Author: Angie Meneses

New comment by marc-tres-2 in "Ask HN: Who is hiring? (July 2020)"

Tres Solutions | https://tressolutions.com/ | Software Engineer | Houston, TX | Full-Time

We’re a rapidly growing maritime analytics start-up, focused on providing smart digital solutions to disruptively change how shipping companies assess and improve performance. Our mission is to enable shipping companies across the globe to reduce fuel consumption, minimize emissions and increase operational efficiency.

Our vessel and voyage optimization solutions leverage decades of marine engineering and operational experience to drive savings and improve fleet performance. We are focused on solving critical performance challenges for customers and are leading the shift from data to insights and solutions.

If that is interesting to you, please email me directly with your resume at marc AT tressolutions DOT com.

Federal Funding, the Coronavirus, and Avoiding Scams

It was … inevitable. As the federal funding bailout was put together, and the SBA Paycheck Protection Program was announced, the scammers came out of the woodwork.

Not now, Satan.

Federal Funding and the Dirty Business of Scamming

There are essentially two ways in which scammers could try to bilk the system. One is by way of fraudulent applications for federal funding. The other is by targeting small businesses and trying to rip them off.

Let’s take a look at both.

Scammers Trying Fraudulent Applications for Federal Funding

Both CNN and the New York Times warn of a crush of demand, particularly at the start. And it’s no wonder, as there have been nearly 10 million new unemployment claims for the weeks of March 15 – 28. Businesses large and small are shedding workers. Hopefully, a lot of this unemployment will be temporary.

But in the meantime, there are so many businesses in need that the ability of fraudsters to slip their bad actions in amongst the legitimate claims is heightened. That’s not good news. After all, the federal funding is limited. Federal funding isn’t infinite – and just printing up money to meet demand invites catastrophic inflation.

Fraudulent Applications for Federal Funding – the CARES Act May Be Making that Easier, not Harder


One update has been to raise the interest rate from .5% to 1%. The idea is to make it easier for community banks to participate.

According to the ABA Banking Journal:

“The lender does not need to conduct any verification if the borrower submits documentation supporting its request for loan forgiveness and attests that it has accurately verified the payments for eligible costs…The Administrator will hold harmless any lender that relies on such borrower documents and attestation from a borrower.”

CNN notes:

“In light of the urgent needs, Congress also allowed the SBA to expand eligible lenders who can participate in the program, meaning that banks that typically aren’t included on the SBA’s preferred lender list and don’t have experience administering SBA loans will now be allowed to.”

Is this a recipe for problems? You’d better believe it.

The SBA and federal government – rightfully – want to streamline the process and get cash into the hands of as many small business owners as possible. But unprecedented volume + inexperienced lenders + a ton of cash + scammers smelling easy marks = every opportunity for things to go haywire.

Federal Funding COVID-19 Scams Credit Suite

Want to review your options with one of our consultants? Give us a call at 877-600-2487.

Federal Funding and Attempts to Rip off Small Businesses

In perhaps the unkindest cut of all, there are already situations of scammers trying to prey upon desperate small business owners.

According to the SBA, they do not initiate calls regarding either 7(a) or disaster loans or grants.

“If you are proactively contacted by someone claiming to be from the SBA, suspect fraud.”

It’s best to hear it straight from the SBA about scammers.

SBA Federal Funding Advice on Scammers

 

  • “If you are contacted by someone promising to get approval of an SBA loan, but requires any payment up front or offers a high interest bridge loan in the interim, suspect fraud.
  • SBA limits the fees a broker can charge a borrower to 3% for loans $50,000 or less and 2% for loans $50,000 to $1,000,000 with an additional ¼% on amounts over $1,000,000.  Any attempt to charge more than these fees is inappropriate.
  • If you have questions about other SBA lending products, call SBA’s Answer Desk at 800-827-5722 or send an email to answerdesk@sba.gov.”

 

And, of course, the SBA also warns small business owners to be on the lookout for phishing schemes, where fraudsters send official-looking email in the hopes that an entrepreneur will reveal important private information. This private information includes passwords, Social Security Numbers, and the like.

Fortunately, there are ways to spot an SBA loan scam.

Inc’s Ways to Spot an SBA Loan Scam

Inc offers four helpful ways to determine if someone is trying to scam you as you apply for an SBA PPP loan (or any other SBA loan emerging from the COVID-19 situation).

