An excellent article on SmartMoney.com's Small Business Site describes how the credit crunch is hitting entrepreneurs hard -- and right before the holiday season when many need to load up on inventory, hire additional staff, or find their business is in a lull until next year.
She also quotes Curtis Arnold, one of my trusted colleagues, and the provider of our best business credit card list.
The recommendations for dealing with this credit crunch are all good, but I would add that there are alternatives to factoring that don't require $1 million in receivables. We've recently been talking with an Inc. 500 company, for example, that can offer cash advances against your credit card receivables which does not affect your personal or business credit, because it is not a loan. This solution is popular with many businesses, including restaurants (which find financing difficult) and auto repair shops (as in the example in the story. We'll write more about this option soon, but in the meantime feel free to call us at 888-227-3158 if you'd like to learn more about business cash advances.
Tuesday, October 30, 2007
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5 comments:
I’m a credit analyst at an equipment finance company and I wrote an article last month about the [url=http://www.crestcapital.com/equipment_loan_media]Five Cs of Credit Evaluation[/url] that the majority of lenders use to evaluate potential loans. I would like to highlight that while banks look at small-to-medium size companies from a Fortune 500 perspective, equipment financing companies see applicants from a small business perspective, which highlights a sixth C: Common Sense.
I recommend considering equipment financing as a viable option to manage and improve cash flow - and the bonus is that the process (and chances for approval) is much easier.
Starting a business is hard, maintaining a business is hardest and building credit to take your business to the next level is the hardest. But you don’t need to be alone with any of those tasks and you don’t need to do the hard work for it. United Business Credit is known for helping businesses build credit and get to the highest levels of success because that is what they do. If you want to keep your personal and business credit separate, UBCredit can do that for you. Want to limit your personal liability and risk from any business reversals that may put you at personal bankruptcy? UBCredit can do that and a lot more, so why go anywhere else? UBCredit is not your only choice, but it is the only right choice.
I'll have to keep this post in mind. I want to run a business soon, which means I can use all the help and advice I can get. Lately I've been thinking about buying a business instead of starting one from scratch. Any suggestions? Advice. Thanks.
Jamie - There are a lot of different resources online. One's called BizTrader.com, which is an online global marketplace where you can buy or sell a business. It has advice and help, and you can also use it to find a lender, broker, etc.
I also suggest checking out some books on the subject, local classifieds, and even small business groups in your area. Groups like your local Chamber of Commerce can be very helpful.
Good luck!
I wanted to let you know that our company could be of help to your readers. We are a web design company that reports to Experian and if you have D&B Credit builder, you can use us as a trade reference. Our website is www.bitwavedesign.com. Your custom website will be completed and we charge $59 per month and we start out reporting $2500 account to Experian. The credit limit increases the longer we work with you.
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