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How Commercial Real Estate Investing Courses Help for Investors?

Do you currently have a commercial real estate investment plan in your portfolio? While the stock market continues to show significant volatility, and less risky asset classes such as treasuries offer little to no return on investment, commercial real estate continues to provide an excellent risk/reward profile to investors. Here are some of the benefits of investing in commercial real estate.

1. Secured Assets

One of the main advantages of Commercial Real Estate Investments is that assets are typically secured by leases that provide a daily income stream, far higher than average stock yields. Tap for a comparison of stock dividends and economic dividends (otherwise known as capitalization rates).

2. Accumulation Of Equity

Another significant advantage of commercial property investment is the opportunity to put leverage on the asset, which is many times the actual equity. This helps you to purchase more properties with less capital and dramatically raise your investment as loans are disbursed.

3. Excellent Appreciation

Historically, Commercial Real Estate Investments received unique value appreciation that equals and exceeds other investment forms. Properties will generally rise in value through internal factors such as constructive leadership–making cost-effective property changes that enhance asset usability and desirability, and external influences like supply and demand imbalances.

4. Cashflow

Anyone who questions “why is real estate relevant” would look at the value of stable, long-term cash flow. Although other properties only benefit when purchased and rented, real estate is an opportunity to produce rental income every month.

5. Potential Revenue

Commercial real estate’s competitiveness makes it quite an enticing investment vehicle. According to a recent report, commercial real estate will pay in returns above 10%. The same study showed that stocks pay just three percent annually. Here, you also need to know that Commercial Real Estate Investing Courses Helps Investors to gauge out the profitable ways to invest in the same.

Commercial Vs. Residential Real Estate – Which One Is The Best?

The most noticeable distinction between commercial vs. residential real estate is the viability of each purchase. Commercial buildings tend to be much bigger assets, contain more occupants, and can produce higher income. It also suggests, though, that commercial real estate can need more capital and experience before beginning. The below points to summarize the basic features of commercial property investment.

Commercial Real Estate Investment In A Nutshell

It requires larger investments.

Potential to yield more substantial profits.

Requires more capital and expertise

An investor should have specialized knowledge of property history, estimated revenue, and so on.

Commercial real estate investment needs extensive research.

Beginner investors are not unusual to lean on residential property and make their way on a commercial investment. Residential approaches can also generate large profit margins that creditors can use to create their surplus resources for transformation to commercial land. That said, confident investors will automatically consider commercial property success.

How Commercial Real Estate Investing Courses Helps Investors?

As you are already familiar, investing in commercial real estate is not as easy as pie. That is when the wrong decision can wreck it all. So, it’s always a better idea to understand and acquire knowledge about the various tools and techniques required to invest in commercial properties successfully, here, Commercial Real Estate Investing Courses Helps Investors to invest in a lucrative way.

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What is Real Estate Investment Education?

For many, investment in property is an unknown terrain. Except for stocks and bonds sometimes called “traditional assets”— to date. Most of the time, people consider it an alternative asset. Typically costly, and difficult to access and afford.

Knowing that investing in real estate can be an unexpected investment option. It does not mean ignoring it. When properly approached;

Real estate can deliver a profitable and reliable way to produce significant

It can build a steady income stream

Provides unique benefits to your portfolio

Increase in growth opportunities, portfolio diversification, and tax benefits

These benefits can grow with the help of real estate investment education.

Real Estate Investment Training To Tackle The Challenges

Most real estate investors face many challenges. Particularly when they begin their career. Therefore, it is profitable to go for real estate investment training. So that you will be able to tackle the challenges. Let’s first see what are the challenges?

You will need a huge stock of information.

It consumes a lot of time.

Needs business intelligence and insights.

Difficult to find out the right measurement tool.

Although these aren’t all the obstacles you’d face at the beginning. When you kickstart your real estate investment career. They make up most of the reasons, most people leave before they even start.

Can Real Estate Investment Courses Help You?

Of course, yes. If you wish to learn the basics of investing in property and want to know how to analyze investment opportunities as professional investors do. You need to take our real estate investment course.

We can’t promise to help you get rich, own a ship, or two Bentleys. But we can show you some serious property investment research techniques. Once you complete the course; you would be able to understand and recognize the things below.

#1. Recognize the key principles of real-estate investment

#2.  Recognize professional real-estate investment approaches and techniques

#3. Test investment opportunities confidently

#4. Obtain skilled investment models

Summing Up

The best of all is that you will learn all these skills in no time. Our team of expert trainers will support you all around. While ensuring that you understand all the concepts quite easily.

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How is real estate investment training advantageous for investors?

In modern times, online education is becoming more important and more popular. And when we talk about real estate investment, online training is no far from the one who wants it. if you choose the right course, you are able there to reach your goal. Real estate investment training online is one of the best ways to get acquainted with what goes in the market. It tells you about the best ways to invest more constructively. So let start the discuss how all you get by going with this option.

Experienced instructors welcome you to the world of real estate and share their knowledge with you. And because they are experts in the stream, you are sure to get the needed information through them. The availability of these courses on the internet is very common and you can hence easily access the course online anytime. The courses provide you with a lot of capabilities and knowledge that you would not have otherwise possessed. From audio libraries to download, you meet real professional teachers to guide you. Moreover, you get habitual in the world of real estate investment.

For those who wish to make a considerable rise in their wealth, real estate investment is the right option. It is safer than stocks and you are most likely to benefit through it. The online course trains you better than what several other options can give you. If you really want to be a professional real estate investor, such a course is just for you. Real estate investment training online has several other advantages like options to choose from different packages. This lets you make a choice as per your requirements.

It can be seen from past results that people have successfully gone far beyond the basics. They sharpened their skills and deepened their financial know-how. They could learn to apply their knowledge to the real world out there. And all this has been made possible due to the resources made available by the course providers online. It’s been due to their advanced education systems. So plan, choose and join the best online course ever.

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How to Invest in Real Estates – Few simple steps to get started

Everyone wishes for an increased income and ways to maximize their wealth so that they could live a secured, comfortable and dignified life; who doesn’t? And did you know that this can be done through various investment options. Real estate is the best one among many other investment options like gold, bonds, and mutual funds.

Real estate can be a useful and tangible option for you to make profits whether you buy a house for reselling or rent it out. The best kind of real estate investment is when you invest in residential housing properties that produce income the whole year-round.

The most attractive advantage in investing in real estate is all the tax breaks you get, and for all this, all you need is to have some form of education in real estate through various classes, training, and courses.

Here are some elements of real estate investment that you ought to know about before you dive into it –

Appreciation –

The most common way you get your profits from a real estate investment is when its value rises over time, which is called an Appreciation. Appreciation depends on various conditions that can increase or decrease the appreciation of which you can only know about at the time of reselling.

Rentals –

If you can buy a housing property and can keep a year-round rent-paying party into it, you can make heaps of money out of your investments.

Location –

The location might be the most prime part of real estate investment. When you buy a house in an area where over the time schools, grocery stores, transportation routes, hospitals are added up, that increases the appreciation points of your bought up the property.

In fact, the location might be the biggest factor to up your appreciation points, the more good-looking the neighborhood, the higher the resale value of your property goes.

Undeveloped Land –

If done carefully the investments in an undeveloped land can yield great resale value inducing results. The best kind of investment in undeveloped land is right outside a city limit where it is a given the city will expand and will develop into a more valuable asset since developers are sure to buy it off of you.

Timing –

Timing is another important factor in real estate investments since selling your property on a regular day is very much different from selling your property on some special occasions and events. In the days of some festive celebration, you can sell a high number of properties you bought whereas on regular days you might have to work your feet off to sell just one.

So there it is, these were some points to remember about how to get into real estate investments and what to remember about it. When comparing to investments in golds, bonds, and mutual funds, real estate is much more secure, controllable and tangible in making profits for you with only a few simple points to remember.

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What is “House Flipping” and how to make profits from it?

In real estate, it is generally seen that the value of a property rises with time. And for this reason, often real estate investors buy houses, usually through auction, and then at a later date sell that house off for a profit. Therefore, in the same line, you can make profits/huge profits, in the same way. But could you also lose everything while trying to do this on your own? Disturbingly, yes!

House flipping refers to buying a house and then reselling it for a profit after a time. However, the process is not easy. An often you have to spend an amount on the renovation of the house and in that the amount you had spent on buying the house effectively increases. There may be instances when you buy a house for, say, 120,000USD and then put in another 30,000USD extra for its renovation and then wait for a buyer to sell it; and have to wait for long? Often you might get very little profit for such hard work and investments.

The offer price for your property is important for the success of any rehab house. Securing a purchase price which is right can influence the profit investors significantly and one can make an amazing deal.

The investors who are hoping for securing a property will not be required to undermine the existing sellers. Choose the right purchase pricing for your after repair value and make a good offer on your house property.

The main objective of house flipping in real estate is making a profit and making it quickly as possible. A good investor knows that the real estate market can only turn on the dime. The different factors can best assist in decreasing the value of property dramatically. This includes,

Increase in the interest rates

Change in seasons   

Increase in the inventory and lot more.

That is why you must understand the risks involved in the process of house flipping before you decide to jump into the business. And if you have learned the risks of this process then let’s see what the requirements you must have to have any chance in house flipping are.

A Great Credit Score –

If you have to buy a house you got to have some mighty great credit score so that banks can lend you the buying amount. If you don’t have a good credit score then you might not be able to secure the desired loan amount.

The right location –

Buying the house to be flipped in the right location is the next most important requirement. If the house that you have bought is not in the right location with all the necessary amenities nearby, then you’ll not be able to secure good profits. And again if you plan to buy a house in a very posh area, then you might not be able to manage enough resources to complete the transaction.

Right Renovations –

You must renovate a house that you have bought, to entice the buyer. Keep an amount to not spend too much on renovating. Remember, you need a house that only demands some quick updates and not the whole makeover process.

Cash –

In case, you need cash for securing the transaction then you must have enough cash to not only buy a house but also present it to potential buyers in a good shape.

Market Value –

Here is a simple thing to remember – try to buy the worst looking house in a good neighborhood instead of the best looking house in a bad neighborhood. The market value of your bought up house MUST stay below the local market value.

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5 reasons NOW is a great time to invest in Real Estate

Everyone wants to make it big and quick, for a fast, lavish and luxurious life you need some hefty wad of money and real estate investment is the way to go there.

No wait – wait, we know when the recession hit us a few years back it made investing in real estate a very harrowing imagination. But now is a very different story from a few years back, thanks to the same recession anyone who has financial resources and means to buy into real estate is going to make a ton of profit.

Why? Here are five reasons that prove why “now is a great time to invest in real estate”–

1. Mortgage interest rates are now low –

Yes indeed, these days the mortgage rates on your bought up property is going to be an all-time low, with such a low maintenance rates on what you buy, things are going to go smoother for a real estate investor and buyer.

2. Bigger amount of recent foreclosures –

Many of the former home owners are now displaced thanks to foreclosures which mean the market is high with people who want to rent into a property which makes it profitable of real estate investors to buy into rental properties!

3. Everyone prefers houses than apartments –

There is a stigma attached to finding apartments as a home, people prefer to stay in houses instead of apartments. They tend to see living in apartments going backwards in life and many are those who have lived in houses before so there is also an added perk by which people tend to take care of their rented housing properties the same way they used to tend their homes. That also makes it a factor to invest into real estate.

4. Tenants prefer private landlords –

There is another stigma related to having a landlord, which is easy to understand that people usually prefer having a person as a landlord instead of some real estate company. It makes them having the rented home feel more secure since only the landlord has the other set of keys but also it drives a strange sense of buying the rented house from the same landlord someday which makes sense since real estate investors also wants to sell his or her old property as soon as possible.

5. Real Estate Prices are low –

Go outside your house and you can confirm this on your own that real estate prices to buy properties are on a low end of the stream. This makes buying some nice property to renovate and flipping it over easier.

So there you are folks, these were the five reasons why NOW is a great time to buy off some real estate property and either put it up for a year-round rental cycle or sell it off using few amounts of cash in buying and renovating the property. We hope that this small article helped you in some way.

