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Small Business Reports
business journal for business
owners
April 21,
2020 US Senate
Committee on Small Business and Entrepreneurship
Letter
from the Editors:
A floodlight of national concern illuminates a sudden interest
in small businesses and reveals
Small businesses need short term loans through online lenders
that have developed reliable accurate finance tech to quickly
qualify and quantify risk and to speed up application
underwriting for fast funding.
Small
Business Reports envisions a super highway for small
business loans operating
with private money flowing unrestricted through a newly upgraded
digital finance infrastructure originally built and expanded by
online lenders since 2008 for funding short term business
advances and loans.
Money pouring out of stocks is flowing to small business loans
for high yield. Small businesses will power the economic
recovery if they have access to capital from private investors.
And online lenders need access to private money in a secondary
market.
We believe you see this picture, too—along with millions of
small business owners who are paying attention, who vote, and
who can make America hum with new growth.
Sincerely, THE
EDITORS Small
Business Reports |
How to Help Small Businesses Survive
Columbia Law School, Law & Economics Research April 10, 2020
Small businesses are among the hardest hit by the COVID-19 crisis. Many are shuttered, and far more face cash flow constraints, raising questions about just how many will survive this recession. The government has responded with a critical forgivable loan program, but for many of these businesses, this program alone will not provide the cash they need to retain workers, pay rent, and help their business come back to life when Americans are no longer sheltering in place.
This essay calls on regulators to find new and creative ways to work with existing intermediaries, including banks and online lenders, who have the infrastructure and tools needed to help small businesses get the additional loans they need to survive and thrive. Leveraging existing institutions could enhance the speed, scale, and scope of the government’s response, all critical virtues in the efforts to support small business.
click here for complete report
PAYCHECK
PROTECTION PROGRAM (PPP) INFORMATION SHEET
PAYCHECK PROTECTION PROGRAM (PPP) INFORMATION SHEET
click here
click here
SBA (7A) Business Loan Rates Drop
4.75%
for $30,000 to $5 Million
The Federal Reserve
lowered the benchmark interest rate again.
It is a great time for businesses to apply for
low-cost funding for operations, expansion, or refinance.
SBA loan
rates dropped to 4.75% for $30,000 to
$5 million (Prime plus 1.5% to 2.75%).
The new finance sources pre-qualify you with a lender in less than 5 minutes without
impacting your credit score. You can get funds as fast as 7 days after
your application is completed and approved.
A soft credit pull for pre-qualification will not affect your credit
score. To process your loan application for funding, lenders will
request a full credit report from one or more consumer reporting
agencies, which is considered a hard credit pull, and it happens after
your application is in the funding process and matched with a lender who
is likely to fund your loan.
It is an opportune time for businesses to apply
for a SBA or Bank Term loan or Short-term Working Capital. Low-cost funds can be used for
operations, expansion, refinance, equipment, inventory, commercial real estate,
and more.
Special Report
New Finance Sources Shift Away from
Resellers
Are you with a reseller?
This year—2020—the new sources in all three areas of business finance shifted away from resellers to direct relationships with businesses and merchants, eliminating the need for resellers after decades of using them exclusively for small businesses.
click here for complete update
Why you should be
wary of "online lending" websites
Small Business Credit Survey (SBCS) Federal Reserve Board December 2019
Uncertain Terms: What Small Business Borrowers Find When Browsing Online Lender Websites
Special: Report Review - Innovation
Readiness
45% of business owners say innovation is critical to staying
competitive.
More businesses are
recognizing that they must embrace innovation
in order to retain and
attract customers
would make running their business easier and more efficient.
Business Funding
Federal
Reserve Small Business Credit Survey 2019
a wide variety of information on small business financing in
the U.S.
Smart Point-of-Sale
with Customer Payments
Accelerating Automotive into the Digital Future
vehicles. Manufacturers and suppliers will have to implement
innovative software-based solutions to stay relevant and to keep up with
consumers’ expectations.
click here
Customer Financing
U.S. consumers' access to credit worse
than previously thought: Fed study
As many as 60 million Americans tend to have a
hard time qualifying for credit cards,
according to a report
released by the New York Federal Reserve.
click
here
Feature Article
Are all
three areas of your business finance tuned
and aligned as one
high performance machine?
Business Loans
Customer Payments
Customer Financing
How many reps does it take for all your
business finance?
How well do they know your business?
Do they work together toward your objectives?
The new finance sources today have the best
finance tech
for superior security, service and point-of-sale business
tools.
