Kent State's surprise onside kick to start game backfires in worst way possible

Kent State wanted to gain immediate momentum in their game Saturday afternoon – however, they got anything but.

The Flashes were set to kick to Eastern Michigan, but to the Eagles’ surprise, Kent State went for the onside kick instead.

It didn’t work out, as Eastern Michigan’s Kendric Nowling was able to recover it. And he gained possession of the ball standing up with room to run.

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So, he took off, and instead of what Kent State thought was the worst-case scenario in simply just playing defense at their own 45-yard line, Nowling took it all the way to the house for a game-opening kick return for a touchdown.

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NO. 7 WASHINGTON BEATS NO. 8 OREGON WHEN LAST-SECOND FIELD GOAL MISSES WIDE

That was the beginning of Kent State’s 28-14 loss to the Eagles, as they fell to 1-6 on the season.

Kent State was held scoreless until the end of the third quarter. In their first nine drives, they punted five times, turned it over on downs twice and fumbled once. The other was the end of the first half. The Flashes also lost fumbles on two of their three final drives as they tried to come back.

It was an ugly game in ugly weather overall, as both teams combined for 18 punts. Kent State actually outgained EMU, 343-218, but they were unable to fight back from their attempt at immediate satisfaction.

After their fourth consecutive loss, Kent State will host Buffalo next week. Saturday was Eastern Michigan’s second-straight win, and they will head to Northern Illinois next week.

Surprise! Someone Decided to Check Your Business Credit

No one wants a surprise when they apply for a loan, whether it’s a personal loan or a business loan. Rather, the hope is that the process is smooth and ends with approval of funds. However, if you aren’t aware, a surprise is exactly what you might get when you apply for a loan and the lender decides to check your business credit.

Expect Lenders to Check Your Business Credit

Sadly, they don’t have to tell you they are going to do it either. So, the safest bet is to just assume they will. The Fair Credit Reporting Act protects you from this type of surprise when it comes to personal credit. Yet, it only applies to personal credit. In contrast, anyone can look at business credit reports.

In fact, it’s almost always part of the underwriting process for business loans. Frankly, it’s just one of the many ways lenders mitigate their risk and determine the creditworthiness of the business.

What Are Lenders Looking For When They Check Your Business Credit?

First, they need to see that your business is separate from you, the owner. Of course, they want to see that it can and will pay its obligations as well. Business credit reports are like a lender’s dirty little secret. They are made for bankers, not consumers. Actually, many business owners don’t even know they exist. Yet, credit providers want to know it all, and they will look everywhere they can think of to find all the information they can.

Impact on Funding

Unfortunately, some lenders will deny funding if you do not have business credit. To them, that makes it look like business isn’t legitimate. In contrast, a business credit profile helps build trust.

Also, even if a lack of business credit does not affect approval, it may affect how much you get. Furthermore, it can affect terms and rates.

What Can You Do?

At a minimum, you need to be sure your business has a Fundable Foundation. This includes:

Separate contact information
EIN
Business bank account
And more!

In addition, you’ll need to build business credit. To start, work with vendors that will report positive payment history after you build your FundableFoundation.

Credit Suite Business Credit Builder

The thing is, vendors that report are hard to find. Thankfully, as part of the Business Credit Builder, we offer an up to date list of vendors we know report. It is unfortunate, but not all of them do. Also, it can be hard to figure out who does. As a result, the list saves time.

Check Your Business Credit Report Yourself

If you want to avoid surprises, this is vital. I menan, you need to know what lenders will see on your reports. In fact, the Business Credit Builder program can help with this as well. As part of the program, you can get copies of the reports you need. Even better, an expert business credit specialist will go over them with you. They can help you understand where you are, guide you as to how to proceed.

Now, another option is stand alone monitoring. Of course, you can do this with each agency directly. But, with us you can monitor multiple business credit reports at a fraction of the cost.

Honestly, monitoring your business credit is the only way to know who’s reporting and when you can apply for more accounts.

Build a Business Credit Portfolio

A business credit portfolio is a cash flow pool of sorts. It includes all the different types of credit accounts you have. So, it is the total of all:

Vendor credit
Business credit cards
And business loans

In the end, a strong business credit portfolio allows you to even out cash flow, leverage business credit for growth, and keep going during tough times.

Don’t Neglect Personal Credit

Business credit doesn’t take personal credit out of the picture. Remember, lenders will look at everything. Personal credit can impact business credit.

Experian and FICO SBSS use personal credit in their business credit score calculation, and most traditional lenders will check both anyway. Still, if you have good business credit, they may not put as much weight on personal credit.

Be Prepared for Lenders to Check Your Business Credit

Lenders will likely check your business credit. Consequently, all you can do is be sure it is as strong as possible. Let us help. Find out more about building business credit now.

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Surprise! We Found 10 Secret Startup Financing Sources and Tactics

Secret Startup Financing – is There Really Such a Thing?

Are you just getting started? The thrill of chasing a new business dream will always lead you to one rude awakening, you need money! But how are you going to get it? Here’s where secret startup financing comes into play. C’mon in, and we’ll show you.

Well-Known Kinds of Startup Financing

If you know people who’ve started businesses, often their financing came from places like:

Using personal credit cards
Using personal savings (i.e. “bootstrapping”)
Home equity loans
Conventional bank loans (often secured with collateral)

What About Not So Well-Known Kinds of Funding for Startups?

All these can work. But they all risk personal assets. But there are a lot of OTHER ways of getting startup money, where you don’t put your home or savings on the line.

Secret Startup Funding Tactics: the View from 20,000 Feet

You will need to give up something to get these kinds of startup financing. It can be:

Business control
Business ownership (i.e. equity)
Your time and brainpower
Paying higher interest rates than you would tend to see

If these are acceptable to you, then check out these 10 secret ways to get startup financing!

#10 Venture Capital

We start with venture capital funding. But keep in mind it won’t be a workable option for most businesses and industries. Venture capitalists give money to help build new startups. But only if the VCs believe a company has both high-growth and high-risk potential. These tend to be fast-growth companies with an exit strategy already in place. Venture capitalists often look to recover their investment in 3—5 years.

