Need Funding? Our Credibly Recession Financing Review Can Save Your Business
Get the Funding Your Business Craves with Our Credibly Recession Financing Review
If you’ve been looking for a Credibly recession funding review, then look no further.
Credibly is one of several online lending companies. They are actually an emerging Fintech platform. They also provide SBA PPP loans.
Credibly can provide small business funding for working capital or small business expansion. You can also get a line of credit through them, equipment financing, invoice factoring, and merchant cash advances.
Credibly Recession Funding Review: Background
Credibly is located online here: www.credibly.com. Their physical addresses are located in Southfield, Michigan; New York, New York; and Scottsdale, Arizona. You can call them at: (888) 664-1444. Their contact page is here: www.credibly.com/contact.
You can email them at: customerservice@credibly.com.
Credibly Recession Funding Review: Qualification Requirements
Your company has to in business for at least 6 months at the minimum. In addition, you need to have at least $15,000 in monthly revenue. You must have a personal credit score of 500 or better.
Credibly also will want to review your most recent three months’ worth of bank statements while they consider whether to grant your application for funding.
Credibly offers $5,000 to $400,000 in funding. Get money fast – within 24 – 48 hours.
Credibly will perform a soft credit pull only to check your qualifications. But before you receive funding, Credibly will do a hard pull which will appear on your credit profile and may affect your credit score.
In addition, they will want a personal guarantee. They do not require you to provide collateral.
Credibly Recession Funding Review: Working Capital Loans
Get up to $400,000 in funding. Terms are 6 to 18 months. Pay factor rates as low as 1.15. For loans over $100,000, they want to see your most recent business tax return.
Credibly Recession Funding Review: Business Expansion Loans
Get up to $250,000 in funding. Terms are 18 or 24 months. Interest rates start at 9.99%. You must have a FICO score of 600 or better and three or more years in business. Also, you must have $3,000 or more in average daily balances.
Credibly Recession Funding Review: Fees
Pay a one-time 2.5% of the total loan amount set up fee. This fee is deducted from your proceeds. Rates start at 9.99%.
Credibly Recession Funding Review: Lines of Credit. Invoice Factoring, and Equipment Financing
These forms of funding are only available through Credibly’s network of external funding partners.
Credibly Recession Funding Review: Merchant Cash Advances
Get up to $400,000 in funding. Duration is anticipated to be 3 to 18 months. Pay factor rates as low as 1.15. Automatic remittances are tied to your receivables.
Credibly Recession Funding Review: Advantages
Advantages include a short time in business requirement. A short time to funding is also attractive.
Credibly Recession Funding Review: Disadvantages
One set of disadvantages are that they will want a personal guarantee and they will do a hard pull on your personal credit.
For startup companies and their founders in particular, who are often on some shaky financial ground to begin with, this could prove problematic. For these sorts of companies and business owners, a better choice might be to try crowdfunding or angel investing if either is possible. In that way, a business owner’s personal assets would be safer. And, their personal credit would not be affected.
A Viable Alternative – Building Business Credit
Business credit is credit in a small business’s name. It doesn’t attach to a business owner’s personal credit, not even when the owner is a sole proprietor and the solitary employee of the small business.
Hence, a business owner’s business and individual credit scores can be very different.
The Advantages
Because company credit is independent from personal, it helps to secure a small business owner’s personal assets, in the event of court action or business insolvency.
Also, with two distinct credit scores, a business owner can get two separate cards from the same merchant. This effectively doubles purchasing power.
Another benefit is that even startup ventures can do this. Going to a bank for a business loan can be a recipe for disappointment. But building company credit, when done correctly, is a plan for success.
Personal credit scores depend on payments but also various other components like credit use percentages.
But for business credit, the scores truly merely depend on if a small business pays its bills timely.
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The Process
Establishing company credit is a process, and it does not occur automatically. A business needs to actively work to establish company credit.
Nevertheless, it can be done readily and quickly, and it is much swifter than developing consumer credit scores.
Vendors are a big component of this process.
Performing the steps out of sequence will cause repetitive denials. Nobody can start at the top with business credit. For instance, you can’t start with retail or cash credit from your bank. If you do, you’ll get a denial 100% of the time.
Company Fundability
A company needs to be fundable to lending institutions and vendors.
Consequently, a company will need a professional-looking web site and e-mail address. And it needs to have site hosting bought from a company like GoDaddy.
Additionally, company phone numbers must have a listing on 411.com. Use ListYourself to get a listing.
Likewise, the business phone number should be toll-free (800 exchange or similar).
A business will also need a bank account dedicated solely to it, and it must have every one of the licenses essential for operation.
Licenses
These licenses all have to be in the particular, correct name of the company. And they need to have the same company address and phone numbers.
So note, that this means not just state licenses, but possibly also city licenses.
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Dealing with the IRS
Visit the Internal Revenue Service web site and obtain an EIN for the company. They’re free. Pick a business entity such as corporation, LLC, etc.
A business can get started as a sole proprietor. But they will most likely wish to switch to a type of corporation or an LLC.
This is in order to decrease risk. And it will optimize tax benefits.
A business entity will matter when it involves taxes and liability in case of litigation. A sole proprietorship means the entrepreneur is it when it comes to liability and tax obligations. Nobody else is responsible.
Sole Proprietors Take Note
If you run a business as a sole proprietor, then at least be sure to file for a DBA. This is ‘doing business as’ status.
If you do not, then your personal name is the same as the company name. Hence, you can find yourself being directly responsible for all small business financial obligations.