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Different Types of Real Estate Investments

Investing in real estate is always a right decision, as it is a safe and profitable investment compared to other mode of investment like mutual funds, bond and stocks. It acts as a long-term investment and helps in generating income of passive nature in terms of value appreciation and income of active nature in terms of rental. If the value of your real estate property that you have purchased gets increased over the period, then it can be an amazing thing for you.

Investing in real estate property is a major step that adds on to your wealth. It can be a worthy investment for an innumerable number of reasons. One can enjoy excellent returns, the benefit of taxes and can leverage the real estate for building wealth.

Some of the reasons prove that real estate is worthy investments as,

1. Better returns

2. Secure investment

3. Offers more control

However, there are 4 different types of real estate investments available and you can make a worthy investment in any of them or all. This list includes,

1. Residential real estate investment

These residential properties can include nuclear family houses, multi-family houses, condos, townhouses, and mobile homes. All of these properties can best help in generating investment returns in various ways.

To say, you can buy a multi-family house and can keep it until its value increases in the market. You can even rent it out and can wait for value for increasing. Similarly, many investors invest in a multi-unit property where they live in one unit and rent out all others for making good profit every month.

2. Industrial or commercial real estate investment

Such properties include the buildings which are used by companies for warehousing, manufacturing or for distribution of the final product. Many people also run their offices in such properties. Most of the investors of industrial real estate are highly skilled and holds high-end investment portfolios.

The buildings in which they all invest are expensive, huge and tenant’s requirements can change frequently. However, savvy investors are also aware of various types of returns that these commercial properties generate.

They yield good returns with longer leases only. Their turnover rates are very low. This means, that you don’t have to find new tenants now and then even when the business shuts down.

3. Real estate investment in land

Of course, the properties require need land for standing on. Buying land can turn out one of the best investment strategies which can produce great returns. However, buying a raw land doesn’t help you earn passive income unless you buy farmland.

Investing in land can be a bit risky investment. Apart from paying taxes on the property that is not generating income, you also sometimes need to deal with the zoning issues, environmental problems, utilities access and much more.

However, if you invest in the land that is placed in a popular location, then it can pay you off great profit in the coming future.

4. Investing in newly constructed property

Investing in newly constructed property can help you fetch great profits. It is because the rates of the property when it getting constructed are a bit low. You must make an investment at the right time, which means when it is getting constructed and not when it is completed.

You can invest even in a new launch condo that can offer you great returns on every investment. These properties are called the one which has a high value of assets It never gets decreased over time.

So make an ideal choice today and invest in the right real estate property that can help you yield good returns.

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Essential Real Estate Investing Tips To Be Successful Real Estate Investors

Essential Real Estate Investing Tips To Be Successful Real Estate Investors

Investment has always got a risk factor associated with it. But if one takes a well-informed decision, investment can be very profitable. The investor should have proper information about the area of investments and the tricks involved before making the investments to make profit. We have gathered few necessary real estate investing tips below to help you with your real estate investing journey. Whether you’re a beginner in real estate investing or already a pro, this article can offer you some great tips.

Handle your Real Estate investments as a business

Real estate investment is like a business and similar to all other businesses it needs focused planning, execution, as well as proper management. Like a business, you have to keep constant supervision and track of the market environment, demand and supply situation and opportunity to grow profit & etc.

Set a budget and timeline, but be ready for worse

You should set aside 50% additional of your set budget as reserves, particularly if you are a new investor. Your budget most of the time goes higher than expected and when you’re rehabbing properties, one small problem can discover another one and so on. If you have set your timeline to be 60 days, get ready for the project to take up to 90 days. With additional operating cost, the timeline also extends.

Invest in Single Family rentals

If you are just starting out, then single family houses are your safest option to attract the ideal tenant. The single family houses traditionally have over the last hundred plus years constantly appreciated in value. Diversify your investments

Do not limit your profitability potential by only investing a small geographic area or a particular sector. It is always better to diversify your investments by considering investments in other states and cities or investing in different areas of real estates. Diversifying your investments protects your portfolio against the volatility of local markets.

Budget stabilization funds

If you are buying rental houses for cash flow, ensure you account for all of the operating expenses and have reserve funds set aside for future expenses. It is extremely important to keep a reserve in place to cover up unexpected expenditures, cause you never know when they will hit.

Invest with multiple exit strategy

You should never buy a real estate property without having different exit strategies. If you’re a new investor and starting out or don’t have extra capital for emergencies, you must tone down your risk factors by buying assets that have good enough numbers to be a rental property as well.

Conclusion:

With these investment tips and real estate investment education through courses, classes and training, you can make your real estate investment profitable. Here, EB Professional offers real estate investment training, classes and courses to provide you required real estate investment education for profitable investment for existing investors. EB Professionals also offers trainings, courses and classes for real estate investment for beginners. Happy and profitable investment.

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How real estate investment can be a way to wealth and prosperity?

Everybody wants to increase their income and to maximize their wealth to lead a comfortable, secure and dignified life. This is possible through various profitable investment options. Let us discuss below how real estate investment can be more profitable & secured vis-à-vis gold, bond, and stocks.

Real estate Investment is one of the secured investments compared to other investment options like stocks, bonds, gold, and mutual funds. Real Estate can be a tangible and usable asset, whether you’re buying an apartment or home to rent it out or sell it later. The best kind of real estate investment is investing in residential properties that produce rental income year-round. The most attractive advantage of real estate investing is getting various tax breaks for your investment.

Elements of Real Estate investment:

Appreciation:

The most common way a real estate provides a profit is that it increases in value over time, this is called Appreciation. Appreciation occurs in different ways for different kinds of properties. This can only be realized at the time of selling the property. Besides, real estate can also earn some income through rentals. The appreciation of a real estate can be maximized if you follow the below-mentioned points.

Location:

Location is often the biggest factor in the appreciation of residential or commercial properties. When the neighborhood around a property evolves, adding transit routes, playgrounds, schools, shopping centers, and so on, then the significance of that property improves and ultimately the worth go up too. The appreciation value of a home or apartment can also be improved by putting in an extra bathroom, heating a garage, and remodeling a kitchen with modern appliances.

Undeveloped Land:

Undeveloped Land Investment can also yield huge profits if done carefully. The best type of Raw Land investments is investing in the Undeveloped Lands outside big cities. As these cities expand, land just outside the cities develops into more and more valuable assets because of the potential for it to be acquired by developers.

Advantages of Real Estate Investment Compare to other investment methods:

Invest In Real Estate Vs. Stock Market:

Investing in the stock market can provide you with high returns, but only for those who know the companies in which you are investing. The stock market is one of the most volatile markets as it is completely out of your control. Real estate investment is much secured as it is backed by tangible assets like land and building. Besides, real estate investment gives recurring income through rentals.

Real Estate vs. Bonds:

Dissimilar to stocks, bonds are not a stake of a company. Therefore, the yield on a bond is permanent & never gets the opportunity to appreciate it. That’s the reason bonds are less volatile than stocks. The actual benefit of real estate over bonds is the time frame of the investments and the rate of return throughout that time. Bonds provide a fixed rate of interest throughout the investment time span and the actual value of that return drops with inflation over time. Investments on rental properties, on the other hand, can produce higher rents in periods of high price increases.

Real Estate Vs Gold:

Investment in Gold is considered a safe asset, but it still loses its attractiveness as compares to real estate. Below are few of the reasons many investors prefer real estate over gold:

Dissimilar to real estate, gold offers no tax advantages

As compared to real estate rental, there is no continuous income potential

Unlike real estate, Gold has no room to leverage for growth

If the value of gold goes up, the gain is nominal

Real Estate Vs Mutual Funds:

In Mutual Funds, the money is invested into a variety of asset types such as bonds, similar mutual funds, stocks, and commodities like fine art or gold. Therefore, there is less amount of risk associated with Mutual Funds, but like stocks, you have no power over the performance of your assets. On the other hand, Real Estate is less risky and the performance of your assets can be controlled by you.

Conclusion:

You must have understood from the above discussion that real estate investment is the most secured investment with profits/ income through appreciation and rental income compare to any other investment, but you need to acquire some requisite knowledge about the timing, location and selective properties for investment. For this, you need to take real estate investment training. EB Professional is the right place that can provide you the knowledge through real estate investment classes.

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Why Startups and Small Businesses Need The Business Credit Builder Finance Suite

Uncover Your Next Business Advantage

For sure, you already know that credit refers to your ability to borrow a certain amount of money. Then, you may also have an ideal with the concept of personal credit or even startup business credit.

As a small business owner or startup, it is very important for you to keep your personal credit separated from business credit. However, you might find it challenging, especially if you are new to the business world.

Luckily, the Business Credit Builder Finance Suite can be your lifesaver! Let’s get more familiar with Business Credit Builder Finance Suite and discover what business advantages you can get.

Your Gateway to Startup Funding!

If you are a small business owner or if you have a startup, you might find it challenging to find start up loans. But this time, that would not be your problem.

The Business Credit Builder Finance Suite will help you build credit under your business name without affecting your personal credit. Not only that, the program will have advisers whom you can talk to and get valuable advice when it comes to your start-up business credit and loans.

Interestingly, you speak with advisers during business hours, weekdays from 9 AM to 7 PM Eastern time for ONE YEAR.

The Business Credit Builder Finance Suite Helps You:

Setup your business to meet lender and credit issuer credibility standards to get automated approvals

Setup and activate your credit profile with Dun & Bradstreet, Experian, and Equifax Commercial and get your free D-U-N-S number (which is essential to building great business credit)

Get initial trade credit to build your business credit reports with no personal credit check

Get business credit without a consumer credit check or personal guarantee

The Business Credit Builder Finance Suite will help you set up your desired business from scratch. Then, you will be prepared to be in a lendable position. So, there’s no need for you to feel less confident about your small business or startup.

Once you are setup with the business reporting agencies, we help you access multiple revolving credit with limits of $5,000 – $50,000!

Types of Credit We Help You Access:

Store business credit with Dell, Walmart, Amazon, Costco, Sam’s Club, BP, Chevron, Home Depot, Lowes, Staples, Office Depot, and with most other major retailers

Fleet credit for fuel and auto vehicle repairs for your primary vehicle, and a fleet of commercial vehicles

Cash credit including Visa and MasterCard accounts you can use in most locations worldwide

Auto vehicle financing to purchase or lease your primary vehicle or a fleet of vehicles, in your business name

Business Credit Builder Finance Suite – Discover a lot of business advantages!

You will have enough to create cash flow and build revenue for your business. You need this money to afford the initial expenses like inventory, rental, equipment, labor, payroll, and other necessary costs. If you need a large initial investment, the start-up business loan is a perfect option to get funded. That way, you can be sure that you will have all the confidence

Small Business Loans Simplified

We make it easy for you to secure a small business loan based on your business strengths. Less than 2% of business loans come from conventional banks. This is because in today’s economy most business loans are obtained through alternative financing, meaning it’s now easier than ever for you to be approved.

Access to over 2,000 lenders… to insure you get money at the best terms

Over 30 funding programs available… means you can get more money than you’ll ever one with just one source

Rates are as low as 2%… our collateral-based loan programs offer you the lowest interest rates available with business financing

Fast closings, get your money in as little as 72 hours… our fast funding program helps you get money in your bank account in 3 days or less

Bad credit, no problem… if your business has cash flow of $10,000 or more monthly OR collateral, you can get approved for business financing even with personal credit issues

No doc funding… even if you have no cash flow or collateral, if you have good personal credit you can still qualify for our no doc funding even if you are a startup and have no tax returns

Build your business credit… even if you can’t qualify now for a business loan, you can still get business credit for your company right away

Certified finance officers build your business blueprint… you have your own finance expert who works to get you the most funding at the best terms

Once you take advantage of the Business Credit Builder Finance Suite, you can create plenty of business opportunities.

If you do have good personal credit, you can also qualify for our Unsecured Business Financing program where you can enjoy:

Unsecured Cash Credit Lines up to $150,000

0% Interest Rates for 6-18 Months

No-Doc Approvals where You Can Get Approved Even as a Startup

Furthermore, you can build business credit with ease. A certain amount of money is necessary to keep your business growing. If you have the Business Credit Builder Finance Suite by your side, rest assured that your chance of getting startup business loans can be increased. Besides, you may also have a bigger business loan in the future and secure lower interest rates.

