Business Financing Solutions
If you are like many small business owners who are still using personal credit to finance your business, you may want to rethink your financing strategy. While many small business owners may have trouble getting financing if they’re a new business or have poor credit, financing your company through personal credit can lead to financial disaster down the road.
www.sba.gov
Over 65% of all business owners use credit for
business purchases. But only 50% of those cards
are actually in the business’ name.
When you finance your company via personal credit you are risking a lot by assuming total liability. If your company is ever sued or goes under, you are stuck with the financial burden and may lose personal assets while also severely damaging your personal credit.
Funding Program Cheat Sheet
The funding options available to you and the details of each one
What is Business Credit?
Business credit is credit that is obtained in the name of a business. But one key thing we need to understand about business credit is that it is NOT built on the same credit system as personal credit.
Why Do You Need Business Credit?
Business credit is an important tool for any business and can be extremely useful for obtaining funding and maximizing a business owner’s borrowing power.
Business Credit Approval Details
- Flat fixed interest rates and payments
- Reports to business credit reporting agencies
- Financing is secured requiring no collateral
to qualify - Interest is tax deductible
- Get approved for up to 12% of annual revenue
- Approval amounts range from
$5000 to $150,000
- Close in 1 to 2 weeks
- Consistent revenue for the last 6 months
- FICO score over 500
- No derogatory credit marks within 12
months, no judgments or collections in
unpaid status, and no bankruptcies - Annual gross revenues of $120,000 or more
- 8 – 10 deposits per month
- 30 or more transactions per month
- Been in business 1 year or more
- Loans can be renewed upon 55% pay down
of initial loan - 4-6 months of business bank statements
- 4 months of merchant statements if your
business is accepting credit cards now - Some high risk transactions
require tax returns
Who Are We?
Our Business Credit Development Coaching System has been designed to help business owners establish and grow a business credit profile with the largest providers of business credit information in order to secure new funding opportunities for your business.
Our program was built to help small to medium sized businesses accelerate the process of creating business credit, establishing relationships with trade credit ventures, and gaining access to lending options, all while separating and protecting your personal credit file.
Why Choose Us?
Access to Funding
By establishing Business Credit business can access new funding sources and ensure cash flow.
Secure the Best Financing Options
Most small businesses loan decisions under $90,000 happen automatically, relying only on your business credit file.
The Best Business Credit Terms
For companies with weak business credit scores, banks may increase loan interest rates by 7%.
Peace of Mind
Protect your personal assets and reduce your personal liability by creating a separate corporate entity and business credit.
Features of Our Business Finance Suite
- Access to EIN Business Credit and Loans and Credit Lines
- Hundreds of Business Lenders and Loan Programs
- Largest Supply of Revolving EIN Business Credit Sources
- Credit Monitoring and Scores with Dun Bradstreet and Experian (Powered by Nav)
- Free Experian Smart Business Data
- Credit Profile Setup with D&B, Experian, and Equifax
- Certified Business Credit Advisors and Finance Officers
- Compliance Checklist to Exceed Lender Approval Guidelines
- Underwriting Guidelines for Credit Sources to Know You'll Get Approved Before You Apply
-
Vendor, Store, Fleet and Cash Credit as well as Auto Vehicle Financing for Your EIN that's not
Linked to Your SSN
Business Credit Ratings
Business credit ratings are similar to your personal credit score and are how lenders determine a business’s credit worthiness. Business credit ratings are tracked by several business credit bureaus, including:
- Equifax Business
- Experian Business
- Business Credit USA
But the one credit bureau that holds the most sway over affecting a business’s overall credit score is Dun & Bradstreet, also known as D&B. D&B is the most widely accepted and trusted tracking agency for business credit scores in the United States.
What Business Credit Can Be Used For
Business credit can be used for a variety of things, such as office supplies, marketing material, computers, commercial real estate and other expenses related to running a business. This can be especially useful for start-ups or companies who’s demand is so high that they can’t afford additional supply to meet the demand due to limited cash on hand. Many businesses who have built a solid business credit rating can also rely on business funding in the case of an emergency or temporary decrease in business.
The primary business funding options include the following:
- Commercial Real Estate
- Unsecured Credit
- Private Equity
- Revenue Lending
- Rehab Financing
- Sign Financing
While there may be a number of available financing options available for businesses, it can sometimes be difficult to determine which are best for your business. It can also be difficult to get started and many new business owners run into difficulty getting approved for business financing due to incomplete forms, business information, or because of improperly applying for financing.
For assistance with business credit building, repair, or applying for financing, Credit Absolute can provide assistance throughout the process.
