Friday, December 23, 2016
Bad Credit Loans are fundamentally debt consolidation loans with higher interest rates that can be utilized for many purposes. For example, if you receive a couple of unpaid debts, people with bad credit can apply them for debt consolidation, which is relatively simpler to manage because debt consolidation unremarkably furnishes a lower interest rate . Bad credit becomes an consequence, when you demand to make up a major purchase that would admit acquiring a mortgage loan, auto loan or personal loan. When you go for for a loan or a line of credit, the creditor with whom you are applying for a loan, directly pulls your credit history file.
Bad credit repair program is a super time saver. You can for sure repair bad credit yourself without a credit repair software application to test and find your online history, but actually bad credit will demand many credit repair letters and wearisome days and weeks to optimize, whereas a credit repair software program can automate the work considerably without the risk of missing anything in the mail. You can have bad credit rubbed out lawfully. And this really helps out hugely because identity theft is growing more mainstream and this type of software forbids you from losing anything in the postal service.
Credit repair counseling can be employed in many directions; to prevent debt, to get out of debt, and to stay out of debt. When utilizing credit repair advice to prevent debt, it is essential that an individual realize the difference between using their credit options a healthy way, and taking advantage of lending extended to them. Financial conclusions are personal, dependent on an individual's position. Consult with a financial counselor before making any financial conclusions to determine if they will show you the free credit reports they will use to help.
And many a times people have to apply for bad credit personal loans or perhaps bad credit auto loans depending on the interest rate presented to you prior to getting that new automobile when you can't make those unworldly payments.
Consumer reporting companies must investigate the items in question - commonly inside 30 days - unless they consider your dispute unimportant. They must also forward all the pertinent data you supply about the inaccuracy to the organization that provided the data. Consumer Credit Counseling Service furnishes budget counseling, educational programs, debt management assistance and housing counseling. On That Point are likewise numerous local branches of this nonprofit organization, so check out for one near your location.
Consumers with less-than-perfect credit ratings may be lured to employ the aid of a company assuring to "straighten out" or "erase" bad credit. Credit repair companies can do nothing for you that you cannot manage for yourself for free, and they may charge you hundreds of dollars to arrange it.
Debt consolidation can equal the optimal pick if you are experiencing financial troubles. Always keep in mind that debt expiration do vary, as well as assessments status. If you possess delinquencies and charge-offs that are affecting your credit scores, credit and loan credit repair could be an option looked at when speaking to credit debt counselor during your bad credit counseling session.
Lenders are more unintentional these days to provide student loans to an individual who has a bad credit history. Thus if your credit score is below 600 and you're wanting to obtain a loan for school, you might want to check out a credit repair service . Lenders will apply this selective information to find if you are suitable for a loan or line of credit. When they learn this "bad" information, they will most likely bill you a higher interest rate or worse, turn you down completely.
Ask the credit reporting agency for a dispute form or submit your dispute in writing via a credit repair letter, along with whatever supporting documentation. Likewise make sure to not send them original written documents , make a copy of that document and send it with credit repair letter. Ask your creditors to report the debt as paid to the credit agencies at once so this can reflect on all of your credit reports. You can also fax or send a copy of the debt settlement letters to the credit agencies yourself so they can update your credit history faster which presents you a huge relief.
Bettering poor credit can constitute a long and hard process. If you have struggled through a period of time of financial difficulty, or yet filed for bankruptcy, your power to obtain credit may be compromised long after you have gotten back on your feet and back to good credit. Amending your financial position will have a positive affect on every last facets of your life.
The only bad part is that unlike debt consolidation companies, such lenders charge a much higher rate of interest on the excuse that they are taking a higher risk. It is where debt consolidation companies get an edge over such lenders. A debt consolidation company offers a very low interest rate as well as it provides various free services for you in order to enable you to manage your debts and credit score. That is the reason why debt consolidation loan is also treated as credit repair loans.
A Debt Consolidation Loan is a Service
You must understand this fact that a debt consolidation loan is not exactly a loan. Unlike the loans provided by other lenders, debt consolidation is more a service than loan. When you apply for a debt consolidation loan, the debt consolidation companies assign a debt consolidation specialist for you. This specialist reviews your financial and debts related problem, and based on the review, they suggest you the debt consolidation solution that best suits your need.
In addition to this, they also provide valuable suggestions to you, such as, what techniques you can follow to manage your debts etc. They keep guiding you on every step. If you follow those suggestions and take the precaution as told by them, you cannot only pay off your debts with much ease, but you can soon rebuild your credit score.
Overall, debt consolidation loans are designed in a way to help you not pay off the debts but also to rebuild and maintain your credit score. Therefore, it is not an exaggeration if we refer debt consolidation loans as credit repair loans.
A New companies ability to use technology and certain algorithms to determine why the credit bureaus give the ratings for both good and bad credit for business has been a tremendous break through for many.
Below are some of the more critical steps needed to effectively establish corporate credit.
Form a business entity. You can incorporate yourself, whatever you need to do form a Corporation. There is plenty of information on the web to make is easy for people to learn how to incorporate. Be sure and the business is set up complete and properly.
The business will need a bank account, a phone line, a business license, a website, e-mail, everything that will appear as you are an operating business with a bright future, especially when attempting to obtain corporate loans.
The key is to present a true business presence.
