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What is the Difference Between B2B vs B2C for Paid Social Media?

While the terms B2B (business-to-business) and B2C (business-to-consumer) marketing may sound similar, they differ vastly in practice, especially when it comes to paid social media.

Areas like content, objectives, best practices, and which platforms to use can impact the most effective strategies in paid social media. This chart outlines a few of the main differences.

B2B vs B2C customer identification table

These differences are particularly evident in the approaches for paid social media strategies. Before we dig into the different strategies, let’s take a deeper look at the differences between B2B and B2C.

What is B2B Paid Social Media?

B2B buyers are typically large organizations (like enterprise companies, hospitals, or universities) that market their products or services to other businesses. Those businesses typically need agreement from multiple stakeholders before making a purchase, which often extends the sales cycle length.

When conducting B2B marketing, the message should focus on logic and ROI, rather than emotional impact. How can you help their organization achieve its goals? What is important to their organization’s mission?

When creating a B2B paid social marketing strategy, ensure your campaigns and accompanying materials highlight a solid return on investment (ROI) that underlines how your product or service helps them save time, money—or both.

What is B2C Paid Social Media?

Conversely, B2C marketing means you’re marketing directly to a consumer. The focus should be on the benefits of the product—and how that product can benefit the consumer. However, the purchase decision is based much more on emotion than tangible ROI.

Buyers don’t want to put in extra work to understand the value of your product. You must clearly indicate benefits in a concise way that uses an emotional pull.

B2C vs B2B also differs in length of the purchasing process, with consumers making purchases in minutes to days. In contrast, B2B consumers take much longer, with the decision process occasionally extending a year or more.

B2B vs. B2C Marketing on Social Platforms

In addition to the above differences, B2B vs B2C users tend to use different social platforms. This distinction matters for marketers, as it guides where you should focus your time and resources to target these consumers.

If you’re attempting to sell to a consumer on a historically business-heavy platform (like LinkedIn), it is unlikely you’ll have much success.

B2B Social Platform Use

Historically, social media platforms don’t perform all that well for B2Bs. For example, trying to sell an enterprise software solution on Facebook might not get you very far.

Despite this precedent, there is an exception to every rule, and in this case, that exception is LinkedIn.

LinkedIn

Since the platform’s start, marketers have been trying to take advantage of LinkedIn’s ability to connect with powerful decision-makers in a professional setting.

Now you can. Credited with 97 percent of a business’ social media leads, LinkedIn is the platform every B2B marketer should be using to reach their audience and drive leads.

This may sound easier said than done, but luckily, there are multiple strategies to turn LinkedIn into your own personal lead-generation machine.

While LinkedIn is inarguably the most favored B2B platform, Twitter and Facebook earn second and third places in the hierarchy.

Twitter

Twitter may not be your immediate go-to for B2B marketing, but the platform is filled with potential consumers ready to buy. In fact, 53 percent of Twitter users are likely to be the first to purchase new products.

Twitter can help B2B marketers:

  • build brand awareness
  • increase social monitoring
  • assess competitor analytics

Collaboratively, these three benefits help increase your brand’s visibility, but also allow you to dive deep into competitors’ performance, assessing metrics like follower growth, impressions, and mentions to know where your competition stands.

Facebook

While Facebook use is declining among younger users, many B2B decision-makers regularly use the social networking site. A recent study reported that 74 percent of users use Facebook for professional purposes.

Facebook may help you gain access to new prospects who would never set a virtual foot in LinkedIn.

Want more evidence Facebook is advantageous for the B2B marketer?

With Facebook ads, you can:

  • target your audience based on detailed preferences
  • gather prospect information
  • use lookalike audiences to target users similar to your best customers
  • retarget users who have already interacted with your brand

Moral of the story: if you’re considering nixing Facebook from your B2B marketing strategy, don’t.

B2C Social Platform Use

While savvy marketers flock to LinkedIn, Facebook, and Twitter to reach B2B consumers, marketers targeting B2C consumers must adjust their targeted platforms accordingly. Let’s look at a few of the most common platforms for B2C marketing.

Instagram

Instagram was once dismissed as too juvenile to waste marketing spend on. Today, however, the platform is a marketer’s dream, offering countless opportunities to reach established and new consumers.

Given the B2C sales cycle’s brevity, Instagram is the perfect pair for business-to-consumer marketing. For marketers looking to get quick returns on visually-appealing products, Instagram is the go-to social platform.

