3 Foolproof Steps to Get Your Free DUNS Number from Dun & Bradstreet
Get Your Free DUNS Number from Dun & Bradstreet – This is Amazing! What is a DUNS number? Your DUNS number is the key to unlocking business credit for your small business. You may be asking: do I need a Dun and Bradstreet number? You do!
No Dun and Bradstreet number, no business credit. It is truly that simple. But first, you need to get your free DUNS number.
But free DUNS numbers do not magically, mystically drop from the sky. You have to proactively go and get one.
The first method is actually just one step. You can get our Business Credit Builder Package from us Directly.
Get Your Free DUNS Number from Dun & Bradstreet HERE
Aside from our Business Credit Builder Package, there are a few other things you can so to get a free DUNS number.
Fortunately for you, there are three easy steps you can follow and voila, your small business will have a DUNS number.
Get Your Free DUNS Number from Dun & Bradstreet:
1. Get Registered on the Dun and Bradstreet WebsiteHow does Dun and Bradstreet get their information?
Here is how to get a DUNS number. Dun and Bradstreet requires that you register your company on their site before they will hand out a DUNS number.
Registration is free. Much like for so many website registrations we see on the internet these days, registration is fast.
Dun and Bradstreet does not ask for extraneous information it does not need.
Rather, it merely asks you for your full name, an email address, a password, and then to confirm that password.
Therefore, you can get a registered Dun and Bradstreet account on the Dun and Bradstreet website before you even create your small business! It is a good first step and you may as well do it early. Get into small business DnB ASAP.
Like with most online registrations, Dun and Bradstreet sends a confirmation email. And, by the way, you’re now on the Dun and Bradstreet mailing list. Which is kind of convenient. It goes both ways. Now, if you need to, you can send Dun Bradstreet complaints.
Get Your Free DUNS Number from Dun & Bradstreet:
2. Launch the D&B D-U-N-S Number ToolWhen you log in, you are immediately taken to your Dun and Bradstreet account dashboard. Your dashboard is divided into three parts:
Let’s look at the latter two sections first.
Risk ManagementCredit Reporter (which allows you to evaluate other businesses) has a listing under Risk Management.
Sales & MarketingAnd finally VERIFIED (this product provides a means for you to verify your small business and thereby build credibility) has a listing under Sales & Marketing.
My Business CreditCredit Signal (their business credit monitoring system) has a listing under My Business Credit.
Launch the D&B D-U-N-S Number ToolAlso under My Business Credit, but with a dark, contrasting font is the Launch the D&B D-U-N-S Number tool.
Click Launch and you are immediately taken to a business search page. If you find your business, select the appropriate record and click Submit.
The next screen is a verification screen so that Dun and Bradstreet can confirm that you who you say you are. It is also to confirm that you are also authorized to view the company data you want to look at.
Personal Identification InformationYou must fill out a section with personal information such as your full name and address, and a business information section which includes your business email and title with the company.
Once you have filled these two sections out, click Next.
On the next page, you must select the last four digits of your Social Security number from a list of four. Then click Next again.
Authentication Questionnaire on the next page, you must fill out an authentication questionnaire, which may be different for people, depending upon their specifics.
In our case, Aww had to choose my correct previous telephone number. Note: none of the phone numbers were correct for me but I had to choose one, anyway. I also had to choose a county I had once lived in. Also, I had to choose a professional license I hold.
Your authentication questions will undoubtedly be different.
Once you have answered the questions, click Next again.
If everything is correct, you will get a confirmation screen. If you want to review the company account, then click the Home button.
A Fer-Instance using the Dun and Bradstreet number lookup, I was able to locate my father’s small engineering consulting business. And this is even though he has not done any paid consulting work in a few years and I searched under the wrong city.
The DUNS number lookup worked just fine. Try the DUNS company lookup before you buy anything! Just in case, you should know how to find a Dun and Bradstreet number.
3. Add a CompanyIf you look up DUNS number and your search did not turn up your company then don’t worry. Instead, from the company search screen, click on Click Here to Get a D-U-N-S Number.
The next screen presents you with three choices. One method is to go the free Dun & Bradstreet route and just get a DUNS number and CreditSignal.
Click on Get Started. You’ll end up at a screen which wants your personal information and company information. Fill everything out and click Next.