Some small business owners fear to build credit in their business name because they thought it can affect their personal credit. But, not with the Business Credit Builder Finance Suite. The business credit that you will get will protect your personal wealth. This means that you have nothing to worry about your own finances. All you need to do is to focus on growing your small business.

Are you ready to discover your new business opportunity? Then, simply visit www.ebprofessionals.com

Elite Business Professionals

1 (800) 224-7544

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7 Funding Programs For Business Owners With Less Than Perfect Credit

Trying to fund your business with less than perfect credit or collateral can seem impossible. In reality, there are financing options business owners can qualify for – even with severe credit challenges or collateral.

Traditional banks require excellent credit and substantial collateral to get approved for business funding. The problem is that conventional banking does not offer flexible financing options for business owners with less than perfect credit.

The Truth is…

Big banks do NOT provide funding for most business loans. In fact, their flagship product, SBA loans, only account of 1.1% of ALL business loans (Department of Revenue 2013). So where is all this business funding coming from?

Here are our top 7 sources for getting funding without a personal guarantee:

#7: Revenue Lending

One place you can turn to is business revenue lending and cash advances. These are not loans; instead, business revenue lending (also called cash flow financing) is an advance. Revenue lending is based upon the expected future sales and revenues of a business. You can get 72-hour funding.

Cash flow financing is one of the more popular types of business financing today because it’s fast and easy money! All you need for approval is a 6-month bank statement review. Typically get approval for 10 – 12% of your annual revenue. Therefore, $600,000 in annual revenue can get your company a $60,000 loan. And $400,000 in annual revenue can get your business a $40,000 loan.

There are no collateral requirements for Revenue Lending and often lend to business owner with FICO scores as low as 500. Some lenders don’t have credit requirements at all.

#6: Revenue Lending Line of Credit

While looking into revenue lending lines of credit, we found OnDeck and investigated their programs, rates, terms, and features. As with any financial product, rates can rise and fall; this is normal when it comes to financing. In addition to short term loans, OnDeck also offers $5,000 – $100,000 in revenue lending lines of credit, with a term of 6 months.

To get qualified for funding, you will need to have annual revenue of $100,000 or more, and a personal FICO Score of 600 or better. You must be in business for 9 months or more. Note: there is 13.99% to 36% APR. OnDeck requires a personal guarantee. We can help you find other revenue lending line of credit programs, both online and off.

#5: Merchant Cash Advances

A merchant cash advance can be described as purchases of future credit card sales receivables or even short term business loans. For all options, we can help you find the best merchant cash advance provider for your particular situation, either online or off.

Merchant cash advance programs offer differing benefits. Some charge administrative fees, whereas others have business size requirements (to assure that yours is what the lender feels is a small business), and still others are comfortable with high-risk borrowers. Our research turned up CAN Capital, Pearl Financing, and Yellowstone Capital.

As with all forms of financing, we can help you find the best merchant cash advance provider to serve your particular needs best.

#4: Term Loans

A term loan is a loan from a lending institution, for a specific amount, which has a fixed term when the money is due back in full with interest. There is a specified repayment schedule, although interest can be variable if that is what’s in the agreement.

Online term loan providers have varying requirements, including ownership percentage or time in business or annual revenue minimum requirements (sometimes minimum revenue requirements were calculated on a monthly basis). They will sometimes pull your personal credit or require a minimal FICO score.

Terms varied, from six months to five years. Loan amounts ran the gamut from $2,500 to $1,000,000. Some places gave quotes in minutes whereas others gave offers over the course of days. In addition, as should be expected, the rates varied. Providers sometimes had origination fees or prepayment penalties. Interest rates ran from 5.99% – 29.99%, with APRs running from 8% to as high as 40%.

#3: Lines of Credit

A line of credit is a lending arrangement between a financial institution like a bank and a business. A credit account is extended to the borrower. It has a maximum credit limit to borrow against. The money does not have to be used for a prespecified purchase, so it is a bit like a credit card without the plastic. Lines of credit can be secured or unsecured. The difference between Secured and Unsecured Lines of Credit is as follows. Secured Lines of Credit: The credit grantor has established a lien against an asset belonging to the borrower. This asset becomes collateral. It can be seized or liquidated by the lender in the event of default. Unsecured Lines of Credit: No asset acts as collateral, so the lender assumes a much larger risk. None of the borrower’s major assets can be seized if they default.

#2: Private Investor Financing

Two popular ways of getting private investor financing are angel investors and venture capitalists. First, we looked at angel investors. According to Investopedia: “Angel investors invest in small startups or entrepreneurs. Often, angel investors are among an entrepreneur’s family and friends. The capital angel investors provide may be a one-time investment to help the business propel or an ongoing injection of money to support and carry the company through its difficult early stages.” Anyone can be an Angel Investor. Angels are not covered by the Securities Exchange Commission’s (SEC) standards for accredited investors, but a lot of them are accredited investors anyway.

#1: Business Credit

Building business credit is a great option for getting financing for businesses. Personal credit and collateral have no impact on getting approved for funding, but having a strong business credit profile is. Just like you have a personal credit report and score, your business can have a credit report and score. Elite Business Professionals can help you systematically build your business credit to start funding your business with your EIN.

Getting the Funding You Need

Whether you are in a pinch and need capital fast or are looking for funding options for the long haul, we are here to help. Request a FREE Consultation today to discuss your needs. Our funding specialists are here to help you create a plan to achieving your financing goals!

Appeared first on http://ebprofessionals.com 7 Funding Programs For Business Owners With Less Than Perfect Credit posted first on https://ebprofessionals.com/

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How to Repair Damaged Business Credit

How to Repair Damaged Business Credit

 Business Credit is credit that is obtained in a Business Name. With business credit the Business builds its own credit profile and credit score. With an established credit profile and score, the business will then qualify for credit. This credit is in the business name and based on the business’s ability to pay, not the business owners. Since the business qualifies for the credit, in some cases there is no personal credit check required from the business owner. Once established, the business can use its credit to qualify for revolving store credit cards like Staples, Lowes, Sam’s Club, Costco, BP, Wal-Mart, even MasterCard, Visa, and AMEX. The business can also qualify for credit lines and loans.

There are a lot of benefits in building business credit. For one, a credit profile can be built for a business that is completely separate from the business owner’s personal credit profile. This gives business owners DOUBLE the borrowing power as they have both Personal and Business credit profiles built. Another business credit benefit is that business credit scores are based only on whether the business pays its bills on time. As a result a business owner can obtain credit much faster using their business credit profile versus their personal credit profile.

Approval limits are much higher on business accounts versus personal accounts. Per SBA, credit limits on business cards are usually 10-100 times higher than consumer credit. Another benefit of building business credit is that when done correctly Business Credit can be built without a personal credit check. Business credit can quickly be obtained regardless of personal credit quality. One reason most business owners love business credit is that most business credit can be obtained without the owner taking on personal liability, or a personal guarantee. This means in case of default, the business owner’s personal assets can’t be pursued.   

There are three major companies that collect business information and publish it. These are Dun & Bradstreet also known as D&B, Experian, and Business Equifax. D&B is by far the largest, but the other two are catching up quickly. Dun and Bradstreet is the biggest and major business credit reporting agency. Dun and Bradstreet is a publicly traded company with a headquarters in Short Hills New Jersey, and trades on the New York Stock Exchange. The main credit score used in the business world is known as a Paydex score, provided by Dun and Bradstreet. The Paydex score ranges from 0-100, with 100 being the best score a business can obtain.

Experian was formerly a division of TRW, an automotive electronics giant. TRW was originally founded in 1901 as the Cleveland Cap Screw Company. Experian’s most recent score system is known as Intelliscore Plus, which they boast of as the next level in credit scoring.

Equifax is called the “Small Business Financial Exchange” and is the most important for cash lenders such as banks. Equifax’s main business credit scoring model is the Credit Risk Score. Credit scores range from 1-100, with a lower score indicating a higher risk of serious delinquency.

 Now that you know a little about business credit and the business credit reporting agencies, now let’s talk about: How you can actually Fix Damaged Business Credit.

Many business owners think they have items reporting on their business credit reports that really aren’t reporting. But over 90% of trade vendors don’t report to the business credit reporting agencies. So chances are good that the negative information you think is on your report might not even be there.

Remember most don’t report to the business credit reporting agencies, so one sign you will see when they do report is that they will send alerts notifying you in many cases that they are about to report the credit, especially any type of negative credit. The creditor will almost always notify you in writing before they report the data to the business credit reporting agencies. They will even notify you multiple times in some cases that they are about to report the item on your report. In many cases even the reporting agencies like Experian will notify you before they report negative credit. They might even send you 3 or more notices CLEARLY telling you that someone is about to report something negative on your report and advising you to call the creditor and resolve the dispute.

Obtain Business Credit Reports is to know what’s on your business credit; you should obtain business credit reports from the main business credit reporting agencies. Business Credit reports are offered by Experian, Dun & Bradstreet, and Equifax. You will first want to get a copy of your business credit reports to see what is being reported. You can enroll for the DNBi SelfMonitor from Dun and Bradstreet to monitor your credit during the building process with D&B. To get your reports from D&B visit www.mycredit.dnb.com. A subscription for D&B Self Monitoring will run you about $39-99 per month depending on the type of report you want.

To get your Experian reports visit www.experian.com/small-business. Experian typically charges you $36-175 for a full report.  You can purchase a copy of your Equifax Small Business Credit Report here www.equifax.com/small-business. Equifax will charge $99 for a full report.

You might have already heard of the FCRA. The Fair Credit Reporting Act outlines consumer’s rights to dispute inaccurate information on their credit reports. But it’s essential to know that this law does NOT apply to business credit repair. There are currently no laws which outline business owners’ rights regarding credit disputing. The FCRA also requires credit issuers to notify you of what bureaus they pulled your credit data from to determine your denial for financing. In the business credit world this is not the case, you rarely ever know the source that pulled your business credit or which reporting agencies they pulled it with.

If you see accounts or details you don’t recognize or you feel are inaccurate, request a debt validation for that account using a debt validation letter. A debt validation is where you solicit the creditor for verification of the account details they are reporting. They will typically send you back details of your account that they are reporting. The FCRA and the fair debt collections practices act apply to consumer debts, not business debts. So you can send a debt validation letter, but the creditor is not required by law to respond to your dispute.

 When sending a debt validation request, your request must be sent to the creditor in writing. Also insure you dispute the debt with the credit reporting agencies if the creditor doesn’t respond to your request. If no response is received within 30 days of mailing the letter directly to the creditor, then you should then dispute the account with the business credit reporting agencies. To dispute a debt with the business credit reporting agencies, first contact customer service with any of the three reporting agencies for billing disputes, challenging payments and outdated public filings that appear on your report.

When you dispute an item the business reporting agencies will have vendors re-verify payments and remove charges if the vendor cannot verify the information. The business credit reporting agencies can also help to clear up issues that have been settled or dismissed, yet still appear in your report. You may be asked to send in documentation to verify a settlement or dismissal. The business credit reporting agency will then recheck  the status of the public filing if you do not have documentation.

iUpdate from Dun and Bradstreet provides US based Small Businesses and Non-publicly traded companies convenient access to D&B’s information on their business. Registered users can view, print, and submit updates to their D&B Business Information Report.  Many business owners don’t know that credit monitoring services for Dun and Bradstreet reports are actually provided by a private company known as D&B Credibility.

Credit monitoring is now provided from D&B themselves, instead it’s offered by D&B Credibility, a completely separate entity. Do NOT get upsold by D&B Credibility. You do NOT need their business credit building package as it really won’t help you in business credit building, so don’t let them charge you hundreds of thousands of dollars for their business credit builder package you don’t really need.

To get your Experian business credit reports visit www.experian.com/small-business. Or Google “Experian update business credit”. Equifax Business also has an online system for credit disputing that they provide through their online credit monitoring platform in their member center under “Disputes”.

