If you have collateral you might qualify for business financing… even if you have challenged personal credit and no cash flow.
Acceptable collateral might include:
Call Us to see how much money and credit you can get for your business right now.
What is business credit?
Most people are familiar with how personal credit works. You start with no credit profile, get small credit cards to initially build your credit score, then as your credit grows you can use it to qualify for loans, auto vehicle financing, even mortgages.
With business credit you can do the exact same thing. A business itself can also start with nothing, put small credit accounts on the report called “vendor” accounts to establish a score, then that credit can be used to qualify for loans, auto vehicle financing, even mortgages.
Having business credit provides any business owner some major advantages. For one, with both personal and business credit built the business owner has double the borrowing power as the owner now has two profiles they can use to obtain credit.
When business credit is built the right way, it can be built with no personal credit check or guarantee. This makes it perfect for credit challenged individuals, and those who want to eliminated their personal liability on their business debts.
All too many business owners get into serious trouble, lose their personal assets, even file personal bankruptcies, all to get rid of business debt. With business credit this doesn’t need to happen as the business owner them self isn’t liable for the business debts, only the business is.
That means in case of default, the lender couldn’t pursue the personal assets of the business owner. SBA states that business credit approvals are typically 10-100 times higher than consumer credit approvals. So another benefit of business credit is the business can obtain A LOT more money in approvals.
And, business credit can be built quickly, much faster than consumer credit. It takes 6 months for an initial consumer credit score to even be established. With business credit it is very practical for a business to qualify for credit within 90 days or less, then build that credit to a point where the business is getting $10,000 credit card approvalswithin 6 months or less.
Business credit is one of the strongest assets any business can have.
Please contact us with questions during your business credit building process.
BY: Jon Marion, CNBC
A change is coming to private investing markets, and it could revolutionize how small businesses are financed: unaccredited investors can start buying stock in start-ups.
The JOBS Act took effect in 2012, helping pry open the initial public offering pipeline that was effectively welded shut in the wake of the global financial crisis, fostering millions of dollars of investments in burgeoning start-ups. The only ones left out of the equation were ordinary Americans. But based on President Barack Obama's speech, they probably didn't expect it.
"Because of this bill, start-ups and small business will now have access to a big, new pool of potential investors — namely, the American people," Obama said at the signing ceremony for the act. "For the first time, ordinary Americans will be able to go online and invest in entrepreneurs that they believe in."
For years, this portion of Obama's JOBS Act pledge went unfulfilled, as the Securities and Exchange Commission dragged its feet in the final stages of the regulatory process that would allow unaccredited investors to begin backing growing companies. As of Monday, it all changed.
Title III of the Jobs Act has gone into effect, and with it, unaccredited investors are now allowed to invest alongside accredited investors (people with a net worth of $1 million, or who meet other income designations) in equity of start-ups — not just their products.
In other words, ordinary Americans with a lower net worth are no longer excluded from the same investment opportunities as wealthier, accredited, investors. They're not relegated to being able only to back a Kickstarter project, to receive a product when it's complete.
And that means Americans can take the same crack at a hot start-up's prospects as if they were Marc Andreessen, the Silicon Valley investor who has backed start-ups like Facebook(FB) and Airbnb. Prior to the rules change, investors could crowdfund for products like the Oculus VR headset, which took in $2.44 million in 2012, but didn't issue a share to its consumer-investors.
Oculus, however, sold shares to Andreessen Horowitz, the investor's venture capital firm, which generated a reported eight-times cash return. There have already been crowdfunding successes for accredited investors like the ones that bet on Zenefits through online investment platform WeFunder, according to Nick Tommarello, who founded the website more than four years ago.
One Zenefits backer, who bought in for $5,000, turned a profit of more than $1 million on the health-care start-up's stock by selling shares before its $4.5 billion valuation was hurt in a regulatory scandal.
"Banks don't take risks and VCs only invest in hot start-ups," Tommarello said, adding, "but the expectation is probably that you're going to lose money."
New prospective investors shouldn't expect outsized returns like the one Zenefits' early investors pocketed. Even supporters of crowdfunding are quick to point out that the risk profile of start-up investing is completely different than the stock market, and that the growing business is subject to separate regulatory requirements from companies listed on exchanges.
" The level of information about an entity available to potential investors in crowdfunding ventures will be somewhat limited, and certainly less than a traditional investment vehicle would be required to disclose," said Mike Brodsky, a director in Deloitte Advisory's forensics and investigations group. "Investors considering purchasing securities through crowdfunding should not expect the same level of diligence."
The regulation change is a historic one, but don't expect your average start-up stock trading platform (and, there are plenty) to look like — for example — a ScottTrade account.
