The 4 Cs of Business Lending

If you are looking for money for your business than you will be happy to know you only need one “C” to qualify.

In lending when we look to see if a client is fundable we are looking for one of the 4 “C”s. You don’t have to have all of the 4 Cs, only 1 to secure funding.

The first C is Cash Flow. When you have an existing business with good cash flow you can qualify for business funding.

If you do have verifiable cash flow this substantial increases your chances of being approved for funding. There are many funding programs you might qualify for including Business Revenue Lending.

If you don’t have cash flow your business still might have Collateral, the second C.

Collateral for your business is really your business assets. Many things can be used as collateral including equipment, purchase orders, even account receivables.

Having Collateral greatly increases your chances of being approved.

If you don’t have cash flow or collateral, don’t worry you still can qualify for business funding.

Lenders also look at your business Credit to qualify you. Business Credit is our third C.

Lenders will lend you money with no personal guarantee based on your business credit profile and score. If you have a good business credit profile you can use that as security to obtain funding.

If you don’t have business credit built now, call me so I can help you quickly build an excellent business credit score and profile.

Maybe you are just starting a new business, and you have no business credit, cash flow, or collateral. In this case you can still qualify for funding. But lenders will use your personal Credit to qualify you.

Personal Credit is the fourth and final C that lenders will look at to approve you for funding. You can secure credit lines, through me, up to $250,000 with as low as a 650 credit score.

These types of unsecured credit lines do not look at revenue or financials. Your credit is all that is used to qualify you for funding.

All you need is 1 of the 4 “C”s to qualify for much of the business financing that is available to you today.

About the Author

Ken Simmons is currently the CEO of wiseventuregroup.com 

At wiseventuregroup.com  he specializes in helping business owners establish excellent business credit scores and then leverage those scores to access cash and credit for their businesses.

Ken Simmons is also the mastermind behind the release of the exclusive Business Funding Suite. The Business Credit and Funding Suite is the leading business cash and credit access system in the world today.

For more information on business credit scoring, business credit, visit) wiseventuregroup.com 

Bank Credit

Bank credit is the total amount of borrowing capacity a business can obtain from the banking system.

Banks have their own internal way of scoring and rating businesses credit worthiness. They do this through a system called bank ratings, which rates the credit worthiness of a business from the bank’s perspective.

A business can secure more business credit quickly as long as it has a minimum of one bank reference and an average daily account balance of at least $10,000 for the past three months.

What lenders REALLY want to see is that a business has this $10,000 average balance. When a business has this, it yields a “Bank Rating” of Low-5, meaning the business has an average-daily-balance of $5,000 to $30,000.

A business that has a balance of $7,000 to $9,999 will net the business a lower rating such as a High-4, which will make it harder for a business to get approved for bank financing.

Here is the actual bank rating scale, so you can see where you business might rank:

• High 5, account balance of $70,000-99,999
• Mid 5, account balance of $40,000-69,999
• Low 5, balance of $10,000-39,000
• High 4, 7,000-9,999
• Mid 4, 4,000-6,999
• Low 4, 1,000-3,999

There are other factors outside of average bank account balances that affect this rating.

A business will be scored higher if it has the average balance of $10,000 for 3 months, so it’s crucial that the money be in the account, and stay in the account for 3 months to maximize the bank rating.

Overdrawing the account and obtaining non-sufficient-funds charges is one big way any business can severely hurt it’s bank rating.

For the best rating, a business should insure their bank statements reflect a positive cash flow. Positive free cash flow is the amount of revenue left over after the company has paid all its expenses

When the account shows a positive cash flow it indicates that the business is generating more revenue than is used to run the company, increasing the bank rating.

The bank rating is also improved when the business has a consistent amount of regular deposits. 

Other factors can also affect the rating including age of the bank account, other bank products that the business uses, and how many investment and savings accounts the business has. 

Having a good bank rating is essential with securing bank financing. 