Keep in mind, the business credit reporting agencies may not be allowed to release the name of the person making the negative reference on your report. REMEMBER, you don’t have the same rights as you do with consumer credit reporting as there is no Fair Credit Reporting Act. However, you can contact customer service to discuss the item on your report as well as your options. If your debt validation and investigation don’t net you the deletion of the derogatory item, next you need to contact the creditor. Find out from them what you must do to have the item removed from the business credit report. Usually, they will remove the account if you pay the outstanding debt.

The main reason for a derogatory item to be on the report is usually because the creditor feels there is an outstanding balance that you owe them. So they will typically remove the account if you pay the outstanding debt. If you reach an agreement for deletion, get the agreement in writing. And insure they provide you a time frame of when they will correct the damage on your report.

 Business credit scoring is based on how you pay your bills. If you pay the majority of reported accounts on time or early, you will have a good score. Most business owners have little to no credit reporting. So even one negative account can have a BIG impact on their business credit score.

It is essential that you continuously build your business credit profile just as you do with your consumer credit. One of the best ways to battle negative information on your report is to offset it with LOTS of positive information. So continuously build your business credit profile just as you do with your consumer credit.

 Contact us today to get business credit and funding for your business.

Elite Business Professionals 1 (800) 830-0344

Appeared first on http://ebprofessionals.com How to Repair Damaged Business Credit posted first on https://ebprofessionals.com/

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Business Loan Secrets

6 Types of Financing You Can Get Right Now… Even if You Have Credit Issues or No Collateral

 Most entrepreneurs think that because they have bad credit or no collateral that there is no chance of them getting a loan. But in reality, there are actually many different financing options that business owners have in which they can qualify, even with severe credit challenges, or even if they don’t have collateral.

As you already know, banks REQUIRE good credit AND collateral to get approved for business financing. But still, most people only go to their bank when they need money, because it’s the only place they know to go to. But the most common business bank loan, SBA loans, only account for 1.1% of all business loans (Department of Revenue 2013).The reality is that the big banks are NOT the suppliers of most business loans. And even though they require good credit and collateral to qualify, many sources don’t.

The big banks are very conservative, as most know. Due to this they commonly won’t lend to businesses in which the business owner has challenged credit or businesses that don’t have collateral. But businesses can succeed even if the owner doesn’t have perfect credit or doesn’t have assets that can be pledged as collateral. And many business loans make really good sense and have risk low enough based on other factors, even if the owner doesn’t have good credit and lacks collateral.So what types of funding can and can’t you get with credit issues or if you lack collateral?

Before you know where to go to get money if you have credit problems, you first should know where NOT to go. These sources might be appealing based on their offers and promotions, but they will not typically lend money to you if you have challenged personal credit. SBA loans, conventional bank financing, private investor money and unsecured financing, all have stringent credit requirements.

 Where NOT to Get Financing with Bad Credit or No Collateral…

 SBA and other bank conventional loans are tough to qualify for because the lender and SBA will evaluate ALL aspects of the business and the business owner for approval. To get approved all aspects of the business and business owner’s personal finances must be near PERFECT. There is no question that SBA loans are tough to qualify for. This is why according to the Small Business Lending Index, over 89% of business applications are denied by the big banks.

Many people think that when they have bad credit or lack collateral, a private investor is the best answer. But in reality investors typically want average or better credit of 650 scores or higher in most cases, and they almost always want you to pledge some type of collateral.They will also want solid financials for at least two years. This means they’ll want to see tax returns showing large net profits that are increasing over time.Think of private money as being for SBA and conventional bank loans that just miss the mark.

“Unsecured” means no collateral is required for approval. No collateral GREATLY increases a lender’s risk. No collateral requirements usually means it’s the quality of credit that determines qualification. Any type of financing that has no collateral requirements AND no cash flow requirements, WILL require good credit to qualify.

 Where TO Go to Get Financing with Challenged Credit or No Collateral…

 Revenue based financing, asset based financing, equity financing, crowdfunding, business credit, and unsecured financing using a credit partner/personal guarantor, are all great funding options for any entrepreneur with personal credit issues or those who lack collateral.

The truth is, there is a LOT of capital out there that business owners can obtain, even with personal credit issues or no collateral. And most of it isn’t available through big banks.And the great news is that you can qualify for this massive amount of available financing based on your business strengths, as long as your business has even one strength. The big banks require your ENTIRE business and you to be near perfect to get money. But as you’re about to discover, there are a lot of other sources who will lend you money, even lots of money, based just on one strength. So as long as you have a strength to offset your weakness of having bad credit or lacking collateral, you can be approved. This is often called compensating factors.

 Cash-flow Based Financing

Many businesses have already proven “concept” and have consistently increasing sales. Their strength is that they have shown stability and that they can effectively run a growing business. The risk to the lender is less as they are established businesses that are growing.How are your sales? Sales are the difference between an untested concept or idea, and a real operating business. Will your idea be well received? Do YOU know how to operate a business? Sales answer these questions.

If you have consistent sales, the next question is does the business have existing cash flow proven by bank statements? There are lending options available that only require a quick bank statement review for approval. They won’t even need to look at your tax returns, so even if your business shows a loss you’ll still be okay. The next question is does the business have over $60,000 annually received in credit card sales? Does the business have over $120,000 annually going through their bank account? If the answer is yes then revenue financing or merchant advances might be the perfect funding product.

For this type of “cash flow” based financing you must be in business six months.No startup businesses can qualify. You should have at least 10 monthly deposits or more going through your bank account, not just a few larger deposits. Most advertising you see for “bad credit business financing” are these products.These are short term “advances” of 6-18 months. Mostly short term at first, such as 3-6 month terms. Then when half is paid down lender will lend more money at a longer term, such as 12- 18 months. Loan amounts typically go up to $500,000. Your actual loan amount is based on your revenue, usually you can get lent 8-12% of annual revenue, based on your verifiable revenue per your bank statements. For example, a company that has $300,000 in sales might get a $30,000 advance initially.

With revenue and merchant financing 500 credit scores accepted and are COMMON with this type of lending. Bad credit is okay as long as you aren’t actively in trouble such as in a bankruptcy or have serious recent and unresolved tax liens or judgments. For this type of cash flow based financing rates of 10-45% are common depending on risk. Risk factors include: Industry, Time in business, Bank statement details- number of deposits, average daily balance, NSF charges, amount of deposits monthly, and credit quality. Usually rates are higher on first advance until you “prove” yourself to the lender. No tax returns are required, no other income docs are required, and no collateral is required.

And, you won’t need to pledge any collateral to get approved. Although you will typically be required to supply a personal guarantee, which is required for almost all business financing that isn’t accompanied by collateral.

 Asset Based Financing

Asset based financing, also called collateral based lending, lends you money based on the strength of your collateral. Since your collateral offsets the lender’s risk, you can be approved with bad credit and still get REALLY good terms.Common BUSINESS collateral might include account receivables, inventory, and equipment.

With account receivable financing you can secure up to 80% of receivables within 24 hours of approval. You must be in business for at least one year and receivables must be from another business. Rates are commonly 1.25-5%.

You can also use your inventory as collateral for financing and secure inventory financing. The minimum inventory loan amount is $150,000 and the general loan to value (cost) is 50%; thus, inventory value would have to be $300,000 to qualify. Rates are normally 2% monthly on the outstanding loan balance. Example is a factory or retail store.

With equipment financing lenders will undervalue equipment by possibly up to 50% and work with major equipment only. Lender won’t combine a bunch of small equipment, andfirst and last month’s payments are required to close. Loan amounts are available typically up to $2 million dollars.

Common PERSONAL collateral that can qualify for collateral based lending might include a 401k and stocks. 401k or IRAs can be used to obtain up to 100% financing and rates are usually less than 3%.A retirement plan is created allowing for investment into the corporation. Funds are rolled over into the new plan. The new plan purchases stock in corporation and holds it. The corporation is debt free and cash rich. With securities based lines of credit you can obtain an advance for up to 70-90% of the value of your stocks and bonds.These work much the same as 401k financing with similar terms and qualifications.

 Equity Financing and Crowdfunding

With equity financing you exchange a percentage of ownership in your business for financing, much like on the TV show Shark Tank. Personal credit is NOT an issue nor will you need to provide collateral, but equity investors are looking for a tested and proven concept and sales really help approval.You might find some investors to invest in a concept only, or invention. But most will want to see that you have an operating business that’s earning money and making profits.

And expect that they’re going to want a large piece of the equity. For it to be worth their time to invest, they might want 10-60% ownership of your business. That means they’ll be taking a large part of your future earnings, something you want to consider before recruiting an investor.

There are lots of websites in which you can obtain crowdfunding for your business. This type of funding gathers money from a “crowd”, or a lot of people instead of one big investor. If the crowd likes your idea, they may donate money to your project. Much of crowdfunding doesn’t need to be paid back and many investors are people you know.But if you really look into crowdfunding, you’ll find there are all types available.

Some types of crowdfunding sources do want a certain percentage of return; some want a percent of equity ownership. And there are different sources and platforms for different needs, and even unique niches or industries. So make sure you find the right crowdfunding platform for you before you post a project.

Business Credit and Unsecured Credit

Business credit is a great way to get money as approvals are not based on personal credit and no collateral is required for approval. Business credit reports usually get started with a few vendor accounts who will initially offer credit. Initial accounts create tradelines and a credit profile and score are established. The company’s new profile and score are used to get credit.Newly obtained credit is based on the company’s credit per the EIN, not the owner’s credit based on the SSN. Personal credit doesn’t matter as the credit linked to the EIN is used for approval.

When you use vendors to build your initial credit, you can then leave your SSN off of the application and can apply for business credit based solely on your EIN at most retail stores. Plus, you can get cash credit also, like high-limit cards with MasterCard and Visa. But building business credit all starts with vendor accounts. Without them, you won’t be able to start your credit profile initially, and that profile being established is the key to getting cash and store credit cards for your business.

Once you find the vendors you want to apply for, apply, and use your credit, it takes about 1-3 months for those accounts to report to the business bureaus. Once those accounts are reported a business credit profile and score are then established, and that can be used for you to get store credit cards next. Once you have about 10 payment experiences reporting, you can then start to get cash credit like Visa and MasterCard accounts. A payment experience is the reporting of an account to one business bureau. So if an account reports to two bureaus, it would actually count as two payment experiences.

You can get approved for vendor accounts right away that offer credit on Net 30 terms. Once you use those accounts they are reported, which takes about 30-90 days. At that point, in only 90 days or less, you can use your newly established credit to start to get high-limit store credit cards. Then in about 30-90 days longer you can be approved for $5,000-10,000 limit cash credit cards that you can use almost anywhere. Due to this fast building and approval time, business credit makes a lot of sense for credit challenged entrepreneurs.

Unsecured credit requires no collateral, but it DOES require good credit. But if you have credit issues you can still get approved if you have a good credit partner, or someone who will sign as a guarantor who does have good credit. The guarantor is then liable for the business debt in case that account defaults. Approval amounts range from $10,000 to $150,000.Card limits are equal to what the signer has on their credit now. These accounts do report to the business bureaus in most cases, so they also help build your business credit and they are NOT reported on the guarantor’s personal credit report. Your guarantor will need excellent personal credit to qualify.

  Summary

 Luckily for us entrepreneurs, there are actually A LOT of different viable financing options, even if you have challenged personal credit or lack collateral. The key is to know where NOT to look, and not waste your time… and to know where TO look, places that will approve you based on your strengths.

If you do have personal or business collateral as we discussed, you might qualify for financing right now. If you have cash flow of more than $10,000 monthly, you might qualify for cash-flow based financing right now. If you have a partner, or other party who will sign as a guarantor, you have yet another good funding option available with unsecured financing. And even if you have no collateral, no cash flow, no guarantor, and bad credit… business credit is still an easy and fast way to get your hands on money.

We hope this helps you get one step closer to getting money to build the company of your dreams. We offer all of these financing options and more.

 Contact us today to get business credit for your business.

