As you have probably been reading in the press, the credit markets have tightened dramatically over the last 6 months.  So, while the government, figures out how many billions in credit (at 2.25%) they’re going to extend to Fannie Mae, and Freddie Mac, hard working business people like us are being shut out of the credit market all over the country.

It’s absolutely ridiculous, since it’s the banks themselves that are responsible for this crisis.  They brought down the house by making a adjustable rate mortgage loans to homebuyers whom they knew couldn’t afford the payments once those loans re-adjusted.  Hence the “foreclosure crisis” and the “mortgage meltdown”.

However, we do have one thing going for us.  The banks need to make loans.  It’s their only source of income.  So, you can virtually count on them to come up with some scheme to start lending money again.

And I want to tell you about the first opportunity I’ve discovered–and It’s a great one!  It’s the Business Credit Card!  That’s right.  You can use it just like any other credit card, you can get cash advances, and none of it will ever show up on your credit report!

And you can apply for multiple cards and build up a hefty line of credit.  How much will depend on your income and personal credit score.

So, here’s the link.  Please follow the instructions carefully (you’ll also get the instructions at the site):

1.  Go to the site and apply for 5-6 of at once [This is IMPORTANT—the apps must all be submitted on the same day].

2.  You’ll find out almost immediately how much your approved for,

3.  It won’t cost you a thing.

4.   And you’ll have the cards to use within a week or two.

Use this link NOW.  Who knows how long this loophole is going to last

Now, you can still get business lines of credit by clicking the box in the right-hand column of this page.  However, it will be a full doc loan, meaning that you will have to supply personal & business tax returns, and a financial statement as well as have good credit.  And the process may take a bit longer because there is more paperwork involved. 

If you’re needing money ASAP, then I think business credit cards are the way to go.

Credit, Credit Credit
First challenge that many business people have is a low credit score.  You are not alone, more than 2/3 of the population is in that boat.  However, there is much you can do about it. 
First, stop the bleeding.  Stop the behaviors that lead to a lower credit score in the first place.  Here’s some easy steps you can take today that will revolutionize your financial life.
Pay your bills on-time
That’s great advice, but how.  Very easy.  Most banks now have online banking (And if your bank doesn’t—switch!).  And a standard feature of online banking is an automatic bill paying feature.  So for all your bills with a fixed monthly (or any other frequency) payment, simply schedule the payment a few days in advance of when it’s due.  Set it up as a recurring payment for as many pay periods as you need, and forget about it.  You bills will now be paid on autopilot, on-time, like clockwork.
Expense Auto-pilot
Next, for those bills that vary from month to month, like utility and phone bills, set up an auto-debit.  This will take a little more work—you’ll have to call the companies, get them to fax you a form, fill it out, and fax or mail it back, signed with a voided copy of a check.
For other expenses – pay them immediately or put a note in your planner (or assistant’s planner) to remind you a week early to mail in the payment.
Invaluable Benefits
Then you’re done!  Gone will be the stressful evenings at the end of the month, writing checks, and worrying about your checking account balance.  Gone will be the headaches and embarrassment of receiving friendly or not so friendly overdue and collection notices.  And all for about an hour’s worth of your time, that you could mostly do today!
And another benefit you will find of paying all your bills on-time, is that your reputation among vendors, lenders, and others you do business with will start to climb.  And your own confidence, integrity and sense of accomplishment will also increase.  It’s a tremendous return on a small investment of time.

Click Here to Apply for your Business Line of Credit

Many Advantages of a Line of Credit
What would you do, if you could write up $500,000 in “convenience checks”?  How about using it for working capital to offset those times of lean cashflow?  Maybe you could now upgrade that antiquated IT set up to faster computers, better software, more efficient operation, or even replace an employee. And how about furnishing a new location you’d like to open up?   In short, It’s money to keep you afloat in lean times, and grow your business in the good times.  And it gives you a tremendous competitive advantage.
The disadvantage – you have to apply to a bank.  And you have to play by the bank’s rules.  You know the business “Golden Rule”: “He who has the gold, makes the rules.”  Actually this is also really an advantage, because all you have to do is follow the rules to the letter, and you get the money!
“But what if I don’t qualify?”, you may be asking yourself.  Our answer is—to every problem there’s a solution.  And in the next few posts, we’re going to be discussing solutions to the most common challenges that business people have to qualifying for a line of credit.

see the answer in our next post

In the list above, I hope the first four items will give you ideas on how to utilize your business assets to offer you greater liquidity. Many business owners despair when seeking an unsecured loan because despite having a successful business they fail to meet one or more of the qualifying criteria mentioned in item five above. Though the solutions take some preparation, they exist for most challenges.

If you don’t need money right now you are in the ideal position to start getting ready to make yourself a successful funding candidate. And by obtaining lines of credit now, you’ll be in an excellent position to expand your business or overcome a cash flow hiccup by merely writing a check. This should be part of every business plan, because all successful businesses need money at one time or another.

If financing your business is unfamiliar territory for you, or you don’t have the time to do the necessary research, seeking out a good business consultant with the experience and resources to help you is a wise move.

Need Help Qualifying, click here.

