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Rapid Finance Review

Are you looking for funding from Rapid Advance? They’ve changed their name – so welcome to our Rapid Finance review.

Rapid Advance is one of several lending companies online. They offer short term loans (MCA, also known as merchant cash advances) and more. We look at the specifics and drill down into the details.

Note: due to the COVID-19 health crisis, Rapid Finance is not offering loans at this time. But this lender does not appear to be going out of business.

Rapid Finance Review: Background

Rapid Finance is located online here: https://www.rapidfinance.com/. Their physical address is:

4500 East West Highway
6th Floor
Bethesda, MD 20814.

You can call them at: (800) 664-0173. Their contact page is here: https://www.rapidfinance.com/contact-us/. They have been in business since 2005.

Small Business Term Loans

$5,000 – $1 million is available in funding. The terms are 3 to 60 months. Your business needs to be generating revenue.

You will need to supply a government-issued ID (like a driver’s license), a void check from your business banking account, and the last three statements from your business bank account.

Merchant Cash Advances 

A range of $5,000 – $500,000 is available in funding. 

You will need to supply a government-issued ID (like a driver’s license), a void check from your business banking account, your last three credit card processing statements, and the last three statements from your business bank account.

Bad credit is no problem. 

SBA Loans

$30,000 – $250,000 is available in funding. The terms are 1 to 10 years. 

You will need to supply a government-issued ID (like a driver’s license), a void check from your business banking account, the last three statements from your business bank account, two years of business tax returns, and your schedule of debts.

Rapid Finance also offers bridge loans, lines of credit, asset-based financing, and invoice factoring.

Rapid Finance Review: Advantages

Advantages are a few choices for loan types. The maximum amounts available are high. Rapid Finance has also been in the online lending space for longer than most of the players in this industry.

Rapid Finance Review: Disadvantages

Disadvantages are that the documentation requirements can be a bit extensive. 

An Alternative to Rapid Finance

Why, it’s business credit, of course! Business credit is an asset which can help your small business for years to come.

The Process

Building corporate credit is a process, and it does not happen without effort. A corporation will need to actively work to build business credit. Nevertheless, it can be done easily and quickly, and it is much swifter than establishing consumer credit scores. Merchants are a big part of this process.

Doing the steps out of sequence will cause repetitive denials. Nobody can start at the top with business credit. For example, you can’t start with store or cash credit from your bank. If you do, you’ll get a rejection 100% of the time.

Company Credibility

A small business has to be reliable to loan providers and merchants. As a result, a small business will need a professional-looking web site and email address, with site hosting bought from a vendor like GoDaddy. In addition business phone and fax numbers ought to have a listing on ListYourself.net.

Also the company phone number should be toll-free (800 exchange or the equivalent).

A company will also need a bank account devoted purely to it, and it has to have all of the licenses essential for operation. These licenses all have to be in the correct, appropriate name of the company, with the same company address and telephone numbers. Keep in mind that this means not just state licenses, but potentially also city licenses.

Rapid Finance

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

Working with the IRS

Visit the Internal Revenue Service website and obtain an EIN for the company. They’re totally free. Choose a business entity such as corporation, LLC, etc. A business can get started as a sole proprietor but will more than likely wish to switch to a type of corporation or partnership to decrease risk and optimize tax benefits.

A business entity will matter when it concerns tax obligations and liability in the event of litigation. A sole proprietorship means the entrepreneur is it when it comes to liability and taxes. No one else is responsible.

If you are a sole proprietor at the very least be sure to file for a DBA. If you do not, then your personal name is the same as the corporate name. Therefore, you can end up being directly accountable for all business financial obligations.

Plus, according to the Internal Revenue Service, using this structure there is a 1 in 7 chance of an IRS audit. There is a 1 in 50 chance for corporations! Avoid confusion and significantly reduce the odds of an IRS audit simultaneously.

But you should see any DBA filing as a steppingstone to incorporating, which is best for business credit building. 

Starting the Business Credit Reporting Process

Start at the D&B website and obtain a cost-free DUNS number. A DUNS number is how D&B gets a small business into their system, to generate a PAYDEX score. If there is no DUNS number, then there is no record and no PAYDEX score.

Once in D&B’s system, search Equifax and Experian’s websites for the business. You can do this at https://www.creditsuite.com/reports/. If there is a record with them, check it for correctness and completeness. If there are no records with them, go to the next step in the process. This way, Experian and Equifax will have activity to report on.