Elite Business Professionals 1 (800) 830-0344 info@ebprofessionls.com

Appeared first on http://ebprofessionals.com Business Loan Secrets posted first on https://ebprofessionals.com/

[kiimreyes]

Unsecured Business Financing (UBF)… the Hidden Gem of Business Financing

Unsecured Business Financing (UBF)… the Hidden Gem of Business Financing

 Typically, when you apply for a credit card you put an inquiry on your consumer report. When other lenders see these, they won’t approve you for more credit because they don’t know how much other new credit you have recently obtained.

So they’ll only approve you if you have less than two inquiries on your report within the last 6 months and more will get you declined.

With UBF, you work with a lender who specializes in securing business credit cards. This is a VERY rare, very little known about program that few lending sources offer.

They can usually get you 3-5 times the approvals that you can get on your own. This is because they know the sources to apply for, the order to apply, and that can time their applications so the card issuers won’t decline you for the other card inquiries.

The result of their services is that you usually get up to five cards that mimic the credit limits of your highest limit accounts now. Multiple cards create competition, and this means you can get your limits raised typically within 6 months or less of your initial approval.

With UBF they actually get you 3-5 business credit cards that report only to the business credit reporting agencies. This is HUGE, something most lenders don’t offer or advertise. Not only will you get money, but you build your business credit also. So within 3-4 months, you can then use your newly established business credit to get even more money.

The lender can also get you low intro rates, typically 0% for 6-18 months. You’ll then pay normal rates after that, typically 5-21% APR with 20-25% APR for cash advances. And they’ll also get you the best cards for points, meaning you get the best rewards.

Just like with anything, there are HUGE benefits in working with a source that specializes in this area… the results will be much better than if you try to go at it alone.

Approval limits will mimic that of your personal cards now. Approvals usually range from $2,000-50,000.

You’ll usually get 3-5 cards, so that means you can get up to 5 times that of your highest credit limit accounts now. Approvals can go up to $150,000 per entity such as a corporation.

You must have excellent personal credit now, preferably 700 + scores… the same as with all business credit cards. You shouldn’t have ANY derogatory credit reported to get approved.

You must also have open revolving credit on your consumer reports now. You’ll need to have two inquiries or less in the last 6 months reported.

All lenders in this space charge a 9-12% success based fee. You only pay the fee off of what you secure.

Remember, you get a ton of extra benefits and about 3-5 times more money with this program than you’d get on your own… which is why there’s a fee… the same as all other lending programs.

You can get approved using a guarantor. You can even use multiple guarantors to get even more money.

There are also other cards you can get using this same program. But these cards only report to the CONSUMER reporting agencies… not the business reporting agencies. They are consumer credit cards versus business credit cards.

They provide similar benefits including 0% intro APRs and five times the amount of approval of a single card but they’re much easier to qualify for.

You can get approved with a 680 score and five inquiries in the last 6 months. You can have a BK on your credit and other derogatory items. These are much easier to get approved for than UBF business cards.

Contact us today to get business credit for your business.

Elite Business Professionals 1 (800) 830-0344 info@ebprofessionls.com

Appeared first on http://ebprofessionals.com Unsecured Business Financing (UBF)… the Hidden Gem of Business Financing posted first on https://ebprofessionals.com/

[kiimreyes]

Build Strong Business Credit Scores Fast

6 Steps To Building Business Credit

 Step 1 –The Foundation

Step 1 is all about establishing credibility for your company. Think about it from a lenders perspective. They are in business to lend to companies they consider to be a “Safe-Risk.” They will be doing a number of underwriting checks to see if you are “safe” enough for them to consider extending credit to you.

Part of establishing yourself as a safe risk starts by being in compliance, being in compliance helps you establish credibility for your company. This is foundational to your success!

Step 2 –Your Business Fundability

How Fundable is your business?

Fundability is not just about your business credit. It includes several components that determine how your overall business is seen by lenders, investors, insurers, suppliers, and more. Basically, we know that your business was worth the risk for you, but is it worth the risk for them?

Fund • a • bil • i • ty [adj. Fuhnd-uh-bil-i-tee] You won’t find “Fundability” on Dictionary. com, so don’t bother looking. Fundability is a phrase we’ve coined to describe how a business measures up in relation to the entire business lending and investing community.

The answer will increasingly be “yes” as your business fundability grows.

So by improving the fundability of your business, our Business Credit Building System is doing more than just helping you build strong business credit. We are improving the overall “health” of your business while greatly increasing your ability to succeed now and in the future.

The major components of your Business Fundability are:

● Business Bank Accounts ● Business Assets ● Business Revenue ● The Owners and their credit history

Step 3 – Credit Agencies

Dun & Bradstreet is used by most vendors to extend lines of credit. Landlords use them to approve office leases as well. Experian is used by many credit card companies and non-traditional business lenders. Equifax is called the “Small Business Financial Exchange” and is most important for cash lenders such as banks. To concentrate on one and not the others is to have lopsided credibility. You need to build all three.

The how-to instructions in this Step for getting set up “the right way” with each Business Credit Reporting Agency are very clearly spelled out and the methods have been tested and proven by thousands of our business members before you.

There are some confusing claims made by the business credit reporting agencies.

For instance, Dun & Bradstreet claims that you must pay them or your business file will never be opened. That is simply not true. Your file will activate with them, it just will take a few reporting cycles. Equifax claims that they don’t allow business owners to purchase a copy of their reports. That is true, but we will show how to obtain a copy of your Equifax business report without  purchasing it.

In Step 3 we wipe away all confusion about the Business Credit Reporting Agencies. Along with being able to access all three of your business credit reports, you will have a much clearer understanding of the business credit reporting process and you will know how your business credit scores are developed when we are finished.

Our business credit building system is data integrated with Experian Smart business credit reports. So when you first login you will be able to see exactly where your company currently stands in the business credit building process, and then be able to track your real-time progress as your business credit grows.

Step 4 –Vendor Credit

A vendor line of credit is when a company (vendor) extends a line of credit to your business on “Net 30, 60 or 90” day terms. This means you can purchase their products or services up to a maximum dollar amount and you have 30, 60 or 90 days to pay the bill in full. So if you purchase $300 worth of goods today, then that $300 is due within the next 30 days.

The facts about vendor credit lines:

● You can get products and services your business needs and defer the payment on those for 30 days, thereby easing cash flow. This is called “Net 30”. ● Many of our vendors will open a Net 30 terms account for your company with as little as an EIN number and a verified 411 listing. ● You will need to start with our “preferred vendor list.” They are known to grant credit to companies with no credit history. ● Always apply first without using your SSN, some vendors will request it and some will even tell you on the phone they have to have it. Submit first without it, with your EIN only. If they ask you to personal guarantee it after you have submitted it without, then this is up to you. ● Some vendors may ask you to place an initial prepaid order. If so, get that order out of the way fast and move on to having a Net 30 account opened for your second or third order. ● Remember that the goal here is to have at least five (5) Net 30 accounts opened and reporting, not necessarily to have vendors that serve 100% of your business needs right now. Later, once your scores are built, you can add better vendors as you may need them. ● You must be patient and allow time for the vendors’ reporting cycles to get into the system and begin impacting your business credit scores. It typically takes three (3) cycles of “Net” accounts reporting to build credit scores. In other words, it can take 60-90 days to get them to report and show up on your file. ● Remember we said from the very beginning that it takes 90 to 120 days to build business credit scores. The credit reporting cycles are the main reason for that and it cannot be done faster.

Step 5 – Revolving Credit Accounts

Having three (3) Revolving Business Credit Card accounts is key to building business credit.

For your business credit building success you need to obtain three (3) revolving business credit card accounts. These accounts report to the business credit agencies in different ways and carry more weight than the vendor credit that you select in Step 4.

A revolving credit account is simply one that allows you to pay a “minimum due”

per month and not the full outstanding balance. These accounts normally report to Experian and sometimes to D&B and Equifax. Because of how they report, these accounts will help build your business credit on a larger scale than just the Net 30 day vendors alone.

If you haven’t completed Steps 1 through 4 there is no point in starting Step 5.

Why? Because you will most likely get declined. These accounts will be checking to see that your business credit foundation is set and that your business credit files are open. They may also check your bank rating, look to see if you have some open vendor lines of credit and, in many cases, they will want to see that your D&B file is open.

In this step it does not matter which Revolving Credit Card Accounts you open and make purchases with. We have a great selection of companies offering products and services that are of value to any and all businesses.

Step 6 –Additional Funding

Getting “additional credit” makes your business more credible in the eyes of almost all other lenders.

In Step 6, we will walk through what must be done to obtain some of the funding that will start the reporting process for your business and place your business on all other lender’s radar.

As part of Bank Credit, in Step 6 we will be teaching you about the following:

Bank Ratings  -a strong business bank account rating indicates your business has the ability to repay loans, we will look at how banks rate your accounts.

Business Cash – We provide you with access to many unique funding programs that can bring quick cash to your business.

Personal Cash -Here we show you some creative programs for accessing personal cash that can then be used in your business.

One Bank Loan -We will detail why your business needs a bank loan that reports to the business credit agencies, exactly how to go about obtaining it.

 Get the Help You Need to Get it Done Fast

Elite Business Professionals 1 (800) 830-0344 www.ebprofessionls.com

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How to Get Business Loans with Bad Credit

How to Get Business Loans with Bad Credit

 Most entrepreneurs think that because they have bad credit there is no chance of them getting a loan. But in reality, there are actually many different financing options that business owners have in which they can qualify, even with severe credit challenges.

As you already know, banks REQUIRE good credit to get approved for business financing. But still, most people only go to their bank when they need money, because it’s the only place they know to go to. But the most common business bank loan, SBA loans, only account for 1.1% of all business loans (Department of Revenue 2013).The reality is that the big banks are NOT the suppliers of most business loans. And even though they require good credit to qualify, many sources don’t. The big banks are very conservative, as most know. Due to this they commonly won’t lend to businesses in which the business owner has challenged credit. But businesses can succeed even if the owner doesn’t have perfect credit. And many business loans make really good sense and have risk low enough based on other factors, even if the owner doesn’t have good credit.So what types of funding can and can’t you get with bad credit?

Before you know where to go to get money if you have credit problems, you first should know where NOT to go. These sources might be appealing based on their offers and promotions, but they will not typically lend money to you if you have challenged personal credit. SBA loans, conventional bank financing, private investor money and unsecured financing, all have stringent credit requirements.

 Where NOT to Get Financing with Bad Credit…

 SBA and other bank conventional loans are tough to qualify for because the lender and SBA will evaluate ALL aspects of the business and the business owner for approval. To get approved all aspects of the business and business owner’s personal finances must be near PERFECT. There is no question that SBA loans are tough to qualify for. This is why according to the Small Business Lending Index, over 89% of business applications are denied by the big banks.

Many people think that when they have bad credit, a private investor is the best answer. But in reality investors typically want average or better credit of 650 scores or higher in most cases.They will also want solid financials for at least two years. This means they’ll want to see tax returns showing large net profits that are increasing over time.Think of private money as being for SBA and conventional bank loans that just miss the mark.

“Unsecured” means no collateral is required for approval. No collateral GREATLY increases a lender’s risk. No collateral requirements usually means it’s the quality of credit that determines qualification. Any type of financing that has no collateral requirements, or no cash flow requirements, WILL require good credit to qualify.

 Where TO Go to Get Financing with Bad Credit…

 Revenue based financing, collateral based financing, equity financing, crowdfunding, business credit, and unsecured financing using a credit partner/personal guarantor, are all great funding options for any entrepreneur with personal credit issues.

The truth is, there is a LOT of capital out there that business owners can obtain, even with personal credit issues. And most of it isn’t available through big banks.And the great news is that you can qualify for this massive amount of available financing based on your business strengths, as long as your business has even one strength. The big banks require your ENTIRE business and you to be near perfect to get money. But as you’re about to discover, there are a lot of other sources who will lend you money, even lots of money, based just on one strength. So as long as you have a strength to offset your weakness of having bad credit, you can be approved. This is often called compensating factors.

