If you are a business owner the task of obtaining business capital can be very daunting. Most businesses fail because they have never been taught how to obtain financing and therefore they have no clue where to begin. The Small Business Administration reports that 97% of business loan applications fail.
The importance of seeking expert assistance when setting up business credit has many business owners turning to a business finance coach to help them establish their business credit. One of the biggest mistakes made by business owners is that they attempt to obtain business financing using their personal credit. You should never use your social security number to obtain business financing. Personal credit has to be separated from your business credit.
Until your business has three separate business credit scores, any financing that your business receives will be based solely on your personal credit scores and your personal assets. A good example of this would be if you wanted to buy a home, but you had no personal credit scores. You would get declined, and funding a business is no different. You need to have business credit scores established to even get looked at for a business loan. Having business credit scores established are just a start in the finance process. There are 20 other items that must be in place before you apply for business loans.
The process of establishing business credit is much more complicated than setting up personal credit. There is one business credit agency that will try to charge you $500 just to open your credit file. You do not have to pay it, and a good business finance coach will show you why you don't have to pay it. A good finance coach will set you up with all three reporting credit agencies as well.
A business finance coach instructs business owners in a step-by-step format on exactly what they must do to get their business ready to be approved for financing and how and why to build the business credit scores they need to get approved. A coach will show a business how to not only build business credit, but to build good business credit that the banks and other lending agencies will use to approve your loan request. A good finance coach will typically direct you to sources for business credit cards, vendor lines of credit and for other creative forms of financing.
To find a business finance coach to help your business build excellent business credit scores you might go to your favorite search engine Google, Yahoo, or MSN and do a search for the phrase "business finance coach".
Corey Pierce is the CEO of BusinessFinance.com a business capital search engine with the funding criteria of 4,000+ sources for business capital. Visit www.businessfinance.com to search the funding directory for free.
- Related Videos
- Related Articles
- Ask / Related Q&A
- Business Finance Working Capital Loan - Credit Card Processing
- Let Unsecured Business Loans Work for you
- Small Business Loans Online
- Business Owners Tend to Underestimate the Importance of Working Capital!
- Instant Business Loans: Help Your Business Grow
- Working Capital Advances
- Bad Credit Business Loans: A Poor Credit History Need Not Spell Disaster for Your Business
- Working Capital for Business
So You Received a Below 500 Credit Score, Now What
By: Tony Francis | 04/01/2010Are you wondering about the sudden change in your loan's interests? Ponder no more for this may have been caused by a poor credit score. A score ranging from 300-500 will not just mean loan denials but soaring high loan interests for you as well. This is a commonly experienced...
What Good Credit Scores May Bring You
By: Tony Francis | 04/01/2010A 700 credit score is usually enough for a consumer to get an approval on his loan application. The problem is that most consumers get only an average of 615 in their scores. This is mainly because there are a lot of available credit scoring methods that also results to...
How Credit Scores Are Related to Credit Reports
By: Tony Francis | 04/01/2010What does your credit report contain? It is actually a summary of your consumer statement (this may be an explanation about your late payments or a fraud alert; It also contains basic information with regards to a consumer (given name, address, date of birth and employer if there are any)....
An in Depth Comparison of Your FICO and Vantage Credit Score
By: Tony Francis | 04/01/2010FICO (Fair Isaac Company) and Vantage credit scoring method primarily differs with the way it is used and calculated by the 3 major credit bureaus (Equifax, Experian and TransUnion). Although both are a major factor in the issuance of credit reports, both scores are used by credit companies in determining...
How to Settle Debts and Improve Bad Credit Scores
By: Tony Francis | 04/01/2010It is not a surprise during these hard times we are currently in that more than a few Americans are facing the facing the consequences of bad credit scores. A lot of consumers are experiencing loan denials which make the situation even worse. The sad thing is, although everybody is...
Driving an Insured Car is Peace of Mind
By: Patricia Gabbett | 04/01/2010Everybody wants to drive a car. You can go to a place at anytime that you want to. Well, instead of riding in a public vehicle, of course you would prefer driving your own car. But are you safe in doing so? What are the possible protections that you have...
Following Factors That Increase or Decrease Car Insurance Rates
By: Patricia Gabbett | 04/01/2010It is a mystery for some motorists, what the factors are that make their car insurance rates expensive. Few motorists may know some factors or even all the factors that affect their car insurance rates, but they may not know or understand how these factors make their car insurance expensive....
Planning to Cancel Car Insurance? Read This!
By: Patricia Gabbett | 04/01/2010There are many reasons for canceling car insurance. Take into account these different scenarios below as examples why people choose to cancel their policies. A person is unsatisfied with the current policy or company A person is moving to another state A person found another policy that is cheaper with...
Obtain Business Capital Using a Variety of Commercial Finance Options
By: Corey Pierce | 30/10/2006 | FinanceCommercial finance is one of the many options available to entrepreneurs seeking capital to start or grow an existing business. This sort of financing is also referred to as asset-based lending, meaning that it is a secured business loan.
Working Capital Necessary For Every Business
By: Corey Pierce | 21/10/2006 | FinanceWorking capital is the amount of capital required to carry on a business. It can be a problem for businesses to obtain the necessary working capital, especially when they are starting up, and that is why it is so important for businesses to know all that they can about obtaining the necessary capital to build their business properly.
No Significant Financing for your Business Without Business Credit Scores
By: Corey Pierce | 14/09/2006 | Non-FictionMany entrepreneurs seeking financing for their business don't realize that without first having excellent credit scores their business will never obtain significant financing.
Vendor Credit Lines Are Essential To Any Business Seeking Financing
By: Corey Pierce | 09/09/2006 | Non-FictionVendor lines of credit are an aspect of business financing that can't be overlooked for capital needs. You do have to establish vendor lines of credit with the right business in order to build your business credit.
Market Research is a Vital Aspect of Any Business Financing Plan
By: Corey Pierce | 31/08/2006 | ManagementA difficult task for any business is conducting market research. This research can impact a business in many ways including how they brand their products and who they market to.
A Successful Business Financial Projection Can Be The Key To Securing Financing
By: Corey Pierce | 24/07/2006 | Affiliate ProgramsA business seeking capital can't afford to underestimate the importance of business financial projections. A business financial projection is simply forecasting your sales and revenue to the lender.
Failing To Plan Your Business Financing Can Be A Death Sentence For Your Business
By: Corey Pierce | 19/07/2006 | BusinessMost businesses start out thinking the first thing they need is a great business plan. The popular myth is that potential lenders will place great stock in your business plan as a major consideration for approving the financing you need.