now browsing by author
Your Credit Record Can Have Errors
Either a personal or a business credit record can have errors in it. There are all sorts of reasons why you or your business would not be able to get funding. Correcting mistakes is one way to make it easier for your business to get money.
Let’s look at errors in public records.
Correcting a Credit Record Means Enhancing Fundability
But what’s fundability? Fundability is the ability of a business to get funding. This is everything from getting credit to business loans. Because every business needs money, it quite literally pays to enhance your fundability whenever and wherever you can.
Public Records Matter to Your Credit Record
In addition to how well your business pays its bills, and your personal credit score, and whether your industry is felt to be a risky one, there’s the matter of public records.
Public records include bankruptcy (both personal and business), liens, judgments, and UCC filings. Errors in any of these kinds of public records will affect fundability, so correcting such mistakes will enhance your ability to get cash for your business.
Bankruptcy on a Credit Record
Bankruptcy is a process a business goes through in federal court. The idea is to help a business eliminate or repay its debt under the guidance and protection of the bankruptcy court. Business bankruptcies are often liquidations or reorganizations. This depends on the type of bankruptcy an entrepreneur takes.
3 Types of Business Bankruptcy
There are three kinds of business bankruptcy. They are Chapter 7, Chapter 11, and Chapter 13. These types depend on organizational structure. See thebalancesmb.com/what-is-business-bankruptcy-393017.
Chapter 7 and Chapter 11
Corporations are legal business entities separate from their owners. They are more truly separate than partnerships. But in the event of a bankruptcy, either type of structure commonly will file of Chapter 7 (bankruptcy protection), or Chapter 11 (reorganization). The chapters refer to the US Bankruptcy Code.
Chapter 7: Liquidation
This one may be the best choice when the business has no viable future. It is often used when the debts of the business are so overwhelming that restructuring them is not feasible. Chapter 7 bankruptcy can be used for sole proprietorships, partnerships, or corporations. It is also appropriate when the business does not have any substantial assets. To read the full text of Chapter 7, go here: law.cornell.edu/uscode/text/11/chapter-7.
Chapter 7 Details
Before a Chapter 7 bankruptcy gets approval, the applicant is subject to a “means” test. If their income is over a certain level, their application does not get approval. But if a Chapter 7 bankruptcy gets approval, the business is dissolved.
In a Chapter 7 bankruptcy, a trustee is appointed by the bankruptcy court. The trustee’s job is to take possession of the assets of the business and distribute them among all of the creditors.
The order in which creditors are paid can depend on the type of debt (secured vs. unsecured). Collateral is what you use to secure a debt. With no collateral, a debt is unsecured. As a result, those types of debts are further down the line when it comes to decided who will be paid in a bankruptcy.
After the distribution of the assets and paying the trustee, a sole proprietor gets a “discharge” at the end of the case. It means that the owner of the business is released from any obligation for the debts. But partnerships and corporations do not receive a discharge.
Chapter 11: Business Reorganization
Chapter 11 may be a better choice for businesses with a realistic chance to turn it all around. It is often used for partnerships and corporations. It can also be used by sole proprietorships if their income level is too high to qualify for Chapter 13 bankruptcy. For the full text of Chapter 11 go to: cornell.edu/uscode/text/11/chapter-11.
Chapter 11 Details
Chapter 11 is a plan where a company reorganizes and continues in business under a court-appointed trustee. The company files a detailed plan of reorganization. Such a plan explains how it will deal with its creditors. The company can terminate contracts and leases, recover assets, and repay some of its debts, while discharging others to return to profitability.
The business presents the plan to its creditors who will vote on the plan. If the court finds the plan is fair and equitable, it will approve it. Reorganization plans provide for payments to creditors over some time. Chapter 11 bankruptcies are rather complex and not all of them succeed. It usually takes over a year to confirm a plan.
Chapter 11 and the Small Business Reorganization Act of 2019
The Small Business Reorganization Act of 2019 enacted a new subchapter V of Chapter 11. This subchapter of Chapter 11 seems to favor the side of the applicant for business bankruptcy. But it only applies if the applicant wants it to apply. See cornell.edu/uscode/text/11/chapter-11/subchapter-V.
For example, subchapter V does not require that a committee of creditors be appointed, or that creditors have to approve a court plan.
Per the U.S. Department of Justice, the act: “imposes shorter deadlines for completing the bankruptcy process, allows for greater flexibility in negotiating restructuring plans with creditors, and provides for a private trustee who will work with the small business debtor and its creditors to facilitate the development of a consensual plan of reorganization.” See justice.gov/opa/pr/us-trustee-program-ready-implement-small-business-reorganization-act-2019.