Cash-flow Based Financing

Many businesses have already proven “concept” and have consistently increasing sales. Their strength is that they have shown stability and that they can effectively run a growing business. The risk to the lender is less as they are established businesses that are growing.How are your sales? Sales are the difference between an untested concept or idea, and a real operating business. Will your idea be well received? Do YOU know how to operate a business? Sales answer these questions.

If you have consistent sales, the next question is does the business have existing cash flow proven by bank statements? There are lending options available that only require a quick bank statement review for approval. They won’t even need to look at your tax returns, so even if your business shows a loss you’ll still be okay.The next question is does the business have over $60,000 annually received in credit card sales? Does the business have over $120,000 annually going through their bank account? If the answer is yes then revenue financing or merchant advances might be the perfect funding product.

For this type of “cash flow” based financing you must be in business six months.No startup businesses can qualify. You should have at least 10 monthly deposits or more going through your bank account, not just a few larger deposits. Most advertising you see for “bad credit business financing” are these products.These are short term “advances” of 6-18 months. Mostly short term at first, such as 3-6 month terms. Then when half is paid down lender will lend more money at a longer term, such as 12- 18 months. Loan amounts typically go up to $500,000. Your actual loan amount is based on your revenue, usually you can get lent 8-12% of annual revenue, based on your verifiable revenue per your bank statements. For example, a company that has $300,000 in sales might get a $30,000 advance initially.

With revenue and merchant financing 500credit scores accepted and are COMMON with this type of lending. Bad credit is okay as long as you aren’tactively in troublesuch as in a bankruptcy or have serious recent and unresolved tax liens or judgments. For this type of cash flow based financing rates of 10-45% are common depending on risk. Risk factors include: Industry, Time in business, Bank statement details- number of deposits, average daily balance, NSF charges, amount of deposits monthly, and credit quality. Usually rates are higher on first advance until you “prove” yourself to the lender. No tax returns are required, no other income docs are required, and no collateral is required.

Collateral Based Financing

Collateral based lending lends you money based on the strength of your collateral. Since your collateral offsets the lender’s risk, you can be approved with bad credit and still get REALLY good terms.Common BUSINESS collateral might include account receivables, inventory, and equipment.

With account receivable financing you can secure up to 80% of receivables within 24 hours of approval. You must be in business for at least one year and receivables must be from another business. Rates are commonly 1.25-5%.

You can also use your inventory as collateral for financing and secure inventory financing. The minimum inventory loan amount is $150,000 and the general loan to value (cost) is 50%; thus, inventory value would have to be $300,000 to qualify. Rates are normally 2% monthly on the outstanding loan balance. Example is a factory or retail store.

With equipment financing lenders will undervalue equipment by possibly up to 50% and work with major equipment only. Lender won’t combine a bunch of small equipment, andfirst and last month’s payments are required to close. Loan amounts are available typically up to $2 million dollars.

Common PERSONAL collateral that can qualify for collateral based lending might include a 401k and stocks. 401k or IRAs can be used to obtain up to 100% financing and rates are usually less than 3%.A retirement plan is created allowing for investment into the corporation. Funds are rolled over into the new plan. The new plan purchases stock in corporation and holds it. The corporation is debt free and cash rich. With securities based lines of credit you can obtain an advance for up to 70-90% of the value of your stocks and bonds.These work much the same as 401k financing with similar terms and qualifications.

Equity Financing and Crowdfunding

With equity financing you exchange a percentage of ownership in your business for financing, much like on the TV show Shark Tank. Personal credit is NOT an issue, but equity investors are looking for a tested and proven concept and sales really help approval.You might find some investors to invest in a concept only, or invention. But most will want to see that you have an operating business that’s earning money and making profits.

And expect that they’re going to want a large piece of the equity. For it to be worth their time to invest, they might want 10-60% ownership of your business. That means they’ll be taking a large part of your future earnings, something you want to consider before recruiting an investor.

There are lots of websites in which you can obtain crowdfunding for your business. This type of funding gathers money from a “crowd”, or a lot of people instead of one big investor. If the crowd likes your idea, they may donate money to your project. Much of crowdfunding doesn’t need to be paid back and many investors are people you know.But if you really look into crowdfunding, you’ll find there are all types available.

Some types of crowdfunding sources do want a certain percentage of return; some want a percent of equity ownership. And there are different sources and platforms for different needs, and even unique niches or industries. So make sure you find the right crowdfunding platform for you before you post a project.

Business Credit and Unsecured Credit

Business credit is a great way to get money as approvals are not based on personal credit. Business credit reports usually get started with a few vendor accounts who will initially offer credit. Initial accounts create tradelines and a credit profile and score are established. The company’s new profile and score are used to get credit. Newly obtained credit is based on the company’s credit per the EIN, not the owner’s credit based on the SSN. Personal credit doesn’t matter as the credit linked to the EIN is used for approval.

When you use vendors to build your initial credit, you can then leave your SSN off of the application and can apply for business credit based solely on your EIN at most retail stores. Plus, you can get cash credit also, like high-limit cards with MasterCard and Visa. But building business credit all starts with vendor accounts. Without them, you won’t be able to start your credit profile initially, and that profile being established is the key to getting cash and store credit cards for your business. Once you find the vendors you want to apply for, apply, and use your credit, it takes about 1-3 months for those accounts to report to the business bureaus. Once those accounts are reported a business credit profile and score are then established, and that can be used for you to get store credit cards next. Once you have about 10 payment experiences reporting, you can then start to get cash credit like Visa and MasterCard accounts. A payment experience is the reporting of an account to one business bureau. So if an account reports to two bureaus, it would actually count as two payment experiences.

You can get approved for vendor accounts right away that offer credit on Net 30 terms. Once you use those accounts they are reported, which takes about 30-90 days. At that point, in only 90 days or less, you can use your newly established credit to start to get high-limit store credit cards. Then in about 30-90 days longer you can be approved for $5,000-10,000 limit cash credit cards that you can use almost anywhere. Due to this fast building and approval time, business credit makes a lot of sense for credit challenged entrepreneurs.

Unsecured credit requires no collateral, but it DOES require good credit. But if you have credit issues you can still get approved if you have a good credit partner, or someone who will sign as a guarantor who does have good credit. The guarantor is then liable for the business debt in case that account defaults. Approval amounts range from $10,000 to $150,000.Card limits are equal to what the signer has on their credit now. These accounts do report to the business bureaus in most cases, so they also help build your business credit and they are NOT reported on the guarantor’s personal credit report. Your guarantor will need excellent personal credit to qualify.

  Summary

 Luckily for us entrepreneurs, there are actually A LOT of different viable financing options, even if you have challenged personal credit. The key is to know where NOT to look, and not waste your time… and to know where TO look, places that will approve you based on your strengths. If you do have personal or business collateral as we discussed, you might qualify for financing right now.

If you have cash flow of more than $10,000 monthly, you might qualify for cash-flow based financing right now. If you have a partner, or other party who will sign as a guarantor, you have yet another good funding option available with unsecured financing. And even if you have no collateral, no cash flow, no guarantor, and bad credit… business credit is still an easy and fast way to get your hands on money.

We hope this helps you get one step closer to getting money to build the company of your dreams. We offer all of these financing options and more, so if we can be of help please let us know.

Elite Business Professionals 1 (800) 830-0344 www.ebprofessionls.com

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10 Ways to get Business Credit Lines and Loans Based on Only your Revenue

10 Ways to get Business Credit Lines and Loans Based on Only your Revenue

 Funding Your Business

Turning to business credit to get the money to build your business is a smart business choice. Alternative funding sources can also help, although you might be tempted to try a traditional lender or credit provider, like a bank or a credit union. However, these more traditional sources might not work for startup companies or businesses in industries which are seen as being ‘high risk’.

Therefore, instead, here are 10 proven ways to get business credit lines and loans, and it’s only based on your company’s revenue.

1. Revenue lending

One place you can turn to is business revenue lending and cash advances. These are not loans. Rather, business revenue lending (also called cash flow financing) is an advance. It is based upon the expected future sales and revenues of a business. You can get 72 hour funding.

Cash flow financing is one of the more popular types of business financing today. This is fast and easy money! All that is needed for approval is a 6-month bank statement review. You can typically get approval for 10 – 12% of your annual revenue. Therefore, $600,000 in annual revenue can get your company a $60,000 loan. And $400,000 in annual revenue can get your business a $40,000 loan.

There are no collateral requirements! Lenders will often lend to as low as a 500 FICO score. Some lenders don’t have credit requirements at all.

Typically, you need to be in business for at least a year. You should have revenue of over $10,000 monthly. You will need to have more than 10 monthly deposits. Also, you will need to be able to show a positive bank balance at the end of each month.

Cash flow financing has some serious benefits. Because once you have paid back half of your loan, then you will be offered another loan. The terms will get longer, and the rates will get better. Over 70% of funded customers will come back and get more money.

2. Revenue lending line of credit

For information on just what a line of credit is, see #6.

While looking into revenue lending lines of credit, we found OnDeck and investigated their programs, rates, terms, and features. As with any financial product, rates can rise and fall; this is normal when it comes to financing. In addition to short term loans, OnDeck also offers $5,000 – $100,000 in revenue lending lines of credit, with a term of 6 months.

You will need to have annual revenue of $100,000 or more, and a personal FICO Score of 600 or better. You must be in business 9 months or more. Note: there is 13.99% to 36% APR. OnDeck requires a personal guarantee.

We can help you find other revenue lending line of credit programs, both online and off. 

3. Merchant cash advance

The idea of a merchant cash advance was first envisioned as a lump sum payment to a business in exchange for a percent of future credit and/or debit card sales. However, these days a merchant cash advance might describe purchases of future credit card sales receivables or even short term business loans.

For all options, we can help you find the best merchant cash advance provider for your particular situation, either online or off.

Programs offer differing benefits. Some charge administrative fees, whereas others have business size requirements (to assure that yours is what the lender feels is a small business), and still others are comfortable with high-risk borrowers. Our research turned up CAN Capital, Pearl Financing, and Yellowstone Capital.

As with all forms of financing, we can help you find the best merchant cash advance provider to best serve your particular needs.

4. Fast approvals using Artificial Intelligence

When researching fast approvals using AI, we took a closer look at Fundbox.

Fundbox offers invoice financing (factoring) and business lines of credit. There is no personal credit score requirement. Fundbox just wants to connect to your business bank account. They offer up to $100,000 in credit.

FundBox’s fast approvals come from connecting directly to your business bank account and letting their AI do the rest. As with all forms of financing, we can help you connect to the best and fastest approvals with respect to your particular situation.

5. Term loans

A term loan is pretty much exactly what it sounds like. It’s a loan from a lending institution, for a specific amount, which has a certain fixed term when the money is due back in full with interest. There is a specified repayment schedule although interest can be variable if that is what’s in the agreement. Some term loans come with prepayment penalties (check with the provider).

There are also several online providers of term loans. Some of the providers we came across in our research are Bond Street, CAN Capital (again), Lending Club, and QuarterSpot.

Online term loan providers have varying requirements, including ownership percentage or time in business or annual revenue minimum requirements (sometimes minimum revenue requirements were calculated on a monthly basis). They will sometimes pull your personal credit or require a minimal FICO score.

Terms varied, from six months to five years. Loan amounts ran the gamut from $2,500 to $1,000,000. Some places gave quotes in minutes whereas others gave offers over the course of days. In addition, as should be expected, the rates varied. Providers sometimes had origination fees or prepayment penalties. Interest rates ran from 5.99% – 29.99%, with APRs running from 8% to as high as 40%.

6. Lines of credit

A line of credit is a lending arrangement between a financial institution like a bank and a business. A credit account is extended to the borrower. It has a maximum credit limit to borrow against. The money does not have to be used for a prespecified purchase, so it is a bit like a credit card without the plastic. Lines of credit can be secured or unsecured.

The difference between Secured and Unsecured Lines of Credit is as follows. Secured Lines of Credit: The credit grantor has established a lien against an asset belonging to the borrower. This asset becomes collateral. It can be seized or liquidated by the lender in the event of default. Unsecured Lines of Credit: No asset acts as collateral, so the lender assumes a much larger risk. None of the borrower’s major assets can be seized if they default.