You can however operate from home as long as you have a dedicated business line that is answered in the name of the business or a voice mail box that answers in the name of the business. There are corporate services that will help with these types arrangements but they are not necessary, and corporate strategies such as this can sometimes hinder the process. This is why a good online business credit system is so essential, it will guide you every step of the way.
The next step after you have form Corporation, establish a business profile with the major business reporting bureaus. Dun & Bradstreet, Equifax Business, Experian business.
This can be done easily with a good corporate credit online system. Be sure the system you use is integrated directly with Experian. There is a corporate strategy that will set up the credit bureau profiles for the business entity, so be sure to do your homework and seek out the various methods used by the system you choose.
Do your research to determine the latest 20 item checklist that will need to be completed before you begin the application process. Once you have met the 20 item checklist which is detailed in a good business credit system, you can move forward to applying to the specific lenders that will actually report your credit profile for your company.
Just because the lender claims to lend unsecured loans,does not mean that they will report your good credit. It's important to understand which lenders report way and you are in the early stages of establishing corporate credit.
Approximately 1 and 10 lenders actually report. However once your credit is established then it is okay to borrow from these lenders, you simply will not benefit from your timely payments, but will benefit from the credit itself.
Because getting the credit is more important than having it reported in some cases. A good business credit system will have a updated network of banks, credit card companies, bad credit car lenders, guaranteed unsecured loans, and Corporation services, no credit check loan, small business lines of credit.
An online system will quickly identify the lender's their best to use to help your specific business and S. I C. code build a good credit foundation.
The Basic Building Blocks. You will start with 5 small supply credit accounts. You will then advance to 3 major credit cards with Visa, MasterCard etc. you will then be position for a line of credit from the bank.
At this stage you will have plenty of unsecured loan, small business line of credit, and other unsecured bad credit credit cards, to utilize.
A solid business credit foundation will have a variety of reporting accounts. Smaller credit cards, major credit cards and bank lines. This is what the banks want to see. Many small accounts reporting a positive pay history are stronger than a single large account.
Those who have bad personal credit don't have to obtain credit credit card type loans and more. Business financing has some of the most competitive rates that exist on the market today. Taking the time to establish these lines of credit and obtain a perfect business credit score will avoid searching around and seeking lines of credit when unprepared.
Business owners who wait to the last minute to obtain financing when they needed the most can spend months seeking unsecured loans that they may never receive. Plan ahead and think long-term when establishing business credit to avoid getting caught up in this common routine.
Follow the above strategy and you will have a solid foundation for corporate credit. With systems corporate financing today you can obtain thousands of dollars in financing at a fraction of the cost compared to what it was in the past.
Take advantage of a good corporate credit system and and learn why those who do have a significant Head start on the competition.
This number assess a business's lending risk much the same as a consumer credit score reflects a consumer's individual credit risk.
Paydex is essentially the business equivalent of your personal credit score.
The exact definition from Dunn & Bradstreet, or D&B is: The D&B PAYDEX® Score is D&B's unique dollar-weighted numerical indicator of how a firm paid its bills over the past year, based on trade experiences reported to D&B by various vendors.
There are many BIG differences from a business Paydex score and an individual FICO consumer score.
Consumer FICO credit scores range from 350-850. The Paydex Score ranges from 0-100 with 100 being the highest score you can obtain.
Individual credit scores are calculated based on a number of factors.
The Paydex score is calculated based on only one single factor; whether a business makes prompt payments to its suppliers and creditors within the agreed upon terms of payment.
Most lenders and suppliers are looking for a score of 70 and higher. Having a score of 80 and above is very good.
Here is a breakdown of how the Paydex business score is calculated:
100 Expect payment may come early
90 Payments generally come within early
payment discount period
80 Payment is prompt
70 Payment comes 14 days beyond terms
60 Payment comes 21 days beyond terms
50 Payment comes 30 days beyond terms
40 Payment comes 60 days beyond terms
30 Payment comes 90 days beyond terms
20 Payment comes 120 days beyond terms
If you own a business, your Paydex score is essential in establishing new credit and continuing to build credit limits exceeding $100,000.
It only takes 60 days to establish a positive Paydex score. To start you will first want to apply for a
DUNS Number, a nine digit business identifying number, with Dun and Bradstreet.
The DUNS Number helps potential customers, lenders, and suppliers evaluate your business's credit worthiness.
Once your DUNS number is established you will next want to find a merchant who will extend you credit and then report that credit to Dun and Bradstreet.
Once you have positive business credit report to Dun and Bradstreet you will have a positive Paydex score established.
You will want to then apply for more business credit and use it regularly. Make sure you pay all payments back early to raise your scores to 80 or higher.
You can easily and quickly establish a positive Paydex credit score.
As you continue to pay your bills timely your scores will continue to raise giving you the ability to qualify for credit in your business name.
Ty Crandall is a published author and international authoritative expert on building personal and business credit profiles and accessing money for business owners.
He has spent over 12 years in the financial and credit arenas helping clients establish and maintain excellent business and personal credit scores.
Ty is currently the CEO of Elite Business Inc.
At Elite There he specializes in helping business owners establish excellent business credit scores and then leverage those scores to access cash and credit for their businesses. Ty is also the mastermind behind the release of the exclusive Business Cash Machine. The Cash Machine is the leading business cash and credit access system in the world today.
For more information on business credit scoring, business credit, or Ty Crandall, visit [http://www.BusinessCashMachine.com] Article Source: http://EzineArticles.com/expert/Ty_Crandall/384096
In the initial stages of building business credit, more often than not, it is necessary to use your personal credit background to obtain funding to finance purchases and attain credit. However, the business credit profile should be separated from your personal one, as relying on one's own funding to finance the business leaves you personally liable.