Chapter 13: Adjustment of Debts for Individuals with Regular Income
Chapter 13 bankruptcy is a form of bankruptcy for individuals. Since a sole proprietorship is an extension of its one owner, the owner is responsible for all assets and liabilities of the firm. It is most common for a sole proprietorship to take bankruptcy via Chapter 13. This is a reorganization bankruptcy. For the full text of Chapter 13, go to: law.cornell.edu/uscode/text/11/chapter-13.
Chapter 13 Details
Use Chapter 13 small businesses when a reorganization is the goal instead of liquidation. The entrepreneur files a repayment plan with the bankruptcy court. This details how they will repay their debts. Note: Chapter 13 and Chapter 7 bankruptcies are very different for businesses.
Chapter 13 is vital for individuals whose personal assets are tied up with their business assets, because they can avoid problems like losing a home if they file Chapter 13 versus Chapter 7. Chapter 13 lets a business stay in business and pay its debts. But Chapter 7 does not.
Chapters 12 and 15
There are two other forms of individual bankruptcy. These are less common. Chapter 12 is bankruptcy protection for family farmers and family fisherman. See uscourts.gov/services-forms/bankruptcy/bankruptcy-basics/chapter-12-bankruptcy-basics.
Chapter 15 is bankruptcy protection when a bankruptcy matter involves people from another country. See uscourts.gov/services-forms/bankruptcy/bankruptcy-basics/chapter-15-bankruptcy-basics.
Correcting Bankruptcy Errors
In general, to correct bankruptcy issues, all you or your lawyer will need to do is file an amendment to your bankruptcy petition. These can be errors like forgetting to list an item of property. Or it can be disclosing an incorrect property value or forgetting a creditor or income from a side business. See alllaw.com/articles/nolo/bankruptcy/bankruptcy-petition-mistake.html.
Liens in a Credit Record
What’s a lien?
Per Investopedia: “A lien is a claim or legal right against assets that are typically used as collateral to satisfy a debt. A lien could be established by a creditor or a legal judgement. A lien serves to guarantee an underlying obligation, such as the repayment of a loan. If the underlying obligation is not satisfied, the creditor may be able to seize the asset that is the subject of the lien. There are many types of liens that are used to secure assets.”
Errors in Liens
Some of the worst errors when it comes to liens can involve real estate if using land to secure a debt. Minor or typographical errors are called Scrivener’s errors. You can often correct them by rerecording the deed of trust or by recording an instrument explaining and correcting the error. But you cannot cure more substantial errors except by a Reformation lawsuit. This type of lawsuit asks a court to correct the deed of trust to reflect the parties’ intent.
Legal Judgments in a Credit Record
Businesses of all sizes can be on the defense end of a lawsuit. Lawsuits can be for everything from a customer slipping on ice in your parking lot to a supplier suing to get you to pay them.
The main ways you can lose in court are if you default at the start and never answer a summons and complaint. Or you could lose a motion for summary judgment brought by the other side. Another way to lose is to lose a bench or jury trial. Or you could exhaust all appeals and end up on the losing end.
If you or your business lose in court, then a judgment may be entered against you. Judgments generally take the form of paying damages, which is money. Or the judgment could be for specific performance where you’re required to do (or not do) something. Another option is an injunction is entered and you may be prevented from doing something. A civil judgment can’t send you to jail. That’s criminal, which is rather different.
Errors in Legal Judgments
Errors often take the form of a judgment entered against the wrong person and/or company, or a typo in the amount of money damages listed in the court’s records. Or the judgment is entered but it’s already been satisfied (paid). Another kind of error is fraud or other misrepresentation on the part of one of the parties. Plus there could be excusable neglect. For example, a city recovering from a major hurricane might not make the proper clerical entry of judgments a priority.
Correcting these errors can take several forms. Different states have differing rules. But every state wants their records to be correct. They just have different ways you need to go about correcting the record.
Correcting Errors in Legal Judgments
You or your lawyer will need to look up how to correct mistakes in a legal judgment in your state (or the District of Columbia or a US territory, like Puerto Rico).
For example, in Massachusetts, you or your lawyer will need to make a motion before the court under Rule 60(a). See mass.gov/rules-of-civil-procedure/civil-procedure-rule-60-relief-from-judgment-or-order. But in Texas, you or your lawyer would need to file a motion for judgment nunc pro tunc. This is a motion to correct the judgment. See texaslawhelp.org/article/correcting-clerical-error-court-order-answers-common-questions#toc-9.