Every business needs money at some point in its operations. The key to your success is matching your current or future financing needs to the right funding strategy. It is essential to choose the right type of financing depending on the type of business you have, the stage it’s in, and your resources. Without these insights you could face a frustrating and stressful experience by going after the wrong type of funding, when success simply requires a shift in strategy.

The 2 ROI’s

All lenders are motivated by the 2 ROI’s: Return ON Investment (or, “What’s in it for me?”) and Return OF Investment. And as Will Rogers once said, “I am more concerned about the return OF my investment than I am the return ON my investment.” In other words, whether a lender will finance your business and the terms offered, will depend on that lender’s perception of the risk of getting their money back.

Collateralized loans require a business asset that the creditor can exert some control over to ensure repayment. The collateral could be real estate equity, as in mortgages and some types of SBA loans. Equipment or inventory owned by your business can also be used as collateral for the right type of loan. Your Accounts Receivable (money owed to you by your customers) is an asset that can be converted to cash by factoring. Even your cash flow from credit card receipts can be used to obtain financing.

For non collateralized or “unsecured” loans or lines of credit, your ability to pay becomes the primary determinant based on your income, debt to income ratio, your credit score and the history of your business.

Financing Strategy

To create the most successful funding strategy for your business, take an inventory of your business assets and your creditworthiness. Ask yourself:

1) Does your business own real estate? Usually at least 50% or more of that equity can be converted to cash through a conventional second mortgage or some types of SBA loans.

2) Are you purchasing new equipment or inventory, or do you have equipment and inventory that you use for generating income? If so, equipment leasing is a potentially good option for you.

3) Do you have large accounts receivable and need to cover the gap between billing and getting paid. A factoring company could be the perfect solution. However, be careful. The factoring terms can be complex and could end up costing you enormous rates of interest.

4) Do you take credit cards for payment and have receipts of $10,000 or more? These receipts can be used as collateral for a loan, and will be used to pay back the lender.

5) For unsecured loans, answering yes to the following three questions might make you a great candidate for an unsecured business line of credit.

a. Do you have a credit score above 680?
b. Do you have a business history of 2 years or more?
c. Is your Debt to income ratio 25% or lower?

To Find out how you can qualify click here.

A business line of credit can come in mighty handy when you need cash for your business. And if you think that this is only available to the big players with plenty of cash—think again! There are some restrictions, but generally speaking, any business that is a state-registered entity, has been in business for 2 years and has income and a good credit history, is eligible for one of these loans.

Now there are 3 ways to get business lines of credit:

1) Open your junk mail – you’ll find that you regularly receive offers of credit cards from banks and credit card companies saying that “Your Company” is approved for “up to $100,000” in credit. Instead of tossing it in the wastebasket, open it, fill it out and mail it back. There’s a very good chance you’ll get approved for some amount (although not always the $100K ?).

2) Cold calling Banks – It’s time-consuming, and you’ll have to fill in (usually by hand) numerous multi-paged applications. Each bank has its own requirements and concerns. And without the right strategy, you’ll have the banks working against you!

3) Use a Consultant. Business Capital Connection can provide strategic advice on what the best funding sources are for your particular needs and type of business. They have established relationships with lenders and know what they expect and need. Often, they can expedite the application and approval process.

One final thought: When is the hardest time to get money? When you need it! So, whether you’re considering expanding your business or upgrading your equipment or facilities, start working on your business lines of credit NOW. Since you don’t pay interest until you borrow the funds, the cost is minimal, and the reward is great.

Find out how you can Qualify, even if you need to improve some of your eligibility criteria, click here.

Successful businesses need money to grow and prosper. So, while your business may be making enough to meet payroll and fund operations, if you want to expand, upgrade your equipment, move to a larger space, or you are in need of working capital to tide you over, you usually need an outside source of funding.

Fortunately there are a variety of strategies and sources of funding that today’s businesses can use to meet their financial needs. These sources of funding include

• Business Lines of Credit
• Equipment Leasing
• Business Credit Cards
• Credit Card Receipt Advances
• Factoring of Accounts Payable
• SBA Loans
• Real Estate Mortgages
• Auto Loans

Whew! How is a business person to know which source is best for their particular situation, and then where to go, to get the financing? We regularly advise our clients on these questions, and in this article I am going to discuss the most versatile and useful of all funding:

The Unsecured Business Line of Credit

Why is an unsecured business line of credit the most useful kind of financing for most businesses? Because:

1) It’s unsecured, meaning the business or business owner does not have to provide collateral for the loan. Most of the other sources require collateral in the form of real property or attachment of your income stream.

2) It’s a revolving credit account –qualify for it once, and use it many times. Borrow up to the amount of the line any time you like. Pay it back, and borrow against any balance remaining in the line

3) It’s simple – once approved, you can borrow funds just by writing a check. No paperwork, forms or phone calls.

4) You only pay interest on what you borrow, so your interest charges are minimized.

5) You can use the money for any purpose whatsoever. There is no oversight or review.

6) The credit line and the debt service don’t show up on your personal credit report

7) You can negotiate both the interest rate and the amount of the credit.

It’s really the “holy grail” of business financing.

To see how you can qualify for one, click here.