The process to build up credit for your business must commence prior to starting operations. To start building credit immediately you must be looking on establishing the following:
Business as a Legal Entity
To separate your business credit score from your personal credit score it is necessary to establish your business as a separate entity. To qualify as a separate entity the business has to be structured as a corporation or a limited liability company (LLC).
Tax Identification Number
Acquiring a tax ID number (also known as an Employer Identification Number, or EIN) is the next step involved in building valuable credit for your business. Similar to the personal credit score which is associated with the individual's Social Security Number, the business credit reports are associated to a tax ID number. The federal tax identification number can be obtained from the Internal Revenue Service and there are a several ways to reach them:
• Call the IRS Business and Specialty Tax Hotline at 1-800-829-4933.
• Download IRS Form SS-4 from the Internal Revenue Service website.
• Download IRS Form SS-4 from the Small Business Administration website and submit to IRS by mail or fax. Directions for the SS-4 forms are provided online.
Business Bank Account
Opening a business bank account allows you to separate business funds from personal funds. Furthermore, a business bank account can also serve as a bank reference when applying for business credit.
How To Start Building CreditWith A Business Credit Card
As a business credit card can be used as a revolving credit line, it is simplest way to build up credit history with on-time payments. Timely payments eventually improve your company's credit worthiness which facilitates your ability to acquire a business loan. Therefore, use a business credit card for payments whenever possible. Unlike personal credit cards, having multiple active business accounts can be positive, provided that they are in good standing. However, limit the number of business credit cards when beginning and as the company grows you can continue to acquire more.
Business Phone Number
Acquiring a business phone line is important as business credit reporting agencies use the phone number to index your business in their databases. In addition, the credit reporting agencies use the telephone number as proof that you are actually conducting business.
Be sure to supply the exact same business address and phone number to every credit agency and trade credit vendor. Ensure that the business address and phone number are also listed in both the 411 Directory (White Pages) and the Yellow Pages.
A D-U-N-S Number
The D-U-N-S Number is a 9-digit number issued by Dun and Bradstreet that most companies utilize it to verify the credit history of businesses. The United States government and many corporations require their suppliers and contractors to have a D-U-N-S Number. Keep in mind that having a D-U-N-S number is just the beginning. You will need to start building your company's credit profile by doing business with creditors and/or suppliers that report to Dun and Bradstreet.
How to Start Building Credit By Registering with Credit Reporting Agencies
Many of your company's lenders and suppliers report information to the business credit reporting agencies about your company, such as how your business pays its bills or loans. There are many business credit reporting agencies such as D&B, Experian Business, BusinessCreditUSA, FDInsight, and ClientChecker. The majority of suppliers, creditors, and lenders pull their reports from Dun and Bradstreet, Experian and, Equifax Business. Registering an account with these 3 business credit reporting agencies is a good start.
Registering enables your company to start building credit through their credit databases. The database can also be used by potential customers, suppliers and lenders to obtain fundamental information about your company. As it is not mandatory, it may be necessary to ask businesses that you work with to report your timely payments to these business reporting agencies. These submissions enhance your credit rating and verify your registration with the business credit reporting agencies.
Before conducting business, it is necessary to obtain all registrations, permits and business licenses that are required in your jurisdiction.
In summary, once the above list has been completed, the process of building business credit profile can commence. Obtaining trade credit with vendors is a good place to start. To build up credit score, it is important to seek vendors and suppliers that are set-up to report your company's payment history to the credit reporting agencies. Naturally prompt payments for purchases are essential in leading to a good credit score. If the business has an existing loan, timely payment of the loan can also help you establish a better business credit score.
As it is with the individual credit scores, it is important to review your business credit scores from credit bureaus once or twice a year. Make sure the information is accurate. Upon finding errors, contact the appropriate bureau and report the errors immediately with proper documentation. As the business credit report affects the operations of the business, it is to your best interests to have these agencies present an accurate picture of your business.
Tuesday, November 1, 2016
Your own personal line of credit is valuable. A personal loan entitles you to spend up to a specified limit in accordance with your approved credit line. Normally, the maximum amount for cash on demand loan is $8,500 going beyond that you would have to take out a home equity loan. Cash advances taken from your own personal line of credit are obtainable at most ATM machines. When you are approved for a personal line of credit a card will be issued that is usable at ATM machines for your personal convenience. There are four easy ways to use your account, of which most prefer the ATM machines, but you can utilize checks. Your checks are accepted anywhere that accepts personal checks. You may request that a cash advance be transferred into your checking or savings account withdrawing at your own convenience. It is easy to have all your bills placed into one account and the cash advance deposited in order to meet your financial obligations. The four systems work quickly and conveniently without any problems.
A personal line of credit does not come without cost. There are ways to calculate your payments but a minimum amount of $20 is always expected monthly. You may calculate the payment by taking one percent of the account balance rounding off to the nearest dollar amount, add finance charges and fees, this will lead you to your monthly payment amount. The company that you borrow the money will send you a statement each month that you can use to make your payments. You normally can call a toll free number accessing your account giving you the balance and pay amount due on your account.
Cash on demand is a revolving line of credit that credit card holders continue to access for funding up to the limit allowed. The limit is set by your credit standing and your income. The amount of credit that you are allowed may not always be the full maximum amount. In some cases the allotment is based on income and the demand for pay back at the end of each month. This is a short-term payday loan line of credit. People with an excellent line of credit are afforded much liberal terms, a higher amount of credit line and longer time to pay back the amount due.
