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Business Finance Tips Every Business Owner Should Know

http://midwestcorporatecredit.com/how-to-get-money-for-business/ ..... The Team at Midwest Corporate Credit’ – Providing modern day education and solutions for your contemporary financing needs.Credit card issuers report balances to the credit bureaus once a month.  By making weekly payments rather than monthly payments, a lower credit card balance will be reported on your credit report.

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Business Finance Tips Every Business Owner Should Know

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  1. Business Finance Tips Every Business Owner Should Know

  2. The Team at Midwest Corporate Credit’ – Providing modern day education and solutions for your contemporary financing needs

  3. Business Finance Tips Make credit card payments once a week rather than once a month What is a UCC-1 financing statement and how is it used? Keep real estate and business operations in two separate entities.

  4. Business Finance Tips

  5. Most business loan requests are declined because they are submitted to the wrong bank Know the Three “Cs” of business finance Know thy business credit rating Authorized user accounts and “trade lines for sale” are slowly being phased out

  6. Make credit card payments once a week rather than once a month  • Credit card issuers report balances to the credit bureaus once a month.  By making weekly payments rather than monthly payments, a lower credit card balance will be reported on your credit report.

  7. What is a UCC-1 financing statement and how is it used? A UCC-1 (Universal Commercial Code-1) financing statement is a legal document that a creditor will file with the secretary of state to protect his interest against any pledged collateral that the debtor owns.  A UCC-1 is just like a mortgage except its used for other assets that the business owns instead of real estate.  Some examples of collateral are receivables, vehicles, equipment, etc….  Yes, it’s that simple!

  8. Keep real estate and business operations in two separate entities Keeping your business operations in a different corporate entity than your real estate in which the business runs out of will have multiple benefits:

  9. Most business loan requests are declined because they are submitted to the wrong bank A business owner should know the difference between a commercial bank and a retail bank.   In general, commercial banks are business friendly and will typically have underwriting guidelines that are more liberal. 

  10. Know the Three “Cs” of business finance

  11. Cash • Credit • Collateral Cash: Like the old saying goes “cash is king.” Having liquid cash on hand sends a message to the banker/ underwriter that the company is well capitalized and risk of insolvency is minimal. Credit: We believe that this is the most important of all the “Cs.”  Credit gives the banker/ underwriter a direct look at the business and it’s owner’s financial habits and character.  Past financial history is a good indication of how the borrower will service the current loan request if granted. Collateral:  Having collateral to pledge in exchange for a loan lowers the lender’s risk of loss.   If the loan goes into default, the lender is entitled to repossess the asset that was pledged and liquidate it to recover the loan proceeds.

  12. Know thy business credit rating • Most business owners don’t realize that their business has a credit rating just like they have a FICO score as an individual.  There are several business specific credit bureaus that lenders use to underwrite a business loan request.  Some major bureaus are Dun & Bradstreet, Corporate Experian, and Commercial Equifax.

  13. Authorized user accounts and “trade lines for sale” are slowly being phased out What is an authorized user account?  It is simply a credit account that a family member or a friend owns that they add you on to. 

  14. Midwest Corporate Credit1S280 Summit Ave. Suite E2 Oakbrook Terrace, IL 60181 Phone: 630-376-6063Fax: 630-281-5915Email: Info@MidwestCorporateCredit.comOpen 9:00am to 5:00pm M-F Copyright 2017 Midwest Corporate Credit. All rights reserved • http://midwestcorporatecredit.com/how-to-get-money-for-business/

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