To maximize your bank rating insure you keep your bank balance average over 3 months as high as you can, preferably over $10,000 and that your account doesn’t go negative.

Take advantage of and use other services your bank offers such as CDs, savings accounts, and other investment accounts and open your bank account when your corporation starts, and leave it open as this longevity will help your bank rating.

Make consistent deposits on a regular basis into your business bank account and insure each month you have good cash flow through your account by regularly putting into the account more money than you take out.

Taking these steps will insure you have an exceptional bank rating and can get approved for the greatest amount of bank financing.

About the Author

Ken Simmons is currently the CEO of wiseventuregroup.com 

At wiseventuregroup.com  he specializes in helping business owners establish excellent business credit scores and then leverage those scores to access cash and credit for their businesses. 

Ken Simmons is also the mastermind behind the release of the exclusive Business Funding Suite. The Business Credit and Funding Suite is the leading business cash and credit access system in the world today

For more information on business credit scoring, business credit, visit wiseventuregroup.com 

 

Funding Sources

There are many sources who offer business funding today. Knowing the different sources will help you find the best funding options for your business.

Business Charge and Credit Cards are a fast and easy way to access cash for business. You can use the money for any purpose, and you can be approved for business credit with no personal guaranty or credit check. Many merchants will approve you for individual credit cards of $10,000 or higher.

Angel investors have been responsible for funding over 30,000 small businesses each and every year. With over 250,000 active angels in the country you may want to consider an angel investor network to simplify your search. These investors are a great source of funding when banks won’t approve you, and perfect for projects where you need a lot of money.

Asset Based Funding is perfect if your company has collateral such as accounts receivable, inventory, equipment, purchase orders, or real estate. These assets can be used to secure the financing you need, and you can secure asset based funding even if your credit isn’t very good.

Bank Loans are still available, although they have become harder to get approved for. Many large banks tend to be much more conservative in lending so you may want to consider a community bank or credit union for a SBA loan.

Equipment Leasing helps when you want to lease expensive equipment, and some equipment leasing and financing also works for you to borrower against existing equipment you already own.

Factoring is perfect if you have high amounts of account receivables. You can obtain funding up to 25 million and you can receive your advance within 24-48 hours in most cases. With factoring, you sell your company’s accounts receivables to a company (known as a factor) at a discount, in order to free up your cash. The company that purchases the receivables then assumes the responsibility for collecting them.  This is a great option as they absolutely don’t care about your own personal credit.

Grants are a great way to get money for your business, especially government grants. Depending on your business types and intended use of funds, there are many options available for you to receive grant money that doesn’t need to be paid back.

Lines of Credit are perfect sources of working capital. A line of credit works like a revolving credit card but with much lower interest rates and higher available credit limits. You can get credit lines over $150,000 and write checks from the account or use a debit card to withdrawal funds or use for purchases.

Merchant Cash Advances and Merchant Lines of Credit are perfect for businesses who process credit card payments. This type of financing will advance you money against future credit card transactions. You can even get a debit card to use the funds you secure.

Microfinance Loans are less difficult and time intensive to qualify for with loan amounts ranging from $500 to $35k. Many businesses use several micro loans to get money for their business versus applying for one larger loan due to the easier qualifying criteria.

SBA backed Loans are still one of the most popular financing options available today. SBA backs, or insures about 80% of the loan while the lender lending the money takes on about 20% or so of the risk. Due to the lower risk to the bank, many major banks are more apt to lend money using SBA backed loans than regular loans.

Venture capital is neither easy nor fast to be able to tap into but can be a viable source of funding. This is a great source when you need higher loan amounts, and don’t mind giving up a potential stake in your company. Plus you don’t have some of the headaches that come with conventional funding.

It’s always easiest to obtain financing when you know what you are looking for. Now you have a great understanding of some of the many financing options available to small business owners today.

About the Author

Ken Simmons is currently the CEO of  wiseventuregroup.com


At wiseventuregroup.com he specializes in helping business owners establish excellent business credit scores and then leverage those scores to access cash and credit for their businesses.