The line of credit is still issued to those who have less than perfect credit to enable them to rebuild their credit status. In order to get such a line of credit you must come into the office of a finance company, however, you can get a pre approval over the telephone. Finance companies do try to make it as easy possible for anyone who is interesting in borrowing money to set up a line of credit. Many financial institutions work with those who have a less than perfect credit record to help build up their status. When a person pays the financial institution on a timely manner normally they will be given a higher limit to borrow.
Thursday, September 1, 2016
Most people who are looking for funds for renovations, additions, business expansion, or other financial needs turn to equity lines of credit or other types traditional credit loans. These types of lines of credit are popular and relatively simple to get, but what if you do not have any equity or assets to borrow against? If you find yourself in need of a line of credit but do not have any assets for collateral, or do not want to risk your valuable property you do have, and unsecured line of credit is another option for you.
An unsecured line of credit gives you the cash you need in the timeframe you need just like any other line of credit. Your credit line is based on an amount determined by your credit history, repayment ability, and income and you can use all or part of it as the need arises. The major difference between an unsecured line of credit and a secured one is that you do not have to put up valuable property but will have to pay a higher interest rate.
In order to qualify for an unsecured line of credit you will have to prove that you will be able to repay up to the full amount of the credit line in monthly payments. Your lender will analyze your income to debt level, your credit score and history, your employment history, and may want references. If you have good credit and can afford the monthly payments on the credit line you will probably qualify.
An unsecured line of credit is right for you if you need a credit line but do not have assets to use as collateral. Be careful, however, because it will take more research to find the best deal as they carry higher interest rates than secured credit lines. Talk to the banks in your city to see what the going rate of interest is locally and how much you qualify to be approved for.
National lenders will often have some of the best rates so it is always a good idea to look online for national lender rates. If you cannot find a bank willing to give you an unsecured line of credit you can usually qualify for a credit card, but using a credit card for your cash needs can be risky as many have fees and very high interest. Look into all your options so that you can get the best deal possible on your credit line.
Anthony Griswold creates articles about unsecured financing. He has years of experience in dealing with unsecured lines of credit.
Monday, August 1, 2016
Commercial hard finance provider is a company or a private person loaning financial support. Often money-making hard cash loans are being issued with a higher interest rate than the traditional hard cash loans. Commercial hard money loans are usually being given for a short period of time and sometimes they are called bridge loans or bridge financing.
As traditional commercial hard money loan programs are very risky and have a higher than average loans likelihood of default, money-making hard finance providers offer a wide range of requirements on the type of real estate, special loan-to-value percentage and the certain minimum loan size for a money-making hard cash loan.
Bridge lender programs and commercial hard money loans:
Bridge lender programs and money-making hard cash loans are similar to the traditional hard money in the part of terms of the interest rates and loan to value requirements. A commercial hard cash lender or a bridge lender could usually be described as a strong financial institution with a large deposit reserves. Making a discretionary decision on a not conformed loan is totally in his power. Usually money-making finance providers (or borrowers) not conforming to the standard guidelines of a residential conforming credits.
And because of the fact it is a commercial property, commercial hard cash loans usually also do not conform to the guideline of the standard commercial loans. It is the usual and absolutely normal situation if the borrower is in a temporary financial distress or has just a building permit in place. The commercial property may not be in a good and marketable condition for a number of reasons; it may not be completed after the process of construction or reconstruction etc.
Some commercial hard cash lenders (bridge capital groups or private investment groups)could require some sale-lease back requirements or the joint venture to create an additional background for such a risky transaction that has a really high default rate. It is really usual situation when money-making hard finance providers temporarily offer hard or bridge money, allow the owner of the property to buy back his property within only a certain (as usual, not long) time period. If the property was not bought back by purchase or if it was sold within the period of time the money-making hard finance provider would get a right to keep the property at the agreed to price. In the case of default the property owner may lose the property to foreclosure.
Thursday, July 21, 2016
Options for borrower with bad credit are, in general limited to 3 options - SBA commercial loans, commercial hard money and "story" lenders.
SBA commercial loans carry a lot of misperception by borrowers. The biggest and most important for you to know is that NOT all SBA lenders are the same. And more to the point, the SBA never actually loans any of its own money. They only guarantee banks that they will be paid back if the borrower defaults. So the point is that the banks make up most of the underwriting criteria. There is NO minimum credit score that the SBA mandates. For example we work with a bank out of New Jersey that will often fund SBA commercial loans with borrowers credit score in the low 500's.
Commercial hard money is probable the first thought for many when considering a commercial loan with a borrower that has bad credit. Most hard money commercial lenders are interested in the properties equity and or its cash flow and the borrower's credit score is often just an afterthought.
Commercial Hard money lenders want to see at least 40% equity in the property or a 60% loan to value in order for them to seriously consider funding the deal. Speed and flexibility with underwriting are the highlights of commercial hard money. The expense is the downside. Borrowers should expect to pay 3-6% points and have a rate around 13-16%.
"Story lenders" are banks that are willing to listen to the borrower's story about their difficult situation.
They are often willing to overlook many difficult situations such as bad credit, weak business cash flow, high loan to values, etc. Although there are few banks that would describe themselves as a story lender the borrower should look locally or work with professionals in the business that may know of a few banks that can get over their difficulties.
