I just wanted to take this time to say to everybody I hope that you have an AWESOME
Thanksgiving.
We will see you on the other side, a little heavier but still here.
Pat
www.opportunitycreator.com
Tuesday, November 25, 2008
Tuesday, September 30, 2008
Are You Listening?
I recently overheard a conversation between a salesmanand his prospect. It started off like many interactions.The salesman asked the prospect a few questions, undoubtedly with the intent of building rapport.
And fortunately, the prospect was more than happy to talk...sharing stories about his wants and needs.
But, after a few questions, it became apparent the salesmanwasn't truly listening. At one point, the salesman asked a question the prospect had just finished answering. Needlessto say, the sale was lost.
Successful products, services, companies, salesman, etc. come from listening to customers and prospects and adaptingto their needs and wants. But too many business owners and salespeople are inflexible and follow their own methods and ideas (whether they work or not).
If you want to improve your business, listen to your customersand prospects. They will tell you how to win and keep their business...if you give them a chance. You never know when your next big idea is one a customer passes on to you.
To Your Business Success
Pat Gage
www.10stepstomoney.com
And fortunately, the prospect was more than happy to talk...sharing stories about his wants and needs.
But, after a few questions, it became apparent the salesmanwasn't truly listening. At one point, the salesman asked a question the prospect had just finished answering. Needlessto say, the sale was lost.
Successful products, services, companies, salesman, etc. come from listening to customers and prospects and adaptingto their needs and wants. But too many business owners and salespeople are inflexible and follow their own methods and ideas (whether they work or not).
If you want to improve your business, listen to your customersand prospects. They will tell you how to win and keep their business...if you give them a chance. You never know when your next big idea is one a customer passes on to you.
To Your Business Success
Pat Gage
www.10stepstomoney.com
Wednesday, August 6, 2008
George Ross Talks about Credit Lines
Dear Friend:
Recently I had the pleasure of meeting Mr.
George Ross, who is Executive Vice
President and Senior Counsel of the
Trump Organization and co-star of the
"The Apprentice". He gave a great speech
.... What an amazing person he is.
First let me tell you that when George told
us that he was 87 years old I just about fell
off my chair. Here looks great for his age
and is a very entertaining speaker. I was
fortunate enough to chat with George for a
while about his experiences.
The message that George was stressing in his
speech was that everyone, no matter what your
financial situation is, needs to get lines of
credit. Especially when you don't need them.
You see, that's when the banks are more willing
to lend.
It's like when you're looking to find a companion
of the opposite sex and you go out with some
friends. Doesn't it always seem like the person
who is already attached gets all the attention?
It's the same idea here. The less the desperation,
the more attention you receive (from the banks,
that is).
Now, you'd think that the Trump Organization, with
all their money would just reach into their deep
pockets and pull out a wad of cash from "Hip Nation
Bank", wouldn't you?
NO way! According to George, they do exactly what
I've been teaching you. And that's getting Business
Lines of Credit. And doing it before you need it.
Now, do you think that if Trump, a billionaire,
uses lines of credit, that it might be a good idea for
you and your business to use lines of credit as well?
Do you think following the lead of a billionaire could
lead you down that same path?
As I always say, if you continue to do the same thing
over and over again, you will continue to get the same
results. Do you think you deserve to be rich? I think
you do. Do you want your business to be successful?
Then follow the leads of the big guys and take your
life and business to the next level.
To Your Business Success,
Pat Gage
www.10stepstomoney.com
Recently I had the pleasure of meeting Mr.
George Ross, who is Executive Vice
President and Senior Counsel of the
Trump Organization and co-star of the
"The Apprentice". He gave a great speech
.... What an amazing person he is.
First let me tell you that when George told
us that he was 87 years old I just about fell
off my chair. Here looks great for his age
and is a very entertaining speaker. I was
fortunate enough to chat with George for a
while about his experiences.
The message that George was stressing in his
speech was that everyone, no matter what your
financial situation is, needs to get lines of
credit. Especially when you don't need them.
You see, that's when the banks are more willing
to lend.
It's like when you're looking to find a companion
of the opposite sex and you go out with some
friends. Doesn't it always seem like the person
who is already attached gets all the attention?
It's the same idea here. The less the desperation,
the more attention you receive (from the banks,
that is).
Now, you'd think that the Trump Organization, with
all their money would just reach into their deep
pockets and pull out a wad of cash from "Hip Nation
Bank", wouldn't you?
NO way! According to George, they do exactly what
I've been teaching you. And that's getting Business
Lines of Credit. And doing it before you need it.
Now, do you think that if Trump, a billionaire,
uses lines of credit, that it might be a good idea for
you and your business to use lines of credit as well?
Do you think following the lead of a billionaire could
lead you down that same path?
As I always say, if you continue to do the same thing
over and over again, you will continue to get the same
results. Do you think you deserve to be rich? I think
you do. Do you want your business to be successful?
Then follow the leads of the big guys and take your
life and business to the next level.
To Your Business Success,
Pat Gage
www.10stepstomoney.com
Thursday, July 31, 2008
Business Credit Cards.
To any business, either a start-up or established, business credit cards can be very valuable financial tools if managed properly. Remember also, that because they’re business credit cards, they are unsecured and don’t show up on the owners credit report.
The balances will not show up on your credit report and that won’t over leverage you. Unsecured means there is no collateral put up to get these business credit cards, no house, no car, no kids, wife etc. And did I say that these business credit cards don’t show up on your personal credit report! That is huge!
But if used improperly, it can have a devastating affect on your business’ credit profile, and hence, your business itself.
Managing your business credit cards doesn’t require an MBA from Harvard, or a financial specialist looking over your shoulder every time you plunk it down.
But it does require careful monitoring, and plain old common sense. Here are a few tips you can use to get the most from your business credit cards:
* Always apply at your primary bank first. Why? Because you’ve already established a banking relationship which can pave the way for an easy application process. In short – they know you. Once you get the business credit cards, and pay them in a timely manner, it will increase your credit worthiness in the eyes of the bank. This will be of significant help when you apply for
additional business loans later on.
* Never co-mingle your business credit cards with your personal credit cards. However, here’s a little secret to the game. If you have business debt on your personal credit cards, transfer balance the debt to your business credit cards and this will immediately improve your personal credit score by lowering your debt to income ratio. This is a huge benefit of being a business owner. This will also help you at tax time.
* Once your business credit is established, you’ll be deluged by special offers from credit card companies on a daily basis. When you’re invited to apply and the offer is good, then apply. Remember this: Just because you have applied and received several business credit cards, doesn’t mean you have to use them immediately.
It’s always a good idea to have extra “Rainy Day” money available. Every business goes through ups and downs and having the money available can be invaluable during one of those down times. It’s always easier to get money when you don’t need it.
By all means, use the grace period when paying your business credit cards. Most providers of business credit cards offer a 21-day grace period before payment is due. This can be a big help in improving your cash flow, and it’s built-in for you to use. Don’t abuse it, and don’t pay later than the grace period deadline, however.
Like many business transactions today, you can pay your business credit card bill online. This may not sound like such a big deal, but when you think of the time and effort it takes to write out and mail a check, it’s really a good deal. Especially since the mail can sometimes be unpredictable.
Knowing you can choose the exact date your bill is paid, is priceless. Do not pay your credit card bills late! Yes, take advantage of the grace period, but paying late, especially if it develops into a habit, will end up costing a lot more than the actual bill. Late fees will bring about higher interest rates.
But more importantly, late payments will go straight to your business’ credit profile – and you don’t want it there, especially if you plan on trying to get a line of credit from your bank or lender in the near future.
Pay the bills on time, if possible.
Finally, always remember that your business credit cards can be a very effective tool in managing your company’s finances. But like any tool, if handled improperly, it can cause irreparable harm – in this case, to your company’s business financial profile. Use it wisely! But don't be scared of them!
Any thoughts?
Pat Gage
http://www.10stepstomoney.com
The balances will not show up on your credit report and that won’t over leverage you. Unsecured means there is no collateral put up to get these business credit cards, no house, no car, no kids, wife etc. And did I say that these business credit cards don’t show up on your personal credit report! That is huge!
But if used improperly, it can have a devastating affect on your business’ credit profile, and hence, your business itself.
Managing your business credit cards doesn’t require an MBA from Harvard, or a financial specialist looking over your shoulder every time you plunk it down.
But it does require careful monitoring, and plain old common sense. Here are a few tips you can use to get the most from your business credit cards:
* Always apply at your primary bank first. Why? Because you’ve already established a banking relationship which can pave the way for an easy application process. In short – they know you. Once you get the business credit cards, and pay them in a timely manner, it will increase your credit worthiness in the eyes of the bank. This will be of significant help when you apply for
additional business loans later on.
* Never co-mingle your business credit cards with your personal credit cards. However, here’s a little secret to the game. If you have business debt on your personal credit cards, transfer balance the debt to your business credit cards and this will immediately improve your personal credit score by lowering your debt to income ratio. This is a huge benefit of being a business owner. This will also help you at tax time.
* Once your business credit is established, you’ll be deluged by special offers from credit card companies on a daily basis. When you’re invited to apply and the offer is good, then apply. Remember this: Just because you have applied and received several business credit cards, doesn’t mean you have to use them immediately.
It’s always a good idea to have extra “Rainy Day” money available. Every business goes through ups and downs and having the money available can be invaluable during one of those down times. It’s always easier to get money when you don’t need it.
By all means, use the grace period when paying your business credit cards. Most providers of business credit cards offer a 21-day grace period before payment is due. This can be a big help in improving your cash flow, and it’s built-in for you to use. Don’t abuse it, and don’t pay later than the grace period deadline, however.
Like many business transactions today, you can pay your business credit card bill online. This may not sound like such a big deal, but when you think of the time and effort it takes to write out and mail a check, it’s really a good deal. Especially since the mail can sometimes be unpredictable.
Knowing you can choose the exact date your bill is paid, is priceless. Do not pay your credit card bills late! Yes, take advantage of the grace period, but paying late, especially if it develops into a habit, will end up costing a lot more than the actual bill. Late fees will bring about higher interest rates.
But more importantly, late payments will go straight to your business’ credit profile – and you don’t want it there, especially if you plan on trying to get a line of credit from your bank or lender in the near future.
Pay the bills on time, if possible.
Finally, always remember that your business credit cards can be a very effective tool in managing your company’s finances. But like any tool, if handled improperly, it can cause irreparable harm – in this case, to your company’s business financial profile. Use it wisely! But don't be scared of them!
Any thoughts?
Pat Gage
http://www.10stepstomoney.com
Wednesday, July 30, 2008
What Banks Want For Business Credit Lines
Getting a business credit line from a bank isn’t the easiest thing to do – especially if you’re a start-up. Seed money, working capital, and other forms of loans, require that you pass a series of credit related checks.
So what do banks look for and what can you expect?
We’re going to tell you.
High on the list of establishing business credit is, of course, your personal credit history. No surprise there. If you’re a start-up, lenders will be looking at your personal credit. Banks won’t want to see late payments, missed payments, liens or a bankruptcy. The negative impact of these and other credit deficiencies could have a substantial impact on your loan request. A late payment, here or there, won’t kill your chances, but if there’s a pattern of late payments, it very well could. If, however, you have a good explanation as to why these credit deficiencies exist, your chances of approval could increase. It’s probably a good idea to check your personal credit reports to clear up any possible discrepancies that could adversely affect your application. If your business is a start up, you may need to use your personal credit in the beginning, and while you’re doing that you can begin to establish your business credit profile as well.
But let’s say you’re already in business, and haven’t established a business credit history yet. Now it’s your business’ credit that comes into play. Dun and Bradstreet, Experian, and Equifax are often the sources the banks will turn to when reviewing your business credit reports, including history, public record information, company background and supplier payment history. Whether you’ve been in business one day or 10 years, if you haven’t established a business credit profile, then your business is still at Day One. But it’s never too late to get started. If you’re a start-up, the bank is going to look for some solid financial projections. Remember the projections you use, are based on the assumption that you’re going to get the financing needed. Work with a financial specialist to put your numbers together. The money you spend on a financial consultant will be well worth it, and the bank will appreciate your professionalism.
If you’re already in business, the same applies. But now you have real figures to present to the bank. Assuming that they’re good, that should be it, right? Wrong. The bank is going to want to see what you want the loan for. Working capital, expansion, new equipment are always good. A loan to take your top producers for a rewards week in the Caribbean is not.
Collateral doesn’t have to come into play when you apply for business credit. Why is this? Because the banks lend business lines of credit without it. They’re called unsecured credit cards and unsecured lines of credit. These are great avenues for any business that perhaps doesn’t have the business collateral. It’s never a good idea to use personal collateral to fund your business. The banks will generally lend up to $50,000 without collateral on these types of loans. The banks do require a strong business credit profile and sometimes a good personal credit profile and these can be easily established and obtained. Lenders know that there’s a strong correlation between your commitment to your business and the loan being repaid.
In the end, getting business credit is all about the figures. Do they or don’t they work. If they do, and if you present your case in a straightforward manner, you’ll put your business in the best light, and in all probability, get the loan. Always remember that the bank wants to lend you money. It’s up to you to show that you can repay the loan.
Pat Gage, The Opportunity Creator, and a leading expert in the field of business credit has helped a number of clients target his specialty, starting, expanding, and growing their businesses through his trademarked 10 Steps to Money System. The Opportunity Creator is not only a sought after business credit coach but also a national speaker. For more information on any topic discussed, visit Gage’s site at www.10stepstomoney.com
So what do banks look for and what can you expect?
We’re going to tell you.
High on the list of establishing business credit is, of course, your personal credit history. No surprise there. If you’re a start-up, lenders will be looking at your personal credit. Banks won’t want to see late payments, missed payments, liens or a bankruptcy. The negative impact of these and other credit deficiencies could have a substantial impact on your loan request. A late payment, here or there, won’t kill your chances, but if there’s a pattern of late payments, it very well could. If, however, you have a good explanation as to why these credit deficiencies exist, your chances of approval could increase. It’s probably a good idea to check your personal credit reports to clear up any possible discrepancies that could adversely affect your application. If your business is a start up, you may need to use your personal credit in the beginning, and while you’re doing that you can begin to establish your business credit profile as well.
But let’s say you’re already in business, and haven’t established a business credit history yet. Now it’s your business’ credit that comes into play. Dun and Bradstreet, Experian, and Equifax are often the sources the banks will turn to when reviewing your business credit reports, including history, public record information, company background and supplier payment history. Whether you’ve been in business one day or 10 years, if you haven’t established a business credit profile, then your business is still at Day One. But it’s never too late to get started. If you’re a start-up, the bank is going to look for some solid financial projections. Remember the projections you use, are based on the assumption that you’re going to get the financing needed. Work with a financial specialist to put your numbers together. The money you spend on a financial consultant will be well worth it, and the bank will appreciate your professionalism.
If you’re already in business, the same applies. But now you have real figures to present to the bank. Assuming that they’re good, that should be it, right? Wrong. The bank is going to want to see what you want the loan for. Working capital, expansion, new equipment are always good. A loan to take your top producers for a rewards week in the Caribbean is not.
Collateral doesn’t have to come into play when you apply for business credit. Why is this? Because the banks lend business lines of credit without it. They’re called unsecured credit cards and unsecured lines of credit. These are great avenues for any business that perhaps doesn’t have the business collateral. It’s never a good idea to use personal collateral to fund your business. The banks will generally lend up to $50,000 without collateral on these types of loans. The banks do require a strong business credit profile and sometimes a good personal credit profile and these can be easily established and obtained. Lenders know that there’s a strong correlation between your commitment to your business and the loan being repaid.
In the end, getting business credit is all about the figures. Do they or don’t they work. If they do, and if you present your case in a straightforward manner, you’ll put your business in the best light, and in all probability, get the loan. Always remember that the bank wants to lend you money. It’s up to you to show that you can repay the loan.
Pat Gage, The Opportunity Creator, and a leading expert in the field of business credit has helped a number of clients target his specialty, starting, expanding, and growing their businesses through his trademarked 10 Steps to Money System. The Opportunity Creator is not only a sought after business credit coach but also a national speaker. For more information on any topic discussed, visit Gage’s site at www.10stepstomoney.com
Start A Business With Lousy Credit
You may be trying to start a business, or have one that’s in its initial stages. Your idea is great, your plan is flawless, and your product or service is ready for the fast lane. Only problem is, that super-charged, can’t-miss-small-business of yours is sitting by the side of the road. It’s stuck, and it’s out of gas.
