages

The biggest disadvantage is that this lender does not clearly list fees – so do they charge them, or not? Another disadvantage is that entrepreneurs who have been relying on their personal credit cards to fund their businesses are probably going to have too high a credit utilization rate to qualify for LenCred’s offerings.

Big Disadvantage

Another basic disadvantage is that, as of right now, LenCred is not a part of the SBA Paycheck Protection Program as a lender. Will they be? Currently, online lenders are generally not a part of that program.

An Important Alternative to LenCred Recession Finance – Our Credit Line Hybrid

Our credit line hybrid is a form of unsecured business financing. This program helps clients get funding based strictly on personal credit quality. Our lenders will not ask for financials, bank statements, business plans, resumes, or any of the other burdensome document requests that most conventional lenders demand.

If your personal credit score is at least 680, then you can potentially qualify for $5,000 – $150,000. And we don’t even ask for you to provide collateral.

A Terrific Alternative to LenCred Recession Finance – Establishing Business Credit

This is credit in a business’s name. It doesn’t link to an entrepreneur’s consumer credit, not even if the owner is a sole proprietor and the solitary employee of the small business.

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

The Advantages

Since company credit is distinct from personal, it helps to protect a business owner’s personal assets, in the event of legal action or business bankruptcy.

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

Another benefit is that even startup companies can do this. Visiting a bank for a business loan can be a formula for frustration. But building small business credit, when done correctly, is a plan for success.

Personal credit scores rely on payments but also other elements like credit usage percentages.

But for small business credit, the scores really merely depend on if a company pays its debts on time.

The Process

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

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

Merchants are a big aspect of this process.

Undertaking the steps out of order 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 rejection 100% of the time.

Business Fundability

A business needs to be fundable to loan providers and vendors.

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

And also, business phone and fax numbers need to have a listing on ListYourself.net.

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

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

Licenses

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

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

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

Working with the Internal Revenue Service

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

A company can begin as a sole proprietor. But they will more than likely want to change to a variety of corporation or an LLC.

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

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

Sole Proprietors Take Note

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

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

But only use a DBA filing as a steppingstone to incorporating. Corporate business entities are truly separate from their owners. Particularly during a recession, it is vital to protect your home and other personal assets from seizure in the event of a business failure. You may not want to think about it – but that doesn’t mean it can never happen.

Starting Off the Business Credit Reporting Process

Start at the D&B web site and obtain a 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 websites for the company. You can do this at 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.

By doing this, Experian and Equifax will have activity to report on.

Vendor Credit

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

And with an established business credit profile and score you can begin to get credit for stores and more universal credit like with Visa.

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

But to start with, what is trade credit? These trade lines are credit issuers who will give you preliminary credit when you have none now. Terms are ordinarily Net 30, instead of revolving.

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

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

Retail Credit

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

Fleet Credit

Are there more accounts reporting? Then move to fleet credit. Use this credit to buy fuel, and to repair, and take care of vehicles.

Cash Credit

Have you been responsibly handling the credit you’ve up to this point? Then move to more universal credit, from service providers like Visa and MasterCard.

These are commonly MasterCard credit cards. If you have several trade accounts reporting, then these are feasible.

Monitor Your Business Credit

Know what is happening with your credit. Make sure it is being reported and attend to any inaccuracies ASAP. Get in the practice of checking 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. See: creditsuite.com/monitoring.

Update Your Information

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

Fix Your Business Credit

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

Disputes

Disputing credit report mistakes generally means you mail a paper letter with duplicates of any evidence of payment with it. These are documents like receipts and cancelled checks. Never mail 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 issues with your report. Use certified mail so that you will have proof that you mailed in your dispute.

A Word about Business Credit Building

Always use credit smartly! Never borrow beyond what you can pay off. Monitor balances and deadlines for repayments. Paying off punctually and completely will do more to raise business credit scores than just about anything else.

Building small business credit pays off. Good business credit scores help a small business get loans. Your lender knows the business can pay its financial obligations. They understand the business is bona fide.

The small business’s EIN attaches to high scores and lenders won’t feel the need to require a personal guarantee.

Business credit is an asset which can help your small business for years to come. Learn more here and get started toward growing small business credit.

LenCred Recession Finance Review: Upshot

The companies which will most likely do well with LenCred need financing and have low personal credit utilization rates. Companies which will not do well are those where the entrepreneur has been relying too heavily on personal credit. That drives up their credit utilization rate.

And finally, as with every other lending program, whether online or offline, remember to read the fine print. And do the math. Go over the details with a fine-toothed comb. And decide if this option will be good for you and your company. In addition, consider alternative financing options that go beyond lending. So these include building business credit. In order to best decide how to get the money you need to help your business grow.

The post Do Nothing Until You Read Our LenCred Recession Finance Review appeared first on Credit Suite.

PayPal Working Capital Review: Will It Work for You?

PayPal Working Capital is a funding option offered through the PayPal online payment service. What do they offer? Are they a good option for you? Let’s find out.

What Does PayPal Working Capital Offer, and Is It Right for You?

If it is a good fit, PayPal Working Capital can help you run and grow your business. However, it isn’t right for everyone. The product is solid, but there are some major drawbacks that make it perfect for some, and not so much for others.

PayPal Working Capital Review: The Basics

PayPal Working Capital has a physical address at:

2211 North First Street

San Jose, California 95131.

