Month: June 2021

Confused About Your Business Credit Score?

How does a business credit score work?

A business credit score is a crucial insight into a company’s financial health and reliability. Lenders will use a credit score to assess how much of a financial risk a business is, based on a summary of the information in their business credit reports, whenever it submits any kind of credit application.

A high business credit score is a good indication that a company will reliably make repayments on time. This will make it more likely that the company’s credit application will be accepted, and they’ll be offered more competitive rates. This score is also accessible by everyone from vendors and suppliers to landlords and business partners.

It’s important that companies don’t neglect their credit score and take the necessary steps to keep it as healthy as possible.

What affects your business credit score?

Just like personal credit scores, there are various factors which determine a business credit score. This score is generated by credit reporting agencies and is calculated using a number of parameters like the company’s payment history.

These details typically consist of public financial data and information supplied by the company, its lenders, and other vendors. Some example variables considered in a business credit score include the company size, its level of credit utilization, any current outstanding debts, and the length of the company’s credit history. (And this still isn’t even the full list of factors.)

You can help improve your business credit score by providing accurate and up-to-date financial information. It’s a good idea to routinely check your business credit report in order to identify any errors or inaccuracies. You should notify the relevant credit bureau if you spot anything that needs correcting.

There are four main business credit scores and reporting agencies. Dun & Bradstreet Credit Score for Businesses is most commonly employed in a credit check. There are also the Experian Business Payment and the Equifax Business Credit Scores. These are typically used by banks and lenders when assessing credit applications.

Finally, there is the FICO LiquidCredit Small Business Scoring Service. Unlike the above examples, FICO is not a credit bureau. It instead uses information from Dun & Bradstreet, Equifax, and Experian to generate a credit score. That score is then commonly used when making approval decisions on Small Business Administration loans.

These four credit reporting agencies can all hold different information on the same company and, as a result, there can be variation in these business credit scores. They also use different credit ranking scales, meaning what is considered a good score by one reporting agency may not be by another.

Thinking of Starting a New Business?

Now is the time! With our society ready to get back in action (safely), new business concepts are quickly emerging with creative flows for serving the public without the high risk of spreading the virus. Put your innovative business concepts into play, and connect with us to get the funding you need to start your newest venture!

Financial restraints have been a complaint for many of the dreamers, limiting themselves to their immediate funds. There is an alternative. If you have the dreams and decent credit, Small Business Loans and No Doc Loans are available to you. Our goal is to provide you with the knowledge you need and the resources available to make your dream a reality. Give us a call – we have the education and the perspective to help you obtain the loans you need for your small business. Visit our website or give us a call to find out what financial backing is available to make your business soar!

Unsecured Finances has over 10 years in the consulting business! We specialized in educating and assisting clients on acquiring Unsecured Business Loans and Start-Up Business Specialty Loans including; Unsecured No Documentation (No-Doc Stated Income) Loans, Unsecured Business Loans, and Unsecured Start-Up Business Loans and Lines of Credit from $10,000 to $500,000 without Assets.

Apply on our website to find out if you qualify, or call today for a free consultation: 1-888-294-2584

3 Business Growing Tips


Growing your business comes with its own exciting moments and challenges. However, it can be challenging to know how to grow and what strategies you can implement to help you do so. Many growth strategies can be placed into two categories: planning and education. In this article, we will cover these categories and will give you four effective ways to grow your business revenue through them.

Planning

Planning is like reading a recipe before you cook a meal: it will help you to get the result you want.

1. Create a Five-Year Plan

Every business needs a long-term plan when growing their revenue. Take a look at your business plan and think about where your business is at the moment and where you would like to be in the next five years. Use this plan to strategize your next moves and to plan clear goals. Based on your five-year plan, think about what you and your employees need to do during each quarter. Make sure the ideas are clear like the examples below.

  • Learn more about email campaigns
  • Promote products to people over 50
  • Research and buy up-to-date accounting software
  • Start a social media marketing campaign
  • After this, set regular strategy meetings with yourself and team members. Use these moments to address how close your business is to the goals you have set, and to work out which parts of your strategy need to be changed. Your goals should not change drastically but as the market evolves, allow for flexibility and adapt your plan if needed.

2. Plan for Emergencies (Like a Pandemic)

Okay, so it’s unrealistic to act as if there is going to be a pandemic every year, but businesses can plan for rocky moments. Every business needs an emergency plan because there are so many possible business emergencies. What should you do if there is a decline in the market?  How will you tackle finances without having to make employees redundant?

Plan ahead so that when something out of the blue happens you won’t be caught off-guard. Use the pandemic as a tool for the future. Here are some of the obstacles business owners have had to consider during this time:

  • How can we still run our business if we need to close the shop for a month?
  • What do we do if our supplier can’t deliver our goods as quickly as before?
  • How can I help my staff to work remotely and well?
  • Think about how the pandemic has affected you, your business, and your employees.  Note down all of your hardships and turn them into a future emergency business plan.  This means even in tough times, your plan will allow you to continue to grow your business revenue.

