Finance/Capital Access

While crowd-funding sites have opened the door for many entrepreneurs that otherwise couldn’t obtain outside financing, it’s still not the best option for everyone. This would apply to entrepreneurs with a highly confidential business model. However, you shouldn’t always consider the absolute worst case scenario when sharing your ideas with others. A crowd-funding site may provide you with instant market feedback that you may not gain from an individual investor or a consortium of angel investors. So, what are your other options?

Explore Angel Networks

Have you reached out to accredited investors in the angel community? Nowadays, there are many online angel communities such as AngelList and Gust that provide early stage companies with immediate access to accredited investors and vice versa. (more…)

By Nicole Russo, Marketing Director

Credit scores, including credit history, are one of the primary factors in obtaining the best SBA loan offers and terms. Every small business can benefit from tips to improve credit scores.

While a new business has no alternative but to rely on the personal credit score of the owner, it is good practice to build a business credit score as quickly as possible. Business credit is comprised of rent or mortgage payment history, tax payments, equipment financing, credit cards in the business name and any other related credit payments. Businesses need a tax EIN in order to build credit, and can also apply for a Dun & Bradstreet DUNS number.

A Commercial Credit Score (CCS) through Dun & Bradstreet is used by banks and lenders to determine the likelihood of a business paying its obligations on time. The score ranges from 101 to 670, with 670 being the highest score. (more…)

What do established companies looking to expand and start-ups in the earliest planning stages have in common? They want access to money and credit without having to provide a personal guarantee. This sentiment is consistently and strongly expressed by entrepreneurs I work with. It’s no secret that building and expanding a business credit profile has become a greater challenge over the last few years. Many established small companies’ cash flow sheets were hit hard during the recession and as a result, many lenders and suppliers have either added a personal guarantee policy or modified their current policy.

Most business owners know Experian, Equifax and TransUnion as the three major credit bureaus that provide information about their personal credit; however, they also may provide a credit profile about your company’s creditworthiness. Dun & Bradstreet (D&B) is the most well-known provider of business credit profiles among business owners because their business model serves them, whereas Experian, Equifax and TransUnion primarily exist for the benefit of creditors. (more…)

Many banks do not lend today without collateral, and entrepreneurs look for additional funding options to help launch their business.

In a  survey on alternative investment strategies, “Retirement Fund Programs in Franchising,”  FRANdata, shows a growing number of  businesses using rollover funding to start or recapitalize a business.  For almost 40% of respondents, the total required investment needed to fund the start-up of their business came from the use of such rollover retirement funds.

Additionally, they are able to finance their investment by using only a portion of their retirement assets, investing a weighted average of 52% of total Retirement assets. Which still allows them to keep their safety net of retirement funds.  The best part is, when rolling over  retirement funds to start a business, you do not incur penalties or tax and can start your business debt free. (more…)