For example, we recently closed a loan that was in foreclosure by refinancing it with another bank that was more willing to listen to the borrower than their existing bank. Their situation was that their loan had ballooned and despite their best efforts they could not get their existing bank to refinance the loan or find another bank that would either. After a year of searching they couldn't get it done and their existing bank put more pressure on them by calling the "note" (forced foreclosure). We knew of a bank out of California that would be interested, provided the borrower refinance some of their unsecured business loans into the proposed loan to improve the borrowers over all cash flow.
So, borrowers with bad credit seeking commercial loans should be prepared for some "brain damage" as they will have to find a viable source after hearing many "no's".
Jeff Rauth is President of Commercial Finance Advisors, Inc out of Birmingham, Michigan. He has a STORE for commercial loan brokers. Contracts, spreadsheets, books, etc. Products starting at $4.95! Check it out commercial real estate loans or commercial mortgage broker store or commercial loan rates
Tuesday, July 19, 2016
Having found out the amount of startup business financing required, you will have to think of a way in which you can get a loan for your business.
o Start-up Financing is available to entrepreneurs whose business is based on a solid business model with a credit worthy structure. o Banks award business loans to those that have a well spelled out plan which showcases your partners, your track record, your strategies and advantages.
Banks are conservative where investments are concerned. The chances of getting a loan will be more for an existing business in comparison to a new one.
o No bank wants to lose money by taking risks. If your business proposes to be a risk, you'll have to work harder to get your small business loans approved
On the other hand, you will be able to acquire a startup business financing loan if you make a good loan request and have a good plan for your business. Help can be obtained from the SBA as well as the Small Business Development Centers can be obtained easily, as they are situated in most major cities in the United States. Your business plan must consist of your personal bank statements, sales and cash projection. If you are taking the help of the SBA then you will need to state how you will reimburse the startup business financing loan and you will also be required to guarantee the same. The bank might want to see your personal investment in the business apart from the time that you give to the business.
o Banks would want to know your business's financial prospects. They want to gauge its worth and how much money you're moving. o Alternative sources, (excluding banks) may want you to "pay" more for your start up business loan. o You may have to pay higher interest rates. You might also need to offer some equity in your business to receive funding
Ways in which you can get loans faster and easily
Financial assistance sometimes comes from institutions in the form of credit or loan. This loan can be obtained at a relatively short period of time and there are financial resources that will help you get the loan. Few of such startup business financing resources are:
- Credit cards: You can get a credit ceiling of twenty thousand dollars (for your small business) from big credit card companies if you have a good credit record. - Unsecured business loans: Try such a loan if you do not want to guarantee the loan personally or if you do not have a credit record. - Equipment leasing/financing: Many companies are willing to lend you the money taking equipment as collateral for your loan. - Asset based loan: is ideal for using equipment to acquire loan, account receivable or leveraging your stock.
o Those having a mortgage with a bank, find it easier to obtain small business loans. o Check newspapers for financing offers. Such institutes grant small business loans and processing might be easier with them. o Availing a start up business loan has become easier, thanks to a growth in competition among lenders. o Plenty of channels are available for raising capital. Most of the above avenues have abundant variations. Build up a solid business plan, along with a financial adviser, and just start asking.
Do not forget to check your financial requirements regularly and inform the investors about the financial position as well as the progress of the business on a regular basis.
Hi, I'm Akhil Shahani, a serial entrepreneur who wants to help you succeed. If you like to work smart, check out http://www.SmartEntrepreneur.net It's full of articles and resources to help you start and grow your business successfully. Please visit us & download our special "Freebie of The Month" at http://www.smartentrepreneur.net/freebie-of-the-month.html
Saturday, July 16, 2016
Successful entrepreneurs keep their overheads low and their productivity high. Minimize the amount of capital needed by keeping overheads low, productivity high, and ownership of capital assets to a minimum. Angel investors want all of their investment put directly into making the business grow in order to insure a high rate of return. Venture capital is only reserved for large scale businesses. Negative economic changes should be discussed in your business plan as it relates to working with a SBA lender, angel investor, or venture capital firm.
If you are seeking to purchase real estate, you may want to work with a private lender that can provide the capital that you need if you do not qualify for traditional mortgage or hard money financing. We will discuss the acquisition of real estate via a number of different financing means as we progresses through these series of articles. Real estate is usually one of the best investments that you can make as an entrepreneur if you are seeking to acquire owner occupied properties that will be used in conjunction with your operations. This is due to the fact that you will be able to generate a very high rate of return on the capital appreciation associated with your building or properties. The capital return related to any real estate investment should be clearly shown in all aspects of your business plan as this is a large appreciable tangible asset.
It is inadvisable for an entrepreneur to wait for the launch of a new business to become knowledgeable in that field. You should review all legislation that may impact your business when you are producing a business plan for an individual investor, SBA loan, or any other type of financing. For the best success, enlisting the help of a highly qualified business plan writing professional is always recommended. As we discussed before, is extremely important that you have a certified public accountant were covered in working with you when you're seeking capital from an outside funding sources.
Angel Investor List Download. No registration required! Includes Free Business Plan Template.
Matthew Deutsch is a prominent business plan writer. His work has been included in nine books pertaining to this subject. Additionally, Mr. Deutsch has written extensively on subjects regarding entrepreneurship, small business lending, angel investing, and other related topics.
