Character, Capital, Capacity, Conditions, and Collateral Obtaining Business Credit

Character, Capital, Capacity, Conditions, and Collateral

Obtaining Business Credit

 

Character is all about you.

It is about your personal history, your stability, and how reliable you are. This variable is more subjective than the others and is one of several reasons that it is beneficial to do business with a bank where you have established a relationship with the people who work there. In determining your character, the lender may look at your education, your work history, your personal income, and personal credit history. Again, it is important to remember that this is one area of business credit where relationships do matter!

Capital is about how much you have invested in your business. Whether you are seeking a bank loan or a loan from a private investor, they will want to see that you are heavily invested in your own business. Generally speaking, the more of your personal money that you have invested in your business, the better it will look to a potential lender. (After all, if you are not confident enough to invest in your business, why would they be?)

Capacity is about your ability to repay a loan according to the terms. Things like cash flow, payment history, and the assets and resources of any person providing a personal guarantee will play a part in determining your capacity to pay back a loan. Collateral is something offered up as security for a loan. Anything from equipment to inventory to a home you own can be considered collateral. It may be easier to get approved for loans with collateral and many loans will require it. In some cases, the more that you can offer as collateral, the more likely you will be able to get approved.

“Conditions” may mean any number of things - some of which could be out of your control. The current economy, for instance, may play a role in your ability to get approved for a loan. Other things that they may look at may include your industry (gambling, pornography, and marijuana are just a few examples) and its economic status, including the purpose of the loan.

If your industry is suffering and businesses in your industry are struggling, it could negatively affect your ability to get approved. Also, some loan purposes are more readily approved than others. Loans for riskier purposes such as new and unproven expansions are generally less likely to be approved.

About the Author

My name is Ramona Christine.  You can call me Coach RC.  I am a Credit and Life Coach in addition to serving my community as a Therapist and Pastoral Care provider.

 

My goal as a credit and life coach is to provide you with vital information to you get your business off the ground with access to business credit and financing.  So, whether you are sitting on a plan (or a dream) to start a business, or whether you are already established as a business, I can move or support you through the necessary steps for absolute financial autonomy by gaining you access to credit repair, business credit building, business loans, business cash, and business financing.

 

The whole purpose of having a business, besides providing awesome products or services, is to obtain personal security through financial independence.  Isn’t it?

 

If you are anywhere near where I was two years ago, you may find yourself totally stretched out financially and with your personal credit trying to get your business off the ground or keeping it on the ground.  This may be how you happened across my information.  You were searching for innovative or easier ways to fund the growth and stability of your business.

 

Two years ago, I over-extended my personal finances and credit cards to nurture my business.  Although I had been providing services as a Therapist since 2013 and as a Pastoral Counselor since 2016, I had not formalized (legally structured) my business.  I simply did what I did and threw any earned income into my personal bank account (rut roh!  Big no,no.)  I primarily traveled as a mental health care provider.

 

As my business progressively grew, I wanted to formalize my business and obtain an office location (great idea!).  I took advantage of my own money and credit to get the office, furnish the office, buy office supplies, hire an assistant, and pay for marketing services including websites, social media management, utility expenses, travel and auto expenses, and more.  After about six months of fronting my business money from my personal assets and account, I saw a huge hit against my consumer credit (oh no!).  Because my cards were maxed out and my cash was low, my consumer credit score was reduced by over 150 points.  That is a lot for consumer credit scores!  I was so disappointed by this reality check that I began to research…. “How do other businesses do it?”, “How does someone with limited income and finances start a business or keep one on the ground?”

 

Here I am!  Ready to teach you what I learned and to save your valuable time.

I did my research.  It took me eight months to figure it all out and get my first ball rolling.  I cannot believe how fast it all happened for me once I implemented what I am about to teach you.  By providing you with this information, I am saving you months of research and extremely valuable time.  I am providing you with this information, but I am also available to support you through the steps, in the event you do not have time – that is, because you may be too busy running your business.  Many of the steps you will have to do yourself, but I am always available for consultation and guidance.  I have made a lot of the information available for download.  You can learn more and download the information by visiting https://embracedforsuccess.com or by emailing your questions to ready2b@embracedforsucess.com.  Be sure to include your name, phone number, and email address in any email correspondence.

 

How does one get their business financially off the ground without over-extending their personal finances?  Now, if you have a lot of money to personally invest into your business, that is awesome.  However, whether you have a lot of finances to invest or not, this vital information just may keep funds in your pocket.  So, hold up before you reach into your pocket!

