Category: Business Credit

Making a mistake with your business credit can cost you in your credit score for months to years. While the formulas for business credit agencies are not as transparent or consistent as those for personal credit scores, there are still several big no-no’s that will stay on your record the longest. Here are the 3 biggest business credit mistakes you can make: 1. Liens A lien is a legal claim against your company’s property or assets. It is usually the result of vendor or business loan repayment […]

For businesses that have gotten into financial tax trouble, the Internal Revenue Service has a program that can aid business owners in cleaning out their debts and getting back to running their companies. Started in 2013, the IRS Fresh Start program  helps businesses deal with tax liens, make easier payments and even settle their tax debts for less than they owe. Tax liens are government claims on your profits or property due to failure to pay the required taxes. All types of liens will hurt […]

The major credit reporting agencies are being forced this summer to change some of their data collection policies, a move likely to buoy personal credit scores and give small business owners access to more business funding. Because of a 2015 settlement with the New York Attorney General, the three major credit bureaus – Experian, Equifax and TransUnion – are altering some of their policies that will affect the credit scores of millions of Americans. Before the settlement, the big three agencies […]

Starting and growing a small business requires plenty of capital. And yet, without a strong or long business history most lenders are hesitant to loan money to new companies. The result: many fledgling small businesses turn to their credit cards to finance their operations. In fact, the U.S. Small Business Administration reported that 65 percent of small business owners rely on credit cards regularly to provide working capital. The problem with maxing out personal or business credit card to finance […]

Having a good personal credit score can make all the difference in acquiring business funding for small firms. For business owners who are sole proprietors, their personal credit is their lifeline to bank loans, online loans and other forms of business financing. What happens if an entrepreneur has been faithfully making timely payments, keeping debts on credit cards low, and generally practicing good credit behavior but then gets hit with some unexpected medical bills that he’s unable to repay […]

When you apply for a business loan, you may feel like the bank’s approval process is like a black box of secretive decisions. While every lender may have a few unique lending criteria, in general all lenders will take four factors into account when choosing which loans to approve. Cash Flow Lenders are going to decide if your business is worthy of a loan based on the inflow and outflow of cash from your business bank account. The bank will want to see a high average daily balance, a significant […]

Small business in the U.S. are responsible for the creation of two-thirds of the new jobs added to the economy each year. And yet, for these small businesses to continue hiring and growing, finding the business funding can be a challenge. Many big banks and lenders have no interest in making business loans under $250,000 – the cost of underwriting small loans is barely worth the profits on them. In these situations, microloans can be the best solution. A microloan, according to the Small Business […]

When starting a brand-new business, coming up with all the necessary financing can be a challenge. Most banks will not consider startups for small business loans and without a business credit history it can be difficult to get funding from alternative lenders as well. One option for procuring working capital that startup entrepreneurs can consider is bootstrapping by consulting as a side job. Startups often require money for equipment, retail space, employee salaries, or inventory. Taking on a […]

Building up a good business credit score is more important to obtaining business funding than most entrepreneurs realize. In fact, one of the most frequent reasons that small business loans are denied is because of low personal and business credit scores. After establishing a credit profile with business credit agency Dunn & Bradstreet, small business owners should apply for a business credit card and start using it responsibly to start building a good credit report. These cards can provide […]

Small businesses are often in need of substantial capital for one project or another, but small business loans from traditional banks can be difficult to acquire for many firms. There are alternatives that can help companies get the working capital they need, among which are personal loans. Although they carry high fees, there are several situations when they just might save the day. Brand-new Companies It can be very challenging for start-ups to secure funding from banks or other lenders because […]