New leaders eliminate resellers after several
multi-billion dollar mergers.
click here for Feature Article
Investing in Main Street Act of 2019
"We support two bills in the US
Senate, S. 1994 & HR. 116,
to expand access to capital available for small
businesses."
click here for special report
- not a paid political message -
|
Special Report
Bank lending standards for firms easing long-term, Fed
survey shows
(Small Business Reports) -
8/5/2019 -
The U.S. Federal Reserve’s quarterly survey of senior loan
officers showed an overall easing of standards on commercial
and industrial business loans compared with before the
financial crisis.
“Banks, on balance, reported that their lending standards on
C&I loans are currently at the easier end of the range of
standards between 2005 and the present,” the report said.
That is notable because a rise in U.S. business debt to
historic levels has raised red flags at the U.S. central
bank over financial stability vulnerability. Fed Chair
Jerome Powell said he does not see high corporate debt as
posing the same sort of systemic threat that the subprime
mortgage market did.
Here are some facts about
the U.S. economy
Small business owners are optimistic and hungry for growth,
according to one source for online business funding Small business loan requests in the second quarter 2019 increased by 57% over the previous three-quarter average. Total amount funded to small businesses across the U.S. grew by 21%:
Small-business owners'
optimism has edged up over the past three months. In the
latest quarterly Wells Fargo/Gallup Small Business Index
survey, conducted July 8-12, 2019, the overall index is
+136, up from the +129 recorded in Quarter 2. The index is a
measure of owners' present and future optimism -- both of
which saw upticks this quarter.
Small-business owners
remain upbeat about their companies' financial outlook and
the overall national economy and appear to be planning on
expansion by applying for new credit products in the coming
year. Although the current U.S. trade and tariff situation
is being debated on many levels, relatively few
small-business owners say it is affecting their business
directly. As for challenges, owners remain concerned about
core business basics -- attracting customers, developing new
products for their business and fending off competitors. Editors' notes:
Speculative money fleeing
the stock markets today in search of growth and relative
safety is surging to the higher risk returns of an expanding
U.S.capital market in small business funding on Main Street
with 30 million small businesses.
The strong U.S. Main Street
consumer economy today is not measurably disturbed by the recent
global economic slowdown, the 2020 election, stock markets,
trade wars, Fed interest rates, recession fears, foreign
civil unrest, wars, or the environment.
SOURCES:
Theatlantic.com, Reuters.com, Google.com
|
Special Report
Why are some businesses more successful
than others?
Who can you trust for business lending, customer
payments, and customer financing?
Once upon a time, local bankers
provided small business loans and credit card processing
─and customer financing for larger companies.
Today ─since 2008─ local banks mainly
provide business checking and business credit cards. They are resellers
for payment card processors that now offer competitive direct accounts
to merchants. Local branches
continue to shrink in favor of online banking.
Banks decline roughly 75% of small
business loan applications for less than a million dollars because they are not
profitable, while most small businesses are applying for under $250,000.
Only about 20% of small business
owners have trusted the Internet for business finance. They tend to be
younger businesses with owners that have time to search online, decide or guess
which website to trust, and apply on a web form for small amounts.
Fortunately for the small
businesses that plan to expand, the local banker is
being replaced by the business finance agency for business funding,
customer payments, and customer financing. A business finance
agency is equal parts personal relationship and finance tech with trusted
proven sources based on experience.
However, many business finance agencies are small and some may not be found easily onlne by searching because they do not want to be crushed by crowds of unqualified applicants. So they can be hard to find.
Feature Article
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Finance Performance Inspection
Three fast questions your business finance agency should
ask you:
Business Funding
—SBA business loans, bank term loans, short-term working capital
1.
How much money could you use for expansion, operations, or
refinancing?
Customer Payments
—reliable
business tools free up time and eliminate resellers
2. How
long have you been with your payment services provider - over a year?
Customer Financing
—easy point-of-sale competitive advantage boosts revenue
3.
What
percent of your sales is from customer
financing?
How many reps does it take for all your business financing? —more than one?
Are all three areas of your business finance aligned for efficient growth?
□
Business Funding
for Expansion, Operations, Refinancing
SBA Business Loan
up to $350,000
—non-SBA Bank Term Loan up to $200,000
—SBA Commercial
Real Estate Loan —Business
occupied .. up to $5 million
Short Term
Working Capital — Flexible & Quick —up to $500,000
□
Customer Payments with Smart Point-of-Sale
Tools
—eliminate
resellers with superior service, security and business tools
Business owners free up hours with easy reliable point-of-sale tools
and robust reporting in a digital cloud office
□
Point-of-Sale
Customer Financing to Increase Revenue
—more approvals - one lender - great credit to no credit .. installment loan,
not a credit card
Consumers apply on any browser
fast & easy
No merchant fees, no setup,
no risk, no minimums
Feature Story
click here for
complete article
Customer Financing Boosts Sales 20% to 30%
Competitive businesses increase sales promoting "good credit to no credit" point-of-sale financing
Example only - No products or services are sold on this non-profit educational informational resource
click here for complete article
Special Report
How Unsecured Business Loans Work
Take Your Business Mobile
Intelligent Financing Boosts Revenues
Annual Special Report
Businesses See 2019 Growth ... Confidence Surges
Business owners poised to end 2018 on a high note. Four in five
entrepreneurs anticipate year-over-year revenue growth, and many plan to
expand their businesses.