Visuals aside, Instagram is also highly-trafficked by active consumers.

In fact, Instagram’s business portal reports:

  • 60 percent of people say they discover new products via Instagram.
  • 200+ million Instagram users visit at least one business profile per day.
  • 1/3 of the most-viewed Stories are from businesses.

Those statistics should have every marketer sprinting for their phone to start an Instagram campaign.

TikTok

TikTok might not seem like the ideal platform for your B2C marketing campaign, but many brands have found success on the interactive platform.

With the average user spending 52 minutes a day on the app, there are limitless opportunities for marketers to reach their desired audience.

Unlike other social platforms, TikTok offers marketers a variety of unique avenues for advertising, including:

  • in-feed videos
  • influencer packages
  • sponsored AR content

As the fastest-growing social platform on the market, be sure to take advantage of the massive audience that is just a video away.

table displaying B2B vs B2C social media platform marketing use

B2B vs. B2C: Content for Paid Social Media

After identifying the social platforms best-suited for your paid social campaign, it’s time to settle on what type of content to share. B2B and B2C differ in this area as well, with B2Bs historically performing well with an informational approach, whereas B2Cs find success with a more approachable, fun tone.

B2B Social Marketing Content

As noted above, businesses buy for a clearly-defined reason—which is based on statistics, not emotion. To successfully market to B2Bs, provide content that focuses on ROI. Here are a few types of content that tend to perform well in B2B paid social campaigns.

Informational Content

To demonstrate that ROI, consider building a library of consumable content that informs. A few mediums that traditionally perform well for B2Bs include:

By showing clear value in these pieces, you can scratch that ROI itch and begin the process of moving your B2B prospects through your marketing funnel.

Answer Industry Questions

Filling in industry content holes not only allows you to position yourself as an undeniable field expert, but you can also build content that satisfies specific long-tail search queries. Targeting these queries drives qualified traffic to your site, ideally earning conversions.

B2B vs B2C marketing infographic

B2C Social Marketing Content

While B2C’s counterpart craves ROI data, B2C consumers are more emotional buyers. To take advantage of this motivator, use content that inspires, delights, or evokes another positive emotion.

Storytelling

Your aim is to delight and engage your B2C buyers. Use narratives to hook and maintain consumer interest. Telling a story (either in a single iteration or across your campaign’s lifespan) can attract consumers, while also humanizing your brand.

Visual Content

Visual content grabs and holds attention much more effectively than text. By incorporating visuals into your campaigns, you’re more likely to elicit an emotional reaction, resulting in a B2C consumer making a purchase or mentally bookmarking your product for future reference.

B2B vs. B2C: Objectives for Paid Social Media Campaigns

Given the differences in content, sales cycle, and preferred platform, it’s no surprise that B2B vs B2C also differ in objectives for paid social campaigns. Understanding the different objectives provides the information you need to design successful social media campaigns.

B2B Objectives

The intent of most B2B marketing campaigns is not simply to make sales. Rather, a B2B marketing campaign will be marked successful if it improves:

  • brand growth
  • brand awareness
  • lead generation
  • industry-expert status

Since the sales cycle for B2B consumers is so long, factors like brand growth and brand awareness are incredibly valuable, as they allow you to build connections with potential buyers.

B2C Objectives

While B2B marketers find success benchmarks in growth, B2C markets tend to value direct sales and interactive metrics that show content that is interesting to users. Popular goals for B2C social campaigns include:

  • engagement
  • likes
  • follows
  • going viral

For the B2C marketer, these interactions indicate consumers are attracted to the brand’s offering and willing to interact with the organization.

B2B vs. B2C: Best Practices for a Paid Social Strategy

Although a few best practices apply across the aisle when it comes to B2B vs B2C paid social marketing, a few are particularly relevant to each audience.

B2B Best Practices

To start deploying successful B2B campaigns, look to these four practices to guide you in your planning phase.

Utilize Multiple Channels

Multichannel campaigns increase ROI by 24 percent, with a 9.5 percent increase in revenue gained and a 7.5 percent decrease in cost per lead. That’s ROI you can’t easily ignore.

Identify Goals

Goals only work as hard as you do. You need to establish achievable benchmarks for each campaign, allowing you to note successes and adjust failures.

