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Cash Flow, Credit, Collateral for Business Credit & Financing

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Cash Flow, Credit, Collateral for Business Credit & Financing   If you are looking for money for your business, then you will be happy to know you only need one “C” to qualify.   In lending when we look to see if a client is fundable, we are looking for one of the 4 “C”s. You do not have to have all of the 4 “C”s, only 1 is needed to secure funding.   The first C is Cash Flow. When you have an existing business with good cash flow you can qualify for business funding.   If you have verifiable cash flow, this substantially increases your chances of being approved for funding.   There are many funding programs you might qualify for including Business Revenue Lending.   If you do not have cash flow, your business still might have Collateral, the second C.   Collateral for your business is really your business assets. Many things can be used as collateral including equipment, purchase orders, even account receivables.  ...
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What is Bank Credit for Business?

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What is Bank Credit for Business? Bank credit is the total amount of borrowing capacity a business can obtain from the banking system.   Banks have their own internal way of scoring and rating businesses credit worthiness. They do this through a system called bank ratings, which rates the credit worthiness of a business from the bank’s perspective.   A business can secure more business credit quickly as long as it has a minimum of one bank reference and an average daily account balance of at least $10,000 for the past three months.   What lenders REALLY want to see is that a business has this $10,000 average balance. When a business has this, it yields a “Bank Rating” of Low-5, meaning the business has an average-daily-balance of $5,000 to $30,000.   A business that has a balance of $7,000 to $9,999 will net the business a lower rating such as a High-4, which will make it harder for a business to get approved for bank financing. Here is the a...
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