VCs will also, often, want to own a large piece of a company if not a controlling stake. This means in exchange for their money, they could be calling the shots. They want game-changing businesses. So straightforward businesses won’t be on their radar unless they’re shifting the paradigm. Never forget, you are giving up a part of your ownership in your business. VCs often want a larger share of your business than angel investors do. More on angel investors later.

Venture Capital: Terms and Qualifying

Venture capitalists are much more formal investors than angels. So a valuation of your business is often going to be necessary. Specific terms will be spelled out in your agreement with them. The Securities and Exchange Commission will also have requirements. It is best practices to consult with a lawyer well-versed in business law before you sign anything.

#9 Alternative SBA Loans

We continue with a kind of private investor loan, also called private lending. Private lenders tend to be funded by investors, or by banks, or both. Private lenders are in the business of taking funds from private investors. They make private business purpose loans with those funds. This often involves real estate. These can be hard money loans.

Alternative SBA Loans: Terms and Qualifying

Private lenders will be more creative, and investigative in qualifying income. They may be willing to overlook background flaws upon explanation. But hard money loans are often short term. Terms tend to be 6—36 months. They have a higher interest rate than traditional bank loans. So account for the higher interest rate when determining if a private investor loan is right for your business.

#8 Equity Crowdfunding

If you don’t mind giving up some of your business, then consider equity crowdfunding. Equity crowdfunding is a stock offering from a company not listed on stock exchanges. Equity crowdfunding has been around for less than 10 years. It’s not the same as rewards-based (which comes from places like GoFundMe).

Potential investors visit a funding portal website. There, they can explore different equity crowdfunding investment opportunities. Note: there are limits on how much capital an individual can invest based on their income and net worth. Equity crowdfunding gives investors a stake in your business.

Equity Crowdfunding: Terms and Qualifying

Equity crowdfunding tends to be covered by federal laws like the Securities Act of 1933, Regulation Crowdfunding (17 CFR Part 227), Regulation D Rule 506 (17 CFR § 230.506), and Regulation A+ (17 CFR § 227.100). Federal law can be complex. It’s not something you’ll learn just with a little Googling.

It is always best practices to consult with an attorney well-versed in federal law, specifically, securities and corporations when it comes to interpreting terms and qualifications. This includes any changes made to these aspects of the law in the future. Therefore, factor in the cost of a lawyer if you decide to go for equity crowdfunding.

And, it’s entirely possible that more regulation will hit this industry in the future.

#7 Reward-Based Crowdfunding

This is the type of crowdfunding you’re a lot more likely to have heard of. You can get money from the crowd for your business. Start with a service like Kickstarter. But make sure you read the fine print (always a good idea!). Many crowdfunding platforms make you give all the funding back if you do not make your goal by the end of the campaign. But Indiegogo has a flexible funding option.

Reward-Based Crowdfunding Details

Crowdfunding platforms will take a percentage of the donations. That’s how they make their money. Crowdfunding platforms may push to have you deliver on your promises. So you’ll have to manufacture a product or do whatever else your business is supposed to be doing.

Given how much social media we’re all bombarded with these days, it should come as no surprise, donors can become weary of crowdfunding pitches. You will do better if you start off with a substantial (as in, over 1,000 connections) social media following.

Reward-Based Crowdfunding Caveats

Crowdfunding tends to work best when donors can personally connect with a product or service. Straightforward businesses may not do so well. The kinds of businesses which do the best often associate with:

Products not quite on the shelves yet, or
Artistic endeavors

Standard widgets or service-based businesses do not tend to attract brand ambassadors. They won’t tend to get donors too fired up. Because crowdfunding campaigns are time-consuming, it doesn’t make sense to try this form of funding unless you realistically feel your chance of success is better than 50%

Reward-Based Crowdfunding: Terms and Qualifying

Terms will differ depending on which platform you use. Check and make sure your platform of choice will allow your industry to work with them. For example, recreational cannabis use is legal in Massachusetts. But Kickstarter (for example) doesn’t allow fundraising for drugs and related paraphernalia.

Any major crowdfunding platform has a rules section, a FAQ, or ‘how it works’. Be sure to read such a section thoroughly so you know exactly what you’re getting yourself into.

#6 Peer to Peer (P2P) Lending

If you don’t mind investing time and potentially effort, then try Peer-to-peer lending. Peer-to-peer lending allows people to borrow and lend money without a financial institution. P2P platforms connect borrowers to investors faster and cheaper than any bank. These platforms check risk carefully and report on them to peer lenders. Hence your business might be listed on a P2P platform, but show a high risk. It would therefore not attract many lenders.

Peer to Peer: Terms and Qualifying

Terms vary, not only from platform to platform, but also among risk levels. The number of P2P platforms has changed in the past few years. Always check the specifics on any P2P platform’s website before committing yourself. Checking the Better Business Bureau or maybe Yelp reviews before getting started is a good idea.

#5 Online Lending

If you’re okay with paying potentially higher interest rates, and an investment of time investigating your options, online lending could work for you. For certain industries, online lending is one of the only ways to get money.

For example, medical cannabis is legal is most of the country, yet more traditional lenders are still less likely to approve a loan. But lenders that specialize in the cannabis industry (and similar hard to fund industries) are out there.

There are online lenders with over a decade in business. OnDeck dates back to 2006. And Quicken Loans goes back to 1985! As with many industries, a longer time in business is more likely to inspire confidence in a lender.

Online Lending: Terms and Qualifying

Terms and qualifications will vary. Read all the fine print with care. Check all companies with the Better Business Bureau or your local Chamber of Commerce. Always treat deals that seem ‘too good to be true’ with a healthy dose of skepticism.

#4 Private Grants

Grants will always require an investment of time. There are businesses which offer grant money. You can also check with your alma mater, or even the alumni division of your fraternity or sorority. That is, if you participated in Greek life during school. Check other organizations where you or a family member is a member of a fraternal organization like the Elks or the Moose. They may have grants IF your business is a nonprofit.

