Understanding Business Lines of Credit Business lines of credit have become very popular over the last few years. Previously lines of credit were lending options from the big banks and SBA. But now alternative lenders have entered the market and with their entry, they have loosened qualification standards. They have eased up on credit and financial qualifications. Let’s start by discussing what a business(commercial) line of credit is and how it is used. A Business line of credit is a financing solution that allows the business owner to keep available funds at their fingertips. They can request any available amount and get the funds they need when they need it. As you pay back the borrowed funds the money becomes available again for reuse. And this procedure will continue for the agreed term of the credit line. Many say that it operates like a conventional credit card, which is partly true but there are some variants that you will be able to resolve through this article.The one biggest difference from the comparison to a credit card is that many lenders and banks will put a term limit on the line where they want the advances to cease and the line paid ...
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From SBA - 10 Stats That Explain Why Business Credit is Important for Small Business Note: I am providing a reprint of an SBA article to enforce my position that every business must build and maintain there business credit. They must also keep there personal credit separate from their personal credit.  Business should be considered its own credit worthy entity, but this takes a little more work than just a few business credit cards.  You must round out your business with proper financials, bank account maintenance, and other business strategies that build the business viability and credibility.  Business credit will provide the perks and ease to finance that the big companies enjoy.This reprint will show in both the finance and small business blog because of the importance._________________________________________Statistics have many applications in business and play an important role in making decisions, discovering new trends and making predictions. If you’re a small business owner you’re among the 28.8 million small business owners in the U.S., as stated by the Small Business Administration.While there is a great deal of statistics available that cover a wide range of areas, in this article we’ve collected 10 statistics that explain why business credit is important for small business owners ...
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Five Cs of Credit Note- For this article I am doing a re-print of an article written on Investopedia.  There is so much that goes into the reviewing of credit to provide financing that I will follow up with another article that dives deeper into the underwriting of credit.  The lending industry learned during the economic meltdown of 2008 that it is not just a FICO score that determines the eligibility of a borrower.If you are an entrepreneur that is looking to get started into the lucrative business of commercial and business finance, you can go to ebizmore.com and register to join. Once approved you will gain access to the full suite of training in all facets of the industry, and along with your training partner you will be set up for success. Enjoy the article, and keep your eyes open for the follow up addition to this article.What Are the Five Cs of Credit?The five Cs of credit is a system used by lenders to gauge the creditworthiness of potential borrowers. The system weighs five characteristics of the borrower and conditions of the loan, attempting to estimate the chance of default and, consequently, the risk of a financial loss for the lender. The five ...
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Financing Your Entrepreneurial Dreams I am going to be real here, it is easier for you to have your dream, develop your business plan, find the right location than it is to fund that dream. Unless of course, you have access to the cash already.  There are a few routes to obtaining the financing you need, but you must have good credit and show financial fitness. If you have bad credit, the first thing you should do is work on getting your credit fixed and work on your financial fitness. What do I mean by financial fitness? Your net worth! Do you own your own house, your cars, and any other assets that would be added to your net worth. I know, now your hopes are gone! They don’t have to be!  If this is a dream that you truly believe in, you must work hard to make that dream come true.  The best time to start is NOW!  Otherwise delaying the process turns from weeks to months to years and you will find yourself 5 years from now in the same situation that you are in today.The length of the preparation process depends on the starting condition and the amount of ...
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