In Georgia, correcting a judgment comes under the general umbrella of relief from judgments. See law.justia.com/codes/georgia/2010/title-9/chapter-11/article-7/9-11-60. In Louisiana, it falls under an Amendment of Judgment, and you can fix calculation or language errors ia motion. See law.justia.com/codes/louisiana/2015/code-codeofcivilprocedure/ccp-1951/.
Like with most things, the faster you work to correct a legal judgment, the less it will cost you. In particular if the wrong person (you) is the defendant, acting as quickly as possible will save you in legal fees. Ignoring these problems will not make them go away.
UCC Filings in a Credit Record
When you secure a loan with property, creditors can tell other creditors about any of your assets in use as collateral for the secured transaction. UCC liens filed with Secretary of State offices act as a creditor’s public notice of their interest in the property.
It’s in a creditor’s best interests to check for UCC filings. This is so they can make sure they’re the only creditor with a claim on that collateral.
Errors in UCC Filings
Like anything else, there can be typographical errors in UCC filings. But the law says that, unless the errors “make the financing statement seriously misleading”, the UCC filing is still in effect. Are you depending on a typo to get out of a UCC filing? You might want to rethink that strategy. See law.cornell.edu/ucc/9/9-506.
Correcting Errors in UCC Filings
For the most part, unless the errors are seriously misleading, the UCC says you don’t have to fix them. This is because of the policy behind the law governing secured transactions under the UCC. Essentially, financing statements exist to provide notice of a transaction. And they are also meant to give enough information to later potential creditors that the debtor’s property may be covered by an earlier creditor’s security interest.
Hence, a financing statement exists as a starting point in a later creditor’s due diligence process, not the conclusion. See jdsupra.com/legalnews/it-may-be-foul-but-there-is-no-harm-not-11403/.
Correcting the Public Document Errors in Your Credit Record: Takeaways
Your personal credit record can directly impact your business credit record. Both need to be right. And correct records are more likely to get your business money.
It’s possible to fix errors in public documents like judgments and UCC filings. But the mechanism for doing so will differ. This depends on the error, the type of record, and the jurisdiction. The more quickly you act, the better and cheaper it will be for you. Ignoring these mistakes will not make them go away. Correcting mistakes can make your business more fundable.
For more information on fundability and getting business credit, contact us today.
Whether you care to admit it or not, the decisions you make today will be driven by your emotions. In emotional marketing, we talk a lot about using psychological triggers to get customers to click, convert, engage, etc.
“By leveraging common psychological triggers all people have,” you might hear, “you can drive more sales.”
While it may feel like we make decisions with our minds, using logic and reasoning, the “mental triggers” we hear about are tied more to emotion than anything else.
Case in point, Antonio Damasio spent time studying individuals with damage to the area of the brain where emotions were generated and processed.
While these subjects functioned just like anyone else, they couldn’t feel emotion.
The other thing they had in common was they all had trouble with making decisions.
Even simple decisions about what to eat proved difficult.
While they could describe what they should be doing using logic and reason, most decisions couldn’t be settled with simple rationale.
Without emotion, they weren’t able to make a choice.
This is supported by data from Gerard Zaltman, author of “How Customers Think: Essential Insights into the Mind of the Market.”
Zaltman found that 95% of cognition happens beyond our conscious brain, instead coming from our subconscious, emotional brain.
Emotions are an X factor you can’t control, but you can’t afford to ignore them in your content marketing.
Why is Emotion Marketing so Effective?
When you make an emotional connection with your audience, it’s incredibly easy to steer them to the desired outcome.
You’ve formed an emotional bond, however brief and fleeting, that makes them open to ideas and suggestions. It creates a certain level of trust that’s virtually impossible to artificially manifest.
Rob Walker and Joshua Glen found firsthand what an emotional connection can do.
In one experiment, they bought hundreds of items from thrift stores and similar locations — all cheaply priced.
The duo wanted to see if they could sell the products using an emotional connection through the power of stories alone.
With 200 writers on board, they generated fictional stories for the products and used those stories to sell the thrift store items at auction on eBay.
They raised just under $8,000, which was a profit of approximately 2,700%.
And they did it all using that emotional connection through storytelling.
That’s not to say there isn’t a place for the logical or the rational in decision making.
This is where marketers often leverage the theory of dual processing in psychological marketing.
The theory holds that the brain processes thoughts and decisions on two levels.
The first level is that of emotion, which processes automatically, unconsciously, and provides a rapid response when we need it with virtually no effort.
The second level is the more deliberate and conscious thought process, where we handle decisions with reason and logic. It happens far slower than the emotional response.
In most cases, we fire back with a ready response from our emotions and then try to consciously rationalize it.
Think about some big-brand rivalries and preferences will surface in your mind.
