The Evolution of True Business Credit
Over 95% of all small business loan applications are denied by banks!
A depressing statistic if you’re a business person looking for funding. And while there seems to be no shortage of advice for new entrepreneurs – articles like “Top Ten Strategies for Financing your Start-up,” “How the SBA can help your Small Business,” and “Enhanced Personal Credit is the key to Small Business Success” are common place – the unfortunate truth is that most authors of such articles have never created a successful new business. This conclusion is inescapable given the extensive misstatements and counterproductive advice frequently disseminated in the popular financial press.
You need help from someone who has been successful in helping real businesses get real business loans. Going to the SBA, using retirement funds, tapping out personal credit cards or seeking venture capital in exchange for a lion’s share of equity are common themes of so called “business magazines.” The unfortunate theme of all such approaches is that they are based, virtually in toto, upon your personal credit. They are not grounded upon a foundation of separate business credit that is distinct and apart from your personal credit. This key of “separateness” is the crux of true business credit.
The cornerstones to your business credit foundation are two core processes:
1. Creation of the correct business structure, and
2. Systematic processes to insure that your business is fully compliant with all of the evaluative criteria used by a) lenders and b) corporate credit rating agencies.
In addition to these mechanistic features, you need to create an emotional appeal for your business – a Business Plan that will cause a lender to believe that you, notwithstanding the odds, will actually 토토 사이트 succeed and prosper. We have extensive experience helping a wide variety of business prepare this quality and type of plan.
An often overlooked fact is the importance of an effective website in the credit assessment process; one of the first things a lender does is to look you up online. If your website looks like an incomplete or unprofessional effort, it will hurt you. Conversely, if your site Pops! – you’ve taken an important step to creating an indispensable impression – the impression that you’re for real, you have gravitas, and the bank would do well to attract and keep a client like you!
Once you have an appropriate corporate structure, proper credit acceleration processes in place, and a comprehensive plan, you need to undertake the actual work of building the separate business credit. In sum, paying bills on time and, when appropriate, pushing the envelop to expand your businesses credit. It is critical that you follow an appropriate ascending scale when expanding credit. Seek too little, and you’re not