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Category Archives for Business Credit

Merchant Cash Advances for Individuals with Bad Credit

Yesterday we talked about 2 types of loans you could use Revenue-Based Lending and Revenue-Based Credit Lines. Check out Part 1 here.

But what if those aren’t available for your business. Well here is another way to get cashflow and have bad credit. Merchant Cash Advances. . .

Merchant Cash Advances

Most business owners are not familiar with Merchant Cash Advances. Merchant Cash Advances leverage your positive credit card processing history to get you approved, and not your personal credit scores. This is a great benefit to those who don’t have good personal credit to qualify for traditional lending.

Merchant cash advances are just like revenue-based lending except the lender only looks at your merchant account sales for qualification. This means they only look at your credit card sales to determine your approval amount’ This is not like revenue-based lending where the lender looks at all your business’s cash and check deposits. This type of financing is even easier to qualify than revenue-based lending.

With a Merchant Cash Advance, the money is advanced to you based on how much you process each in credit card transactions each month. Merchant cash advance loans can be obtained up to $250,000 depending on how much you process each month in credit card transactions. With Merchant cash advances, the lender advances you money against your future credit card sales. 

You can usually get approved with only $5,000 in monthly revenue and only six months in business, whereas revenue-based lending requires at least one year in business and over $10,000 a month in revenue. 

You can get approved with a credit score as low as 500, and without any collateral. Approvals and funding can all be obtained in as little as 48 hours with a bank and merchant statement review. Rates are usually higher with merchant advances than with revenue lending, but the approval is easier.

In most cases the lending source will request that you change your merchant services processor to theirs, this merchant services processor is the company that you process your credit cards through.

REQUIRED TO QUALIFY: Consistent cash flow

LOAN AMOUNTS: $5,000 – $500,000

We’d love to help you grow cashflow for you business, and establish business credit, even without your SSN, this year. Schedule a time with us today at: calendly.com/bizcred/consult

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Revenue-Based Lending and Revenue-Based Credit Lines for Individuals with Bad Credit

When bad credit has you down and the banks won’t lend to your business, then it’s time to think outside the bank. The banks don’t want you to learn about the hundreds of thousands of dollars available to your business right now- even if you have bad credit.

You only need to know where to look. I’ve helped hundreds of clients find money when they thought they were completely out of options. I’ve put together a list of the seven best small business loans for folks with bad credit.

I’ve separated the 7 small business loans into four parts. Here is part 1 of 4.

Revenue-Based Lending

Most business owners are not familiar with Business Revenue lending. However, this is the fastest, and easiest type of business financing you can get approved for. Even with a credit score as low as 500 you can get funded quickly, with no cumbersome document requests and reviews. 

If you manage your bank account responsibly and have consistent monthly revenue, then you can be approved. With revenue lending, even if your revenue goes down, then your payment also goes down proportionally. This can be extremely helpful for seasonal industries. Revenue financing focuses only on the business’s revenue to get you approved for funding.

Some loan sharks would have you sell them a percentage of your company for a small loan. Instead of selling ownership in your company, with revenue-based capital, you keep full ownership of your business but sell the rights to a portion of your company’s future revenue. 

You are basically selling your future revenue for a discount, or fee. The fee can be as low as 8%, or as high as 45% depending on your risk. You won’t need collateral for approval. Lenders will usually withdraw money daily from your bank account. But weekly and monthly paybacks are also available.

If your business has $10,000 of monthly revenue or more, then your business might qualify for revenue lending. You can be approved by simply providing 6 months of bank statements for review. Typically, you can get approved and get your money in 72 hours or less.

Lending sources will want to see that you’ve been in business for at least one year. If, however, you’ve been in business less than one year or have less than $10,000 in monthly revenue, you still might be able to get approved, if you have compensating factors such as good credit or collateral. 

REQUIRED TO QUALIFY: Consistent cash flow

LOAN AMOUNTS: $5,000 – $500,000

Revenue-Based Credit Lines

Some lenders are now issuing revenue credit lines on top of their normal loans. This is a BIG deal because this is one of the only types of true business credit lines that you can get when you don’t have good personal credit. 

If you are lower risk such as being in business for over five years, having good personal credit, or good bank account management, you might get approved for both a revenue lending deal and credit lines. 