How do you feel when you look at this major brand comparison?
Here’s another common one that has people divided, sometimes within the same family:
And then there’s this brand rivalry we know all too well.
In each of these, you likely have an opinion almost instantly about which you prefer, but it’s not because you have a logical reason.
It’s typically tied to emotion and/or experience; how you feel using their products, or how the brands left you feeling after an experience or reading a news article.
The brain then tries to rationalize that emotional response.
For example, your emotional response goes straight to Coke and then your brain works to rationalize the decision by deciding that it tastes better in a can, it’s fizzier, has a stronger bite than Pepsi, etc.
So, while you might feel like you’re making a rational choice about your beverage, it’s really just an emotional one.
The most successful marketers know how to lean on the emotional over logic in order to make their content draw in the audience.
That’s why nearly a third of marketers report significant profit gains when running emotional campaigns, but the number of successful campaigns dips if you introduce logic into the marketing.
And those results get sliced in half when marketers switch to logic over emotion.
Emotion Marketing Doesn’t Guarantee Successful Engagement
We experience a laundry list of emotions every day.
Is it really as simple as leveraging some emotion to make content more effective?
Yes and no.
Emotion is certainly important, but there are also other factors like timing, exposure, the format of the content, how it’s presented, who produced or shared it, etc.
Despite understanding the role emotion plays in content, we still haven’t quite perfected a formula for what makes content go viral.
Though we’ve gotten pretty close.
Brands have long tried to inflate the consumer’s emotional response through manufactured content; some met with great success.
The videos profile a person around the world who uses Intel’s technology to create new experiences and build new technology that makes a difference in the world.
Like 13-year-old Shubham Banerrjee, who used Intel’s technology to build an affordable Braille printer.
And of course, some companies try to leverage emotion and create viral campaigns that just don’t take off.
CIO reported a number of failed viral marketing campaigns, such as “Walmarting Across America.”
In this blog, two average Americans travel across the country visiting Walmart locations, reporting their interactions on a blog along the way.
After countless upbeat entries about how people loved working for the company, it was discovered that the trip was paid for by Walmart and the entire thing was a campaign created and managed by the company’s PR firm.
That didn’t receive a warm reception from the blogosphere, which deemed the content to be a “flog” or fake blog.
Which Emotions Attract the Most Marketing Engagement in Content?
Many emotions fuel our behaviors and our decisions, especially our purchase decisions.
Some more than others — especially when they’re authentic.
A study was done by Buzzsumo analyzing the top 10,000 most-shared articles on the web. Those articles were then mapped to emotions to see which emotions had the greatest influence on content.
The most popular:
- Awe (25%)
- Laughter (17%)
- Amusement (15%)
Conversely, the least popular were sadness and anger, totaling just 7% of the content that was most shared.
Two researchers at Wharton also wanted to dig deeper into virally shared content to find commonalities and better understand what makes that content spread.
What they found was the emotional element, and some very specific results tied to emotions.
- Content is far more likely to be shared when it makes people feel good or it creates positive feelings such as leaving them entertained.
- Facts or data that shock people or leave them in awe were more likely to be shared.
- Instilling fear or anxiety pushes engagement higher, from comments being posted to content being shared.
- People most commonly shared content that incited anger, leaving comments as well.
While some emotions are more likely to engage than others, every audience is different. What drives one to action may do very little for another.
This modern adaptation of Robert Plutchik’s Wheel of Emotion, illustrated by CopyPress, shows the range under eight primary emotions: joy, trust, fear, surprise, sadness, disgust, anger, and anticipation.
For content to be widely shared and have an impact on your audience, it needs to leverage one or more of these emotions.
The proof is on the web, not only in the statistics I shared above, but also in the popularity of user communities that regularly share content.
Just look at Reddit and some of the most popular subreddits by subscriber count. Each can be tied back to emotions (some more obviously than others) like anticipation, awe, joy, and more.
Here’s how some of those emotions can play into the engagement with your audience:
Anxiety May Cause Uncertainty For Customers
You don’t want your audience to make bad decisions. Bad decisions can lead to buyer’s remorse, which can paint your brand and the overall experience in a negative light.
But it can be helpful if you leave the audience a bit more open to influence.
A Berkeley study revealed that anxiety can be linked to difficulty in using information around us to make decisions. When we experience uncertainty, it becomes harder to make decisions and our judgment is clouded.
Still, anxiety can also spur people to act as a result of that uncertainty.
Take a two-year study by Wharton Ph.D. student Alison Wood Brooks and a Harvard Business School professor.
They found that upon increasing the anxiety of certain subjects with video footage, 90% of the “anxious” participants opted to seek advice and were more likely to take it.
