Tag: working

4 Lifesaving Ways to Get Fast Working Capital in a Recession

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

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

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

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

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

Invoice Factoring for Fast Working Capital in a Recession

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

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

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

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

Fundbox

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

BlueVine

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

Merchant Cash Advance

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

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

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

Working Capital Loans for Fast Working Capital in a Recession

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

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

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

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

Business Credit Cards for Fast Working Capital in a Recession

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

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

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

Credit Line Hybrid

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

What are the Qualifications?

How hard is it to qualify?  It’s probably easier than you think.  You do need good personal credit.  That is, your personal credit score should be at least 685.  In addition, you can’t have any liens, judgments, bankruptcies or late payments.  Also, in the past 6 months, you should have less than 5 credit inquiries, and you should have less than a 45% balance on all business and personal credit cards.  It’s also preferred that you have established business credit as well as personal credit.

If you do not meet all of the requirements, all is not lost. You can take on a credit partner that meets each of these requirements.  Many business owners work with a friend or relative to fund their business. If a relative or a friend meets all of these requirements, they can partner with you to allow you to tap into their credit to access funding.

How to Get Business Credit

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

Establish Business CreditFast Working Capital in a Recession Credit Suite2

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

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

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

Set Up a Separate Bank Account

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

Work with Starter Vendors

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

Beyond Starter Vendors

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

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

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

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

An Ounce of Prevention…Always Prepared

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

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

Here is how you start.

Figure Out What Happened

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

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

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

Learn to Read Financials

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

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

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

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

Evaluate Processes

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

Use Fast Working Capital in a Recession Wisely

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

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

Support Remote Working and More –10 Brilliant Business Tips of the Week

You’re concerned about the coronavirus. So are we. So, we put together 10 awesome business tips helping you to support remote working even long after COVID-19 becomes a distant memory.

The Hottest and Most Brilliant Business Tips for YOU – Support Remote Working and More

Our research ninjas at Credit Suite put on surgical masks and smuggled out ten amazing business tips for you! Be fierce and score in business with the best tips around the web. You can use them today and see fast results. You can take that to the bank – these are foolproof! Support remote working to keep your employees safe – plus more ways to refresh your business and marketing.

Stop making stupid decisions and start powering up your business. Demolish your business nightmares and start celebrating as your business fulfills its promise.

And these brilliant business tips are all here for free! So, settle in and scoop up these tantalizing goodies before your competition does!

#10. Content is King; We’re All Just Vassals (or Maybe Court Jesters)

Our first jaw-dropping tip is all about kicking off your content marketing the right way. Inc says the first key point is to own your own content. Oh yes. Oh my God, yes.

What does this mean?

Owning your own content virtually always means your business has a blog and a website. It’s not Wix and it’s not Medium. Content ownership matters because you never know when a platform will implode. Remember: people used to think MySpace would be around forever.

Heh, not so much now, eh?

Here’s another tip we really liked.

Define Your Niche, and Then Broaden It

What does Credit Suite write about? Well, we don’t write about business in the generic sense. Rather, we write about business credit. And there are some natural offshoots to that. That includes these Friday blog posts about marketing. It also includes what it takes to start a business, and how to fund yours.

But we don’t write about just anything when it comes to business. So, don’t expect to get advice about working with foreign exporters here. But that’s okay. There are plenty of other places to find such information.

The bottom line is you don’t have to be all things to all people. For that way lies madness. Get good at your niche!

#9. Marketing for Those of Us with Champagne Tastes and Beer Pocketbooks

The next awesome tip is about marketing for a startup when your budget is, shall we say, less than grand. Young Upstarts notes the old school business card is still a fantastic way to market yourself.

It also has the benefit of being something tangible. Even with fewer gatherings (thanks a heap, COVID-19), there’s nothing stopping you from slipping a business card into an envelope with something you’re mailing anyway. That could be advertising materials or even invoices.

Here’s another idea we loved.

Fishbowl Marketing

Have you ever seen one of these on a receptionist’s desk? It’s one of those things where you toss your business card (there’s another use for ‘em) into the bowl or bucket. You’re entered into a contest for … something. 

