Denied Business Credit?

According to recent reports, as many as one third of applications for business loans are denied. If you find yourself as part of that group, there are some things you can do to help the situation.

The first thing you need to do is try to determine where the problem is. Possible areas of concern may include:

- Your payment histories and business credit profile. Obviously, how you are paying your existing obligations will play a role in your approval or denial for credit. If you’ve been denied business credit recently, check your Paydex and other payment performance data and make adjustments as necessary.

Most payment experience data is only reported for 2 to 3 years (depending on the credit bureau), so if you’ve made a mistake or hit a bump or two in the road, don’t let it worry you. Just keep the positive payment history building, and make sure what is being reported to date is accurate.

- Your bank ratings. If your business bank account balances are habitually low, this can actually rule you out for certain types of business credit. Try to maintain $10,000 or more in your business bank accounts to avoid trouble.

The bottom line, if you’ve been denied credit, is that there is something about your business that makes it appear to be a bad risk.

- Your business profits. Does your business have a healthy profit margin? Improving your profits by reducing and trimming down the operational excess and unnecessary business spending can help improve profits and boost your chances of getting approved.  Are you depositing more than withdrawing in your business checking account?

- Your business assets and liabilities. If your balance sheet is out of whack, most lenders will run the other way. If your business is already heavy on debt, then this will be an area of concern that you’ll want to address.

You’ll need to analyze and understand your business credit report and business finances, determine where the problem is, and take the necessary steps to correct your course.

Sometimes the lack of history or data on your business will be a key factor in a credit denial. This is something that can be easily remedied by taking careful steps to shape your business’s financial picture and credit profile.

We specialize in preparing you and your business for financing. We tell you exactly what lenders are looking for – before you apply.  We look for compliance issues, and then we work with you to get them resolved.

Expert Credit Consultants, LLC specializes in establishing business credit and funding using our exclusive Business Credit and Financing Suite as well as consumer credit restoration and optimization. www.ExpertCreditConsultants.com.

How to Obtain a Small Business Bank Loan

Getting your first Business Bank Loan can seem like an impossible task. The majority of the small business bank loan applications get declined because banks won't lend to just anybody ... or will they?

Having a Business Bank Loan can provide a powerful boost to building business credit fast. This bank loan must be set up correctly and report to the appropriate business credit agencies.

So how do we accomplish this? Under this Small Business Bank Loan Program, you will be securing a business loan with a certificate of deposit (CD) at the bank that is extending the business bank loan. You'll make a deposit into a CD account at one of our preferred lending banks (or one of your choice if you prefer if they provide this type of loan). Then, you receive a business loan for 100% of the value of the CD. The purpose of this loan will be to build your business credit scores.

This process works very well and works every time as long as your personal credit is at least ok. The bank is not basing your business bank loan on your personal credit, but if your FICO scores are in the low 500 range they may not do this deal for you.

So where does your deposit come from? We are not talking about a very large amount of money. You can start with as little as $5,000. There are many creative ways to acquire the money you need for the business bank CD deposit: family, friends, savings, garage sales, or from any of our other creative funding programs. Another option is to build a 'savings account' while building business credit.

The Features of a Secured Small Business Bank Loan

- It will appear on your business credit report just like any other small business bank loan.
- There will be no note in your file, or on your business credit reports, that show it as "secured".
- It will make your business credit report stand out to other lenders and creditors who obviously know how difficult it is to get a business bank loan

A Helpful Suggestion

If you have to borrow the money you need for this step from friends or family, you can assure them that they will get their money back. Here is how that works:

-You borrow the money for the CD to secure the business bank loan.
-The bank then makes you a loan dollar for dollar.
-Deposit the money from the loan or line of credit into a separate account and use it exclusively to re-pay itself.
-After the final payment, you return their money with interest. Remember their money is in a CD earning interest.

This technique gives you a great start towards building excellent business credit scores. We work with several lenders that offer this program.

Expert Credit Consultants, LLC specializes in establishing business credit and funding using our exclusive Business Credit and Financing Suite as well as consumer credit restoration and optimization. www.ExpertCreditConsultants.com.