And that’s it! You’ve successfully requested a DUNS Number and you’ll get it within 30 days.
Get Your Free DUNS Number from Dun & Bradstreet: Bonus: A Bit About D&B ReportsOf course the reason you need to get a DUN number is to get your free DUN Bradstreet reports! So here’s a brief look at them.
A Dun & Bradstreet Report (also known as a D&B Report) is a database-generated report. The business services giant produces such free Dun and Bradstreet reports in order to help its clients in making decisions regarding new credit applications.
The primary reason for a client making use of such a free Dun and Bradstreet report is to engage in credit risk monitoring of merchants, suppliers, and business partners.
This helps companies make informed business credit determinations and steer clear of bad debt.
Dun & Bradstreet takes several factors into account in producing such a report. These include a predictor of payment delinquency; how financially stressed a company is compared to comparable businesses; an assessment of supplier risk; credit limit recommendation; D&B rating; and PAYDEX score.
Get a Dun and Bradstreet report free and let’s look at all these factors in turn.
Delinquency PredictorDun & Bradstreet uses predictive models to ascertain how likely a company is to be overdue with its payments. Predictive scoring is a means of using historical data to try to predict future outcomes.
It involves identifying the risks inherent in a future decision. It does this by examining the relationship between historical information and the future event.
This represents an objective and statistically derived counterpart to subjective and intuitive analyses. Such scoring allows a business to rank and order accounts based upon the probability of an event occurring, such as delinquent payments. However, note that Predictive Scoring only exemplifies a statistical probability, and not a guarantee.
Financial Stress Percent Financial Stress Percentile compares the company in question to other businesses in the same region, industry, number of employees, or number of years in the business.
Financial Stress Score Norms indicate an average score and percentile for all organizations with similar demographic attributes. These Norms can be utilized in order to benchmark where this particular business stands in relation to the norm for its peer group.
Financial Stress ScoreDun & Bradstreet produces Financial Stress Scores to forecast the chance of business failure over the next twelve months.
D&B defines business failure in several ways. One is as a firm which gets legal relief from its creditors. Another is a company which discontinues its business operations without paying all of its creditors in full. Yet another is a company which voluntarily withdraws from its business operations thus leaving unpaid obligations
Another way is a business which enters into receivership or reorganization. Or it can be a company which makes some kind of arrangement for the benefit of its creditors. And all of this is based on the information found inside D&B’s commercial database.
The score ranges from 1,001 to 1,875. A score of 1,001 represents the highest probability while a figure of 1,875 exemplifies the lowest probability of business failure.
If your business has a lot of lawsuits and liens against it, those will negatively impact your financial stress score.
Financial Stress Risk ClassThis is a division of the scored universe into five distinct groups, ranging from 1 to 5. A 1 represents businesses which have the lowest probability of failure, while a 5 represents firms which have the highest probability of failure.
This Class makes it so a customer can quickly segment their new and existing accounts into various risk segments. This is to determine appropriate marketing or credit policies. For any businesses showed as being Discontinued at This Location; Higher Risk; or Open Bankruptcy, those records automatically get a 0 score.
Financial Stress Score PercentileA Financial Stress Score Percentile is shown as a 1-100 ranking where a 1 percentile has the highest probability of failure and a 100 percentile has the lowest probability of failure.
Supplier Evaluation Risk RatingThe Supplier Evaluation Risk Rating (also called a SER Rating) forecasts how probable it is that a company will get legal relief from its creditors or terminate its operations without paying creditors in full over next twelve months. The SER rating comes from D&B’s Financial Stress Score. The Financial Stress Score percentile serves as the basis for the SER Rating.
Once the Financial Stress Score percentile is determined for a company, a second set of rules are applied to figure the SER Rating. The SER Rating provides a probability of global supplier failure. Local nations’ failure ratings are indicated via a Class of 1 – 9. A 1 represents businesses with the lowest probability of supplier failure. A 9 represents companies with the highest probability of supplier failure.
Discover our aged shelf corporations, jam-packed with new ways to finance your business without emptying your wallet.
