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Credit Card for Bad Credit Score
Are You Looking for a Credit Card for Bad Credit Score?
Did you know that it’s possible to get a credit card for bad credit score? Yes, really!
We researched lots of company credit cards for you. So, here are our choices.
Per the SBA, business credit card limits are a whopping 10 – 100 times that of personal credit cards!
This shows you can get a lot more money with company credit cards.
And you will not need collateral, cash flow, or financials to get small business credit.
Credit Card for Bad Credit Score: Business Credit Card Benefits
Benefits can vary. So, make sure to pick the benefit you would prefer from this selection of alternatives.
And always check rates on the appropriate website.
Credit Card for Bad Credit Score, Not Calling for a Personal Guarantee
Brex Card for Startups
Look into the Brex Card for Startups. It has no yearly fee.
You will not need to provide your Social Security number to apply. And you will not need to supply a personal guarantee. They will take your EIN.
Nevertheless, they do not accept every industry.
Likewise, there are some industries they will not work with, as well as others where they want more paperwork. For a list, go here: https://brex.com/legal/prohibited_activities/.
To determine creditworthiness, Brex checks a company’s cash balance, spending patterns, and investors.
You can get 7x points on rideshare. Get 4x on travel. Likewise, get triple points on restaurants. And get double points on recurring software payments. Get 1x points on everything else.
You can have bad credit (even a 300 FICO) to qualify.
Find it here: https://brex.com/lp/startups-higher-limits/
Credit Card for Bad Credit Score: for Fair Credit
Capital One® Spark® Classic for Business
Have a look at the Capital One® Spark® Classic for Business. It has no annual fee. There is no introductory APR offer. The regular APR is a variable 26.99%. You can earn unlimited 1% cash back on every purchase for your company, without any minimum to redeem.
While this card is within reach if you have average credit scores, beware of the APR. However if you can pay on schedule, and completely, then it’s a bargain.
Find it here: https://www.capitalone.com/small-business/credit-cards/spark-classic/
Score the best business credit cards for your business. Check out our professional research.
Credit Card for Bad Credit Score for Extravagant Travel Points
Flat-rate Travel Rewards
Capital One® Spark® Miles for Business
Check out the Capital One® Spark® Miles for Business. It has an introductory annual fee of $0 for the first year, which after that rises to $95. The regular APR is 20.99%, variable due to the prime rate. There is no introductory annual percentage rate. Pay no transfer fees. Late fees go up to $39.
This card is great for travel if your expenses do not fall into standard bonus categories. You can get unlimited double miles on all purchases, with no limits. Earn 5x miles on rental cars and hotels if you book via Capital One Travel.
Get an introductory bonus of 50,000 miles. That’s the same as $500 in travel. But you only get it if you spend $4,500 in the initial 3 months from account opening. There is no foreign transaction fee. You will need a good to excellent FICO score to qualify.
Earn 50,000 bonus miles if you spend at least $4,500 within 3 months of your rewards membership enrollment date
Find it here: https://www.capitalone.com/small-business/credit-cards/spark-miles/
Score the best business credit cards for your business. Check out our professional research.
Hotel Credit Card
Marriott Bonvoy Business
American Express® Card
Take a look at the Marriott Bonvoy Business Card from American Express. It has a yearly fee of $125. There is no introductory APR offer. The regular APR is a variable 15.74 – 24.74%. You will need good to superb credit to get this card.
Points
You can earn 100,000 Marriott Bonvoy points after using your card to make purchases of $5,000 in the initial 3 months. Get 6x the points for qualified purchases at participating Marriott Bonvoy hotels. You can get 4x the points at United States restaurants and filling stations. And you can get 4x the points on wireless telephone services purchased directly from American service providers and on American purchases for shipping.
Get double points on all other eligible purchases.
Rewards
Also, you get a free night every year after your card anniversary. And you can earn one more free night after you spend $60,000 on your card in a calendar year.
You get free Marriott Bonvoy Silver Elite status with your Card. Also, spend $35,000 on qualified purchases in a calendar year and get an upgrade to Marriott Bonvoy Gold Elite status through the end of the following calendar year.
Find it here: https://creditcard.americanexpress.com/d/bonvoy-business/
Not Qualifying for a Credit Card for Bad Credit Score? Then Try Working with a Credit Partner
Our Credit Line Hybrid could be within reach. But the trick is to work with a credit partner.
If your credit partner has good personal credit, then a hybrid credit line could be the perfect solution.
How Much You Can Get
You can get up to $150,000, even if your business is a startup.
Qualifying for Our Credit Line Hybrid
To qualify, your credit partner’s personal credit score should be at least 685. And they can’t have any liens, judgments, bankruptcies, or late payments. Plus, in the past 6 months they should have fewer than 5 credit inquiries. And they should have less than a 45% balance on all business and personal credit cards.
It’s better if you or they have established business credit as well as personal credit. See creditsuite.com/business-loans.
Score the best business credit cards for your business. Check out our professional research.
You Won’t Need a Credit Card for Bad Credit Score if You Improve Your Personal Credit – Here’s How
Your personal credit score comes from a few basic measurements.
One is the mix of credit you’ve got. Hence, if you only have a credit card, getting an auto loan can enhance your credit mix.
Another is the number of recent inquiries. This is about the best argument against credit shopping. And inquiries stay on your personal credit report for years! So try to curb any tendencies you might have to shop around for credit.
More Ways to Improve Your Personal Credit Score
The average age of your accounts also comes into play. Therefore, if you aren’t using a card anymore – do not cancel it! But recognize that, eventually, the credit issuer will close it. As a result of this situation, if you won’t be tempted to overspend – try to use a less often used card maybe once every couple of years.
Yet another factor is your utilization percentage. That’s a simple math formula – it’s just used credit divided by total available credit. And this is for both individual cards and all of your credit. Try to keep this percentage under 30% if you can.
The Biggest Way to Improve Your Personal Credit Score
We saved the best for last! Your best way to improve your personal credit score is to just pay your bills on time, and in full. Just paying the minimum amount every month will never get you out from under debt. It’s essentially designed to keep you in debt, indefinitely.
Responsible financial stewardship will never steer you wrong – and then you’ll have a lot more credit card choices.
The Very Best Credit Card for Bad Credit Score for You
Your straight-out ideal company credit cards depend upon your credit history and scores.
Just you can choose which features you want and need. So, to do your research. What is outstanding for you could be disastrous for another person.
And, as always, make sure to develop credit in the recommended order for the best, speediest benefits.
The post Credit Card for Bad Credit Score appeared first on Credit Suite.
Advantages of Working from Home Running a Business
Everyone knows there are advantages of working from home. In the post COVID-19 pandemic world, the disadvantages have become clear as well. However, working from home and running a business from home are two very different things.
Do the Advantages of Working from Home Apply When Running a Business?
The short answer to this question is yes. The advantages of working from home are still there when running a home based business. In fact, the same disadvantages are present as well. What many do not realize is that there are some unique disadvantages to working from home while running a business. However, they are not impossible to overcome.
Clear Advantages of Working from Home
It’s not hard to find information on the advantages of working from home. The internet is full of articles and blogs on why working at home is great and how to make it even better. All you have to do is search “work at home tips” and a plethora of information will be at your fingertips. You save money on overhead. You save money and time not commuting. Clothing costs are significantly cut. Eating out is not as huge as a temptation so you can save money and your waistline.
Of course each of these advantages of working from home can be a disadvantage as well. For every meal you don’t have to eat out you can make as many trips to your fridge as you want and get whatever you want. That can add to your waistline and your grocery bill. Some are not as productive when they are wearing pajamas. Despite the savings, a lot of people would rather have the commute time to wind down after a long day. It all depends on the individual.
Unique Disadvantages of Working from Home Running a Business
Sometimes it can be hard to determine if the advantages of working from home overcome the disadvantages. Loneliness and isolation, lack of physical activity, distraction caused by everyday activity in the home, and lack of accountability are all well documented disadvantages of working from home. However, running a home-based business out of your house comes with a unique set of disadvantages.
