Tag: business credit

Adding new, updated equipment is often the best way to keeping your small business at the forefront of competition while simultaneously increasing your profits. New equipment can be very expensive though, requiring your company to seek business loan funding. While securing small business financing can be tricky, doing a little research can help you put together the right loan package for your firm. The first step is to determine your loan needs. How much money do you need to borrow? How quickly […]

Every small business will need an infusion of cash at some point. When the need arises, a business loan with a traditional lender generally has the best interest rates and loan terms. It also requires more from borrowers though, including some form of collateral. The bank will examine your business credit as well as your revenue and your company’s financial history. If the lender determines you have enough income to repay the loan, the bank will also ask you to provide collateral – a secondary […]

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 […]

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 […]

Securing a small business loan can sometimes mean the difference between failure and survival for new and growing companies. Yet there are many mistakes some entrepreneurs make when preparing to apply for small business funding. Putting some basic principles into practice will help you avoid those mistakes and be in a better position to get that much needed cash infusion. 1. Safeguard your Credit Both your personal and business credit histories will be important to lenders evaluating your loan […]

Building up a small business often requires lots of capital, and obtaining that capital is much easier when your business has a good credit history. But how do you create a good business credit file if your personal credit is a mess? Here are three important steps that can help you overcome that bad credit hurdle. 1. Create a Business Credit Profile First, separate your business and personal affairs legally turning your business into a corporation or a limited liability company (LLC). This will […]

Building up a small business from scratch can be rough on your credit. There are plenty of times when money may not come in fast enough to cover bills and your personal or business credit can suffer. With bad credit, your sources of business funding can seem to dry up quickly and you may have to think outside of the small business loan box. One way many companies with poor credit meet their working capital needs is with invoice factoring. Invoice factoring means selling your unpaid invoices to […]

Among the more recent additions to the business financing scene is the microloan. Microloans are small loans –typically ranging between $500 and $35,000 – that require less paperwork and have less stringent underwriting standards than traditional small business loans. They do charge slightly higher rates and fees but when only a small amount of cash is required, they can be just the thing to keep a business going. Most microloans are made by nonprofit companies who are interested in helping […]

The rate of approval for small business loans is typically fairly low, with rates among banks, credit unions and other lenders averaging between 20 and 40 percent. That means that far more entrepreneurs hear the word “no” from lenders than those who hear “yes.” While have a loan application rejected can be disappointing, it is even more frustrating to be rejected without knowing why. Many business owners coming away from being turned down for financing without having any idea why they did […]

In some industries, business is conducted with only a few large contracts and a few major clients. One client may make up almost half of a company’s business dealings. While having so few customers can make things simpler, it can also be dangerous if any one of them pulls out of their contract for financial reasons. In order to limit exposure to these kind of catastrophes, business owners can take steps to check out a potential client’s credit-worthiness before signing a contract. Here are the […]