If you are a member of a protected class, like LGBTQ+, Asian, disabled, female, etc., then check Google but be mindful that there are scammers out there. Again, be sure to check the Better Business Bureau or ask your local Chamber of Commerce if you’re unsure. Terms and qualifications will vary from provider to provider and potentially from year to year.

#3 Federal Grants

Federal grants generally do not have to be paid back. For urban projects, try HUD (Housing and Urban Development). For rural projects, try the USDA (Department of Agriculture). Federal funding means paperwork . You often must show experience in what you are proposing.

Federal Grants: Terms and Qualifying

Grants have varying qualifications. They are VERY COMPETITIVE. Be sure to check information thoroughly! This includes due dates and any necessary paperwork. So beyond spending time, often you will also be gathering paperwork.

Some grants may offer preferences to businesses with minority, female, veteran, or disabled ownership. Grants often aren’t for a lot of money. So don’t use them as your sole/principle source of funding. But they can supplement other funding you get.

Make sure to do a rough cost-benefit analysis to see if it’s worth your time to apply to any particular grant.

#2 Local, City, and State Grants

Your local government also provides grants. Also try city and state websites. They’re often less restrictive than federal grants. Show you will help the community. Try to partner with a local business.

Local, City, and State Grants: Terms and Qualifying

Just like with federal grants, check all requirements and other information with care. You may need to be a resident of the state or city or county in question, or your business may need to be headquartered there. It never hurts to ask. Again, they tend to not be for a lot of money. A lot of effort for very little money may not be the best use of your time and attention.

#1 Angel Investing

Our #1 secret startup financing tactic is to use angel investing. In this instance, you’re giving up some of the equity in your business. But it’s often not control over basic decisions. Angel investors invest in small startups or entrepreneurs. Often, angel investors are among an entrepreneur’s family and friends. Yes, that can be Mom and Dad. The capital they provide may be a one-time investment to help the business get started. Or it can be an ongoing injection of money to support and carry the company through its early stages.

Angels are not covered by SEC standards for accredited investors. Angels could be friends or colleagues sitting on home equity. Or local professionals who are looking to invest. Consider people you know well and people you don’t know so well. Keep in mind, like with venture capital, you’re giving up part of your ownership in your business.

Angel Investing: Terms and Qualifying

Angels are informal investors so there aren’t any real terms. So technically, you do nothing to qualify. Although investors may (probably should) insist on a valuation of your business. No matter what, it’s always a good practice to get everything in writing.

Secret Startup Funding: Takeaways

Less conventional and not so well-known startup financing is out there. But you will have to give up something to get it, like time or business equity. No one but you can decide what will work best for you. And contact us today for information on startup financing sources that might not ask quite so much from you and your business.

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5 Business Credit Cards with Benefits That Will Surprise You

Get Business Credit Cards with Benefits – Check Out Some Unique Perks

There are business credit cards with benefits that go way beyond cash back or a low APR. Come and check out some truly unique perks.

Business Credit Cards with Benefits That Are Unique

Some business credit cards have unique benefits not fitting under any other categories, like low APR or cash back.

Some of these cards enroll you in some sort of unique benefits program. Still others may offer certain purchase discounts. And some of these aren’t quite available yet. Here’s our top 5 and a few honorable mentions.

Keep in Mind

Terms and rates are subject to change. In particular, many annual percentage rates tie to the Prime Rate. Banks and other credit providers sometimes add or drop features, or even credit cards. As always, the best source for all credit card information will be right on the provider’s website.

Business Credit Cards with Benefits Where You Can Buy Crypto: Honorable Mention – Gemini Credit Card from MasterCard (personal)

The Gemini credit card came about after Gemini’s recent acquisition of Blockrize. Blockrize already had a cryptocurrency credit card in the works. Buy crypto with this soon to arrive credit card, slated to be available in the summer of 2021.

With Gemini Earn, you can earn interest on your cryptocurrency. This compounds daily, up to 7.4% annual percentage yield. Until the card is issued, it will be hard to assess who it would be best for. Although backing from MasterCard is good news.

Unique Benefit Credit Cards: Honorable Mention – Mercury Bank MasterCard (personal)

Mercury is an angel-funded bank serving startups. Pay a $0 or $79 annual fee. Transfer APR is $5 or 4% of amount of each transfer, whichever is more. There are cashback rewards for the Mercury Bank MasterCard, but they are not specified on the bank’s website. Pay 26.99-29.99% APR. This is a good card for startups but the interest rates are high, so be sure you can pay on time before you start charging.

Business Credit Cards with Benefits Where You Can Get Amazon Discounts: #5 – Amazon Prime Store Card

If your business shops at Amazon often, then this could be the card for you. You get a $60 Amazon gift card upon the approval of your application. Get 5% cashback on Amazon purchases. And you pay no annual fee. However, limits for the Amazon Prime store card seem to be low. There are reviews of this card on the Amazon website and you should check them before applying.

Business Credit Cards with Benefits for Veterans and Active Armed Forces: #4 – Navy Federal GO BIZ Rewards Card

This Navy Federal business credit card is available as either a MasterCard or Visa. Benefits differ depending on which card type you choose. Get 1 point for each dollar spent but rewards depend on if you have a Visa or MasterCard. With a Navy Federal Visa, you get access to Visa SavingsEdge. With a MasterCard, you get a collision damage waiver.

Pay no foreign transaction fees. There is no earnings cap and there is no annual fee. Pay an APR as low as Prime+ 5.90%.

Get GO BIZ Rewards. You can redeem points for gift certificates, cash deposited into your savings account, and more. Note: this card comes from a credit union, and you must be a member first. You can only be a member of the Navy Federal credit union if you’re attached to the military, the Department of Defense, or the National Guard and their families. If you can qualify for this card, the interest rate is stellar and it goes beyond an introductory period.