Credit Limit Recommendation
A D&B Credit Limit Recommendation includes two recommended dollar guidelines:
Each set of limits comes with an assessment of the risk category a business falls into, or D&B’s assessment of how likely they are to continue to pay their obligations within the agreed-upon terms and how likely they are to undergo financial stress in the next twelve months.
D&B RatingA D&B Rating is designed to help firms rapidly gauge a business’s size and composite credit appraisal. The rating is based upon information in a company’s interim or fiscal balance sheet, and also an overall evaluation of the firm’s creditworthiness. This, too, comes from a DUNS and Bradstreet number.
Rating Classifications5A to HH Rating Classifications show company size based on worth or equity as computed by Dun & Bradstreet. The figure matters because a firm’s size can be a reliable indicator of credit capacity. Dun & Bradstreet assigns such ratings to firms which have supplied a current financial statement.
Composite Credit AppraisalThis is a number, 1 through 4, and it comprises the second half of a firm’s rating under the DNB rating system. It reflects Dun & Bradstreet’s overall assessment of that company’s creditworthiness.
Dun & Bradstreet’s analysis of company payments, financial information, public records, business age and other important factors, when available, are analyzed in order to generate a Composite Credit Appraisal.
When a company does not supply current financial information, they cannot get a Composite Credit Appraisal rating of better than a 2. Furthermore, the 1R and 2R Rating categories indicate company size based on the total number of employees for the company.
These rating categories are assigned to company files which do not contain a current financial statement.
Employee Range (ER) Ratings apply to certain lines of business not lending themselves to classification under the D&B Rating system. These kinds of companies are assigned an Employee Range symbol based upon the number of employees and nothing more.
As a whole, when Dun & Bradstreet does not have all of the information they need, they will indicate as much in their reports. However, the absence of some pieces of information does not necessarily mean a certain firm is a poor credit risk.
Get Your Free DUNS Number from Dun & Bradstreet: TakeawaysYes, it’s easy. This vital step will get you that much closer to building fantastic business credit. now you know what is duns number. Get EIN CREDIT – this is how to start.
The current age of your company can affect the business you wish to conduct in most cases. The number of years a company has been in existence may affect the confidence of potential business associates such as buyers, creditors or suppliers have in a company.
In an effort to improve the chances of obtaining financing for your startup you may have heard that buying a shelf corp will open the credit floodgates for your new venture.
Sound too good to be true? Well, it is because there are many more factors that play into the creditworthiness of a company then simply its age. While the age of your business does contribute to the overall picture it should never be considered as 'the key to credit.' By sharing some insight with you on shelf corporations and what are the key business credit advantages will better prepare you in making a more educated decision if this is a strategy worth considering. Now, let’s first cover the basics.
What is a shelf corporation?
A Shelf Corporation, also known as an “Aged Corporation” (or “Aged Company” when referring to an LLC, for example) is a corporation that is already formed, but not in use, and ready for “purchase” by a new owner. There are many reasons that people purchase shelf corporations, and there are certain things to look out for when considering one of these “ready-made” corporations. Now one of the questions I’m sure you’re thinking is “Why should I purchase a shelf corporation?” Shelf corporations allow you to engage into business, credit, or real estate agreements as an established company without having to go through the long waiting period of establishing a brand new corporation. Most potential creditors or business resources are less likely to extend credit or lend to new or up-start corporations. By approaching them as an established corporation or company, the more likely your business has the opportunity to have access to credit lines, banking relationships, leases, and so on. For example, during the initial stages of building business credit there are some vendors that will only extend credit to companies that are at least two years in business. In some cases they also require a personal guarantee if the business is less than a year old.
What can shelf corporations do for your business?
By purchasing a shelf corporation that’s three or even ten years old can drastically increase the number of credit opportunities available to you. Now don’t worry if your existing corporation is less than two years old because you’ll still be able to get business credit, but the amount of banks that you can apply at will be limited.
If you’re planning on starting a corporation or setting up another corporation then this may be an option to entertain.
Shelf corporations can also offer a large increase in borrowing power as well as enhanced credibility for your business when talking to customers and lenders. Remember the age of the owners does not necessarily correspond with the age of the company. When the H.J. Heinz Company advertises that it was established in 1869, it doesn’t mean that all of the shareholders are well over 100 years old. It simply means that the company was filed in that year.