San Jose is the home of PayPal Working Capital’s corporate headquarters.

You can call them at: (888) 221-1161. Their contact page is here: https://www.paypal.com/us/selfhelp/home. They have been in business since 1998 but that is actually how long PayPal itself has been in business.

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PayPal Working Capital Review: Amounts and Eligibility

PayPal offers flexible payments with a fixed fee and no credit check. The reason they can offer no credit check is that they use your PayPal business transactions as the basis for approval. The amount of your loan and fees are all dependent on the amount of you take in each year through PayPal. In addition, your loan is repaid as an automatic deduction of collections through PayPal, so as long as you are collecting money through PayPal, they will get their money.

The maximum loan amount can be up to 30% of annual PayPal sales, and no more than $97,000 for a first loan. The third loan can be up to $125,000. Your business can get funding in minutes and there is no early payment penalty.

You must have a PayPal Business or Premier account for 3 months or longer to qualify. You also have to process more than $20,000 in annual PayPal sales if you have a Premier PayPal account. A regular business PayPal account only requires $15,000 annually to be eligible.

PayPal Working Capital Review: Rates, Terms, Fees and Repayment Options

Automatic repayments are deducted as a percentage of each PayPal sale. The fee is based on your business’s PayPal sales history, your loan amount, and the repayment percentage chosen. A higher payment percentage will lower the fee.

You can use their calculator tool to get an idea of what fees might look like with different repayment percentages. It can also help you get a feel for how everything works. You do have to pay a minimum amount over a 90-day period, which PayPal claims is easily met by most out of the daily sales percentage. However, if there were a 90-day period where you were not able to hit the minimum out of sales, you can log on and make a payment.

Keep in mind, you get to choose what percentage of sales is taken as repayment. The calculator will show you several options, but the larger the percentage the lower the fees. The website offers these examples:

If you borrow $10,000 ($9,800 loan + $200 fixed fee) and the loan is estimated to be repaid in 13 months based on your previous years’ PayPal sales, then your minimum repayment is 5% or $500, every 90 days.
If you borrow $30,000 ($29,500 loan + $500 fixed fee) and the loan is estimated to be repaid in 8 months based on your previous years’ PayPal sales, then your minimum repayment is 10% or $3,000, every 90 days.

PayPal Working Capital Review: The Brass Tacks

For those with steady, reliable PayPal sales, this is a great option. Keep in mind however, the amount you are eligible to borrow will be limited by your PayPal sales amounts. If you make sales via other platforms, that revenue will not be included in the decisions making process.

What If I do not Qualify for PayPal Working Capital?

One of the top reasons why business owners use PayPal Working Capital is that there is no credit check. If credit is an issue, it’s time to get to work so you can have more funding options. Credit isn’t the only thing you have to work on however. It is possible the complete fundability of your business needs work.

The Fundability Puzzle (for PayPal Working Capital and More)

Fundability is the ability of your business to get funding. It is affected by many variables, only one of which is business credit. The better your fundability, the more funding options you will have.

What affects the fundability of your business? The answer isn’t hard, but it is kind of long. Sure, a great business credit score is important, but there are so many more pieces to the puzzle.

The key is, a potential creditor needs to see that your business is legitimate and profitable. Many loan applications are denied approval due to fraud concerns. Others, simply because something didn’t match up and threw up a red flag. Maybe the addresses or phone numbers didn’t match on a couple of reports and it just looks unprofessional. Business credit just isn’t the whole story.

If you understand what fundability is and how to get it, you can open up a world of funding options you never had before.

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Building a Foundation of Fundability

The foundation of fundability is in how your business is set up. It has to be set up to appear to be a fundable entity separate from you, the owner. How do you accomplish this? Well, like any foundation, it is best to start at the beginning. It will be faster and easier if you do. However, if your business is already up and running, then you may not have that option. That’s okay, it’s never too late to start, but start now. For several reasons, the longer you wait the harder it will be. Here is what it takes to build a fundable foundation.

Contact Information Specifically for the Business

The first step in setting up a foundation of fundability is to ensure your business has its own phone number, fax number, and address. That doesn’t mean you have to get a separate phone line, or even a separate location. You can still run your business from your home or on your computer.

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

An EIN Is Essential

The next thing you need to do is get an EIN for your business. This is an identifying number that works in a way similar to how your SSN works for you personally. You can get one for free from the IRS.

You Must Incorporate

Incorporating your business as an LLC, S-corp, or corporation is necessary to fundability. It lends credence to your business as one that is legitimate. It also offers some protection from liability.

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

A Dedicated Business Bank Account Cannot Be Ignored

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

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

Get Your Licenses

Fundability also includes being a legitimate business. For a business to be legitimate it has to have all of the necessary licenses it needs to run. If it doesn’t, red flags will go up. Do the research you need to do to make sure you have all of the licenses necessary to legitimately run your business at the federal, state, and local levels.

Don’t Forget the Website

A business website can affect your ability to get funding. These days, you do not exist if you do not have a website.

Spend the time and money necessary to ensure your website is professionally designed and works well. Pay for hosting also. Don’t use a free hosting service. Along these same lines, your business needs a dedicated business email address. Make sure it has the same URL as your Website. Don’t use a free service such as Yahoo or Gmail.

Other Pieces of the Fundability Puzzle

In addition to having a fundable foundation, you need these pieces to complete the fundability puzzle and have the complete picture.

