Hillary Clinton hasn’t ruled out a third presidential run, but 2020 could prove harder than 2016
Improve Your Chances Of Getting A Business Loan
Is your money shrinking and you feel like you need a business loan? Too many people feel the pressure of throwing together a loan package quickly. These are three identifiable and proven ways to improve your chances of getting a business loan.
Apply for a business Loan with your Business Name Instead of Your Given Name: For instance, use your business loan, "Sarah's Block Company" versus your given name - "Sara Smart." The reason you need to apply for a business loan in your business name is because it is a business loan - Not a personal loan. The banks and loan institutions are more than happy to help your business with a business loan, but they shy away from making a business loan to a person. Having a business that is a corporation or LLC improves your rate of success - For example, an S-Corp, C-Corp, or LLC.
Sole Proprietors have difficulty as business owners getting a business loan because they lack the same credibility of being identified as a 'business' that goes with a business formed as a corporation - A business that is complete with By-Laws, tax ID number and business bank account. A business portrays the 'image' of success better than a person does. It's because of that, that lending institutions work better for those business people. As a sole proprietor, a person 'appears' to be acting in their own interests as an individual-instead of a business. Loans to sole proprietors are rated on the personal credit history and not a separate business history for the credit reporting agencies. That doesn't look good to loaning institutions.
Even Corporations can mix up personal and business debt. It's an easy trap to get caught in. Let's say that you own a construction company and you get a construction loan to develop a piece of property, but use that money to make repairs on your personal home. Although there are multiple ways to justify this, the financial company won't see it that way. Neither will the IRS agent at tax time. And there is a double penalty for doing this too - If you are audited and have mixed your expenses the IRS may choose to 'dis-allow' ALL your business expenses. You can see quickly that this could become the stuff people describe as, "the stuff that hits the fan."
There are countless examples of mixing business with personal expenses - let's say you get a business loan for a business computer, but you have some extra cash from the loan. You may think to yourself that you could get that new computer for the kids with the extra money - Bad choice.
On the other side of a business loan is a credit card in your business name. If you practice the same behavior with the credit card that you do the business loan, you will experience the same results.
The second thing to happen from this is that now you are taking a chance on damaging your personal credit score. This lower credit score affects all things with the passing of time. When you truly need the business loan - at a later date - You may not qualify.
Credit scores are a fickle bunch. They depend and rely heavily on past performance, previous and current balances and how close to your credit card limit your balance is (for example, do you have a credit limit of $500, and have charged $480 on that credit card? Consistently? This means that you are 'always' in debt at over 90 percent of your credit card limit).
At that rate, with a few of those over 50% of your total "AVAILABLE" balance listed on your credit history, your business loan approval rating goes down to about a zero. Available balance means the total balance you are listed as having access to - For instance, your balance is $250.00, but you have an available balance of $500.00, so (in theory) you could charge up to $500.00.
Don't do it - Never charge your credit card balance over half of the total balance available to you. Even $1.00 will make a difference on your credit score (a negative one).
Another thing you might not know about credit scores is this: If you want to get the best deal on a car or any other item and you use a 'credit broker,' to help you. The job of a credit broker is to take your personal and business Identification and go shopping with your credit for the bet deal they can get you. As your credit is 'hit ' with each inquiry from the individual 'dealers,' your credit score goes down an average of 2-4 points per inquiry, per credit bureau. That means if you went car shopping and your credit broker found 40 different credit buying 'deals' for you, your total credit score would be reduced approximately 80-160 total points per credit reporting agency. If you were marginal good credit before - Now your credit stinks. Plus, as your credit scores spirals down, the interest rate you qualify for goes up - Whoa! It's a game for them. It stinks for you.
The ultimate outcome from all of this is that now you are ready to get a business loan. As the owner - or principal of your business, your banker needs your personal credit score to judge whether you are a good credit risk for your business loan. To complete that business loan with any success, your score must be a good one. This is a great thing to remember when you are beginning in business. It's how you protect yourself that counts.
Get more than one business loan application from more than one lending institution - Not just one. Imagine that this is your business: You are a corporation with a clean credit record. You are new to business and have not yet applied for a loan in your business name, so you have no business history in debt repayment to reference for a business bank loan. Your company is expanding and you need to take it to the next level. You need a couple of additional employees and some specialized tools to manufacture and produce your product for the additional customers you have added to your lists.