Only 72% of the participants in a neutral state, who viewed a different video, sought advice.
Capture the Focus of Your Emotional Marketing Audience With Awe
Awe is comparable to wonder, but it doesn’t always fall under the umbrella of joy or humor.
It’s intended to captivate the audience and keep them riveted.
You often see this kind of hook in headlines that seem so earth-shatteringly significant that no one in their right mind would want to miss it.
Here’s a good example of that kind of awe used in content when Dropbox first launched.
Co-founder Drew Houston submitted his product to the website Digg, hoping to get some visibility from the social bookmarking site. That headline helped significantly.
Another great example of using Awe to capture attention is a video produced by Texas Armoring Corporation.
To emphasize the quality of the company’s bullet-resistant glass, the CEO crouched behind one of TAC’s glass panels while several rounds were fired at it from an AK-47.
Awe can impact decision making as much as anxiety.
A study from Stanford University found that people experiencing awe are more focused on the present and less distracted by other things in life. They also tend to be more giving of their time.
When you have their attention and their focus, they’re more likely to have time to rationalize a decision.
Drive People to Action With Laughter and Joy Through Emotional Marketing
While joy and laughter can have their lines blurred, they’re really two different emotions when it comes to your content.
Because while laughter often leads to joy, not everything that is joyful is laugh-out-loud funny.
Still, next to awe, joy, laughter, and amusement were the highest contributors to social sharing and engagement in the above studies.
That influence goes all the way back to early childhood.
As babies, out first emotional action not long after being born is to respond to the smile of our parents with our own smile.
Per psychoanalyst Donald Winnicott, joy and amusement are hardwired into us from birth.
His studies tell us that our innate desire for joy increases when it’s shared. That’s the nature of the “social smile.”
That explains why these feelings or emotions are such huge drivers behind the virality of content. Happiness, overall, is a huge driver for content sharing.
In fact, Jonah Berger’s study of the most-shared articles in the New York Times (around 7,000 articles) revealed the same kind of results around emotion.
The more positive the article, the more likely it was to go viral.
Brands have worked “joy marketing” into their strategies for decades, aiming to make their audience feel warm, comfortable, and happy.
That’s the intent of campaigns like P&G’s highly successful and viral “Thank You, Mom” campaigns that are injected with a lot of emotion (especially joy) when celebrating the strength of mothers.
Joy can take a lot of forms, though, and it doesn’t have to be commercially intended to elicit a direct sale.
Look at what Beringer Vineyards did with influencer marketing.
Russian Instagram sensations Murad and Nataly Osmann built a following of more than 4.5 million people with photos featuring them holding hands at locations around the globe during their world travels.
They attached the hashtag #FollowMeTo on those posts.
The couple teamed up with Beringer Vineyards to create some images meant to inspire joy, love, and of course the sense of adventure the couple already shared with their hashtag.
Immediate Gains in Emotional Marketing From Anger
Anger may be perceived as a negative emotion by some, but it can have positive influences as well as positive outcomes when leveraged in the right way.
A leading researcher in the study of anger, Dr. Carol Tavris, draws a parallel between anger and how it impacted society over the years.
Women’s suffrage, for example, developed from anger and frustration.
Anger can be empowering for the individual, bringing a sense of clarity and positive-forward momentum. It gives people a feeling of direction and control according to a study from Carnegie Mellon.
In the previously mentioned study on content shares in the New York Times, negatively perceived emotions like anger are equally associated with the virality of content.
In fact, Berger’s study of the New York Times content found that content which incites feelings of frustration or anger is 34% more likely to be featured on the Time’s most emailed list than the average article.
Now, I’m not suggesting that you deliberately create controversy by taking shots at readers or picking fights.
The key with using anger in content is to frame an issue that incites anger or frustration in a way that’s constructive.
You have to be thought-provoking and engaging.
This interactive graph from the New York Times is an example of how content can lead to frustration and anger over economic or societal issues.
This piece of content is simple, yet it provokes engagement as well as thought when results are revealed in comparison to what an individual perceives to be the truth.
Using the Right Emotional Marketing Words in Content
The difference between logic and emotion in content comes down to the words we use and how we position statements and information.
When creating copy and content, you have to be acutely aware of whether you’re taking a rational or emotional approach to the information you’re sharing.
You need to think about the response you want to elicit to help guide your content development to make the right kind of psychological and emotional connection with your audience.
The context of your copy can remain the same.
By changing the words you use, however, you can make content appeal more to the emotions of the audience and prospective customer.
The simplest approach to finding the right high-emotion words takes only three steps:
- Think about the action you want your audience to take when they read your content.
