FAST BUILDING BUSINESS CREDIT PROGRAM:
Fund • a • bil • i • ty [ adj. Fuhnd-uh-bil-i-tee ] You won't find "Fundability" on Dictionary.com, so don't bother looking.
Fundability is a phrase we've coined to describe how a business measures up in relation to the entire lending and investing community. How fundable is your business? Simply put, Fundability is a measure of how lenders, investors, vendors, insurers, and suppliers view the risk of extending credit and/or services to your business.
Let’s Break Fundability Down Into Its Parts:
Part 1 – ComplianceSetting up properly and completing the 20 compliance items that most lenders require prior to a loan being approved. In terms of Fundability, this is simply saying that your business has paid attention to the details and addressed all of the items that every real business should.
Part 2 – Strong Business Credit ScoresBuilding strong credit scores with all three national business credit reporting agencies: Experian Smart Business, Dun & Bradstreet, and Equifax Small Business Financial Exchange.
Part 3 – Optimal Credit UsageEstablishing a 1-3-5, that is one bank loan, three business credit cards, and five vendor lines of credit that are not associated with you personally and do not show up on your personal credit reports.
Part 4 – Comparable CreditGetting vendors or non-traditional lenders to grant your business a credit line that is comparable in size to the loan you are seeking from a bank or traditional business lender. This can be accomplished in many ways. For instance, through a vendor willing extend a $25,000 credit line to your business or through a $50,000 lease line of credit to be used for specific equipment. The bottom line is that most traditional lenders do not want to be the first to take a chance on you.
Part 5 – Business ViabilityBeing able to show that your business is not only credit worthy but also "viable" for its industry and market segment. This means the business model and plan you present to the traditional lender needs to make sense and show the ability to service the loan. Simply put, lenders want to know that they can get paid back.
Our Business Credit Building System guides you step-by-step through the first four parts of Fundability. Parts 1 – 4 are all about making sure your business is set up right, shows optimal credit usage, has strong business credit scores, and is given access to comparable credit. For Part 5 we provide you with our time tested workbook, “How to Prepare and Present a Successful Funding Request”. It provides all the tools necessary to test your own Business Viability and then shows you how to project that viability for lenders.
By improving the Fundability of your business, The Business Credit Building System is doing more than just helping you build strong business credit. We are improving the overall "health" of your business while greatly increasing your ability to succeed now and in the future.
The day your business obtains its first bank loan is very much like the day you personally get approved for a home loan. It is the day, and the event, that makes all other lenders take notice and puts you on their credit map.
Non-bank business lenders and credit providers know how difficult it is to get approved for a business bank loan. When they see a reporting bank loan on your business credit reports, it signals to the non-bank business lenders and credit providers that your business is for real.
Too many business owners think that obtaining a business loan from a bank is an impossible dream. Well, it isn't. Our Business Credit Building System has a proven method for obtaining your first business bank loan and a list of the banks that have worked with thousands of our members in both extending and reporting those loans.
Just having a bank loan is only one way your business banking relationship affects your business credit, including your ability to get approved for vendor credit lines and business credit cards. The single most important factor is the date you opened your business checking account.
Most business owners assume that the day they incorporated or filed for their business license is the day their business began. This is simply not the case. Business lenders consider the date you opened you business bank account as the actual start date for your business. So, if you incorporated in 2002, but opened your business checking account in 2007 then, as far as lenders are concerned, your business started in 2007.
Another way that your business banking relationship is vital to getting approved for loans can be found in your Bank Rating. The business credit reporting agencies will grade your business's creditworthiness based on its credit scores. In a similar fashion, banks and other traditional lenders will grade your business’s ability to repay based on its Bank Rating. Your business bank rating is determined by the average daily cash balance you maintain in your business checking account over a few months.