Of course, only one person (or only a few people) wins. What happens to all those other business cards?

If you said they’re added to a marketing mailing list, then give yourself a gold star. And if they’re just tossed, then what a wasted opportunity!

So, collect the cards. And for the folks who don’t win? How about telling them they’re entered into a second chance drawing or future drawings? Give to get, as we say.

Mailing lists filled with warm prospects are worth more than their weight in gold. The good old fishbowl is an easy way to build one, for nearly no cost.

Support Remote Working Credit Suite

If you are as passionate about succeeding in business as we are, please help us spread the word about how to take the plunge and save time and money – and your sanity! Support remote working for more than safety and health – it’s great for productivity, too. Plus, nine more fantastic tips!

#8. You Have from the Ground Floor to the Top Floor to Convince Me: Now, Go!

Our following life-changing tip concerns writing an elevator pitch. Business Knowhow lays it all out for us.  This is a skill you can use elsewhere in life, by the way. 

Maybe the best part of this article is the emphasis on personal connections and tailoring. We believe in value in every transaction here at Credit Suite. And you should, too! Your audience certainly does.

It all starts with understanding what they’re looking for. So, let’s go with a fer-instance.

An Example

Let’s say you sell perfume. A retailer is wondering whether it’s worthwhile to set aside some of their valuable shelf space for your product. An end user is wondering what your product smells like. And they may be wondering if you ever test on animals. And a distributor may be concerned with how well your product is packaged to prevent breakage, and where your manufacturing center or warehouse is. 

Telling your end user or a retailer that your product is made in Milwaukee is going to get you tuned out right quick. And telling a distributor that your product smells like lavender and mint doesn’t matter to them unless your packaging fails. Or there’s a spill on the highway.

A Personal Story

Elevator pitches (often in writing) are an integral part of the author experience. In a few moments, I have to convince a publisher that they want to read all 100,000+ words of a science fiction story showcasing the struggles in a society composed of humans, smart robots, and aliens.

This has led me to understanding better about what a publisher (or agent) wants. They want something that sells. That’s their bottom line. So, while they want to know if my book will be a page turner, they’re also wondering what the ultimate readership could be. This helps them figure out how to market it. So, if I tell them it’s a cross between Alien Nation and I, Robot, then they’ve got a much better idea of who might want to read the novel. 

This is different from how the story might be pitched to readers. That’s the blurb (you know, the piece on the back cover of a book or in the description section on Amazon). For a reader, I might draw an analogy to current attitudes toward immigration and technology.

You may have a service and not a product. And if you have a product, it’s probably not a book. So, your specifics will differ. But this is yet another area where tailoring will serve you well.

#7. Good Blog Posting is no Accident

So, for our next sensational tip, we looked at creating converting blog posts. Opt in Monster says that breaking up texts makes it more compelling.

That’s kind of why we do it in these posts!

But there’s more than that, when it comes to writing a blog post to help with conversions. We’ll just concentrate on one of the tips in this article.

Bang! Bullet Points to the Rescue

The best things about bullet points are:

  • They’re easy to read
  • Readers are naturally drawn to them
  • They’re a great way to make short, sharp points
  • You don’t need to even write full sentences
  • In fact, they’re supposed to be a lot more like headlines
  • And they break up text beautifully

#6. Creating Bite-Sized Content for Bite-Sized Attention Spans

This tip is so cool, and it works! G2 tells us all about creating ‘digestible’ content. 

Did you know the current attention span is something like eight seconds?

That’s less time than it just took me to read the first part of our tip #8 (right before the ‘An Example’ subheading). And I know what it says! The first time you read it, it probably took more like eight seconds to read the first one or two paragraphs.

Yeah, it’s like that. Whoa.

Short, Sweet, and Maybe to the Point

The article focuses on some great forms of short content and how to get them going. We highly recommend reading the article in its entirety. So, let’s talk about one type of nugget-sized content.

Videos

We create business credit videos here. Lots and lots of videos. Some are short, and some are longer. The beauty of video isn’t just that you can get a lot across in a shorter amount of time. It’s also possible to multitask when it’s on. You’re busy. I’m busy. All God’s children are busy.