Harder to Manage Employees
First, if you have employees, you no longer have to worry only about your own productivity. You have to ensure they are being productive as well. That’s a challenge, but technology has come a long way in that area. There are a number of options for daily contact and project management that can reduce the issues caused by this.
Learn more here and get started with building business credit with your company’s EIN and not your SSN.
Fundability is More Difficult to Achieve
The truth of the matter is, you achieve fundability the same way regardless of whether you run your business out of your home or from a separate location. The difference is, running a business from home may tempt you not to bother with some things that actually have a huge impact on fundability.
For example, for a business to appear fundable to a lender, it needs to be totally separate from the owner. This means having separate contact information, an EIN, being incorporated, and having a separate business bank account amount other things. These are all things that a lot of home-based business owners do not worry about in the beginning.
I mean, running your business from your home is an easy way to start. You can just use your own phone number and address, use your SSN and not worry about an EIN, and use your own bank account because it’s your money anyway.
This is perfectly legal and definitely the easiest way to do things. But the easiest ways are not always the best ways. If you set your business up to be a separate, fundable entity from the start, you are much more likely to be able to get the funding you need.
How to Overcome the Work from Home Challenges of Running a Home Based Business
This potential lack of fundability can make it much harder to get approval for home based business loans and other types of business funding. There is a way to overcome this issue, but you need help. There are over 100 factors that affect fundability. It is virtually impossible for a business owner to keep tabs on all of them on their own.
In fact, the secret sauce required by each lender is typically known only to that lender. That is, unless you can find a business credit expert to help you navigate. This is someone who not only understands all the ins and outs of fundability, but knows how to access it for your business. They have the knowledge and relationships necessary to know where to look and who to talk to to get the information you need to establish and build strong fundability.
They can also help you find financing that you qualify for right now, while you work on building the fundability of your business. Here are some examples.
Best Home Based Business Loans
Despite the fact that one of the biggest advantages of working from home is cost savings, getting funding is an issue. When running a home based business, you have a few options. If your business is set up to be fundable, you have a lot more. The key is to find the funding you can get now, and work on fundability in the meantime.
Resist the urge to get a personal loan if you can find another possibility. Funding your business with personal credit should be a last ditch effort. It can have a serious negative impact on your personal credit score and financing in general. Here are a couple of things to try first.
Credit Line Hybrid
A credit line hybrid lets you fund your business without putting up collateral, and you only pay back what you use. You need a personal credit score of 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. It’s also preferred that you have established business credit as well as personal credit.
If you do not meet all of the requirements, it’s okay. You can take on a credit partner whomeets 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.
Learn more here and get started with building business credit with your company’s EIN and not your SSN.
What are the Benefits of a Credit Line Hybrid?
There are many benefits to using a credit line hybrid. First, it is unsecured, meaning you do not have to have any collateral to put up. Next, the funding is “no-doc.” This means you do not have to provide any bank statements or financials.
Not only that, but typically approval is up to 5x that of the highest credit limit on the personal credit report. Additionally, often you can get interest rates as low as 0% for the first few months, allowing you to put that savings back into your business.
The process is pretty fast, especially with a qualified expert to walk you through it. Also, the approval of multiple credit cards creates competition. This makes it easier, and likely even if you handle the credit responsibly, that you can get interest rates lowered and limits raised every few months.
The best part is, these accounts report to the business credit reporting agencies, which helps you build your business credit score. A strong business credit score strengthens fundability.
401K Plan Financing
401(k) plan financing is not a loan. You will not have to pay an early withdrawal fee, and you will not have to pay a tax penalty.
Our 401(k) plan financing offers a powerful and flexible way for new or existing businesses and franchises to leverage assets that are currently in a 401(k) plan or IRA. In as little as 3 weeks you can invest a portion of your retirement funds into your business. This gives you more control over the performance of your retirement plan assets. And it gives you the working capital you need for business growth.
What About the IRS?
This is a 401(k) Rollover for Working Capital program. The IRS calls it a Rollover for Business Startups (ROBS). According to them, a ROBS qualified plan is a separate entity with its own set of requirements. The plan, through its company stock investments, rather than the individual, owns the trade or business. Therefore, some filing exceptions for individuals may not apply to such a plan. As always, it is going to be best to check with an expert.
401K Financing Details
This type of financing is not a loan against your 401(k), so there is no interest to pay. It does not use the 401(k) or stocks as collateral. Also, it’s quite easy to qualify for. You will not need financials or good credit to get approval. All the lender will require is a copy of your two most recent 401(k) statements.
If your plan has a value of more than $35,000, you can get approval even if your personal credit score is bad. You can receive whichever percent of your 401(k) is “rollable” as financing. In many cases, you can secure a low-interest credit line or loan for 100% of your current 401(k) value.
The 401(k) you use cannot be from a business where you are currently working. Also, you cannot be currently contributing to it.
Learn more here and get started with building business credit with your company’s EIN and not your SSN.
Enjoy All the Work from Home Benefits While Running Your Own Business
It is harder for a home-based business to get funding. This stems from the fact that it is harder to separate the business from the owner for fundability purposes. That does not mean that you cannot enjoy all the advantages of working from home while running a business however. It can be done. You can build business fundability while running your business from home. You just have to be intentional. A business credit expert to walk you through the process is a must. Do not fall into the trap of thinking you can do this on your own.
This is someone who can not only help you assess and build fundability, but they can also help you find the financing you can get right now easier and faster. Find out more today.
The post Advantages of Working from Home Running a Business appeared first on Credit Suite.
You Can Boost Credit Score Fast
Did You Know You Can Boost Credit Score Fast?
Yes, you really can boost credit score fast for your business.
But let’s start with some definitions and background on business credit.
Business Credit
This is credit in a business’s name. It is not tied to the owner’s creditworthiness. Instead, business credit scores depend on how well a company can pay its bills. Hence consumer and business credit scores can vary dramatically.
Business Credit Benefits
There are no demands for a personal guarantee. You can quickly get business credit regardless of personal credit quality. And there is no personal credit reporting of business accounts. Business credit utilization won’t affect your consumer FICO score. Plus the business owner isn’t personally liable for the debt the business incurs. And yes, you can boost credit score fast.
Business Credit Details
Being accepted for business credit is not automatic. Building business credit requires some work. Some of the steps are intuitive, and some of them are not.
Fundability
Fundability is the current ability of our business to get funding. Some factors are within your control. Others (like your time in business) aren’t. Your online presence and data are one area which is at or close to 100% with your control.
Boost Credit Score Fast: Understand Fundability, and Business Funding Applications
The better your business credit and fundability are, the more likely you will get approval for business financing. Today, let’s concentrate on your online presence, that is, your email address and your website. It’s a great way to work to boost credit score fast.
Lenders Use Data to Decide on Your Application
They check information from a variety of sources, and they don’t tell you about any of them. Knowing what these secret sources measure can only help you. Understanding what matters the most makes getting a loan A LOT easier, because you know what to improve first. This information is the difference between getting an approval and getting a denial.
Lenders Use LexisNexis Information
LexisNexis is one source where many of the lenders reviewing loan applications get their information from. They offer information regarding likelihood to pay, or not. Lenders compare LexisNexis information to what you put on your loan application. If the application and LexisNexis don’t match, then, the loan providers will deny you a loan. They will see the inconsistency as fraud.
LexisNexis connects all of the data that pertains to you, both positive and negative. They have access to
- criminal records
- every email address you’ve ever used (these are your professional and personal email addresses)
- your speeding tickets
- any mortgage you have ever held
Keep your business protected with our professional business credit monitoring.
Lenders Use Online Information Including Your Business Email and Website
One place where lenders and vendors will be looking for your business is online. Even if they’re not specifically checking out your online presence, they may still need to know how to order your product or service, or where to send praise or complaints. Your online presence is where they will find that information, or not.
Boost Credit Score Fast and Work on Your Website
What happens if your family member or a friend built your website? Maybe that person is talented, but business websites differ from personal ones. A business website needs to be easy to navigate. It needs to answer customers’ questions.