Strengthening these growth plans is a groundswell of economic optimism
as business owners are increasingly confident in the continued positive
performance of both the national economy and their local economies.
American small businesses plan to finish 2018
with a bang, according to the fall 2018 Bank of America Business
Advantage Small Business Owner Report. And they’re optimistic about the
year ahead.
Wells Fargo/Gallup Small Business Index
Separately, according to the latest quarterly
Wells Fargo/Gallup Small Business Index, optimism among small business
owners increased substantially over the last quarter. The quarter,
according to the index, received a score of 129, which is 11 points
higher than last quarter’s score of 118, and apparently the highest in
the survey’s 15 year history.
Small business owner survey respondents said
positive business financials are largely the cause for their optimism.
Eighty percent of respondents rated their financial situation as “very
good” or “somewhat good,” while 84% said they expect their financial
situation to be “very good” or “somewhat good” in the coming year. A
record 55% of business owners reported increases in revenue, with 62%
anticipating revenue increases in 2019. In addition, 74% said they had
good cash flow in the past 12 months, and 78% said they expect their
businesses to have good cash flow over the next year.
Bank of America Small Business Owner Report
The Bank of America Small Business
Owner Report is a biannual study exploring the concerns, aspirations and
perspectives of small business owners throughout the U.S. and in 10
major cities.
Eighty percent of
entrepreneurs are confident their 2018 year-end revenue will exceed that
of 2017. In addition, over the next 12 months:
-
Fifty-seven percent of
business owners believe their revenue will increase (vs. 51 percent
in fall 2017).
-
Sixty-seven percent
plan to expand (vs. 59 percent in fall 2017).
-
Twenty-seven percent
plan to hire (vs. 16 percent in fall 2017).
-
Fifty-five percent are
confident the national economy will improve (vs. 46 percent in fall
2017).
-
Fifty-four percent
express similar confidence in their local economies (vs. 48 percent
in fall 2017).
-
Fifteen percent intend
to apply for a loan (vs. 8 percent in fall 2017).
Competition for talent
heightens as small business hiring ramps up. As business owners make
plans to hire in the year ahead, they acknowledge that identifying and
retaining employees has become a significant challenge. Among business
owners who sought to hire new employees, 50 percent say the tightening
labor market had a direct impact on their ability to find and hire
qualified candidates. In response, business owners have modified their
hiring strategies to find and recruit top talent by:
-
Shifting to a more
flexible culture in terms of hours, location and extra time off (25
percent).
-
Using social media
more actively (23 percent).
-
Offering higher
salaries (17 percent).
-
Promoting how the
business impacts the local community and highlighting charitable
work (12 percent).
-
Using an outside
recruiter (9 percent).
The top economic issues
concerning business owners are:
-
Health care costs (63
percent vs. 72 percent in fall 2017).
-
Interest rates (44
percent vs. 43 percent in fall 2017).
-
Trade policies (43
percent; issue not surveyed in 2017).
Despite unique
challenges in managing a small business, entrepreneurs love what they
do. Ninety-one percent say the added stress of entrepreneurship has been
worth it, and 90 percent would recommend that others follow in their
footsteps. Business owners are feeling the holiday spirit, as 83 percent
plan to offer at least one holiday perk to their employees. The top
holiday perks being offered are:
-
Office closures (50 percent)
-
Flexible hours or vacation time (41 percent)
-
Salary bonuses (38 percent).
Wells Fargo: Small business optimism soars on strong
revenues and cash flow
The Q4 survey marks a record-high score in the
survey’s 15-year history.
Optimism among small business owners jumped
significantly in the latest quarterly Wells Fargo/Gallup Small Business
Index, with an overall Index score of 129. That is 11 points higher than
last quarter’s score of 118 and the highest in the survey’s 15-year
history. The fourth quarter 2018 survey was conducted Nov. 8–14,
immediately following the midterm elections.
Survey respondents said positive business financials drove the record
high.
Eighty
percent of respondents rated their financial situation as very good or
somewhat good, and 84 percent said they expect their financial situation
to be very good or somewhat good over the next year.
A record 55 percent of business owners reported
increases in revenue, with 62 percent estimating revenue increases in
the next year. In addition, 74 percent said they had good cash flow in
the past 12 months, and 78 percent said they expect their businesses to
have good cash flow over the next year.