Business Credit Reports

Your business credit report also affects fundability. That is the credit report, much like your consumer credit report, that details the credit history of your business. It is a tool to help lenders determine how credit worthy your business is.

Where do business credit reports come from? There are a lot of different places, but the main ones are Dun & Bradstreet, Experian, Equifax, and FICO SBSS. Since you have no way of knowing which one your lender will choose, you need to make sure all of these reports are up to date and accurate.

Other Business Data Agencies

In addition to the business credit reporting agencies that directly calculate and issue credit reports, there are other business data agencies that affect those reports indirectly. Two examples of this are LexisNexis and The Small Business Finance Exchange. These two agencies gather data from a variety of sources, including public records. This means they could even have access to information relating to automobile accidents and liens. While you may not be able to access or change the data the agencies have on your business, you can ensure that any new information they receive is positive. Enough positive information can help counteract any negative information from the past.

Identification Numbers

In addition to the EIN, there are identifying numbers that go along with your business credit reports. You need to be aware that these numbers exist. Some of them are simply assigned by the agency, like the Experian BIN. One, however, you have to apply to get. It is absolutely necessary that you do this.

Dun & Bradstreet is the largest and most commonly used business credit reporting agency. Every credit file in their database has a D-U-N-S number. To get a D-U-N-S number, you have to apply for one through the D&B website.

Business Credit History

Your credit history has everything to do with everything related to your credit score, which is a huge factor in the fundability of your business.

Your credit history consists of a number of things including:

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How many accounts are reporting payments?
How long have you had each account?
What type of accounts are they?
How much credit are you using on each account versus how much is available?
Are you making your payments on these accounts consistently on-time?

The more accounts you have reporting on-time payments, the stronger your credit score will be.

Business Information

On the surface, it seems obvious that all of your business information should be the same across the board everywhere you use it. However, when you start changing things up, like adding a business phone number and address or incorporating, you may find that some things slip through the cracks.

This is a problem because a ton of loan applications are turned down each year due to fraud concerns simply because things do not match up. Maybe your business licenses have your personal address but now you have a business address. You have to change it. Perhaps some of your credit accounts have a slightly different name or a different phone number listed than what is on your loan application. Do your insurances all have the correct information?

The key to this piece of the business fundability is to monitor your reports frequently.

Financial Statements

This encompasses a broad spectrum of things. First, there is the obvious. Both your personal and business tax returns need to be in order. Not only that, but you need to be paying your taxes, both business and personal.

Business Financials

It is best to have an accounting professional prepare regular financial statements for your business. Having an accountant’s name on financial statements lends credence to the legitimacy of your business. If you cannot afford this monthly or quarterly, at least have professional statements prepared annually. Then, they are at the ready whenever you need to apply for a loan.

Personal Financials

Often tax returns for the previous three years will suffice. Get a tax professional to prepare them. This is the bare minimum you will need. Other information lenders may ask for include check stubs and bank statements, among other things.

Bureaus

There are several other agencies that hold information related to your personal finances that you need to know about. Everyone knows about FICO. Your personal FICO score needs to be as strong as possible. It really can affect business fundability and almost all traditional lenders will look at personal credit in addition to business credit.

In addition to FICO reporting personal credit, you have ChexSystems. In the simplest terms, this keeps up with bad check activity and makes a difference when it comes to your bank score. If you have too many bad checks, you will not be able to open a bank account. That will cause serious fundability issues.

For this point, everything comes into play. Have you ever been convicted of a crime? Do you have a bankruptcy or short sell on your record? How about liens or UCC filings? All of this can and will play into the fundability of your business.

Personal Credit History

Your personal credit score from Experian, Equifax, and Transunion all make a difference. You have to have your personal credit in order because it will definitely affect the fundability of your business. If it isn’t great right now, get to work on it. The number one way to get a strong personal credit score or improve a weak one is to make payments consistently on time.

Also, make sure you monitor your personal credit regularly to ensure mistakes are corrected and that there are no fraudulent accounts being reported.

The Application Process

So much plays into this that you may not even think about. First, consider the timing of the application. Is your business currently fundable? If not, do some work first to increase fundability. Next, ensure that your business name, business address, and ownership status are all verifiable. Lenders will check into it. Lastly, make sure you choose the right lending product for your business and your needs. Do you need a traditional loan or a line of credit? Would a working capital loan or expansion loan work best for your needs? Choosing the right product can make all the difference.

PayPal Working Capital Review: A Final Word

The more options you have, the better. If you do a ton of business on PayPal, then PayPal Working Capital is a completely legitimate option. However, regardless, it is best to ensure your overall fundability is in order so you can have as many funding options as possible.

The post PayPal Working Capital Review: Will It Work for You? appeared first on Credit Suite.

An Updated In-Depth Fundbox Review: Are They Still a Good Deal?

Fundbox is one of several lending companies online. They offer Invoice Financing. Surprisingly, this is not the same as Invoice Factoring. Our Fundbox review can help you decide if their financing options are a good fit for your business.

Fundbox Works for Some, Not So Much for Others

Here’s the thing. They make it easier to get approval for financing. There is a credit check. However, for the application it is only a soft pull. The key is, the minimum credit score is 500. Comparatively, this is much lower than with other lenders. There is a one-time hard credit pull on the first draw, so keep that in mind.