You can take advantage of similar credibility benefits when advertising to customers. The age of your company can give greater credibility to customers and lenders than a business that was recently established. So, purchasing companies with established credit and existing credit lines can give the business a big financial boost.
Here are the Top 5 Advantages of Buying a Shelf Corporation:
1. Saving time and expense of forming a brand new corporation
2. Instant access to contract and government contract bidding. Most states require that your company be in business for a specified minimum length of time.
3. Instant credibility and an appearance of corporate history.
4. More attractive to potential investors and investment capital.
5. Faster and easier access to banking relationships and business lines of credit.
As far as purchasing a shelf corporation for the purpose of obtaining a bank loan or line of credit, given the current economic conditions, banks are requiring seeing much more than simply the age of your company. There are bank ratings, credit history, NSF history, and other factors to consider especially if you request more than a $50k line of credit. So if your interest is in applying for bank financing keep in mind shelf corporations have no business history, tax returns, financials and existing revenue.
Another word of caution that you need to consider is there are many companies that sell shelf corporations that have done business in the past, DO NOT buy these! If a shelf corporation has done business in the past and you purchase it you also assume all past liabilities of that company. So if the company has had any lawsuits brought against the corporation from the past you are now liable because you now own the corporation.
It’s critically important that the shelf corporation you are considering not have any inherent or lingering liabilities. For the most part, this can be assured by looking into the history of the corporation and ensuring that the extent of its business activities was limited or nonexistent except for the application of an Employer Identification Number and maybe the formation of a bank account.
How Shelf Corporations Improve Business Credit Funding
There has been a growing interest in shelf corporations from many of the investors, small business owners and entrepreneurs that We have the opportunity to speak with on a daily basis who are looking for ways to speed up the business credit building process.
We felt that by sharing some insight with you on shelf corporations and what are the key business credit building advantages will better prepare you in making a more educated decision if this is an option you’re thinking about.
Now, let’s first cover the basics.
What is a shelf corporation?
A “Shelf Corporation, also known as an “Aged Corporation” (or “Aged Company” when referring to an LLC, for example) is a corporation that is already formed, but not in use, and ready for “purchase” by a new owner.
There are many reasons that people purchase shelf corporations, and there are certain things to look out for when considering one of these “ready-made” corporations which I will cover shortly.
Now one of the questions I’m sure you’re thinking is “Why should I purchase a Shelf Corporation?”
Shelf corporations allow you to engage into business, credit, or real estate agreements as an established company without having to go through the long waiting period of establishing a brand new corporation.
Most potential creditors or business resources are less likely to extend credit or lend to new or up-start corporations. By approaching them as an established corporation or company, the more likely your business has the chances of more access to credit lines, banking relationships, leases, and so on.
For example, during the initial stages of building business credit there are some vendors that will only extend credit to companies that are at least 2 years in business. In some cases they also require a personal guarantee if the business is less than a year old.
By purchasing a shelf corporation that’s six or 25 years old can drastically increase the number of credit opportunities available to you.
Now don’t worry if your existing corporation is less than 6 years old because you’ll still be able to obtain business credit, but the amount of banks that you can apply at will be limited. If you’re planning on starting a corporation or setting up another corporation then this may be an option to entertain.
Shelf corporations can also offer a large increase in borrowing power as well as enhanced credibility for your business when talking to customers and lenders.
Remember the age of the owners does not necessarily correspond with the age of the company.
When the H.J. Heinz Company advertises that it was established in 1869, it doesn’t mean that all of the shareholders are well over 100 years old. It simply means that the company was filed in that year. You can take advantage of similar credibility benefits when advertising to customers.
The age of your company can give greater credibility to customers and lenders than a business that was recently established. So, purchasing companies with established credit and existing credit lines can give the business a big financial boost.
Here are the Top 5 Advantages of a Shelf Corporation
1. Saving time and expense of forming a brand new corporation
2. Instant access to contract and government contract bidding. Most states require that your company be in business for a specified minimum length of time.
3. Instant credibility and an appearance of corporate history.
4. More attractive to potential investors and investment capital.
5. Faster and easier access to banking relationships and lines of credit.
If you currently have a shelf corporation then you can use it to obtain credit card funding. As far as purchasing a shelf corporation, given the current credit crunch, banks want to see more than even being a 2 year old corporation. So if your only interest is in applying for bank financing keep in mind Shelf Corporations have no business history, tax returns, financials and existing revenue.