Styles differ. Wedding photographers and construction companies differ. They have dissimilar sites and design sensibilities, but they both have Contact and About pages, and information about what they do.
Make sure you own your domain, and not just your domain at Wix or WordPress or the like. You can do this by buying hosting. This is through hosting companies like GoDaddy or HostGator.
Your Email Address
Given that so much more of lending decisions is going on online these days, then your email address is an opportunity for your business to puts its best foot forward. Don’t squander this easy and free opportunity! General email addresses like [email protected] tend to be best.
With a general email address, if someone leaves your employ, another employee can seamlessly take over that email address. A username like admin, webmaster, or even hello is far, far better than cutiepie or the like, even if you’re in a playful industry that caters to kids. After all, your bank and banker aren’t.
Records Congruency
Keep your records consistent! This includes your online records. LexisNexis and the SBFE (Small Business Financial Exchange) are looking at everything, so it had better match.
Inconsistent records will lead to a denial due to fraud because that’s how lenders interpret inconsistencies. This is a cause of denials which is in the business owner’s hands. You have the ability to change and correct this.
This means your business name, address, phone number – everything! – must look the same in these places and more:
- Every place your business has an online presence (your website, Yelp, SoTellUs, etc.)
- IRS records
- Your business’s records with Dun & Bradstreet, Experian, and Equifax
- All licenses needed to run your business
- Incorporation documents
Copy/paste this information; don’t chance it with retyping.
Keep your business protected with our professional business credit monitoring.
Boost Credit Score Fast with Fundable Business Credit Applications – Avoid Denials
Keep your business looking fundable (legit) with:
- A professional website and email address
- A toll-free phone number
- List your phone number with 411
- A business address (not a PO box or a UPS box)
- Get all necessary licenses for running your business
Online Fundability
There are some aspects of fundability where you should pay particular attention to what’s going on online. They include:
- Business owners listed and listed ownership uniform
- Business name and address uniform
- Industry aligned
- Company domain
- Information uniform on all records
Business Ownership Listings
Records consistency matters here, too. Your website should show who owns your business. And that information needs to be consistent. So if the owner is named Susan Johnson on your website’s About page, then she can’t be listed as Sue Johnson on your Contact page. If your business ownership changes, you need to show that here.
Business Name and Address Uniformity
Abbreviations can be your downfall here, as can punctuation like hyphens, commas, and colons. If your Contact page says your main office is on Main Street, then your About page can’t say it’s on Main St.
If your business moves, or you add subsidiaries and other locations, then you need to update that information everywhere. This even means whether you use your 5-digit ZIP code, or a ZIP plus 4 code (9 digits).
Keep your business protected with our professional business credit monitoring.
Industry Alignment
If your business is over the road trucking, then it needs to be listed that way. Pro tip: when your industry can be called several different names, like long distance trucking, mention those other phrases on your website.
Your Company Domain
When your company domain matches your business name, it helps with fundability. Pro tip: try to match what people will be searching for online, so if (for example) the word ‘brothers’ is in your company name, then determine if ‘brothers’ or ‘bros’ will be used by people searching for your company and its goods and services online.
Boost Credit Score Fast: Takeaways
More fundable businesses can get more money, and they tend to get more prospects who decide to become customers. One area of fundability you have total or near total control over is your business’s online presence. Keep it professional, uniform. and appealing, and easy to use. We can help you with even more aspects of fundability and you can boost credit score fast!
The post You Can Boost Credit Score Fast appeared first on Credit Suite.
Get Your First Time Business Loan
Can You Get a First Time Business Loan for Your Startup Business?
When it comes to a first time business loan, what are your best choices for your startup?
What are All the Different Types of Business Loans?
There are several different types of business loans out there. Startups can have more trouble getting funding. This is because you don’t have a business credit history – and you don’t have inventory or cash flow. But those aren’t the only way to get a first time business loan. Check out what else you can do.
Choosing Among the Many Different Types of Business Loans Means Knowing What’s Right for You
Knowing the different types of small business loans is only half the battle. You have to know how to figure out which one is right for you. The answer to that will vary based on a number of factors, and it may even change over the course of your business.
But the right type of loan for your business now may not be the right type for your business later. The best way to start figuring out which loan is right for your business is to figure out what’s available. Did you know that traditional bank loans are not the only option?
Types of Small Business Loans
There are many more, including:
- Securities-Based Financing
- 401(k) Financing
- The Credit Line Hybrid
- SBA Loans
- Equipment Financing
- Traditional Lines of Credit
Let’s dive in to each one and figure out which one is best for your business right now
Get a First Time Business Loan with Securities-Based Financing
Use existing stocks as leverage to get business financing. Borrow as much as 90% of their value. You continue to earn interest on the stocks pledged as collateral. Closing and funding takes less than 3 weeks.
Rates can be as low as 1.6%. This is a working capital line of credit. You will have challenged personal credit.
And if you do not have this type of securities, you can still get great funding if a credit partner (guarantor) has them.
Get a First Time Business Loan with 401(k) Financing
Use your existing 401(k), or IRA as collateral for business financing. This program uses IRS proven strategies. You will pay no tax penalties.
You still earn interest on your 401(k). pay low rates, often less than 5%. Close and fund in less than 3 weeks. You can usually get up to 100% of what’s “rollable” within your 401(k).
Follow these steps. A new corporation is formed; a retirement plan is created to allow for investment into the corporation; funds are rolled over into the new plan. Then the new plan purchases stock in corporation and holds it. The corporation becomes debt free and cash rich.
And, as before, if you don’t have an appropriate IRA or 401(k), you can still get this kind of funding if you’ve got a credit partner with the right stuff.
Demolish your funding problems with 27 killer ways to get cash for your business.
For an Alternative to a First Time Business Loan, get to know Our Hybrid Credit Line Program
Check out this form of unsecured funding. Unsecured funding does not require collateral, but the lender’s risk is mitigated by higher interest rates. Our credit line hybrid has an even better interest rate than a secured loan. Yet you can get the money faster and easier than any type of traditional funding. Get business funding without having to supply bank statements or credit stubs. You can get funding in a few days rather than weeks without supplying any collateral or documents.
You can get some of the highest loan amounts and credit lines for businesses. Get 0% business credit cards with stated income. No financials required. These report to business CRAs. You can build business credit at the same time. This will get you access to even more cash with no personal guarantee.
You can often get a loan of 5 times the amount of current highest revolving credit limit account. This is up to $150,000. Easily five times what you could get on your own when applying for cards. Get cash out on this program as well.
Advantages
There will be NO impact on your personal credit with this type of financing. You need a good credit score or a guarantor with good credit to get an approval. With good personal credit, get unsecured credit cards with a personal guarantee. And with good business credit, get unsecured credit cards without a personal guarantee.
Check out business credit. It should be your goal to build business credit, even if you can get funding elsewhere. Business credit will help your company for years to come. Business credit is credit linked to your EIN and not your SSN.
This credit is available without a personal guarantee. It is available regardless of personal credit. You can get business credit immediately. Business credit is the only way to get money for a business when you don’t have collateral, cash flow, good personal credit, or a guarantor.
Get a First Time Business Loan Through SBA Loans
Guaranteed by the federal government. Issued by participating lenders, usually banks. They offer a lot of the perks of traditional loans, such as lower interest rates and favorable terms. Due to government guarantee, lenders are able to offer them to those with a lower credit score than would typically be required.
Eligibility for SBA Loans
Lenders and loan programs have unique eligibility requirements. In general, eligibility is based on what a business does to receive its income, the character of its ownership, and where the business operates. Hence even those with bad credit may qualify for startup funding.
Normally, businesses must meet size standards, be able to repay, and have a sound business purpose. The lender will provide you with a full list of eligibility requirements for your loan. See www.sba.gov/document/support–table-size-standards.
More About Eligibility for SBA Loans
General eligibility also includes:
- Being a for-profit business – the business must be officially registered and operating legally
- Doing business in the US – the business must be physically located and operating in the US or its territories
- Having vested equity – the owner must have invested their own time or money in the business
- Exhausting other funding options – the business must not be able to get funds from any other financial lender
Ideal credit scores for an SBA loan are 680 or above. There are a number of SBA loan programs, each one designed to work for different needs and situations. Some of the most common SBA loan programs include:
- 7(a) loans
- 504 loans
- Microloans
- Disaster loans
- Express loans
These are just a few the of the options available. Find out more at SBA.gov.