The analogy may not be great, but if you’re in that type of situation, you know what it’s all about. Your personal credit rating is less than stellar. You found out just how bad, when the bank’s Business Loan Officer gave you a look of horror when you told him what you wanted to borrow, and why.
Let’s face it, he probably couldn’t wait to get you out of his office fast enough. Is there anything you can do to jump-start this situation? Yes there is. In fact, there a number of avenues you need to explore.
First things first. There are three credit reporting agencies, Equifax, Experian and TransUnion. You want to get your tri-merge credit report, which is a report from all 3 credit bureaus. Once you get them in hand, you’ll have a clear idea of exactly where you stand – and just as importantly, why.
Review each and every report. Look for errors, because (guess what), the credit bureaus do make them. Maybe a bill they’re reporting as unpaid, involved a dispute. Maybe a credit card purchase wasn’t yours. If you find any glitches, report them immediately to the credit bureau involved. You can also enlist the services of an established credit repair company, if you’re not sure how to handle the disputes yourself.
Creating a business credit profile can also be an answer to your credit issue. By creating a business credit profile, you can start establishing credit for your business, which is separate than your personal FICO score. Establishing a business credit profile can help you get your business started while working to improve your personal FICO score. Once you establish your business credit profile your business can start applying for business credit cards and other types of business financing.
But, when you get business credit cards, keep your personal and business credit separate – very separate. Many folks fall prey to the temptation of using business credit cards for personal expenses. This is more than a red flag to business lenders, it’s a giant red balloon. Commingling your funds can cause many problems for your accountant and attorney. When you commingle your personal and business funds, you open the door to lawsuits and your bookkeeping becomes a nightmare.
Business credit cards can be a great source of financing. One misconception is that business credit cards have a high interest rate. This just isn’t true. Many business credit cards fall in the interest rate range of 8-14%. But more importantly remember this; it’s not always the cost of money that’s important, but the availability of money. Wouldn’t you like to have an extra $30,000, $50,000, or even $100,000 right now to start or expand your business? Make sure you are diligent about making payments on time and, two things will happen: First, the credit card company will court your business, and probably offer you a credit line increase. Second, your credit standing will improve with the bank. Bank’s love it when you’ve demonstrated the ability to pay off a loan – even if it’s not theirs.
Finally, make certain that you use your credit wisely, and strictly for the business. And more importantly, to improve the business – new equipment or hiring employees, marketing, whatever it takes. This will show a Loan Officer that you’re serious about what you’re doing, and will make you a more attractive loan candidate.
Pat Gage, The Opportunity Creator, and a leading expert in the field of business credit has helped a number of clients target his specialty, starting, expanding, and growing their businesses through his trademarked 10 Steps to Money System. The Opportunity Creator is not only a sought after business credit coach but also a national speaker. For more information on any topic discussed, visit Gage’s site at www.10stepstomoney.com
The analogy may not be great, but if you’re in that type of situation, you know what it’s all about. Your personal credit rating is less than stellar. You found out just how bad, when the bank’s Business Loan Officer gave you a look of horror when you told him what you wanted to borrow, and why.
Let’s face it, he probably couldn’t wait to get you out of his office fast enough. Is there anything you can do to jump-start this situation? Yes there is. In fact, there a number of avenues you need to explore.
First things first. There are three credit reporting agencies, Equifax, Experian and TransUnion. You want to get your tri-merge credit report, which is a report from all 3 credit bureaus. Once you get them in hand, you’ll have a clear idea of exactly where you stand – and just as importantly, why.
Review each and every report. Look for errors, because (guess what), the credit bureaus do make them. Maybe a bill they’re reporting as unpaid, involved a dispute. Maybe a credit card purchase wasn’t yours. If you find any glitches, report them immediately to the credit bureau involved. You can also enlist the services of an established credit repair company, if you’re not sure how to handle the disputes yourself.
Creating a business credit profile can also be an answer to your credit issue. By creating a business credit profile, you can start establishing credit for your business, which is separate than your personal FICO score. Establishing a business credit profile can help you get your business started while working to improve your personal FICO score. Once you establish your business credit profile your business can start applying for business credit cards and other types of business financing.
But, when you get business credit cards, keep your personal and business credit separate – very separate. Many folks fall prey to the temptation of using business credit cards for personal expenses. This is more than a red flag to business lenders, it’s a giant red balloon. Commingling your funds can cause many problems for your accountant and attorney. When you commingle your personal and business funds, you open the door to lawsuits and your bookkeeping becomes a nightmare.
Business credit cards can be a great source of financing. One misconception is that business credit cards have a high interest rate. This just isn’t true. Many business credit cards fall in the interest rate range of 8-14%. But more importantly remember this; it’s not always the cost of money that’s important, but the availability of money. Wouldn’t you like to have an extra $30,000, $50,000, or even $100,000 right now to start or expand your business? Make sure you are diligent about making payments on time and, two things will happen: First, the credit card company will court your business, and probably offer you a credit line increase. Second, your credit standing will improve with the bank. Bank’s love it when you’ve demonstrated the ability to pay off a loan – even if it’s not theirs.
Finally, make certain that you use your credit wisely, and strictly for the business. And more importantly, to improve the business – new equipment or hiring employees, marketing, whatever it takes. This will show a Loan Officer that you’re serious about what you’re doing, and will make you a more attractive loan candidate.
Pat Gage, The Opportunity Creator, and a leading expert in the field of business credit has helped a number of clients target his specialty, starting, expanding, and growing their businesses through his trademarked 10 Steps to Money System. The Opportunity Creator is not only a sought after business credit coach but also a national speaker. For more information on any topic discussed, visit Gage’s site at www.10stepstomoney.com
Getting Credit To Finance Your Business
Let’s say your business needs a capital infusion. Things are going well, but you need extra cash to expand, hire new employees, make improvements, increase marketing – whatever. Where do you turn to get the cash you need? Can you leverage your business to fund your goals? And how do you do it? Actually, there are more ways of getting funding than you probably thought.
Assuming your business is in good shape, pays its bills promptly, has a good cash flow, and is professionally managed, you have a lot of options. You can probably narrow down the list by scratching off Venture Capitalists and Angels. The former are only interested in lending you money if you plan to go public at some point. Angels (not the celestial kind!), might be interested if you have a lock on the, “next big thing,” but only if the payoff is calculated in the tens-of-millions of $$. You may not be quite there yet.
What does that leave? One valuable option is to start creating a business credit profile for your business. Creating a business credit profile can be done easily and can offer any number of business loans, from Working Capital, to Lines of Credit, to Construction, to Term Loans, to even business credit cards. If you already have a good working relationship with your Business Loan Officer, this is probably the first place to look, once you have your business credit profile in place. They know you, and you’ll be able to skip much of the red tape. This makes sense a lot of the time. But hold on! You have quite a few other options available.
Business credit cards, for example. All major business credit card companies have branched into commercial lending. Obtaining cash from this method is usually easier than other sources. However, this method of financing still needs an established business credit profile. Because lending institutions don’t lend money to sole proprietors. That’s called a personal loan. This is one option to be considered. Business credit cards can be useful in many ways and have reasonable interest rates as well.
Once you have established your business entity, you will be receiving numerous offers from business credit card companies to apply. This is a great way to have access to capital. Remember that your business credit cards do not show up on your personal credit report. So any business debt that appears on your personal credit can be transferred to your business credit card, freeing up your personal debt to income ratio. This will increase your personal credit score almost immediately. Many times the credit card companies will offer 0% interest for a limited time (I’ve seen up to one year), then have a reasonable interest rate afterwards (anywhere from 8-14%). That’s far better than a hard money lender or private lender.
Then there’s unsecured lines of credit. The objective is to stimulate micro-enterprises and provide unsecured loans of up to $50,000 to small businesses. You can apply for unsecured lines of credit through your bank or many other institutions that offer them. Once again your business credit profile will need to be in place. Typically, an unsecured line of credit has an interest rate of Prime plus one or two points, depending on some factors that are taken into account. But the bonus here is that the money is unsecured which means you don’t have to put up any collateral for it. This type of lending does not require any financial statements as well. This gives you flexibility especially if your business doesn’t have a great cash flow yet. This is a great method for obtaining capital for your business whether it’s to expand, advertise, or market a new idea.
Pat Gage, The Opportunity Creator, and a leading expert in the field of business credit has helped a number of clients target his specialty, starting, expanding, and growing their businesses through his trademarked 10 Steps to Money System. The Opportunity Creator is not only a sought after business credit coach but also a national speaker. For more information on any topic discussed, visit Gage’s site at www.10stepstomoney.com
Assuming your business is in good shape, pays its bills promptly, has a good cash flow, and is professionally managed, you have a lot of options. You can probably narrow down the list by scratching off Venture Capitalists and Angels. The former are only interested in lending you money if you plan to go public at some point. Angels (not the celestial kind!), might be interested if you have a lock on the, “next big thing,” but only if the payoff is calculated in the tens-of-millions of $$. You may not be quite there yet.
What does that leave? One valuable option is to start creating a business credit profile for your business. Creating a business credit profile can be done easily and can offer any number of business loans, from Working Capital, to Lines of Credit, to Construction, to Term Loans, to even business credit cards. If you already have a good working relationship with your Business Loan Officer, this is probably the first place to look, once you have your business credit profile in place. They know you, and you’ll be able to skip much of the red tape. This makes sense a lot of the time. But hold on! You have quite a few other options available.
Business credit cards, for example. All major business credit card companies have branched into commercial lending. Obtaining cash from this method is usually easier than other sources. However, this method of financing still needs an established business credit profile. Because lending institutions don’t lend money to sole proprietors. That’s called a personal loan. This is one option to be considered. Business credit cards can be useful in many ways and have reasonable interest rates as well.
Once you have established your business entity, you will be receiving numerous offers from business credit card companies to apply. This is a great way to have access to capital. Remember that your business credit cards do not show up on your personal credit report. So any business debt that appears on your personal credit can be transferred to your business credit card, freeing up your personal debt to income ratio. This will increase your personal credit score almost immediately. Many times the credit card companies will offer 0% interest for a limited time (I’ve seen up to one year), then have a reasonable interest rate afterwards (anywhere from 8-14%). That’s far better than a hard money lender or private lender.
Then there’s unsecured lines of credit. The objective is to stimulate micro-enterprises and provide unsecured loans of up to $50,000 to small businesses. You can apply for unsecured lines of credit through your bank or many other institutions that offer them. Once again your business credit profile will need to be in place. Typically, an unsecured line of credit has an interest rate of Prime plus one or two points, depending on some factors that are taken into account. But the bonus here is that the money is unsecured which means you don’t have to put up any collateral for it. This type of lending does not require any financial statements as well. This gives you flexibility especially if your business doesn’t have a great cash flow yet. This is a great method for obtaining capital for your business whether it’s to expand, advertise, or market a new idea.
Pat Gage, The Opportunity Creator, and a leading expert in the field of business credit has helped a number of clients target his specialty, starting, expanding, and growing their businesses through his trademarked 10 Steps to Money System. The Opportunity Creator is not only a sought after business credit coach but also a national speaker. For more information on any topic discussed, visit Gage’s site at www.10stepstomoney.com
Dont Commingle Your Business/Personal Finances
One of the most common business mistakes many small business owners and entrepreneurs make, is commingling their business and personal finances. The result can often be catastrophic. And for the most part, small business owners aren’t even aware of the implications. How so? Glad you asked.
In a word, “credit”. In two words, “bad credit”. This phenomenon usually manifests itself when the business owner applies for credit to buy a car, or even get a mortgage. That’s when the big, red, rubber stamp slaps down, “rejected” on his/her file. Or, when the dunning phone calls from business creditors become more frequent than calls from Aunt Sadie, who has nothing better to do than phone several times a day.
The result of all this commingling of credit can often result in two of the ugliest words in the English language – “bankruptcy” and “lawsuit”. Unfortunately, many small business owners don’t even see it coming.
How can something like this happen? Most often it’s because the small business owner used personal funds to either launch, or finance the expansion of their business. This can involve using personal credit cards, even taking out a Home Equity Loan or Home Equity Line of Credit. This commingling pierces the corporate veil, which opens you up personally to lawsuits. The money goes into the business on the premise that the business will pay it back. But, whoops! When sales go down and the business can’t afford to make the payments, unfortunately it all comes home to roost.
The best thing is not to get into this situation in the first place, but many small business owners and entrepreneurs are unaware of how they can establish a separate business credit profile. And this can often result in unfortunate consequences. If they only took the time to investigate how to do it, it could save them untold grief later on. But how does a small business do this?
Establish sound business financial practices from the outset. Make certain that when you plan your entrance into the small business arena, you do so both carefully, and realistically. Start establishing your business credit profile immediately. Set up your corporation (C or S-) or LLC (Limited Liability Company) properly. Next go to the IRS website and get your EIN for your business. This is like the social security number for your business.
Set up your business bank account, with the same address you used for your legal paperwork to the state and government. Make sure that address is a physical address and not a P.O. Box or UPS store. Next is your business phone number and fax. Make sure this information is consistent and accurate. Make sure your business phone number is listed in the 411 National Directory Assistance with your physical business address. Create a business credit profile on your own or through Dun and Bradstreet.
Get your business familiar with Vendors that are in your business arena and get credit with them right away. Take the long-term view as to what you need to keep operating at a high level. Next, you need to pay your vendors promptly – very promptly, even if it means skipping your own salary at times (yes, this happens and you should plan for it). You’d be surprised, however, at how quickly your business credit profile will look rock-solid to a Business Loan Officer. And the better it looks, the better your chances of getting several unsecured lines of credit, which is exactly what you want.
There are many pit falls to starting or expanding a business, but commingling personal and business credit, and finances is one that should be strenuously avoided at all cost. And remember, be realistic about what you need – not what you want!
Pat Gage, The Opportunity Creator, and a leading expert in the field of business credit has helped a number of clients target his specialty, starting, expanding, and growing their businesses through his trademarked 10 Steps to Money System. The Opportunity Creator is not only a sought after business credit coach but also a national speaker. For more information on any topic discussed, visit Gage’s site at www.10stepstomoney.com
In a word, “credit”. In two words, “bad credit”. This phenomenon usually manifests itself when the business owner applies for credit to buy a car, or even get a mortgage. That’s when the big, red, rubber stamp slaps down, “rejected” on his/her file. Or, when the dunning phone calls from business creditors become more frequent than calls from Aunt Sadie, who has nothing better to do than phone several times a day.
The result of all this commingling of credit can often result in two of the ugliest words in the English language – “bankruptcy” and “lawsuit”. Unfortunately, many small business owners don’t even see it coming.
How can something like this happen? Most often it’s because the small business owner used personal funds to either launch, or finance the expansion of their business. This can involve using personal credit cards, even taking out a Home Equity Loan or Home Equity Line of Credit. This commingling pierces the corporate veil, which opens you up personally to lawsuits. The money goes into the business on the premise that the business will pay it back. But, whoops! When sales go down and the business can’t afford to make the payments, unfortunately it all comes home to roost.
The best thing is not to get into this situation in the first place, but many small business owners and entrepreneurs are unaware of how they can establish a separate business credit profile. And this can often result in unfortunate consequences. If they only took the time to investigate how to do it, it could save them untold grief later on. But how does a small business do this?
Establish sound business financial practices from the outset. Make certain that when you plan your entrance into the small business arena, you do so both carefully, and realistically. Start establishing your business credit profile immediately. Set up your corporation (C or S-) or LLC (Limited Liability Company) properly. Next go to the IRS website and get your EIN for your business. This is like the social security number for your business.
Set up your business bank account, with the same address you used for your legal paperwork to the state and government. Make sure that address is a physical address and not a P.O. Box or UPS store. Next is your business phone number and fax. Make sure this information is consistent and accurate. Make sure your business phone number is listed in the 411 National Directory Assistance with your physical business address. Create a business credit profile on your own or through Dun and Bradstreet.