There are many companies that sell shelf corporations that have done business in the past, DO NOT buy these! If a shelf corporation has done business in the past and you purchase it you also assume all past liabilities of that company. So if the company has had any lawsuits brought against the corporation from the past you are now liable because you now own the corporation.
It’s critically important that the shelf corporation you are considering not have any inherent or lingering liabilities. For the most part, this can be assured by looking into the history of the corporation and ensuring that the extent of its business activities were limited or non existent except for the application of an Employer Identification Number and maybe the formation of a bank account.
Shelf corporations can be a great option if the proper due diligence is taken and there are many aged shelf Nevada corporations, Delaware corporations, Wyoming corporations, offshore corporations and Canadian Corporations that are available but be sure you do your homework.
Are you considering a shelf corporation?
P.S If you are interested in a INC/LLC Shelf corporation that’s 6 - 25 years old let us know and we would be happy to help you. Contact us at 1-800-998-3452 Or Visit www.Credittude.com
Americans normally associate credit repair with people who have bad credit in most cases. Closer to the truth, however, is that nearly everyone needs to engage in credit repair at some time in their lives, and occasionally more than once if theiy really care about their credit.
Of course, it’s usually most necessary for those with low credit scores. But even if you have an average or good score, you may want to increase it even more, either to improve your chances of being approved for certain loan, or getting lower costs and better terms.
There may be some element of vanity in wanting to have the best credit scores possible.
But in financial terms, your credit score really does impact your bottom line. For example, a credit score of 700 might get you the lowest rate on a home mortgage, while a score of 550 may result in a decline.
No matter what your current credit situation is, sometimes you need to do more than just make your payments on time. You may need to work on getting some negative information removed, or restoring your debts to get your credit scores higher.
Each represents a form of credit repair, and that’s exactly what we’re going to discuss in this article.
What Is Credit Repair?
Credit repair starts out with two basic objectives:
Eliminating Your Negative Credit Tradelines
The process starts with getting a copy of your most recent credit report and examining each line item. If any are showing negative information, those are the ones you want to zero in on.
In looking at the negatives, the first goal is to scan for any that may be in error. These can include collections that are not yours, accounts with negative payment histories that belong to someone else, or open balances you’ve long since paid.
By getting this information corrected, or removed from your report, your credit score will get an instant boost.
One of the biggest potential negatives that’s vague to most consumers, is excessive credit utilization. This is determined by what’s known as your Credit utilization ratio. That’s the amount you owe on your credit lines, divided by your total credit limits.
For example, let’s say you have five credit cards with a combined credit limit of $20,000. If you owe a total of $15,000 across the five cards your credit utilization ratio is 75% ($15,000 divided by $20,000).
A credit utilization ratio of 75% is considered excessive, and will weigh down your credit score. Credit utilization is the second biggest credit score determining factor, behind only payment history. It accounts for 30% of your score, so keeping this number at a reasonable level is mission-critical.
A credit utilization ratio of 80% or more is considered indicative of potential default, since you’re approaching maxing-out your credit cards. The lower the rate is, the better. But a ratio below 30% is considered ideal. If you have a good credit score, and you’re looking to improve it, getting the ratio below 30% may be the most important strategy.
Increasing Your Positive Tradelines
Increasing your positive credit tradelines can be equally important. Often times, a credit score is weighed down by a lack of good credit. It can even be held down by an absence of sufficient credit.
If you already have good credit, you’ll naturally want to continue making your payments on time.
But one of the best ways to increase your score is by paying off a loan or a credit card We’ve already discussed the importance of credit utilization, and that certainly needs to be considered if you want to improve your score.
But paying off a credit card completely, Open up a small credit account at a local jewelry store or an installment loan, is a way to boost your score a few points immediately.
The credit bureaus like paid loans, because they confirm successfully completed credit obligations. The more of them you have, the better. This isn’t to say that you need to pay off all your loans. But your credit report should reflect a healthy mix of both open and paid loans.
If you have poor credit, you certainly need to work on removing as many negative items as possible. But it’s equally important to add good credit to the mix.