Demolish your funding problems with 27 killer ways to get cash for your business.
Which SBA Loan is Best?
The thing about SBA loans is that they each have a specific purpose. For example, if your business has suffered due to a natural disaster, you need a disaster loan. If you need $50,000 or less, a microloan may be the best option. But the 7(a) loan program is the most versatile.
SBA 7 (a) Loan Program Details
A standard 7(a) loan can be for up to $5 million. The maximum SBA guarantee is 85% for loans up to $150,000 and 75% for loans greater than $150,000. The interest rate varies but cannot exceed the SBA maximum. The turnaround is 5 – 10 business days. These funds can be used for a number of things, and the minimum credit score is 640. But of course the higher the better.
Who Do SBA Loans Work Best For?
These loans work well for those that are not in a hurry to get funding
The approval and funding process can take a while, especially with the government red tape required for the government guarantee. If you can wait, meet all the requirements, and want a more traditional type of loan, SBA loans are an option.
Get a First Time Business Loan with Equipment Financing
Businesses looking to buy or lease equipment can use equipment financing. Rates vary widely depending on risk factors. You usually can get approval with a 650 or better credit score. This is for major equipment only, not a combination of a lot of small equipment. These loans work well for those that have good credit and just need to finance some equipment. The equipment is the collateral, so that helps out some with rates.
Demolish your funding problems with 27 killer ways to get cash for your business.
Get a First Time Business Loan with a Traditional Line of Credit
This is similar to a traditional term loan in terms of where you get it, and approval requirements. However, it is revolving financing more like a credit card. Typically have better interest rates that credit cards. They work well for those who qualify for traditional term loans but want revolving credit rather than a term loan.
Which Types of Small Business Loans are Best for Your Business?
If you know what types of business loans are available to your business, you can make a more educated decision about which types of business loans will work best for you. Knowing what’s out there is only half the battle. You also have to understand your own eligibility and funding needs.
Get a First Time Business Loan: Takeaways
All businesses need funding. Traditional term loans are not the only option. Other options exist to help you money faster. Or funding despite bad credit. And you can better rates and terms than you would get with a traditional term loan.
The post Get Your First Time Business Loan appeared first on Credit Suite.
4 New Work from Home Tips To Get The Funding You Need
There are tons of articles on the internet about how to make working from home work for you. How to run a business from home is a popular topic. You don’t need me to give you more ways to organize your work space or keep yourself out of the fridge. No one needs more work from home tips on how to schedule your day and avoid distractions. There are plenty of places to get those.
I’m going to give you something you can’t in every internet search that includes “work from home” and “tips.” I’m going to tell you how to get the funds you need to run your home based business now, and how to ensure you’re set up properly to get more funds in the future.
Little Known Work from Home Tips To Get the Funding You Need for Your Home Based Business
You may think you can just go to the bank and get a home based business loan just like any other loan. However, you may be wrong. If your personal credit score is really high, it’s possible. Yet, home based businesses do not traditionally bode well with lenders. These work from home tips can help your business appear fundable to lenders. They can help you build your business credit score. Even better, they can point you in the direction of the best funding options for work at home businesses.
Check out our best webinar with its trustworthy list of seven vendors to help you build business credit.
Work from Home Tips #1: Work With a Business Credit Expert
This tip comes before all the other tips because frankly, some of them are almost impossible to pull off without a business credit expert. This is someone who can help you:
- Assess and improve the fundability of your business.
- Guide your toward vendor accounts that will report your consisten, on-time payment to the business credit report agencies and help build your business credit score.
- And help you find the best funding for your business that you can get right now, while you work on building your business credit profile and becoming more fundable.
Work from Home Tips #2: Work on Fundability
Working on fundability is essential. This is a tip for any business, but fundability is something that many home based businesses struggle with. There are many factors that affect fundability. Still, home based businesses struggle with a few specifically more than others.
The thing is, a major aspect of fundability is to appear to lenders to be separate from the owner. They want to see that a business is fundable on its own. For this to happen, the first thing you have to do is set up your business to be separate from you the owner.
The Home Based Business and Fundability Conundrum
What makes this an exceptional issue for home based businesses? Well, it’s no secret that one of the major benefits of working from home is not having to pay for an office space. There is no lease, no extra utilities, you just use the space you already have.
In fact, most home-based businesses are run as sole proprietorships with the same contact information as the owner. Many do not even open a separate business bank account at first. Also, it’s quite common for sole proprietor’s to simply use their social security number rather than using an EIN from the IRS.
While there is nothing wrong with any of this, it does not suit the purpose of separating your business from yourself for fundability. To do that, you need a separate phone number and address for your business. Do not think that means you have to have a separate location. You do not. There are ways to get a business home phone number and even a separate business address and still run your business from home. You also need an EIN and business bank account.
You also really need to incorporate as an S-corp, LLC, or corporation. For fundability purposes, it doesn’t matter which one you choose. Discuss the options with your tax professional and attorney. They can help you determine which one is best for your budget and needs for liability protection.
Work from Home Tips #3: Open Accounts that Report to Your Business Credit Profile
If you set your business up to be fundable, it will also be set up the way it needs to be to establish a business credit profile. This means you can start to build your business credit score separate from your personal credit score.
Here is how it works. You have to open accounts in your business name, using your business contact information and your EIN, not your SSN. The catch is, they need to be accounts that will report to the business credit reporting agencies.
Check out our best webinar with its trustworthy list of seven vendors to help you build business credit.
This is easier said than done, as most vendors do not make it easy for the general public to figure out whether they do this. In fact, many do not report, which makes this particular tip harder. In the beginning, you have to find vendors that will extend credit and report payments without checking your credit. That is, if your personal credit isn’t good.
This is one tip where a business credit expert can be especially helpful. These experts know many vendors that will report. They also know which ones you qualify for an account with right now. Even better, they know how to position you so that you can be eligible for more accounts in the future.
Work from Home Tips #4: Home Based Business Loans
With strong fundability you’ll be able to get pretty much any funding your business could ever need, even if it is a home-based business. However, in the beginning, some loans are going to work better than others. Here are some examples.
Credit Line Hybrid
With the Credit Line Hybrid, you can usually get a loan of 5x the amount of your highest revolving credit limit account, up to $150,000. Honestly, this is more than what you could get on your own when applying for credit cards. Furthermore, you can get cash out on this program.
Also, there is no impact on your personal credit with this type of financing. You need a 680+ credit score, but if you don’t meet that you can take on a credit partner who does. A lot of business owners use the good credit of friends or family to help them get the funding they need.
It does not affect your personal credit score at all. In fact, it can help build your business credit score if your business is set up properly as mentioned above.
401K Financing
Your existing 401(k) or IRA can help fund your business as well. The funds work as collateral for business financing. As a result, your personal credit score isn’t really an issue. This program uses IRS proven strategies. You will pay no tax penalties, and you still earn interest on your 401(k). Even better, rates are low, and this option usually has a quick closing and funding process. If you are currently struggling to fund your home-based business, this is an excellent way to get started.
Check out our best webinar with its trustworthy list of seven vendors to help you build business credit.
SBA 7 (a) Loan
The SBA offers federally funded term loans up to $5 million. The funds can be used for expansion, purchasing equipment, working capital and more. Banks, credit unions, and other specialized institutions process these loans and disburse the funds.
Credit Suite business credit experts can help you with these types of funding and more!
A Business Credit Expert Can Help You With These Tips and So Much More
While there are plenty of work from home benefits, there are also some disadvantages of working from home. If you want to work from home, you have to find a way to overcome these work from home challenges. If you are running your business from home, one of the greatest of these challenges is funding your business. A Credit Suite business credit expert can help.
The post 4 New Work from Home Tips To Get The Funding You Need appeared first on Credit Suite.