Ken Simmons  is also the mastermind behind the release of the exclusive Business Funding Suite. The Business Credit and Funding Suite is the leading business cash and credit access system in the world today.

For more information on business credit scoring, business credit, visit)  wiseventuregroup.com

3 Big Differences between Personal Credit Scores and Business Credit Scores

There are many differences between personal and business credit scores.

One fundamental difference between consumer and business scores is the time frame the scores gauge someone’s risk of default over.

A business credit score is a mathematical model that is used to depict a business’s risk of going 90 days late on an account within the next 12 months.

A consumer credit score is a mathematical model that is used to depict a consumer’s risk of going 90 days late on an account within the next 24 months.

Another big difference between consumer and business credit scores is what the score actually represents.

A consumer credit score reflects an individual’s likelihood of defaulting on an obligation.

A business credit score reflects the business’s likelihood of defaulting on an obligation, not the business owner’s.

The business credit score is based on how the business obligations are being paid, not how the business owners pays their personal obligations.

Another major difference between business and consumer credit scores is the score range.

Consumer FICO scores range from 350-850 with 850 being the best score you can obtain. Business credit scores typically range from 0-100 with 100 being the best score you can obtain.

There are three of many major differences between consumer and business credit scoring.

About the Author

Ken Simmons is currently the CEO of wiseventuregroup.com

At wiseventuregroup.com he specializes in helping business owners establish excellent business credit scores and then leverage those scores to access cash and credit for their businesses.

Ken Simmons is also the mastermind behind the release of the exclusive Business Funding Suite. The Business Credit and Funding Suite is the leading business cash and credit access system in the world today.

For more information on business credit scoring, business credit, visit  wiseventuregroup.com

Business Credit Benefits

Imagine having the ability to access $50,000, $100,000, even $250,000 for your business.

Now imagine doing this with NO personal credit check and NO personal guarantee. Your success in business will be determined based on your business credit profile and score. With a good business credit profile you will have near unlimited borrowing power.


Without having a good business credit profile it will be a difficult path to success without having access to working capital and funding.


This is why almost all Fortune 500 companies use their business credit to secure funding.

 It’s not that they need the money to operate. Successful companies use funding as leverage to grow their business.

Business Credit is the best kept secret in business. Over 90% of all business owners know nothing about business credit or business credit scores.

But when you do discover the power of what business credit can do for you and your business you will be floored at how easy it is to get money and grow your business. One of the many benefits of business credit is that you can obtain funding with no personal credit check.

With a strong business credit profile lenders will lend you money based on your business credit, not your personal credit.

This is excellent if you have personal credit issues as you can still qualify for funding. Even with exceptional personal credit, business credit gives you DOUBLE the borrowing power.

You can get approved for much higher funding amounts using your business credit than you would if you used your personal credit to qualify.

Another great benefit of business credit is there is no personal guarantee required for much of the funding you obtain.

This means you can be approved with no personal liability. So if you ever do default, the creditor can’t pursue your personal assets like your home or personal bank accounts.

Business credit adds more value to your business and gives your business credibility. Stakeholders, partners, lenders, even potential buyers of your business will see more value in your business if you have a strong business credit profile built.

Most important by having a good business credit profile built you have security. It is much easier to run your business when working capital is easy to come by.

About the Author

Ken Simmons is currently the CEO of   wiseventuregroup.com

 At wiseventuregroup.com  he specializes in helping business owners establish excellent business credit scores and then leverage those scores to access cash and credit for their businesses.

Ken Simmons is also the mastermind behind the release of the exclusive Business Funding Suite. The Business Credit and Funding Suite is the leading business cash and credit access system in the world today.