Get your business familiar with Vendors that are in your business arena and get credit with them right away. Take the long-term view as to what you need to keep operating at a high level. Next, you need to pay your vendors promptly – very promptly, even if it means skipping your own salary at times (yes, this happens and you should plan for it). You’d be surprised, however, at how quickly your business credit profile will look rock-solid to a Business Loan Officer. And the better it looks, the better your chances of getting several unsecured lines of credit, which is exactly what you want.
There are many pit falls to starting or expanding a business, but commingling personal and business credit, and finances is one that should be strenuously avoided at all cost. And remember, be realistic about what you need – not what you want!
Pat Gage, The Opportunity Creator, and a leading expert in the field of business credit has helped a number of clients target his specialty, starting, expanding, and growing their businesses through his trademarked 10 Steps to Money System. The Opportunity Creator is not only a sought after business credit coach but also a national speaker. For more information on any topic discussed, visit Gage’s site at www.10stepstomoney.com
Business Credit For Your Business
So there you are – you’ve done all your research, scoped out the competition, found your marketing niche, and spent countless hours planning precisely how you’re going to open, then operate your business.
It looks like a slam-dunk, except for one tiny problem – you need a bunch of cash to turn your dream into reality. Sure, you’re willing to put in as much as you can as far as time and effort. Maybe you can hit up your rich Aunt Gertrude for a few bucks. But, you still may need additional cash to get your business up-and-running.
What to do, and where to go to do it? Starting a business cash-poor is the quickest way of having that business cash you out – right on your ear. That will make neither you, nor Aunt Gertrude, very happy. So, you put on your, I-Need-A-Business-Line-Of-Credit hat and do a little thinking. Voila! The light goes on and blinks the word “Bank”. Halleluiah! Let’s open the doors and get this business rolling!
Or not. Stopping in to see your friendly neighborhood banker for a business line of credit takes a little more than shinned shoes, and an honest, open smile. That might have cut it with Aunt Gertrude, but your Business Loan Officer will be a bit more demanding. The Business Loan Officer is going to want to have a serious discussion about your business credit profile. This will help him decide your creditworthiness as a business. And that, not incidentally, is going to bring up the question of how you create one in the first place!
First, it’s essential that you separate your personal credit from your business credit. Reason? Personal credit is for your household expenses and business credit is to start, or expand your business. Your business will need more money than your household. If you use your personal credit to fund your business you could seem overextended to the banks and could be declined for any personal household credit needs, such as a new house or car.
How do you do this? Actually it’s simple. All you need to do is incorporate your business. There are several different entities to choose from, C or S-Corporation, or LLC (Limited Liability Company). That makes your business a self-sustaining entity, and takes away any personal liability.
Next, Uncle Sam is going to require that your business have a Federal EIN, which is like the social security number for your business. Then, a separate bank account under the business’ name is required. And of course, you’ll need to comply with all local regulations regarding permits, licenses, etc. Naturally, you’ll have to get a business phone number (not a cell phone). You can use your cell phone as a secondary line but the banks will check to see if your business phone number is a land line in your business name corresponding to the physical address you have given as your business address. Now your physical address could be your home. If you do indeed work from home, that’s okay. The important thing is that all of your business information is consistent.
The last step will be establishing a business credit profile with Dun & Bradstreet and the other business credit bureaus. These are the premier credit rating company’s that all banks turn to. To do this, you’ll need to get several business vendors who’ll extend you a small amount of credit. Pay those bills promptly, and those vendors can then be used as credit references. They will be reporting your payment history so the banks can check your business credit.
Getting that first business line of credit isn’t rocket science. It just takes a little bit of work, and a lot of attention to detail.
Pat Gage, The Opportunity Creator, and a leading expert in the field of business credit has helped a number of clients target his specialty, starting, expanding, and growing their businesses through his trademarked 10 Steps to Money System. The Opportunity Creator is not only a sought after business credit coach but also a national speaker. For more information on any topic discussed, visit Gage’s site at www.10stepstomoney.com
It looks like a slam-dunk, except for one tiny problem – you need a bunch of cash to turn your dream into reality. Sure, you’re willing to put in as much as you can as far as time and effort. Maybe you can hit up your rich Aunt Gertrude for a few bucks. But, you still may need additional cash to get your business up-and-running.
What to do, and where to go to do it? Starting a business cash-poor is the quickest way of having that business cash you out – right on your ear. That will make neither you, nor Aunt Gertrude, very happy. So, you put on your, I-Need-A-Business-Line-Of-Credit hat and do a little thinking. Voila! The light goes on and blinks the word “Bank”. Halleluiah! Let’s open the doors and get this business rolling!
Or not. Stopping in to see your friendly neighborhood banker for a business line of credit takes a little more than shinned shoes, and an honest, open smile. That might have cut it with Aunt Gertrude, but your Business Loan Officer will be a bit more demanding. The Business Loan Officer is going to want to have a serious discussion about your business credit profile. This will help him decide your creditworthiness as a business. And that, not incidentally, is going to bring up the question of how you create one in the first place!
First, it’s essential that you separate your personal credit from your business credit. Reason? Personal credit is for your household expenses and business credit is to start, or expand your business. Your business will need more money than your household. If you use your personal credit to fund your business you could seem overextended to the banks and could be declined for any personal household credit needs, such as a new house or car.
How do you do this? Actually it’s simple. All you need to do is incorporate your business. There are several different entities to choose from, C or S-Corporation, or LLC (Limited Liability Company). That makes your business a self-sustaining entity, and takes away any personal liability.
Next, Uncle Sam is going to require that your business have a Federal EIN, which is like the social security number for your business. Then, a separate bank account under the business’ name is required. And of course, you’ll need to comply with all local regulations regarding permits, licenses, etc. Naturally, you’ll have to get a business phone number (not a cell phone). You can use your cell phone as a secondary line but the banks will check to see if your business phone number is a land line in your business name corresponding to the physical address you have given as your business address. Now your physical address could be your home. If you do indeed work from home, that’s okay. The important thing is that all of your business information is consistent.
The last step will be establishing a business credit profile with Dun & Bradstreet and the other business credit bureaus. These are the premier credit rating company’s that all banks turn to. To do this, you’ll need to get several business vendors who’ll extend you a small amount of credit. Pay those bills promptly, and those vendors can then be used as credit references. They will be reporting your payment history so the banks can check your business credit.
Getting that first business line of credit isn’t rocket science. It just takes a little bit of work, and a lot of attention to detail.
Pat Gage, The Opportunity Creator, and a leading expert in the field of business credit has helped a number of clients target his specialty, starting, expanding, and growing their businesses through his trademarked 10 Steps to Money System. The Opportunity Creator is not only a sought after business credit coach but also a national speaker. For more information on any topic discussed, visit Gage’s site at www.10stepstomoney.com
Is Your Student Loan Safe?
Students Scramble to Secure New Loans as Dozens of Lenders Drop Out
By ALICE GOMSTYN ABC NEWS Business UnitJuly 30, 2008
Read the whole story at:http://www.abcnews.go.com/Business/PersonalFinance/story?id=5475085&page=1
Forget back-to-school shopping: With just a few weeks to go before the start of the fallsemester, many college students are doing somelast-minute student loan shopping as more and more cash-strapped lenders drop out of the student loan business.
As investors have grown wary of putting money in the student loan market, some 100 lenders have gotten out of the college loan business, leaving many students in the lurch. Texas A&M University financial aid director Delisa Falks said that in the last few days, the university has heard from seven different lenders saying they could no longer provide federally-guaranteed loans.
It's a problem that has been ongoing nationwide for months, leaving many students with dwindling options to finance their college educations.
Now this is what really makes me mad about this whole "credit" crisis, the people that want tolearn can not!
It is a shame that our next generation has to suffer for things that they probably do noteven know about.
You have to wonder why some other countriesare moving past our nations school systemin grades and performance. This is one area that the government should step in and assist quickly.
What do you think??
Pat Gagewww.10stepstomoney.com
By ALICE GOMSTYN ABC NEWS Business UnitJuly 30, 2008
Read the whole story at:http://www.abcnews.go.com/Business/PersonalFinance/story?id=5475085&page=1
Forget back-to-school shopping: With just a few weeks to go before the start of the fallsemester, many college students are doing somelast-minute student loan shopping as more and more cash-strapped lenders drop out of the student loan business.
As investors have grown wary of putting money in the student loan market, some 100 lenders have gotten out of the college loan business, leaving many students in the lurch. Texas A&M University financial aid director Delisa Falks said that in the last few days, the university has heard from seven different lenders saying they could no longer provide federally-guaranteed loans.
It's a problem that has been ongoing nationwide for months, leaving many students with dwindling options to finance their college educations.
Now this is what really makes me mad about this whole "credit" crisis, the people that want tolearn can not!
It is a shame that our next generation has to suffer for things that they probably do noteven know about.
You have to wonder why some other countriesare moving past our nations school systemin grades and performance. This is one area that the government should step in and assist quickly.
What do you think??
Pat Gagewww.10stepstomoney.com
Tuesday, July 29, 2008
Business Credit Cards: Awesome Business Tool
To a small business, either a start-up or established, business credit cards can be very valuable financial tools if managed properly. Remember also, that because they’re business credit cards, they are unsecured. Which means there is no collateral tied to them. Great benefit!! But if used improperly, it can have a devastating affect on your business’ credit profile, and hence, your business itself.
Managing your business credit cards doesn’t require an MBA from Harvard, or a financial specialist looking over your shoulder every time you plunk it down. But it does require careful monitoring, and plain old common sense. Here are a few tips you can use to get the most from your business credit cards:
Always apply at your primary bank first. Why? Because you’ve already established a banking relationship which can pave the way for an easy application process. In short – they know you. Once you get the business credit cards, and pay them in a timely manner, it will increase your credit worthiness in the eyes of the bank. This will be of significant help when you apply for additional business lines of credit later on.
Never co-mingle your business credit cards with your personal credit cards. However, here’s a little secret to the game. If you have business debt on your personal credit cards, transfer balance the debt to your business credit card and this will immediately improve your personal credit score by lowering your debt to income ratio. This is a huge benefit of being a business owner.
Once your business credit is established, you’ll be deluged by special offers from credit card companies on a daily basis. When you’re invited to apply and the offer is good, then apply. Remember this: Just because you have applied and received a business credit card, doesn’t mean you have to use it immediately. It’s always a good idea to have extra “Rainy Day” money available. Every business goes through ups and downs and having the money available can be invaluable during one of those down times. It’s always easier to get money when you don’t need it.
By all means, use the grace period when paying your business credit cards. Most providers of business credit cards offer a 21-day grace period before payment is due. This can be a big help in improving your cash flow, and it’s built-in for you to use. Don’t abuse it, and don’t pay later than the grace period deadline, however.
Like many business transactions today, you can pay your business credit card bill online. This may not sound like such a big deal, but when you think of the time and effort it takes to write out and mail a check, it’s really a good deal. Especially since the mail can sometimes be unpredictable. Knowing you can choose the exact date your bill is paid, is priceless.
Do not pay your credit card bills late! Yes, take advantage of the grace period, but paying late, especially if it develops into a habit, will end up costing a lot more than the actual bill. Late fees will bring about higher interest rates. But more importantly, late payments will go straight to your business’ credit profile – and you don’t want it there, especially if you plan on trying to get a line of credit from your bank or lender in the near future. Pay the bills on time, if possible.
Finally, always remember that your business credit card can be a very effective tool in managing your company’s finances. But like any tool, if handled improperly, it can cause irreparable harm – in this case, to your company’s business financial profile. Use it wisely!
Pat Gage
, The Opportunity Creator, and a leading expert in the field of business credit has helped a number of clients target his specialty, starting, expanding, and growing their businesses through his trademarked 10 Steps to Money System. The Opportunity Creator is not only a sought after business credit coach but also a national speaker. For more information on any topic discussed, visit Gage’s site at www.10stepstomoney.com
Managing your business credit cards doesn’t require an MBA from Harvard, or a financial specialist looking over your shoulder every time you plunk it down. But it does require careful monitoring, and plain old common sense. Here are a few tips you can use to get the most from your business credit cards:
Always apply at your primary bank first. Why? Because you’ve already established a banking relationship which can pave the way for an easy application process. In short – they know you. Once you get the business credit cards, and pay them in a timely manner, it will increase your credit worthiness in the eyes of the bank. This will be of significant help when you apply for additional business lines of credit later on.
Never co-mingle your business credit cards with your personal credit cards. However, here’s a little secret to the game. If you have business debt on your personal credit cards, transfer balance the debt to your business credit card and this will immediately improve your personal credit score by lowering your debt to income ratio. This is a huge benefit of being a business owner.
Once your business credit is established, you’ll be deluged by special offers from credit card companies on a daily basis. When you’re invited to apply and the offer is good, then apply. Remember this: Just because you have applied and received a business credit card, doesn’t mean you have to use it immediately. It’s always a good idea to have extra “Rainy Day” money available. Every business goes through ups and downs and having the money available can be invaluable during one of those down times. It’s always easier to get money when you don’t need it.
By all means, use the grace period when paying your business credit cards. Most providers of business credit cards offer a 21-day grace period before payment is due. This can be a big help in improving your cash flow, and it’s built-in for you to use. Don’t abuse it, and don’t pay later than the grace period deadline, however.
Like many business transactions today, you can pay your business credit card bill online. This may not sound like such a big deal, but when you think of the time and effort it takes to write out and mail a check, it’s really a good deal. Especially since the mail can sometimes be unpredictable. Knowing you can choose the exact date your bill is paid, is priceless.
Do not pay your credit card bills late! Yes, take advantage of the grace period, but paying late, especially if it develops into a habit, will end up costing a lot more than the actual bill. Late fees will bring about higher interest rates. But more importantly, late payments will go straight to your business’ credit profile – and you don’t want it there, especially if you plan on trying to get a line of credit from your bank or lender in the near future. Pay the bills on time, if possible.
Finally, always remember that your business credit card can be a very effective tool in managing your company’s finances. But like any tool, if handled improperly, it can cause irreparable harm – in this case, to your company’s business financial profile. Use it wisely!
Pat Gage
, The Opportunity Creator, and a leading expert in the field of business credit has helped a number of clients target his specialty, starting, expanding, and growing their businesses through his trademarked 10 Steps to Money System. The Opportunity Creator is not only a sought after business credit coach but also a national speaker. For more information on any topic discussed, visit Gage’s site at www.10stepstomoney.com
Business Line With Bad Credit? Yes!
It shouldn’t come as a surprise that banks are more than willing to loan money to people with good credit, but shy away from those whose credit is less than perfect. Does that mean the loan you need for your small business is doomed? Not necessarily, because bad credit financing does exist.
First, there are other lenders out there who will, and they generally come in two forms – wealthy individuals (often local) who will make loans to local businesses. Uncovering them may take a bit of detective work, but they certainly are there. Then there are firms that specialize in small business loans to those whose credit is shaky. There are hundreds of them across the country, and they can easily be found on the Internet. But just because they’re there, doesn’t mean they’ll automatically approve your loan. Far from it. You have to persuade them that you’re a viable candidate, and to do that is going to require some work.
Here’s what you do: The very first step is separate your bad personal credit from your business credit. This is very, very important. You can do this by forming a corporation (S or C) or an LLC (Limited Liability Company) and applying for an EIN (Employer Identification Number). This allows you to begin establishing a business credit profile that’s completely separate from your personal credit. It’s like starting with a totally clean balance sheet.
The next step is fairly obvious. You have to build a strong business credit profile. That means finding suppliers who will report your payment history to the business credit bureaus-Dun and Bradstreet, Experian, and Equifax and making sure you are paying your suppliers on time, and adhering to other sound business practices.
Make sure all your business information is correct and consistent with all of the business credit bureaus. Also, bring in a good financial consultant to prepare financial statements for your company. Any potential lender you contact is going to want to see a strong, professionally prepared financial statement. Even if your business is a start up you can still put together a financial statement with projections. This is acceptable to most any lender. Remember that you’re asking for unsecured lines of credit, which means you don’t have to use assets for collateral. Don’t even think about trying to do this yourself. Really!
And, of course, there’s still the problem of your personal credit situation. Even though you separate it from your business, it’s not going to go away, and will still be a factor in many lender’s decision process. You’re going to have to show that you’re making progress in rectifying the situation. This includes your ability to explain why and how your bad credit happened, and what steps you’re taking to remediate it. So pull your credit from all 3 credit bureaus-Experian, Equifax, and Trans Union and review it. If you’re unsure how to read them, enlist a credit repair company to assist you. Lenders want to see that you’re making an honest effort to correct past mistakes and avoid them in the future.