Accounts Receivable Financing
Check Out Accounts Receivable Financing
Are you looking for accounts receivable financing? Even though accounts receivable financing is based on receivables – more on that later – it still pays to look at fundability. Plus we are covering similar alternatives today.
This way in case it turns out that accounts receivable financing is off the table for you and your business, you would still be covered.
Fundability
Fundability is the ability of a business to get funding. It essentially covers all the points a lender or credit provider will be looking at when they’re trying to figure out if you’ll pay back a loan or credit extended to you. These include factors you probably haven’t thought about or might think aren’t so important. But they are!
Your Business name
Does your business include the name of a high risk industry? Did you know it could be preventing you from getting funding? It doesn’t have to be this way. You don’t have to include the name of your industry in your business name. There’s nothing deceptive or illegal or otherwise wrong about calling a business Chico’s rather than Chico’s Bail Bonds.
Note: if you change your business name, be sure to change it everywhere. This means you change it in these places, among others: incorporation documents, licenses, and your records with the business CRAs (D&B, Experian, and Equifax)
It’s best to copy/paste this information. Do not chance making an error by typing it by hand. This is because differences will be interpreted as fraud by lenders and credit providers. Keep records of where your business name is, so, you can be sure you’ve caught everything.
NAICS code
You choose your business’s NAICS code. NAICS industry codes define businesses based on the activities in which they are primarily engaged. The NAICS puts out a list of high-risk and high-cash industries. Higher risk industries include casinos, pawn shops, and liquor stores. If more than one code would apply, there is nothing deceptive, illegal, or wrong with using a less risky one.
The IRS, lenders, banks, insurance companies, and business CRAs use NAICS codes. They are trying to determine if your business is in a high-risk industry classification. So, you could get a denial for a loan or a business credit card based on your business classification. Some codes can trigger automatic turn-downs, higher premiums, and reduced credit limits for your business. See naics.com/search.
Demolish your funding problems with 27 killer ways to get cash for your business.
Business Entity type
To get financing or credit for your business you must have a business entity. A corporation or LLC gives you more credibility in many cases. It also helps you reduce your liability. And it separates you from your business. It makes the business a separate legal entity. Make sure your entity is set up in the same state as your business address.
Your EIN
Your business must have a Federal Tax ID number (EIN). Just like you have a Social Security Number, your business has an EIN. Your Tax ID number is used to open a bank account and to build a business credit profile. Take the time to verify all agencies, banks, and trade credit vendors have your business listed with the same Tax ID number.
Your Business Address
Your business address has to be a real brick and mortar building. It must be a deliverable physical address. This should not be a home address or a PO Box. Don’t use UPS mailing addresses. Some lenders will not approve and fund unless this criterion is met.
Your Business Phone Number
A cell or home phone number as your main business line could get you flagged as un-established – but VOIP is okay. Do not give a personal cell phone or residential phone as the business phone number. Your phone number must be listed with 411 for most credit issuers and lenders to approve you. Check your record to see if you’re listed and make sure your information is accurate. No record? Then use ListYourself.net to get a listing. Business phone number should be toll-free (800 exchange or comparable).
Your Business Licensing
Make sure you have the proper licensing for your corporation. And make sure the address on your licenses is the same as all other documents. Contact State, County, and City Government offices, and see if there are any required licenses and permits to operate your type of business. Being licensed also builds credibility in your business, which can help you get more customers.
Your Business Website and Email
You need a company email address for your business. Email must be on the same domain as your website. This usually comes with a website domain provider such as GoDaddy or Host Gator. It is not just professional; it also greatly helps your chances of getting approval from a credit provider. Do not use Yahoo, AOL, Gmail, Hotmail, or similar kinds of email.
Demolish your funding problems with 27 killer ways to get cash for your business.
Accounts Receivable Financing
You can use outstanding account receivables as collateral for financing. Receivables should be with the government or another business. If you also have purchase orders, you can get financing to have those filled. You won’t need to use your cash flow to do so. Get an accounts receivable credit line with rates of less than 1% with no consumer credit requirement. Receivables should be with the government or another business.
Accounts Receivable Financing: Terms and Qualifying
Use your outstanding account receivables for financing. Get as much as 80% of receivables advanced ongoing in less than 24 hours. Remainder of the accounts receivable are released once the invoice is paid in full. Factor rates as low as 1.33%. you can get an accounts receivable credit line with rates of less than 1% with no consumer credit requirement.
For a Similar Kind of Funding, Try Purchase Order Financing
This is advanced to a business with a large purchase order or contract but cannot fulfill it. Lender then loans the funds necessary to complete the order and charges a percentage for the service. Then the company can fulfill its order or contract. The difference between purchase order and accounts receivable financing is:
- Purchase order financing involves a company lending you money to fulfill purchase orders
- Accounts receivable financing involves a company buying your outstanding invoices
Purchase Order Financing: Terms and Qualifying
Terms are for Credit Suite purchase order financing. For approval, lenders will typically review your outstanding purchase orders that need to be filled. If the purchase orders are valid and the suppliers you are dealing with are credible, you can get approval regardless of personal credit history. Rates typically range from 1-4%. In some instances, you can get 95% of your purchase order financed.
Demolish your funding problems with 27 killer ways to get cash for your business.
Consider Cash Flow Financing as Well
A loan made to a company is backed by a company’s expected cash flows. A company’s cash flow is the amount of cash that flows in and out of a business, in a specific period. Cash flow financing (or a cash flow loan) uses generated cash flow as a means to pay back the loan.
Cash Flow Financing: Terms and Qualifying
Often you will need to have a few years in business. You may need to meet a certain minimum credit score requirement. You will need to prove historical cash flow, and present your accounts receivables and accounts payables, so the lender can determine how much to loan to your business.
SBA Seasonal Line
Advances against anticipated inventory and accounts receivables, or in some cases associated increased labor costs. It is meant to help seasonal businesses. It can be revolving or non-revolving.
SBA Seasonal Line: Terms and Qualifying
Get loans to $5 million. Qualification requirements are the same as with other SBA programs. The maximum maturity on this CAPLine loan is 10 years. Holders of at least 20% ownership in the applicant business must guarantee the loan.
For an Alternative to Accounts Receivable Financing, Try Our Credit Line Hybrid
A credit line hybrid is a form of unsecured funding. Our credit line hybrid has an even better interest rate than a secured loan. Get some of the highest loan amounts and credit lines for businesses. Get 0% business credit cards with stated income. These report to business CRAs. You can build business credit at the same time. This will get you access to even more cash with no personal guarantee.
Credit Line Hybrid: Terms and Qualifying
You need a good credit score or a guarantor with good credit to get an approval (a FICO score of at least 680). No financials required. You can often get a loan of five times the amount of current highest revolving credit limit account. This is up to $150,000.
So How Do You Choose?
This is an enormous buffet of business funding choices! But how do you select the one(s) that’s best for your particular situation? This is where our Advisory Team comes in extremely handy. Or help yourself with our Business Credit Builder. It’s your choice. But it all starts with business credit.
Accounts Receivable Financing: Takeaways
There are all sorts of amazing ways to get business funding. Accounts receivable financing and similar funding types are just the tip of the iceberg. You can find the best financing which fits your circumstances, including your strengths in areas like:
- Personal credit
- Collateral or
- Cash flow
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Best Ways to Borrow Money to Start Business Growth and Expansion
When it comes to borrowing money for business growth and expansion, or even to start a business from the beginning, there are many options. So many in fact, that it can become overwhelming. All the ways to borrow money to start business growth, expansion, or from scratch vary. Factors like terms, rates, and amount available all make a difference. What’s the best option for your business?
Which Way to Borrow Money to Start a Business is Best for You
If you are considering borrowing money for business expansion, you need to to think about the following:
- Where to apply for a small business loan
- Terms of business loans
- Business loan rates
What type of business loan is best for you? It depends on a number of factors. First, you have to know what’s available.
Borrow Money to Start Business Growth: SBA Loans
SBA loans are loans with a government guarantee through the Small Business Administration. Participating lenders handle the application process and distribution of the funds. They guarantee up to 85% of loans of $150,000 or less. Loans that are more than $150,000 they will guarantee up to 75%. The maximum loan amount they offer is $5 million.