Measure Results

Without measuring results, how will you know if your campaign was a success? By breaking down marketing metrics, you can gain specific insights into performance, identifying strengths, and recalibrating weaknesses.

Provide Quality Content

You’re only as good as your content. If you’re not creating quality pieces that provide your B2B consumers with clear, tangible ROI, then you’re not going to see results.

B2C Best Practices

Looking for a list of B2C best practices that can get your next campaign off the ground? These three tips can help.

Track the Right Engagement Metrics

As marketers, B2C goals rely heavily on engagement, so tracking these metrics should top your list of must-dos.

  • social platform engagement
  • website traffic
  • ROI
  • quality of leads
  • customer retention
  • conversion rate

Test Your Ads

Testing your ads on social platforms is a great way to see which ads perform well with your intended audience. This helps limit spend and increase audience engagement. A/B testing is an especially effective way to better understand which ads customers like.

Clearly Identify Your Audience

Without clearly outlining your target audience, you can’t market effectively on social media. By identifying the who and the why you can target the audience most likely to engage with your content or purchase your product.

Conclusion

Whether you’re marketing a B2B or a B2C audience, it is crucial to recognize the differences between the two audiences so you can create a campaign that actually converts.

As you begin to build paid social campaigns, focus on identifying content that works best for your audience and use the platform where your audience is most active.

By giving your consumers what they want, when they want, where they want it, you achieve every marketer’s goal: increased visibility.

What is the biggest difference you’ve found between B2B and B2C audiences?

The post What is the Difference Between B2B vs B2C for Paid Social Media? appeared first on Neil Patel.

SiteGround Review

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SiteGround is one of the most popular web hosting providers out there. Over two million website users trust SiteGround for their hosting needs. 

They offer a wide range of hosting options, plans at different price points, and phenomenal customer support. Whether you’re a small blog, medium-sized business, or large online store, SiteGround has an option for you. 

In a nutshell, SiteGround is a host that your business can grow with, which is pretty darn important. 

SiteGround Compared to The Best WordPress Web Hosts

SiteGround fares exceptionally well against other products in its category. It’s without a doubt a key contender for top web hosting for WordPress services. 

But what I love most about it is that they’re both extremely scalable and dedicated to supporting your WordPress website. 

Whether you’ve got 10,000, 25,000, or 100,000 visitors, there is a plan for you. There is also room for exponential growth for websites starting out without committing to the highest available plan. 

SiteGround also supports your WordPress website with their specifically designed features (which we’ll discuss below) and their 24/7 WordPress wizard customer support team. 

But I appreciate that you may have different needs or wish to explore your hosting options a bit further before committing to one host. 

That’s why we’ve taken the time to research and test some of the top web hosts for WordPress for you. Be sure to see all of my top picks before making your decision. 

Who is SiteGround Best For?

If I were extremely broad, I would say SiteGround is excellent for just about anyone who wants to host their website on WordPress. 

But to get specific, I’d say SiteGround is best for a small website owner who has little to no experience running a website and expects their website to grow over time. With flexible plans and excellent customer support, SiteGround is great for beginners and scaling over time.

SiteGround: The Pros and Cons

The Pros

Top-Notch Customer Support: Ever had seemingly unresolvable issues with technology and tried everything under the sun to fix it to no avail? Yeah, me too. 

Building a website doesn’t have to be scary or traumatic when you have SiteGround support on your side—your wish is their command. The customer support team is phenomenal. They receive almost a 100% satisfaction rating every year. 

Their 24/7 support comes via a live chat channel, phone support, and a helpdesk ticketing system. Even the most complex issues are resolved in an average time of 15 minutes, meaning you can get back to business asap. 

These things are super important for a beginning website owner to combat the inevitable challenges they face.

WordPress Recommended: SiteGround hosts over 80% of the two million domains on WordPress. With this in mind, it’s no surprise that they are experts at managing WordPress. 

Many of the support team are highly trained in WordPress and will happily assist you with WordPress related troubleshooting, compared to other hosts, who will simply tell you it’s not their issue (which truthfully, it isn’t). 

This is also why SiteGround has developed and implemented WordPress-specific features, such as the SG Optimizer, WP Auto Update, and Supercacher, in their plans. I’ve not come across another host that can boast such features, so SiteGround stands out in this area.

