TL;DR: Build credit for the business itself, separate from your personal credit, so it can stand on its own with lenders. Ty Crandall says to keep your business data congruent across all agencies to prove legitimacy. Lenders weigh the 3 C's, and alternative lenders may lend on the strength of one of them. Accounts receivable can also serve as collateral.
Ty Crandall, CEO of CreditSuite.com discusses the various credit and financing option available for e-businesses in this time of crisis.
WHAT YOU’LL LEARN
- Parallels of the 2008 Mortgage Crisis with the Current Crisis
- New Credit Opportunities available in the Current Crisis
- The importance of the 3 C’s in Financing: Cash Flow, Credit and Collateral
- How to Establish Business Legitimacy
- Tips in Building Business Credit
KEY POINTS
- The crisis now offers financing for small businesses which were not available during the 2008 crisis.
- New plans financing made available by the US Government offers loans at good rates with long term payments to help buoy the small business in these times. One can also secure a loan to ensure that employees are continued to be paid during business closures. The guidelines for these are being finalized.
- Alternative lenders may provide loans just on the strength of one of the 3 C’s.
- Establish the business credit and not just the personal credit. Entrepreneurs need to show that the business is able to stand on its own in order to secure the credit it wants.
- Account receivables may serve as collateral in securing financing.
- Data congruence across all agencies is important in order to establish business legitimacy.
- For guidance on financing or steps to get funding started, visit the Credit Suite website. You may also contact 877 600 2487 directly for inquiries.
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