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Keep Business Credit Separate From Personal Credit?

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So, We’ve listed below the advantages for maintaining business credit separate from personal credit? There are many advantages to establishing and maintaining solid business credit.

Protect your personal assets and reduce your personal liability by creating a separate corporate entity and business credit. Establishing your business credit asset only strengthens this liability protection. Now more than ever it is very important to separate your personal credit from your business credit to keep thing separate. This is completely legal and a strategy that the rich use to bounce back FAST!

Do you think Donald Trump was flawed in his bankruptcy experience or was it strategic on how he had a billion dollar bankruptcy and bounced back to become rich yet in only a couple of year again.

Here’s just 5 of these benefits:

  1. Having a separate line of business credit, such as a business credit card, makes it easy to keep your business expenses separate from your personal expenses. This means when it comes time to file your taxes, you’ll already have separate financial records for business expenses and personal expenses, making both your life and your tax attorney’s life simpler.
  2. With a business credit line, you can also extend credit to your employees by requesting additional cards. You can even control how much they can spend by adjusting their credit limits.
  3. With Cash Back Rewards for your business, such as those offered by the First Equity Platinum Visa, you’ll have more money available to invest in the growth of your business.
  4. Perhaps the most important benefit of separating your business credit from your personal credit is that having a separate line of business credit means that your personal credit is protected if your business ever gets in trouble.
  5. With better business credit you will be able to obtain more working capital for your business. You will also be able to borrow money at lower rates.

Business Startup Funding

In the world of small business finance, it is a dog-eat-dog world. There are a large amount of business owners that are constantly vying for a very limited amount of financial resources, resulting in an extreme amount of competition between businesses. If you you find yourself in the position to be opening your own business, you may find that it is difficult to acquire business startup funding if you are pursuing that funding through purely traditional means. Especially in today’s difficult economic climate, it can be next to impossible for a small business to get the business startup funding that it desperately needs. However, there are some tried and true methods that can end up netting you a number of resources.

First, try to look at business startup funding and finance in a more holistic fashion. Instead of just looking at finance as something that you need to go through a bank for, start thinking about other businesses in your area. There are a number of locally owned small business firms that specialize in finding funding for new startup businesses, and are able to help you in a number of ways. Often, these local organizations will have a large network of funding sources that they use for different types of businesses. The benefit of this is that you can use established resources in your community without having to spend the years it would take to develop those relationships yourself. Also consider different businesses that would likely benefit from your business. You may be able to find business owners that would be interested in investing in your business if they get a certain return on their investment. This return could be anything from a percentage on monies invested to an exclusivity agreement to work through the investing business. It really depends on the type of business you start.

Business startup funding can be found in a number of other ways. There are a number of business startup funding websites out there that are very beneficial to their members. Look into crowdsourcing websites that specialize in helping small business owners get funding for their business. For these sites, you submit a proposal of your business and see if anyone is interested in investing in your project. The best the thing about finding business startup funding through a site like this is that the money you get here is given and not loaned. This means you never have to pay it back.

Even if these avenues don’t work for you, you can still go through traditional banks or specialized small business lenders for your business startup funding. These types of institutions can sometimes be the best shot you have when looking for business startup funding because of their resources, however they can sometimes charge higher interest rates on loans than other “investment” options. If you do choose to get your business startup funding through one of these institutions, remember to take everything they say with a grain of salt and read everything you sign.

Business startup funding is not not an impossible thing to come across. With a little research, finding business startup funding will become easier with time, helping you on the road to a successful business.

At Business Credit Sherpa you don’t have a to search using our guaranteed funding system and you’ll get funding for your business without having to search every lender and find out the terms of engagement with all lenders. Using our system you receive access to over 2500 lenders that work with all of ur national clients and they understand our step-by-step process to position and qualify for their programs. Visit our facebook fanpage to get more information. You’ll be glad that you did!

Business Credit Sherpa: Ten Tips to Choosing Your Bank

Business Credit

: Finding the right bank for your business is a lot like finding a mechanic for your car. You  need some objective information first, and the best way to determine whether or not to use a particular bank is to answer the following ten questions. You can use them as your starting point, but remember to dig deeper if you can.

Is the bank healthy with strong financials? Today’s economic climate has caused a recent dramatic rise in bank failures, and you might want to check into the health of any bank you are seriously considering. Don’t pick a bank that you might see the government bailing out six months from now.

Does the bank have a business division focused on lending to small and medium-sized companies? What percentage of the bank’s business is geared towards this market? Look to see if your bank has a number for a business division. You’ll get much more information if you connect with the
right person who can answer your more detailed questions.

Is the bank on the SBA’s current list of top small business lenders? This information can be found on SBA’s most recent study of small business lending activities. Entrepreneur Magazine created a great website on business-friendly banks, broken down nationally and by state. Is the bank familiar and comfortable with your industry? Does the bank lend to your type of business, and what industries does it specialize in? When you contact a business loan officer on the phone, explain your business. Tell them what you do, how long you’ve been doing it, and how fast you are growing. Let her know what you are looking for in a bank, both the relationship you would like to have and the line of credit you want. If they don’t work with people in your industry, ask for bank recommendations. Local banking markets are very well aware of what types of loans their competitors are offering.

Does the bank offer the mix of services and products you want? What kind of services and products do you need? Traditional loans or lines of credit? Credit card or direct deposit? This is the next question after confirming the bank does business in your industry.

Does your desired loan amount fit within the bank’s lending limits? What is their average small business loan? Can the bank grow with you as your financial needs increase? Many banks have different divisions for the different sizes of companies. Smaller banks may have a ceiling on how much they can loan to one business, while larger banks will have a minimum for the loan they give.

Can you secure a meeting with the right person? Get introduced or referred to the bank officers who make the lending decisions. It is great if their superior takes an interest in you, or if your referral is someone they respect. While this won’t guarantee you a loan, it can get you preferred treatment. Is the banker willing to meet with you at your company? Will your banker take time to meet you at your business? If your business “shows” well, a meeting at your company can be a positive.

Does the banker have local lending authority? Some of the largest national and international banks leave lending decisions to each branch. If it’s possible, connect with the person at the branch who is responsible for the overall lending decisions. Connecting personally with them can give you a benefit if you become a preferred customer.

How long has the loan officer been with the bank? What is their level of expertise in working with small and mid-sized businesses? Check their background in both the business and their skills with working with loans in your industry. Most of the time, the person who appears the
most authoritative has the least lending power, so do your homework on who you talk to if possible.

If you need help building business credit or funding solutions, we invite you to register for our complimentary webinar today.

 

 

Get our complimentary ebook, “The 8 Questions You Must Ask Before Working With Any Business Credit Building Company!” Use this e-book to learn how to get $25,000 or even $250,000 to fund your business Today!