Unique Benefit Credit Cards: #3 – Brex Credit Cards for Startups

You will not need to provide a personal guarantee. They will underwrite based on your EIN. Only companies organized and registered in the US may apply for a Brex account. These are like C-corps, S-corps, LLCs, or LLPs. Pay no annual fee for the Brex credit card for startups.

Get unlimited points. You can get 7x points on rideshare. Get 4x points on Brex travel. You get triple points on restaurants. Get double points on recurring software costs. And get 1x points on everything else.

Earn points on everything you buy. Redeem them for Bitcoin or Ethereum through Brex’s partner TravelBank. But there are some industries they will not work with, as well as others where they want more paperwork. They will not accept the cannabis industry, and crypto is a restricted industry.

Credit Cards with Benefits Where You Can Build Personal (and Some Business) Credit: #2 – Sofi Credit Card (personal)

While this is a personal card, the perks are so unique we had to include it. You can earn 2% cash back on all eligible purchases. You can redeem your cash back straight into crypto with a SoFi active invest account. Pay no annual fee and no foreign transaction fees.

Make 12 monthly on-time payments of at least the minimum due, and SoFi knocks 1% off your APR. Otherwise, standard variable APR for purchases is 12.99-24.99%, based on creditworthiness. The SoFi credit card‘s APR ties to the Prime Rate. Balance transfer APR is 12.99-24.99%, based on creditworthiness.

Perks programs include the Sofi credit card rewards program. Rewards include a Lyft credit for a minimum number of rides taken in a month, once per month. There’s also the Sofi member rewards program. That’s where you can apply points toward loans, including student loans, and Mastercard World Elite.

Credit Building

Since this card lets you plow points into paying off loans, it can improve your personal credit. And paying on time will improve your personal credit even more. Experian’s business credit score calculations include personal credit scores. So, indirectly, this card could help you build business credit.

Business Credit Cards with Benefits to Help You Manage an SBA Express Loan: #1 – Zions Bank SBA Express Business Visa Debit Card

The Zions Bank SBA Express Business Visa debit card is #1 because it floored us. And then we wondered – why doesn’t every SBA Express lender do things this way? Pay no membership/account fees. Use this card to manage SBA Express loan money from Zions Bank that’s already approved.

Get travel accident insurance and other credit card perks, which you would not normally get from an SBA Express loan. This card is only available to SBA Express borrowers. If you’re an SBA Express borrower (or want to become one), we could not find a downside to getting this card.

Small Business Credit Cards with Benefits: Takeaways

Business credit cards with benefits have positives beyond lower APRs and travel points. Buy bitcoin, or access Visa SavingsEdge, or the MasterCard Easy Savings program. Or pay low interest rates by leveraging a connection to the armed forces. Or even manage an SBA Express loan. But never forget: the best business rewards credit card is the one you’ll use, with rewards that make sense to you.

Let us work with you, and help you decide on what’s best for you and your business.

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Surprise! Charitable Credit Cards Really Do Exist

Truly, charitable credit cards do exist. But, how do you find them? Furthermore, how do you use them to support causes you care about? Finally, how do you find the right one for you? Oh, and can you use them for your business? Let’s find out.

Top 3 Charitable Credit Card Options

Whether you want a card that donates to charities, community development, or the environment, you do have options. However, there aren’t a lot of them. Furthermore, it takes some research to find exactly what you are looking for.

Regardless, we’ve put together a list to help you get started. Remember, specifics such as interest rates and terms can change. So, you’ll need to check directly with the credit provider for the most up-to-date information.

Score the best business credit cards for your business. Check out our professional research.

Green America

According to the website, Green America uses a portion of each purchase to help to create a “more socially just and environmentally sustainable society.” Of course, Green American is a well known company. However, they do not make it clear exactly how using the card works to achieve this goal. As a result, you should contact them directly if you want more details.

Initially, for the first 12 months, there is no annual fee. Also, for this same time period there is no interest on purchases and balance transfers. After that, it varies between 9.99% and 19.99% based on how creditworthy you are.

They do offer a rewards program as well. In fact, you earn one point per dollar on net purchases. There’s no limit, and the points do not expire. You can use points for travel rewards or merchandise. This is a consumer credit card.

Aspiration

First, there is a waiting list for this card. Still, if it’s something you feel strongly about you may want to get on it. Here is how it works. Every time you make a purchase, they plant a tree. Even better, they let you plant one too. In addition, you can track your progress toward reducing your carbon footprint in the app. Then, you get cash back up to 1% of all your purchases for each month that you get to zero. This is also a consumer card.

Amalgamated Bank

Amalgamated Bank’s cards offer the chance to make a change. In fact, they call themselves “the bank for changemakers.” The company supports “sustainable organizations, progressive causes, and social justice.”

They aim for environmental and social responsibility. They are “net-zero.” Also, they use 100% renewable energy. Furthermore, they pride themselves on their history of supporting immigrants, affordable housing, and workers’ rights.

For example, they work with over 1000 unions to ensure teachers, steelworkers, firefighters and others get what they need to do their jobs.

As a result, when you use credit cards from Amalgamated Bank you are supporting these same causes.

Score the best business credit cards for your business. Check out our professional research.

Cards From Amalgamated Bank:

They offer a number of credit card options for businesses. Here’s a little about each one.

The Commercial Edition® Visa®

This card works well for travel, entertainment, and other spending. It helps companies keep control and improve cash flow. Additionally, it also helps them understand their spending patterns by offering specific reporting options. Furthermore, account holders have the ability to establish spending limits for individual card holders.

VOX® Business Card

Similarly, this card is great for travel, entertainment, and purchasing. Surprisingly, VOX changes and grows with the business to give flexibility when it comes to cash flow and minimum payment options. The credit limit also tends to be high. Terms and rates vary.

Purchasing Edition® Visa® Card

The Purchasing Edition® Visa® Card is the one to go with if you need to receive goods faster and negotiate cheaper costs with suppliers. You can also improve cash flow.

Amalgamated states that you need to speak with an account executive for details on each card and which one might be best for your business.

