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These Inspiring Entrepreneurs Are Crushing It On Instagram

We all have an entrepreneur inside of us. All it takes is daily inspiration and motivation to unleash it. Most especially, from those who have exciting success stories and are clearly passionate about what they …

The post These Inspiring Entrepreneurs Are Crushing It On Instagram appeared first on Paper.li blog.

How Being Fundable Helps You Get the Best Business Loans

Everyone wants the best of the best, and it should be no different when it comes to business loans.  However, you may need to change your thinking about what actually makes the best business loans the best. 

Build Fundability So You Can Get the Best Business Loans

For example, do great terms make a loan one of the best?  Could it be low rates? These things are awesome. However, the best business loans are the loans you can get.  Of course, you can look at the cream of the crop. Still, if you cannot access them, they will not do you any good.  You need to know what the best business loans are that you can access. Furthermore, you need to know how to gain access to those that are even better.  

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

What Makes a Loan One of the Best? 

Fortunately, U.S. News helps us out by outlining the best business loans in various categories. When compiling their list, they consider such factors as product availability, terms, and service ratings. 

Best Business Loans for Borrowers with FICO Credit Scores as Low As 530

BlueVine takes the prize in this category. The minimum loan amount available from them is $5,000 and the maximum is $100,000. Annual revenue must be $120,000 or more and the borrower must be in business for at least 6 months. Personal credit score has to be at least 600. It is also important to know that BlueVine does not offer a line of credit in all states. 

They report to Experian.  They are one of the few invoice factoring companies that will report to any business credit bureau.  This helps build business credit and in turn, fundability.

Best Business Loans for Up to Five Year Loan Terms

The winner in this category is Funding Circle.  Honestly, if you’re looking for a low APR, then this is your go-to.  They have fixed rate term loans and require a credit score of 620 or above.  There is no minimum revenue requirement, but they do require you to be in business for at least 2 years.  

Best Business Loans With No Collateral Required

OnDeck offers lines of credit and term loans with fixed interest rates.  You can get up to $500,000 with a term loan.  The minimum FICO they require is 600. In addition, you must have $100,000 minimum annual revenue and be in business for at least one year.  

Best Small Business Loans for Up to $1 Million 

With a large selection of financing products that includes term loans, Rapid Finance can be a great option for larger amounts.  In addition to term loans, they offer bridge loans, healthcare cash advances, and lines of credit.  Terms are from three to six months. Amounts range from $5,000 to $1,000,000. Unfortunately, they do not make their minimum credit score readily available on their website.  However, you can use their quote tool to get an idea of what you qualify for. 

Best Business Loans for Borrowers In Business for 6 Months or More

StreetShares offers invoice financing, term loans, and lines of credit.  The number of years in business requirement is one.  They require less minimum annual revenue than the others at only $25,000.  The minimum credit score is 600.  

The key with each of these loans is, your ability to get them is dependent on the fundability of your business.  

What is Fundability? 

Fundability is, in short, the ability to get funding.  It is the complete picture of your business and personal financing and your ability to repay debt. If you think of fundability as a puzzle, there are hundreds of pieces that come together to complete it.  The problem is, a lot of business owners cannot see the complete picture because they are unaware of what additional pieces may be floating around out there.  

Also, unlike a puzzle, the pieces are not all the same size.  Some are very large, while others are smaller. If your large pieces are in great shape, the smaller ones may not matter so much. If, however, your large pieces, like credit history, are not so great, the smaller pieces can make a much bigger difference in your ability to get the best business loans. 

What Makes Up Fundability?

What are these puzzle pieces and how can you make sure they are in the best possible shape?  Hold on to your hats. Some of these may surprise you.

Contact Information

That’s right.  Even something as small as your contact information can affect the fundability of your business.  Your business needs to have its own phone number, fax number, and address.  

EIN

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

Incorporation

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. 

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.  Also, it will help you keep them separate from personal finances for tax purposes. 

Additionally, 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.  Also, you cannot get a merchant account without a business account at a bank. As a result, you cannot take credit card payments.  Studies show consumers tend to spend more when they can pay by credit card.

Licenses

For a business to be legitimate and fundable it has to have all of the necessary licenses it needs to run.  If it doesn’t, warning signals are going to go off all over the place.  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

Your business website, or lack thereof, can affect your ability to get funding. In fact, these days, if you don’t have an online presence you may as well not even exist.  Still, a poorly put together website can be even worse.  Truly, it is the first impression you make on most. If it appears to be unprofessional, it will not look good to consumers or potential 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.  Similarly, 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.

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

Business Credit Reports

Much like your consumer credit report does for the individual, business credit reports detail the credit history of your business.  Basically, they are 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.  You have no way of knowing which one your lender will choose.  So, you need to make sure all of these reports are up to date and accurate. 