Start-up equity investing can still take plenty of forms, not just cash-for-stock, said Dara Albright, longtime proponent of crowdfunding. It may include debt deals, or a combination of stock and products — a hybrid of crowdfunding and actual investing.
"This is going to change everything," Albright said. "We're going to see more creative types of investing."
Unsecured Credit Lines
Unsecured revolving business credit lines are a smart way for you to grow and expand your business. Pay only on the credit you use making revolving credit lines a perfect financing source for your business.
Plus revolving business lines can be used, paid down, and then reused making them very practical for any business owner. This gives our clients tremendous peace of mind to know that additional money is available if needed.
The amount they approved for will vary based on your volume of business. You can secure a revolving credit lines/cards for over $150,000 with no financials needed to qualify, and credit lines up to $250,000 if you are showing business tax returns and financials.
Some revolving lines do require collateral to qualify. Collateral can include accounts receivables, inventory, machinery & equipment, and even real estate.
Other credit lines are available with limited to no financial documents needed to qualify.
Most business revolving credit lines require a personal guarantor to be approved. This means that if business owner fails to meet the terms of the agreement they will be personally liable.
Their personal credit will also be used to qualify for some revolving business credit lines. They can also qualify with a strong business credit profile and score.
Through the business funding suite our clients can easily establish excellent business credit scores in less than 60 days. They can then use their newly established business credit profile and score to qualify for unsecured credit lines without personal credit being as much of a factor.
Most banks have cut back dramatically on the funds they are offering to small business owners. As a result many owners have found it very difficult to obtain revolving business credit lines.
Through the business funding suite our clients have access to the best revolving business credit lines available today with the most lenient personal credit score and documentation requirements.
Our clients can easily and quickly get approved and receive their credit line in only a few weeks through their own funding suite.
If your business needs capital then you should begin the process of growing your business with available cash at (888)684-8750.
Types of Available Financing
There is a massive amount of financing currently available for small businesses. Business credit is one financing type that works perfect for many businesses.
The business can build its own credit score and profile and use that to qualify for business credit cards in the business name which require no personal credit check or personal guarantee to qualify.
There are also unsecured credit cards and lines that consumers with good credit can qualify. It’s common to see approvals range from $50,000-150,000 on these accounts, and they work for businesses with no financials, even startup businesses can qualify.
Over 80% of US businesses use Equipment financing to obtain equipment. Business owners can get financing, even leasing to help with the purchase of equipment, even heavy equipment. And business owners can also use equipment they already own as collateral and get cash back through an equipment sale-lease-back.
Vehicle wrap financing is a specialized niche type of financing that gets business owners funding to put a graphic wrap on their vehicle.
Commercial signage financing is another nice program that business owners can use to obtain signage for their business.Stocks and securities can be used as collateral for a business owner to obtain a line-of-credit up to 90% of the value of the stocks. Rates on these programs are the lowest of all type of business financing, even as low as 1.6%.
Business owners with a 401k can use that 401k as collateral and get financing for up to 200% of the 401k value. Plus, rates are typically less than 2% for 401k financing.
Merchant advances are another type of financing business owners can qualify for if they accept credit cards now. These are not loans, but actual cash advances against future credit card sales.
Revenue lending is a similar program that uses future cash flow as collateral for financing. Even business owners with bad personal credit can qualify, and get approved within 72 hours or less in most cases.
Business owners with account receivables can get financing within 24 hours at rates less than 2%, even with credit challenges. Account receivable financing is perfect for many industries including the medical and construction industries, and any other that has receivables with their customers.
Companies can also get purchase order financing to obtain letters-of-credit to fulfill purchase orders.Inventory financing can be obtained to purchase inventory, or borrower against inventory a business owner already has and get a working capital line-of-credit.
SBA offers two main programs that can really help business owners. Loans can be obtained up to 12 million dollars. SBA 7a loans are great for working capital, while 504 loans are perfect for real estate purchases.
There are many private investors, crowd sourcing groups, and angel investors who also have money to lend. If a business owner has a make sense project and needs funds, sometimes private money is the best way to go when lenders say no.
Business owners can also qualify for commercial real estate financing. Money can be obtained to purchase real estate, and cash-out refinances are also readily available.Business owners can even obtain auto vehicle leasing in their business name through many types of business leasing programs.
Real estate flippers can take advantage of a very special program known as a house reseller program. With this financing can be obtained for 100% of the purchase and rehab costs of properties.
There are a multitude of financing options a business owner has access to if they know what to look for. It’s also important to note that ALL of these programs, and many more, are available to clients through the Business Finance Suite.
If you need to know or need to obtain money for your business you have come to the right place. Just call our office or email me for more information.
Trevana Properties is a placement company working with a variety of hedge funds, REIT's, commercial banks, specialty boutique lenders, private investors and other funding sources not widely known to the general public.