- Decide what kind of emotional state will drive that action. What would make them do what you want them to do?
- Choose emotionally persuasive words appropriate to the action and the emotion.
What you’ll find in researching the right words is that emotionally persuasive and impactful words tend to be abrupt. It’s the short, concise, basic words that appeal most to our emotions over our intellect.
Just look at this list from the Persuasion Revolution.
The majority of this emotionally weighted list (and there are over 350 items) is made up of shorter words.
The rational mind, on the other hand, tends to associate with longer and more complex words.
You Can’t Assume When it Comes to Emotional Marketing
It’s not easy to make that emotional connection with your audience. You have to know them.
Like anything else in marketing, your decisions and the content you create needs to be based on data. In this case, that data is your audience research.
That same research that tells you what topics to create, where your audience spends their time, and the content they prefer to view, can clue you into how to make that emotional connection.
You just need to expand your buyer personas.
In this case, you want to build up the psychological profile of your audience. You can achieve this by asking the right questions to help steer your content research and production.
- What do they find humorous?
- What are the pain points that frustrate them?
- What topics make them angry?
- What are common problems they speak about?
- What kind of content is being shared that clearly pleases them or brings joy?
Your research could turn up a common topic or theme that appears frequently in the content they read and share.
For example, you might discover that a certain segment or demographic in your audience has a strong affinity to family values, or health and wellness.
Turn that into a content campaign that shares the feel-good side of your company.
Delve into the family life of your employees, how your company supports the work/life balance, or better health initiatives.
Google is well known for its company structure, promoting flexible schedules, support of family time, personal projects, and a focus on work/life balance.
The company often shares behind-the-scenes images (visual content) showing off employees enjoying what they do. Here’s an example from Google Sydney’s offices:
That can influence a positive emotional response toward the brand when targeted segments see that content.
Emotional Marketing Works in the B2B Process
Don’t get caught up with the dated idea that emotion is only applicable to consumer-focused businesses.
Emotional marketing has its place in the B2B world as well.
You may be dealing with a longer buying process between one or more organizations, but the decisions are still made (and fueled by) people who are absolutely driven by emotion.
That includes emotions like:
- Awe: over what a solution is capable of and feeling empowered to bring that solution to the workplace.
- Anticipation: in finding a piece of the puzzle in a product or service that will help the company achieve its next goal or milestone.
- Fear: in purchase decisions that could reflect on the individual, resulting in a personal risk associated with a B2B purchase.
- Joy: in knowing that a B2B purchase is likely to lead to a positive outcome that will reflect positively on the individual.
Emotion absolutely influences B2B purchases, and in some cases, emotion matters even more than logic and reason.
You hold a great deal of influence with your audience when you’re able to tap into their emotions.
Once you understand your audience, you can better determine their emotional state.
From there, make the decision about whether you need to influence and exploit emotions that are already present, or if you want to create or give rise to emotions the audience wasn’t initially expecting or experiencing.
Even the most (seemingly) rational decisions are influenced by emotion — and that applies to everyone.
When you learn how to leverage that emotion in your content, you will see increases in engagement, social action, and conversions within your funnel.
How do you use emotion in your content and copy?
The post How Using Emotional Marketing in Content Can Help Drive Way More Sales appeared first on Neil Patel.
Here you can see 2 toilet paper seeds, in their natural habitat, these are the best quality and are guaranteed to produce 3 ply paper for years to come if cultivated properly.<br>
The Best Funding For Women Owned Businesses
We scoured the internet for the very best funding for women owned businesses. There are a number of fantastic choices which women can make use of today.
Funding for Women Owned Businesses: Collateral-Based Financing
Collateral-based financing offers low rate financing. Personal credit quality and profits don’t determine your approval. Some accepted collateral includes:
- Account receivables and purchase orders
- 401k, IRA, stocks, and bonds
The idea behind collateral-based funding is that a lender needs an assurance. For the creditor, a great assurance that you will pay back funding is when your property is at risk if you don’t.
Funding for Women Owned Businesses: Cash Flow and Unsecured Financing
Cash flow financing is another great loan program for women, if you’ve been in business one year or more and have $10,000 in monthly revenue.
Unsecured financing is readily available for female small business owners, for up to $150,000. You can get an approval if you have good personal credit, and get 0% intro rates for 6-18 months … even as a startup.
Funding for Women Owned Businesses: The Small Business Administration
The SBA offers some terrific loan programs including their 7( a) loan for working capital. To get approved you’ll have to have:.