1. Don’t Reveal Any Personal Information

Much like the SBA warns, scammers may try to contact your business and offer help getting loans – or even the loans themselves. That is, so long as you hand over your business credit card number or the like.

According to Inc:

“Scammers could use this information to apply for a loan on your behalf–and you’ll be on the hook for paying it back. Also note, you only get one opportunity to apply for a loan, according to Ami Kassar, founder and CEO of MultiFunding, a small-business loan adviser based in Ambler, Pennsylvania.

If you do receive any notices like this, the Treasury Department recommends contacting the FBI.”

2. Don’t Pay for the Privilege of Applying

The CARES Act is set up in such a way that there are no closing costs. You won’t have to pay any application or package fees, either. So if someone claims they can get you a loan faster if you just cross their palm with silver – run the other way.

Federal Funding COVID-19 Scams Credit Suite

Want to review your options with one of our consultants? Give us a call at 877-600-2487.

3. Don’t Work with Unknown Lenders

The SBA is relaxing a number of its rules. But even though a lender does not have to be a preferred lender, they do need to have applied for preferred lender status. So, as Inc. suggests, try working with your local bank first. That is, a bank with which you already have a relationship.

It will be a lot more difficult for a local bank with a brick and mortar presence to skip town than an online lender you have never heard of before.

But can online lenders participate? At the time of writing of this blog post, not yet. But they’re trying.

Online FinTech Lenders Are Looking to Be a Part of the Federal Funding Bailout

Recently, 22 fintech lenders sent a letter asking to be allowed to take part in the Paycheck Protection Program. They wrote to Majority Leader McConnell, Minority Leader Schumer, Speaker Pelosi and Minority Leader McCarthy, saying:

“We seek no gain from this crisis. Our only aim is to protect the millions of small businesses that we are proud to call our customers.”

The signatories to the letter were online lenders we’ve heard of and even reviewed before.

Signatories Already Reviewed by Credit Suite

We like Fundbox, and in the interests of full disclosure, we work with them. Check out our most recent review of Fundbox.

Check out our Bluevine Capital Inc. review for how we feel about them. Our Credibly review may help you decide how you feel about this lender – assuming they can get approval from the SBA.

And take a look at our review of Fundera for more information. Take a look at our Funding Circle review for all the details.

Check out our latest Kabbage review for what we think of them. Our Lendio review should be helpful to you. Plus our OnDeck Capital review can help you get acquainted with this online lender.

Signatories We Haven’t Reviewed Yet – But Will!

Biz2Credit is based in New York City. BFS Capital is another New York City-based fintech company. Enova International is based in Chicago. Faire is devoted to working with crafters. FiveStars supports local businesses. FundRocket is based in San Francisco.

GetUpside is an app company working with businesses and consumers. They’re in Washington, DC. Homebase is another San Francisco-based company. They make time management and scheduling software. LendingTree is a marketplace for small business loans, mortgages, and more. They are based in Charlotte.

Middesk provides business analysis. Plaid helps companies with business finance management. SevenRooms provides data-driven operations and marketing for restauranteurs. Signpost works with small businesses on their customer communications, brand reputations, and marketing outreach. Thanx provides CRM software to restaurants.

Veem provides a payment network system. They work internationally, so if your business does international commerce, they can help you get paid by folks in Lithuania who owe your business money. Wisely provides a fully integrated host stand, marketing automation, and guest sentiment software suite for growing restaurant brands. And Womply provides CRM and reputation management software.

4. Don’t Buy into Fast Promises

Unfortunately, there are a ton of predatory lenders out there. Avoid falling prey to them!

According to Inc.:

“If a company or person is telling you they can get you an SBA loan under the new PPP in a matter of hours, steer clear. Lenders are still waiting on guidance for how to process these loans. The application is expected to be available starting April 3.”

And remember to always verify what you read with information directly from the government or a reputable company. Don’t believe it unless and until you can verify.

Federal Funding COVID-19 Scams Credit Suite

Want to review your options with one of our consultants? Give us a call at 877-600-2487.

Federal Funding and Federal Oversight

On April 2, 2020, Speaker of the House Nancy Pelosi announced the formation of a committee to oversee the Trump Administration’s handling of the $2 trillion relief package. And that includes the SBA’s Paycheck Protection Program. This committee is actually concerned with the novel coronavirus itself. Its oversight function exists alongside a function to check the latest science to be sure responses are logical and can save the most lives.