Credit lines provide unique advantages to borrowers including flexibility. Borrowers can use their line of credit and only pay interest on what they use, unlike loans where they pay interest on the full amount borrowed. Credit lines can be reused. As you acquire a balance and pay that balance off, you can use that available credit again, and again. Credit lines are revolving accounts much like credit cards; contrast other forms of financing like installment loans. In many cases, lines of credit are unsecured, much like credit cards are. There are some credit lines which are secured, and therefore easier to qualify for. Credit lines are the most commonly requested loan type within the business world. Although they are very popular, true credit lines are rare and hard to find. Many are also very tough to qualify as they require good credit, good time in business, and good financials.

You may have seen ads for 0% credit lines for $50,000 – $250,000, or more. A 0% program is ideal for startup companies, high-risk industries, and those who don’t have or want to provide proof of cash flow or collateral. Hence unlike asset based lending, you don’t need to show or provide assets as collateral for approval. And unlike cash advances, you don’t need to be in business 6 – 12 months or have consistent cash flow for approval.

You only pay on what you owe, not like a loan. Hence if you are approved for $100,000, you won’t make payments on $100,000. You only make payments on the balance you owe. If you charged $4,000 on the account, you only need to make payments on that $4,000, and during the 0% interest period, you don’t pay interest. It is possible to get cards that only report to business credit reporting agencies, not the consumer agencies. You can use this credit, even with high utilization, with no adverse impact on your consumer credit. This is important because utilization is 30% of the consumer FICO score. And when you use more than 30% of your limit on an account which reports to consumer CRAs, you can really lower your consumer scores.

Often when you apply for consumer credit, there is an inquiry on your consumer report. When other lenders see these, they won’t approve you for more credit as they don’t know how much other new credit you have recently obtained. Hence they only approve you if you have less than 2 inquiries on your report within the last 6 months; more will get you declined.

The 0% rate is an obvious benefit, but it’s only available for a limited time. Even if the lender doesn’t say the 0% rates will end, they will, because interest is how these companies make their money. Usually the 0% rate holds for 6 – 18 months and no more, although some sources will consider an extension if you request one.

Note that credit cards are not the same as credit lines. A credit line is more like a debit card. And most credit lines don’t offer 0% like many cards do. But credit lines do let you take cash out of the line at the same rate as the line is for, such as 8%. Plus with credit cards, you can’t take cash out on them without paying a heft cash advance fee of usually 20% or higher. These are the main differences.

One difference is in methodology. A lending source works on your behalf to secure credit cards for you. The company is not a lender, or card issuer. Instead they function as experts in obtaining credit cards, and work to apply to get you the most credit they can secure. Nearly always, their tactics to get you credit result in much more than you could get on your own. This is because they are going for multiple cards for you.

These are AR or revenue-based credit lines. Interest rates are .5 – .7%. You can get an immediate approval, and fund the next day! This is an actual, real working capital credit line. The lender plugs directly into your bank account or your accounting software like QuickBooks for fast approvals. You can get approval for up to $100,000. You get 12 – 24 weeks to pay back whatever you use from this credit line. You are charged .5 – .7% in interest for every week the money is outstanding. This is equivalent to around $50 for every $1,000 borrowed. Typical initial approvals are under $50,000. To get up to $100,000, they typically want to see 2 years of tax returns as well. Once the tax returns are provided and perused, you typically get more money the next day.

Here is an AR or Revenue-Based Credit Line Case Study: a client in a high-risk industry came in. He got an immediate approval for $6,000. And then he provided his tax returns and was approved for $30,000. Rather than getting in on a program where he would have to pay 30%, we got him into this program, and he only had to pay .5%.

There are 2 ways to qualify for this program: outstanding accounts receivable, or these are businesses or individual customers that owe your company money but are paying you back the money they owe. This will show up in your accounting software or tax returns or bank account.

The other way to qualify for this program is that you must have consistent revenue of $100,000 or more; this makes lenders more comfortable about loaning money to you. They are more confident that you have the ability to pay it back. Whether you qualify under outstanding accounts receivable or consistent revenue of $100,000 or more, you also must be in business for one year.

If they are looking at your accounting software, they want to see accounts receivable or consistent revenue (or both). If they are looking into your bank account, then they want to see good bank account management. That means no overdrafts, no NSF (nonsufficient funds). They want to see positive ending bank balances at the end of each month. There are no business or consumer credit score requirements. There is no credit pull at all!

There are other kinds of credit lines.

SBA Express: access to a credit line for well-qualified borrowers. You can get approved for up to $350,000. Interest rates vary; the SBA lets banks charge as much as 6.5% over their base rate. Loans over $25,000 will require collateral.

Alternative SBA Credit Lines: private investors and alternative lenders also offer credit lines. They usually require good personal credit for approval. Unlike with SBA, many of them don’t require good bank or business credit approval. Almost all of these types of programs require 2 years’ of tax returns, and those tax returns must show a profit.

Securities financing: you can get financing regardless of personal credit if you have some type of stocks or bonds. You can also get approved if you have someone wanting to use their stocks or bonds as collateral for financing. Personal credit quality doesn’t matter as there are no consumer credit requirements for approval.

Online providers Fundation Group, Fundera, and Lendio also offer lines of credit. Provider requirements varied, as some checked personal credit scores whereas others had a time in business requirement. Terms ran from five months to six years, with one provider (Fundation) charging a closing fee. Rates also varied, running from 8% – 25%, with APRs ranging from 7.99% – 29.99%.

7. SBA loans

The Small Business Administration has various CAPLines loan programs (see #8) and SBA Express. The SBA’s lending partners actually make the loans. The SBA also offers research grants, if your company engages in scientific research and development.

The SBA uses the FICO SBSS (Small Business Scoring Service). These scores reflect likelihood of an applicant paying their bills timely. Scores range from 0 to 300 and the higher scores mean lower risk. Therefore, the higher score you have, the better. Personal and business credit history plus financial data go into the total score calculation.

For SBA loans, you will not be approved with a score under 140. However, they typically set a cutoff as high as 160. Below that, you will probably be denied because of being too high a risk. Chances are good an SBA lender won’t even submit your application to SBA if your score doesn’t meet the threshold.

You usually need to show some time in business. The most popular SBA loan for working capital is the 7(a). Approvals for up to $750,000. Rates are usually 2-4% above prime rate. All owners with more than 20% ownership must provide a personal guarantee. Good consumer credit is required.

Not every business will qualify for an SBA loan. And be aware: all SBA loan applications require a great deal of paperwork.

7(a) Loans

You must demonstrate a need for funds, and have a sound business purpose in mind. Your business must meet SBA’s size standards, and be considered small within your particular industry. You have to operate for profit and must have reasonable equity to invest.

A company must do, or propose to do business in the United States or its possessions. Plus the company must have tried to use other financial resources. These include personal assets (AKA bootstrapping), before applying.

The 7(a) Program allows for loan amounts of up to $5 million to fund startup costs, buy equipment, etc. A company can also buy new land (this includes construction costs); repair existing capital; buy or expand an existing business; refinance existing debt; or buy machinery, fixtures, furniture, supplies or materials.

7(a) fund benefits include flexibility, longer terms and potentially lower down payments versus other financing options. Plus there are specialized programs for entrepreneurs who are interested in exporting; or are located in underserved communities; or who are members of the military community, and those looking to meet short-term and cyclical working capital needs.

Most such loans are repaid with monthly payments of principal and interest. For fixed-rate loans, the payments stay the same, since the interest rate is constant. For variable-rate loans, a lender can require a different-sized payment amount when the interest rate changes.

SBA Express

SBA Express is a faster means of securing a SBA loan. These loans go up to $250,000. Rates usually range from 2-4% above prime rate. Also available is Community Express for low and moderate income entrepreneurs.

SBA Express offers access to a credit line for well-qualified borrowers. Approvals go up to $350,000. Interest rates vary; SBA lets banks charge as much as 6.5% over their base rate. Loans over $25,000 require collateral. For approval you need:

● Balance sheet & income statement ● Account receivables ● Collateral ● Articles of incorporation ● Business licenses ● Contracts with 3rd parties ● Lease

SBA 504

This is the SBA’s second-most popular loan type, often used to buy land, equipment, or real estate. The bank funds the loan; SBA generally guarantees up to 40%. You can usually get a loan up to $1 million. Typically, you contribute 10% of the equity.

You must operate your business for profit, with a feasible business plan and relevant management expertise. A company must do business in the United States or its territories. The company must have tried to use other financing, and this includes personal assets (e. g. bootstrapping), before applying for a loan.

Your business must have a tangible net worth of under $15 million, and it must have an average net income of less than $5 million after taxes for the last 2 years. A business must be able to repay the loan on time from its projected operating cash flow. Maximum loan amounts are determined by usage. For land and buildings, the loan term is 20 years; it’s a 10-year term for machinery and equipment.

SBA 7(m)

7(m) is their microloan program. Loans up to $35,000 for working capital and growth. Average loan amounts are about $13,000. Funds come straight from the SBA. This is unlike the 7(a), where funds come from a bank. SBA’s Microloan Program provides short-term loans up to $50,000 to help small businesses startup and expand.

The SBA makes funds available through specially designated intermediary lenders. These are nonprofit community-based organizations with experience in lending, management, and technical assistance. These intermediaries make loans to eligible borrowers.

Microloans have to be repaid in six years and can be used for:

● Working capital

● Buying inventory or supplies

● Purchasing furniture or fixtures

● Buying machinery or equipment

8. SBA CapLines

The SBA says: “CAPLines is the umbrella program under which SBA helps business owners meet short-term and cyclical working capital needs”.

Loan amounts are available up to $5 million. Loan qualification requirements are the same as with other SBA programs. Loan or revolving types are available.

There are four kinds of SBA CapLines:

● Seasonal Line – Advances against anticipated inventory and accounts receivables, meant to help seasonal businesses.

● Contract Line – Finances direct labor and material cost associated with performing assignable contracts.

● Builders Line – Meant for general contractors or builders constructing or renovating commercial or residential buildings. Finance direct labor-and material costs, where the building project serves as the collateral.

● Working Capital Line – Asset-based revolving line of credit. Borrowers have to use the loan for short term working capital or operating needs. The funds cannot be used to pay delinquent withholding taxes or the link (such as state sales tax), or for floor planning. If used to acquire fixed assets, lender must refinance that portion of the line into an appropriate term facility no later than 90 day after the lender discovers the line was used to finance a fixed asset.

1 – Seasonal Line of Credit

This program supports the buildup of accounts receivable, inventory, or labor and materials beyond normal usage due to the need for seasonal inventory.

The loan advances against your company’s anticipated inventory and accounts receivables. Your company has to have been in business for a period of twelve months and it must be able to demonstrate it has a definite and established seasonal pattern. This type of loan can be used repeatedly after a clean-up period of 30 days, when it can be used to finance a new season’s activity. The maturity for these kinds of loans can also be for up to five years. The company might not have another seasonal line of credit outstanding. However, it can have other lines which it is using for its non-seasonal working capital needs.

2 – Contract Loan Program

A borrower can use this particular program to finance costs associated with contracts, subcontracts, or purchase orders. You can also use this kind of loan to finance direct labor and material costs associated with the performance of assignable contracts. The proceeds can be disbursed even before the work starts. If you use this loan for one contract or subcontract when all of the expenses are incurred before the purchaser pays, then the loan will generally not revolve. If the loan is used for more than one contract or subcontract, or if it is used for any contracts and subcontracts where the purchaser pays before all of the work is accomplished, then the line of credit can revolve. The maturity of this type of loan is generally based upon the length of the contract, but for no longer than 10 years. Contract payments often go directly to the lender. However, alternative structures are available.

3 – Builders Line

This program can provide financing for small contractors or developers to construct or rehabilitate residential or commercial property for sale to a third party not known at the time construction and/or rehabilitation starts. Maturity for this loan is usually three years, but that can be extended for up to five years, if necessary, in order to facilitate the sale of the property. You must use the proceeds solely for direct expenses involving acquisition, significant rehabilitation and/or immediate construction of residential or commercial structures. The purchase of the land can be included so long as it does not exceed 20% of the proceeds of the loan. Plus you can use up to five percent of the proceeds for community improvements to benefit the overall property.

