Tag: business credit

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 […]

The following are four of the best ways to strengthen your credit profile in order to get your firm the funding it needs

Asset-based loans have traditionally been considered last-ditch financing options for business owners. Yet in today’s changing financial climate, there may be some circumstances when asset-based loans can provide great benefits. What is an Asset-Based Loan? An asset-based loan is business financing that is secured with the company’s assets. These can be collateral in the form of tangibles like machinery and equipment or inventory, but it can also include accounts receivable or securities. […]

The biggest challenge most small businesses face is access to capital. Small businesses need lots of cash to get off the ground, to grow and to expand. It is hard enough for most business owners to get a loan from their local bank, but for some it is almost impossible. These are the “credit invisibles,” according to a recent survey from the Consumer Financial Protection Bureau. The report found that there “that there are 26 million adults in the United States without a credit record. This […]

Starting up a new business venture is often requires a lot of cash, sometimes even more than you can pull together from savings and your home equity. After you have tapped friends and family, a funding gap can still remain. Small business loans can make up that shortfall at affordable rates and terms. Yet banks and credit unions have been especially careful with their small business loans since the Great Recession, requiring impeccable credit records. Start-ups and fledgling firms typically do […]

Having the necessary cash on hand for day-to-day operations is key to the success of any small business. It can be a fine balance to keep enough working capital in between the time you pay suppliers and the time you are paid by your customers. Here are a few ways to make sure your business has the cash flow it needs to run smoothly. Detailed Forecasting Managing your working capital starts with having an accurate picture of your cash flow requirements. It is important to take into account the […]

Small businesses looking for working capital often have to look to many sources to find all they need. One possible solution for cash-strapped companied could be a merchant cash advance loan. With these loans, borrowers can receive a lump sum of money, which is then repaid from future credit card sales. While a cash advance loan can be very helpful, entrepreneurs need to consider all the risks as well. PROS Easy to Qualify Merchant cash advance loan credit standards are very minimal. Businesses […]

There are plenty of ways to give your credit score a pick-me-up, but focusing on correcting these three will help you get back into the credit shape that will make your business more attractive to banks.

After evaluating your small business from the perspective of a prospective lender, you should be much better prepared and confident to ask for the financing you need.