What They Offer: Invoice Financing and Lines of Credit

They do not offer invoice factoring. In contrast, instead of purchasing your accounts receivables for a percentage of the money owed to you, they will finance up to the full amount in the form of a loan. Then, you pay it back as your customers pay their invoices. Also, they do not communicate directly with your customers.

In addition, they offer Business Lines of Credit. In fact, you can get a line of credit up to $60,000 within about 3 minutes on average. Furthermore, this amount goes up to $100,000 with financials. The 500 personal credit score minimum holds for lines of credit the same as invoice financing. Basically, they just want to connect to your business bank account. They can provide up to $100,000 in credit.

Check out how our reliable process will help your business get the best business credit cards.

Fundbox: Fees

Fees start at 4.66% of the amount drawn. If you pay early, then the remaining draw amount plus one weekly fee is debited from your account on the upcoming payment date. However, if you miss a payment, they will continue to debit your account as scheduled. In addition, there will be an ACH for an additional average fee plus a $6 NSF charge.

Fundbox: Funding Requirements

Honestly, they look for healthy businesses. This means with accounting software, they want to see a lot of receivables, invoices going out, and healthy revenue. If you’re showing your bank account, they want to see strong transactions. Generally, they are looking for around $50,000 or more in a bank account. Typically, they want to see a minimum of three years in business. They also want to see a variety of customers.

For companies with a minimum of one year in business, they want at least three months’ worth of transactions.

Remember:

They consider business merit as opposed to personal credit. For application purposes, they will do a soft pull on your personal credit. This will not affect your credit score. They want to see a minimum personal score of 500. When you make your first draw, they will do a one time hard pull that could affect your score, so keep that in mind.
Timing matters. Take into consideration when you will need the funds. How much time are you willing to spend filling out an application?
Do your own research on fees. Educate yourself on how much they are and what they cover.
Consider how much credit you really need? You don’t want to be paying for money that you do not need.
You control your information.

Fundbox: Reputation and Reviews

The first place I go to check up on a company’s reputation is the Better Business Bureau. Things look pretty good. They have an A+ rating, and they have been accredited since 2014. There are 5 reviews, and 4 of them are negative. However, considering how long they have been around, you have to figure there are a ton of happy customers out there, too. Also, it seems that most of the reviews are centered around recent growing pains that will likely work themselves out given their success thus far.

There are also 7 complaints. The details of the complaints are not public, but it seems that each one was at least answered by Fundbox. This shows the company pays attention to what customers are saying.

The Benefits

The benefits of Fundbox funding include flexibility in connecting to your business bank account, and fast approval. Another advantage is that they stay out of your relationship with your clients. Your clients need never know that you are working with them.

The Cost

Oddly enough, one of the benefits is also a drawback. Many people are uncomfortable with giving them bank account access, even if it does streamline processes. Of course, this is the very thing that makes it possible for them to not run a credit check. As a result, business owners with bad credit can turn here. This is important for some. Another disadvantage is the high fee if you miss a payment.

What’s the Final Word?

Fundbox works best for those businesses that can pay back their debts on time. Of course, that’s the case for any lender. You’ll have to decide if the benefits of using Fundbox outweigh the costs for your business. Certainly, they are a legit business. Just do your research and know what you are getting into on the front end.

The post An Updated In-Depth Fundbox Review: Are They Still a Good Deal? appeared first on Credit Suite.

Is It Too Good to Be True? An In-Depth Kabbage Review

As a general rule, if something seems too good to be true, it is. Kabbage offers fast, flexible financing. Approval is easy to obtain, and in most cases, you can have funds in just a few minutes. In addition, their minimum eligibility requirements are much easier to meet than some others. Wondering if Kabbage is right for you? Our in-depth Kabbage review can answer that.

Is Kabbage Right for You? Find Out in Our Complete Kabbage Review

Kabbage is one of several lending companies online. It provides small business funding in the form of a line of credit. Now, I reveal the details about this online lending option in my in-depth Kabbage review.

Kabbage Review: Basic Background

Kabbage is a venture funded company that is backed by investors which include SoftBank Capital, Thomvest Ventures, Reverence Capital Partners, Mohr Davidow Ventures, the UPS Strategic Enterprise Fund, ING, BlueRun Ventures, Santander InnoVentures, Scotiabank, and TCW/Craton.

The company offers perks for its customers. These include specials from Dun & Bradstreet, UPS, Vonage, and Adobe Creative Cloud among others.

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

Kabbage Review: What You Need to Know about Kabbage Loans

First, they offer lines of credit. This means it is revolving credit you can use as needed. For most, amounts of up to $250,000 are available. You can qualify in as little as 10 minutes. Furthermore, terms are 6, 12, or 18 months. You have to be in business for more than one year, and your business revenue has to be $50,000 annually or $4200 per month over the last 3 months.

Kabbage Review: Credit Reporting and Score Requirements

In the course of this Kabbage review, I could not find anything concrete about a credit score requirement or credit reporting. I did find other reviewers that had contradicting information. For example, one claimed there was no minimum interest rate requirement. In contrast, another claimed that the minimum interest rate for application approval is 500. Another put the minimum at 560. Whatever the case, it appears that their minimum required credit score is much lower than others in the field. In addition, one reviewer stated that they do not report on-time payments to the credit agencies, but they may report late or missed payments.