Trade Lines

First you ought to establish trade lines that report. This is also referred to as vendor accounts. Then you’ll have an established credit profile, and you’ll get a business credit score.

And with an established business credit profile and score you can start obtaining revolving store and cash credit.

These sorts of accounts often tend to be for the things bought all the time, like shipping boxes, outdoor work wear, ink and toner, and office furniture.

But to start with, what is trade credit? These trade lines are credit issuers who will give you initial credit when you have none now. Terms are normally Net 30, versus revolving.

Hence if you get an approval for $1,000 in vendor credit and use all of it, you will need to pay that money back in a set term, such as within 30 days on a Net 30 account.

Details

Net 30 accounts have to be paid in full within 30 days. 60 accounts must be paid fully within 60 days. Unlike with revolving accounts, you have a set time when you have to pay back what you borrowed or the credit you made use of.

To launch your business credit profile the proper way, you ought to get approval for vendor accounts that report to the business credit reporting bureaus. As soon as that’s done, you can then use the credit.

Then repay what you used, and the account is on report to Dun & Bradstreet, Experian, or Equifax.

Not every vendor can help like true starter credit can. These are vendors that will grant an approval with hardly any effort. You also want them to be reporting to one or more of the big three CRAs: Dun & Bradstreet, Equifax, and Experian.

Revolving Store Credit

Once there are 3 or more vendor trade accounts reporting to at least one of the CRAs, progress to revolving store credit. These are companies such as Office Depot and Staples. These companies are likelier to have products you need.

Use the business’s EIN on these credit applications.

Rapid Finance

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

Fleet Credit

Are there more accounts reporting? Then progress to fleet credit. These are businesses like BP and Conoco. Use this credit to buy fuel, and to repair and maintain vehicles. Make certain to apply using the corporation’s EIN.

Cash Credit

Have you been responsibly managing the credit you’ve gotten up to this point? Then move onto more universal cash credit. These are service providers such as Visa and MasterCard. Keep your SSN off these applications; use your EIN instead.

These are usually MasterCard credit cards. If you have more trade accounts reporting, then these are attainable.

Rapid Finance

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

Monitor Your Business Credit

Know what is happening with your credit. Make sure it is being reported and fix any mistakes ASAP. Get in the practice of checking credit reports. Dig into the specifics, not just the scores.

We can help you monitor business credit at Experian and D&B for 90% less. Update the details if there are mistakes or the info is incomplete.

Disputing Inaccuracies

So, what’s all this monitoring for? It’s to dispute any mistakes in your records. Mistakes in your credit report(s) can be taken care of. But the CRAs often want you to dispute in a particular way.

Disputing credit report inaccuracies typically means you send a paper letter with copies of any proof of payment with it. These are documents like receipts and cancelled checks. Never send the originals. Always mail copies and retain the originals.

Disputing credit report errors also means you specifically itemize any charges you dispute. Make your dispute letter as crystal clear as possible. Be specific about the problems with your report. Use certified mail so that you will have proof that you mailed in your dispute.

A Word about Business Credit Building

Always use credit sensibly! Don’t borrow beyond what you can pay off. Keep an eye on balances and deadlines for repayments. Paying in a timely manner and fully will do more to raise business credit scores than pretty much anything else.

Establishing company credit pays. Good business credit scores help a small business get loans. Your credit issuer knows the small business can pay its debts. They understand the small business is authentic. The small business’s EIN links to high scores, and lenders won’t feel the need to demand a personal guarantee.

Rapid Finance Review: Takeaways

The companies which will do the best with Rapid Finance will tend to have entrepreneurs with decent personal credit scores and a considerable time in business. These companies will also have fairly high annual revenues.

The businesses which might not do so well will have been in business for too short an amount of time, or not have sufficient annual revenues. Companies not needing a lot in funding would probably do better going elsewhere.

And finally, as with every other lending program, whether online or offline, remember to read the fine print and do the math.

Go over the details carefully. And decide whether Rapid Finance will be good for you and your company. In addition, consider alternative financing options that go beyond lending, including building business credit, in order to best decide how to get the money you need to help your business grow.

The post Rapid Finance Review appeared first on Credit Suite.

On the Wings of an Angel: 10 Top Angel Investments You Might Not Have Realized Had Wings

And How to Make Your Business a Top Angel Investment

Angel investors come in all shapes and sizes.  From investment firms to your mom, virtually anyone can swoop in and lift a company up financially.  Some of the top angel investments have become companies that change the world.  Others, though not long lasting, still left their mark. What are some of the top industries angels invest in?  What are some of the most notable investments by top firms?