- 3 years of company and personal tax returns
- Good personal, business, and bank credit
- Collateral for 50-70% of what you’re borrowing
The SBA Express program is a great loan program for women. You can get approved for a loan up to $350,000. Get rates of 4.5-6.5%. Get a line-of-credit good for 7 years. No collateral is required for up to $25,000. There is a turn-around in 36 hours.
SBA’s Women’s Business Centers
They can help you get access to capital. See: https://www.sba.gov/tools/local-assistance/wbc
Funding for Women Owned Businesses: Veteran Women Igniting the Spirit of Entrepreneurship (V-WISE)
For women who are also military veterans, the Veterans Women Igniting the Spirit of Entrepreneurship (V-WISE) is an SBA funded program offered by the Institute for Veterans and Military Families which includes online training, a conference that utilizes the unique team spirit of women veterans and female military spouses, and follow-on mentoring through a community of partners.
Funding for Women Owned Businesses: Amber Grants
$1,000 to a different women-owned business each month. At the end of the year, one of the monthly grant winners gets $10,000 more. See: https://ambergrantsforwomen.com/get-an-amber-grant/
Funding for Women Owned Businesses: Alternative Lenders
If you have decent personal credit and tax returns for 2 years that show a profit, alternative lenders have programs that could work. You could be approved with rates of 7% or lower. Lenders will need to see some kind of profit on your tax returns.
There’s also business credit building!
Learn more here and get started toward building business credit.
Funding for Women Owned Businesses: Small Business Credit Building
Business credit is credit in a company’s name. It doesn’t attach to an entrepreneur’s consumer credit, not even if the owner is a sole proprietor and the only employee of the company.
Accordingly, a business owner’s business and personal credit scores can be very different.
Considering that company credit is distinct from individual, it helps to secure a business owner’s personal assets, in the event of court action or business insolvency.
Also, with two distinct credit scores, an entrepreneur can get two different cards from the same merchant. This effectively doubles purchasing power.
Another benefit is that even startup companies can do this. Heading to a bank for a business loan can be a recipe for frustration. But building business credit, when done properly, is a plan for success.
Individual credit scores rely on payments but also various other considerations like credit usage percentages.
But for small business credit, the scores actually merely hinge on if a company pays its bills promptly. It is a terrific source of funding for women owned businesses.
Growing small business credit is a process, and it does not occur automatically. A business has to proactively work to establish company credit.
Nonetheless, it can be done easily and quickly, and it is much speedier than developing individual credit scores.
Vendors are a big aspect of this process.
Carrying out the steps out of order will cause repetitive rejections. Nobody can start at the top with small business credit. For instance, you can’t start with retail or cash credit from your bank. If you do, you’ll get a denial 100% of the time.
A small business needs to be fundable to lenders and merchants.
Hence, a company will need a professional-looking website and email address. And it needs to have website hosting from a merchant like GoDaddy.
And also, business telephone and fax numbers need to have a listing on ListYourself.net.
Also, the company phone number should be toll-free (800 exchange or similar).
A business will also need a bank account devoted solely to it, and it must have every one of the licenses essential for running.
These licenses all must be in the correct, appropriate name of the company. And they must have the same small business address and telephone numbers.
So keep in mind, that this means not just state licenses, but potentially also city licenses.
Learn more here and get started toward building business credit.
Dealing with the IRS
Visit the IRS website and get an EIN for the small business. They’re free of charge. Pick a business entity like corporation, LLC, etc.
A business can start off as a sole proprietor. But they will more than likely want to change to a form of corporation or an LLC.
This is in order to decrease risk. And it will make best use of tax benefits.
A business entity will matter when it involves tax obligations and liability in case of a lawsuit. A sole proprietorship means the owner is it when it comes to liability and taxes. No one else is responsible.
Sole Proprietors Take Note
If you operate a business as a sole proprietor, then at least be sure to file for a DBA. This is ‘doing business as’ status.
If you do not, then your personal name is the same as the company name. Because of this, you can wind up being directly accountable for all small business financial obligations.
Plus, per the IRS, by having this structure there is a 1 in 7 chance of an IRS audit. There is a 1 in 50 probability for corporations! Prevent confusion and noticeably decrease the odds of an IRS audit as well.
Kicking Off the Business Credit Reporting Process
Start at the D&B website and obtain a totally free D-U-N-S number. A D-U-N-S number is how D&B gets a business into their system, to produce a PAYDEX score. If there is no D-U-N-S number, then there is no record and no PAYDEX score.
Once in D&B’s system, search Equifax and Experian’s sites for the company. You can do this at 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.
Vendor Credit Tier
First you must build trade lines that report. This is also called the vendor credit tier. 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 to get credit in the retail and cash credit tiers.