Essentially, it’s important for you to know that there are lenders out there (many in fact), who are willing to loan your small business money, even if your personal credit is pretty suspect. These companies, and individuals, make their money by making exactly these kinds of loans. It’s their business. Their specialty. It’s what they do. They want to loan you the funds you need. But it’s up to you to put in the effort and make the case that your business is worthy of the line of credit you seek. Remember, the lender is only looking for one thing: Your ability to pay back the loan.
Pat Gage, The Opportunity Creator, and a leading expert in the field of business credit has helped a number of clients target his specialty, starting, expanding, and growing their businesses through his trademarked 10 Steps to Money System. The Opportunity Creator is not only a sought after business credit coach but also a national speaker. For more information on any topic discussed, visit Gage’s site at www.10stepstomoney.com
First, there are other lenders out there who will, and they generally come in two forms – wealthy individuals (often local) who will make loans to local businesses. Uncovering them may take a bit of detective work, but they certainly are there. Then there are firms that specialize in small business loans to those whose credit is shaky. There are hundreds of them across the country, and they can easily be found on the Internet. But just because they’re there, doesn’t mean they’ll automatically approve your loan. Far from it. You have to persuade them that you’re a viable candidate, and to do that is going to require some work.
Here’s what you do: The very first step is separate your bad personal credit from your business credit. This is very, very important. You can do this by forming a corporation (S or C) or an LLC (Limited Liability Company) and applying for an EIN (Employer Identification Number). This allows you to begin establishing a business credit profile that’s completely separate from your personal credit. It’s like starting with a totally clean balance sheet.
The next step is fairly obvious. You have to build a strong business credit profile. That means finding suppliers who will report your payment history to the business credit bureaus-Dun and Bradstreet, Experian, and Equifax and making sure you are paying your suppliers on time, and adhering to other sound business practices.
Make sure all your business information is correct and consistent with all of the business credit bureaus. Also, bring in a good financial consultant to prepare financial statements for your company. Any potential lender you contact is going to want to see a strong, professionally prepared financial statement. Even if your business is a start up you can still put together a financial statement with projections. This is acceptable to most any lender. Remember that you’re asking for unsecured lines of credit, which means you don’t have to use assets for collateral. Don’t even think about trying to do this yourself. Really!
And, of course, there’s still the problem of your personal credit situation. Even though you separate it from your business, it’s not going to go away, and will still be a factor in many lender’s decision process. You’re going to have to show that you’re making progress in rectifying the situation. This includes your ability to explain why and how your bad credit happened, and what steps you’re taking to remediate it. So pull your credit from all 3 credit bureaus-Experian, Equifax, and Trans Union and review it. If you’re unsure how to read them, enlist a credit repair company to assist you. Lenders want to see that you’re making an honest effort to correct past mistakes and avoid them in the future.
Essentially, it’s important for you to know that there are lenders out there (many in fact), who are willing to loan your small business money, even if your personal credit is pretty suspect. These companies, and individuals, make their money by making exactly these kinds of loans. It’s their business. Their specialty. It’s what they do. They want to loan you the funds you need. But it’s up to you to put in the effort and make the case that your business is worthy of the line of credit you seek. Remember, the lender is only looking for one thing: Your ability to pay back the loan.
Pat Gage, The Opportunity Creator, and a leading expert in the field of business credit has helped a number of clients target his specialty, starting, expanding, and growing their businesses through his trademarked 10 Steps to Money System. The Opportunity Creator is not only a sought after business credit coach but also a national speaker. For more information on any topic discussed, visit Gage’s site at www.10stepstomoney.com
Small Business: Having Business Credit Options
Credit – it’s probably one of the most important business tools your small business can have. In fact, it’s not only important, but essential. You need it to grow your business, take advantage of equipment and supply sales or leasing, expansion, and a thousand other things.
Most of the time, a small business doesn’t generate enough capital to supply all its needs. So when opportunities knock, savvy business owners turn to the credit market to take advantage and stay ahead of the competition. But what kinds of credit are available to the small business entrepreneur, and what types are best for his/her needs?
There are many types of credit available to business owners with realistic needs. Some secured, some unsecured. Having multiple credit sources available allows a business to pick and choose which one is the best for any given situation. And since no two businesses are alike, it makes sense that different businesses will benefit from different types of loans.
For many small businesses Unsecured Lines of Credit work well. An Unsecured Line gives the owner a lot of flexibility. You use only the amount of money you need, and can hold the rest in reserve. This can be a big plus, because since you’re only using what you need, your payments are smaller. This helps cash flow, since interest payments are only made on the outstanding balance. No collateral is required. That means no personal property or real estate is pledged against the credit line.
Unsecured Lines of Credit have interest rates starting around Prime and go up from there depending upon various underwriting requirements instituted by the bank. Some of these requirements are easily obtainable and some are a little more challenging. It’s best to be prepared when applying for any type of business loans.
Small Business Loans are the most common source of small business financing, after credit cards. There are a number of sources of small business loans, and with good credit, they’re generally not difficult to get. Some of these loans (SBA, eg.) are secured by the government. Result? Interest rates may be lower than conventional loans. They also can carry long repayment requirements which can be a big help with cash flow.
Straight bank loans (not government backed) can be very challenging to get, especially for a start-up. Unless your business has spotless books, and a solid track record over a period of years, or good financial projections for your start up that are created by a professional adviser, this is probably not a good loan to apply for.
Credit Cards are a great source of credit for small businesses. They can be used for everything from gas, to equipment/supply purchases (depending on the amount of your line). Credit Cards give you flexibility second to none, require no collateral, and give you an excellent way to track expenses.
One type of credit that generally gets little thought, but can be a significant player in fattening your bottom line, is Vendor Credit. This type of credit has a number of advantages: It’s free, unsecured, readily available, and easy to qualify for. And it can only be used for buying from the vendor’s products.
As with personal credit, there are a variety of credit sources and options available to small business entrepreneurs. As with any major decision, it’s always best to consider all the options, compare the benefits against the cost, time and effort involved. In some instances you may find that a combination of credit sources may work best for you. In others, just one.
Whichever way you decide to jump, properly used credit can be a huge boost in growing your business, and your bottom line.
Pat Gage
, The Opportunity Creator, and a leading expert in the field of business credit has helped a number of clients target his specialty, starting, expanding, and growing their businesses through his trademarked 10 Steps to Money System. The Opportunity Creator is not only a sought after business credit coach but also a national speaker. For more information on any topic discussed, visit Gage’s site at www.10stepstomoney.com
Most of the time, a small business doesn’t generate enough capital to supply all its needs. So when opportunities knock, savvy business owners turn to the credit market to take advantage and stay ahead of the competition. But what kinds of credit are available to the small business entrepreneur, and what types are best for his/her needs?
There are many types of credit available to business owners with realistic needs. Some secured, some unsecured. Having multiple credit sources available allows a business to pick and choose which one is the best for any given situation. And since no two businesses are alike, it makes sense that different businesses will benefit from different types of loans.
For many small businesses Unsecured Lines of Credit work well. An Unsecured Line gives the owner a lot of flexibility. You use only the amount of money you need, and can hold the rest in reserve. This can be a big plus, because since you’re only using what you need, your payments are smaller. This helps cash flow, since interest payments are only made on the outstanding balance. No collateral is required. That means no personal property or real estate is pledged against the credit line.
Unsecured Lines of Credit have interest rates starting around Prime and go up from there depending upon various underwriting requirements instituted by the bank. Some of these requirements are easily obtainable and some are a little more challenging. It’s best to be prepared when applying for any type of business loans.
Small Business Loans are the most common source of small business financing, after credit cards. There are a number of sources of small business loans, and with good credit, they’re generally not difficult to get. Some of these loans (SBA, eg.) are secured by the government. Result? Interest rates may be lower than conventional loans. They also can carry long repayment requirements which can be a big help with cash flow.
Straight bank loans (not government backed) can be very challenging to get, especially for a start-up. Unless your business has spotless books, and a solid track record over a period of years, or good financial projections for your start up that are created by a professional adviser, this is probably not a good loan to apply for.
Credit Cards are a great source of credit for small businesses. They can be used for everything from gas, to equipment/supply purchases (depending on the amount of your line). Credit Cards give you flexibility second to none, require no collateral, and give you an excellent way to track expenses.
One type of credit that generally gets little thought, but can be a significant player in fattening your bottom line, is Vendor Credit. This type of credit has a number of advantages: It’s free, unsecured, readily available, and easy to qualify for. And it can only be used for buying from the vendor’s products.
As with personal credit, there are a variety of credit sources and options available to small business entrepreneurs. As with any major decision, it’s always best to consider all the options, compare the benefits against the cost, time and effort involved. In some instances you may find that a combination of credit sources may work best for you. In others, just one.
Whichever way you decide to jump, properly used credit can be a huge boost in growing your business, and your bottom line.
Pat Gage
, The Opportunity Creator, and a leading expert in the field of business credit has helped a number of clients target his specialty, starting, expanding, and growing their businesses through his trademarked 10 Steps to Money System. The Opportunity Creator is not only a sought after business credit coach but also a national speaker. For more information on any topic discussed, visit Gage’s site at www.10stepstomoney.com
HOW TO START A BUSINESS EVEN IF YOU HAVE BAD CREDIT
So there you sit. You have great plans for a great new business – a sure-fire winner. But there’s a problem. You’re pretty sure your personal credit is less than perfect. Well, actually you know it’s in the dumpster. End of dream? No, start of a plan to get this ship out of dry dock.
Here’s what you have to do:
Find out what your credit score is before you approach any financial institution about a loan. Maybe it won’t be as bad as you think, but you won’t know unless you check it out. That means getting your report from all three of the major credit-reporting bureaus – Equifax, Experian or TransUnion. This way you’ll find out exactly where you stand.
There’s another benefit here as well. It’s possible your report may contain errors – a late payment, for example, you know you made on time. Or a claim of a missed payment, when you have the canceled check to prove it was paid. Errors do occur, and if you find any, now is the time to get them corrected, before you go out looking for business funding.
But let’s say that after checking your credit report, you determine that it’s correct, and yes, your credit comes up less than stellar. What do you do then? Get moving!
One thing potential lenders really dislike seeing is late or missed payments. If you had a good reason for that error (family emergency, out of country, hospitalized, etc.), write a letter of explanation to the credit bureau. It’s possible you could get it lifted from your report. You could also enlist the services of a credit repair company, if you don’t know where or how to start. And those high interest credit cards you’ve been carrying balances on? Pay them down to 30% of the credit limit as quickly as possible.
And a word about credit cards: Those colorful little pieces of plastic you’re carrying around are probably worth thousands in credit. If you’re like most folks, the temptation to use them to pay for less-than-necessary items (do you really need another flat screen TV?) could be a problem. If you can’t control your personal spending, do you really think a loan officer will think you can control your business spending any better? No! It really isn’t that hard to do, and whatever credit problems you might have, can be overcome by good financial management.
You can do it if you want to. Straighten out your credit problems well before going to any bank. While loan officers look fondly on borrowers with excellent credit, they also appreciate those with less-than-perfect credit who have recognized and corrected the situation. It says a lot about you and your worthiness to receive a loan. The key is to start establishing your business credit so that your personal credit doesn’t become as important. You should start doing this immediately, even if your business is a start up. There are lenders that will loan to start ups as well as established businesses but you must have your business set up correctly as a business and not as a hobby.
You can work from your home and still be a legitimate business as long as all your documented information (EIN, State filings, business licenses, business phone number and address) is consistent. This is the key to unlock the doors to business funding.
And finally, one last word about credit: Once you do get your lines of credit or business credit cards, never, ever think about co-mingling your business and personal credit. Keep credit cards separate, as well as bank accounts. The temptation can be awfully strong to co-mingle, but it’s a path you don’t want to go down.
Pat Gage
, The Opportunity Creator, and a leading expert in the field of business credit has helped a number of clients target his specialty, starting, expanding, and growing their businesses through his trademarked 10 Steps to Money System. The Opportunity Creator is not only a sought after business credit coach but also a national speaker. For more information on any topic discussed, visit Gage’s site at www.10stepstomoney.com
Here’s what you have to do:
Find out what your credit score is before you approach any financial institution about a loan. Maybe it won’t be as bad as you think, but you won’t know unless you check it out. That means getting your report from all three of the major credit-reporting bureaus – Equifax, Experian or TransUnion. This way you’ll find out exactly where you stand.
There’s another benefit here as well. It’s possible your report may contain errors – a late payment, for example, you know you made on time. Or a claim of a missed payment, when you have the canceled check to prove it was paid. Errors do occur, and if you find any, now is the time to get them corrected, before you go out looking for business funding.
But let’s say that after checking your credit report, you determine that it’s correct, and yes, your credit comes up less than stellar. What do you do then? Get moving!
One thing potential lenders really dislike seeing is late or missed payments. If you had a good reason for that error (family emergency, out of country, hospitalized, etc.), write a letter of explanation to the credit bureau. It’s possible you could get it lifted from your report. You could also enlist the services of a credit repair company, if you don’t know where or how to start. And those high interest credit cards you’ve been carrying balances on? Pay them down to 30% of the credit limit as quickly as possible.
And a word about credit cards: Those colorful little pieces of plastic you’re carrying around are probably worth thousands in credit. If you’re like most folks, the temptation to use them to pay for less-than-necessary items (do you really need another flat screen TV?) could be a problem. If you can’t control your personal spending, do you really think a loan officer will think you can control your business spending any better? No! It really isn’t that hard to do, and whatever credit problems you might have, can be overcome by good financial management.
You can do it if you want to. Straighten out your credit problems well before going to any bank. While loan officers look fondly on borrowers with excellent credit, they also appreciate those with less-than-perfect credit who have recognized and corrected the situation. It says a lot about you and your worthiness to receive a loan. The key is to start establishing your business credit so that your personal credit doesn’t become as important. You should start doing this immediately, even if your business is a start up. There are lenders that will loan to start ups as well as established businesses but you must have your business set up correctly as a business and not as a hobby.
You can work from your home and still be a legitimate business as long as all your documented information (EIN, State filings, business licenses, business phone number and address) is consistent. This is the key to unlock the doors to business funding.
And finally, one last word about credit: Once you do get your lines of credit or business credit cards, never, ever think about co-mingling your business and personal credit. Keep credit cards separate, as well as bank accounts. The temptation can be awfully strong to co-mingle, but it’s a path you don’t want to go down.
Pat Gage
, The Opportunity Creator, and a leading expert in the field of business credit has helped a number of clients target his specialty, starting, expanding, and growing their businesses through his trademarked 10 Steps to Money System. The Opportunity Creator is not only a sought after business credit coach but also a national speaker. For more information on any topic discussed, visit Gage’s site at www.10stepstomoney.com
HOW TO GET YOUR 2ND BUSINESS LOAN
Good for you! You were able to get that all important 1st loan to start your fledgling business. Now you’re up-and-running, business is humming, and things are looking rosier than a horticultural shop in May. Time to sit back and smell those roses? Not quite. You’ve gone from working 10 hours a day to 12. You need money for expansion, marketing, people. You need to go back to the bank. But since you’ve already been successful once, you shouldn’t have any problem getting a second loan, right? Should be a snap!
Well, maybe not quite that easy. Because your loan officer is going to look at you just as hard the second time around as he/she did the first. There are no free passes when it comes to getting credit, so you better be prepared to look good.
Here’s how you do it:
First and foremost, make sure your business credit is in good shape. That means that all business credit cards have been paid in a timely manner, as well as bills from suppliers, utilities and the like. To find out how you stand, check with Dun & Bradstreet. They keep tabs on virtually all small businesses, and will have a record of your payment performance. If by some chance, there’s a blot on your record, find out what it is. You can be certain your loan officer will want to know what’s it’s all about. It’s up to you to make sure it can be explained, or better, removed before you apply for a loan. Don’t have a Dun & Bradstreet credit profile? Get signed up as soon as possible. A Dun & Bradstreet credit profile is the best way to get your business credit on track and supercharge your business with vendors and lenders. This demonstrates to the banks that your business is a real business and not “in a van down by the river.”