Education

Whether you have been in your industry for a short while or for decades there will always be something to learn. 

3. Your Target Audience

Once you have found your target audience, study them. Collect as much information about your customers as possible.  Create questions to gain a profile of them, such as:

  • What do they like about your business? 
  • Are there other interests do they have? 
  • What trends do they follow on social media? 
  • Do they read articles, books, watch videos online, or all of the above?
  • Which social justice campaigns mean the most to them?
  • Use questions like this to study your target audience. Your answers should give you an idea of which type of person buys from your business. Once you have studied your audience, use the information to think about the best ways you can sell to them.                   

There is always a new online trend.  Trends like the Until Tomorrow Challenge or the Ice Bucket Challenge are always going viral. Study the current online trends and challenges. Take a look at your customers and study how they engage with them.

Using strategies like planning for the short and long term and planning for rocky moments will help you to grow your business revenue.  Think about how you could put these strategies into place regardless of which stage your business is in, and continue to study your customers and their habits to reach them consistently. With time, effort, and effective implementation of these strategies, you can grow your business revenue effectively.

Thinking of Starting a New Business?

Now is the time! With our society ready to get back in action (safely), new business concepts are quickly emerging with creative flows for serving the public without the high risk of spreading the virus. Put your innovative business concepts into play, and connect with us to get the funding you need to start your newest venture!

Financial restraints have been a complaint for many of the dreamers, limiting themselves to their immediate funds. There is an alternative. If you have the dreams and decent credit, Small Business Loans and No Doc Loans are available to you. Our goal is to provide you with the knowledge you need and the resources available to make your dream a reality. Give us a call – we have the education and the perspective to help you obtain the loans you need for your small business. Visit our website or give us a call to find out what financial backing is available to make your business soar!

Unsecured Finances has over 10 years in the consulting business! We specialized in educating and assisting clients on acquiring Unsecured Business Loans and Start-Up Business Specialty Loans including; Unsecured No Documentation (No-Doc Stated Income) Loans, Unsecured Business Loans, and Unsecured Start-Up Business Loans and Lines of Credit from $10,000 to $500,000 without Assets.

Apply on our website to find out if you qualify, or call today for a free consultation: 1-888-294-2584

Is Your Small Business Running Out of Money?

It’s never a nice feeling to see more money leaving your business’ bank account than going into it. You might be having a slow month with fewer customers, or you’re not able to keep up with the costs of business ownership. Whatever the reason for your financial hardship, it can be worth checking out some options to help improve your situation. Here are some of the most popular ones below. 

1. Reduce Your Own Pay

Taking a smaller wage can be a short-term fix to keep as much money in your business bank account as possible. If you find yourself personally short of funds as a result, there’s always the option of quick small loans. You can apply for these small loans online, then pay them back with manageable repayment terms. While they are not a long-term solution, they can allow you to manage your personal costs while waiting until it’s feasible to draw more money from your business. 

2. Raise Your Rates

If it has been a long time since you visited your pricing structure, now might be the ideal time to do so. Think about the value you provide, what your competition is doing, and how much profit is being made through your current pricing model. However, it’s essential to approach this change with caution. Make sure you give your loyal customers plenty of warning and consider gradual price changes rather than significant ones. 

3. Cut Business Costs

After using a budget planner, you may have discovered there are plenty of ways to cut costs in your business. Put these cost-cutting measures into action as soon as possible. Consider options like putting the café-style coffee machine out of action, choosing cheaper stationery, and canceling software subscriptions you no longer require. 

4. Change Your Payment Schedule

Personal finance options like payday loans are ideal for when you want to take less out of the business to cover your bills but don’t want to end up with less in your personal bank account. Another way to keep as much money in your business as possible is by shortening the payment window your customers have. Many businesses allow 90 days for invoice payment. However, by shortening that down to 30 days or less, you may be able to enjoy a continuous income stream. 

5. Apply For a Business Loan

Our favorite thing to do is help business owners to get as much funding as they can to help their business. All clients go through a discovery process with one of our trained staff.  The discovery process is where we ask you a series of questions and give you the honest truth about your file.  Our staff will figure out all the different financing options for you.  Each client’s situation is different.  Clients are in different industries and have different credit scores, gross sales, revenue and profit margins.  They make and show different amounts of income depending on corporate structure, equity and fluctuations in cash flow.  Business funding is not a one size fits all model.  This is what our trained staff is here to determine.  Our capital comes from hundreds of different sources (Banks, wholesalers, crowdfunders, private lenders and investment groups)  and they all have different underwriting criteria.  This is why the discovery process is needed.  If you are looking to end your daily payment MCA loan or looking for a longer term flexible business financing program we just might fit your needs!

As stressful as it can be to realize your business is running out of funds, it doesn’t have to spell the end. Some of these options above may be able to put you back in a desirable financial position.

Thinking of Starting a Remote Business?

Of course there are more options, which we will share on our next blog, but the key is to start exploring now. Don’t just sit at home watching Netflix and letting this opportunity go by. If you have the dream, we can help you get the funding to take the next step. 