So, make it easier for your unbelievably busy audience to connection with you and give them short, sweet content mixed in with the deeper dives.

#5. Keep Your Workers Safer and Support Remote Working – Now and Forever

Support Remote Working Credit SuiteGrab this mind-blowing tip while it’s hot! 

And you can help people, too, which is awesome. You can do so when you support remote working.

Effortless HR says when you support remote working, you allow for more employee flexibility. Because the challenge is less to attract top talent these days (although that’s still vital) – it’s keeping them. And keeping them happy.

Of course, this setup reduces operational expenses. Imagine having to only rent enough office space for 15 workers, rather than 30. And if you offer a commuting benefit, you’re only paying for gas or train or bus tickets for 15 people (or whatever the figure is). After all, it makes sense. Letting people work from home means you don’t need to pay someone to commute from their bedroom or kitchen to their spare room or couch or the like.

Let’s concentrate on one terrific benefit when you support remote working.

Look at that Big Candidate Pool – Just Look at it!

That is, when you support remote working, you’re allowing people to work who couldn’t before. The parent with the small child. The caregiver for an elderly parent. And, yes, the person who’s disabled, either temporarily or permanently. 

Your employee could be in a wheelchair, and it wouldn’t make any difference versus other employees who aren’t. They could have a child who needs attention. But so long as they get their work done, then things should be golden. 

Personally, I love working from home. And I am just about at a point where I wouldn’t even consider a company if they didn’t offer it (don’t worry; I’m not looking to jump ship). But yeah, it means that much to me.

Support Remote Working Credit Suite

If you are as passionate about succeeding in business as we are, please help us spread the word about how to take the plunge and save time and money – and your sanity! Support remote working for more than safety and health – it’s great for productivity, too. Plus, nine more fantastic tips!

#4. Ready, Set, Makeover!

So, check out this spectacular tip, all about giving your office a productivity makeover. After all, even as you support remote working, you may still have folks who’ve got to be the office. Under 30 CEO notes that your environment can have a serious effect on your productivity. One of their tips really surprised us.

Clutter, Clutter, Everywhere

You may be used to working amidst a lot of papers you’re not working on right now. 

Guilty as charged.

Don’t.

And here’s why.

Clutter can actually make you more creative. How? It has to do with being able to make unique and new connections. But that tanks your productivity. Once you’ve got the creative stuff going on, it’s time to buckle down and execute on your ideas.

So, maybe take out those papers and the like, whatever helps you get creative, to start. But then put them away when it’s time to get in gear and get things done.

#3. Initial Traction, then Scaling

So, it’s not your imagination: this winning tip can help you scale your efforts. Startup Professionals tells us your first job is to get traction. Of course, you should – otherwise, you won’t have a business!

But once you’ve gotten going, things are going to have to change. This is a part of the natural progression of startup ventures. Things need to slow down and pivot after a while.

Let’s concentrate on two separate tips.

Squeeze Those Pennies!

Can you get a volume discount? Or maybe a few percent off if you pay early? If you can do it, then go for little helpers like this. Get used to looking for the bargains out there. And get used to finding ways to defer payments. Hey, starting business credit is one great way to do that.

That’s one of the reasons why we here think it’s so awesome.

Selling is Everyone’s Job

Just adding sales to someone’s job title shouldn’t be necessary to get them to help with sales. This doesn’t mean everyone is hard selling and cold calling, etc. Rather, it means your employees are company advocates. This can even get into them telling their friends they like working for you (assuming they do, of course). More easily and cheaply attracting great talent is a terrific way to save money.

By the way, the article says to do this and we agree – reward people who help with this! Being a wonderful place to work is a pretty surefire way to convince your employees to tell your pals they, you know, actually like working for you.

#2. Job Candidates are People, Too

Well, of course they are. 

Our second to last unbeatable tip can give you a new perspective on improving the job candidate experience. Indeed reveals all about treating your future employees better. 

It’s hard to hire these days. So, why make it harder for yourself? 

I’ve been through a ton of job interviews and the hiring process varies wildly from place to place. This tip really resonated.