Ask for more than you actually need. It may sound scary, but remember you only use it as you need it. That’s the beauty of unsecured lines of credit. Yes, bigger loans mean bigger payments, but remember you only pay on what you use. This is about getting the right amount of unsecured lines of credit so that you don’t necessarily have to go back to the bank anytime soon. Applying for too small a loan can be just as dangerous as applying for too big a loan. Because then you have to keep going back. If you ask for the right amount then it will sustain your business for a little longer.
Clear up your personal credit if you have any problems. Your credit was probably pretty good when you were granted your first loan, but if for some reason it’s taken a hit since then, you’d better clear it up – and fast! Even though your business may be booming, lenders know that personal credit problems could carry over to your business down the road. That means getting your report from all three of the major credit-reporting bureaus – Equifax, Experian or TransUnion. This way you’ll find out exactly where you stand.
Anticipate, organize and be prepared when you make your loan application. Sounds simple enough, but have your financial consultant prepare an interim financial statement, incase the banker asks for it. However, remember that you are applying for unsecured lines of credit so you don’t have to put up your business or personal assets for collateral. In short, anything that will make you look more professional and prepared in the eyes of your lending officer, but don’t offer it if they don’t ask for it. The fact that you’ve prepared this material means less work your lending officer. Nothing wrong with that scenario!
Pat Gage, The Opportunity Creator, and a leading expert in the field of business credit has helped a number of clients target his specialty, starting, expanding, and growing their businesses through his trademarked 10 Steps to Money System. The Opportunity Creator is not only a sought after business credit coach but also a national speaker. For more information on any topic discussed, visit Gage’s site at www.10stepstomoney.com
Well, maybe not quite that easy. Because your loan officer is going to look at you just as hard the second time around as he/she did the first. There are no free passes when it comes to getting credit, so you better be prepared to look good.
Here’s how you do it:
First and foremost, make sure your business credit is in good shape. That means that all business credit cards have been paid in a timely manner, as well as bills from suppliers, utilities and the like. To find out how you stand, check with Dun & Bradstreet. They keep tabs on virtually all small businesses, and will have a record of your payment performance. If by some chance, there’s a blot on your record, find out what it is. You can be certain your loan officer will want to know what’s it’s all about. It’s up to you to make sure it can be explained, or better, removed before you apply for a loan. Don’t have a Dun & Bradstreet credit profile? Get signed up as soon as possible. A Dun & Bradstreet credit profile is the best way to get your business credit on track and supercharge your business with vendors and lenders. This demonstrates to the banks that your business is a real business and not “in a van down by the river.”
Ask for more than you actually need. It may sound scary, but remember you only use it as you need it. That’s the beauty of unsecured lines of credit. Yes, bigger loans mean bigger payments, but remember you only pay on what you use. This is about getting the right amount of unsecured lines of credit so that you don’t necessarily have to go back to the bank anytime soon. Applying for too small a loan can be just as dangerous as applying for too big a loan. Because then you have to keep going back. If you ask for the right amount then it will sustain your business for a little longer.
Clear up your personal credit if you have any problems. Your credit was probably pretty good when you were granted your first loan, but if for some reason it’s taken a hit since then, you’d better clear it up – and fast! Even though your business may be booming, lenders know that personal credit problems could carry over to your business down the road. That means getting your report from all three of the major credit-reporting bureaus – Equifax, Experian or TransUnion. This way you’ll find out exactly where you stand.
Anticipate, organize and be prepared when you make your loan application. Sounds simple enough, but have your financial consultant prepare an interim financial statement, incase the banker asks for it. However, remember that you are applying for unsecured lines of credit so you don’t have to put up your business or personal assets for collateral. In short, anything that will make you look more professional and prepared in the eyes of your lending officer, but don’t offer it if they don’t ask for it. The fact that you’ve prepared this material means less work your lending officer. Nothing wrong with that scenario!
Pat Gage, The Opportunity Creator, and a leading expert in the field of business credit has helped a number of clients target his specialty, starting, expanding, and growing their businesses through his trademarked 10 Steps to Money System. The Opportunity Creator is not only a sought after business credit coach but also a national speaker. For more information on any topic discussed, visit Gage’s site at www.10stepstomoney.com
Tuesday, July 22, 2008
Businesses try to get customers atwitter by using networking sites, blogs
When you think of a business that might have a profile on an online social networking site such as Facebook and MySpace, Pontiac-based Curve Detroit is the kind of company that comes to mind — a hip, 30-something ad agency with the sort of puckish sense of humor that leads founding partner Charlie Wollborg to give his official title as “chief troublemaker.”
With a company Web site now de rigueur, small-business owners such as Wollborg are expanding into social networking arenas, building online communities to identify and attract customers, showcase offerings and test-market products.
Curve's employees have been early adopters of the various media referred to as Web 2.0, embracing blogging alongside free networking sites such as Facebook, MySpace, LinkedIn and microblogging site Twitter, Wollborg said.
“We're now at the point where we're getting a new invite (to a social networking platform) each week,” he said. “We tend to set up a profile but do not do much with most of them.”
Key, he said, is choosing the sites most likely to attract the customers who fit your business.
..
I think that I would rather have companies doing this type of marketing than the phone calls at dinnertime. This is also a great way for the company to connect with its clients and with potential clients as well.
In my company we are employing these ways of concepts as well, not only are we learning as we go it is a learning experience for my clients as well, so we find ourselves learning together.
You can read the rest of the article at:
http://www.crainsdetroit.com/article/20080721/SUB/807210335
What do you think? Is your company doing any of these Web 2.0 strategies? Do you think that this is a way for companies to market?
Pat Gage
www.10stepstomoney
With a company Web site now de rigueur, small-business owners such as Wollborg are expanding into social networking arenas, building online communities to identify and attract customers, showcase offerings and test-market products.
Curve's employees have been early adopters of the various media referred to as Web 2.0, embracing blogging alongside free networking sites such as Facebook, MySpace, LinkedIn and microblogging site Twitter, Wollborg said.
“We're now at the point where we're getting a new invite (to a social networking platform) each week,” he said. “We tend to set up a profile but do not do much with most of them.”
Key, he said, is choosing the sites most likely to attract the customers who fit your business.
..
I think that I would rather have companies doing this type of marketing than the phone calls at dinnertime. This is also a great way for the company to connect with its clients and with potential clients as well.
In my company we are employing these ways of concepts as well, not only are we learning as we go it is a learning experience for my clients as well, so we find ourselves learning together.
You can read the rest of the article at:
http://www.crainsdetroit.com/article/20080721/SUB/807210335
What do you think? Is your company doing any of these Web 2.0 strategies? Do you think that this is a way for companies to market?
Pat Gage
www.10stepstomoney
Monday, July 21, 2008
North Texas pushes new energy solutions
BY JOHN-LAURENT TRONCHE July 21, 2008
Fort Worth Business Press
Story at: http://www.fwbusinesspress.com/display.php?id=8027
The North Texas area is nationally known as a leader and example of natural gas production, but one company and one individual, both with oil business pasts, could help the Metroplex become known for more alternative energy resources, too.
Grapevine-based GreenHunter Energy Inc., whose CEO comes from oil and gas operator Magnum Hunter Resources Inc. (acquired by Cimarex Energy Inc. in 2005), and famed Texas oil man and Dallas resident T. Boone Pickens both have ramped up their support for alternative energy sources - that is, not oil.
The former is focusing on three main areas of investigation - biofuels, biomass power and wind energy - while Pickens is pushing exclusively for wind power and natural gas, according to his July 8-debuted Pickens Plan.
"Texas has always been a powerhouse in the United States in many ways," said Jack Zedlitz, director of corporate communications at GreenHunter Energy. "In the energy industry, Texas has been a focal point of oil and gas production and remains to be so.
"What a lot of other folks people don't know is Texas is also the largest wind power producer in the United States.
"I think this is another opportunity for Texas to continue to dominate, not only conventional power and fuel but also renewable energy."
**
I have seen these ads, on TV, with Mr. Pickens in them and thought , now there is a guy that sees the future. I first heard about Mr. Pickens when I saw him in Inc. Magazine article. I read the article and was impressed that an "Oil" guy was doing something different than Oil, and making money. Now, that is what true entrepreneur, he changes with the times and still makes money. The article was very good, but did not detail out his "Pickens Plan" but did tell of how he is making money for the land owners around his Texas estate.
I am glad to see that out of adversity or pain, i.e. high oil prices comes innovation. Throughout history when America was faced with its greatest adversity came its greatest innovations and this time period is no different. Maybe on difference is that the people and industries that have held us captive to a "Real" solution to this Oil addition we have in this country. If they can make money at a solution then that solution will be put into use, not until then.
What do you think. Is this a turning point for Oil, is the "Green" movement going to really take hold? Is is going to stay around?
Pat Gage
www.10stepstomoney.com
Fort Worth Business Press
Story at: http://www.fwbusinesspress.com/display.php?id=8027
The North Texas area is nationally known as a leader and example of natural gas production, but one company and one individual, both with oil business pasts, could help the Metroplex become known for more alternative energy resources, too.
Grapevine-based GreenHunter Energy Inc., whose CEO comes from oil and gas operator Magnum Hunter Resources Inc. (acquired by Cimarex Energy Inc. in 2005), and famed Texas oil man and Dallas resident T. Boone Pickens both have ramped up their support for alternative energy sources - that is, not oil.
The former is focusing on three main areas of investigation - biofuels, biomass power and wind energy - while Pickens is pushing exclusively for wind power and natural gas, according to his July 8-debuted Pickens Plan.
"Texas has always been a powerhouse in the United States in many ways," said Jack Zedlitz, director of corporate communications at GreenHunter Energy. "In the energy industry, Texas has been a focal point of oil and gas production and remains to be so.
"What a lot of other folks people don't know is Texas is also the largest wind power producer in the United States.
"I think this is another opportunity for Texas to continue to dominate, not only conventional power and fuel but also renewable energy."
**
I have seen these ads, on TV, with Mr. Pickens in them and thought , now there is a guy that sees the future. I first heard about Mr. Pickens when I saw him in Inc. Magazine article. I read the article and was impressed that an "Oil" guy was doing something different than Oil, and making money. Now, that is what true entrepreneur, he changes with the times and still makes money. The article was very good, but did not detail out his "Pickens Plan" but did tell of how he is making money for the land owners around his Texas estate.
I am glad to see that out of adversity or pain, i.e. high oil prices comes innovation. Throughout history when America was faced with its greatest adversity came its greatest innovations and this time period is no different. Maybe on difference is that the people and industries that have held us captive to a "Real" solution to this Oil addition we have in this country. If they can make money at a solution then that solution will be put into use, not until then.
What do you think. Is this a turning point for Oil, is the "Green" movement going to really take hold? Is is going to stay around?
Pat Gage
www.10stepstomoney.com
Friday, July 18, 2008
Thursday, July 17, 2008
An unexpected letter in the mail...$100,000
Hi,
Just the other day I opened my mail and to my surprise
it was an other business credit card. But, this business
credit card was different, it didn’t look like the
other cards that I’ve received before, plus I didn’t have
that bank on my tracking sheet, which tells me, what lines
of credit I have applied for.
So to say the least I was a bit curious about this card that
stated "Your New Account Has Been Established." As I
read further down the letter with the card attached I knew
that this was not a typical "Credit Card", it was a $100,000
line of leasing credit. That's right leasing credit. I didn’t
apply and had never up to this point heard of this company
so I was very curious about this offer, $100,000?
So I called the 800 number on the letter and
started talking to Jason, I told Jason that I didn’t
apply for this card and where did you get my information,
etc. Jason told me that my company fit their profile
of companies that they make this kind of offer to, because
my company looks and acts like a business the line
of credit was issued.
And guys here’s the best part….This leasing line
of credit was issued solely based on my company’s
Dun & Bradstreet report! NO Personal Guarantee!
NO Social Security Number was given at all!
That is awesome! Do you see the power of Business Credit?
I asked Jason to explain this $100,000 line of leasing
credit. Jason said that it’s for us to use on anything that we
can lease like vehicles, office equipment, rent for a building
etc. I said that sounds great, but what are the interest
rates for this type of leasing credit? Jason said that
the rates are currently at 5.25% -I said WHAT! 5.25%! Jason
said yes, that’s correct. I said that’s great! I then asked
Jason what’s the catch, do you have to lease only from
your list of vendors, Jason siad NO, you can use any vendor
you want. Also, I can use any amount up to the $100,000 limit
that I want, so I could lease a copier for $230.00 a month
or a whole office space for $3,000 per month.
This leasing company is just one of the many offers I get in
the mail on a daily basis and this will happen to you when
you follow the “10 Steps To Money” system of raising unlimited
money for your business. What would you do with $100,000 in
leasing credit?
To Your Business Success,
Pat Gage
..
www.10stepstomoney.com
Just the other day I opened my mail and to my surprise
it was an other business credit card. But, this business
credit card was different, it didn’t look like the
other cards that I’ve received before, plus I didn’t have
that bank on my tracking sheet, which tells me, what lines
of credit I have applied for.
So to say the least I was a bit curious about this card that
stated "Your New Account Has Been Established." As I
read further down the letter with the card attached I knew
that this was not a typical "Credit Card", it was a $100,000
line of leasing credit. That's right leasing credit. I didn’t
apply and had never up to this point heard of this company
so I was very curious about this offer, $100,000?
So I called the 800 number on the letter and
started talking to Jason, I told Jason that I didn’t
apply for this card and where did you get my information,
etc. Jason told me that my company fit their profile
of companies that they make this kind of offer to, because
my company looks and acts like a business the line
of credit was issued.
And guys here’s the best part….This leasing line
of credit was issued solely based on my company’s
Dun & Bradstreet report! NO Personal Guarantee!
NO Social Security Number was given at all!
That is awesome! Do you see the power of Business Credit?
I asked Jason to explain this $100,000 line of leasing
credit. Jason said that it’s for us to use on anything that we
can lease like vehicles, office equipment, rent for a building
etc. I said that sounds great, but what are the interest
rates for this type of leasing credit? Jason said that
the rates are currently at 5.25% -I said WHAT! 5.25%! Jason
said yes, that’s correct. I said that’s great! I then asked
Jason what’s the catch, do you have to lease only from
your list of vendors, Jason siad NO, you can use any vendor
you want. Also, I can use any amount up to the $100,000 limit
that I want, so I could lease a copier for $230.00 a month
or a whole office space for $3,000 per month.
This leasing company is just one of the many offers I get in
the mail on a daily basis and this will happen to you when
you follow the “10 Steps To Money” system of raising unlimited
money for your business. What would you do with $100,000 in
leasing credit?
To Your Business Success,
Pat Gage
..
www.10stepstomoney.com
Wednesday, July 16, 2008
American Capital Commits $300 Million to Core Business Credit
BETHESDA, Md., May 19 /PRNewswire-FirstCall/ -- American Capital Strategies Ltd. (Nasdaq: ACAS) announced today that it has committed $300 million to Core Business Credit, a newly-formed commercial finance company that will provide asset-based financing to middle market companies nationally.
American Capital's investment takes the form of subordinated debt and equity.
In addition, Core has secured a $125 million senior credit facility with Autobahn Funding Company, LLC, an asset-backed commercial paper conduit sponsored by DZ BANK AG Deutsche Zentral-Genossenschaftsbank, Frankfurt am Main. This makes Core's total committed capitalization in excess of $425 million.
"In the current environment, middle market companies need access to capital and Core will provide an attractive solution," said Bob Grunewald, Managing Director, American Capital Financial Services Group. "Core will be a unique combination of a national lender with a broad product offering, yet high-level customer service and access to senior management."
Based in Dallas, Core plans predominately to make asset-based loans secured by accounts receivable, inventory, equipment and owner-occupied real estate.
This is another way to get capital for your business. It just goes to show you that even in this "credit" crunch that their are compaines that are giving business credit. Now this is asset based lending which is different than unsecured Business Lines of credit that I teach about, but this goes to show you that this industry is not stopping the flow of money to companies.
What do you think, love to hear from you?
Pat Gage
www.10stepstomoney.com
American Capital's investment takes the form of subordinated debt and equity.
In addition, Core has secured a $125 million senior credit facility with Autobahn Funding Company, LLC, an asset-backed commercial paper conduit sponsored by DZ BANK AG Deutsche Zentral-Genossenschaftsbank, Frankfurt am Main. This makes Core's total committed capitalization in excess of $425 million.
