2nd Step: Fundability

Goal: To describe how your business measures up in relation to the entire business lending and investing community.

Your Business Needs To Make Itself “Fundable” For Lenders

Fundability is not just about your business credit. It includes several components that determine how your overall business is seen by lenders, investors, insurers, suppliers, and more. Basically, we know that your business was worth the risk for you, but is it worth the risk for them? The answer will increasingly be “yes” as your fundability grows.

We will ask you some questions regarding the you business fundability, like do you have a bank account in the business name, is your business home based business, when did you start your business, Average gross monthly revenue,  Total amount of monthly Credit Card sales … etc.

Using Assets to Build Stronger Business Credit Scores.

Your existing assets can act as collateral for obtaining new business credit accounts and may open more creative options.
  • There are funding programs based on certain types of revenue streams that can be pledged as collateral.
  • Other revenue streams can be sold outright for working capital.
To maximize your business credit you will need to have some working capital to make down payments, initial purchases, etc.
(Note: You can build business credit without having or using assets, but leveraging assets can provide a means to working capital. If used properly, it can even expedite the business credit building process).

Personal Assets:

In this section we will ask you some questions about the personal assets for the owners as it will increase the credibility for your company’s profile like Do the owners own residential real estate, Total value of IRA & 401K investments, Are you currently receiving payments from real estate secured notes or structured settlements

Business Assets:

Also some questions about the business assests for improving the company’s image infront of the lenders and vendors like Amount of outstanding invoices with customers, Current amount of existing purchase orders, Total value of equipment owned outright,

Why personal credit is still important?

  • We want to see what financing the business can qualify for now
  • Your business credit will be established in later steps 4 & 5
  • Most lenders would feel more comfortable if the owner can show a positive personal credit score.
  • Rates and Terms for the lenders and vendors often improve if a business owner has positive personal credit.

We know that one of the main reasons you are building business credit is to get away from having all of the business financing tied personally to the business owners. The good news is that you are well on your way to doing just that. We have many options in step 4 & 5 that will help you build business credit without a personal guarantee.

If you have some blemishes on your personal credit you aren’t alone, feel confident that we will have financing options for you within the program. Let’s proceed….

You just gave us all of the information we need to identify what financing your business might qualify for right away.  Now we want to help!

In this step your Finance Officer will help design a Finance Map outlining what should be applied for now and/or what can be done to position your business for more financing in the future.

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