These kinds of accounts often tend to be for the things bought all the time, like marketing materials, shipping boxes, outdoor work wear, ink and toner, and office furniture.
But first off, what is trade credit? These trade lines are credit issuers who will give you starter credit when you have none now. Terms are in most cases Net 30, instead of revolving.
So, if you get approval for $1,000 in vendor credit and use all of it, you need to pay that money back in a set term, like within 30 days on a Net 30 account.
Net 30 accounts must be paid in full within 30 days. 60 accounts need to be paid fully within 60 days. In contrast to 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 properly, you ought to get approval for vendor accounts that report to the business credit reporting agencies. Once 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.
Vendor Credit Tier – It Helps
Not every vendor can help in the same way true starter credit can. These are merchants that will grant an approval with minimal effort. You also want them to be reporting to one or more of the big three CRAs: Dun & Bradstreet, Equifax, and Experian.
You want 5 to 8 of these to move onto the next step, which is the retail credit tier. But you may have to apply more than one time to these vendors. So, this is to demonstrate you are dependable and will pay promptly. Here are some stellar choices from us: https://www.creditsuite.com/blog/5-vendor-accounts-that-build-your-business-credit/
Retail Credit Tier
Once there are 5 to 8 or more vendor trade accounts reporting to at least one of the CRAs, then progress to the retail credit tier. These are service providers which include Office Depot and Staples.
Just use your SSN and date of birth on these applications for verification purposes. For credit checks and guarantees, use the business’s EIN on these credit applications.
One example is Lowe’s. They report to D&B, Equifax and Business Experian. They need to see a D-U-N-S and a PAYDEX score of 78 or more.
Fleet Credit Tier
Are there 8 to 10 accounts reporting? Then move to the fleet credit tier. These are companies like BP and Conoco. Use this credit to buy fuel, and to repair, and maintain vehicles. Just use your Social Security Number and date of birth on these applications for verification purposes. For credit checks and guarantees, make certain to apply using the small business’s EIN.
One such example is Shell. They report to D&B and Business Experian. They want to see a PAYDEX Score of 78 or more and a 411 small business telephone listing.
Shell may say they want a certain amount of time in business or profits. But if you already have adequate vendor accounts, that won’t be necessary. And you can still get an approval.
Learn more here and get started toward building business credit.
Cash Credit Tier
Have you been responsibly handling the credit you’ve up to this point? Then progress to the cash credit tier. These are service providers like Visa and MasterCard. Only use your Social Security Number and date of birth on these applications for verification purposes. For credit checks and guarantees, use your EIN instead.
One example is the Fuelman MasterCard. They report to D&B and Equifax Business. They want to see a PAYDEX Score of 78 or higher. And they also want you to have 10 trade lines reporting on your D&B report.
Plus, they want to see a $10,000 high credit limit reporting on your D&B report (other account reporting).
In addition, they want you to have an established small business.
These are companies such as Walmart and Dell, and also Home Depot, BP, and Racetrac. These are usually MasterCard credit cards. If you have 14 trade accounts reporting, then these are in reach.
Monitor Your Business Credit
Know what is happening with your credit. Make sure it is being reported and deal with any inaccuracies as soon as possible. Get in the habit of taking a look at credit reports and digging into the details, and not just the scores.
We can help you monitor business credit at Experian and D&B for 90% less than it would cost you at the CRAs. See: www.creditsuite.com/monitoring.
At Equifax, you can monitor your account at: www.equifax.com/business/business-credit-monitor-small-business. Equifax will cost about $19.99.
Update Your Data
Update the information if there are inaccuracies or the info is incomplete.
Fix Your Business Credit
So, what’s all this monitoring for? It’s to contest any mistakes in your records. Mistakes in your credit report(s) can be fixed. But the CRAs generally want you to dispute in a particular way.
Disputing credit report errors commonly means you send a paper letter with copies of any proofs of payment with it. These are documents like receipts and cancelled checks. Never send the original copies. Always send copies and keep the originals.
Fixing credit report errors also means you precisely detail any charges you contest. Make your dispute letter as understandable as possible. Be specific about the issues with your report. Use certified mail so that you will have proof that you mailed in your dispute.
A Word about Building Business Credit
Always use credit smartly! Never borrow beyond what you can pay off. Keep track of balances and deadlines for payments. Paying off on time and fully will do more to boost business credit scores than pretty much anything else.
Growing company credit pays. Excellent business credit scores help a small business get loans. Your lending institution knows the company can pay its financial obligations. They know the business is for real.
The small business’s EIN connects to high scores and lenders won’t feel the need to call for a personal guarantee.
Funding for Women Owned Businesses: Takeaways
Get creative and grab the best funding for women owned businesses around!