You can do that by taking small loans, making the payments on time, and paying them off early in most cases.
What To Do if You Can’t Get Approved for New Credit?
If you’re unable to get approved for traditional loans or credit cards, look into secured credit cards or credit builder loans.
Secured credit cards usually require that you put up an amount of money equal to the credit line as collateral.
Because the line is completely secured, the bank is highly likely to approve the credit line. But we honestly do not recommend those because it automatically flags you in the red zone when creditors look at your credit.
Credit builder loans can accomplish the same goal, except you can open one without any money at all. Many banks and credit unions offer credit builder loans.
You apply for a loan, and when the bank approves it, the funds are immediately deposited into a savings account to act as collateral for the loan.
Your monthly payments on the loan are paid out of the savings account. Since it happens by automatic draft, the payments are guaranteed to be on time.
It will happen completely out of sight for you, and will likely cost you less than $100 for the interest on the loan. Meanwhile, the bank will report your perfect payment history to the credit bureaus, as well as the paid loan status when the term ends.
Either method will enable you to add good credit that can work wonders to increase your credit scores.
Take the next step and contact us today for your free credit analysis at 1-800-998-3452
Most entrepreneurs think that because they have bad credit or no collateral that there is no chance of them getting a loan. But in reality, there are actually many different financing options that business owners have in which they can qualify, even with severe credit challenges, or even if they don’t have collateral.
As you already know, banks REQUIRE good credit AND collateral to get approved for business financing. But still, most people only go to their bank when they need money, because it’s the only place they know to go to. But the most common business bank loan, SBA loans, only account for 1.1% of all business loans (Department of Revenue 2013). The reality is that the big banks are NOT the suppliers of most business loans. And even though they require good credit and collateral to qualify, many sources don’t.
The big banks are very conservative, as most know. Due to this they commonly won’t lend to businesses in which the business owner has challenged credit or businesses that don’t have collateral. But businesses can succeed even if the owner doesn’t have perfect credit or doesn’t have assets that can be pledged as collateral. And many business loans make really good sense and have risk low enough based on other factors, even if the owner doesn’t have good credit and lacks collateral. So what types of funding can and can’t you get with credit issues or if you lack collateral?
Before you know where to go to get money if you have credit problems, you first should know where NOT to go. These sources might be appealing based on their offers and promotions, but they will not typically lend money to you if you have challenged personal credit. SBA loans, conventional bank financing, private investor money and unsecured financing, all have stringent credit requirements.
Where NOT to Get Financing with Bad Credit or No Collateral…
SBA and other bank conventional loans are tough to qualify for because the lender and SBA will evaluate ALL aspects of the business and the business owner for approval. To get approved all aspects of the business and business owner’s personal finances must be near PERFECT. There is no question that SBA loans are tough to qualify for. This is why according to the Small Business Lending Index, over 89% of business applications are denied by the big banks.
Many people think that when they have bad credit or lack collateral, a private investor is the best answer. But in reality investors typically want average or better credit of 650 scores or higher in most cases, and they almost always want you to pledge some type of collateral. They will also want solid financials for at least two years. This means they’ll want to see tax returns showing large net profits that are increasing over time. Think of private money as being for SBA and conventional bank loans that just miss the mark.
“Unsecured” means no collateral is required for approval. No collateral GREATLY increases a lender’s risk. No collateral requirements usually means it’s the quality of credit that determines qualification. Any type of financing that has no collateral requirements AND no cash flow requirements, WILL require good credit to qualify.
Where TO Go to Get Financing with Challenged Credit or No Collateral…
Revenue based financing, asset based financing equity financing crowdfunding, business credit, and unsecured financing using a credit partner/personal guarantor, are all great funding options for any entrepreneur with personal credit issues or those who lack collateral.
The truth is, there is a LOT of capital out there that business owners can obtain, even with personal credit issues or no collateral. And most of it isn’t available through big banks. And the great news is that you can qualify for this massive amount of available financing based on your business strengths, as long as your business has even one strength. The big banks require your ENTIRE business and you to be near perfect to get money. But as you’re about to discover, there are a lot of other sources who will lend you money, even lots of money, based just on one strength. So as long as you have a strength to offset your weakness of having bad credit or lacking collateral, you can be approved. This is often called compensating factors.