“As we head into the end of 2018, small
businesses are continuing to indicate that they are thriving and hopeful
for the future,” said Andy Rowe, Wells Fargo head of Customer Segments.
“With owner optimism hitting its highest level in the 15 years Wells
Fargo has been conducting this survey, we are excited to see what this
will mean for their continued capital investment and growth.”
“With
the increases we’ve seen in business owners’ revenues and the high
degree of confidence business owners have in their cash flow, it’s not
surprising that taxes remain a key issue for them,” said Mark Vitner,
Wells Fargo managing director and senior economist. “While the number of
business owners that don’t expect changes to their operating environment
remains high, most see the current environment as very good and many
business owners are looking to expand their business in 2019.”
Top challenges continue to be hiring and attracting new
business
For the third consecutive quarter, survey
respondents said hiring and retaining staff was their top challenge, at
18 percent. In addition, the number of business owners who expect to
have an increased number of openings in the next 12 months remained
steady at 35 percent.
Other challenges cited include attracting new
business (10 percent) and taxes (9 percent), both of which have
continued to be top issues for small business owners.
December 2018
Small businesses are on an upward trajectory
·
Anticipated small business loan demand is at its highest level since
2012, with 48 percent planning to take out a loan in the next 12 months
·
Nearly two-thirds of small businesses (65 percent) anticipate an
increase in sales, compared to just 5 percent that expect a decrease
·
Small
business economic confidence ratings outpace those of consumers by more
than two times (43 percent vs. 21 percent)
SOURCE: PayNet / Raddon 2018
Small businesses are in full-on growth mode. It is a good time to expand, compete and grow.
Businesses are looking to banking partners for reasonable capital infusions, but are discouraged by slow reviews, impersonal processes and denials.
Following the 2008 financial crisis, a combination of regulatory and
risk factors lowered credit volume among larger financial institutions,
hampering the pace of recovery. The lingering effects of these factors
continue to hamper small business growth today.
Record-Breaking Small Business Optimism Fuels Confidence to Expand
Example only - No products or services are sold on this non-profit educational informational resource
Special Report
November 2018
Cost of a Customer Data
Security Breach
Lost Trust
= Lost
Business
COST: $148.00 per stolen record on average
A
stark warning to merchants about their payment card processing:
Many resellers - which includes banks - cannot keep up with
new
financial tech for payments processing, inviting customer data breaches and fraud
that some merchants do not survive.
Are you with a reseller? Or do you have a direct account with a Top 5 payment processor? Big difference!
IBM / Harris (2018) found that 75 percent of consumers in the U.S.
say that they will not do business with companies that they do not trust
to protect their data.
• 60 per cent of small to
medium-sized businesses go out of business within six months of a cyberattack
• 70 per cent of cyber attackers deliberately target small businesses
• 71
per cent of cyberattacks hit businesses with fewer than 100 employees
•
$180,000 is the average loss that small- and medium-sized businesses sustain
from cyberattacks
CLICK HERE for Complete Report - Is your payment processor a reseller?
--National Federation of Independent Business (NFID)
click here for complete news release
Small Business Optimism Shatters Record Previously Set 35 Years Ago
Expectations translate to financing growth, profits according to NFIB’s leading indicator survey
Washington, D.C. (September 11, 2018) — The NFIB Small Business Optimism Index soared to 108.8 in August, a new record in the survey’s 45-year history, topping the July 1983 highwater mark of 108. The record-breaking figure is driven by small business owners financing and executing the plans they’ve put in place due to dramatic changes in the nation’s economic policy.
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SOLUTIONS
Business funding .. Customer financing .. Point-of-sale Tools
Key Finance
Solutions for Every Small Business
- click link
-
Is
Your Customer Financing Working?
click link for article
Does it
boost revenue?
Good
to No Credit?
More Approvals? .. Fewer Declines?
U.S.
Small Businesses Anticipate Growth And Expansion
NEW YORK, April 30, 2018 /PRNewswire/ -- According to The Harris Poll, nearly three out of four small businesses in the U.S. plan to expand their product and service offerings this year.
With strong expectations for growth, small businesses are
well-positioned to make improvements and upgrades. A total of 72 percent of small business
owners report that expanding product and service offerings
within current geographies is the top priority for this year.
Investment
Priorities, Sources and Key Issues
- When
it comes to investing in their businesses, 50 percent say technology
is at the top of the list, followed by equipment upgrades (47 percent)
and hiring staff (36 percent).
- To
that end, over half of small businesses expect hiring at their company
to increase over the next year.
- Despite
these expectations, small businesses remain focused on a number of key
issues. Data security is the top concern for small businesses (68
percent), followed by continued economic uncertainty (64 percent) and
rising inflation rates (61 percent).