Don’t Wait Forever to Provide Feedback

At a certain point, a job candidate will think you’re ghosting them if you don’t follow up soon. At the absolute minimum, please let people know if they’re still in the running. And if they aren’t, then cut them loose.

#1. Is Disruption Compatible with Customer Satisfaction and Process Excellence? It Can Be

We saved the best for last. For our favorite remarkable tip, we focused on how industry disruptors can improve customer satisfaction and process excellence. Entrepreneur says these are not mutually exclusive goals. We recommend reading the article in its entirety, so instead we’ll focus on one particular point.

Map and Maintain Your Processes

YouTube is a disruptor. So’s Google. You honestly think they don’t have any processes in place? Of course, they do! Those are processes for everything from hiring to deciding on the color the walls in their offices.

Processes help with workflow. They save time and, by extension, money. The gist of it is – if it’s already been decided, then that’s one less thing to do. So, your business can be Disruption City. Just, stop reinventing the wheel all the time.

So, which one of our brilliant business tips was your favorite? And which one will you be implementing now? 

Support Remote Working Credit Suite

If you are as passionate about succeeding in business as we are, please help us spread the word about how to take the plunge and save time and money – and your sanity! Support remote working for more than safety and health – it’s great for productivity, too. Plus, nine more fantastic tips!

The post Support Remote Working and More –10 Brilliant Business Tips of the Week appeared first on Credit Suite.

Is Your Email Marketing Working?

Is Your Email Marketing Working? Inquiries concerning the efficiency of any kind of kind of advertising and marketing venture ought to be asked routinely to make certain the advertising and marketing initiatives are creating the wanted outcomes. Asking these concerns on a routine basis and also constantly reviewing the performance of the e-mail advertising project …

A Working Fundability Definition

The definition of fundability is often misunderstood.  It’s hard to get a grip on a fundability definition. The term is thrown around a lot, but few understand what it really means.

Getting a Grasp on a Fundability Definition

Fundability Definition: Foundation

You cannot talk about a working fundability definition without talking about the foundation of fundability.  This is how your business is set up.  It has to appear to be a fundable entity separate from you, the owner.  Like any foundation, it is best to start at the beginning.  It will be faster and easier if you do.  If your business is already up and running however, you may not have that option.  It’s never too late to start, but start now. The longer you wait the harder it will be, for several reasons. 

Contact Information

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

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

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

EIN

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

Incorporate

This is the most important step in fundability thus far.  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.    When you incorporate, you become a new entity. You basically have to start over. You’ll also lose any positive payment history you may have accumulated as well. 

This is why you have to incorporate as soon as possible.  It is necessary for an appropriate time in business. The longer you have been in business the more fundable you appear to be.  That starts on the date of incorporation, regardless of when you actually started doing business. 

Business Bank Account

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. 

fundability definition Credit Suite

Keep your business protected with our professional business credit monitoring. 

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

Licenses

 For a business to be legitimate it has to have all of the necessary licenses it needs to run.  If it doesn’t, it is a huge warning to lenders.  Do the research you need to do to ensure you have all of the licenses necessary to legitimately run your business at the federal, state, and local levels. 

Website

I am sure you are wondering how a business website can affect you ability to get funding.  Think about it.  These days, you do not exist if you do not have a website. Still, having a poorly put together website can be even worse than not having one at all.  It is the first impression you make on many, and if it appears to be unprofessional, it won’t look good to potential customers or lenders. 

Spend the time and money necessary to ensure your website is professionally designed and works well.  Pay for hosting too. 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.

Fundability Definition: Business Credit Reports

This 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 different 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 these agencies have on your business, you can ensure that any new information they receive is positive.  Enough positive information can help distract attention from negative information. 

Identification Numbers 

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. You have to have this number to have a file with D&B, and you have to have a file with D&B to build business credit. 

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: 

  • 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.  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 of those fraud concerns lenders have.  When business information doesn’t match up, it sets off alarms.  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 same information?  

The key to this piece of the business fundability is to monitor your reports frequently.   When it comes to business credit reports, you can monitor through the reporting agencies directly, or save money by going here. 

fundability meaning and importance Credit Suite

Keep your business protected with our professional business credit monitoring. 

Fundability Definition:  Financial Statements

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.  