Where in the world will you go to ask for that money? You have no loan history.
Don't let a lack of business loan history stop you. Go ahead and figure out what you need to move forward and ask for several small business loans instead of one large business loan. Your chances of business loan approval are dramatically increased by using this method and you will gain experience with creating a loan history easier for about the same cost as one large loan for everything.
You may be better off to apply for an unsecured line of credit that could be based on your stated income versus a full-blown loan application process. Sometimes that's key to whether or not you get the money you need and the approval you want. Not only are these lines of credit easier to get, because they offer fewer restrictions, but they will give you a business history to reference the next time you need to expand and grow your business.
Also, you could also use up to HALF of any credit card balances you have available to you as unsecured loans to get you going through that expansion phase. keep in mind credit card interest rates, penalties for late payments and other factors that may mess up your credit. Plan for the worst case scenario and have a back-up in place for that situation or it will haunt you.
And that, is simply a three-step process for business loan success.
kinds of business
characteristics of business
list of businesses
business plural
busyness
meaning of business pdf
list of businesses
business expert
kinds of business
business basics
business owner
small business newspapers
international business news articles
bbc science and technology
bbc market watch
bbc live news
bbc one news
current events in the uk
characteristics of business
kinds of business
concept of business
company business definition
list of businesses
busyness definition
business articles 2018
business articles cnn
international business news articles
articles about business management
new york times technology
ny market
simple definition of business
kinds of business
features of business
what is business studies
busyness definition
list of businesses
wall street journal business and tech
wall street journal tech editor
wall street journal indian economy 2018
wsj deals
wall street stock market
us business news
sba registration
sba consulting services
sba business plan pdf
business administration statistics
business articles cnn
articles about business management
forbes
stock market news
wall street journal
bloomberg
business cards
business casual
business
business insider
business google
business yelp
business for sale
business plan template
business name generator
business card holder
business card size
business loan
business insurance
business plan
business administration
business facebook
business news
business card template
business ideas
business analyst
business intelligence
business law
business model canvas
business yelp login
business game
business model
business of fashion
businessman
business online
business email
business name search
business wire
business from home
business proposal template
business backpack
business bank account
business for sale near me
business name ideas
business partner
business suit
business banking
business tax
business case
business haircut
business standard
business news today
business woman
business dictionary
business game simulation
business yellow pages
business report
business operations manager
business etiquette
business stat
business time
business funding
business email address
business development job description
business to business
business quarters
business hours sign
business model generation
business name checker
business associate
business psychology
business development director
business as usual
business english
business universities
business youtube
business requirements
business unit
business transformation
business run
business jobs near me
business bank account free
business banking hsbc
business tax rates
business green
business wars
business hashtags
business jacket
business car leasing
business kpi
business hotel
business developer
business development executive
business game online
business model generation pdf
business 80 20 rule
business lyrics
business yoga pants
business rates
business email sample
business accelerator
business controller
business history
business justification
business entity concept
business recorder
business job titles
business jargon generator
business travel insurance
business angels
business knowledge
business glossary
business 40 closure
60 business days from today
business 411
business you can do from home
business update
business quiz
business 2.0
business 101 books
business visa vietnam
business on amazon
business university ranking
business barclaycard
business 365 premium
business zone
business 101 pdf
business 360
business cards uk
business finance solutions
business growth fund
business kids
business zip code
business quotation
business 0 apr credit cards
business 80
business 3
business 80 traffic
business for sale london
business studio
business z class
business 40 construction
business 777 emirates
business 85
business 5000
business 83
business 3.0
business trainline
business 30 day credit account
business 5th edition
business ideas uk
business use classes
business 4.0 ppt
business 50k
business zakat
business for sale cornwall
business lounge oslo airport
business vocabulary in use pdf
business 1300
business zakat calculator
business 7
business 102
business 1st
business xchange
business 4 ps
business 0lan
business 1st birthday
business 2 business leicester
business 5 lakhs
business 7 ps
business 900
business 901
business 9609 notes
business geografic
business grammar and practice pdf
business kaise kare
business ki jankari
business kya hai
business online kazan
business vocabulary in use elementary pdf
business xl magazine
business zone uk
business zoo
business 200 trolley wardrobe
business 702