Thursday, July 14, 2016
The company’s online funding application service allows U.S residents to apply for funding by answering a few questions and fulfilling some requirements, all of which can be done online.
Get Started Now at Click Here!
My Funding Status offers a variety of funding solutions for different needs:
• Unsecured Personal Credit Program (Revolving Accounts) – The Company’s most popular personal product. Used for a variety of personal and business needs. Typical clients receive between 4-8 different Lines of Credit with our different lending partners.
• Credit Based Funding – Personal and Business – Great for Start-ups and Real Estate Investors, $20,000 – $200,000+ in Funding, Funding based on the strength of Personal Credit, 680 scores or better, Equifax Only funding possible. Funding in 7-14 days. 0% interest on most revolving lines for the first 12-months.
• Fix and Flip Loans – Real Estate Professionals, open Line of Credit for investors doing 4-6 deals per year consistently. Up to 90% Loan to Purchase on Rehabs. Access to Hard Money lender network.
• Revenue Based Funding – Loans up to $800,000, NOT based off credit cards sales, Personal Credit is NOT a factor, Line of Credit Options possible. NO Personal Guarantee. Funding in 3-5 days. Minimum $10,000/mo deposits into a business bank account.
• Account Receivable and Purchase Order Funding – Factoring of A/R, Lines of credit based on existing A/R or Purchase Order contracts. Great for Health Care Professionals (Factoring of Medicaid, Medicare, Worker’s Comp, etc.). Great resources for International A/R funding. Government Contractor.
• Equipment Funding Startups okay. The application only lending possible based on personal credit and business history.
• Commercial and Multi-Family Real Estate Funding Purchase, Refinance and Development funding resources. Asset-based funding possible.
• Private Debt/Equity Funding – Will require Debt and Equity position from the capital resource. 10% reserve of funding amount required by the client.
To make it easier for their users, My Funding Status have also introduced to their website a quick questionnaire through which users are able to find the specific type of funding, either personal or business would match their needs. The six question long questionnaire has been created to allow startups, existing businesses, medical professionals, real estate investors and entrepreneurs to get funding option that would ultimately benefit their unique situation.
Visit us at Get Started!
If you are looking for angel investors then you may need a private placement memorandum even if you are seeking to purchase real property assets with the proceeds that you are seeking. The current economic climate has made lending very difficult for people that are involved with this particular industry. Syndicated investments are very important in the world of small business finance especially if you are seeking to acquire an owner occupied property or related asset.
Typically, only highly experienced entrepreneurs are able to raise large amounts of capital specifically for the purpose of acquiring income producing properties. Loans that are provided by angel investors typically are not typically used for real property purposes unless it is for a down payment for the specific parcel. On a side note, before you send any materials to a third-party, your attorney should review each and every document that you produce.
It is important to consult with your CPA as it pertains to funding methods especially for large scale purposes such as owner occupied properties or related real properties. Your certified public accountant will provide you with all of the necessary documentation as it relates to securing a parcel of property, the anticipated appreciate associated with the property, and an applicable loan amortization schedule if it is required by your real estate angel investor.
Additionally, you should always have a property appraiser on hand to ensure that your angel investor understands the value of the property that you are purchasing either for owner occupied usage or for income production. This documentation can be used for soliciting both equity capital as well as debt capital as it relates to your property business.
Angel Investor List Download. No registration required! Includes Free Business Plan Template.
Looking For Angel Investors is a website dedicated to people finding private investment.
Matthew Deutsch is a prominent business plan writer. His work has been included in nine books pertaining to this subject.
As economic cycles turn downward and banks tighten up credit, loans become hard to come by as was in my case during the global recession of 2008-2009. In these tough times, accounts receivable factoring companies are filling in the need by offering the capital businesses need to keep their doors open, and even to grow and expand.
Factoring has become a key alternative finance strategy for many small businesses today. In fact, many small businesses are now preferring factoring over applying for loans with banks and the small business administration (SBA), who often have a more rigorous and lengthy process.
It's also much quicker to access capital when factoring as opposed to the long and painful process of obtaining a loan. What are some of the more common ways companies are engaging in business accounts receivable factoring?
Trucking companies factor freight to cover wages and salaries for drivers. Staffing agencies factor their invoices so they can pay their head count / staff. In medical accounts receivable factoring, which is a very specialized niche, medical companies factor out receivables owed to them by insurance companies and even the government to fund their day to day needs (expenses) in the short term.
Businesses of all sizes are also pursuing accounts receivable factoring companies because these companies also often offer purchase order refinancing, working capital credit lines, growth or expansion funding, inventory financing and other types of asset based lending where businesses take a loan by pledging their physical assets.
Here are answers to three common questions that must be going through your mind right now: Why should you factor?
Simple. It is easier, faster and in many cases can be cheaper. Once you are accepted or have a relationship with a solid accounts receivable factoring company, you essentially have a revolving line of credit with them. Think about it, if a company factors your invoices once, chances are they will do it again, and again, and again. They win, and most importantly YOU win.
Here is the other thing. You no longer have to worry about who will process accounts receivables at your business. when you factor, you are essentially outsourcing the entire function. Let them worry about it while you worry about growing your business!
What size business can factor?
Any kind really. However factoring is most common with small to medium size businesses as large Corporates have their own alternative capital or funding sources. The answer is actually simpler than that. If you have receivables, you can for sure factor.
When should you consider business accounts receivable factoring?
Do you need cash to grow and expand your business? Do you need more funding to run your day to day operations? Who doesn't?