Other Resources For Help Finding Charitable Credit Cards

Another way to find options for charitable credit cards is to look for those that work with these agencies.

The Global Alliance for Banking on Values

The Global Alliance for Banking on Values (GABV) is a network of leaders from banks around the world. They are committed to positive change in the banking industry.

Their goal is to change the entire banking system to support environmental, social, and economic sustainability. The alliance is made up of a variety of banking institutions.

Score the best business credit cards for your business. Check out our professional research.

Community Development Financial Institutions (CDFIs)

According to Investopedia:

“Community Development Financial Institutions (CDFIs) are private sector financial institutions that focus primarily on personal lending and business development efforts in poorer local communities requiring revitalization in the U.S.”

Of course, working with CDFIs is another way companies can offer support to each other and their communities.

Charitable Credit Cards do Exist

As you can see, if you are looking for a charitable credit card, this is a good starting point. Depending on what you want, you may have to do more work however. For example, are you looking for a card that donates to a specific charity? Rather, are you more concerned with finding a company that holds to the same values you do? There is a card out there for you, but it may take some time to find it.

Credit Suite can help you find credit cards and other funding options for your business. Find out more today.

The post Surprise! Charitable Credit Cards Really Do Exist appeared first on Credit Suite.

11 Tax Write Offs for Small Business That May Surprise You

You have to pay your taxes. Not only is it illegal not to, but paying your personal and business taxes is a major factor in fundability. If you apply for business funding and a lender sees you have not been paying your taxes, it will likely result in denial. After all, if you can’t pay … Continue reading 11 Tax Write Offs for Small Business That May Surprise You

11 Tax Write Offs for Small Business That May Surprise You

You have to pay your taxes. Not only is it illegal not to, but paying your personal and business taxes is a major factor in fundability. If you apply for business funding and a lender sees you have not been paying your taxes, it will likely result in denial. After all, if you can’t pay your taxes, how can they believe you will repay them? That said, there is no reason to pay more than necessary. There are several tax write offs for small business that can help. Many of them may surprise you.

Tax Write Offs for Small Business Can Save You Money

In truth, a tax professional is the best way to make sure you take advantage of all of the tax write-offs available. There are more than most realize. Below is a list of tax deductions for small business that can help. Remember, this is not a complete list, and not every business will be eligible for every deduction. Always work with a tax professional to ensure your business taxes and personal taxes are filed properly.

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

11 Tax Write Offs for Small Business

Check out this list of tax write offs for small business, and ask your tax professional if any of them are an option for you.

#1: Simplified Home Office Deduction

When it comes to business tax write offs, this one is pretty popular. Most everyone knows there is a way to deduct home office expenses on your taxes. If you work from your home, you can deduct the portion of that home that you use specifically for business purposes. However, you must have a dedicated office space that you only use for work. Then, you have to determine the percentage of home expenses that are associated with the business.

For example, if your home office space is ¼ of the total square footage of your home, you can deduct ¼ of the utilities, etc. as a business expense. As you can imagine, this calculation can get complicated and tedious quickly. As a result, a lot of home business owners do not take this deduction. They do not feel they can properly keep up with it. Some do not feel the deduction is worth the time it would take to keep up with all that is necessary for the calculation.

What you may not know is that there is a simplified calculation for this deduction. The simplified option is a quick and easy way to determine your home office deduction. You just multiply the total square footage of the space you dedicate to work only by $5. Remember, the maximum amount you can claim using this method is $1,500

#2: Qualified Business Income Deduction (QBI)

If you own a sole proprietorship, partnership, or an S corporation, you may be eligible for a qualified business income deduction. If so, you could deduct up to 20% of your qualified business income from your tax return.

That means if you have qualified business income of $100,000, you can deduct $20,000 and only pay taxes on $80,000.

#3: Bonus Depreciation

Depreciation tax write offs for small business are nothing new. Business assets like equipment are depreciated on the books over time at a set rate. That means you do not count the full cost of the item in the first year it is purchased. However, under bonus depreciation, you can deduct more than standard depreciation in the first year.

Before 2017 the bonus depreciation amount was 50% of the cost. Then, you would depreciate the remaining 50% of the cost over the life of the asset. However, the new law says that for anything purchased between September 27, 2017 and January 1, 2023, you can deduct 100% of the cost in the first year the item is put into service.

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

You don’t have to, but it could be advantageous to do so. Your tax professional can help you make that decision.

What types of items qualify for bonus depreciation? Tangible assets with a useful life of 20-years or less as dictated by the IRS.

Some items that fall into this category include:

Machinery
Equipment
Computers
Appliances
And furniture

#4: Business Related Legal and Professional Fees

If you use an attorney or an accountant for business services, their fees are deductible. Did you have an accountant prepare your taxes? That’s deductible. Using an attorney to help draft employment contracts or a writer to write a business plan? That is all deductible.

#5: Dues and Memberships

Fees paid to professional organizations for membership are deductible.So, a pediatrician could deduct any fees paid for membership to the American Academy of Pediatrics, or an architect could join the American Design Drafting Association (ADDA). If the business pays the fees, it is tax deductible on that business’s tax return.

#6: Interest on a Business Loan

Did you know you can deduct the interest you pay on a business loan? If you meet a few qualifications that is.

Qualifications include:

Funds come from an actual lender, not family or friends
You are liable for the debt, legally
Both you and the lender intend for the debt to be repaid

It’s also important to note that you have to actually spend the loan funds. You can’t just put them in an account and make payments. That’s considered an investment by the IRS, and therefore does not qualify as one of the tax write offs for small business.

#7: Bank Charges

Pay attention to your bank and credit card statements. All those little charges and fees are tax deductible. It may not seem like much, but they can add up. Especially when you consider all of the charges this can ecompass.

Costs such as:

Cash deposit fees
Merchant service fees
Late fees
Online banking fees
And even credit card convenience fees

These all count, so keep up with them.