- The
top ways in which small businesses have capitalized their company in
the last five years include internal sources of funding (38 percent),
secured bank loan (33%), and leasing/equipment financing (22 percent).
Understanding these key trends can help small businesses innovate
and contextualize potential challenges. With
data security as a top concern, we understand why half of small businesses
are looking to upgrade technology at their businesses.
·
Small
business optimism and plans for expansion have reached historic highs.
o
In
March, the NFIB’s small business optimism index reached its 16th
consecutive month in the top 5 percent of 45 years of survey readings.
o
According
to Wells Fargo, small business optimism is at an eleven-year high.
o
In
April, NFIB’s monthly jobs report showed that a net 20 percent of small
business owners reported job creation plans, remaining at a historically
high level, and 33 percent reported raising compensation, the highest
reading since November 2000.
Small
Businesses Struggling
With Cybersecurity Breaches
of Customer
Payment Data
• 71 per cent of cyberattacks hit businesses with fewer than 100
employees
• $180,000 is the average loss that small- and medium-sized
businesses sustain from cyberattacks
"Over the next five years, smaller payment processors and resellers may
not have the resources and technology needed to keep up with continuous
upgrades in security required to protect merchants' customer payment
data from fraudulent hacker breaches.
Small
business owners embody the American pioneering spirit and remind us that
determination can turn aspiration into achievement.
CRITICAL
TO THE ECONOMY: Small businesses are responsible for a significant portion
of U.S. economic activity and are vital asset to the economy.
·
There
are nearly 30 million small businesses in the United States employing over
57 million people, according to the Small Business Administration (SBA).
o
A
2012 study found that small businesses produce nearly half of private
non-farm gross domestic product (GDP) in the United States.
·
Small
businesses, defined as firms employing fewer than 500 employees, play a
huge role in the U.S. economy.
o
Small
businesses comprise over 99 percent of all firms with paid employees in
the country.
o
Over
97 percent of all trade activity comes from small businesses, generating
one-third of the United States $1.4 trillion in total known exports.
o
Small
businesses employ 48 percent of private sector employees and represent
41.2 percent of private sector payroll.
o
Small
businesses are diverse, representing 8 million minority-owned businesses.
·
Small
businesses are an engine for job creation.
o
Historically,
small businesses are responsible for two out of every three net new jobs
created in America.
o
Over
half a million new small business are launched each year in the United
States, creating more than 2.5 million new jobs per year, according to the
Bureau of Labor Statistics.
·
Small
businesses are diverse, representing millions of women and minority owned
businesses.
o
According
to the SBA, there were 9.9 million women-owned businesses as of 2012,
including 4 million firms owned by Latinas and African American women.
o
Almost
99.9 percent of women-owned owned businesses are small businesses.
o
Women
owned small businesses employ 7.3 million employees across the Nation.
o
Small
businesses represent 8 million minority-owned businesses.
o
The
number of minority-owned businesses is growing faster than non-minority
owned businesses, with minority-owned firms generating nearly $1.4
trillion in annual economic output.
SMALL
BUSINESSES ARE BOOMING: small
business optimism and the economy have reached historic levels.
·
The
economy is growing and wages are rising at small and large businesses.
o
The
Council of Economic Advisers estimates that the corporate provisions of
the Tax and Jobs Cut Act alone will raise GDP by 2 percent to 4 percent
over the long run, increasing household income by $4,000.
o
Department
of Labor data from March shows a 4.1 percent unemployment rate, which is a
17 year low, and wages are up 2.7 percent over the past year, the highest
of any calendar rate since 2008.
BUSINESS GROWTH FACTOR™
"Capital Strategy
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Short Term Money for Small Businesses
up to $500,000 in 2 days - Credit Issues OK
Advertising
Working Capital
Inventory
Equipment
Renovations
Expansion
Debt Reduction
Tax Payments
Emergency Situations
click for News Release
Seven
Ways Banks Measure Small Business Credit
Why
does qualifying for a small business loan have to be such a mystery?
According
to a CB Insights study, cash flow issues are the second most common
reason startups fail, accounting for 29% of failures. In many cases,
access to capital would make a big difference. Yet the loan application
process is notoriously opaque for small business owners.
Research
from the Federal Reserve Bank of New York shows the average
small business owner spent 26 hours searching and applying for credit,
contacted three financial institutions and submitted three credit
applications. Despite this time-consuming work, only half of
small-business applicants end up being approved for the loan amount they
applied for.
Compounding
this problem, many small-businesses owners may not know that they have a business credit
score or how to access that information. Banks also don’t have to
provide a reason for declining, and small businesses may not understand
steps they can take to improve. What's more, small-business owners
generally can’t afford a CFO able to help them with this process.