Low Introductory Price & Money-Back Guarantee: With a monthly hosting solution starting as low as $6.99 per month, SiteGround is a perfect option for even the most beginner website creators. 

Furthermore, the lead-in hosting plan includes all of the key features a new website owner would want in a plan, rather than having the absolute bare-bones to get the user to commit to a higher plan immediately. 

If something goes wrong, or your website doesn’t function the way you expect it to, you can get a full refund of your hosting fees within 30 days of signup.

Excellent Uptime & Site Speed: Uptime and site speed go hand-in-hand. Uptime refers to the amount of time the server stays up and running, while site speed refers to how quickly your website loads. 

You can see below that SiteGround’s average uptime over 12 months is 99.98%, with only 73 minutes of total downtime over the whole year. Reliable uptime means your website is virtually guaranteed to be running around the clock, keeping visitors happy.

Have you ever heard the notion that if your page doesn’t load within three seconds tops, you’ll lose the visitor’s interest? 

You won’t have to worry about that with SiteGround. They claim that they load your website four times faster than other hosts, so you won’t have to worry about visitors losing interest while waiting for your graphics to load. 

And, as you’ll see here, their slowest load time between 2019 to 2020 was 693 ms. 

Free Website Transfer: Many people are worried about making the switch to a new host. After all, it’s a scary process. What if you lose your entire website or cause irreparable damage? 

With SiteGround, you don’t need to worry. They’ll do it for you.

Most hosts will just move the files over. But SiteGround will also make the necessary tweaks to ensure everything is working smoothly for you after the transition. 

No blood, sweat, tears, or big bucks required in switching to a new host. SiteGround includes the WordPress migrator plugin in their plans, though if you prefer a professional to do it, it will cost you only $30 per website. 

Free Daily Back-Up: Most hosts will only back your website up every other day or even once a week. So, if anything happens to your website that you can’t fix, you might be forced to go back an entire week, meaning you’ll lose everything you’ve done in the meantime. 

But, with SiteGround, the worst-case scenario is that you’ll only lose the changes you’d made in the 24 hours since the last back-up. If that’s not peace of mind for someone making constant changes to their website, I don’t know what is! 

Great for Scalability: When you’re just starting out in business, there is no way but up, right? With SiteGround’s flexible range of plans, you don’t have to worry about outgrowing your host. Simply upgrade your plan as your business grows.  

The Cons

Renewal Price: As dreamy as the promotional rates of SiteGround’s hosting plans are, once the honeymoon is over, it’s truly over. 

When you renew, your rates will jump up quite high. The cost of your plan will essentially triple across the board once your promotional period is over. Ouch.

The best way to combat this is to sign up for the longest term available on the promotional period, which is either 24 or 36 months before you face the higher renewal rates.

No Monthly Billing Cycle: The higher renewal rates might be easier to cop if you could pay month-to-month. But unfortunately, monthly billing is not something that SiteGround offers. 

Personally, this is not a deal-breaker for me, but I can certainly appreciate how it may be restrictive and frustrating for some.

Storage Limitations: The low amount of storage space available on the shared hosting plans is unlikely to bother most of you reading this post. However, if your site does grow beyond 40 GB, you’ll have no choice but to switch to the more expensive cloud hosting plans. 

The StartUp plan includes just 10,000 site visitors, so if your website traffic grows exponentially too quickly off the bat, you may find yourself needing to upgrade your plan sooner than you think. 

SiteGround Pricing

SiteGround offers three tiers for their hosting options:

  • StartUp
  • GrowBig
  • GoGeek

These tiers’ pricing remains the same across the board for web hosting, WordPress hosting, and WooCommerce hosting. Cloud hosting has its own levels and pricing, which we’ll discuss. 

StartUp 

As the name suggests, this plan is perfect for those new to business or looking for smaller websites. The StartUp plan allows you one website, 10 GB of space, and up to 10,000 monthly visitors. Pricing starts at $6.99 per month on the introductory offer. 

Some other features included in this plan are:

  • Free WordPress Installation
  • Free SSL
  • Daily Backup
  • Free Cloudflare CDN
  • Free Email 

Overall, it’s a great plan for those who are just getting started. The only thing to be wary of is outgrowing your monthly visitors limit. If you think you’re going to scale quickly, it would be worth starting straight off with the GrowBig plan.