"In the current environment, middle market companies need access to capital and Core will provide an attractive solution," said Bob Grunewald, Managing Director, American Capital Financial Services Group. "Core will be a unique combination of a national lender with a broad product offering, yet high-level customer service and access to senior management."
Based in Dallas, Core plans predominately to make asset-based loans secured by accounts receivable, inventory, equipment and owner-occupied real estate.
This is another way to get capital for your business. It just goes to show you that even in this "credit" crunch that their are compaines that are giving business credit. Now this is asset based lending which is different than unsecured Business Lines of credit that I teach about, but this goes to show you that this industry is not stopping the flow of money to companies.
What do you think, love to hear from you?
Pat Gage
www.10stepstomoney.com
Tuesday, July 15, 2008
A Day at the Zoo...
Recently my wife and I took a day off to enjoysome time with our kids.
We took a trip to the zoo, which I have not beento since I was like 10 years old.
It was great to go to the zoo and not have to worryabout the business. See we have our businesses on autopilot and have systems in place so that we can take a day like this off and enjoy ourboys. Because as everyone says, "they grow up so fast."
To view the photos of the Zoo Vist just click on the link below:
http://www.facebook.com/album.php?aid=2001919&l=34371&id=1329581882
To Your Business Success,
Pat Gage
www.10stepstomoney.com
We took a trip to the zoo, which I have not beento since I was like 10 years old.
It was great to go to the zoo and not have to worryabout the business. See we have our businesses on autopilot and have systems in place so that we can take a day like this off and enjoy ourboys. Because as everyone says, "they grow up so fast."
To view the photos of the Zoo Vist just click on the link below:
http://www.facebook.com/album.php?aid=2001919&l=34371&id=1329581882
To Your Business Success,
Pat Gage
www.10stepstomoney.com
Tuesday, July 1, 2008
S&P, Moody's raise Countrywide after BofA takover
NEW YORK, July 1 (Reuters) - Two rating agencies on Tuesday raised their debt ratings on Countrywide Financial Corp. after the largest U.S. mortgage lender was acquired by Bank of America.
S&P raised Countrywide's counterparty rating to "AA," the third-highest investment-grade level, from the highest junk level of "BB-plus" to align it with ratings of Bank of America. The upgrade reflects expectations that Bank of America will honor Countrywide's debt, S&P said in a statement.
And Moody's Investors Service upgraded Countrywide's senior debt rating to "Aa2," in line with Bank of America's ratings. The ratings of Charlotte, North Carolina-based Bank of America were affirmed.
Wasn't it just a few months ago they were talking about massive layoffs and downgrades, makes you wonder if the subprime mess was just for real? Now B of A can borrow more.
Pat Gage
http://www.10stepstomoney.com/
S&P raised Countrywide's counterparty rating to "AA," the third-highest investment-grade level, from the highest junk level of "BB-plus" to align it with ratings of Bank of America. The upgrade reflects expectations that Bank of America will honor Countrywide's debt, S&P said in a statement.
And Moody's Investors Service upgraded Countrywide's senior debt rating to "Aa2," in line with Bank of America's ratings. The ratings of Charlotte, North Carolina-based Bank of America were affirmed.
Wasn't it just a few months ago they were talking about massive layoffs and downgrades, makes you wonder if the subprime mess was just for real? Now B of A can borrow more.
Pat Gage
http://www.10stepstomoney.com/
New URL for Ron LeGrand Quick Turn Game
Just thought you would like to know, I just talked to the creator of this game and he gave me a new URL to use.
They are just taking your name and email until the game becomes available in Aug. early Sept.
The URL is www.quickturngame.com
I will update you with more later
Later
Pat Gage
www.10stepstomoney.com
They are just taking your name and email until the game becomes available in Aug. early Sept.
The URL is www.quickturngame.com
I will update you with more later
Later
Pat Gage
www.10stepstomoney.com
Sunday, June 29, 2008
The best trip!
Hello,
I just retunred from the my friend and Mentor Ron LeGrand's
Information Bootcamp and what a great time we had.
I just found out at this event that I will be a speaker at Ron's
Customer AppreciationEvent in LA in Sept. I will fill you in
on the details in a later post. Because I need to tell you about
the two guys I met at this event.
I met and are going to start working with the two guys that are
developing The brand new Ron LeGrand Quick trun board game
due out in a few months. It was great! If fact here is the world's
first view of the game.
I just retunred from the my friend and Mentor Ron LeGrand's
Information Bootcamp and what a great time we had.
I just found out at this event that I will be a speaker at Ron's
Customer AppreciationEvent in LA in Sept. I will fill you in
on the details in a later post. Because I need to tell you about
the two guys I met at this event.
I met and are going to start working with the two guys that are
developing The brand new Ron LeGrand Quick trun board game
due out in a few months. It was great! If fact here is the world's
first view of the game.
Stay tuned for more details on where you can get the game. It teaches you
the Real Estate business using a game as the vehicle. The game is just comming
out and if you want more info on how to get it let me know.
Let me know what you think about the game.
Pat Gage
Visit http://www.10stepstomoney.com/ to learn how you can
create massive lines of credit.
Saturday, May 17, 2008
Pat Gage Reveals the Real Key to Business Funding Success at a Metro Detroit, Michigan Event
A formula emerges that systematically and predictably puts unlimited capital into your pocket
Detroit, MI — Many real estate investors and business owners are suffering in today’s economy. Some are closing down, others face bankruptcy, because they do not know how to get the capital needed to operate or expand their business. They spend time and money on application fees, phone calls, letters, etc… and just end up frustrated and closer to being broke.
Pat Gage, the Opportunity Creator, went through this too; he nearly went bankrupt, spinning his wheels to obtain the financing needed to run his business. He attended seminars and purchased materials from others who were successful. He networked with others to learn how they managed to finance their business ventures. Through this experience, Pat stumbled upon several key answers, from which he developed his own program. Now he has all the financing he needs, and much more. “Investing in businesses in one way lending institutions make their living, so they want to make loans. They’re calling me, eagerly offering to finance my business,” says Gage.
Pat Gage was the featured speaker at the Mega Evening Event, in Livonia, where he shared his secrets and tips for obtaining business lines of credit and unsecured loans. He explained how to properly set up a business and the importance of keeping it separate from one’s personal assets. Even the naming of a business can create red flags as Pat explained.
The program Pat introduced incorporates the tools needed for setting up a corporation correctly, knowing all the business and licensing requirements, understanding the IRS requirements, setting up a Dun and Bradstreet business credit profile, creating the business vendor or trade credit accounts, acquiring unlimited unsecured business credit cards, transferring balances to improve a credit profile, understanding and using leasing credit, and obtaining unlimited unsecured business lines of credit, and learning how to lay the groundwork for future requests—getting more capital than anyone could even imagine for their business.
Pat Gage, The Opportunity Creator, and a leading expert in the field of business credit has helped a number of clients target his specialty, starting, expanding, and growing their businesses through his trademarked 10 Steps to Money System. The Opportunity Creator is not only a sought after business credit coach but also a national speaker. For more information on any topic discussed, visit Gage’s site at http://www.10stepstomoney.com/
Detroit, MI — Many real estate investors and business owners are suffering in today’s economy. Some are closing down, others face bankruptcy, because they do not know how to get the capital needed to operate or expand their business. They spend time and money on application fees, phone calls, letters, etc… and just end up frustrated and closer to being broke.
Pat Gage, the Opportunity Creator, went through this too; he nearly went bankrupt, spinning his wheels to obtain the financing needed to run his business. He attended seminars and purchased materials from others who were successful. He networked with others to learn how they managed to finance their business ventures. Through this experience, Pat stumbled upon several key answers, from which he developed his own program. Now he has all the financing he needs, and much more. “Investing in businesses in one way lending institutions make their living, so they want to make loans. They’re calling me, eagerly offering to finance my business,” says Gage.
Pat Gage was the featured speaker at the Mega Evening Event, in Livonia, where he shared his secrets and tips for obtaining business lines of credit and unsecured loans. He explained how to properly set up a business and the importance of keeping it separate from one’s personal assets. Even the naming of a business can create red flags as Pat explained.
The program Pat introduced incorporates the tools needed for setting up a corporation correctly, knowing all the business and licensing requirements, understanding the IRS requirements, setting up a Dun and Bradstreet business credit profile, creating the business vendor or trade credit accounts, acquiring unlimited unsecured business credit cards, transferring balances to improve a credit profile, understanding and using leasing credit, and obtaining unlimited unsecured business lines of credit, and learning how to lay the groundwork for future requests—getting more capital than anyone could even imagine for their business.
Pat Gage, The Opportunity Creator, and a leading expert in the field of business credit has helped a number of clients target his specialty, starting, expanding, and growing their businesses through his trademarked 10 Steps to Money System. The Opportunity Creator is not only a sought after business credit coach but also a national speaker. For more information on any topic discussed, visit Gage’s site at http://www.10stepstomoney.com/
Pat Gage-Nationwide-Business Lines of Credit
So there you are – you’ve done all your research, scoped out the competition, found your marketing niche, and spent countless hours planning precisely how you’re going to open, then operate your business.
It looks like a slam-dunk, except for one tiny problem – you need a bunch of cash to turn your dream into reality. Sure, you’re willing to put in as much as you can as far as time and effort. Maybe you can hit up your rich Aunt Gertrude for a few bucks. But, you still may need additional cash to get your business up-and-running.
What to do, and where to go to do it? Starting a business cash-poor is the quickest way of having that business cash you out – right on your ear. That will make neither you, nor Aunt Gertrude, very happy. So, you put on your, I-Need-A-Business-Line-Of-Credit hat and do a little thinking. Voila! The light goes on and blinks the word “Bank”. Halleluiah! Let’s open the doors and get this business rolling!
Or not. Stopping in to see your friendly neighborhood banker for a business line of credit takes a little more than shinned shoes, and an honest, open smile. That might have cut it with Aunt Gertrude, but your Business Loan Officer will be a bit more demanding. The Business Loan Officer is going to want to have a serious discussion about your business credit profile. This will help him decide your creditworthiness as a business. And that, not incidentally, is going to bring up the question of how you create one in the first place!
First, it’s essential that you separate your personal credit from your business credit. Reason? Personal credit is for your household expenses and business credit is to start, or expand your business. Your business will need more money than your household. If you use your personal credit to fund your business you could seem overextended to the banks and could be declined for any personal household credit needs, such as a new house or car.
How do you do this? Actually it’s simple. All you need to do is incorporate your business. There are several different entities to choose from, C or S-Corporation, or LLC (Limited Liability Company). That makes your business a self-sustaining entity, and takes away any personal liability.
. Next, Uncle Sam is going to require that your business have a Federal EIN, which is like the social security number for your business. Then, a separate bank account under the business’ name is required. And of course, you’ll need to comply with all local regulations regarding permits, licenses, etc. Naturally, you’ll have to get a business phone number (not a cell phone). You can use your cell phone as a secondary line but the banks will check to see if your business phone number is a land line in your business name corresponding to the physical address you have given as your business address. Now your physical address could be your home. If you do indeed work from home, that’s okay. The important thing is that all of your business information is consistent.
The last step will be establishing a business credit profile with Dun & Bradstreet and the other business credit bureaus. These are the premier credit rating company’s that all banks turn to. To do this, you’ll need to get several business vendors who’ll extend you a small amount of credit. Pay those bills promptly, and those vendors can then be used as credit references. They will be reporting your payment history so the banks can check your business credit.
Getting that first business line of credit isn’t rocket science. It just takes a little bit of work, and a lot of attention to detail.
Pat Gage, The Opportunity Creator, and a leading expert in the field of business credit has helped a number of clients target his specialty, starting, expanding, and growing their businesses through his trademarked 10 Steps to Money System. The Opportunity Creator is not only a sought after business credit coach but also a national speaker. For more information on any topic discussed, visit Gage’s site at http://www.10stepstomoney.com
It looks like a slam-dunk, except for one tiny problem – you need a bunch of cash to turn your dream into reality. Sure, you’re willing to put in as much as you can as far as time and effort. Maybe you can hit up your rich Aunt Gertrude for a few bucks. But, you still may need additional cash to get your business up-and-running.
What to do, and where to go to do it? Starting a business cash-poor is the quickest way of having that business cash you out – right on your ear. That will make neither you, nor Aunt Gertrude, very happy. So, you put on your, I-Need-A-Business-Line-Of-Credit hat and do a little thinking. Voila! The light goes on and blinks the word “Bank”. Halleluiah! Let’s open the doors and get this business rolling!
Or not. Stopping in to see your friendly neighborhood banker for a business line of credit takes a little more than shinned shoes, and an honest, open smile. That might have cut it with Aunt Gertrude, but your Business Loan Officer will be a bit more demanding. The Business Loan Officer is going to want to have a serious discussion about your business credit profile. This will help him decide your creditworthiness as a business. And that, not incidentally, is going to bring up the question of how you create one in the first place!
First, it’s essential that you separate your personal credit from your business credit. Reason? Personal credit is for your household expenses and business credit is to start, or expand your business. Your business will need more money than your household. If you use your personal credit to fund your business you could seem overextended to the banks and could be declined for any personal household credit needs, such as a new house or car.
How do you do this? Actually it’s simple. All you need to do is incorporate your business. There are several different entities to choose from, C or S-Corporation, or LLC (Limited Liability Company). That makes your business a self-sustaining entity, and takes away any personal liability.
. Next, Uncle Sam is going to require that your business have a Federal EIN, which is like the social security number for your business. Then, a separate bank account under the business’ name is required. And of course, you’ll need to comply with all local regulations regarding permits, licenses, etc. Naturally, you’ll have to get a business phone number (not a cell phone). You can use your cell phone as a secondary line but the banks will check to see if your business phone number is a land line in your business name corresponding to the physical address you have given as your business address. Now your physical address could be your home. If you do indeed work from home, that’s okay. The important thing is that all of your business information is consistent.
The last step will be establishing a business credit profile with Dun & Bradstreet and the other business credit bureaus. These are the premier credit rating company’s that all banks turn to. To do this, you’ll need to get several business vendors who’ll extend you a small amount of credit. Pay those bills promptly, and those vendors can then be used as credit references. They will be reporting your payment history so the banks can check your business credit.
Getting that first business line of credit isn’t rocket science. It just takes a little bit of work, and a lot of attention to detail.
Pat Gage, The Opportunity Creator, and a leading expert in the field of business credit has helped a number of clients target his specialty, starting, expanding, and growing their businesses through his trademarked 10 Steps to Money System. The Opportunity Creator is not only a sought after business credit coach but also a national speaker. For more information on any topic discussed, visit Gage’s site at http://www.10stepstomoney.com
RECEIPT FOR Disaster - MIXING YOUR BUSINESS FINANCES WITH YOUR PERSONAL FINANCES
One of the most common business mistakes I see many small business owners and entrepreneurs make, is commingling their business and personal finances. The result can often be catastrophic. And for the most part, small business owners aren’t even aware of the implications. How so? Glad you asked.
In a word, “credit”. In two words, “bad credit”. This phenomenon usually manifests itself when the business owner applies for credit to buy a car, or even get a mortgage. That’s when the big, red, rubber stamp slaps down, “rejected” on his/her file. Or, when the dunning phone calls from business creditors become more frequent than calls from Aunt Sadie, who has nothing better to do than phone several times a day.
The result of all this commingling of credit can often result in two of the ugliest words in the English language – “bankruptcy” and “lawsuit”. Unfortunately, many small business owners don’t even see it coming.
How can something like this happen? Most often it’s because the small business owner used personal funds to either launch, or finance the expansion of their business. This can involve using personal credit cards, even taking out a Home Equity Loan or Home Equity Line of Credit. This commingling pierces the corporate veil, which opens you up personally to lawsuits. The money goes into the business on the premise that the business will pay it back. But, whoops!, when sales go down, and the business can’t afford to make the payments, it all comes home to roost. Unfortunately.
The best thing is not to get into this situation in the first place, but many small business owners and entrepreneurs are unaware of how they can establish a separate business credit profile. And this can often result in unfortunate consequences. If they only took the time to investigate how to do it, it could save them untold grief later on. But how does a small business do this?