When
small-businesses owners understand what factors into lenders’ decisions,
they can work to improve their businesses and become more attractive in
the eyes of lenders.
Knowing
how banks evaluate the creditworthiness of a small business is a great
place to start. There are seven key factors:
1.
Business Debt Coverage
How
much debt does the business currently carry, and can it afford to cover
all of its existing debt obligations, as well as any new debt? To
determine this, banks look at a company’s cash flow and its annual
business debt payments.
2.
Combined Business and Personal Debt Coverage
Business
and personal finances are often interconnected. For this reason, banks
usually take into account your personal debt obligations. What they want
to know is: If the business is struggling and can’t afford to pay the
debt, will the owner of the business be able to make the payments? This
measure is calculated in much the same way as business debt coverage and
takes into account business and personal cash flow, assets and combined
debt obligations.
3.
Business Credit
Did
you know your business has its own credit score? There are a few different
business credit scores that banks may use:
•
FICO® LiquidCredit® Small Business Scoring Service℠: Scores
range from 0 to 300.
•
Dun and Bradstreet PAYDEX Score: Scores range from 1 to 100.
•
The Intelliscore Plus℠ from
Experian: Here, too, scores range from 1 to 100.
These
scores are designed to quantify a business’ ability to repay a debt. Several
factors influence your business credit score, including payment
history, credit utilization ratio, company size and industry risk.
Note:
“Hard pulls” can have a negative impact on the business and personal
credit scores. Try to avoid applying for loans until you’re reasonably
confident you’ll be approved, or check before you apply that the company
does a “soft pull” that won’t impact your credit scores.
4.
Personal Credit
Even
if a business has a stellar credit score, banks want to understand the
creditworthiness of the people running the business. Three credit agencies
calculate a person’s credit score (known as FICO scores): Experian,
Equifax and TransUnion. Though the models -- and, thus, the scores -- for
each agency vary slightly, they’re based on the same criteria, which
include payment history, amounts owed (including utilization), length of
credit history, new credit and the types of credit in use.
5.
Business Debt Usage
Banks
want to know whether the amount of debt a business is carrying is
appropriate for the business’ size and industry. Business debt usage
compares outstanding business debt to either business revenue or
assets.
6.
Personal Debt Usage
Can
you, as a business owner, access credit when you need it? Do you have
available credit that you’re not currently using? Banks divide an
owner’s outstanding debt balances by the total available revolving
credit to calculate personal debt usage. In general, banks would like
personal debt usage to be no more than 30%.
7.
Business Revenue Trend
Banks
want to know whether a business is currently growing. They assess the
business revenue trend by calculating the average revenue growth over
time. To limit the risk of default, banks look for revenue growth trends
that match (or exceed) the industry average.
Note: Banks pull the revenues from tax returns. If businesses have previously been denied loans, it’s generally advisable that they reapply after a new tax return.
It’s important to remember that all seven of these measures will change over time. So, if your business was previously denied and your finances have improved, it may be worthwhile to reapply. Since banks rely on tax returns, the right time to reapply may be after you file your next return. One watch-out on this: Avoid initiating too many “hard pulls” on your credit, because this can hurt your score.
How
can I keep track of all this, you ask? After all, most business owners are
experts in their fields, not in finance. One alternative is to hire a
financial adviser, but they can be expensive. The good news is that there
are tools available today online today to help small businesses keep track
of their finances and make the loan application simpler. So, if you
can’t afford a “real” CFO yet, you might consider a digital online
service instead. Digitizing your financial documents can also help, so
when it’s time to apply for a loan, all the documentation is organized
and searchable.
Ultimately,
shedding light on the lending process will benefit all parties involved.
Applicants will know whether they’re likely to be approved and won’t
waste time if they’re not.
Transparency
around the process is a good for lenders, too, as it will improve the
quality of loan applications, increase approval rates and make the lending
process more efficient and profitable.
Small businesses represent 99.7% of our country’s firms, according to the Small Business Administration. It’s time to empower them with valuable information about their finances, so they can reach their full potential and help our economy grow.
Business
owners who cannot wait or do not qualify for a traditional business loan
from a bank often get the money they need quickly as short term
advance from other sources that use finance technology for alternative
credit scoring. The short term advance has become the preferred strategy
for many small businesses.
text or email the application to your customers
for instant approvals
The
New Customer Financing
Boost
revenue with more approvals at
the purchase transaction
click link
America's Resurgent Economy
Small Business and Consumer Confidence at Record Highs
Small Businesses More
Interested in Capital
Innovative Main Street Capitalism
Inspires
Confidence in the American Dream
Small
companies are getting more interested in borrowing, but many are still
finding it hard to get loans from banks. Over 60% of small
businesses are planning for capital expenditures in 2018, yet 82% of small
business loan applications are denied by the banks.