Other Business Data Agencies 

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

Identification Numbers Best Biz Loans Credit Suite

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

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

Business Credit History

Your credit history is the crux of your credit score, which is a huge factor in the fundability of your business.  

It includes a number of things like: 

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

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

Business Information

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

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

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

Financial Statements

First, there is the obvious. Both your personal and business tax returns need to be in order.  Not only that, but you need to be paying your taxes, both business and personal.  

Business Financials

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

Personal Financials

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

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

Bureaus

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

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

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

Personal Credit History

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

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

Even the Application Process Matters

Often this part isn’t even considered by those looking for the best business loans.  For example, consider the timing of your application.  Is your business currently fundable?  If not, do some work first to increase fundability.  

Then, are your business name, business address, and ownership status all verifiable.  Lenders will check into it.  Also, 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. 

Increase Fundability to Get the Best Business Loans

How do you get the best business loans?  You need to know how to find the best business loans for your specific business needs.  Make sure your fundability is as strong as possible. Pay bills on time, work on building business credit, and make sure to dot all your i’s and cross all your t’s. Do these things, and most all business loans will be yours for the taking. 

The post How Being Fundable Helps You Get the Best Business Loans appeared first on Credit Suite.

Get to Know Experian Commercial

What is Experian Commercial all about? What are details about its most important scores? Check out the details on this major business credit reporting agency. Plus, find out how to improve your business credit scores with Experian. And learn how to monitor your scores for 90% less than it would cost at that business CRA. Understanding and improving your business credit scores is more important than ever in a recession. With Experian, there is a lot you can do to keep your scores high.

So in particular, Experian reports on both business and personal credit. In fact, they blend the two. And this is virtually always what happens with startup ventures. Therefore, by keeping your personal credit scores high, you can directly influence your business credit scores.

Business Credit and Experian Commercial

Let’s look at business credit, even in a recession. Business credit is credit which is in a business’s name. So it is not tied to the owner’s creditworthiness. Instead, business credit scores mainly depend on how well a company can pay its bills. Hence, consumer and business credit scores can vary dramatically. So this is true for Experian as well.

Consider the main credit reporting agencies. There are three large business credit reporting agencies. So they are Dun & Bradstreet; Equifax; and Experian. There is also a FICO SBSS business score. But let’s concentrate on Experian Commercial today. Knowledge is power. And at no time is that more important than during a recession.

What Sort of Data Does Experian Commercial Use?

Experian, like the other business credit reporting bureaus, focuses on providing quality data and analytics. They offer this info to businesses to help them better assess risk. They have a massive consumer and commercial database. So they manage it to help businesses get the best and most up to date info. Experian extracts significant extra value with this data. So they do so by applying their own proprietary analytics and software.

Experian uses both consumer and business credit information to gauge risk. 

“By combining personal and commercial credit information in one report, Experian provides a complete picture of the creditworthiness of small businesses”

See: experian.ae/en/credit-services/index.

Experian PLC is listed on the London Stock Exchange (EXPN). And it is also in a constituent of the FTSE 100 Index.

Experian Commercial Credit Suite

Keep your business protected with our professional business credit monitoring. Save money even during a recession.

Experian Commercial: The Experian Intelliscore Plus℠ Score

Now let’s look at Experian’s Intelliscore Plus business credit score. For Intelliscore Plus, business credit scores range from 0 to 100. So 0 represents a high risk and 100 represents a low risk. The 0 to 100 part is a percentile score. It shows the percentage of businesses scoring higher or lower than the business under review.

Intelliscore Plus is widely used. Many large financial institutions around the world use it. So do more than half of the top 25 property and casualty insurers. And so  do most major telecommunications and utility firms. Industry leaders in transportation, manufacturing, and technology also use Intelliscore Plus as their main risk indicating model.

Intelliscore Plus has more than 800 aggregates or factors. These affect business credit scores. There are scores on the millions of businesses in the Experian database. It is a percentile score.

What does Intelliscore Plus measure? It is a highly predictive score. It provides a detailed and accurate reflection of a business’s risk. Intelliscore Plus blends commercial data with the consumer data for the business owner or guarantor.

The Intelliscore Plus℠ Analytical Approach

Check out various Intelliscore Plus analytical approaches. Intelliscore Plus uses three separate analytical approaches to provide risk insights for small businesses.

The Emerging Market Model

The first analytical approach is business data including an emerging market model. That one is designed for microbusinesses.

The Blended Model

The second analytical approach is a blended one. This model incorporates business and consumer credit information on the owner or guarantor. Experian uses a cascading approach when combining the differing data sources.

The Consumer Data Only Model

So this third analytical approach is a consumer data only model. It is for startups because they have no business history.

