Becoming Bankable with Business Funding Now
At Business Funding Now, we understand that a company's lifeblood is access to cash and credit. Building a robust business financial profile is essential for securing the financing needed to grow and thrive. We are dedicated to helping businesses establish and enhance their business financial profiles, opening a world of financial opportunities.
Why Being Bankable Matters?
Having your business bankable allows your company to borrow money to purchase items or services, with the expectation of future payment. Establishing a strong business bankable profile offers numerous advantages, including:
More Favorable Lending Terms:
Banks are more likely to offer better terms to businesses with strong credit profiles.
Higher Trade Credit Limits:
Suppliers and vendors may extend higher trade credit limits.
Lower Insurance Premiums:
Strong credit scores can lead to lower insurance premiums.
Better Lease Terms:
Businesses can secure more favorable lease terms for real estate and machinery.
The Benefits of a Business Bankability
Creating a separate credit identity for your corporation or limited liability company allows you to build a business bankable profile with credit reporting agencies. This profile is crucial as it helps credit grantors decide whether to extend credit to your business.
Creating a separate credit identity for your corporation or limited liability company allows you to build a business bankable profile with credit reporting agencies. This profile is crucial as it helps credit grantors decide whether to extend credit to your business.
Our Comprehensive Approach
At Business Funding Now, we guide you through the essential steps to establish and build your business financial profile:
Lender Compliance
These are a series of items that make up some of the underwriting guidelines used by lenders in their approval process. Their computers are checking to see if your business has completed these items. Not completing these items can get your business classified at a much higher risk of default and is likely to result in either a decline, much lower approval amounts, or far less favorable terms.
Optimized Reporting
Different elements are used to determine business credit scores. Business credit scores are based on several factors, including industry risk, firm size, debt and consumption, length of credit history, and payment history.
There are several steps you can take to improve your company credit score:
*Paying your loans on time.
*Not getting too close to your credit limit.
*Having a long credit history.
*Making sure your credit report doesn't have errors.
Online Analysis
Credit analysis assesses the riskiness of debt instruments issued by businesses or other
entities to gauge their capacity to fulfill their commitments. The goal of the credit analysis is to determine the proper amount of default risk related to investing in that specific company.
Building Credit
You will need to select at least 10-15 vendor tradelines and make sure they are reporting spread across to DUN and BRADSTREET, EQUIFAX, and EXPERIAN reports. These are typically Net30-day
payment terms. After you set up your vendor credit lines, it is very important to use them every month
and make your payments at least 10 days early. Vendor credit line will take at least one reporting cycle to
appear on your business credit report which can take 45-60 days.
Organize Financials
In the process of your business to become bankable. It is required that you have accurate and up-to-date financial statements that include an income statement, balance sheet, cash flow statement, tax returns, and tax payment receipts. It is recommended that you have these prepared and updated by accounting professionals as that provides an additional layer of credibility when presenting this to bankable type lenders. Lenders use this to analyzed your businesses financial health and it's
under line value.
Become Bankable
The task of determining if the business is eligible is fairly easy:
1) Have all items of Lender Compliance been completed?
2) Do all business owners owning 20% or more have at least 650 FICO scores?
3) Does the business itself have a FICO business score of 155 or higher?
4) Is the business a USA-based for-profit with either an LLC or INC entity type?
5) Is the business not categorized as an ineligible type of business?
6) Has the business or its owners never defaulted on a prior government loan?
7) Can the business show the supportable ability to debt service the new loan?
If the answers to the seven questions asked above are all positive then at least the business will pass the
"minimum" eligibility requirements. This only means the business will get past the initial underwriting
algorithm gatekeeper. It does not mean that the business has become fully bankable.
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