The only thing concrete I could find from Kabbage themselves is that they do a one-time hard credit pull. A hard credit check will affect your credit score. Also I found this information in the FAQs on the Kabbage website. It wasn’t just out there on a top page.

Kabbage Review: Approval and Receipt of Funds

Kabbage links to your bank or merchant accounts to understand your cash flow and decide what amount you can afford to borrow. Their lines of credit range from $1,000 to $250,000.

For lines of credit up to $200,000, if they are able to automatically get business information and verify your bank account, they can approve a loan in minutes. Amounts over $200,000 must have a manual review. Sometimes, mistakes happen during the sign-up process. Also, they may send small deposits to help confirm your banking information for security purposes. In these cases, it may take longer to get access to funds.

Once everything is settled, they send funds to the account of your choice. If you choose to have your funds deposited to a PayPal account, it takes just a few minutes. However, loans that go to a business checking account can take up to three days to be deposited. It just depends on your bank.

They retain access to your account. This means they can review your revenue faster than other lenders. Still, it also means they have access to your account for the duration and beyond unless you take action.

If you make a draw using the dashboard or app, you have to take a minimum of $500. In contrast, if you use your Kabbage card there is no minimum draw.

Kabbage Review: Interest Rate vs. Fees

Kabbage uses a monthly fee model rather than an annual percentage rate. Fees range from 1.5 – 10%. This sounds fabulous, of course, but you need to look a little closer. First, the fee amount is based on business performance factors. This is similar to how traditional lenders assign interest rates, so not really a big deal.

The problem comes in with how the fee is actually applied. They are forthright about this on their site, but you do have to dig around and do some research to fully understand it. They offer a calculator to help you. Use it. I gave it a shot, and according to the calculator on the Kabbage website, a $30,000 loan paid out over 6-months at a 3% fee would result in a total of $33,300 total being paid back. If you do the math on that, you are paying back an effective 11% interest rate, if it were interest and not a fee.

Three percent of $30,000 is $900. You pay that $900 fee each month for the first two months, and the $375 per month for months 3-6. While I could not find an explanation on the reduction in fee over the last 4-months, it could have to do with the reduction in principal. The issue is, you end up paying way more in fees than it may appear until you dig a little deeper. With fees going up to 10%, it is imperative that you use the calculator to get a true understanding of loan cost on the front end.

Kabbage Review: What Does Kabbage Say About the Issue?

Here is how Kabbage explains it on their site:

“Kabbage’s maximum rate for each month is 10%. Third party partners may occasionally charge up to an additional 1.5% for each month. Every month you’ll pay back 1/6 of the total loan (for 6 month loans), 1/12 of the loan amount (for 12 month loans), or 1/18 of the total loan (for 18 month loans) plus the monthly fee. Your actual fee rate if qualified is based on a review of your revenue and credit history. For more details, read about our Rates & Terms.”

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

Kabbage Review: Does Kabbage Make Loans to Everyone?

The short answer is no. They state that they do not extend credit to those businesses dealing in “marijuana, CBD, firearms, gambling, financial institutions, lending or non-profit organizations.” However, there is a footnote on firearms that states only specific businesses dealing in firearms are excluded. Consequently, some firearms dealers are eligible. If this is you, be sure to do your due diligence.

Speaking of Due Diligence: Ratings and Reviews

I never write reviews without checking out the reviews of others. Consequently, this Kabbage review is no different. I find it wise to start at the Better Business Bureau. Kabbage has an impeccable BBB file. They have been accredited since 2014. In addition, they have an A+ rating. Also, there are over 180 reviews and they are overwhelmingly positive. As a result, they have a rating of 4.5 stars. Most of the positive reviews were noting how fabulous customer service is.

The one negative review I found, though I admittedly stuck to the ones in the most recent year, was related to the person not fully reading the information on the website or asking questions. There are 49 complaints on their BBB file, which are separate from reviews. With complaints, Kabbage can respond. From what I can see, they responded each time and either made the situation right, or they answered the issue with how the customer simply did not understand the process as it was clearly written on the website.

In addition to the BBB, I looked at other review sites when conducting my Kabbage review. Other sites had more negative information. Virtually all of the negative reviews were related to either unexpectedly high payments, credit inquiries, or bank account access. It appears that, due to ongoing account access, they can draft payments from your account. While they do disclose this, it seems a lot of borrowers miss it. As you can imagine, this results in some overdrawn bank accounts.

Kabbage Review: The Final Decision on Kabbage

My final opinion after my Kabbage review is, they will do in a pinch but try to find something better first. It appears that they truly stand by what they do and offer a legitimate product. They do not lie about anything or misrepresent themselves in any way.

However, the fee model is confusing even to those that work with finances every day, like me. It could be seen as a ploy to make it appear that interest rates are 1.5% to 10%, when in fact there is no actual interest rate, and the fees are much higher than it sounds. The information is all there, but you do have to look for it.

I highly recommend, if you choose to take out a line of credit with Kabbage, you do complete and thorough research. Read through positive and negative reviews on the BBB and on other sites, and read all of the FAQs on the Kabbage website, along with the footnotes.

How Do I Find Something Better?

That’s the million-dollar question isn’t it? Most people use a service like Kabbage because it is easier to get approval with a poor credit score. My Kabbage review convinced me that if you can get funding that costs less, you should. To do this, you need to increase fundability. The truth is, your credit, both business and personal, are only a small piece of the complete fundability of your business.