#8: Continuing Education Expenses

As a business owner, you can pay for continuing education for your employee and yourself, and it could be tax deductible. The IRS says if the cost is related to training that maintains or improves skills required for the job, it is deductible. The deduction includes a number of education related expenses.

For example:

Course fees and tuition
Books
Supplies
Lab fees
And other similar items

#9: Business Animals

Animals that are used in the course of business are tax deductible. That means both the cost of the animal itself and the care and feeding of it. Of course, you can’t just buy a dog or cat and call it a business animal. However, if you have a dog and you use it as a guard dog in your business, some of those expenses could be tax deductible.

One fun example is a junkyard owner who bought cats to help with rats. The IRS ruled it was a legitimate business expense and therefore, deductible.

If you are an animal breeder, you can also deduct costs related to animals for breeding.

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

#10: Website and Other Internet Related Expenses

The costs associated with maintaining a website can be tax deductible. This may include hosting fees, design costs, and a number of other related expenses.

#11: Magazine Subscriptions

You can deduct the costs of some subscriptions, including those for professional journals, trade publications, and even technical journals. It’s important to note that you cannot deduct the cost of magazines for a waiting room.

Don’t Do It On Your Own

Want to know the number one sure fire way to pay more than you need to in business taxes? Try to do them yourself. Don’t do that. Hire a professional. After all, the fees are tax deductible. Then, you can know you are getting all the tax deductions for small business you are eligible for. Don’t let not paying taxes negatively affect business fundability. Want to know more about fundability and what may be affecting yours? Try a free consultation with one of our business credit specialists now.

The post 11 Tax Write Offs for Small Business That May Surprise You appeared first on Credit Suite.

The Surprise that Makes Recommended Vendors for Business Credit Different

When we talk about recommended vendors for business credit, there are several questions that pop up. First, what exactly do we mean by vendors? Then, what makes some vendors recommended for business credit, and others not? After that, who are these recommended vendors and how do you find them? Let’s find out.

What Do We Mean by Vendors

This is probably the best place to start. When using the term “credit from vendors,” we are talking about credit from companies that are not financial in nature, like banks and other credit unions. Rather, their focus is on retail, and they extend net terms on invoices to customers as a courtesy.

This means customers have either 30, 60, 90, or however many days the net terms state to pay in full. It’s different from a credit card because it is not revolving credit. So, when we talk about vendors, this is not a card that you apply for. This is a retail company that sells products you can use in your business, then you do not have to pay the invoice immediately.

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

What are Vendors for Business Credit?

Don’t a lot of vendors offer net terms? What makes them so special? Well, there is a small subset of vendors that we call starter vendors. Starter vendors do two things that not a lot of vendors do.

First, they will extend net terms to your business without a credit check. That’s not to say that they do not have standards. They will not give net terms to just anyone. However, they will consider other factors besides credit score. For example, they may take into consideration:

Current relationship with the customer
Time in business
Average balance in business bank account
Annual income
And more

But that’s not all. Getting net terms without a credit check is great, but it does nothing to build your business credit score if the payments do not show up on your business credit report. True starter vendors will also report the payment you make to the business credit reporting agencies. Again, doesn’t sound like a big deal, right? That changes when you realize that only 7% of companies that extend credit of any type to businesses report positive payment history to business credit reports. A lot more will report negative payment history, but that does not help build a strong business credit score.

Finding Vendors for Business Credit

Vendors do not typically make it obvious if they report or who they report to. If you call, you may or may not get to talk to the right person to ask. You’ll likely be on hold for a long time, and once you get to someone they may or may not tell you.

One option is to just apply for vendor accounts and hope you get approval. Then monitor your business credit report to see if they are reporting. However, this trial and error method will take a lot of time and will likely cause a serious amount of frustration

It will take away from you doing what you need to be doing, which is running your business. Yet, it doesn’t have to be this way. There is a better option. A business credit specialist can help you find vendors that you qualify for, and that will report your on-time payment, not just late or missed payments.

They know who to talk to, what questions to ask, and the language to use to get the answers you need. This alone saves you a huge amount of time and frustration. You not only avoid applying for accounts that you do not yet qualify for, but you also find those accounts that will actually help you build your business credit score.

Our business credit specialists have a list of starter vendors that they already work with. This list is always changing, as vendors and lenders are always changing their policies.

Also, it takes more than 3 or 4 vendors to build a strong enough score to move on to the next level of credit. Our specialists work with many vendors that can help you get things going. Here is a sample of some recommended vendors for business credit.

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

Grainger Industrial Supply

One of the first vendors for business credit business owners find out about is Grainger. They sell hardware, power tools, pumps and more. They also do fleet maintenance, and they report to Dun and Bradstreet. If a business doesn’t have a credit score already,they will want to see additional documents like accounts payable, income statement, balance sheet, etc.

To qualify, you need:

To be an entity in good standing with Secretary of State
EIN number with IRS
Business address (matching everywhere)
D-U-N-S number
Business License (if applicable)
Separate, dedicated business bank account
To be registered to Secretary of State (SOS) for at least 60 days

Marathon

Marathon Petroleum Company provides transportation fuels, asphalt, and specialty products throughout the United States. The products support commercial and industrial, as well as retail operations. They report to Experiand and Dun & Bradstreet.

To qualify, you need:

To be in good standing with the Secretary of State
An EIN number with IRS
A Business address- matching everywhere.
D-U-N-S number
Business license (if applicable)
A business bank account
Business phone number listed on 411

Your SSN is required for informational purposes only. You can give a $500 deposit instead of using a personal guarantee, if you have been in business less than a year.

Supply Works

Supply Works is a part of Home Depot. They offer facility maintenance supplies. It’s important to know that they do not accept virtual addresses, so you will need to use your home address if you do not have a brick and mortar location. They report to Experian.