Plus, according to the Internal Revenue Service, using this structure there is a 1 in 7 chance of an IRS audit. There is a 1 in 50 probability for corporations! Prevent confusion and dramatically reduce the odds of an Internal Revenue Service audit simultaneously.
Any DBA should be a stepping stone to incorporating.
Starting Off the Business Credit Reporting Process
Start at the D&B web site and get a free D-U-N-S number. A D-U-N-S number is how D&B gets a small business in their system, to generate a PAYDEX score. If there is no D-U-N-S number, then there is no record and no PAYDEX score.
Once in D&B’s system, search Equifax and Experian’s websites for the small business. You can do this at www.creditsuite.com/reports. If there is a record with them, check it for accuracy and completeness. If there are no records with them, go to the next step in the process.
In this manner, Experian and Equifax will have activity to report on.
Vendor Credit
First you ought to build trade lines that report. This is also referred to as vendor credit. Then you’ll have an established credit profile, and you’ll get a business credit score.
And with an established business credit profile and score you can begin to get retail and cash credit.
These types of accounts have the tendency to be for the things bought all the time, like marketing materials, shipping boxes, outdoor work wear, ink and toner, and office furniture.
But to start with, what is trade credit? These trade lines are credit issuers who will give you starter credit when you have none now. Terms are in most cases Net 30, versus revolving.
Therefore, if you get an approval for $1,000 in vendor credit and use all of it, you need to pay that money back in a set term, like within 30 days on a Net 30 account.
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Details
Net 30 accounts must be paid in full within 30 days. 60 accounts need to be paid completely within 60 days. Unlike with revolving accounts, you have a set time when you have to pay back what you borrowed or the credit you made use of.
To kick off your business credit profile the proper way, you should get approval for vendor accounts that report to the business credit reporting agencies. When that’s done, you can then make use of the credit.
Then repay what you used, and the account is on report to Dun & Bradstreet, Experian, or Equifax.
Vendor Credit – It Helps
Not every vendor can help in the same way true starter credit can. These are vendors that will grant an approval with nominal effort. You also want them to be reporting to one or more of the big three CRAs: Dun & Bradstreet, Equifax, and Experian.
You want 3 of these to move onto the next step, which is retail credit.
Retail Credit
Once there are 3 or more vendor trade accounts reporting to at least one of the CRAs, then move onto retail credit. These are companies which include Office Depot and Staples.
Only use your SSN and date of birth on these applications for verification purposes. For credit checks and guarantees, use the company’s EIN on these credit applications.
Fleet Credit
Are there more accounts reporting? Then progress to fleet credit. These are companies like BP and Conoco. Use this credit to purchase fuel, and to fix and maintain vehicles. Just use your SSN and date of birth on these applications for verification purposes. For credit checks and guarantees, make certain to apply using the company’s EIN.
Cash Credit
Have you been responsibly handling the credit you’ve up to this point? Then move onto more universal cash credit. These are businesses like Visa and MasterCard. Only use your Social Security Number and date of birth on these applications for verification purposes. For credit checks and guarantees, use your EIN instead.
These are typically MasterCard credit cards. If you have more trade accounts reporting, then these are attainable.
Monitor Your Business Credit
Know what is happening with your credit. Make sure it is being reported and take care of any mistakes ASAP. Get in the practice of checking credit reports. Dig into the details, not just the scores.
We can help you monitor business credit at Experian and D&B for 90% less.
Update Your Record
Update the data if there are inaccuracies or the information is incomplete. At D&B, you can do this at: https://iupdate.dnb.com/iUpdate/viewiUpdateHome.htm. For Experian, go here: www.experian.com/small-business/business-credit-information.jsp. And for Equifax, go here: www.equifax.com/business/small-business.
Fix Your Business Credit
So, what’s all this monitoring for? It’s to challenge any problems in your records. Errors in your credit report(s) can be fixed. But the CRAs often want you to dispute in a particular way.
Disputes
Disputing credit report errors generally means you mail a paper letter with copies of any proofs of payment with it. These are documents like receipts and cancelled checks. Never mail the originals. Always mail copies and keep the original copies.
Fixing credit report errors also means you precisely detail any charges you challenge. Make your dispute letter as understandable as possible. Be specific about the problems with your report. Use certified mail so that you will have proof that you mailed in your dispute.
A Word about Building Business Credit
Always use credit responsibly! Don’t borrow more than what you can pay back. Track balances and deadlines for payments. Paying punctually and in full will do more to raise business credit scores than just about anything else.
Establishing business credit pays off. Good business credit scores help a small business get loans. Your credit issuer knows the company can pay its debts. They recognize the company is for real.
The business’s EIN connects to high scores and lenders won’t feel the need to ask for a personal guarantee.
Business credit is an asset which can help your company in years to come. Learn more here and get started toward establishing business credit.
Credibly Recession Funding Review: Takeaways
Companies that do best on Credibly will be fairly new players but with relatively meteoric rises.
A business owner asking for a loan should be prepared for a hard pull on his or her personal credit scores, which will impact those scores. This is just like all hard pulls do.
If an entrepreneur does not have the wherewithal to ride out a slightly lower personal credit score for a couple of years, then Credibly is not for them.
And finally, as with every other lending program, whether online or offline, remember to read the fine print and do the math. Go over the details with care. Decide if this option will be good for you and your company.
In addition, consider alternative financing options that go beyond just lending. These include building business credit and unsecured business financing. This is in order to best decide how to get the money you need to help your business grow.
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