Per CNBC, Speaker Pelosi “said the committee ‘will root out waste, fraud and abuse’ and ‘protect against price-gouging, profiteering and political favoritism.’”

CNBC further notes, “Congress [has] added an inspector general and congressional oversight posts to monitor how Treasury Secretary Steven Mnuchin uses the money. The law also includes limits on stock buybacks, dividends and executive compensation for companies that receive taxpayer bailout money. “

But will this oversight be enough? The jury is still out.

Federal Funding, COVID-19, and Scams: Takeaways

As this situation continues to unfold, we will no doubt see changes. Nuances and details are likely to need updating. So be sure to check out our Paycheck Protection Program information page as we will be updating it with the latest. Once we know it, you will.

We’re all in this together. And we hope you can steer clear of scams and cheats.

The post Federal Funding, the Coronavirus, and Avoiding Scams appeared first on Credit Suite.

Work Taxes– What Are They?

Work Taxes– What Are They? If you have staff members, you are in charge of paying a range of tax obligations at the government, state, and also regional degrees. You have to likewise keep specific tax obligations from the incomes of your staff members. What are work tax obligations? Work tax obligations consist of the …

Haunted by Bad Personal Credit? You Can Get Business Credit with Bad Personal Credit

Bad personal credit doesn’t have to keep you from successfully starting and running a business.  Your business can build its own credit, known as business credit. You can get business credit with bad personal credit. There is a very specific process you have to follow however.  It isn’t hard, but it doesn’t happen on its own, either. You have to be intentional. We’ll show you how.

4 Rules for Surviving Business Credit with Bad Personal Credit: Don’t Let Bad Personal Credit Scare You Out of Business

You know that feeling you get when you are watching a spooky movie?  Even if everyone on the screen looks happy, you know that something bad is lurking just around the corner.  Trying to run a business with bad personal credit can feel the same way. Even if things are going well, you know that eventually you may need to borrow money. You also know that your bad personal credit score is going to choose that exact moment to jump out at you.  Just like that, the good times could be over. 

It doesn’t have to be a blood bath though.  There can be a happy ending. We are going to show you how to survive to the end, just like those characters that are still alive at the end of the movie.  It’s called business credit, and you can build business credit even with bad personal credit. Your past personal financial issues can’t stop you. Whatever point you are at in your business, now is the time to get started.  The enemy is lurking. It’s time to start fighting back.

Check out our best webinar with its trustworthy list of seven vendors to help you build business credit.

Light the Fire to Forge Business Credit with Bad Personal Credit

The first that happens in any movie when a weapon is being forged is they light a fire.  Here is how you light the fire of business credit. You have to make your business appear to lenders as a fundable entity separate from yourself.  You want them to see your business on its own merits, separate from your personal credit history. 

Separating your business from yourself if the first essential step in building business credit with bad personal credit. It is easiest to do this when you set up your business initially, but it is never too late.  If you are already operating, do it now. Here’s how you start. 

The Rules of Surviving Business Credit with Bad Personal Credit

According to the popular 90s movie “Scream,” there are rules for surviving to the end of a scary movie.  For example, don’t drink or do drugs, and never say “I’ll be right back.” Those people are the first to die.   When it comes to separating your business from yourself for building business credit, even with bad personal credit, there are rules as well. 

First Rule of Getting Business Credit with Bad Personal Credit: You Have to Incorporate

Formal incorporation is non-negotiable.  If you operate as a sole proprietorship or a partnership, your personal credit will always find you.  It is not possible to have the separation you need to get business credit with bad personal credit without incorporating.  Not only that, but it will also help with liability protection.  

What is negotiable, however, is the form of incorporation you choose.  They all offer differing levels of protection, and the costs associated with each option varies.  For the purposes of building business credit, they all work the same. Choose the option that works best for your needs and budget. Here’s a little about each one.

business credit with bad personal Credit Suite2

Corporation

 This is the most expensive option, but it also offers the most protection from liability. There is a double taxation caveat with this option that is a turn off for most. Owners pay tax at both the business level and the shareholder level. In some cases, this is the best option anyway. 

 S-Corp 

S-Corps are very similar to corporations, but double taxation isn’t an issue. There are also limits on the number of shareholders allowed among other restrictions set forth by the IRS. 

 LLC 

An LLC, or a limited liability corporation, is the least expensive option. It still offers some liability protection, and has fewer restrictions than an S-corp. 

 Each of these options serves the purpose of further separating the business from the owner when you are looking to start a business credit profile. The option you choose should be the one that best suits your needs for tax purposes. 