To qualify, you need:

To be in good standing with Secretary of State
EIN number with IRS
Business address (matching everywhere)
D-U-N-S number
Business License (if applicable)
Business Bank account
Trade/Bank references
There is no minimal time in business requirement

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

Beyond Recommended Vendors for Business Credit: What’s Next

These vendors are great for getting started with building a business credit score. However, a good business credit specialist won’t stop there. They can guide you to a system that will help you through the business credit building process, from establishing your business credit profile to finding initial accounts, all the way through knowing which accounts to apply for next that you actually qualify to get.

For example, once you have your established business credit profile and have some initial accounts reporting, you may think you are done. Those reported payments start building your credit score, and all you have to do is keep paying. That’s not quite how it works.

First, there aren’t that many starter vendors out there. You are going to need credit from someone else eventually. But, applying for accounts before your business credit profile is ready for them wastes more time, more money, and causes more frustration.

For example, some retailers will extend revolving credit rather than net terms after you have 5 or more initial accounts reporting. Some need to see a longer and larger credit history. A business credit specialist can help you with a program to guide you in knowing which accounts you’re ready to apply for, and when.

How to Use Vendors for Business Credit Wisely

Here’s the thing, it’s not all about business credit when it comes to vendors. For a well rounded credit portfolio, you are going to need to use all vendor accounts wisely. You may need credit with a vendor that does not report. But, to get approval, you’ll need to have a strong business credit profile.

You also need to use all vendor credit wisely. When you are working toward building business credit, you are limited on which vendor accounts you can get approval for. Then, you are even further limited on which vendors will help you build your business credit score.

But do not make the mistake of thinking that means you need to buy things you don’t need because these are the only vendors you can get that will help your score. Use these vendors to purchase general items all businesses need, just until you get to the point you need to be. They may or may not offer products specifically for your business type. But, they most will offer fuel, office supplies, cleaning products and more. These are things all businesses can use.

Advanced Vendors

Building business credit is the goal, and starter vendors are a necessary part of that. Still, the end game is building and growing your business. A strong business credit profile is one tool to help you do that. It’s job is to help you get credit with any vendor you need, whether they report or not. We call these advanced vendors.

Consider this example. Imagine you need to buy inventory for your business. However, your cash flow isn’t yet where it needs to be. Using an inventory supplier that will extend net terms will allow you to purchase the inventory you need. You can pay the vendor after you sell the inventory. This is just one very general example, but you get the point.

Recommended Vendors for Business Credit Are Important, But So Are Other Vendors

Both types of vendors, reporting and non reporting, are necessary for building and running a strong business.

In fact, there are a lot of vendors out there that many do not even know offer business accounts. They can help your business grow and thrive, but you have to know they exist. This is another way a business credit expert can help you save a lot of time and frustration.

A good business credit specialist will help you access the vendors your business needs to grow. They can help you determine when you qualify for these vendors, and guide you in the right direction so that you reach the required qualifications as quickly as possible. Because when it comes to running your business and managing cash flow, there is no time to waste.

The post The Surprise that Makes Recommended Vendors for Business Credit Different appeared first on Credit Suite.

Do You Owe Tax on Business Credit Card Rewards? The Answer Might Surprise You

And 3 Surprising Things Other than Tax on Business Credit Card Rewards that May Impact Your Taxes

When choosing a credit card, whether personal or business, there are several factors to compare. Interest rate is probably the one most consumers consider first, followed closely by credit limit, and then rewards. Throw an annual fee in the mix, and you have even more to ponder. Back to the rewards thing though. Who doesn’t love a good reward? Cash back, points, airline miles galore, these are often the things that make the choice between one card or the other most interesting. When it comes to rewards however, one thing most do not consider is that they may have to pay a tax on business credit card rewards.

When Do You Have to Pay Tax on Business Credit Card Rewards?

Whether or not you pay tax on credit card rewards on your business credit cards will depend. Depends on what you ask? It depends on whether you had to spend money to get those rewards. For example, if you earn cash back, that would be a discount rather than income. It is therefore not taxable. The same is true if you earn points or travel miles as a percentage of the money you spend. If you earn $1 cash back for every $5 spent, that is considered a $1 discount, not $1 of income, and therefore not taxable.

If, however, all you had to do was open the account to earn the reward, and you did not have to spend anything to get it, then you may have to report it as income. This is the case with the bonuses that many credit card companies are fond of offering for opening an account with them. They may come in the form of cash, points, or miles. It doesn’t matter what form they take. If you didn’t have to do anything to get them, they are likely going to be taxable.

If your credit card information specifically states the funds are taxable, or if you receive a form 1099 from your credit card company, you can be sure there will be a tax impact. However, the absence of these two things does not set you free. A company only needs to to send a form 1099 if the amount is $600 or greater. Amounts under $600 are still taxable, but companies only have to send a form 1099 if the amount is over $600.

Check out our professional research and score the best business credit cards for your business.

Real Life Example of Tax on Business Credit Card Rewards

In 2012, some Citibank card holders received frequent flyer miles as a gift for opening their accounts. At tax time, a 1099-Misc came in the mail. It indicated the miles had been reported to the IRS as income with a value of 2.5 cents per mile. As you can imagine, this was an unwelcome shock to most. Since they did not have to spend anything to receive the miles, the reward was taxable income.

Special Considerations for Tax on Business Credit Card Rewards

When it comes to tax on rewards from business credit cards, there are some special considerations that can affect the tax impact of the rewards.

Using Rewards to Offset Business Expenses

If you are using business credit card rewards to reduce the cost of business purchases, that affects the amount of a business expense that is tax deductible.

For example, if you purchase a new printer for your business for $300, and you offset the cost with rewards equal to $100, you can only deduct $200 as a business expense. In this way, business credit card rewards can still increase your taxable income, though they are not technically taxable as income directly.

Using Business Credit Card Rewards to Offset Personal Expenses

If you happen to use rewards earned on business credit cards for personal expenses, rather than business expenses, you will not have to worry about them reducing business expense and thus indirectly affecting your tax liability. The question has come up about whether rewards earned on business cards and used for personal purposes should be personal taxable income. The IRS has said no. They will not consider this to be taxable income. As a result, there is zero impact on your taxes from these rewards.