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

What is Fundability?

At its core, fundability is the ability to get funding for your business. When a lender considers lending to your business, do they feel that you are high risk? Do you appear to be a business that can and will pay back the debt? Lenders are in it for the money, and they need to feel they will get a return on their investment. Truly, a high credit risk is not a wise lending choice.

How Do You Increase Your Fundability?

The harder question is how does a business increase their fundability? What makes this answer difficult is that there is so much the answer must cover. As I mentioned, a great business credit score is important. However, there is a lot more to it.

A potential creditor needs to see that your business is legitimate and profitable. Many loan applications are denied approval due to fraud concerns. Others, simply because something didn’t match up and threw up a red flag. Maybe the addresses or phone numbers didn’t match on a couple of reports and it just looks unprofessional.

Make Sure Your Business Is Set Up to Be Fundable

It has to be set up to appear to be a fundable entity separate from you, the owner. How do you accomplish this? Make sure your business has a fundable foundation. The building blocks of a fundable foundation include:

Separate Contact Information
An EIN
Incorporation
Dedicated Business Bank Account
All Necessary and Proper Licenses
Professional Business Website

In addition to a fundable foundation, the following factors affect fundability.

Business Credit Reports

The next piece of the fundability puzzle after the fundable foundation is your business credit report. That is the credit report, much like your consumer credit report, that details the credit history of your business. It is a tool to help lenders determine how credit worthy your business is.

Other Business Data Agencies

Identification Numbers

In addition to the EIN, there are identifying numbers that go along with your business credit reports. When considering what is fundability, you need to be aware that these numbers exist. Some of them are simply assigned by the agency, like the Experian BIN. One, however, you have to apply to get. It is absolutely necessary that you do this.

Business Credit History

Your credit history has everything to do with everything related to your credit score. This is a huge factor in the fundability of your business.

Your credit history consists of a number of things including:

How many accounts are reporting payments?
How long have you had each account?
What type of accounts are they?
How much credit are you using on each account versus how much is available?
Are you making your payments on these accounts consistently on-time?

The more accounts you have reporting on-time payments, the stronger your credit score will be.

Business Information

On the surface, it seems obvious that all of your business information should be the same across the board everywhere you use it. However, when you start changing things up like adding a business phone number and address or incorporating, you may find that some things slip through the cracks.

The key to this piece of the business fundability is to monitor your reports frequently.

Financial Statements

Business Financials

Personal Financials

Bureaus

Personal Credit History

Application Process

So much plays into this that you may not even think about. First, consider the timing of the application. Is your business currently fundable? If not, do some work first to increase fundability. Next, ensure that your business name, business address, and ownership status are all verifiable. Lenders, even Kabbage, will look into it. Lastly, make sure you choose the right lending product for your business and your needs. Do you need a traditional loan or a line of credit? Would a working capital loan or expansion loan work best for your needs? Choosing the right product to apply for can make all the difference.

Kabbage Review: Final Words

If you have no other options and you are desperate, Kabbage can help you out in a pinch. However, you must be sure you know what you are getting into. If you qualify for a good rate with them, you likely qualify for a loan that does not cost as much somewhere else. If your fundability is not up to par, get started working on that now. Start by doing an analysis of fundability and go from there.

The post Is It Too Good to Be True? An In-Depth Kabbage Review appeared first on Credit Suite.

Mazu E-currency Exchange Program Review

Matt Gagnon might be an illusionist which’s why the Mazu Guide has actually gotten a lot press. Matt’s e-currency exchange program introduced in Dec. 2004 as well as has actually seen just success with Mazu’s really helpful ECEP overview on beginning in e-currency trading. Matt Gagnon’s newest upgrade within the e-currency company has actually been the launch of the sophisticated section of the ECEP in June of 2005.
Mazu’s e-currency exchange program appealed an ignored specific niche as well as has actually produced an innovative overview on just how to trade e-currencies. Current research study has actually revealed that 90% of Mazu’s consumers are pleased with the digital e-currency program. It is noticeable that in any type of market there will certainly constantly be unhappy clients; nonetheless this mosts likely to state that there is constantly area for renovation.
The e-currency exchange program is very easy to adhere to with led tutorials, video clips as well as CD’s that aid individuals beginning. Not just do individuals obtain described sources, yet accessibility to chatroom as well as online forums that are loaded with individuals enlightened in e-currency trading. One of the most effective source within Matt Gagnon’s e-currency exchange program is without a doubt the chatroom that is continuously loaded with specialists on the topic.
In a current telephone call with Matt Gagnon he described that the Mazu e-currency exchange program will certainly make $900,000 this year alone. Matt clarified his success has actually resulted from the competence and also the riches of understanding Mazu has in the e-currency profession company. After examining Matt Gagnon’s money exchange program it became a really reputable program offering important sources for e-currency trading.

The post Mazu E-currency Exchange Program Review appeared first on ROI Credit Builders.

Mazu E-currency Exchange Program Review

The post Mazu E-currency Exchange Program Review appeared first on ROI Credit Builders.

