By Meghan Ott, Venturize –
In celebration of our new partnership with America’s SBDC, Venturize co-hosted a Twitter chat during National Small Business Week to talk about the top tips and resources to help small businesses and aspiring entrepreneurs become loan ready.
We were happy to be joined by our friends at Intuit QuickBooks, the New Jersey Business Action Center, Small Business Majority, BIGG Success, and BizBuySell. There were also a number of SBDCs that participated, including the Arkansas Small Business and Technology Development Center, New York SBDC, University of Minnesota Center for Economic Development, and Temple University SBDC.
Below is a brief recap of the questions and a sample of the great tips and information shared during the chat:
Q1: What are the different options out there for small business owners looking for credit? What types of lenders and credit products are available to small business borrowers? (more…)
By Bob House, President, BizBuySell –
If you think obtaining funding is your biggest priority, think again.
When it comes to starting a new business venture, most entrepreneurs focus solely on how they can get funding. Yet they often do not have a clear understanding of the funding process. Nor have they considered some of the many challenges of business ownership and how that might affect the amount of money they actually need.
“At least 90 percent of aspiring entrepreneurs ask how they can get financing, grants, or something related to capital,” says Brad Bunt, director of North Central Texas SBDC.
We spoke to some of the leading experts at America’s SBDC, a nationwide network of Small Business Development Centers (SBDCs), to get their insights on the most common questions asked by entrepreneurs. According to these experts, while obtaining funding was the most common issue, there are many more important things entrepreneurs should be thinking about first.
Here’s what experts say entrepreneurs should consider when buying or starting a business: (more…)
By Linsey Knerl –
Almost every modern company runs on some form of credit these days. Even the most profitable businesses benefit from having a line of credit available for emergencies, well-planned purchases for perks, or improving their credit score. According to the Small Business Administration, 65 percent of small businesses rely on credit cards, but just 50 percent use business cards in the name of their company. This strategy can potentially harm a business owner’s personal credit, and it limits the opportunities to get business funding in the future.
If a business credit card is the wiser choice, why doesn’t everyone get one? For being a very astute business move, cards have their drawbacks. Here are some of the ways that business credit cards can do more harm than good and keep you from achieving the most important growth goals.
High Interest Rates
While all cards carry the risk of higher interest and APR terms, business cards are more often characterized by these more expensive fees. Rates range by credit-worthiness, amount of credit available, and bank, but expect to pay much more for the ability to borrow money than you would for a traditional business loan. If you expect to pay back the money in a timely manner – or, better yet, pay it all off every 30 days – this isn’t so much a concern. The average company carries a balance from statement to statement, however, and the interest rate is a major factor in what it costs for them to access funding. (more…)
By Connor Wilson –
You don’t need a new year to resolve to work on your credit. It’s a common goal, and as people look to buy a home or a new car or get out of debt, credit monitoring becomes a hot topic. If you’re a small business owner, you might be surprised to know that you don’t just have a personal credit score, you also have a business credit score to think about. In a Nav survey, 45% of responding small business owners did not realize they had a business credit score, 72% didn’t know where to find information on their business credit score, and 82% had no idea how to interpret their score. If you fall under any of those categories, it’s definitely time to learn more about your business credit score.
Running a business means time is at a premium, so why should you invest time in monitoring your business credit? Here are 4 benefits of keeping an eye on your business credit score.
1. More timely dispute incorrect information
Credit bureaus are far from perfect, and they make mistakes. This is true for personal credit, but almost more so for business credit. Having an incorrect tradeline on your credit report can wreak havoc if not taken care of promptly, and often they are left for months or even years, much to the surprise of the impacted individuals. (more…)
By Gerri Detweiler –
Many entrepreneurs find the process of building business credit frustrating. It’s not terribly difficult, but it does involve a few steps, the most important of which is to obtain accounts that report to commercial credit agencies. By paying those bills on time (or early) and keeping your debt in check, you can help build strong business credit. But because many small business bills aren’t reported to commercial credit reporting agencies, business owners may find themselves with little credit data on their reports.
But there’s a new simple solution that can help business owners build credit using accounts they already pay, and it’s fast and easy. Here’s how it works.
You set up an account with eCredable, a service designed to help small business owners build credit using bills they already pay. You can link specific types of bills (see below) to eCredable, which then reports that information to commercial credit reporting agencies. Those accounts, when reported and paid on time, can help build business credit. Currently eCredable works with Experian and Ansonia and expects to report to another major business credit reporting agency in the coming months. (more…)