It’s becoming all the rage now, with people looking for opportunities and creating new business ideas. If you are one of the bright new entrepreneurs looking to weather this storm by building a strong boat, we can help you find funding options that are right for you. Why wait another moment?

Financial restraints have been a complaint for many of the dreamers, limiting themselves to their immediate funds. There is an alternative. If you have the dreams and decent credit, Small Business Loans and No Doc Loans are available to you. Our goal is to provide you with the knowledge you need and the resources available to make your dream a reality. Give us a call – we have the education and the perspective to help you obtain the loans you need for your small business. Visit our website or give us a call to find out what financial backing is available to make your business soar!

Unsecured Finances has over 10 years in the consulting business! We specialized in educating and assisting clients on acquiring Unsecured Business Loans and Start-Up Business Specialty Loans including; Unsecured No Documentation (No-Doc Stated Income) Loans, Unsecured Business Loans, and Unsecured Start-Up Business Loans and Lines of Credit from $10,000 to $500,000 without Assets.

Apply on our website to find out if you qualify, or call today for a free consultation: 1-888-294-2584

Small Business Owners, Credit Scores and Loans

For most small business owners, the need to build and maintain a good personal credit score never goes away. Although it’s true that some lenders tend to weigh the value of your personal score higher than others (banks and other traditional lenders fall into this category) when they evaluate your business loan application, most lenders include a review of your personal credit score to determine your business’ creditworthiness.

This can be true for businesses with a few years under their belts as well as for those early-stage businesses looking for their first business loan. Nevertheless, in addition to a good personal credit score, small business owners also need to focus on building a strong business credit profile.

Your personal credit score is really a reflection of how you handle your personal credit obligations, and there are those who suggest it isn’t relevant to how your business handles its business credit obligations. Nevertheless, many lenders consider your personal credit score as one of the data points they consider when they review your business loan application, so it’s important to understand how your score is created, how it is considered when you apply for a loan, and what you can do to improve your score.

How is Your Personal Credit Score Calculated?

The early days of credit reporting were largely made up of local merchants working together to monitor the creditworthiness of their shared customers. With the passage of the Fair Credit Reporting Act in 1970, the Federal Government enacted standards to improve the quality of credit reporting.

In 1989, the FICO Score was introduced as the formula banks and other lenders started using to evaluate the creditworthiness of a potential consumer. Your FICO score is based upon data collected by the consumer credit bureaus. The three biggest are Experian, Transunion, and Equifax. All three of the major credit bureaus use the same basic scale from 300 to 850 to rank your credit, but the scores are rarely exactly the same.

That said, the fundamental formula used to calculate your FICO score is pretty straightforward and universally used:

35% Payment History: Late payments, bankruptcy, judgments, settlements, charge offs, repossessions, and liens will all reduce your score.

30% Amounts Owed: There are several specific metrics including debt to credit limit ratio, the number of accounts with balances, the amount owed across different types of accounts, and the amount paid down on installment loans.

15% Length of Credit History: The two metrics that matter most are the average age of the accounts on your report and the age of the oldest account. Because the score is trying to predict future creditworthiness based upon past performance, the longer (or older) the file is the better.

10% Type of Credit Used: Your credit score will benefit if you can demonstrate your ability to manage different types of credit—revolving, installment, and mortgage, for example.

10% New Credit: Every new “hard” enquiry on your credit has the potential to reduce your score. Shopping rates for a mortgage, an auto loan, or student loan will not typically hurt your score, but applying for credit cards or other revolving loans could reduce your score. According to Experian, these enquiries will likely be on your report for a couple of years, but have no impact on your score after the first year.

Thinking of Starting a Remote Business?

Of course there are more options, which we will share on our next blog, but the key is to start exploring now. Don’t just sit at home watching Netflix and letting this opportunity go by. If you have the dream, we can help you get the funding to take the next step. 

It’s becoming all the rage now, with people looking for opportunities and creating new business ideas. If you are one of the bright new entrepreneurs looking to weather this storm by building a strong boat, we can help you find funding options that are right for you. Why wait another moment?

Financial restraints have been a complaint for many of the dreamers, limiting themselves to their immediate funds. There is an alternative. If you have the dreams and decent credit, Small Business Loans and No Doc Loans are available to you. Our goal is to provide you with the knowledge you need and the resources available to make your dream a reality. Give us a call – we have the education and the perspective to help you obtain the loans you need for your small business. Visit our website or give us a call to find out what financial backing is available to make your business soar!

Unsecured Finances has over 10 years in the consulting business! We specialized in educating and assisting clients on acquiring Unsecured Business Loans and Start-Up Business Specialty Loans including; Unsecured No Documentation (No-Doc Stated Income) Loans, Unsecured Business Loans, and Unsecured Start-Up Business Loans and Lines of Credit from $10,000 to $500,000 without Assets.

Apply on our website to find out if you qualify, or call today for a free consultation: 1-888-294-2584

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