GrowBig  

The GrowBig plan is perfect for medium-sized businesses or those who know they will be managing more than one website. You’ll have access to unlimited websites, 20 GB of web space, and up to 25,000 monthly visitors. Pricing starts at $9.99 per month on the introductory offer. 

Aside from the features included in the StartUp plan, this plan also includes:

  • On-demand Backup copies
  • Speed-boosting Caching 
  • Staging environment 
  • Add collaborators to your site

It’s easy to understand why GrowBig is SiteGround’s best-selling plan. It includes a range of great features that are easy to use and will fit the brief most in need of a website out there that expects a steady traffic flow. 

GoGeek

The GoGeek is the most extensive shared hosting plan SiteGround has to offer. As the name suggests, it’s designed for ‘technology geeks’ who want lots of control over their website. 

The GoGeek plan will give you unlimited websites, 40 GB of web space, and up to 100,000 monthly visits. Needless to say, it’s truly designed for large businesses with a high volume of traffic. Pricing starts at $14.99 per month on the introductory offer. 

The GoGeek plan includes all the features mentioned above, as well as: 

  • Register your clients with white-label access to Site Tools
  • Use more server resources for higher process execution time
  • Ultrafast PHP for faster page loads
  • Priority support from SiteGround’s most experienced customer support agents

In a nutshell, this plan is for those of you who know what you’re doing with websites. If you don’t understand some of the plan’s technological features, it may not be the best plan for you. Unless, of course, you have a specialist on your team to manage your website and need access to high volume traffic capabilities. 

Cloud Hosting

We’ll touch on the cloud hosting product offerings shortly, but in terms of pricing, there are four plans for SiteGround’s cloud hosting: Entry, Business, Business Plus, and Super Power. 

As you can see in the screenshot below, the pricing ranges from $110 to $410 per month. The major difference in the plans is CPU cores, memory, and SSD space. 

Due to the easy scalability of the cloud hosting options (which you’ll learn about shortly), you can confidently start with the Entry plan if it’s your first time using cloud hosting. 

SiteGround Offerings

SiteGround Web Hosting

SiteGround offers fast and secure web hosting for websites of any kind. Their general web hosting product is optimized for a range of Content Management Systems (CMS) such as WordPress, Drupal, Joomla, and more. 

You’ll be able to build and launch your website quickly and easily with their full website solution, including your choice of site builder: WordPress or Weebly. If you’re an online store, you’ll be able to install the shopping cart of your choice for free. 

Domain registration is easy and affordable with SiteGround, so you’ll be able to enjoy the convenience of managing both your domain and your site in one place. 

You’ll also have access to an unlimited number of email accounts when you create your domain, which is perfect for managing different areas of your business. 

SiteGround WordPress Hosting

SiteGround is one of the few web hosting companies that offer hosting options specifically for WordPress. As mentioned previously, they are even highly recommended directly by WordPress. 

With SiteGround, you won’t need to download and install WordPress manually. Instead, you’ll be able to automate the process with a simple click of a button using the WordPress Launch feature. 

Upon login to your new website, you’ll be prompted to set your site up simply and easily with SiteGround’s WordPress Starter kit. The whole process takes minutes from start to finish, even for a beginner!

One of the most popular features of SiteGround’s WordPress hosting is the free SiteGround Migrator plugin. This feature is perfect for users who may hold their website with another host and wish to transfer over to SiteGround. 

Better yet, if you’re not confident in your abilities to navigate the migrator plugin, you can have a WordPress whiz from SiteGround do it for you for an additional fee. 

SiteGround WooCommerce Hosting

SiteGround also offers hosting options for users looking to build a powerful online shop using WooCommerce. This plan comes with WooCommerce pre-installed, saving you time and hassle, allowing you to straightaway focus on uploading products to your online store. 

With WooCommerce, you can sell any type of product or service online. SiteGround will support your ecommerce growth by keeping your website safe with a unique AI anti-bot system, free pre-installed SSL, and custom Web Application Firewall (WAF).

If you choose the WooCommerce GrowBig or GoGeek plan, SiteGround will also include a convenient staging tool. You’ll be able to develop your store safely, testing changes and updates made on the staging copy before going live. 

SiteGround Cloud Hosting

Cloud hosting is a relatively new way to host websites. It’s an ideal solution for businesses and websites of medium to larger sizes, who have the capacity to grow very quickly. If you are starting to outgrow your shared hosting plan, cloud hosting is the next step. 