For example: we’ve seen clients get approved for a $200,000 revenue-based loan. At the same time the lender also offers a $25,000 line of credit line to go with it, because of their lower risk due to strong business financials. 

To get approved you should be in business at least one year and have at least $10,000 in monthly revenue. You’ll also need consistent cash flow and good bank account management. This means having six or more deposits in a month and having a positive bank balance at the end of each month.

REQUIRED TO QUALIFY: Consistent cash flow 

LOAN AMOUNTS: $10,000 – $50,000

We’d love to help you grow cashflow for you business, and establish business credit, even without your SSN, this year. Schedule a time with us today at: calendly.com/bizcred/consult

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How To Get A Duns Number

Growing businesses are using their DUNS number to accelerate business growth. Do you have a DUNS number? Do you know how to get one?

Before we cover the step-by-step process of getting a free DUNS Number below, you may be wondering what exactly is a DUNS Number? It is a 9-digit number that identifies your business credit profile with Dun and Bradstreet. 

Dun and Bradstreet (D&B) is the biggest business credit reporting agency in the world. D&B holds over 200 million business records on file and provides information on businesses for use in credit decisions.

The main credit score used in the business world is known as a Paydex score which is provided by D&B. If you own a business, your Paydex score is essential in establishing new credit and continuing to build credit limits exceeding $10,000.

You really only have one of two options: Option 1- Sign up online through the free DUNS Number application; Or Option 2- Purchase D&B monitoring. 

How is your business credit profile created with D&B? A D&B profile is created when the business applies for a DUNS Number.

D & B does give you the option to expedite a free DUNS Number request for $49.99. However, most business owners find that they can wait the two weeks required for the free DUNS Number.

Here’s 5 things you should consider before applying for a free DUNS Number:

  1. Use the correct business information: It is important that your business name, address, phone number and other business information is correct on your business credit report.
  2. The information listed on your business credit report and all other business records should exactly match.
  3. If possible, the business should have an actual physical business address. A physical business location can add business credibility.
  4. Your business address should be a real address listed with the United States Postal Service. For example, if you are using a suite number that isn’t a listed suite with the United Postal Service, your address can’t be verified by lenders or the business credit agencies. Additionally, don’t share a business address with another business to avoid reporting issues.
  5. Be prepared to answer verification questions. D&B’s system will ask personal background questions to verify the business owner. This assures that an actual, authorized individual sets up the business’s DUNS Number.

Here is the step-by-step guide to getting a free DUNS Number.

  1. Start on D&B’s website (dnb.com) and hover over the tab “D-U-N-S Number” then click on “Get a D-U-N-S Number”.
  2. The system will then prompt you for “Primary Reason for D-U-N-S Number”. You are given three options: 
    1. I have a U.S. based business
    2. I’m an Apple Developer
    3. I’m a U.S. Government Contractor or Grantee

If you’re not facilitating a government contract or part of the Apple Developer Program or the Apple Developer Enterprise Program., then select “I have a U.S. based business”.

  1. Now enter the business name, address, and phone number to search the D&B database for an existing profile. If your business already has a D&B profile but the information was incorrect, you can update your existing profile with the correct information. If the business doesn’t have an existing profile, click Get a New D-U-N-S Number”.
  2. You’ll then see 3 options:
    1. D-U-N-S Number + CreditSignal (Free)
    2. DUNSFile + CreditSignal ($229)
    3. Small Business Starter +CreditSignal ($999)

Click on “Get Started” under the D-U-N-S Number + CreditSignal option on the left of the page.

  1. Enter the Company Information (1 of 2) * Required Fields: Business Name, Year Business Started, Number of Employees, Business Description, Business Phone, Business Email, Business Structure, and Business Address. D&B will also ask you to upload 2 legal documents with the business’s name and address clearly indicated.
    1. D&B will accept any of the following document types for business verification processing. Uploading two documents from this list is recommended:
      1. •  Articles of Incorporation/Certificate of Amendment of Articles of Incorporation/Secretary of State Approved Business Registration/Secretary of State Certificate of Filing
      2. •  EIN/TIN Confirmation Letter
      3. •  Proof of a business phone service
      4. •  Proof of a utility bill in your company’s name
      5. •  Proof of a business insurance such as a workers-compensation policy or casualty insurance
      6. •  Proof of a business lease (i.e., building, vehicles, equipment)

On the Company Information (1 of 2) page, you will be asked for the Business Description which is related to your SIC Code. Standard Industrial Classification is a number that is assigned to a certain industry. 

