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Why Every Small Businesses Needs Debt Management

 Here’s the deal.  Wealthy individuals, and many who have plans to build wealth, hire financial planners. What is  a financial planner’s job? They manage assets. One of the most common problems that business owners face is not in management of their assets but in managing their debt. The more wealth people have the more debt they usually inccur and in order for the business to grow they must have access to capital (aka Mulah, Money, Cash). Access to capital usually means creating more debt. The key is to properly structue or create the debt.  To do this successfuly requires strategies that most business owners are not trained or prepared to do.

Managing Business Debt is not just about paying your bills on time. When done properly you can create a well oiled machine that turns your company into a widly successful thriving enterprise.

The Goal:

Manage Business Debt Effectively

Leverage ALL  of Your Companies Resources 

Create Assets an Increase Cashflow

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3 Easy Credit Repair Steps

Quick credit repair might seem impossible if you’ve been having credit problems. It’s easy to think that once your credit score is damaged you might never be able to fix it. Fortunately, it’s possible to take just a few steps and achieve quick credit repair that can make a huge difference in your score.

 Step 1  make sure you make the right payments on time.  If you’re having financial problems, just this first step caIf you’re having problems with your credit, you’ve probably gotten behind on at least one debt. Late payments or missed payments can dramatically damage your score.n seem difficult. But if you figure your income and expenses and there’s just not enough there to make the minimum payments, then you need to contact the companies and let them know you’re having a hard time.

If this doesn’t work and you still can’t pay, you may want to look into a quick credit repair program that negotiates for you to pay a percentage of what you owe in smaller payments. It’s important to do something so that you don’t keep getting farther and farther behind.

Step 2 Manage the balances on Your  Credit Card Balances.  If your balances on your cards are more than 40-50% of their limits. You can pay more on each card if you want. But you’ll get more of a feeling of satisfaction if you choose one card to work on first. Make the minimum payments on the other cards, and pay as much as you can on that one card.  Using this method, you’ll see the balance of that card drop more quickly.  Once that card is paid off, chose another card and start applying what you were paying on the first card to it in addition to its minimum payment.

Step 3.   Contact Experian, Equifax, Innovis and TransUnion and request your free annual credit report. Look them over and contact them about any errors. These are 3 easy quick credit repair tips than can really improve your score right away.

Stuggling with Cash Flow? Try Unsecured Business Credit Lines.

At some point in time, the reality with most businesses is that fluctuation periods would eventually come and such companies will have to face problems regarding their cash flow. A company may experience a financial crisis wherein more cash may be going out than entering as profit.

It is very important for any enterprise to never run out of funds.  Having an unsecured business line of credit could make all the difference. Assuring that your company has an unsecured line of credit will be a big step of precautionary on your part to keep your company afloat, even when faced with financial crises.

What Is An Unsecured Business Line of Credit and How Does It Help?
 
An unsecured credit line for your business is a type of financing resource that can provide your company with the money that it needs without requiring collateral. Having such a credit line for your company can be of great benefit, especially when faced with problems on cash flow. This can provide you with the temporary funds that your company may need for operations to continue.

In running your own company, sometimes being prepared for possible problems  play a big role in helping you ride the tides of business. For sharp entrepreneurs, even when there is no immediate need for the extra funds, having an unsecured credit account at hand will be a good cautionary tool for anything that could possibly go wrong with the business.

After all, you can never know exactly when your company might experience cash flow problems. But knowing that you have back up when funds become unexpectedly tight through unsecured business lines of credit, will surely set a whole lot of difference for your business to step up the ladder.

If You’re Not a 720 There’s Work to Do.

Amazingly enough, someone’s life can be drastically affected by three numbers. Here’s a look at the consequences they can bring.  You should review your personal credit reports at least once per year.  If  all 3 scores form all 3 credit bureaus (equifax, transunion, experian)  are above 720, congratulations! You have excellent credit; stop worrying.