The top 20 angel investors focus heavily on ecommerce, mobile, and internet. Other than these, healthcare takes most of the rest of the cake.  You’ll see all of this reflected in our list below.  Now, without further ado, our list of top angel investments.

1.      Zogenix

This is the first of four healthcare related companies on our list.  The wings under this one belong to the Life Science Angels. They focus on finding relief for those suffering from rare diseases.

2.      Akebia

This company focuses on therapies for kidney disease and was funded by Queen City Angels.

3.      Vital Therapies

Another medical company, this one’s specialty is finding treatments for those with liver disease. The angel behind this one is Boston Harbor Angels.

4.      TaskRabbit

The first on our list that isn’t healthcare related, TaskRabbit is an innovative company that focuses on helping people get things done around the house.  Rabbits can help mount and install, move and pack, assemble furniture, do the heavy lifting, and handle general home improvement and handyman projects. The angel investment firm that lifted this one up

is Golden Seeds.

5.      NoWait

NoWait is a mobile app for restaurants.  Its purpose and goal is to optimize and streamline house management.  It tracks table turnover, analytics, and even the wait list to help the whole process run smoother for customers and employees in the restaurant business.  These wings were brought to you by Sand Hill Angels.

6.      Localytics

This is a marketing and analytics app that is designed to help those in the marketing industry keep better track of what works, and what doesn’t.  Its angel funds came from New York Angels.

7.      OpenBucks

The brain machine behind OpenBucks saw a definite need and sought to fill it.  There is a large population of people out there than cannot pay for things online because they do not have a bank account or a credit card.  OpenBucks gives these people a way to make online payments through gift cards, and they give merchants a way to accept payments from this population.  TiEAngels has ties to this one.

8.      Docusign

The world was truly changed with the ability to not only send, but also to sign documents electronically.  There is no telling how much time has been saved by the use of Docusign.  Their angel wings belong to Alliance of Angels.

9.      HealthSpot

This is one of those that isn’t around anymore.  They had a strong idea with healthcare kiosks,but it just didn’t catch on.  It changed the world’s view of what medical could and should be however, and for that they earned a place on this list.  The firm known as Blue Tree Allied Angels took a chance on them.

10. DoorDash

Food delivery, both from restaurants and grocery stores, is a fierce industry right now.  Instacart, GrubHub, UberEats, and now DoorDash all want a piece of the pie.  Depending on your region, you may have all of these available, or none of these, or some combination.  DoorDash definitely seems to have a larger slice in many areas, which is why Keith Rabois lent his wings too it.  Now with Founders Fund, Rabois is a former big shot at PayPal and LinkedIn. He now stays closer to education, sports, loyalty programs, and marketplaces.

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This list of top angel investments and industries can be helpful to you, because it can help you determine if an angel investor is right for you.   However, just fitting in to what investors seem to be looking for at the time doesn’t seal the deal.  Attracting angel investors and convincing them to come along for the ride takes more effort than that.

Angel Investor or Venture Capitalist?

What is the difference between the two, and how do you know which one to pitch to? There are a few differences, and knowing them can actually help you decide.

Where the Money Comes From

Venture capital typically comes from a firm that uses a pool of money from various smaller investors.  Angel investors use their own funds, though there are angel investment firms that allow angels to pool their money.  Venture capitalists rarely use personal funds for investments.

Why and When They Invest

While both types of investors expect a profit, angel investors usually expect less.  In the beginning, they are looking more to help the business get started.  Venture capitalists tend to lend toward businesses that are already established.

This means that, while still looking for a profit, angel investors are willing to take on more risk.

Which One is Right for You?

If you are a startup, an angel investor is going to be much more likely to invest than a venture capitalist.  Often, they even come in the form of friends and family. If you do not have friends or family ready to invest, you may need to convince an unknown angel investor that you are destined to be one of their top angel investments.

How to Convince an Angel Investor to Come on Board

While there are never any guarantees, there are some steps you can take that are looked upon favorably by investors.

Hit the jackpot with our best webinar and its trustworthy list of seven vendors who can help you build business credit.

  1. Don’t rush them.

Investing in a business is a huge deal.  It takes time to make such a decision, and you should not ant them to take it lightly. Plan your time table around this so you can give them the time they need without rushing them or stressing yourself out.

  1. Play devil’s advocate.

Of course, you want to show confidence, portraying your belief with certainty that everything will go off without a hitch.  However, one thing many top angel investments have in common is that they plan for the unexpected.  When you present, show potential investors that you have taken the time to consider as many scenarios as possible and have a plan for each.