That’s
the finding of a quarterly survey of small businesses released in December
2017 by Pepperdine University’s Graziadio School of Business and Management
and Dun & Bradstreet Corp.
The
survey findings show that owners who have shied away from risks like
borrowing ever since the election may be feeling more secure about taking
on debt. But banks that are adverse to risk, especially given the rules
imposed on them by the Dodd-Frank banking law, are still wary about small
companies.
Banks
also are closing branches and paring credit in small towns and rural America, focusing instead
on large urban markets. That leaves many communities without the friendly faces of
finance that once sustained them and worsens a tough economic environment.
-- Wall Street Journal 12/26/2017.
On
a positive note, many companies wanted financing because they want to grow
or acquire another business — 44 percent of small businesses, and 47
percent of mid-sized ones.
not available from
traditional sources
examples only
EXPAND & COMPETE
Long
Term SBA Loans .. $30,000 to
$350,000 ..
same
day approval
—Funded in 7 days
Single digit rates
10 - 25 years
No collateral up to $350,000
Streamline
financial tech - not available from banks
SBA
Commercial Real Estate Loan up to $5 Million - business occupied
$0 down option
Zero cost to apply - no effect on your credit score
.. One application
with multiple banks (FDIC) greatly increases approvals Good credit profile required
examples only
examples only
examples only
No products or services are
offered or sold
on this non-profit educational informational resource
|
Editorials, opinions and articles are not a solicitation or an offer to sell, refer or arrange
financing. Features in this publication do not promote or sell products,
goods or services. |
Small Business Optimism Hits Near All-Time High
Not since the roaring Reagan economy has small business optimism been as high as it was in November, according to the National Federation of Independent Business (NFIB) Index of Small Business Optimism, released today.
“We haven’t seen this kind of optimism in 34 years, and we’ve seen it only once in the 44 years that NFIB has been conducting this research,” said NFIB President and CEO Juanita Duggan. “Small business owners are exuberant about the economy, and they are ready to lead the U.S. economy in a period of robust growth.”
Report: Small Business Optimism Index
click link
Working
Capital
Is
it the right time to finance growth?
click link
The Ins and Outs of
Qualifying for a Small Business Loan
click link to download
article (pdf)
The
Ins and Outs of Qualifying
for a Small Business Loan
click link to download
article (pdf)
Small
Business Financing Guide
FEATURED NEWS
click link
Why
you need a
Business Finance Agency
Streamline
financial tech - not available from banks
Get a finance performance checkup today
|
—because business credit changed with financial tech and easy access to capital for small businesses ...and their customers. examples only ... no products or services are available on this educational website REVENUE
BOOST Approve
up to 75% of declines from the primary lender .. increase sales
up to 30%
GROWTH FACTOR™
EXPAND & COMPETE
SBA
Business Loan .. $30,000 to
$350,000 ..
same
day approval
SBA
Commercial Real Estate Loan up to $5 Million - business occupied
$0 down option funded in 30 days |
|
82%
Eighty-two percent of small businesses are planning for
growth —with 35% saying they will borrow up to $300,000 to
expand. Yet, traditional banks reject 50-75% of loan requests from
small business owners who often spend 33 hours searching, applying and
paying excessive rates and needless fees.
Business owners ARE quickly getting the money they need —just not from conventional or local bank branches.
Non-bank alternative capital sources recently funded over
$9.0 Billion to 250,000+ small businesses including medical & dental and
elective aesthetic practices, medical devices providers, home improvement
companies, veterinarian practices & animal hospitals, automotive
services ...
Small Business Administration (SBA) 7(a) online loans
Business owners spend 33 hours searching online and applying for loans because traditional banks turn down two thirds of their applications. They pay higher rates and needless fees when they do not find the right lender for their unique business.
POST-ELECTION SMALL BUSINESS OPTIMISM SUSTAINED IN JANUARY Small business optimism rose again in January to its highest level since December 2004, suggesting that the post-election surge has staying power, according to the monthly National Federation of Independent Business (NFIB) Index of Small Business Optimism, released today. “The stunning climb in optimism after the election was significantly improved in December and confirmed in January,” said NFIB President and CEO Juanita Duggan. “Small business owners like what they see so far from Washington.” The Index reached 105.9 in January, an increase of 0.1 points. The uptick follows the largest month-over-month increase in the survey’s history. Five of the Index components increased and five decreased, but many held near their record high. “The continued surge in optimism is a welcome sign that economic growth is coming, said NFIB Chief Economist Bill Dunkelberg. “The very positive expectations that we see in our data have already begun translating into borrowing, hiring and spending in the small business sector.”
|
|
Editorials, opinions and articles are not a solicitation or an offer to sell, refer or arrange
financing. Features in this publication do not promote or sell products,
goods or services. |
Small businesses succeed with quick online lending
Tech-driven online funding makes it simple and easy for small business owners to quickly access the right capital for their unique business so they can smooth out their cash flow and invest in the business. Online business funding is based primarily on revenue strength and growth, so it is easy for most small businesses to qualify for working capital.