Charitable Donations

If you receive a $500 bonus for opening an account, that is taxable income because no spending took place to get those funds. If, however, you have the option to donate that amount to a charity, you do not have to report that $500 as income. And it is also tax deductible as a charitable contribution. It’s a win/win.

Recap: How Do You Avoid Tax on Business Credit Card Rewards?

What’s the takeaway? To best use your business credit card rewards with minimum tax impact, do the following:

Donate any bonuses, such as rewards not attached to required spending, to charity.
Use rewards such as cash back, points, or miles for personal expenses rather than to reduce business expense.

How Do I Find the Best Business Credit Cards for My Business?

There are a ton of options when it comes to choosing a business credit card, and which one is the best for your business will depend on many factors. The first, as mentioned earlier, should probably be interest rate. You want the interest rate to be as low as possible.

Next, consider the credit limit. Does it give you access to enough funds to handle what you need it to? If you are going to consistently have balances at or near your credit limit, that’s no good. It will lower your debt-to-credit ratio, which directly impacts your credit score in a negative manner.

The next thing to look at is rewards. You need to find the card with the rewards that will be the most useful to you. A great travel rewards program is only great if you travel a lot. Triple points earned at gas stations and restaurants sounds good, but it is only a good deal if you spend a lot of money at gas stations and restaurants. If most of your credit cards spending is on supplies or inventory, these rewards will not be useful to your business.

Check out our professional research and score the best business credit cards for your business.

Next, balance the cost of the rewards versus how much you will actually benefit from them. For example, you may have a card with rewards that are good for you. But if it has a high annual fee, determine if the rewards benefit actually makes up for the cost of the annual fee. Do you pay $100 fee each year? Then be sure to earn more than $100 worth of useable rewards with that card annually.

How To Get Business Credit Cards

Of course, the business credit card discussion is moot if you don’t even have one. Perhaps you have tried, but you can’t get approval. Here’s the key. You need to have strong business credit to get the best business credit cards. This is credit that is separate from your personal credit, and therefore the accounts on your business credit report do not affect your personal credit score.

Business credit doesn’t just happen on its own however, and most new businesses do not realize this. In fact, many new small business owners are not aware that business credit is even a thing, and consequently they have no clue how to set up their business properly to allow them to build business credit.

How Do You Set Up a Business to Build Business Credit?

Before you can worry about tax on business credit card rewards, you have to have business credit cards. Before you can get business credit cards, you need business credit. To get business credit, you have to set up your business to be a separate entity from yourself.

The first step in this process is to incorporate. It is easy for a new business owner to simply operate as a sole proprietorship or a partnership, but this ties up all your personal credit data with your business information. By incorporating, you are taking the first step in separating your business from your personal credit.

Next, apply for an EIN. You can do this for free at IRS.gov. It is a number that functions as an identifier for your business the same way your SSN is a personal identifier. You will use this number on business credit card applications instead of your SSN.

Then, you will need to get a DUNS number. This is a unique identifying number that you get from Dun & Bradstreet. Since D&B is the largest and most commonly used business credit reporting agency, this number is essential to building business credit. Get it for free on the Dun & Bradstreet website, but don’t let them fool you. They will try to sell you a bunch of stuff you don’t need. You really only need the number, and it is free.

Other Things that Will Make Your Business Appear Fundable On its Own to Lenders

What else does your business need to appear as a fundable entity separate from you personally?

A phone number and address that is different from your personal phone number and address. The phone number should be through a toll -free exchange and listed in the directories along with the business name and address.
A business bank account that all business transactions run through. Not only does this help separate your business as its own entity, but it also makes it easier to separate business expenses come tax time. In addition, some lenders actually make a business bank account a requirement for approval.
A professional website and dedicated email address. The email address should have the same URL as the website, and the web address should be something professional and paid for. A free email or website service is not suitable for these purposes.

Surprise! Here Are 3 Other Things that are Taxable that May Not Know

Now you know whether or not your credit cards rewards are taxable, how to avoid tax impact from business credit card rewards as much as possible, and how to get the best business credit cards for your business. How about a few fun facts? Here are 3 things that are taxable that you probably did not realize.

Bitcoin

Yes, if your bitcoin is currently worth more than you paid for it, the gains are taxable just like with stocks and bonds. This also rings true of Bitcoin you get from your employer as compensation, a bonus, incentive, or even as a gift.

Gifts from an Employer

Speaking of gifts from employers, they are usually taxable. This includes more than cash bonuses. Did your boss give you an awesome new set of golf clubs or a weekend in his beach condo? That may be taxable too.

Check out our professional research and score the best business credit cards for your business.

Bartering

This one was a total shock to me. One of my favorite small business budget hacks is to barter within my network for goods and services. It is not uncommon for small business owners to trade off for any number of things. Graphics, social media management, content writing, cleaning services, printing services, and more. The cash value of those trades can actually be taxable. Who ?

Do You Owe Tax on Business Credit Card Rewards? Maybe, Maybe Not

It all depends on how you got those rewards and what you do with them. Most credit card rewards are actually a discount, because they are directly related to some level of spending. These are not taxable, but they can still increase your taxable income by decreasing your business expense deduction if you choose to use them to reduce your business expenses. But if you choose to use those rewards to reduce personal expenses, they have no tax impact at all.

Bonuses for opening an account are different. They are taxable as income, even if they do not reach the $600 threshold to trigger a form 1099. This changes if you get the option to donate these funds to charity and choose to do so. Not only are they then not taxable, but they also count as a tax deduction.

The best option to avoid tax on business credit card rewards is to choose the card with the rewards that will best benefit you personally. Then you can redeem rewards for personal use. For bonuses, just donate them to charity if given the option. It looks good for your business, and it will only help you come tax time.

Always be careful to weigh the tax benefit of not using rewards for business expense against the actual benefit of the cost reduction however. You may find reduced expenses to be worth the cost come tax time.

The post Do You Owe Tax on Business Credit Card Rewards? The Answer Might Surprise You appeared first on Credit Suite.