Due to the government guarantee, financial institutions are able to offer them at lower interest rates.
Find out why so many companies use our proven methods to get business loans.
SBA 504 Loan Program
These loans are also available up to $5 million. You can buy machinery, facilities, or land, making them perfect for borrowing money to start business expansion. They work especially well for commercial real estate purchases .
Terms for 504 Loans range from 10 to 20 years. Funding can take from 30 to 90 days. You need a minimum credit score of 680. Also, collateral is the asset it is financing. There is also a down payment requirement of 10%, which can increase to 15% for a new business.
There is also a requirement you be in business at least 2 years, or that management has equivalent experience if the business is a startup.
7a SBA loan
This program also offers federally funded term loans up to $5 million. You can use the funds for expansion, purchasing equipment, working capital and more.
The minimum credit score to qualify is 620. There is also a downpayment requirement of at least 10% for the purchase of a business, commercial real estate, or equipment. The minimum time in business is 2 years. In the case of startups, business experience equivalent to two years will suffice.
This option is also great for borrowing money to start a business from scratch.
Borrow Money to Start Business Growth: AR Financing
Borrowing against receivables is a way to borrow money to start business growth or expansion as well. Many businesses wait weeks, or even months, to get paid on outstanding invoices. These open invoices are accounts receivable.
It can create major cash flow issues, because they provide their goods and services and absorb those costs until they eventually get paid. Sometimes it can take 90 days or longer to collect.
Of course, there is something to be said for offering better terms to your clients. Allowing them to pay invoices later helps establish with clients. It’s an incentive for them to choose one business over the other.
If you have a lot of these open account receivable, AR financing can be a way to borrow money to start business expansion! You can get the funds in as little as 24 hours.
Monthly rates are between 8% and 12%, and you can get financing as high as $10,000,000. All of this is possible, even with severely challenged personal credit.
Find out why so many companies use our proven methods to get business loans.
Borrow Money to Start Business Growth: SME Loan
An SME loan (Small and Medium Enterprise Loan) is a good option as well. They are generally designed to help those small and medium businesses in underserved areas or with owners from underserved populations.
While interest rates and business loan terms vary, many business owners find luck in obtaining an SME loan to fund expansion or growth.
Borrow Money to Start Business Growth: Credit Line Hybrid
The Credit Line Hybrid allows you to fund your business without putting up collateral. It’s revolving credit, like a credit card or line of credit, so you only pay back what you use.
To qualify, your personal credit score has to 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 4 or less credit inquiries, and you should have less than a 45% balance on all business and personal credit cards. It’s also preferred that you have established business credit as well as personal credit.
If you don’t qualify on your own, 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.
What are the Benefits of a Credit Line Hybrid?
Not only is this unsecured business funding, meaning you do not have to have any collateral, but it is also no-doc. That means you do not have to provide any bank statements or financials.
Also, typical approval is up to 5x that of the highest credit limit on the personal credit report. Furthermore, often you can get interest rates as low as 0% for the first few months, allowing you to put that savings back into your business.
Find out why so many companies use our proven methods to get business loans.
The approval for multiple credit cards creates competition. This makes it easier, and likely even if you handle the credit responsibly, that you can get interest rates lowered and limits raised every few months.
The icing on the proverbial cake is, the Credit Line Hybrid reports to the business credit reporting agencies. That means it can boost your business credit score. The process is pretty fast, especially with a qualified expert to walk you through it.
Use a Business Credit Expert to Help You Borrow Money for Your Business
Did you even know there was such a thing as a business credit expert? There is, and the Credit Suite business credit experts are the best. A business credit expert can help you:
- Find the best loans for your business
- Analyze your overall business fundability
- Walk you through the process of improving findability if needed
- Help you find funding you qualify for now!
- Help you build your business credit profile
Business credit experts are versed in who to call and who to talk to with lenders to find out what they are looking for. They can guide you through the tangled web that is fundability, make sure your business is set up in a way to make you as fundable as possible, and ensure you have every opportunity to get the business funding you need now and in the future.
The post Best Ways to Borrow Money to Start Business Growth and Expansion appeared first on Credit Suite.
The PPP Loan Extension Offers the Gift of Time: Use it Wisely
On March 30, 2021 President Biden extended the PPP loan application deadline for the Paycheck Protection Program. The extension pushes the deadline from March 31, 2021 to May 31, 2021. It includes PPP loans for nonprofits as well. In addition to the PPP loan extension, this also allows for an extension of the SBA PPP processing time to June 30, 2021.
This is a major win for small businesses, as the program’s PPP loan forgiveness provides businesses a way to keep going despite the ongoing economic fallout from the pandemic.
The PPP Loan Extension is a Major Win For Small Businesses in More Ways than One
This serves two purposes. First, it allows more small businesses time to get their PPP loan application completed and turned in. At the same time, it gives the Small Business Administration more time to deal with any technical issues that may pop up with SBA PPP loans funding and processing.
Why Is a PPP Loan Extension Needed?
An extension is necessary to provide more support for businesses while the U.S. population is getting vaccinated for COVID-19 over the coming months.
It will give businesses more time to apply loans. This includes both first-time loans, and even a second draw PPP loan if applicable. The second draw is a second PPP loan available to some businesses that have already received one Paycheck Protection Program loan. Those who have issues with the application process will also be able to spend more time working through those problems.
Other PPP Loan Changes
Other recent changes will help even more applicants. This includes the smallest of small businesses, as well as minority-owned businesses and those located in rural communities. A two-week period in March was set aside only for businesses with fewer than 20 employees to apply.
That time is over, but still helpful is the fact that the administration is also now calculating the loan formula for sole proprietors, independent contractors and self-employed individuals differently. Furthermore, gone are the restrictions that prevent business owners with prior felony convictions not related to fraud, or those who have been delinquent on federal student loans, from receiving assistance.
What Can You Do In the Meantime?
There is no question that the PPP loan program is a savior for many small businesses. Still, the money doesn’t come automatically. What if you need money right now? What if you can’t wait for the sometimes long PPP loan application process? Maybe the PPP loan won’t be enough. How can you supplement it?
Here are some ideas to either bridge the gap or take the place of a PPP loan.
Credit Line Hybrid
The credit line hybrid is business financing that does not require security. It is available to pretty much anyone for any type of business expense. You can use it for real estate, equipment, working capital, and even startup expenses. Furthermore, there is no down payment, and you do not have to provide income documentation. It is completely no-doc financing.
You need to have personal credit of 680 or above, but keep reading if you don’t because there are still options. . Also, there cannot be any late payments in the past 12 months, there can be no open collections or bankruptcies, and there should be less than 4 inquiries in the past 6 months on your consumer credit report. There also have to be at least 2 open credit cards with a $2,000 limit or higher with 2 years of good payment history.
If you do not meet these requirements, including the minimum credit score, you can take on a credit partner who does meet them.
You can get up to $150,000, and often interest rates are as low as 0% for the first 6 to 18 months.
401(k) Financing
The 401K financing program offered by Credit Suite is a flexible and powerful way for a new or existing business or franchise to leverage assets that are in a 401(k) plan or IRA. These are assets which are tied up in stocks.
It doesn’t take long either. In as little as 3 weeks you can actually invest a portion of these funds into your own business. Then, you not only have more control over the performance of your retirement plan assets, but you also have the working capital you need.
This type of program even has the blessing of the IRS. In fact, they have their own name for it. It’s called a Rollover for Business Startups (ROBS).
Do You Qualify for a ROBS?
Surprisingly, this type of financing is pretty easy to get. You do not have to submit financials or have good credit to get approval. In fact, all the lender will ask for is a copy of your two most recent 401(k) statements.
If the plan has a value of more than $35,000, you can get approval. This is true even if you have really bad personal credit. You can get however much of your 401(k) is “rollable.” Sometimes, you can secure a low-interest credit line or loan for 100% of your current 401(k) value.