Are you having trouble or simply don't want to acquire a business or SBA loan? If you answered yes to any of these questions and you feel you are ready to take the next step in your business, then YOU SHOULD consider accounts receivable factoring.
Read more about receivable factoring on Curt Matsen, CPA's website here: http://www.accountsreceivablefactoringhq.com
Wednesday, July 13, 2016
It is no longer unusual to hear about start up and small business struggling with the finances of their ventures. More often than not, this does not stem from a lack of proper planning, and from profits that were never realized. There are simply times wherein business capital is no longer enough to cover for all the expenses needed to keep the business operating. And in times like such, business owners need reliable financial institutions that can offer them the working capital financing that they need. In this way, they will not have to waste a day of operations because they do not have money to spend.
Through working capital financing, business owners can have a good range of options when it comes to raising or increasing their business capital. They can select from options like applying for small business loans, making cash advances, credit card factoring, and opening business lines of credit. These are only some of the few financing options that business owners can resort to during those times when they need additional capital for their business.
Among these options, small business loans appear to remain as the most popular. However, it is not all too easy to qualify for a small business loan. A business must have a good credit history to qualify. And to most small business owners, having good credit ratings can be quite elusive. This is because building business credit requires time and time is something that most start up business owners do not have.
This leads most small business owners to consider other alternatives. A merchant or business cash advance is seen as an easier way of gaining additional business capital. So does business lines of credit and credit card factoring. These options do not require good credit scores. What matters more to these options is for small business owners to have good monthly sales volumes. The method of payment and repayment are also less burdensome. Payments and repayments do not come in fixed schedules. Instead, payments and repayments often come as a small percentage of the monthly sales that the business is able to generate.
You can learn more about these working capital financing options through financial firms near your area. You can also go online to learn more about them. Most financing firms already have online presence and these days, you no longer need to physically travel to the nearest financing office to apply for business capital financing options.
Tuesday, July 12, 2016
Generally, hard money comes from angel investors that want to lend against tangible property. The capital does not require that you give any equity to a third-party investor, but instead are hypothecating a piece of property with the risk that you might loss the asset if you do not make timely payments on your loan. As such, you should work closely with your certified public accountant or financial adviser to determine whether or not obtaining this very expensive form of capital is in your business' best interest. You may find that there are a number of alternatives, including potentially selling a portion of your business to an angel investor, that are less expensive then a high yield debt instrument.
One of the things that you will be required to have as you seeking this type of capital is a well written business plan that showcases the financial results of your business. This is extremely important, especially as it relates to the cash flow of your business, as you will need to show that you can repay the debt financing on a timely basis. On a side note, you should also showcase that you are able to afford the upfront fees that are normally associated with a hard money mortgage or similar debt instrument.
Your business plan and documentation package should also discuss the loan to value ratios that will be associated with the real estate purchase or equipment acquisition that you intend to undertake. A professional valuation provided by a third party expert may be required of you by the angel investor or capital brokerage that is working with you on this specific deal.
In regards to finding this type of investor, most mortgage brokerage and mortgage banking firms have extensive contacts among individuals that specifically provide this type of loan. As such, you may want to approach them first prior to finding a private funding source on your own.
In closing, using a hard money mortgage may be in your best interest if you have the requisite capital to support the very high interest and principal repayments. As always, you and your accountant should thoroughly evaluate this type of capital before making any decision.
Angel Investor List Download. No registration required! Includes Free Business Plan Template.
Looking For Angel Investors is a website dedicated to people finding private investment.
To be able to get the need amount of cash to fuel their business plans, businessmen often get a business loan. This can help jump-start their business from the drawing board to the real thing. A loan can provide you with your needed cash for you to start and operate your business. However, taking a loan from the bank and other lending firms will often require you to present your credit ratings. When this happens, people having bad credit history often find it hard, if not impossible to get an approval.
Although you may not have a great credit rating, you still have a chance of getting a business loan to get the cash that you need. This is by getting a bad credit business loan. This loan can allow you to have the money you need for your business without your credit rating being scrutinized. This is mostly offered by lending companies that you can find online. Through it, you can transform your dreams into a reality.
What are the types of loans that you can get with a bad credit loan?
There are two choices that you can have when trying to choose a loan type that is most suited for you. You can either get an unsecured loan or a secured one. Each can present different advantages and disadvantages.
Unsecured business loans are ones that does not require you to have collateral. This type of loan is more risky in the part of the lender. That is why it may not be easy to get an approval for this kind of loan. For lenders that offers unsecured bad credit business loans, being employed can be a big plus when trying to apply for one.
However, even if collateral is not needed and you don't face the risk of losing anything, there are still a few setbacks when applying for this loan. If you do get an approval, you will often need to face higher interest rates, because of the nature of the loan. Aside from that, the amount of money you can have with this kind of loan is lesser than what you can get with a secured business loan.
If you opt to get a secured business loan, you may easily get an approval even with bad credit. There are several lenders that offers bad credit secured business loans online. A secured loan requires that you put up your property as collateral. This allows the lender to have a fall back, in case you fail to make the necessary payments for your debt.
Although you are the one taking the risks with this kind of loan, it allows you to enjoy many benefits which can be beneficial for your business. Since lenders are secured that they can recover their losses even if you default your payment, you are able to enjoy much lower interest rates and is able to get a larger amount. You will also be given a better loan deal with a secured business loan.
Other than that, if you're confident that you can make payments on time, then the risks that you are facing with a secured business loan is quite small.