The Second Rule of Getting Business Credit with Bad Personal Credit: You Must Have Separate Contact Information

Do not let your business share an address or a phone number with you.  Your personal address and telephone number are like a neon sign pointing to your personal credit.  That is exactly what you do not want.  

Even if you run your business out of your own home, it needs its own address.  You can accomplish this by using a virtual office address. Virtual offices operate almost exclusively online.  They offer a physical mailing address and at times, a host of other services such as receptionist options, meeting rooms, and video conferencing. 

You also need a dedicated business phone number.  You can either get a business landline, or there are a number of VoIP options available.  Some will even forward calls to your existing landline or cell phone so you do not even have to get a new phone.

Make sure your business information is listed in the business 411 directory.  You can do that here.

The Third Rule of Getting Business Credit with Bad Personal Credit: Get a Business Bank Account

This accomplishes a number of things.  First, it shows lenders that your business is serious enough to have its own account. Also, many vendors and lenders require a business bank account with a minimum balance before they will approve credit.  Lastly, a separate bank account for your business makes it much easier to keep business expenses separate from personal ones for tax purposes. 

The Fourth Rule of Getting Business Credit with Bad Personal Credit: Website and Email Address

There is so much to this.  First, you have to have both a website and an email address that are dedicated to your business.  If you don’t have an online presence in today’s world, do you even exist? It’s a question to consider.  Don’t let this be a question about your business. A strong online presence is important. 

Your website needs to be user friendly and professional.  If you aren’t someone who does this for a living, it is probably a really good idea to pay someone to design and launch your site.  Pay for hosting with someone like GoDaddy. Do not use a free hosting service. Make sure you get a business email address with the same URL as your website.  A free email service like Yahoo or Gmail will not work well.

 Check out our best webinar with its trustworthy list of seven vendors to help you build business credit.

It’s Not Over ‘Till It’s Over: Build Business Credit with Bad Personal Credit

You know that moment when you think the movie is over and everything is going to be okay, and then the  bad guy jumps into the frame and scares you to death. That’s where you are at this point. You can’t walk away and think everything is okay.  Make sure it is really over.  

Separating your business from yourself isn’t the whole game.  This is just how you protect your business. Once you have it separated, you can rest knowing that your business credit will reap the benefits of all your hard work and grow big and strong.  Your personal credit shouldn’t come into the picture much at all. 

However, you still have to do the work to get business credit with bad personal credit.  Even though it’s best to not run up the stairs in a scary movie, you have to climb a different type of staircase to get business credit.  We like to call these tiers instead of stairs. Credit tiers, if you will.  

Once you have your business set up as a separate, fundable entity, you can get accounts reporting to your business credit report. You have to do this without any credit though, because you do not yet have business credit, and your personal credit is bad.  How does that work? 

The Hero that Will Rescue You: The Vendor Credit Tier

The vendor credit tier is how you are going to begin to build business credit without your personal credit coming into play.  This tier is made of starter vendors that will offer net terms on invoices without a credit check. They will look at things like length of time in business, annual income, and the balance in your business bank account instead.

They will also report these payments to the business credit reporting agencies.  Once this happens, your business credit report will be open. Your score will begin to grow.  It takes 10 or more of these types of accounts reporting before your score will be strong enough for the next credit tier. 

The Other Credit Tiers: The Next Steps

After you have an initial credit score from using the vendor credit tier, you can move on to apply for cards in the other tiers. You have to do it in order.  First is the retail credit tier. These are cards that you can only use in the stores that issue them. For example, a Best Buy card can only be used at Best Buy.  An Office Depot card can only be used at Office Depot.

Once you have several of these reporting positive payment history, your score should be strong enough to apply for cards in the fleet credit tier.  These are cards from companies like WEX and Fuelman that you can only use for fuel or auto repair and maintenance. 

After you get enough accounts reporting from the fleet credit tier, it will be time for the top tier.  This is the cash credit tier. Here you find cards that are not limited by location or type of purchase.  You can use them wherever and for whatever. They typically have better rates, higher limits, and sometimes pretty great rewards.  

Check out our best webinar with its trustworthy list of seven vendors to help you build business credit.

Keep an Eye on the Bad Guy

After you do the hard work of getting business credit with bad personal credit, you’ll want to keep your eyes open.  You never know when personal credit or some other bad guy may try to creep in and spoil the happy ending. This is one time when you for sure do not want a sequel.  This is where credit monitoring comes in.

