Business Credit Report and Tips

Just like a personal credit report there is also a business credit report for your business. There is plenty of free access to the credit report for your business which can provide you with important information you can use to make vital business decisions. You can also use DandB.com business directory for additional business resources.

An accurate report can help you to decide whether or not you want to do business with a certain company and possibly what price you can charge. You can access comprehensive financial information that will allow you to assess the level of risk there is in extending credit to other companies.

You will also be able to investigate credit risk factors to help avoid unforeseen surprises when reviewing current customers for credit increases and learn what to expect through review of a company's historical business practices.

Having access to an objective business credit report can help determine how confidently you can make a decision on credit for a new customer or if you need to learn more about them before you extend credit terms to them.

Through UCC, or the Uniform Commercial Code, filings you can figure out what your creditor position is in relation to other creditors that may already be in line for collection on any given credit customer of yours.

If you dedicatedly monitor your business credit, you can always have access to the information available to you regarding how much credit your suppliers will extend to you, the interest you will pay, how much you can borrow from a lender, what your customers think about you, and how interested potential investors may be.

With the ability to monitor other companies' credit reports, you can get a leg up by discovering past payment practices of prospective customers, your current client's business conditions, supplier's history with other businesses, what competitors are doing, and other business details that you deem important.

You need the ease, affordability, and convenience of being able to monitor your own and your competitors credit status and receive updates right to your email. Important information about the stability of a company is sound or if they are planning to go out of business. You should also know if they begin to get behind on payments or if your own credit report remains accurate; so you can maintain a positive cash flow environment.

Having free access to all this data is the key and can mean the difference between your business success or business failure and keep you out of trouble. I have a friend who owned a business several years ago and if she had had access to all this information she probably would still be in business today. She didn't have this kind of access to other's information and got seriously taken advantage of by more than one supplier and then discovered she had no legal recourse to do anything about it.

If she had had access to objective, accurate business credit report information, she would not have ended up filing for bankruptcy and spending the better part of the next decade digging herself out from under a pile of legal BS she had to deal with.
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Business Grants for Women: What You Need to Know

Everyone is affected by the economic crunch. Even businesses are hit by the market slump. If cash is hard how can you run a business? One option is to get a loan from a financing institution. It is good if you are a man. If you are a woman you will find out that it is tougher to get a business loan.

Truth no. 1: whether you like it or not there still is a "silent" discrimination between man and woman. The norm still exist that the men are more capable in running businesses than women so these institutions would rather deal with men. To be able to get a loan from them you need to prove your capability as an entrepreneur. How can you do that if you are still in the stage of growing your business? This is where business grants for women will come in.

So you started searching for business grants. Basically the first place you look for is the government's financial support. You browse through their site and start searching through their list of grants. Upon seeing one that might suite your business, you click through the requirements. Then the next reality will hit you.

Truth no. 2: the government does not have any business grants for women. Instead of helping you out of your predicament they offer business establishment support in the form of references and trainings. Then they point you to other sites and the process goes on and on until you get exhausted and give up. You look to foundations, non-government organizations, associations, women's groups and others. Very seldom do you see them giving business grants for women. What they offer are business loans. You may find business grants for women among their programs but they never give grants to individuals. They give grants to groups of women or organized groups of women. One site even suggested that to be able to get business grants for women you have to pay a grant research company to gain access to their database. Doing business is already hard. Finding financial support makes it harder.

Assuming that you got a /business grant for women/ from the sector that supports women entrepreneurs the next reality will hit you.

Truth no. 3: you have to work doubly hard to ensure that the trust they gave will be worth it so next time it will be easier for you to get subsequent assistance. Now that you have the fighting chance you have to make things work for your business. To make it work sacrifices have to be made. You need to upgrade your skills set. If you are a mom you need to learn to balance your time between the business and your family. You can do this by replicating yourself. Look for a person who can support you and train that person to take on some of your responsibilities. In that way you can free up your time to spend for your family. Always remember that you cannot succeed on your own. Success is always a team effort.

The bottom line is finding free money is very hard to come by these days especially during the financial slump. You need to find more creative ways to raise the funds that you need. Read /Grant Funds for Women/: Where to Find Them. It can help in opening doors for you and your business.

Business Lines of Credit Overview

A business line of credit is an extremely important financing tool for your business. This is primarily due to the fact that this type of financing works in a very similar manner to that of a credit card. When you are granted a credit line from a bank, you are able to draw down on the balance as needed. Conversely, if you were to receive a business loan then you would be responsible for making regular interest and principal repayments on a monthly basis even if you are not using the entire amount of capital that was approved. If you have issues pertaining to maintaining a positive cash flow at all times, even though your business may be profitable, then it may be in your best interest to seek this type of financing in order to more smoothly run your business venture.

Businesses that can benefit substantially from using this type of financing facility include service based businesses, companies that carry a significant amount of inventory, and specialized businesses that frequently have a number of outstanding accounts receivables. If you are involved in a medical field, you can use the anticipated payments from insurance reimbursements as the appropriate collateral that will be required of your business. Prior to seeking any type of debt facility for your company, you should always work closely with your certified public accountant so that you can understand the risks associated with undertaking a credit obligation.

As it relates to a small business using a line of credit, you may to investigate the programs that are available through the Small Business Administration. The most popular avenue for this financing is the usage of a SBA Micro Loan which can be arranged as a revolving credit facility. However, it should be immediately noted, that you are going to need to provide a full personal guarantee for this obligation.

When you are applying for this type of financing then you should make sure that you have the appropriate collateral to secure this debt. In most circumstances, a bank or financial institution is going to want to ensure that a tangible asset can act as a security for their investment. Typically, you can use personal assets such as your home, vehicles, retirement accounts, and selected business assets for this purpose.

If you do not qualify for a traditional line of credit based on your personal assets or business assets then you can seek a number of different alternatives. One of the most popular ways to obtain a credit line is by allowing a third party to use your credit card receivables or account receivables as collateral. However, this method of financing is generally very expensive. If you decide to use this financing methodology then you can expect to pay a yearly interest rate of 15% to 25% depending on the regularity of your revenues. When you are seeking any type of revolving financing facility it is extremely important that you review all of the potential options available to you.

In conclusion, a business line of credit can truly assist your business if you have complex and ongoing financing needs. If you are able to obtain this financing through the Small Business Administration then you can expect highly competitive interest rates as well as flexible repayment terms.