Establish sound business financial practices from the outset. Make certain that when you plan your entrance into the small business arena, you do so both carefully, and realistically. Start establishing your business credit profile immediately. Set up your corporation (C or S-) or LLC (Limited Liability Company) properly. Next go to the IRS website and get your EIN for your business. This is like the social security number for your business. Set up your business bank account, with the same address you used for your legal paperwork to the state and government. Make sure that address is a physical address and not a P.O. Box or UPS store. Next is your business phone number and fax. Make sure this information is consistent and accurate. Make sure your business phone number is listed in the 411 National Directory Assistance with your physical business address. Create a business credit profile on your own or through Dun and Bradstreet.
Get your business familiar with Vendors that are in your business arena and get credit with them right away. Take the long-term view as to what you need to keep operating at a high level. Next, you need to pay your vendors promptly – very promptly, even if it means skipping your own salary at times (yes, this happens and you should plan for it). You’d be surprised, however, at how quickly your business credit profile will look rock-solid to a Business Loan Officer. And the better it looks, the better your chances of getting several unsecured lines of credit, which is exactly what you want.
There are many pit falls to starting or expanding a business, but commingling personal and business credit, and finances is one that should be strenuously avoided at all cost. And remember, be realistic about what you need – not what you want!
Pat Gage, The Opportunity Creator, and a leading expert in the field of business credit has helped a number of clients target his specialty, starting, expanding, and growing their businesses through his trademarked 10 Steps to Money System. The Opportunity Creator is not only a sought after business credit coach but also a national speaker. For more information on any topic discussed, visit Gage’s site at http://www.10stepstomoney.com
In a word, “credit”. In two words, “bad credit”. This phenomenon usually manifests itself when the business owner applies for credit to buy a car, or even get a mortgage. That’s when the big, red, rubber stamp slaps down, “rejected” on his/her file. Or, when the dunning phone calls from business creditors become more frequent than calls from Aunt Sadie, who has nothing better to do than phone several times a day.
The result of all this commingling of credit can often result in two of the ugliest words in the English language – “bankruptcy” and “lawsuit”. Unfortunately, many small business owners don’t even see it coming.
How can something like this happen? Most often it’s because the small business owner used personal funds to either launch, or finance the expansion of their business. This can involve using personal credit cards, even taking out a Home Equity Loan or Home Equity Line of Credit. This commingling pierces the corporate veil, which opens you up personally to lawsuits. The money goes into the business on the premise that the business will pay it back. But, whoops!, when sales go down, and the business can’t afford to make the payments, it all comes home to roost. Unfortunately.
The best thing is not to get into this situation in the first place, but many small business owners and entrepreneurs are unaware of how they can establish a separate business credit profile. And this can often result in unfortunate consequences. If they only took the time to investigate how to do it, it could save them untold grief later on. But how does a small business do this?
Establish sound business financial practices from the outset. Make certain that when you plan your entrance into the small business arena, you do so both carefully, and realistically. Start establishing your business credit profile immediately. Set up your corporation (C or S-) or LLC (Limited Liability Company) properly. Next go to the IRS website and get your EIN for your business. This is like the social security number for your business. Set up your business bank account, with the same address you used for your legal paperwork to the state and government. Make sure that address is a physical address and not a P.O. Box or UPS store. Next is your business phone number and fax. Make sure this information is consistent and accurate. Make sure your business phone number is listed in the 411 National Directory Assistance with your physical business address. Create a business credit profile on your own or through Dun and Bradstreet.
Get your business familiar with Vendors that are in your business arena and get credit with them right away. Take the long-term view as to what you need to keep operating at a high level. Next, you need to pay your vendors promptly – very promptly, even if it means skipping your own salary at times (yes, this happens and you should plan for it). You’d be surprised, however, at how quickly your business credit profile will look rock-solid to a Business Loan Officer. And the better it looks, the better your chances of getting several unsecured lines of credit, which is exactly what you want.
There are many pit falls to starting or expanding a business, but commingling personal and business credit, and finances is one that should be strenuously avoided at all cost. And remember, be realistic about what you need – not what you want!
Pat Gage, The Opportunity Creator, and a leading expert in the field of business credit has helped a number of clients target his specialty, starting, expanding, and growing their businesses through his trademarked 10 Steps to Money System. The Opportunity Creator is not only a sought after business credit coach but also a national speaker. For more information on any topic discussed, visit Gage’s site at http://www.10stepstomoney.com
Obtaining Business Lines of Credit To Fund Your Business
Let’s say your business needs a capital infusion. Things are going well, but you need extra cash to expand, hire new employees, make improvements, increase marketing – whatever. Where do you turn to get the cash you need? Can you leverage your business to fund your goals? And how do you do it? Actually, there are more ways of getting funding than you probably thought.
Assuming your business is in good shape, pays its bills promptly, has a good cash flow, and is professionally managed, you have a lot of options. You can probably narrow down the list by scratching off Venture Capitalists and Angels. The former are only interested in lending you money if you plan to go public at some point. Angels (not the celestial kind!), might be interested if you have a lock on the, “next big thing,” but only if the payoff is calculated in the tens-of-millions of $$. You may not be quite there yet.
What does that leave? One valuable option is to start creating a business credit profile for your business. Creating a business credit profile can be done easily and can offer any number of business loans, from Working Capital, to Lines of Credit, to Construction, to Term Loans, to even business credit cards. If you already have a good working relationship with your Business Loan Officer, this is probably the first place to look, once you have your business credit profile in place. They know you, and you’ll be able to skip much of the red tape. This makes sense a lot of the time. But hold on! You have quite a few other options available.
Business credit cards, for example. All major business credit card companies have branched into commercial lending. Obtaining cash from this method is usually easier than other sources. However, this method of financing still needs an established business credit profile. Because lending institutions don’t lend money to sole proprietors. That’s called a personal loan. This is one option to be considered. Business credit cards can be useful in many ways and have reasonable interest rates as well. Once you have established your business entity, you will be receiving numerous offers from business credit card companies to apply. This is a great way to have access to capital. Remember that your business credit cards do not show up on your personal credit report. So any business debt that appears on your personal credit can be transferred to your business credit card, freeing up your personal debt to income ratio. This will increase your personal credit score almost immediately. Many times the credit card companies will offer 0% interest for a limited time (I’ve seen up to one year), then have a reasonable interest rate afterwards (anywhere from 8-14%). That’s far better than a hard money lender or private lender.
Then there’s unsecured lines of credit. The objective is to stimulate micro-enterprises and provide unsecured loans of up to $50,000 to small businesses. You can apply for unsecured lines of credit through your bank or many other institutions that offer them. Once again your business credit profile will need to be in place. Typically, an unsecured line of credit has an interest rate of Prime plus one or two points, depending on some factors that are taken into account. But the bonus here is that the money is unsecured which means you don’t have to put up any collateral for it. This type of lending does not require any financial statements as well. This gives you flexibility especially if your business doesn’t have a great cash flow yet. This is a great method for obtaining capital for your business whether it’s to expand, advertise, or market a new idea.
Pat Gage, The Opportunity Creator, and a leading expert in the field of business credit has helped a number of clients target his specialty, starting, expanding, and growing their businesses through his trademarked 10 Steps to Money System. The Opportunity Creator is not only a sought after business credit coach but also a national speaker. For more information on any topic discussed, visit Gage’s site at http://www.10stepstomoney.com
Assuming your business is in good shape, pays its bills promptly, has a good cash flow, and is professionally managed, you have a lot of options. You can probably narrow down the list by scratching off Venture Capitalists and Angels. The former are only interested in lending you money if you plan to go public at some point. Angels (not the celestial kind!), might be interested if you have a lock on the, “next big thing,” but only if the payoff is calculated in the tens-of-millions of $$. You may not be quite there yet.
What does that leave? One valuable option is to start creating a business credit profile for your business. Creating a business credit profile can be done easily and can offer any number of business loans, from Working Capital, to Lines of Credit, to Construction, to Term Loans, to even business credit cards. If you already have a good working relationship with your Business Loan Officer, this is probably the first place to look, once you have your business credit profile in place. They know you, and you’ll be able to skip much of the red tape. This makes sense a lot of the time. But hold on! You have quite a few other options available.
Business credit cards, for example. All major business credit card companies have branched into commercial lending. Obtaining cash from this method is usually easier than other sources. However, this method of financing still needs an established business credit profile. Because lending institutions don’t lend money to sole proprietors. That’s called a personal loan. This is one option to be considered. Business credit cards can be useful in many ways and have reasonable interest rates as well. Once you have established your business entity, you will be receiving numerous offers from business credit card companies to apply. This is a great way to have access to capital. Remember that your business credit cards do not show up on your personal credit report. So any business debt that appears on your personal credit can be transferred to your business credit card, freeing up your personal debt to income ratio. This will increase your personal credit score almost immediately. Many times the credit card companies will offer 0% interest for a limited time (I’ve seen up to one year), then have a reasonable interest rate afterwards (anywhere from 8-14%). That’s far better than a hard money lender or private lender.
Then there’s unsecured lines of credit. The objective is to stimulate micro-enterprises and provide unsecured loans of up to $50,000 to small businesses. You can apply for unsecured lines of credit through your bank or many other institutions that offer them. Once again your business credit profile will need to be in place. Typically, an unsecured line of credit has an interest rate of Prime plus one or two points, depending on some factors that are taken into account. But the bonus here is that the money is unsecured which means you don’t have to put up any collateral for it. This type of lending does not require any financial statements as well. This gives you flexibility especially if your business doesn’t have a great cash flow yet. This is a great method for obtaining capital for your business whether it’s to expand, advertise, or market a new idea.
Pat Gage, The Opportunity Creator, and a leading expert in the field of business credit has helped a number of clients target his specialty, starting, expanding, and growing their businesses through his trademarked 10 Steps to Money System. The Opportunity Creator is not only a sought after business credit coach but also a national speaker. For more information on any topic discussed, visit Gage’s site at http://www.10stepstomoney.com
Start Business with Lousy Credit? Pat Gage, Denver, Colorado
You may be trying to start a business, or have one that’s in its initial stages. Your idea is great, your plan is flawless, and your product or service is ready for the fast lane. Only problem is, that super-charged, can’t-miss-small-business of yours is sitting by the side of the road. It’s stuck, and it’s out of gas.
The analogy may not be great, but if you’re in that type of situation, you know what it’s all about. Your personal credit rating is less than stellar. You found out just how bad, when the bank’s Business Loan Officer gave you a look of horror when you told him what you wanted to borrow, and why.
Let’s face it, he probably couldn’t wait to get you out of his office fast enough. Is there anything you can do to jump-start this situation? Yes there is. In fact, there a number of avenues you need to explore.
First things first. There are three credit reporting agencies, Equifax, Experian and TransUnion. You want to get your tri-merge credit report, which is a report from all 3 credit bureaus. Once you get them in hand, you’ll have a clear idea of exactly where you stand – and just as importantly, why.
Review each and every report. Look for errors, because (guess what), the credit bureaus do make them. Maybe a bill they’re reporting as unpaid, involved a dispute. Maybe a credit card purchase wasn’t yours. If you find any glitches, report them immediately to the credit bureau involved. You can also enlist the services of an established credit repair company, if you’re not sure how to handle the disputes yourself.
Creating a business credit profile can also be an answer to your credit issue. By creating a business credit profile, you can start establishing credit for your business, which is separate than your personal FICO score. Establishing a business credit profile can help you get your business started while working to improve your personal FICO score. Once you establish your business credit profile your business can start applying for business credit cards and other types of business financing.
But, when you get business credit cards, keep your personal and business credit separate – very separate. Many folks fall prey to the temptation of using business credit cards for personal expenses. This is more than a red flag to business lenders, it’s a giant red balloon. Commingling your funds can cause many problems for your accountant and attorney. When you commingle your personal and business funds, you open the door to lawsuits and your bookkeeping becomes a nightmare.
Business credit cards can be a great source of financing. One misconception is that business credit cards have a high interest rate. This just isn’t true. Many business credit cards fall in the interest rate range of 8-14%. But more importantly remember this; it’s not always the cost of money that’s important, but the availability of money. Wouldn’t you like to have an extra $30,000, $50,000, or even $100,000 right now to start or expand your business? Make sure you are diligent about making payments on time and, two things will happen: First, the credit card company will court your business, and probably offer you a credit line increase. Second, your credit standing will improve with the bank. Bank’s love it when you’ve demonstrated the ability to pay off a loan – even if it’s not theirs.
Finally, make certain that you use your credit wisely, and strictly for the business. And more importantly, to improve the business – new equipment or hiring employees, marketing, whatever it takes. This will show a Loan Officer that you’re serious about what you’re doing, and will make you a more attractive loan candidate.
Pat Gage, The Opportunity Creator, and a leading expert in the field of business credit has helped a number of clients target his specialty, starting, expanding, and growing their businesses through his trademarked 10 Steps to Money System. The Opportunity Creator is not only a sought after business credit coach but also a national speaker. For more information on any topic discussed, visit Gage’s site at http://www.10stepstomoney.com
The analogy may not be great, but if you’re in that type of situation, you know what it’s all about. Your personal credit rating is less than stellar. You found out just how bad, when the bank’s Business Loan Officer gave you a look of horror when you told him what you wanted to borrow, and why.
Let’s face it, he probably couldn’t wait to get you out of his office fast enough. Is there anything you can do to jump-start this situation? Yes there is. In fact, there a number of avenues you need to explore.
First things first. There are three credit reporting agencies, Equifax, Experian and TransUnion. You want to get your tri-merge credit report, which is a report from all 3 credit bureaus. Once you get them in hand, you’ll have a clear idea of exactly where you stand – and just as importantly, why.
Review each and every report. Look for errors, because (guess what), the credit bureaus do make them. Maybe a bill they’re reporting as unpaid, involved a dispute. Maybe a credit card purchase wasn’t yours. If you find any glitches, report them immediately to the credit bureau involved. You can also enlist the services of an established credit repair company, if you’re not sure how to handle the disputes yourself.
Creating a business credit profile can also be an answer to your credit issue. By creating a business credit profile, you can start establishing credit for your business, which is separate than your personal FICO score. Establishing a business credit profile can help you get your business started while working to improve your personal FICO score. Once you establish your business credit profile your business can start applying for business credit cards and other types of business financing.
But, when you get business credit cards, keep your personal and business credit separate – very separate. Many folks fall prey to the temptation of using business credit cards for personal expenses. This is more than a red flag to business lenders, it’s a giant red balloon. Commingling your funds can cause many problems for your accountant and attorney. When you commingle your personal and business funds, you open the door to lawsuits and your bookkeeping becomes a nightmare.
Business credit cards can be a great source of financing. One misconception is that business credit cards have a high interest rate. This just isn’t true. Many business credit cards fall in the interest rate range of 8-14%. But more importantly remember this; it’s not always the cost of money that’s important, but the availability of money. Wouldn’t you like to have an extra $30,000, $50,000, or even $100,000 right now to start or expand your business? Make sure you are diligent about making payments on time and, two things will happen: First, the credit card company will court your business, and probably offer you a credit line increase. Second, your credit standing will improve with the bank. Bank’s love it when you’ve demonstrated the ability to pay off a loan – even if it’s not theirs.
Finally, make certain that you use your credit wisely, and strictly for the business. And more importantly, to improve the business – new equipment or hiring employees, marketing, whatever it takes. This will show a Loan Officer that you’re serious about what you’re doing, and will make you a more attractive loan candidate.
Pat Gage, The Opportunity Creator, and a leading expert in the field of business credit has helped a number of clients target his specialty, starting, expanding, and growing their businesses through his trademarked 10 Steps to Money System. The Opportunity Creator is not only a sought after business credit coach but also a national speaker. For more information on any topic discussed, visit Gage’s site at http://www.10stepstomoney.com
The Information that Banks will need for Business Credit Lines
Getting a business credit line from a bank isn’t the easiest thing to do – especially if you’re a start-up. Seed money, working capital, and other forms of loans, require that you pass a series of credit related checks.
So what do banks look for, and what can you expect? We’re going to tell you.
High on the list of establishing business credit is, of course, your personal credit history. No surprise there. If you’re a start-up, lenders will be looking at your personal credit. Banks won’t want to see late payments, missed payments, liens or a bankruptcy. The negative impact of these, and other credit deficiencies could have a substantial impact on your loan request. A late payment, here or there, won’t kill your chances, but if there’s a pattern of late payments, it very well could. If, however, you have a good explanation as to why these credit deficiencies exist, your chances of approval could increase. It’s probably a good idea to check your personal credit reports to clear up any possible discrepancies that could adversely affect your application. If your business is a start up, you may need to use your personal credit in the beginning, and while you’re doing that you can begin to establish your business credit profile as well.