Unlike your personal credit score, you can’t really get a free copy of your business credit report.  You can pay for copies however, and this isn’t a bad idea to do once a year. You want to make sure there are no mistakes, all information is up to date and only business accounts are being reported. 

We can help you monitor your business credit for a fraction of what you would pay the credit reporting agencies.  Go here to get started.

Survive to the End: It is Possible to have Strong Business Credit with Bad Personal Credit

Don’t let bad personal credit haunt your business.  You don’t have to be afraid if you follow the rules, just like in a scary movie.  To separate your business credit from your personal credit, you must: 

  • Incorporate
  • Have separate contact information for your business
  • Get a dedicated business bank account
  • Have a professional website and email address with the same URL as the website

If you do these things, the chances that your personal credit will find your business credit and cause trouble is greatly reduced. Your business can continue to thrive amidst any personal carnage.  Remember however, you must follow the rules. Business credit doesn’t build passively like personal credit does. You have to be intentional and build it on purpose, with purpose. Climb the credit tiers, and once you make it to the top, your business will be able to survive whatever comes its way.

 

The post Haunted by Bad Personal Credit? You Can Get Business Credit with Bad Personal Credit appeared first on Credit Suite.

The trouble of the solitary loan provider guideline

The issue of the solitary loan provider guideline

Well, according to the solitary loan provider guideline, if you are a trainee as well as you ask for a trainee funding, your demand is sent out via to the Department of Education which will certainly choose that your loan provider will certainly be. Trainees are commonly stuck with one lending institution, due to the solitary loan provider regulation, a guideline that has several drawbacks.

At initial view it might appear like a great concept to have just one loan provider to hold all of your trainee car loans, yet there’s even more to the solitary lending institution policy than it shows up. Of all, according to the solitary lending institution regulation you are compelled to combine with one lending institution, the one that holds all your education and learning finances, as well as this might cost you a great deal of additional loan due to the reality that you have no choices pertaining to far better passion prices and also much better costs.

Well, according to the solitary lending institution regulation, it is not your option to make. Primarily, due to the solitary lending institution regulation you shed the right to select from the selection of much better prices as well as client solutions used by lots of pupil debt consolidation firms. All the various other negative aspects, the solitary loan provider regulation forbids pupil car loan reconsolidation.

It is just typical that trainees need to have the chance to select their lending institution, rather of being stuck with one lending institution that does not fit their assumptions and also requirements, as the solitary lending institution policy states. As a pupil, you have the right to appeal to your regional legislators, by means of email or letters, in order to ask for an adjustment or also abolition of the solitary loan provider policy.

An option to the solitary loan provider guideline would certainly be the opportunity for trainees to make a solitary loan provider listing, from which to pick their lending institution. What ought to fascinate the pupil concerning the choices of the solitary lending institution checklist is the loan providers’ service credibility. Taking into consideration the truth that your lending institution is the one that will certainly pay all of your financial debts, it is suggested that the lending institution you select, from your solitary loan provider listing, is a major individual (business) as well as pays your financial institutions on time.

Several options might be for existing troubles pupils are stuck, for currently, with the solitary loan provider guideline as well as a great deal of drawbacks. Stress have actually been made upon the Senate to rescind the solitary loan provider policy, absolutely nothing has actually been formally developed so much. Maybe in the future, a modification around will certainly be feasible and also pupils will certainly have the ability to think about making a solitary loan provider checklist prior to selecting the lending institution that will certainly care for their financings.

Well, according to the solitary loan provider policy, if you are a trainee as well as you ask for a trainee lending, your demand is sent out via to the Department of Education which will certainly determine that your lending institution will certainly be. Pupils are typically stuck with one lending institution, due to the solitary loan provider guideline, a guideline that has several drawbacks.

It is just typical that pupils must have the possibility to pick their loan provider, rather of being stuck with one loan provider that does not fit their assumptions and also demands, as the solitary loan provider guideline states. An option to the solitary lending institution policy would certainly be the opportunity for trainees to make a solitary loan provider listing, from which to pick their lending institution. Thinking about the reality that your lending institution is the one that will certainly pay all of your financial obligations, it is a good idea that the lending institution you select, from your solitary loan provider listing, is a severe individual (firm) as well as pays your financial institutions on time.

The post The trouble of the solitary loan provider guideline appeared first on ROI Credit Builders.