Real Corporate Credit Report Review

Have you ever wondered what exactly is on your corporate credit report? For instance, what is it telling lenders about your business? How are lenders using the information in their decision-making process? Are they simply taking the information at face value? Do they have their own formulas and algorithms that they apply? Your corporate credit … Continue reading Real Corporate Credit Report Review

Real Corporate Credit Report Review

Have you ever wondered what exactly is on your corporate credit report? For instance, what is it telling lenders about your business? How are lenders using the information in their decision-making process? Are they simply taking the information at face value? Do they have their own formulas and algorithms that they apply? Your corporate credit report may not be what you think it is. This real corporate credit review will answer these questions and more.

What Does Your Corporate Credit Report Say About You, and How Do Lenders Use It?

Before we dive in, there are a few things you need to know. First, there are many companies from which a lender can pull your corporate credit report. Next, each company offers lenders more than one report. There is no way to know, without asking the lender directly, which report they will pull from which company. It could be all, one, or any combination.

Keep your business protected with our professional business credit monitoring.

Lastly, many lenders do actually apply their own formula to the information in the report to calculate a score that they feel is most useful to them. As a result, they may not even use the actual score on your corporate credit report.

All of these things are out of your control. What you can control, to a point, is the information on the report. For example, does it contain positive information? Is the information on it accurate? These are things you can work with. If the information lenders are seeing is both positive and accurate, you should be in good shape. However, you cannot do anything about the information on the reports unless you understand what it is they are reporting, and where they get their information. So here we go.

Corporate Credit Report: Dun & Bradstreet

Dun & Bradstreet offers six different reports. The one utilized most often by lenders is the PAYDEX. This is most likely due to the fact that it is the one most like the consumer FICO score. It measures how quickly a company pays its debt on a scale of 1 to 100. Lenders like to see a score of 70 or higher. To put it in perspective, a score of 100 reveals the firm makes payments ahead of time. A rating of 1 shows they pay 120 days late, or more.

Together with PAYDEX, they offer following.

Delinquency Predictor Score

This rating determines the chance the company will not pay, will be late paying, or will come under bankruptcy. For scoring, the range is 1 to 5, with 2 being a good score.

Financial Stress Score

As you might guess, this is a measurement of the pressure on a firm’s balance sheet. It shows the possibility of a closure within a year. The range is 1 to 5, and a 2 is good.

Supplier Evaluation Risk Rating

This is a ranking that predicts odds of a firm surviving one year. It ranges from 1 to 9, with a 5 being a good score.

Credit Limit Recommendation

As the name implies, this is a recommendation for the amount of debt a company can handle. Financial institutions usually use it to establish how much credit to extend.

D&B Credit Rating

This is an estimation of overall business risk on a scale of 4 to 1, where a 2 is considered good. The smaller the number the better. The rating is given in conjunction with letters, the combination of which show a company’s net worth.

Consequently, if there isn’t enough data on a business to assign a regular rating, an alternative score is assigned. This is called a credit approval score. It is based on the number of employees. They will use any data they have available to calculate this alternative rating. That means, a company can control this to a point by ensuring D&B has all of the information they need.

Commercial Credit Score

Along with the PAYDEX, Dun & Bradstreet releases a commercial credit report in three components. Each part shows how likely the business is to default on expenses or become seriously late on payments.

Commercial Credit Score

On a range of 101 to 670, the commercial credit score anticipates the likelihood of a firm making late payments. A rating of 101 indicates it is very likely that the company will be late with payments. Likewise, a score of around 500 is good.

Commercial Credit Percentile

For this measurement, the scale runs from 0 to 100. It shows the chance of delinquency too. However, it determines this probability versus other companies in the Dun & Bradstreet system. A rating of 1 is the highest possible probability versus various other companies. The majority of loan providers consider a rating of 80 or higher to be an advantage.

Commercial Credit Class

In contrast to the other reports, this is an approach of dividing businesses into classes based on the chance of delinquency. Firms in class 1 are the least likely to be overdue. Likewise, if you are in class 2, that’s great.

Keep your business protected with our professional business credit monitoring.

What Information is Used to Calculated the Dun & Bradstreet Corporate Credit Report?

Unfortunately, the exact formula that Dun & Bradstreet uses to calculate their rankings is proprietary. However, we do understand what information they use, as well as where they get it. In fact, the main source of information is the business itself.

You see, a company has to send a financial statement to D&B before getting a complete score. Without that, a business receives a restricted score based on how many workers they have. For example, the ranking would be 1R if the business has 10 employees or even more. It’s 2R if they have fewer than 2 staff members.

Without financial statements, a composite debt evaluation might still be offered. However, a business is only eligible for a ranking up to a 2 in this situation. They are ineligible for a 1 rating without a financial statement.

Additionally, businesses can submit trade recommendations to Dun & Bradstreet. However, it costs money to do so. Of course, there is no guarantee it will lead to a score boost. Also, if you are building business credit properly, it will happen for free anyway.

In addition, Dun & Bradstreet accesses public documents. In doing so, they try to find liens, insolvencies, or anything else that can show creditworthiness, or its absence.

Corporate Credit Report: Experian Business Credit Scores

Experian gathers data from a lot of the same sources as Dun & Bradstreet. As a result, their reports are similar. There are a few key differences in sources, calculation, and also presentation however.

Intelliscore Plus

Experian uses the Intelliscore Plus credit score, which shows a statistics-based credit risk. The result is, it is a highly predictive score that can help users make well-informed credit decisions.

The Intelliscore scores range from 1 to 100, with a higher score indicating a lower risk class.