For more information on these three analytical approaches, see: experian.com/content/dam/marketing/na/assets/bis/business-information/brochures/intelliscore-plus-v2-product-sheet.pdf

Get to Know the Data in an Intelliscore Plus℠ Report

So, which data is in an Intelliscore Plus report? The report contains key information like business address, how long a business has been in Experian’s database, etc. It also has legal filings and collections that may impact business performance. There is a summary of the number of trades, amount of credit extended, etc. And there is a summary of the owner or guarantor’s consumer credit account performance. This includes bank cards, revolving, auto lease, and real estate accounts.

More Data Details

More data includes business credit information like the number of days beyond terms. There’s also the Intelliscore Plus score and the business’s risk class. The report also has owner account information and derogatory information like collections, etc.

For more information on Intelliscore Plus reports, see: bci2experian.com/wp-content/uploads/2017/01/2013-06-Enhanced-Risk-Assessment.pdf

Experian Commercial Credit Suite

Keep your business protected with our professional business credit monitoring. Save money even during a recession.

Experian Commercial: The Experian Financial Stability Risk Score

Check out the Experian Financial Stability Risk Score (FSR). The FSR predicts the potential of a business going bankrupt or defaulting on its obligations. The score identifies the highest risk businesses by making use of payment and public records. These records include severely delinquent payments of 61 or more and 91 or more days. They also include high utilization of credit lines; tax liens; judgments; collection accounts; industry risk; and short time in business, etc.

The Financial Stability Risk Score shows a 1 to 100 percentile score, plus a 1 to 5 risk class. The risk class puts businesses into risk categories. So the highest risk is in the lowest 10% of accounts.

For more information on the Financial Stability Risk Score, see: experian.com/content/dam/marketing/na/assets/bis/business-information/brochures/financial-stability-risk-score-ps.pdf

What if you have a score of 66 to 100? And you have a risk class of 1? Then it means there is a low risk of default or bankruptcy. But what if you have a score of 1 – 3? And you have a risk class of 5? Then it means there is a high risk of default or bankruptcy.

Experian Commercial: Derogatory Data

So, how long does derogatory data stay in Experian’s database? Trade data stays on your report for 36 months. So does bank, government, and leasing data. Uniform Commercial Code filings stay on your report for 5 years. So note: Uniform Commercial Code filings are in support of loans.

Judgments, collections, and tax liens all stay on your report for 6 years and 9 months. And bankruptcies stay on your report for 9 years and 9 months.

For more information on derogatory data in Experian Commercial reports, see: experian.com/small-business/how-long-credit-report

Experian Commercial: Improving Your Company’s Experian Reports

To improve your credit terms, you should be looking at improving your company’s Experian reports. Also make sure vendors are reporting your payments. The more vendors which report a positive credit history to the credit reporting agencies, the better. Because then the higher your business credit rating will be. And this is not just the case with Experian.

So improving your scores is pretty straightforward. Always pay your bills early or on time and pay them in full. Try to maintain a balance at about 20 to 30% of your limits or less. Do not close positive accounts. And try to avoid derogatory report entries like tax liens.

This advice works just as well for personal credit as for business credit. Because Experian reports on both – and blends them – doing the same good things for both types of credit is helpful. Because it will help you even more.

Experian Commercial Credit Suite

Keep your business protected with our professional business credit monitoring. Save money even during a recession.

Experian Commercial: Business Credit Monitoring

To improve your Experian business credit scores, you should be looking into Experian business credit monitoring. Experian offers monitoring services. So these prices are current as of June 2020. Business Credit Advantage costs $189 per year. You can monitor business credit for one year. And you’ll get alerts of changes. 

Business Credit Score Pro costs $249 per month. So it gives you access to multiple business credit reports. And Profile Plus costs $49.95 for a single report. So a Credit Score Report costs $39.95. With that one, you will get a credit summary report with a score. Or you can monitor your business credit with us for 90% less.

Experian Commercial: Takeaways

So Experian gathers diverse data to attempt to understand risk. And Experian works to predict a business’s chance of going delinquent on payments or bankrupt. They combine business and personal credit info for business owners or guarantors. This provides a more detailed picture of risk.

But derogatory data will stay on your Experian business credit reports for years. You can improve your Experian Commercial report by acting to better manage your finances.

And as you improve your personal credit scores with Experian, that will directly affect your business credit scores. Responsible financial stewardship is not just a good idea; it will likely save you money! So with better scores come better rates. Plus, you will have more choices. You will not have to settle for the one and only loan or credit card you can get.

Monitoring your business credit reports with Experian will also help you improve your reports. We offer competitively priced monitoring of your Experian business credit reports.

The post Get to Know Experian Commercial appeared first on Credit Suite.

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