For more information on business credit scoring, business credit, visit wiseventuregroup.com

The 5 Cs of Business Credit

The 5 Cs of business credit are: 

1. Character

2. Capital

3. Capacity

4. Collateral

5. Conditions

Character is all about you. It’s about your personal history, your stability, and how reliable you are. This variable is more subjective than the others, and is one of several reasons it is beneficial to do business with a bank where you have built relationships with the people who work there. In determining your character, the lender may look at your education, your work history, your personal income, and personal credit history. Again, it’s important to remember that this is one area of business credit where relationships do matter!

Capital is about how much you have invested in your business. Whether you are seeking a bank loan or a loan from a private investor, the lender will want to see that you are heavily invested in your own business. Generally speaking, the more of your personal money that you’ve invested in your business, the better it will look to a potential lender. (After all, if you’re not confident enough to invest in your business, why should they be?)

Capacity is about your ability to repay a loan according to the terms. Things like cash flow, payment history, and the assets and resources of any person providing a personal guarantee will play a part in determining your capacity to pay back a loan. Collateral is something offered up as security for a loan. Anything from equipment to inventory to a home you own can be considered collateral. It may be easier to get approved for loans with collateral, and many loans will require it. In some cases, the more that you can offer as collateral, the more likely you will be to get approved.

“Conditions” may mean any number of things, some of which could be out of your control. The current economy, for instance, may play a role in your ability to get approved for a loan. Other things that they may look at include your industry and its economical status, and the purpose of the loan.

If your industry is suffering and businesses in your industry are struggling, it could negatively affect your ability to get approved. Some loan purposes are more readily approved than others, too. Loans for riskier purposes such as new and unproven expansions are generally less likely to be approved.

About the Author

Ken Simmons is currently the CEO of wiseventuregroup.com

At wiseventuregroup.com he specializes in helping business owners establish excellent business credit scores and then leverage those scores to access cash and credit for their businesses.

Ken Simmons is also the mastermind behind the release of the exclusive Business Funding Suite. The Business Credit and Funding Suite is the leading business cash and credit access system in the world today

For more information on business credit scoring, business credit, visit   wiseventuregroup.com

Denied Business Credit?

According to recent reports, as many as one third of applications for business loans are denied. If you find yourself as part of that group, there are some things you can do to help the situation.

The first thing you need to do is try to determine where the problem is. Possible areas of concern may include:

• Your business profits. Does your business have a healthy profit margin? Improving your profits by reducing and trimming down the operational excess and unnecessary business spending can help improve profits and boost your chances of getting approved.
• Your business assets and liabilities. If your balance sheet is out of whack, most lenders will run the other way. If your business is already heavy on debt, then this will be an area of concern that you’ll want to address.
• Your payment histories and business credit profile. Obviously, how you are paying your existing obligations will play a role in your approval or denial for credit. If you’ve been denied business credit recently, check your Paydex and other payment performance data and make adjustments as necessary.
•  Most payment experience data is only reported for 2 to 3 years (depending on the credit bureau), so if you’ve made a mistake or hit a bump or two in the road, don’t let it worry you. Just keep the positive payment history building, and make sure what is being reported to date is accurate.
• Your bank ratings. If your business bank account balances are habitually low, this can actually rule you out for certain types of business credit. Try to maintain $10,000 or more in your business bank accounts to avoid trouble.

The bottom line, if you’ve been denied credit, is that there is something about your business that makes it appear to be a bad risk.

 Your job is to analyze and understand your business credit report and business finances, determine where the problem is, and take the necessary steps to correct your course.

Sometimes the lack of history or data on your business will be a key factor in a credit denial.

This is something that can be easily remedied by taking careful steps to shape your business’s financial picture and credit profile.

About the Author

Ken Simmons is currently the CEO of wiseventuregroup.com

At wiseventuregroup.com he specializes in helping business owners establish excellent business credit scores and then leverage those scores to access cash and credit for their businesses.

Ken Simmons  is also the mastermind behind the release of the exclusive Business Funding Suite. The Business Credit and Funding Suite is the leading business cash and credit access system in the world today.

For more information on business credit scoring, business credit, visit) wiseventuregroup.com