SiteGround’s cloud hosting will provide you with guaranteed resources with your very own RAM and CPU. You can also upgrade the RAM, CPU, and disk space of your cloud plan at any time. Better yet, there is no downtime with this process—the resources are added immediately. 

If you want to automate the scaling process, you can do that, too! SiteGround’s unique auto-scale option will adjust your CPU and RAM to meet the needs of unexpected traffic surges, preventing any slowness or downtime. 

The best part is that the scalable amount is pre-determined by you, so you’ll still have control over the scale’s parameters. 

Finally, cloud hosting with SiteGround will also include a free dedicated IP. This feature will give you peace of mind that your website is safe from IP blacklist due to other webmasters’ actions.

The Best WordPress Web Hosting Service

Not sold that SiteGround is the perfect match for you? Or maybe you simply want to know what else is out there, so you can ensure you’ve chosen the best of the best. I get it. 

That’s why we’ve written a whole post about the Best WordPress Web Hosting Services out there. Here are the contenders I’ve reviewed:

1. Bluehost — Best WordPress Hosting For New Websites
2. DreamHost — Most Versatile WordPress Hosting Plans
3. Nexcess — The Best For Customized Managed Hosting Solutions
4. SiteGround — The Best For Scalable Traffic
5. WP Engine — Best Managed WordPress Hosting
6. A2 Hosting — The Best For Site Migrations
7. IONOS by 1&1 — The Best For Pro Users

The bottom line: Would I recommend SiteGround for your web hosting needs? Absolutely.

They have a range of plans to suit any business and budget, and they compete well with their competitors in terms of features. They excel in site speed time and offer phenomenal customer service. With all this in mind, they are a sound choice. 

The post SiteGround Review appeared first on Neil Patel.

The 6-Step Guide to Creating a Content Cluster that Ranks

The past few years have witnessed an increase in the evolution of Search Engine Optimization (SEO) content marketing. Such a positive change gives you an edge over other professional SEOs out there.  With the exponential increase in competition for high ranking on Google, a number of people are coming up with great content. However, they …

The post The 6-Step Guide to Creating a Content Cluster that Ranks first appeared on Online Web Store Site.

The post The 6-Step Guide to Creating a Content Cluster that Ranks appeared first on ROI Credit Builders.

Understanding Experian’s Intelliscore and How An Expert Can Help

Experian’s Intelliscore can make or break your ability to get many types of business funding. If it’s bad, you need to fix it. That’s easier said than done however. 

Your Intellliscore is Important, but You Can Still Get Funding If It’s Bad

There are ways to improve your Intelliscore and get funding while you do so, but you need help.  The time is now. Delaying can only make the issue worse.  It helps to understand what your Intelliscore tells lenders about your business, and how Experian comes up with it. 

Understanding Intelliscore

The Intelliscore Plus credit score is a statistically based credit-risk analysis. It helps businesses, investors and possible future lenders make smart choices about who they should do business with.

It runs from 1 to 100, and can deliver insight on how much of a risk a business or business owner may be.

The higher your score, the lower your risk class. The chart below summarizes each Intelliscore Plus credit score range and its associated meaning.

 

Score Range Risk Class Risk Description
76– 100 1 Low
51– 75 2 Low to Medium
26– 50 3 Medium
11– 25 4 High to Medium
1– 10 5 High

 

Although there are more than 800 commercial and owner variables used to ascertain the score, the variables can be split into these pivotal factors:

Monetary

This specific factor focuses on how you use credit. For example, how much of your available credit is currently being used? Are you usines a lot of your credit and not repaying? Responsible credit use is a huge factor. 

Intelliscore Credit Suite

Credit Line Hybrid Financing: Get up to $150,000 in financing so your business can thrive.

Payment History

The bureaus call it recency. However, it’s just your current payment status. It’s basically how often any of your accounts become delinquent, the percent of accounts which are currently delinquent, and your overall trade balance.  

Intelliscore Plus is considered to be one of the more reliable tools for determining creditworthiness. One of the ways it maintains this reputation is by identifying the key factors that indicate whether or not a business is likely to pay their debt.

Frequency

Somewhat closely related to payment history, frequency takes into account how often your accounts have been sent to collections, the amount of liens and judgments you may have, and any bankruptcies connected to your business or personal accounts.