It is best to have an accounting professional prepare regular financial statements for your business. Having an accountant’s name on financial statements lends 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. 

Often tax returns for the previous three years will suffice for personal financials.  Get a tax professional to prepare them.   This is the bare minimum you will need. Lenders may also ask to see check stubs and bank statements. 

Bureaus

There are several other agencies that hold information related to your personal finances that you need to know about.  For example, many business owners do not realize that their ChexSystems report can affect fundability.  In the simplest terms, this details any bad check activity.  It 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 seriously affect fundability. 

Everything can come back to bite you.  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 affect the fundability of your business. 

Personal Credit History

Your personal credit score from Experian, Equifax, and Transunion all matter.  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 on time, consistently. 

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

Fundability Definition: The Application Process

First, consider the timing of the application.  Is your business fundable right now?  If not, do some work to increase fundability. Next, make sure that your business name, business address, and ownership status are all verifiable.  Lenders will check.  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. 

To Understand How to Become Fundable, You Need a Working Fundability Definition

You need your business to be fundable. To make it happen, you have to have a working definition of fundability.  That isn’t really enough however. You also need to understand exactly what affects the fundability of your business, and how to mitigate anything that is holding it back.  Then, you can get to work making sure your business is as fundable as possible. It may take some time however, depending on where your current fundability stands.

fundability meaning and purpose Credit Suite

Keep your business protected with our professional business credit monitoring. 

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The Benefits Of Cash Flow And Working Capital Management

The Benefits Of Cash Flow And Working Capital Management

Numerous profession money firms aid to supply credit score financing, export financing, credit history security, billing collection solutions, and so on. Profession money firms likewise assist in relaying the profession leads, create brand-new organisation as well as advertise the firm to brand-new company teams or service endeavors. Some of these firms or business are factoring companies additionally that assistance in assisting in worldwide profession via factoring as well as various other relevant profession money strategies.

Export oriented profession financing business give money assistance system for improving money circulation, minimizing money expenses. Export profession money firms or companies additionally give info as well as assistance for export functioning resources, Export Import Banks, funding, finances, funding types, warranties and also forfaiting. Expert profession financing business and also establishments look for to advertise ethical and also excellent profession techniques among the trading celebrations.

Profession funding be it for the neighborhood market or the worldwide market for exports, starts from the initial quit at the financial institutions. It is necessary to determine the resource that give profession money or threat reduction. Factoring, forfaiting, finances, financial institution warranties, letters of credit score, export funding are numerous profession financing techniques.

Factoring permits business proprietor to determine the here and now worth of future quantity due or sale of a company receivable to a banks called a variable. Billing factoring aids the moderate as well as tiny company owner to acquire instant money needed for organisation without having and also financial debt or moving company equity. These company owner market their billings in order to obtain cash today.

Forfaiting is a technique of profession money, which is utilized as an option to the export credit rating or insurance coverage cover. It permits merchants to get cash money and also remove their dangers by marketing their receivables on a ‘inevitable’ basis. These profession financing method work as sources of fund administration, credit score administration, car loan removal and also enhancing success by reducing management and also advertising expenses in addition to the expenses.

Different profession financing business assist to offer debt financing, export money, credit report defense, billing collection solutions, and so on. Profession financing business assist to minimize advertising price and also enhance your profession success. Profession financing business likewise assist in relaying the profession leads, produce brand-new organisation as well as advertise the business to brand-new organisation teams or company endeavors. Some of these companies or business are factoring firms likewise that aid in assisting in global profession via factoring and also various other associated profession financing methods.

Export oriented profession money business give money assistance system for boosting cash money circulation, minimizing financing prices.

The post The Benefits Of Cash Flow And Working Capital Management appeared first on ROI Credit Builders.

The Benefits Of Cash Flow And Working Capital Management

The Benefits Of Cash Flow And Working Capital Management Numerous profession money firms aid to supply credit score financing, export financing, credit history security, billing collection solutions, and so on. Profession money firms likewise assist in relaying the profession leads, create brand-new organisation as well as advertise the firm to brand-new company teams or service … Continue reading The Benefits Of Cash Flow And Working Capital Management