But let’s say you’re already in business, and haven’t established a business credit history yet. Now it’s your business’ credit that comes into play. Dun and Bradstreet, Experian, and Equifax are often the sources the banks will turn to when reviewing your business credit reports, including history, public record information, company background and supplier payment history. Whether you’ve been in business one day or 10 years, if you haven’t established a business credit profile, then your business is still at Day One. But it’s never too late to get started. If you’re a start-up, the bank is going to look for some solid financial projections. Remember the projections you use, are based on the assumption that you’re going to get the financing needed. Work with a financial specialist to put your numbers together. The money you spend on a financial consultant will be well worth it, and the bank will appreciate your professionalism.
If you’re already in business, the same applies. But now you have real figures to present to the bank. Assuming that they’re good, that should be it, right? Wrong. The bank is going to want to see what you want the loan for. Working capital, expansion, new equipment are always good. A loan to take your top producers for a rewards week in the Caribbean is not.
Collateral doesn’t have to come into play when you apply for business credit. Why is this? Because the banks lend business lines of credit without it. They’re called unsecured credit cards and unsecured lines of credit. These are great avenues for any business that perhaps doesn’t have the business collateral. It’s never a good idea to use personal collateral to fund your business. The banks will generally lend up to $50,000 without collateral on these types of loans. The banks do require a strong business credit profile and sometimes a good personal credit profile and these can be easily established and obtained. Lenders know that there’s a strong correlation between your commitment to your business and the loan being repaid.
In the end, getting business credit is all about the figures. Do they or don’t they work. If they do, and if you present your case in a straightforward manner, you’ll put your business in the best light, and in all probability, get the loan. Always remember that the bank wants to lend you money. It’s up to you to show that you can repay the loan.
Pat Gage, The Opportunity Creator, and a leading expert in the field of business credit has helped a number of clients target his specialty, starting, expanding, and growing their businesses through his trademarked 10 Steps to Money System. The Opportunity Creator is not only a sought after business credit coach but also a national speaker. For more information on any topic discussed, visit Gage’s site at http://www.10stepstomoney.com
So what do banks look for, and what can you expect? We’re going to tell you.
High on the list of establishing business credit is, of course, your personal credit history. No surprise there. If you’re a start-up, lenders will be looking at your personal credit. Banks won’t want to see late payments, missed payments, liens or a bankruptcy. The negative impact of these, and other credit deficiencies could have a substantial impact on your loan request. A late payment, here or there, won’t kill your chances, but if there’s a pattern of late payments, it very well could. If, however, you have a good explanation as to why these credit deficiencies exist, your chances of approval could increase. It’s probably a good idea to check your personal credit reports to clear up any possible discrepancies that could adversely affect your application. If your business is a start up, you may need to use your personal credit in the beginning, and while you’re doing that you can begin to establish your business credit profile as well.
But let’s say you’re already in business, and haven’t established a business credit history yet. Now it’s your business’ credit that comes into play. Dun and Bradstreet, Experian, and Equifax are often the sources the banks will turn to when reviewing your business credit reports, including history, public record information, company background and supplier payment history. Whether you’ve been in business one day or 10 years, if you haven’t established a business credit profile, then your business is still at Day One. But it’s never too late to get started. If you’re a start-up, the bank is going to look for some solid financial projections. Remember the projections you use, are based on the assumption that you’re going to get the financing needed. Work with a financial specialist to put your numbers together. The money you spend on a financial consultant will be well worth it, and the bank will appreciate your professionalism.
If you’re already in business, the same applies. But now you have real figures to present to the bank. Assuming that they’re good, that should be it, right? Wrong. The bank is going to want to see what you want the loan for. Working capital, expansion, new equipment are always good. A loan to take your top producers for a rewards week in the Caribbean is not.
Collateral doesn’t have to come into play when you apply for business credit. Why is this? Because the banks lend business lines of credit without it. They’re called unsecured credit cards and unsecured lines of credit. These are great avenues for any business that perhaps doesn’t have the business collateral. It’s never a good idea to use personal collateral to fund your business. The banks will generally lend up to $50,000 without collateral on these types of loans. The banks do require a strong business credit profile and sometimes a good personal credit profile and these can be easily established and obtained. Lenders know that there’s a strong correlation between your commitment to your business and the loan being repaid.
In the end, getting business credit is all about the figures. Do they or don’t they work. If they do, and if you present your case in a straightforward manner, you’ll put your business in the best light, and in all probability, get the loan. Always remember that the bank wants to lend you money. It’s up to you to show that you can repay the loan.
Pat Gage, The Opportunity Creator, and a leading expert in the field of business credit has helped a number of clients target his specialty, starting, expanding, and growing their businesses through his trademarked 10 Steps to Money System. The Opportunity Creator is not only a sought after business credit coach but also a national speaker. For more information on any topic discussed, visit Gage’s site at http://www.10stepstomoney.com
Business Credit Cards: Pat Gage, Pittsburgh, Pennsylvania
To any business, either a start-up or established, business credit cards can be very valuable financial tools if managed properly. Remember also, that because they’re business credit cards, they are unsecured and do not report on your personal credit report. Which means there is no collateral tied to them. Great benefit!! But if used improperly, it can have a devastating affect on your business’ credit profile, and hence, your business itself.
Managing your business credit cards doesn’t require an MBA from Harvard, or a financial specialist looking over your shoulder every time you plunk it down. But it does require careful monitoring, and plain old common sense. Here are a few tips you can use to get the most from your business credit cards:
· Always apply at your primary bank first. Why? Because you’ve already established a banking relationship which can pave the way for an easy application process. In short – they know you. Once you get the business credit cards, and pay them in a timely manner, it will increase your credit worthiness in the eyes of the bank. This will be of significant help when you apply for additional business lines of credit later on.
· Never co-mingle your business credit cards with your personal credit cards. However, here’s a little secret to the game. If you have business debt on your personal credit cards, transfer balance the debt to your business credit card and this will immediately improve your personal credit score by lowering your debt to income ratio. This is a huge benefit of being a business owner.
· Once your business credit is established, you’ll be deluged by special offers from credit card companies on a daily basis. When you’re invited to apply and the offer is good, then apply. Remember this: Just because you have applied and received a business credit card, doesn’t mean you have to use it immediately. It’s always a good idea to have extra “Rainy Day” money available. Every business goes through ups and downs and having the money available can be invaluable during one of those down times. It’s always easier to get money when you don’t need it.
· By all means, use the grace period when paying your business credit cards. Most providers of business credit cards offer a 21-day grace period before payment is due. This can be a big help in improving your cash flow, and it’s built-in for you to use. Don’t abuse it, and don’t pay later than the grace period deadline, however.
· Like many business transactions today, you can pay your business credit card bill online. This may not sound like such a big deal, but when you think of the time and effort it takes to write out and mail a check, it’s really a good deal. Especially since the mail can sometimes be unpredictable. Knowing you can choose the exact date your bill is paid, is priceless.
· Do not pay your credit card bills late! Yes, take advantage of the grace period, but paying late, especially if it develops into a habit, will end up costing a lot more than the actual bill. Late fees will bring about higher interest rates. But more importantly, late payments will go straight to your business’ credit profile – and you don’t want it there, especially if you plan on trying to get a line of credit from your bank or lender in the near future. Pay the bills on time, if possible.
Finally, always remember that your business credit card can be a very effective tool in managing your company’s finances. But like any tool, if handled improperly, it can cause irreparable harm – in this case, to your company’s business financial profile. Use it wisely!
Pat Gage, The Opportunity Creator, and a leading expert in the field of business credit has helped a number of clients target his specialty, starting, expanding, and growing their businesses through his trademarked 10 Steps to Money System. The Opportunity Creator is not only a sought after business credit coach but also a national speaker. For more information on any topic discussed, visit Gage’s site at http://www.10stepstomoney.com
Managing your business credit cards doesn’t require an MBA from Harvard, or a financial specialist looking over your shoulder every time you plunk it down. But it does require careful monitoring, and plain old common sense. Here are a few tips you can use to get the most from your business credit cards:
· Always apply at your primary bank first. Why? Because you’ve already established a banking relationship which can pave the way for an easy application process. In short – they know you. Once you get the business credit cards, and pay them in a timely manner, it will increase your credit worthiness in the eyes of the bank. This will be of significant help when you apply for additional business lines of credit later on.
· Never co-mingle your business credit cards with your personal credit cards. However, here’s a little secret to the game. If you have business debt on your personal credit cards, transfer balance the debt to your business credit card and this will immediately improve your personal credit score by lowering your debt to income ratio. This is a huge benefit of being a business owner.
· Once your business credit is established, you’ll be deluged by special offers from credit card companies on a daily basis. When you’re invited to apply and the offer is good, then apply. Remember this: Just because you have applied and received a business credit card, doesn’t mean you have to use it immediately. It’s always a good idea to have extra “Rainy Day” money available. Every business goes through ups and downs and having the money available can be invaluable during one of those down times. It’s always easier to get money when you don’t need it.
· By all means, use the grace period when paying your business credit cards. Most providers of business credit cards offer a 21-day grace period before payment is due. This can be a big help in improving your cash flow, and it’s built-in for you to use. Don’t abuse it, and don’t pay later than the grace period deadline, however.
· Like many business transactions today, you can pay your business credit card bill online. This may not sound like such a big deal, but when you think of the time and effort it takes to write out and mail a check, it’s really a good deal. Especially since the mail can sometimes be unpredictable. Knowing you can choose the exact date your bill is paid, is priceless.
· Do not pay your credit card bills late! Yes, take advantage of the grace period, but paying late, especially if it develops into a habit, will end up costing a lot more than the actual bill. Late fees will bring about higher interest rates. But more importantly, late payments will go straight to your business’ credit profile – and you don’t want it there, especially if you plan on trying to get a line of credit from your bank or lender in the near future. Pay the bills on time, if possible.
Finally, always remember that your business credit card can be a very effective tool in managing your company’s finances. But like any tool, if handled improperly, it can cause irreparable harm – in this case, to your company’s business financial profile. Use it wisely!
Pat Gage, The Opportunity Creator, and a leading expert in the field of business credit has helped a number of clients target his specialty, starting, expanding, and growing their businesses through his trademarked 10 Steps to Money System. The Opportunity Creator is not only a sought after business credit coach but also a national speaker. For more information on any topic discussed, visit Gage’s site at http://www.10stepstomoney.com
Business Lines of Credit with Bad Credit? You better!
It shouldn’t come as a surprise that banks are more than willing to loan money to people with good credit, but shy away from those whose credit is less than perfect. Does that mean the loan you need for your small business is doomed? Not necessarily, because bad credit financing does exist.
First, there are other lenders out there who will, and they generally come in two forms – wealthy individuals (often local) who will make loans to local businesses. Uncovering them may take a bit of detective work, but they certainly are there. Then there are firms that specialize in small business loans to those whose credit is shaky. There are hundreds of them across the country, and they can easily be found on the Internet. But just because they’re there, doesn’t mean they’ll automatically approve your loan. Far from it. You have to persuade them that you’re a viable candidate, and to do that is going to require some work.
Here’s what you do: The very first step is separate your bad personal credit from your business credit. This is very, very important. You can do this by forming a corporation (S or C) or an LLC (Limited Liability Company) and applying for an EIN (Employer Identification Number). This allows you to begin establishing a business credit profile that’s completely separate from your personal credit. It’s like starting with a totally clean balance sheet.
The next step is fairly obvious. You have to build a strong business credit profile. That means finding suppliers who will report your payment history to the business credit bureaus-Dun and Bradstreet, Experian, and Equifax and making sure you are paying your suppliers on time, and adhering to other sound business practices. Make sure all your business information is correct and consistent with all of the business credit bureaus. Also, bring in a good financial consultant to prepare financial statements for your company. Any potential lender you contact is going to want to see a strong, professionally prepared financial statement. Even if your business is a start up you can still put together a financial statement with projections. This is acceptable to most any lender. Remember that you’re asking for unsecured lines of credit, which means you don’t have to use assets for collateral. Don’t even think about trying to do this yourself. Really!
And, of course, there’s still the problem of your personal credit situation. Even though you separate it from your business, it’s not going to go away, and will still be a factor in many lender’s decision process. You’re going to have to show that you’re making progress in rectifying the situation. This includes your ability to explain why and how your bad credit happened, and what steps you’re taking to remediate it. So pull your credit from all 3 credit bureaus-Experian, Equifax, and Trans Union and review it. If you’re unsure how to read them, enlist a credit repair company to assist you. Lenders want to see that you’re making an honest effort to correct past mistakes and avoid them in the future.
Essentially, it’s important for you to know that there are lenders out there (many in fact), who are willing to loan your small business money, even if your personal credit is pretty suspect. These companies, and individuals, make their money by making exactly these kinds of loans. It’s their business. Their specialty. It’s what they do. They want to loan you the funds you need. But it’s up to you to put in the effort and make the case that your business is worthy of the line of credit you seek. Remember, the lender is only looking for one thing: Your ability to pay back the loan.
Pat Gage, The Opportunity Creator, and a leading expert in the field of business credit has helped a number of clients target his specialty, starting, expanding, and growing their businesses through his trademarked 10 Steps to Money System. The Opportunity Creator is not only a sought after business credit coach but also a national speaker. For more information on any topic discussed, visit Gage’s site at http://www.10stepstomoney.com
First, there are other lenders out there who will, and they generally come in two forms – wealthy individuals (often local) who will make loans to local businesses. Uncovering them may take a bit of detective work, but they certainly are there. Then there are firms that specialize in small business loans to those whose credit is shaky. There are hundreds of them across the country, and they can easily be found on the Internet. But just because they’re there, doesn’t mean they’ll automatically approve your loan. Far from it. You have to persuade them that you’re a viable candidate, and to do that is going to require some work.
Here’s what you do: The very first step is separate your bad personal credit from your business credit. This is very, very important. You can do this by forming a corporation (S or C) or an LLC (Limited Liability Company) and applying for an EIN (Employer Identification Number). This allows you to begin establishing a business credit profile that’s completely separate from your personal credit. It’s like starting with a totally clean balance sheet.
The next step is fairly obvious. You have to build a strong business credit profile. That means finding suppliers who will report your payment history to the business credit bureaus-Dun and Bradstreet, Experian, and Equifax and making sure you are paying your suppliers on time, and adhering to other sound business practices. Make sure all your business information is correct and consistent with all of the business credit bureaus. Also, bring in a good financial consultant to prepare financial statements for your company. Any potential lender you contact is going to want to see a strong, professionally prepared financial statement. Even if your business is a start up you can still put together a financial statement with projections. This is acceptable to most any lender. Remember that you’re asking for unsecured lines of credit, which means you don’t have to use assets for collateral. Don’t even think about trying to do this yourself. Really!
And, of course, there’s still the problem of your personal credit situation. Even though you separate it from your business, it’s not going to go away, and will still be a factor in many lender’s decision process. You’re going to have to show that you’re making progress in rectifying the situation. This includes your ability to explain why and how your bad credit happened, and what steps you’re taking to remediate it. So pull your credit from all 3 credit bureaus-Experian, Equifax, and Trans Union and review it. If you’re unsure how to read them, enlist a credit repair company to assist you. Lenders want to see that you’re making an honest effort to correct past mistakes and avoid them in the future.
Essentially, it’s important for you to know that there are lenders out there (many in fact), who are willing to loan your small business money, even if your personal credit is pretty suspect. These companies, and individuals, make their money by making exactly these kinds of loans. It’s their business. Their specialty. It’s what they do. They want to loan you the funds you need. But it’s up to you to put in the effort and make the case that your business is worthy of the line of credit you seek. Remember, the lender is only looking for one thing: Your ability to pay back the loan.
Pat Gage, The Opportunity Creator, and a leading expert in the field of business credit has helped a number of clients target his specialty, starting, expanding, and growing their businesses through his trademarked 10 Steps to Money System. The Opportunity Creator is not only a sought after business credit coach but also a national speaker. For more information on any topic discussed, visit Gage’s site at http://www.10stepstomoney.com
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