This type of loan is specially designed for general contractors or builders who construct or renovate residential or commercial structures. Borrowers like you use this type of loan in order to finance direct labor and material costs. In this instance, the building project serves as the collateral.

4 – Working Capital Line of Credit

This specific program works as a revolving line of credit (for up to $5,000,000) for your business. You use it in order to obtain short-term working capital. Businesses which usually use these lines will provide credit to their customers or they might have inventory as their primary asset. Loan disbursements are generally based upon the size of a borrower’s accounts receivable and/or their inventory. Loan repayment comes collecting accounts receivable or selling inventory. There can be added collateral servicing and monitoring. For this, the lender can charge the borrower additional fees.

9. Private investor financing

Two popular ways of getting private investor financing are angel investors and venture capitalists.

First, we looked at angel investors. According to Investopedia: “Angel investors invest in small startups or entrepreneurs. Often, angel investors are among an entrepreneur’s family and friends. The capital angel investors provide may be a one-time investment to help the business propel or an ongoing injection of money to support and carry the company through its difficult early stages.”

The term ‘Angel Investor’ comes from Broadway Theater. Angels were originally the investors who backed plays, and they still do so. They are also called patrons of the arts.

Anyone can be an Angel Investor. Angels are not covered by the Securities Exchange Commission’s (SEC) standards for accredited investors, but a lot of them are accredited investors anyway. To become an accredited investor, an angel has to have a minimal net worth of $1 million, and an annual income of $200,000.

According to Inc. Magazine, the biggest angel investor is Jeff Clavier, who has invested up to $6 million in almost 20 companies. He is the founder of a seed venture capital company in Silicon Valley, Uncork Capital. Mr. Clavier is both an angel and a venture capitalist.

However, there are a number of angels who aren’t millionaires. They could be friends or colleagues sitting on home equity, or local professionals who are looking to invest. Consider people you know well and people you don’t know so well.

Affiliated angels are people you know, such as friends and family; coworkers, managers, and employees; and customers, suppliers, vendors, and even competitors. Unaffiliated angels are the people you don’t know, like area professionals; entrepreneurs; and middle managers unsure about their financial futures, looking for an investment. Unaffiliated investors are likely to, obviously, need more assurances from you than the people you know will.

Angels are informal investors. They generally invest in the start of a company. This is in exchange, usually, for equity. They can even invest via a crowdfunding platform.

The most profitable angel investment of all time was Google. Jeff Bezos gave $125,000 in 1998, investing at 4¢/share. Bezos also got in on Twitter in its second round of funding. This is why, according to Bloomberg, he’s worth over $100 billion.

Angel investors who seed startups which fail in their early stages will lose their investments completely. Therefore, professional angel investors look for opportunities for a defined exit strategy; acquisitions or initial public offerings (IPOs).

The effective internal rate of returns for an angel investor’s successful portfolio runs from 20 – 30%. This is a higher rate than banks will take. But bank loans and credit are often not an option for startups. As a result, angel investments can be ideal for entrepreneurs who are still financially struggling during the startup phase.

Companies can connect to affiliated angel investors by just asking. Companies connect to unaffiliated angel investors in much the same way they can connect to other people who can help them who they don’t know, or don’t know well, such as through cold calling, advertising, business brokers, and intermediaries and networking.

To find angel investors online, try Gust (Used to be called Angel Soft), at: www.gust. com. They keep a database of investors, companies, and programs. Startups can also search for business plan competitions and more.

Look up investment groups; this includes a profile with information on which industries they typically fund. When you look up programs, this includes deadlines and basic information like the $$ amount they fund. And when you look up companies, it includes a profile where the founders can add basic data and a pitch video. Gust gives the search for angel investors more organization, but it’s not the only way to find angels.

Entrepreneur Magazine suggests sites like Funding Post and ACE-NET. They also suggest trying every possible investor because being turned down by 100 investors doesn’t mean the 101st will turn you down. In addition, Entrepreneur notes that angel investors will often start small, so if you can prove your concept to them, and they start to see success, then they might add more funding.

Angel investor groups’ focusing and requirements vary; some concentrate on local startups only. Read up before you ask; don’t waste yours and the angels’ time if there won’t be a fit.

Angels are not quite the same as venture capitalists. An angel investor will typically invest in early-stage or startup companies, in exchange for a 20 – 25% return on their investment. Angel investors tend to invest less, and will also want less control, than venture capitalists tend to.

What is a venture capitalist? According to Investopedia: “A venture capitalist is an investor who either provides capital to startup ventures or supports small companies that wish to expand but do not have access to equities markets. Venture capitalists are willing to invest in such companies because they can earn a massive return on their investments if these companies are a success.”

Venture capitalists will also give money to help build new startups, if the VCs believe a company has both high-growth and high-risk potential. These can be fast-growth companies with an exit strategy already in place. Venture capitalists will often look to recover their investment within a 3-5 year time frame. They will also, often, want to own a larger piece of a company if not a controlling stake. People like Jeff Clavier do both, probably depending on the amount of risk and the expected amount of return.

Apart from Clavier, other well-known venture capitalists include Facebook’s first investor, Jeremy Levine (also Pinterest’s largest investor); Early Facebook investor Jim Breyer; Twitter investor Peter Fenton; PayPal’s cofounder, Peter Theiland; and Chris Sacca, who is an early investor in both Twitter and Uber.

One path to becoming a VC is via tech-oriented investment banking. The other, more common method is through serial entrepreneurship. That is, a person with a company (or companies) backed by VCs, is more likely to eventually become a VC.

Venture capitalism is fairly new; it only goes back to about World War II. Before that, companies would have wealthy backers; those were the Vanderbilts or the Rockefellers. Venture capitalism meant new companies did not have to be backed with old money.

Fairchild Semiconductor was the first startup backed with venture capital. They were founded in 1957 and funded in 1959. At the time, VCs would set up limited partnerships to hold investments, where professionals would act as general partners, and anyone supplying capital would be passive partners with more limited control. That is still, usually, the way it’s done.

Venture capitalists look for a strong management team; a large potential market and a unique product or service, with a strong competitive advantage. They also seek opportunities in industries they have familiarity with, and the chance to own a large percent of the company, so they can influence its direction.

Venture capitalists can experience significant losses if their picks fail. However, these investors are typically wealthy. They are often so wealthy that they can afford to take the risks associated with funding young and unproven companies, so long as they seem to have a great idea and a great management team.

A Venture capital firms is put together when a fund is created from pooled money. These funds come from the venture capital firm itself; wealthy persons; pension funds; foundations; insurance carriers; or corporate pension funds, etc.

All partners have part ownership over the fund. However, the VC firm controls where the fund is invested. Investments are usually into businesses or ventures which most banks or capital markets would consider too risky for an investment. The venture capital firm serves as the general partner. The insurance companies, pension funds, etc. are all limited partners.

Venture capital fund managers are paid with management fees and carried interest. Depending on the VC firm, about 20% of the profits go to the company managing the private equity fund, while the rest goes to the limited partners who invested into the fund. General partners usually get an additional 2% fee.

While roles will vary, there are usually three positions within a VC firm: associates; principals and partners.

Associates usually have experience in business consulting or finance. They sometimes have a degree in business. They often do more analytical work, and analyze business models, industry trends and subsections. They also work with companies in the firm’s portfolio. Associates will start off as junior associates and move up to senior associate positions after a few years.

A principal serves as a mid-level professional. They generally serve on the board of portfolio companies, and are often in charge of making sure the companies in the VC firm’s portfolio are operating smoothly. They are in charge of identifying investment opportunities for the firm, and also negotiate terms for both acquisition and exit.

Principals can become partners; this depends on the returns they generate from the deals they make. Partners are mainly focused on identifying areas or specific businesses for investment. They also approve deals such as investments or exits. Partners sometimes sit on the board of portfolio companies. In general, their role is to represent the VC firm.

Venture funding comes in stages and not all at once. Usually, there are six stages. These more or less correspond to these stages of a company’s development:

● Seed funding: The earliest round of financing needed to prove a new idea; it comes from angel investors or, lately, equity crowdfunding

● Start-up: Early stage firms which need funding for their expenses from marketing and product development

● Growth (Series A round): Early sales and manufacturing funds; it’s typically where VCs enter the picture. Series A is essentially the first institutional round. Here is where most companies will have the most growth.

● Second-Round (AKA Series B): This is working capital for early stage companies which are selling product, but not yet turning a profit

● Expansion: AKA Mezzanine financing; it is expansion money for a newlyprofitable business

● Bridge Financing: a startup seeks funding between full VC rounds. The aim is to raise smaller amounts of money instead of a full round; usually the existing investors will participate

VCs usually leave via a secondary sale, an IPO, or an acquisition.

10. Business Credit

Business Credit is credit in your business’s name and not your own. It takes some time to build. But if built the right way, you can save time, and also save your consumer credit scores.

Business credit starts with company legitimacy. Bake legitimacy into your business with a DBA; a professional website with email on the same domain; a toll-free number and fax number on 411.com; and a professional business address – a virtual address is acceptable so long as it isn’t a PO box or a UPS box – Regus is one company that sells virtual addresses.

One proven method of getting started in building credit is what’s also called vendor or trade credit. This is often credit for items you purchase all the time. True starter credit can give you Net 30 terms. You will often need to buy a few things you don’t need, and you may need to reapply if not accepted. In addition, not every vendor reports trade credit to the credit bureaus, so find out if your vendor does and act accordingly.

Vendor credit is often very easy to get. It establishes a relationship with your company and the vendor. It often supports a local business. For trade credit, work with at least 5 vendors who report to at least one of the CRAs. Eight or more such vendors are ideal.

Here are three we like:

● Monopolize Your Marketplace

● Uline Office Supplies

● Quill Shipping Supplies

Even non-reporting trade lines can help if you request a trade reference. Per Dun & Bradstreet (http://www.dnb.com/perspectives/finance-credit-risk/what-is-tradecredit-and-how-can-it-help your-business.html): Suppliers reporting their positive experiences to the credit reporting bureaus are creating what are called trade references. Trade references can often give potential lenders a clearer perspective on your ability to pay back. This is information beyond just the numbers. It can make it clear if you engage in risky practices, such as putting off paying your suppliers to pay utilities. It’s some of the only subjective information in a credit report, because objective data comes from reporting vendors, court dockets, etc.

Do you have 5 – 8 trade lines reporting? Then move onto revolving store credit. This is places like Walmart. You’re more likely to find what you need. Once you have established decent vendor credit, your business should be able to qualify for store credit. Do you recall when you were building personal credit? Some of the first places to send you credit offers were probably businesses. The same can work for business credit.

Sometimes, in order to establish good store credit, you will just have to buy some things you do not need. This is to get a payment history going. Why not consider donating those things to charity?

Do you have 10 revolving store credit lines reporting? Then move onto fleet credit. This is credit to maintain and repair vehicles. It is places like Chevron. Fleet credit is a credit card which helps your business to maintain a set of vehicles. These are usually fuel cards. They can be used to purchase fuel, repairs, and maintenance. You could provide fleet cards to all of your business’s drivers for their company use.

Keep going with trade accounts. Consider all of the vendors you work with regularly, and open trade accounts. Try office supplies, cleaning services, caterers, or vehicle repairers. You’re working toward 10 – 14 or more trade accounts.

Do you have 14 fleet credit lines reporting? Then you can move onto cash credit.This is from companies such as MasterCard. It’s accepted in a lot more places. Good business credit will help you get loans in the future. This cash credit serves as a shortterm cash loan to a business. The lender provides this type of funding, but only after getting the required security to secure the loan. Once security for repayment is given, the business receiving the loan can continuously draw from the bank, up to a certain specified amount.

Having so many payment experiences, and enough time in business, your company might start qualifying for conventional loans. But you might find you just don’t need them after all.

Appeared first on http://ebprofessionals.com 10 Ways to get Business Credit Lines and Loans Based on Only your Revenue posted first on https://ebprofessionals.com/