  1. Be clear with the numbers.

You need to run all the numbers.  Most of your numbers are going to be projections.  You, of course, will have to show what funds you already have, how they are budgeted, and how you plan to budget any future investment funds.

What if Being One of the Top Angel Investments is Not Enough?

Say you land an angel but you still need more.  What are your options?  You can always pitch to more than one angel investor.  Many of the top angel investments have multiple angels. There are other options for small business funding as well.

With startups however, it can be difficult to find funding not attached to your personal credit, which is a major draw of angel investors.  If you have a lower personal credit score, finding funding for your business can be a huge challenge. The better option is to find funding based on your business credit.  The problem then becomes, for startups and some established business, how do you get business credit?

A new business certainly will not have a business credit score, and a business that already exists but has all funding through personal credit will not either.

How to Establish Business Credit Even With Top Angel Investments

The most important thing when establishing business credit is to establish your business as a separate entity.  This is because your business credit is a credit score just for your business.  It is not related to your personal credit score at all.

How do you do that?  It is easiest to start at the very beginning, but if you have already been running your business for a while you can still do it.

Incorporate

It is possible to run a business without incorporating, but you should definitely not skip this.  There is a cost associated with incorporation, but there are a few different options, so you should be able to find a balance between cost and what is actually beneficial to you.

Choose between organizing as a corporation, an S-corp, or a Limited Liability Corporation.  They differ in cost and level of liability protection, but they all function equally when it comes to separating your business from your personal identity.

Get an EIN

Equally as important as incorporation is getting an EIN.  This is an identifying number for your business.  It acts similar to a social security number, but for your business.  Once you have this, there will be no need to associate your SSN with your business for credit application purposes.  Applications will sometimes ask for your SSN as a way to deter identity theft, but if you have an EIN and business credit, your SSN will not be used to determine credit risk or pull your personal credit score in many cases.

Contact Information

Your business will need its own address, phone number, email address, and website.  The address should not be your home address.  The best option is an actual, physical location separate from your own.

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The phone number should be a toll-free number, and it needs to be listed in all the directories under the business name.  As for email address, it should have the same URL as the website, and not be from a free service.  Gmail and Yahoo addresses are not acceptable in this situation.

The website has to look and feel professional.  If you cannot hire someone who knows what they are doing, consider bartering.  A website is a must these days, but one that is poorly made, has grammatical errors, or with broken links is actually just as damaging as not having one, if not more so.

Dun & Bradstreet

There are a few different business credit reporting agencies, but Dun & Bradstreet is by far the largest and most widely used.  They thing is, they require businesses to have their own identifying number, called a DUNS number, in addition to and EIN, before a credit file can be opened.

To get a DUNS number, go to the Dun & Bradstreet website and apply for one.  It’s free, but they will try to sell you other services.  Resist the temptation.  You do not need them, and the number, which you do need, is free.

Open a Business Bank Account

If you have an angel investor, they will likely require this anyway.  Either way, you need a separate bank account to help separate your business from yourself for credit building purposes.  Do not pay personal expenses from this account, though you can pay yourself a salary from it.

Build Business Credit Even with Top Angel Investments

Building business credit is important even if you are able to land a great angel investor.  Once you have your business set up as a separate entity, you can get busy.  On the front end, it can seem impossible.  After all, you have to have credit to get credit, right?

angel investors credit suite

Essentially, this is true, but there are some vendors, we call them “starter vendors,” that will extend net 30 terms on invoices and report those payments to the credit reporting agencies.  These starter vendors are part of the vendor credit tier, and they do not check your credit score.

They may require you to make a few initial purchases or be in business for a minimum amount of time before they will extend net terms, but once you have those terms, you credit building will begin.  Just be sure to make the payments!  They will report it if you do not pay also, which has the opposite effect of course.

You can also request that your landlord and utilities report payments.  They do not have to, but some will if you ask.  The more accounts you have reporting on-time payments, the faster your business credit will grow.

Learn from the Top Angel Investments

What do all top angel investments have in common?  Someone believed in them.  While this has everything to do with your brilliant business idea and ability to execute, having a great start on business credit helps a ton.  If an angel investor can see that you are able to continue operations with or without their funds, they are going to want in even more. Set up your pitch, find the angel investor, and get started building business credit now so your business has nowhere to go but up.

 

 

 

The post On the Wings of an Angel: 10 Top Angel Investments You Might Not Have Realized Had Wings appeared first on Credit Suite.

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