Cash-flow Based Financing
Many businesses have already proven “concept” and have consistently increasing sales. Their strength is that they have shown stability and that they can effectively run a growing business. The risk to the lender is less as they are established businesses that are growing. How are your sales? Sales are the difference between an untested concept or idea, and a real operating business. Will your idea be well received? Do YOU know how to operate a business? Sales answer these questions.
If you have consistent sales, the next question is does the business have existing cash flow proven by bank statements? There are lending options available that only require a quick bank statement review for approval. They won’t even need to look at your tax returns, so even if your business shows a loss you’ll still be okay. The next question is does the business have over $60,000 annually received in credit card sales? Does the business have over $120,000 annually going through their bank account? If the answer is yes then revenue financing or merchant advances might be the perfect funding product.
For this type of “cash flow” based financing you must be in business six months. No startup businesses can qualify. You should have at least 10 monthly deposits or more going through your bank account, not just a few larger deposits. Most advertising you see for “bad credit business financing” are these products. These are short term “advances” of 6-18 months. Mostly short term at first, such as 3-6 month terms. Then when half is paid down lender will lend more money at a longer term, such as 12-18 months. Loan amounts typically go up to $500,000. Your actual loan amount is based on your revenue, usually you can get lent 8-12% of annual revenue, based on your verifiable revenue per your bank statements. For example, a company that has $300,000 in sales might get a $30,000 advance initially.
With revenue and merchant financing 500 credit scores accepted and are COMMON with this type of lending. Bad credit is okay as long as you aren’t actively in trouble such as in a bankruptcy or have serious recent and unresolved tax liens or judgments.
For this type of cash flow based financing rates of 10-45% are common depending on risk. Risk factors include: Industry, Time in business, Bank statement details – number of deposits, average daily balance, NSF charges, amount of deposits monthly, and credit quality. Usually rates are higher on first advance until you “prove” yourself to the lender. No tax returns are required, no other income docs are required, and no collateral is required.
And, you won’t need to pledge any collateral to get approved. Although you will typically be required to supply a personal guarantee, which is required for almost all business financing that isn’t accompanied by collateral.
Asset Based Financing
Asset based financing, also called collateral based lending, lends you money based on the strength of your collateral. Since your collateral offsets the lender’s risk, you can be approved with bad credit and still get REALLY good terms.Common BUSINESS collateral might include account receivables, inventory, and equipment.
With account receivable financing you can secure up to 80% of receivables within 24 hours of approval. You must be in business for at least one year and receivables must be from another business. Rates are commonly 1.25-5%.
You can also use your inventory as collateral for financing and secure inventory financing. The minimum inventory loan amount is $150,000 and the general loan to value (cost) is 50%; thus, inventory value would have to be $300,000 to qualify. Rates are normally 2% monthly on the outstanding loan balance. Example is a factory or retail store.
With equipment financing lenders will undervalue equipment by possibly up to 50% and work with major equipment only. Lender won’t combine a bunch of small equipment, and first and last month’s payments are required to close. Loan amounts are available typically up to $2 million dollars.
Common PERSONAL collateral that can qualify for collateral based lending might include a 401k and stocks. 401k or IRAs can be used to obtain up to 100% financing and rates are usually less than 3%. A retirement plan is created allowing for investment into the corporation. Funds are rolled over into the new plan. The new plan purchases stock in corporation and holds it. The corporation is debt free and cash rich.
With securities based lines of credit you can obtain an advance for up to 70-90% of the value of your stocks and bonds. These work much the same as 401k financing with similar terms and qualifications
Equity Financing and Crowdfunding
With equity financing you exchange a percentage of ownership in your business for financing, much like on the TV show Shark Tank. Personal credit is NOT an issue nor will you need to provide collateral, but equity investors are looking for a tested and proven concept and sales really help approval. You might find some investors to invest in a concept only, or invention. But most will want to see that you have an operating business that’s earning money and making profits.
And expect that they’re going to want a large piece of the equity. For it to be worth their time to invest, they might want 10-60% ownership of your business. That means they’ll be taking a large part of your future earnings, something you want to consider before recruiting an investor.