Score Range Risk Class

Low Risk	76-100
Low-Medium Risk	51-75
Medium Risk	26-50
High-Medium Risk	11-25
High Risk	1-10

Exactly How Does Experian Compute the Intelliscore Rating?

One of the things Intelliscore is most known for is the identification of key factors that can indicate how likely a business is to pay its debt. In fact, over 800 variables go into the Intelliscore Plus calculation. Many of them are from the list of general information all credit agencies look at. However, some are unique to Experian. So here’s a breakdown.

Payment History

As you might imagine, this is your current payment status. That means, it shows how many times accounts have become delinquent. It also shows how many accounts are currently delinquent, as well as the overall trade balance.

Frequency

This one shows how many times your accounts have gone to collections. In addition, it notes the number of liens and judgments you have. Also, it shows any bankruptcies related to your business or personal accounts.

Frequency also incorporates information about your payment patterns. Were you regularly slow or late with payments? Did you decrease the number of late payments over time? That affects your score.

Monetary

This specific factor focuses on how you make use of credit. For example, how much of your available credit are you using right now? Do you have a high ratio of late balances when compared with your credit limits?

Of course, if you are a new business owner, a lot of this information will not exist yet. Intelliscore Plus handles this by using a blended model to identify your score. This means your personal credit score becomes part of determining your business’s credit score.

Experian’s Blended Score

The blended score is a one-page report that provides a summary of the business and its owner. A combined business-owner credit scoring model works better than a business or consumer only model. In fact, blended scores have been found to outperform consumer or business scores alone by 10 – 20%.

Experian Financial Stability Risk Score (FSR)

FSR predicts the potential of a business going bankrupt or not paying its debts. Consequently, this score identifies the highest risk businesses by using payment and public records. They look at a number of factors, some of which include:

high use of credit lines
severely late payments
tax liens
judgments
collection accounts
risk industries
length of time in business

Corporate Credit Report: The Equifax Service Credit Rating

Similarly, Equifax shows three different points on its corporate credit report. These include:

Equifax Payment Index

Similar to PAYDEX, Equifax’s payment index is a measurement on a scale of 100. It shows how many of your small business’s payments were made on time. Like the others, it uses data from both creditors and vendors. However, it’s not meant to anticipate future behavior. That is what the other two scores are for.

Equifax Credit Risk Score

This score shows the likelihood of your company becoming severely delinquent on payments. Scores range from 101 to 992 and include an evaluation of:

Available credit limit on revolving credit accounts, including credit cards
Company size
Proof of any non-financial transactions (like merchant invoices) which are late or were charged off for two or more billing cycles
Length of time since the opening of the earliest financial account

Equifax Business Failure Score

Equifax’s business failure score takes a look at the risk of your business shutting down. It runs from 1,000 to 1,600 and bases its scoring on these factors:

Total balance to total current credit limit in the past three months
The amount of time since the opening of the oldest financial account
Your small business’s worst payment status on all trades in the last 24 months
Proof of any non-financial transactions (like merchant invoices) which are late or are on a charge off for two or more billing cycles

For the credit risk and the business failure scores, a rating of 0 means bankruptcy.

Equifax Scores

A positive Equifax score for your business is as follows:

Payment Index 0 to 10
Credit Risk score 892 to 992
Business Failure score 1400 to 1600

Are These the Only Agencies Where You Can Get a Corporate Credit Report?

In short, no. In fact, there are multiple other agencies that will issue a corporate credit report. These, however, are known as the big three. They are the most commonly used. Still, there has been an increase in the use of another option recently. It’s the FICO SBSS.

Keep your business protected with our professional business credit monitoring.

Corporate Credit Report: What is the FICO SBSS?

So, the FICO SBSS is the business variation of your personal FICO credit report. Unlike your personal FICO, the SBSS reports on a scale of 0 to 300. The higher the score the better. However, the majority of loan providers demand a rating of least 160.

Exactly how is the FICO SBSS Scored?

Surprisingly, it is significantly different from other business credit scoring designs. The SBSS utilizes your corporate credit score and individual credit rating. It also makes use of monetary details like business assets and income. As you can see, the goal is to give an overall financial picture rolled into one rating.

Business owners cannot access their FICO SBSS by themselves. There is a proprietary formula for score computations. FICO does not make that info public. The result is, you go into lending institutions blind as to what your FICO SBSS credit rating might be.

Furthermore, lenders can choose how certain factors are weighted in the computation of your score. This means your FICO SBSS could actually be different from one lender to the next. For example, one lender could put more weight on your business payment history, while another could lean more on your personal credit score.

Corporate Credit Reports: What Can You Do?

Now that you know who issues them, how they are calculated, and what information lenders may see, you can begin to figure out how you can ensure your corporate credit report contains as must positive information as possible. The number one thing you can do is make your payments on time. Regardless of what report they look at from which agency, the thing all lenders care about most is that you pay your bills.

In addition, you can monitor your credit reports to ensure all information is complete and accurate. If you see a mistake, contest it. Do so in writing, and be sure to send copies of any backup documentation. If you see old information, get it updated. You don’t want old addresses or closed accounts causing problems. Monitor your corporate credit for a fraction of what it costs with the reporting agencies directly here.

In the end, the most important thing you can do for your corporate credit report is to make your payments consistently on-time. The rest is important, but this is the number one thing lenders look for when it comes to making credit decisions.

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