The plan you use cannot be from a business where you currently work. It will have to be from previous employment. Also, you can’t still be contributing to it.
Business Revenue Lending
If your business has consistent revenue of $120,000 per year or more, you may qualify for business revenue lending. Lenders verify revenue using bank statements. There can be no recent bankruptcies, but the minimum credit score to qualify is as low as 500.
A business must also be in operation for a year or more, and they must do more than 5 small transactions each month to get business revenue financing.
Merchant Cash Advance
If your business accepts credit card payments and you have at least a 500 FICO, you could get up to $750,000 in a merchant cash advance. Credit rates are usually lower compared to traditional financing as well.
There must be $100,000 or more per year in credit card sales, and typically you can get approval equal to one months credit card financing volume.
Account Receivable Financing
Outstanding account receivables can also be a source of funding for your business. Get as much as 80% of receivables advanced in less than 24 hours. You get the rest of the accounts receivable amount once you collect full payment for the invoice. Closing takes 2 weeks or less.
Receivables should be with the government or another business. Getting financing with receivables from individuals is not as easy. If you also have purchase orders, then you can get financing to have those filled. You won’t need to use your cash flow to do so.
Enterprise SBA Loans
For these loans you have to have collateral worth up to at least 50% of the loan amount, but you only need a FICO of 620. There also can be no bankruptcies in the past 4 years. Only for profit companies qualify, and they must have positive trends in sales growth. Generally amounts are available of up to $12 million with terms up to 25-years.
Credit Suite can help you get funding with these options and show some other possibilities.
Use the Time Allowed By the PPP Loan Extension Wisely
Getting funding for your business is not always easy. There is more to it than just applying for a loan. Business credit can get sticky. Having expert help can save you a lot of time and money. While you are waiting for your Paycheck Protection Program loan, consider working with a business credit expert to help you better position your business to access the funding it needs quicker and easier in the future.
A business credit expert can help make the most of the PPP loan extension time. They can work with you to evaluate the fundability of your business. The stronger your fundability, the more likely you are to get funding with the best rates and terms available. You can get a free consultation to help ensure your business is set up properly to build fundability.
An expert can help you evaluate the many factors that affect fundability. There are over 100. With so many factors, it can be hard to figure out where you stand without an expert. They can work with you to figure out where your business falls short and help you improve. Fundability is a tangled web affected by many things, and the time and money saved having an expert walk you through it is extremely valuable.
What Else Can a Business Credit Expert Help With?
They can also walk you through the steps to establishing a business credit profile separate from your personal credit profile. Once that is done, they can help you find accounts that will report to that business credit profile.
This is key, because many vendors do not report. Those that do report, do not make it easy to find out that they do. A business credit expert has relationships with a number of vendors. They can help you find the ones that will successfully help you build your business credit score.
PPP Loan Extension: You Still Have Time
Thanks to the PPP Loan extension that President Biden signed, you still have time to get your PPP loan application in. No matter how fast you act however, some things never change. Especially with the PPP extension on the SBA side, you will likely be waiting a bit for your approval and to actually receive PPP funds.
If you need money right now, try one of these funding options. Then, put to good use the time the Paycheck Protection Program extension allows you. Use it to get in touch with a business credit expert. It’s a great time to start the process of building strong business fundability. The stronger your fundability, the easier it is to fund your business whatever the world throws your way, even a global pandemic.
The post The PPP Loan Extension Offers the Gift of Time: Use it Wisely appeared first on Credit Suite.
Make the Benefits of Working From Home Outweigh the Disadvantages
There are some obvious benefits of working from home. There are also some not so obvious disadvantages. The key is make the most of the benefits of working from home and figure out how to work around the disadvantages.
How to Ensure the Benefits of Working from Home Outweigh the Disadvantages
Many do not realize there are ways to fund your work at home business without using your personal credit. In fact, many would consider difficulty finding funding a formidable disadvantage of working from home running a business.
The truth is, you most definitely can enjoy the benefits of working from home and not have to fund the whole endeavor using your personal credit. You can build business credit even while running a home-based business.
Credit Line Hybrid Financing: Get up to $150,000 in financing so your business can thrive.
Advantages of Working from Home
What are the advantages of running your business out of your home? It’s a hard question to answer. The problem is, what is a benefit to some is a disadvantage for others. Some love the isolation, others miss working with people. Production increases for some people for various reasons. Others struggle to stay focused when working from home.
The close proximity of food is fabulous for some. You can save money and time by simply eating what is in your fridge. Others find it hard to stop eating when working from home. This makes it hard to maintain a healthy weight. Along the same lines, some find it easier to exercise working from home, while others need the commute to or from the office to encourage them to stop by the gym.
That said, one clear advantage of running your business from your house is that you save money. Overhead costs are much lower. You save on building costs. Time and money spent commuting is almost nonexistent. Clothing costs are significantly less as well. Even so, business funding is always a necessity.
Disadvantages of Working from Home
Aside from those already mentioned above that are actually an advantage for some, there are some other clear disadvantages of working from home. First and foremost, it can be difficult to get home based business loans, or even home based business grants. That doesn’t mean funding a home-based business is impossible. You just have to know what to do to make even a home based business more fundable.
How to Increase the Fundability of a Home-Based Business
The number one best way to increase the fundability of your home-based business is to talk to a business credit expert. A consultation like this can be priceless. It’s true, you can take the work from home tips about funding that we are about to offer and execute many of them yourself. However, it will take you twice as long. Furthermore, you may very well miss something.
A business credit expert can help you assess the current fundability of your business. Then, they can walk you through the steps to help you fill in any fundability gaps. Finally, they have relationships with lenders to help ensure you get the best funding possible for your business now.
Credit Line Hybrid Financing: Get up to $150,000 in financing so your business can thrive.
They not only help you start the processes necessary to ensure you are eligible for funding in the future, but also help you find the best funding for your home based business right now.
Is Your Home Based Business Set Up to Be Fundable?
This is likely the number one issue with the fundability of a business run out of your home. Most home business owners set their business up as a sole proprietorship. They use their personal contact information. Typically they do not incorporate, and some do not even open a business bank account.
This seems like the easiest, fastest way to do things. It’s no wonder it is the standard. Still, it is probably the number one reason for the work at home disadvantage of having trouble getting funding. Setting up as a sole proprietor can be detrimental to fundability. For a lender to see your business as a separate, fundability entity apart from you as the owner, you need to do things differently.
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Separate contact information, including a business phone number and a business address that are different from your personal phone number and address.
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An EIN, to use in place of your SSN on business documents and funding applications. You can get one for free from the IRS.
- Incorporate and an LLC, S-corp, or C-corporation. It is necessary to fundability. Also, it lends credence to your business as one that is legitimate. Not to mention it offers some protection from liability.
- Open a separate business bank account. Among other things, it will help you keep track of business finances. It will also help you keep them separate from personal finances for tax purposes.
Best Home Based Business Loans
Fundability, in the simplest terms, is the ability of your business to get funding. If your business is not seen as fundable, then lenders will not help you fund it. Home based business loans will be out of the question.
Not all loans are created equal when it comes to getting money for your home based business however. Some work better than others. Here are some of our top picks for work from home business loans.
Credit Line Hybrid
With the Credit Line Hybrid, you can usually get a loan of 5x the amount of your highest revolving credit limit account, up to $150,000. Honestly, this is more than what you could get on your own when applying for credit cards. Furthermore, you can get cash out on this program.
Also, there is no impact on your personal credit with this type of financing. You need a 680+ credit score, but if you don’t meet that you can take on a credit partner who does. A lot of business owners use the good credit of friends or family to help them get the funding they need.
The best part is, not only does this not affect your personal credit score, it can help build your business credit score if your business is set up properly as mentioned above.
Credit Line Hybrid Financing: Get up to $150,000 in financing so your business can thrive.
401K Financing
Your existing 401(k) or IRA can help fund your business as well. The funds work as collateral for business financing. As a result, your personal credit score isn’t really an issue. This program uses IRS proven strategies. You will pay no tax penalties, and you still earn interest on your 401(k). Even better, rates are low, and this option usually has a quick closing and funding process.