 

What exactly is formalizing your business?  This is exactly it!  How you structure your business and how it appears to the lending and banking industries is vital to obtaining business credit and financing.  Simply Google your business name.  What comes up?  How would I find your business if I were looking?  I will provide you with the keys to properly structuring your business and building your professional and financial credibility.

 

Building business credit is a process.  You will be amazed at just how fast it all happens.  Building financial and professional credibility requires patience and endurance although, unlike consumer credit, the process happens extremely quickly.  Within 60 days of implementing what I am going to teach you in this channel, I was approved for my first revolving business credit line in the amount of $18,000.00.  Many testimonials on my website share how they were able to do the same in an even shorter time frame than me.  This is no lie nor is it an exaggeration.  Shortly after my first revolving credit line was established, I received my first business VISA credit card with a starting limit of $12,000.00.  I also have several other vendor and credit accounts for my business.  In total, within 6 months, I have over $60,000 in credit available to my business.  Can you imagine that?  And here I was trying to get formally established in an office with two of my highest consumer credit card accounts in the amounts of $2,500.00 and $4,300.00 (haha) while negatively impacting my consumer credit (bah-humbug).  There is much to know about the differences between consumer and business credit.  Keep following.

 

Being impressed with my credit limits is not the point.  The point is that I got business credit following the steps I share and support you through.  I am personally thrilled with my business credit limits because they suit my business’ needs.  I am just a little guy.  You may qualify for even more or maybe you are just a little guy too.  It all depends on what your business’ needs are and the growth that you plan for your company.  Dream big!  In all honesty, the only limit holding anyone back from gaining access to business credit and financing is limited information.

 

Business credit?  What is that?  Throughout this channel, I talk about the major differences between business and consumer credit.  The benefits are tremendous!  You may be surprised at how much power is involved with business credit.  If you are in search of business credit and financing, do NOT go to the bank.  You must line your T’s and dot your I’s first.  If you are interested and looking to learn more, follow this channel!  I will provide you with a checklist recipe to ensure that you will meet the requirements banks and lenders are looking for.  Believe me!  Once the first ball starts to roll, the rest follow very quickly.

 

Consumer credit coaching and consultation.  Too many that I know are afraid to even look at their consumer credit reports.  If you have been afraid to look or if you believe that you do not have the budget to address any issues in your consumer credit report, contact me today for an affordable consultation.  If your personal debt is less than $30,000.00, I highly recommend consulting with me prior to participating in a credit repair program.  What I learned from credit repair companies is that they charge a fee for their services (of course) in addition to interest.  They make it sound so simple, that they will contact your creditors directly on your behalf to make payments arrangements and ask the creditors to waive any interest or fees that have acquired on past due accounts.  They also upsell the fact that you will not have to deal with creditors anymore.  Once enrolled in their credit repair program, creditors will have to stop any direct contact with you.  This is awesome because you will not have to deal with them anymore.  I am here to tell you that much of what they do, you can do yourself.  You have the power to negotiate with creditors, but before doing that, it is important that you know what is and should not be on your consumer credit report.  If anything is on your consumer report that should not be there, a simple letter may get it removed.  One word of advice is to pay attention to the dates of anything reporting negatively on your consumer credit report.  Do NOT contact any creditor who has been on your report for over five years.  Once you contact them, the date of contact renews that reporting date.  Most debts on your consumer file legally must be removed after a certain amount of time has passed.

 

For $69.00, I will review your credit reports and write up a comprehensive credit repair report (with instructions) on how to repair (or improve) your consumer credit score.  Contact me for more information.

 

As a consumer, you have the right to obtain one free credit report every year.  Visit https://www.annualcreditreport.com/index.action to access your free credit reports.

Welcome again to Embrace(D) for Success!

 

Ramona Christine, Coach RC

Embrace(D) for Success; Coaching Credit Repair

 

Office: (720) 328-4074

Toll free:  (888) 267-8493

Support:  customer_care@coachingcreditrepair.com

Info:  ready2b@embracedforsuccess.com

Web:  https://embracedforsuccess.com

 

*In-person by appointment only.  Due to COVID-19, I am not providing in-person appointments for the remainder of the year of 2020.  I am available for consultations (including therapy and pastoral care) online via teleconferencing through Zoom or Skype and over the phone.  I typically respond to email messages within 24 hours.