If you’re scores are not above 700, no problem—let’s get to work. Take solace in the fact that the national average score is around 676 according to the Gallup Organization. If you’re scores are below 400, 500, or 600, there’s definitely room for improvement and only one way to go—up!

This Book Credit Restoration for Entrepreneurs will help you get started.

A Crash Course In Credit Scores

If  you had no idea that there is a totally different credit scoring system for businesses than there is for people, don’t fret—I’ll explain.

Personal credit scores range from 350 to 850.   All three of the credit bureaus—Equifax, Experian, and Transunion—offer  FICO credit scores using a complex mathematical formula developed by Fair, Isaac and Company, but they each give the scores a different name: At Equifax, the FICO is known as the Beacon credit score; at TransUnion, it’s called Empirica; and at Experian, it’s called the Experian/Fair, Isaac Risk Model.

Business credit scores range for 0 to 100.  The major business credit bureaus are Dun and Bradstreet and Experian Insights. Unlike their counterparts the business scoring system is not complexed.  It is quite simply based on payment history.  Each credit bureau does however, give  the scores a different name.  At Dun and Bradstreet the score is called a PayDex and at Experian it is called an Intelliscore.  Here is the bottom line in this crash course:   Good business credit scores PLUS good business credit scores  gets you access to lots of business funding!

What Are You Free To Do?

Money Won’t Create Success, the freedom to make it will. ~Nelson Mandela~

Pursuing Your Passion is Fulfilling and Leads to Financial Freedom.  ~Robert G. Allen~

The Best Thing About Starting A Business is It Gives You The Freedom To Do Your Own Thing. ~Paul Clitheroe~

In honor of independence day, I’ve decided to blog about financial freedom.   As an entreprenuer, my business gives me the freedom to do so many things. 

  • Instantly Create Money Making Opportunities
  • Spend More Time with My Family
  • Use my gifts, talents, and knowledge to impact and empower the lives of others

As I work with coaches, consultants, and service based business owners on a daily bases, the common thread of desire is financial freedom. In order to achieve financial freedom you need to establish a roadmap for financial success and have the right mindset.

How often do you dream about financial independence, but struggle to believe that it’s actually possible for you? Are the business expenses piling up? Do you fear the financial obligations that come with the next step of growth?

 I have a message of hope. 

You can achieve the financial independence you deserve if you know the right choices to make and you’re willing to believe that you can do it!

When you get your financial situation under control, the benefits you experience will touch every area of your life. Many of the daily stresses you face that seem totally unrelated to money will disappear. Your physical health will improve quickly as you regain control of your stress levels. Plus, you’ll be able to think more clearly about your goals and dreams.

 Less stress means the more time to enjoy your family and nurture the relationships that are most important to you. Small steps in the right financial direction can give you the freedom to enjoy your life!

The Most Powerful Way to Leverage Business Credit

Unlock Capital

Tips to Unlock Business Capital

CEO’s of new businesses should be aware that most Start-up businesses do not reach a level of profitablility and cashflow for while. The accurate use of business lines of credit along with a great business idea and plan can kick start the process.  Business Lines of Credit are very flexible tools that allow you to make payments out of th money you have set aside from your initial cash draw while you uild your business!

In the world of Business Credit, this is called seasoning money.  Seasoning money means to set aside some of the cash you withdraw from your business lines of credit and place it into another account for future use.

Here are some great reasons to season money from your business lines of credit:

  • keep money that can be used to repay the monthly payments on initial credit lines while you build the business
  • have money available for salaries during business start-up
  • Strengthen your balance sheet with good cash reserves
  • Use cash as collatoral or leverage to secure new loans
  • Cash cushion available for emergencies

The most powerfule way to leverage business credit is to use the cash from business credit lines to open accounts and establish relationships with small regional lenders.  These local lenders are more likely to offer you lines of credit if you season money in an account at your local bank.

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