SBA 7 (a) Loan
This is the SBA’s most popular program. The SBA offers federally funded term loans up to $5 million. The funds can be used for expansion, purchasing equipment, working capital and more. Banks, credit unions, and other specialized institutions in partnership with the SBA process these loans and disburse the funds.
Credit Suite business credit experts can help you with these types of funding and more!
Funding Doesn’t Have to Be a Disadvantage of Working from Home
Arguably, business funding is one of the greatest work from home challenges. It can be such a challenge in fact, that it can seem to overshadow many, if not all, of the work from home benefits. With the right expert to walk you through the process, you can be sure that at least this one challenge can be overcome, and the benefits of working from home can tip the scale. You’ll have to keep yourself out of the refrigerator though.
The post Make the Benefits of Working From Home Outweigh the Disadvantages appeared first on Credit Suite.
Commercial Loan for Real Estate Financing
What is a Commercial Loan for Real Estate Financing?
Commercial real estate (CRE) is income-producing property with just business (rather than residential) purposes. Examples include retail malls, professional offices such as for dentists, office buildings and complexes, and auto dealerships. Financing, including the acquisition, development, and construction of these properties, often comes from commercial real estate loans. These are mortgages secured by liens on the commercial property. So this is a commercial loan for real estate financing.
What is a Commercial Loan for Real Estate All About?
Commercial real estate loans are often made to business entities.
These include developers, corporations, limited partnerships, and funds and trusts. These entities are often formed for the specific purpose of owning commercial real estate.
But such a business entity may not have a financial track record or any credit rating. In that case the lender may require the principals or owners of the entity to guarantee the loan.
Hence a person (or group of people) puts their property on the line. In case of loan default, the lender can recover from them.
If the lender does not require this type of guarantee, and the property is the only means of recovery in the event of loan default, this debt is a non-recourse loan. It means the lender has no recourse against anyone or anything other than the property.
What are Typical Commercial Loan Terms for Real Estate?
Unlike residential loans, terms for commercial lending typically range from 5 years (or less) to 20 years. The amortization period is often longer than the term of the loan.
Amortization is an accounting technique. Its use is to periodically lower the book value of a loan or intangible asset over a set period of time.
A lender, for example, might make a commercial loan for a term of eight years, with an amortization period of 30 years. Here, the investor would make payments for eight years, of an amount based on the loan being paid off over 30 years.
Then one final balloon payment of the entire remaining balance on the loan follows.
The length of the loan term and the amortization period affect the rate the lender charges. Depending on the investor’s credit strength, these terms may be negotiable.
But in general, the longer the loan repayment schedule, the higher the interest rate.
Learn business loan secrets and get money for your business.
What are Loan-to-Value Ratios in a Commercial Loan for Real Estate?
LTV is a calculation measuring the value of a loan against the value of the property. A lender calculates LTV by dividing the amount of the loan by the lesser of the property’s appraised value, or its purchase price. For example, the LTV for a $80,000 loan on a $100,000 property would be 80% ($80,000 ÷ $100,000 = 0.8, or 80%).
Borrowers with lower LTVs will qualify for more favorable financing rates than those with higher LTVs. This because they have more equity (i.e., a stake) in the property. It works out to be less risk from the lender’s perspective.
Commercial loan LTVs tend to fall into the 65% to 80% range. While some loans may be made at higher LTVs, they are less common. The specific LTV will often depend upon the loan category
What is Debt-Service Coverage Ratio?
DSCR compares a property’s annual net operating income (NOI), to its annual mortgage debt service. This includes principal and interest. It measures the property’s ability to service its debt. You calculate it by dividing the NOI by the annual debt service.
For example, a property with $150,000 in NOI and $100,000 in annual mortgage debt service, would have a DSCR of 1.5 ($150,000 ÷ $100,000 = 1.5). The ratio helps lenders determine maximum loan size. That has a basis in the cash flow generated by the property.
What Does it Mean to Have a DSCR of Less than One?
A DSCR of less than 1 means a negative cash flow. For example, a DSCR of .93, means there is only enough NOI to cover 93% of annual debt service. In general, commercial lenders look for DSCRs of at least 1.25. This is to ensure adequate cash flow.
A lower DSCR may be okay for loans with shorter amortization periods, and/or properties with stable cash flows. Higher ratios may be required for properties with volatile cash flows. These include, for example, hotels. This is because hotels do not have long-term (i.e., more predictable) tenant leases, which other types of commercial real estate have.
What Sorts of Interest Rates and Fees Do You Typical Pay with Commercial Real Estate Financing?
Interest rates on commercial loans tend to be higher than on residential loans. Commercial real estate loans also often involve fees adding to the overall cost of the loan. These include appraisal, legal, loan application, loan origination, and/or survey fees.
Some costs must be paid up front before loan approval or rejection. Others apply annually. A commercial real estate loan may have restrictions on prepayment. The intention is to preserve the lender’s anticipated yield on a loan.
If investors settle the debt before the loan’s maturity date, chances are good they will have to pay prepayment penalties. See investopedia.com/articles/personal-finance/100314/commercial-real-estate-loans.asp.
Learn business loan secrets and get money for your business.
What are Some Types of Commercial Real Estate Loans?
You can invest in real estate with an SBA 7(a) loan, or an SBA 504 loan. Conventional bank loans are another option, as are hard money loans. Joint venture loans allow parties to share the risk and returns from commercial property investment, without having to formally enter into a real estate partnership.
You can get a commercial mortgage from Freddie Mac, or Fannie Mae. You can try credit unions, or even life insurance companies. Another option is HUD. See stacksource.com/commercial-mortgage-rates.
You can try an online marketplace loan, AKA a soft money loan. Here, interest rates are still higher than conventional bank loans. But they are lower than loans from hard money lenders. For the most part, online marketplaces match borrowers with shorter-term loans. These run from six months to a few years. See fortunebuilders.com/commercial-real-estate-financing-basics.
What Do Most Lenders Look for When Checking if You Qualify for Commercial Loan for Real Estate Financing?
This depends on the lender and the type of financing. What they check can include available collateral, borrower creditworthiness, and certain financial ratios dependent on characteristics of the property.
Borrowers may have to provide several years of financial statements and income tax returns. Lenders may also want to see financial statements indicating cash flow for the property to be financed. See reonomy.com/blog/post/commercial-real-estate-financing.
Check Out a Commercial Loan for Real Estate Financing from Credit Suite
Did you know Credit Suite offers commercial real estate financing? It ranges from $100,000 – $20,000,000. You can use this financing for refinancing a property, even if you are doing a cash-out refinance. Maximum LTV is 70%.
Loan-to-values range from 55 – 65%, depending on the purpose of the loan. Plus your clients can also get SBA loans. Renovations get loan to value of up to 60%.
Credit Suite has funding programs available including conventional property financing, money for investment properties and hard money loans, bridge loans and loans for the purchase of commercial real estate.
Get Commercial Real Estate Financing for All Types of Buildings!
Credit Suite offers financing for many different, even unique property types. Get funding for offices, industrial offices (this includes general or medical/dental), industrial facilities, light manufacturing buildings, and self-storage facilities.
With our commercial real estate financing, you can also get funding for mixed use properties, commercial condos, auto dealerships, light auto services, and day cares.
And you can even get funding for assisted living facilities, entertainment venues, multi-family properties, retail warehouses, and more.
Learn business loan secrets and get money for your business.
Check Out Details on Credit Suite’s Commercial Loan for Real Estate Financing Program
Approval amounts go up to $20,000,000. Bad credit is okay. Use the real estate as collateral. You will need to provide bank statements. A commercial real estate loan is a big step, let’s take it together.
A Commercial Loan for Real Estate Financing: Takeaways
Commercial real estate financing is for buying properties used solely for commercial purposes. Loan terms tend to be shorter than with residential loans. Plus there are added fees such as an appraisal of the property. You can get a commercial real estate loan from the SBA, HUD, conventional lenders, etc. Credit Suite offers a commercial loan for real estate financing for up to $20,000,000. Check out our terms.
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