However, too many business owners typically are spending 33 hours searching, applying and trying to make sense of all the new online funding. often without success.
What could you do with the right funding?
business capital based on revenue strength & growth
Inventory / Equipment
Expansion / Growth
Advertising / Marketing
Emergencies / Seasonal
Working Capital
Bills / Taxes
Pay off Cash Advances
see article below
ROI 5X RETURN
Fifty eight percent (58%) of small businesses plan to obtain financing this year
2016,
higher than the 52 percent of 2015. The top reasons for using the proceeds
– for those considering loans of $100K or less – are:
- Buying and repairing equipment (19 percent);
- Purchasing inventory (18 percent);
- Expansions (15 percent);
- Software and technology (15 percent).
SOURCE: CHASE Business Leaders Outlook Survey
Eighty one
(81) percent of
small business owners say they need working capital, but over half of those
(63%) are too time starved to apply for a loan, or they don't
believe they would be approved because banks turn down roughly 70% of small business loan
applications, especially requests for under $500,000.
SOURCE: CITI RESEARCH
Quick Decisions.
Quick Funding.
business capital based on
revenue strength
and growth
Short
term capital makes it quick and easy for small
business owners to access the money they need to smooth out cash flow and
invest in the business.
Working Capital
Nobody faces more challenges on a daily basis than business owners. In fact, for owners of small businesses, handling so many different challenges is the source of great satisfaction — and some headaches, too.
But when business owners are asked to name their greatest challenge, one thing tends to top the list most often: accessing working capital to manage cash flow. In other words, making sure there is enough capital flowing in to cover everything that needs to flow out.
There are a variety of reasons why cash flow can be a steep challenge for small business owners. Needs can precede revenue. Or perhaps you’re getting paid more slowly than you’d like. Or if you’re a seasonal business — a garden center, for example, or specialize in hardy, cold-weather clothing — and you have peak sales months and require that revenue to stretch across your off-season months.
Often, business owners can optimize cash flow by negotiating longer payment cycles with creditors and encouraging debtors to pay in shorter time periods. But there are other solutions that can help you sail through the lean months with plenty of working capital on hand: short-term business funding.
You can put small business funding to work immediately for your business, whether it means meeting payroll for a few months, negotiating a great deal on inventory for paying in cash or hiring and training those new employees you need. Our business financing solutions for working capital can help you operate without missing a beat or even take advantage of an unexpected or one-time business opportunity.
And then there are those costs that no business owner sees coming: The sudden need to replace an important piece of equipment or the need to upgrade technology to improve efficiency and save money in the long run. Repairs, sprucing up the exterior, landscaping, even marketing and advertising can all be critical elements to your brand and your ability to growth the business. In today’s super-competitive environment, this is no time to skimp, especially when applying for business funding. Working capital can be just a few clicks away
Inventory Financing
As any business owner who is managing inventory will tell you, it can be more complicated than taking items off the shelves and selling them to customers.
The central issue is that inventory is purchased with your business’s cash, either upfront or over a period of time, as your items are sold. What this means is that, as inventory sits on shelves waiting to be sold, the business’s cash is tied up, not working in other ways for the business. Most small and medium-size businesses are constantly watching their cash flow and often don’t have the luxury of tying up their cash in inventory. They need to keep their capital reserves and business lines of credit available for other things.
But there are sound business reasons, depending on the situation, for purchasing large amounts of inventory, like stocking up during an off-season. And getting inventory financing means you won’t have to tie up your cash to do it.
Inventory Financing as a Multi-Purpose Solution
Getting small business capital to purchase inventory makes good sense for all kinds of businesses, in a variety of situations. A few of the most common uses for inventory business funding include:
-
Seasonal: Many businesses have peak months of the year when they make most of their income. But, the cash generated during this time may not stretch through off-season months, even though this is the best time to buy your inventory for next year.
-
Pre-holiday or special event: While retail businesses generally don’t want excess inventory sitting around, in the months leading up to Christmas or back-to-school shopping, for example, having more inventory than usual can translate into more sales. But you have to have the working capital to purchase large quantities.
-
New product rollout: If you’re offering a hot new product that research tells you is going to be a hit, you’ve got to have plenty of inventory on-hand to meet the demand. But stocking up that much inventory is expensive, and you’re not sure you can swing it.