BOSS Business Funding
Boss has been working with businesses and their owners to create more profitable businesses that give the maximum benefits to the owners of the businesses. We noted that there was a general lack of understanding about the differences between business credit and personal credit – a trap for the unwary. The problem was that without a comprehensive plan, businesses rarely qualify for business credit…
So what can you do?
The best advice we can give is to have a Free Funding Analysis completed to see what programs you qualify for now to satisfy any short-term needs. Learn what programs you may qualify for with the least amount of effort so that you can take immediate steps to qualify for additional programs. At the same time, start the deliberate process of establishing business credit and continue to add programs for which you qualify.
Using this method, you will maximize all of your options.
How do I build business credit?
Boss can refer you to services that organize your business information, give you access to trade lines, purchasing terms, business credit cards, and other lending products – all of which are reported to Dun & Bradstreet, Experian or another business credit bureau.
With the vendors reporting your activity, your business builds business credit. You should also create a business profile with Dun & Bradstreet and the other credit bureaus as many lenders base lending decisions in part on risk factors or other analytics created the business credit bureaus based on your business profile. Without a business profile, you would miss out on certain offers or may have to undergo additional underwriting in the lending process.
We can refer you to an organization with the best business credit building tool available. It is integrated with Dun & Bradstreet and has hundreds of reporting vendors to choose from. There are over 500,000 business vendors, but less than 5000 report to business credit bureaus. It is extremely important to work with vendors who do report and to make sure they accurately report. Our online tool will help you create business trade accounts, build business credit and make sure the information shows up on your profile.
We have seen individuals spend over $5,000 just to have access to reportable trade lines.
Find out upfront before paying a penny what kind of financing you’ll receive!
92% of Business Do Not Qualify for Traditional Financing
Why do businesses tend to go to banks, try to get SBA loans, or try to obtain traditional financing before they have established basic trade lines, a business profile and a credit history? The answer is simple: a lack of understanding of business credit. The result is predictable – 92% of businesses do not qualify for traditional financing – so almost all businesses that apply for traditional financing will get rejected. What about the other 8%?
The difference between being part of the 92% of businesses who do not qualify for traditional financing and the 8% who do qualify is the difference between companies who apply for loans with little to no planning and companies who deliberately establish business credit. It boils down to whether you are willing to build your business credit profile and establish a solid business credit history. It does not even have to be difficult.
For example, if you are going to fund your business from personal cash – say $25,000 – why would you directly contribute the $25,000 to the business when you could open a secured line of credit, using the $25,000 to buy a CD to secure the line of credit? You could kill two birds with one stone: fund your business and allow it to start the process of building business credit.
Too difficult? Then open secured credit cards and use them to buy computers, office supplies, paper, gas – whatever – and start building business credit. The trick is to start the process of building business credit as soon as possible so the business does not have to depend on your personal finances. Doing so will allow you business to obtain better rates, more funds, and receive more opportunities – all with less personal risk for the business owner(s).