On top of that, frequency can also incorporate details pertaining to your payment patterns. Were you regularly slow or late with payment? Did you start off paying bills late, but overtime, reduced this behavior? These things will all be taken into consideration.

If you haven’t started or don’t have a long history of business based transactions, how will Experian rate you?

This is addressed by using a blended model to identify your score. This means that they take your personal consumer credit score into account when calculating your business’s credit score.

What if You Have a Bad Intelliscore? 

If it’s bad, you have to fix it. It’s that simple.  However, it’s not as simple as it sounds.  In fact, you may not be able to do it on your own.  The best and fastest way to fix the issue is to start paying your obligations on time.  

Of course that sounds simple.  However, there is likely a reason you fell behind in the first place.  The fact is, you need business funding to pay your bills and raise your score.  But, how do you get funding without a good score?  There is no one size fits all solution, but there are some things you can do. 

Talk to a Business Credit Expert

If you are struggling with a bad score, you are going to need help.  Not only help with rebuilding your score, but help with funding and fundability as a whole.  Many business owners do not realize that business credit scores, like Intelliscore, are not the only thing lenders consider when it comes to business funding.  There are a number of factors that must be taken into account, but the business credit scores, including Experian’s business credit score,  are a big piece of the puzzle. 

A business credit expert will help in more ways than one.  First, they can help you find the best funding to fit your needs right now, that you can get even with a bad business credit score. Then, they can help you rebuild your business credit and evaluate your fundability overall, showing you how to make adjustments where necessary.  

What Business Options Exist with Bad Credit? 

Now is the time to talk to an expert, before your Intelliscore and other business credit scores get any worse. A business credit expert will likely suggest one of the following options to catch up on debt and start rebuilding your credit. 
Intelliscore Credit Suite

Credit Line Hybrid Financing: Get up to $150,000 in financing so your business can thrive.

Credit Line Hybrid

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

Your personal credit score should be at least 680.  In addition, you can’t have any liens, judgments, bankruptcies or late payments.  Furthermore, in the past 6 months you should have less than 4 credit inquiries, and you should have less than a 45% balance on all business and personal credit cards.  

 Now, here’s the catch that helps a lot of business owners out.  If you do not meet all of the requirements, 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. 

The best part of this type of funding is that it reports to your business credit report, regardless of whether you use your personal credit to apply or that of a credit partner. That means, you get your funding and build your business credit at the same time.

If this still isn’t enough funding, or it won’t work for you, you  may qualify for other options.

Account Receivable Financing

To get this type of funding, you have to have open receivables from another business or government agency, not individuals.  In addition, you need to have been in business for at least one year. The minimum credit score is just 500.

You can get up to 80% of receivables advanced in as little as 24 hours.

Merchant Cash Advance

If you accept credit cards as payment, you may qualify for a merchant cash advance.  You only need a credit score of at least 500.  To qualify, your business must bring in $100,000 or more per year in credit card sales.  Typical approval amounts equal one months’ credit processing volume.  In addition to the application, you’ll need 3-6 months bank and merchant statements. 

Equipment Financing

If you need equipment, it might be better to consider equipment financing.  You will put up your existing equipment or the new equipment you want to purchase as collateral.  Amounts are available up to $10 million with terms ranging up to 60 months. You will  need a credit score of at least 550. 

Real Estate Financing

You can get real estate financing in amounts up to $10 million with terms from 6 to 60 months and interest rates as low as 6%.  You will need a 500 minimum credit score, and there are a few other requirements. 
Intelliscore Credit Suite

Credit Line Hybrid Financing: Get up to $150,000 in financing so your business can thrive.

Business Revenue Lending

Another option is business revenue lending.  Again, the minimum credit score is 500.  Your business must earn annual revenue of $120,000 or more, and it must do more than 5 small transactions each month.  If your business brings in at least $15,000 monthly, then 6 months in business is acceptable.  You will have to fill out an application and provide 6 months worth of bank statements. 

Intelliscore, Business Funding, and Help for the Future

If your Intellicore is bad, you need help now.  It will soon become impossible, if it isn’t already, to get the funding you need to run your business.  An expert can help you come up with a plan to get your credit back on track, help you figure out what other issues you may have with fundability, and help you find funding you qualify for now to help you out in the meantime. 

 

The post Understanding Experian’s Intelliscore and How An Expert Can Help appeared first on Credit Suite.

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