Willie Rhoades is a finance analyst who enjoys writing about UK loans and unsecured personal loans as well as other related topics.
Some investors have built up to 7-figure unsecured business line of credit.
In the following lines I'm going to give you the steps you can apply and build your own 6 to 7-figure unsecured business line of credit.
First, what is an unsecured business line of credit?
It's a business line of credit that is NOT attached to your investment and is not reported on your credit unless you default.
The lending institution basically gives you a checkbook and trust that you'll use it wisely.
Here are 7 steps you want to follow to succeed in building your Business Line of credit.
Step 1. You need to have a business
Sole proprietorship won't do. You need a Corporation or an LLC, two years preferred. You must have your EIN number. Here is a tip. You can purchase a shell of a two years old business close to nothing. You're instantly ready to apply for your business line of credit.
Step 2. You need to register the business with Dun and Bradstreet.
Dun and Bradstreet is the titan of business credit profile. They control 70 percent of the market share for business credit reporting. Go to http://www.dnb.com and select their premium package. You can call the number on the website.
Step 3. Have a Paydex number.
Just like your personal credit score, your business has a credit score called Paydex score. It is between 0 to 100 (0 been the lowest).
Step 4. No bankruptcy allowed
Although you're applying for an unsecured business line of credit, the lending institutions look at your credit. They expect you to have a score of 680+. Here is the good news in case you have a bad credit. Add a credit partner in your business and apply through him.
Step 5. Apply for your credit line
You're now ready to fill out your applications. Many lending institutions will give you up to $50,000 line. Over that number you need to provide two years tax return and your mother-in-law as a bonus package. There are exceptions. I got approved by Wells Fargo for $100,000 just over the telephone. My advice is to apply for 5 line of credit within 30 days. Here are some names of lending institutions you can apply with: Wells Fargo, Bank of America, Suntrust, Wachovia, WAMU, Bank one.
Jacques Coquerel is a real estate investor based in Atlanta, Georgia. He has made more than 750 transactions since 1996. You may visit one of his sites [http://www.reonline101.com] and receive a 13-part FREE ecourse on real estate investing.
One of the other ways that you can get a bad credit business loan is to work with a private lender. A private lender will look directly at your business rather that your personal credit history. However, and as we have mentioned before, the costs related to obtaining a private investor loan can be somewhat high. This is due to the fact that there is an additional level of risk for the lender. In these instances, you may want to provide a certain level of collateral security to your private investor. If you have a significant amount of tangible assets without a lien then you may be able to negotiate a much better interest rate with a private lender.
Finally, in almost all circumstances where you are seeking an unsecured bad credit business loan you are going to be required to have a business plan. Your business plans should be perfect, as again, you are seeking to obtain credit solely based on your business and not your previous credit history. Your business plan should have a detailed profit and loss statement, cash flow analysis, balance sheet, and a break down of how you intend to use the bad credit loan funds for your business. As always, we strongly recommend that you work with a certified public accountant as well as an attorney when you are reviewing documents related to a bad credit business loan as there may be clauses that you will need to adhere to at all times.
Small businesses can contribute immensely in developing and enhancing the nation's economy. The Small Business Administration (SBA), which is a United States government agency that provides loans to small businesses with the aim of improving the country's financial condition. These loans are meant to support the establishment of small businesses by providing through adequate financial assistance. These loans cannot be obtained directly from SBA, but through a number of their lending partners working in accordance with the SBA rules and regulations.
The SBA offers a wide variety of loans that demand different qualifications of the borrowers. The various financial programs offered by SBA such as surety bonds, debt financing and equity financing are designed to cater to the different financial requirements of borrowers. In order to avail a loan from them, it is extremely important to understand how the SBA works. Let us discuss some basic rules and regulations of the SBA:
•The SBA loans are provided to business owners at a lower interest rate than banks and other conventional lending sources owing to the fact that start-up business owners do not have adequate capital to opt for loans with high interest rates.
•SBA does not provide loans to small business owners directly. Instead, they merely set certain rules and regulations that are strictly followed by their partners, including private-sector lenders, micro-lending institutions and community development organizations, who are authorized by the SBA to provide loans to start-up businesses.
•The loans are provided to the business owners under an SBA guarantee to ensure that the loan is repaid on time to the lending partners. Business owners cannot avail SBA small business loans in case they have the eligibility to obtain loans from other lending sources on affordable and reasonable terms.
•You can obtain SBA loans fast and without any kind of hassles. They can be acquired on an immediate basis as soon as they are applied for. This can be immensely beneficial for start-up businesses that need financial assistance for all their business needs. Delay in acquiring loans can create problems for them in setting up the business.
•One of the most beneficial aspects of SBA loans is that they can be availed even if you have a poor credit record including bankruptcy, insolvency, IVA etc. It can be an excellent way to improve your credit records.
•SBA offers various kinds of loans, including 504 for purchasing real estate and equipment, 7 (a) for common small business loans, disaster loans and microloans. Not all banks issuing SBA loans offer the same loan programs. Moreover, in accordance with individual bank policies, the loan requirements for a particular program can differ from bank to bank.
The SBA rules and regulations for small business loans are designed to help start-up business owners and can be extremely beneficial for them.
Miner Capital Funding, LLC is a reputed finance company providing commercial real estate loans to their clients. One of the leading providers of SBA small business loans, Miner Capital specializes in providing conventional, bridge and SBA bank loans to innumerable clients in USA.