Are You Getting Ready for
Your Small Business Financing?
BUSINESS FUNDING – LESS THAN 3% FIND IT … WHY?
A recent government study of U.S. small businesses showed that out of 15.7 million business loan applications, 97% were declined. Why? Because, every lender has underwriting approval guidelines that may include as many as 20 items and you have no idea what even 1 of them are.
The reasons businesses can’t find funding are:
- They don’t know where to look for the “right” funding source.
- They don’t know how to pre-qualify before they apply.
- They don’t know how to successfully present their request.
- They don’t know that “miss just one thing” and they will hear NO.
- They don’t know that “shot gunning” will kill their chances.
- They never take the time to build a good business credit rating.
- They don’t separate their personal credit from their business credit.
- They don’t follow a loan plan or guide for getting the loan they are seeking.
So how do you successfully fund your business? You must …
- Know every funding source’s exact criteria for providing funding before you apply.
- Know what your request needs to have in it and what it “doesn’t”.
- Build a good business credit rating with all three business credit agencies.
The Lenders will test you,
So you had better Test yourself first using this
Business Financing Borrowing Guide
1st Credit Worthiness:
- Will you repay the loan? This is based on your credit score. Above a 640 probably, below a 640 probably not. Pull all three credit reports so that you know for sure.
- Can you run the business successfully? Do you have five (5) years experience? Is the business two (2) years old? Have your resume and proof of time in business ready.
- Are you paying back the loan or is a tenant/customer? Have your account receivable ready.
- Is the loan tied to an asset or unsecured? Have your assets list ready.
- Is your business plan done? What a myth! Lenders do want to see that you can create a realistic plan, but they won’t approve you just because you have one. Get yours ready.
- Debt service? Do your financials indicate that you can handle the payment? Up-to-date personal and business financial statements are required.
- What have you risked? Have you used savings? Have you borrowed from friends and family? If you don’t believe and you haven’t risked, why would a lender?
- What collateral will secure the loan? Your home, your savings, your retirement? Have your complete itemized list ready.
2nd Get These Documents Ready:
- Up-to-date Balance sheet and income statements.
- Copy of all corporate records and filings.
- Copies of all insurance coverage. Health, car and business.
- List of all business customers by monthly percentage.
- Aging account receivable and account payable.
- The type, age and condition of all equipment.
- Copies of all mortgages, leases or long term contracts.
- Personal financial statements of all owners.
- Personal credit scores of all owners from all 3 credit agencies.
- Business credit report from Dun & Bradstreet and Experian.
- Personal and business tax returns for the previous 3 years.
- Personal and business bank statements for the last 12 months.
3rd Lender Types:
- Credit – mostly concerned with your credit history Personal FICO above a 640 or it’s NO! Business Paydex above a 75 or NO!
- Cash Flow – mostly consider your ability to repay. Two years in business with account prepared financials, filed tax returns, and a bank rating for positive proof.
- Coverage – Mostly want collateral worth more than the loan. Personal real estate to 100%, Commercial real estate to 80%, everything else maybe to 60%.
- Asset based – care only about the value of the asset such as account receivable, credit card receipts, warehouse receipts, liquidation value of inventory, equipment or real estate.
- Personal loans disguised as business loans. Could be business credit cards using your social security number, SBA loans based on your home equity, etc.
Traditional Banks and Your Collateral:
Unsecured business loans for businesses less than two (2) years old and for owners with FICO scores under 680 “DO NOT EXIST” with traditional lenders. Lenders require that you pledge of some or all of your assets.
Collateral is: Real estate, accounts receivable, inventory, savings, structured settlements, private notes, life insurance policies, stocks and bonds, purchase orders, floor planning, furniture, equipment, endorser, co-maker, guarantor, etc.
If a Traditional Lenders Will Not Give You a Loan,
Request a PBI Micro Loan that Provides Essential Capital
To Help You Grow and Thrive in Your Business
Micro Loans- An Alternative to Traditional Bank Loans:
Business is booming, and you have opportunities, but cash flow is an issue. It’s a common problem, but we have a solution for you… http://www.prosperitybreakthroughs4u.com/loan-application-solutions/
Introducing Micro Loans a short-term loan for businesses. Unlike banks we underwrite based on the health of your company and cash flow and NOT credit scores. We provide real, attainable, affordable financing for small business owners like you. We don’t make you jump through hoops and can fund your business in just a few business days upon application approval.
- Loans from $5,000 to $250,000
- Terms from 3 to 18 months
- Fixed interest and fixed payments
- Approval in 24-72 hours
- Cash in a few business days
- More than 200 industries qualify
Call 415-678-9965 for a free financing quote and approval. EASY Application Process requires a simple one page application, 4 months of bank statements, plus your profit and loss statement. No hassles and no long waits for a response. Repayment also helps build credit history. Click here for more information: http://www.prosperitybreakthroughs4u.com/loan-mastery/
We also offer a loan that repays its self program
Contact us for all the details.