There are lots of websites in which you can obtain crowdfunding for your business. This type of funding gathers money from a “crowd”, or a lot of people instead of one big investor. If the crowd likes your idea, they may donate money to your project. Much of crowdfunding doesn’t need to be paid back and many investors are people you know. But if you really look into crowdfunding, you’ll find there are all types available.
Some types of crowdfunding sources do want a certain percentage of return; some want a percent of equity ownership. And there are different sources and platforms for different needs, and even unique niches or industries. So make sure you find the right crowdfunding platform for you before you post a project.
Business Credit and Unsecured Credit
Business credit is a great way to get money as approvals are not based on personal credit and no collateral is required for approval. Business credit reports usually get started with a few vendor accounts who will initially offer credit. Initial accounts create tradelines and a credit profile and score are established. The company’s new profile and score are used to get credit. Newly obtained credit is based on the company’s credit per the EIN, not the owner’s credit based on the SSN. Personal credit doesn’t matter as the credit linked to the EIN is used for approval.
When you use vendors to build your initial credit, you can then leave your SSN off of the application and can apply for business credit based solely on your EIN at most retail stores. Plus, you can get cash credit also, like high-limit cards with MasterCard and Visa. But building business credit all starts with vendor accounts. Without them, you won’t be able to start your credit profile initially, and that profile being established is the key to getting cash and store credit cards for your business.
Once you find the vendors you want to apply for, apply, and use your credit, it takes about 1-3 months for those accounts to report to the business bureaus. Once those accounts are reported a business credit profile and score are then established, and that can be used for you to get store credit cards next. Once you have about 10 payment experiences reporting, you can then start to get cash credit like Visa and MasterCard accounts. A payment experience is the reporting of an account to one business bureau. So if an account reports to two bureaus, it would actually count as two payment experiences.
Right now you can qualify for business credit without a personal credit check & without supplying a personal guarantee!
Minimum $250,000.00 in Corporate Credit Guaranteed!
To get started, contact us today. Limited availability on coaching.
BUSINESS CREDIT BENEFITS
Get Approved for HIGH-Limit Revolving Credit Cards in Your Business Name with No Personal Credit Check and No Personal Guarantee.
Get Your Business Credit Profile Quickly Setup and Activated with D&B, Experian, and Equifax Commercial Saving You Time and Money.
Access the Largest Supply of corporate Business Credit Sources to Get Vendor, Store, Fleet, and Cash Credit Linked to Your EIN and Not Your SSN.
Corporate Compliance Review to Ensure That Your Business Exceeds Credit Issuer and Lender Credibility Standards to Get Automated Approvals
Get Concierge Coaching and Servicing with Your Own Business Credit Advisors Who Help You Easily Navigate the Corporate Credit Building Process.
Monitor Your Business Credit with D&B and Experian Commercial in Real Time through the Credit Monitoring Integration Powered by Nav
Enjoy Our Business Credit Builder Program Risk Free with Affordable Payments and Our Iron-Clad, No Questions Asked, 120 Day Money Back Guarantee.
Repair Your Damaged Business Credit!
Fixing damaged business credit should be a top priority for you, the business owner.
Many business owners think they have items reporting on their business credit reports that really aren’t reporting at all. But over 90% of trade vendors don’t report to the business credit reporting agencies. So chances are good that the negative information you think is on your report might not even be there. But you should still know how to repair your damaged business credit.
Obtain Business Credit Reports & Know what’s on your business credit you should obtain business credit reports from the main business credit reporting agencies.
Business Credit reports are offered by:
You will 1st want to get a copy of your business credit reports to see what is being reported. So saving damaged business credit starts here!
The Fair Credit Reporting Act: Does it Have Anything to do with Damaged Business Credit?You might have already heard of the FCRA. The Fair Credit Reporting Act outlines consumer’s rights to dispute inaccurate information on their credit reports. But it’s essential to know that this law does NOT apply to business credit repair.
There are currently no laws which outline business owner’s rights regarding credit disputing. The FCRA also requires credit issuers to notify you of what bureaus they pulled your credit data from to determine your denial for financing.
In the business credit world this is not the case, you rarely ever know the source pulled your business credit or which reporting agencies they pulled it with.
Adding Credittude Credit Repairs’s Seasoned Tradelines to your credit profile increases your Scores up to 200 points and improves the quality of your Credit History permanently.
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