Sources of Funding for Business Credit & Financing

Sources of Funding for Business Credit & Financing

 

There are many sources who offer business funding. Knowing the different sources will help you find the best funding options for your business and business needs.

Business Charge and Credit Cards are a fast and easy way to access cash for your business. You can use the money for any purpose(s), and you can be approved for business credit with no personal guarantee or credit check. Many merchants will approve you for individual credit cards starting with a credit limit of $10,000 or higher.

Angel investors have been responsible for funding over 30,000 small businesses each and every year. With over 250,000 active angels in the country you may want to consider an angel investor network to simplify your search. These investors are a great source of funding when banks will not approve you and angel investors are perfect for projects where you need a lot of money.

Asset Based Funding is perfect if your company has collateral such as accounts receivable, inventory, equipment, purchase orders, or real estate. These assets can be used to secure the financing you need and you can also secure asset-based funding even if your credit is not very good.

Bank Loans are still available, although they have become harder to get approved for. Many large banks tend to be much more conservative in lending so you may want to consider a community bank or credit union for a Small Business Administration (SBA) loan.

Equipment Leasing helps when you want to lease expensive equipment and some equipment leasing and financing also works for you to borrow against existing equipment you already own.

Factoring is perfect if you have high amounts of account receivables. You can obtain funding up to 25 million and you can receive your advance within 24-48 hours in most cases. With factoring, you sell your company’s accounts receivables to a company (known as a factor) at a discount, in order to free up your cash. The company that purchases the receivables then assumes the responsibility for collecting them. This is a great option as they absolutely do not care about your personal credit.

Grants are a great way to get money for your business, especially government grants. Depending on your business types and it’s intended use of funds, there are many options available for you to receive grant money that does not need to be paid back.

Lines of Credit are perfect sources of working capital. A line of credit works like a revolving credit card but with much lower interest rates and higher available credit limits. You can get credit lines over $150,000 and write checks from the account or use a debit card to withdrawal funds or use for purchases.

Merchant Cash Advances and Merchant Lines of Credit are perfect for businesses who process credit card payments. This type of financing will advance you money against future credit card transactions. You can even get a debit card to use the funds you secure.

Microfinance Loans are less difficult and time intensive to qualify for with loan amounts ranging from $500 to $35k. Many businesses use several micro loans to get money for their business versus applying for one larger loan due to the easier qualifying criteria.

SBA backed Loans are still one of the most popular financing options available today. SBA backs, or insures about 80% of the loan while the lender who is lending the money takes on about 20% or so of the risk. Due to the lower risk to the bank, many major banks are more apt to lend money using SBA backed loans than regular loans.

Venture capital is neither easy nor fast to be able to tap into but can be a viable source of funding. This is a great source when you need higher loan amounts, and don’t mind giving up a potential stake in your company. Plus, you don’t have some of the headaches that come with conventional funding.

It’s always easiest to obtain financing when you know what you are looking for. Now you have a great understanding of some of the many financing options available to small business owners today.

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.