If you aren’t sure what your industry is, click on the field and type in a keyword to search for your industry. For instance, if you are a consulting company you will enter “consulting” as a keyword search. The closest match will be displayed so you can select the desired industry.

  1. Lastly you’ll enter your Personal Information (2 of 2) * Required Fields: First Name, Last Name, Email, Password, and Confirm Password. Then click on the “Submit” button below.

Once you have applied for a DUNS Number, your profile will be created. It takes D&B, on average, two weeks to email you your DUNS Number. Be advised that D&B will contact you to sell you additional products.

The D&B sales team is extremely aggressive in their sales tactics. These are 3 common phrases business owners will hear from D&B sales reps in emails and voicemail messages:

“You have inquires on your business credit you need to purchase monitoring.:

“Your business profile won’t be activated unless you purchase this.

“You can’t build business credit without this.”

Keep in mind these are sales tactics. It’s important to understand you don’t have to make a purchase.

That’s how you get a free DUNS Number, but there is so much more you need to do to build your business credit successfully. For more information on how to obtain a DUNS Number and monitor your business credit profile, build and grow your business credit, go to calendly.com/bizcred/consult and sign up for a free 30-minute consult with the business credit professionals.

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What are the benefits of direct funding and business credit?

Imagine having the ability to access $50,000, $100,000, even $250,000 for your business.

Now imagine doing this with NO personal credit check and NO personal guarantee.

Your success in business will be determined based on your business credit profile and score.

With a good business credit profile, you will have near unlimited borrowing power. Without having a good business credit profile, it will be a difficult path to success without having access to working capital and funding. This is why almost all Fortune 500 companies use their business credit to secure funding.

It’s not that they need the money to operate. Successful companies use funding as leverage to grow their business. Business Credit is the best kept secret in business. Over 90% of all business owners know nothing about business credit or business credit scores. But when you do discover the power of what business credit can do for you and your business you will be floored at how easy it is to get money and grow your business. 

One of the many benefits of business credit is that you can obtain funding with no personal credit check. With a strong business credit profile, lenders will lend you money based on your business credit, not your personal credit. This is excellent if you have personal credit issues as you can still qualify for funding.

Even with exceptional personal credit, business credit gives you DOUBLE the borrowing power. You can get approved for much higher funding amounts using your business credit than you would if you used your personal credit to qualify.

Another great benefit of business credit is there is no personal guarantee required for much of the funding you obtain. This means you can be approved with no personal liability; so if you ever do default, the creditor can’t pursue your personal assets like your home or personal bank accounts.

Business credit adds more value to your business and gives your business credibility. Stakeholders, partners, lenders, even potential buyers of your business will see more value in your business if you have a strong business credit profile built. 

Even more important is having a good business credit profile built which increases your peace of mind and security. It is much easier to run your business with working capital as it takes money to make money. Business credit gives you security as it is much easier to run your business when working capital is easy to come by.

Through our finance suite’s Direct Funding you can access credit cards and credit lines for your business up to $50,000 or more within 3 weeks or less without supplying financials- even as a brand-new startup. You can easily be approved for thousands of dollars in business credit within weeks.

Our Direct Funding suite gives you access to all legitimate funding sources including SBA loans, equipment loans, merchant loans, and hundreds more. Unless you knew exactly the type of financing you are looking for, you would not know many of the existing available financing options exist. Factoring companies, credit unions, merchant companies, private and angel investors all have money to lend to you right now.

Every kind of legitimate financing option that is available today can be obtained through our Direct Funding suite. Wrapping a vehicle can sometimes costs upwards of $2,500 or more, so consider using Wrap Financing instead of paying out-of-pocket.

With a 650 personal credit score or higher you can qualify for many types these of unsecured funding. Don’t wait until the last minute to try and get funding, get started today and have the peace of mind and security your business needs at wiseguysinties.com

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