4 Steps to Better Prepare You and Your Business
Step 1 - Don’t ignore your personal credit. Although there are plenty of options to obtain credit and financing strictly under a business, never ignore the importance of your personal credit score. Start today to improve your score.
Some simple strategies to improve your personal credit score:
- Pay your bills on time
- Don’t close old accounts – the older accounts you have the better
- Don’t use only one credit card – too often people will use one credit card each month to make charges and max out the card
- Check you credit report for inaccuracies
Step 2 - Put your business in compliance with the lending markets. Most small business owners never take the time to put their company in compliance. One of the first things almost every credit grantor will do is a simple compliance check on a credit application. They want to know that you are a real business. Do everything you can to be a real business.
Do simple things such as:
- Have a business phone line
- Answer your business phone in the company name
- Have a physical business address
There are over 2,000 automated and manual checks that credit grantors use to determine a credit approval.
Step 3 - Determine what you need the money for. Take some time to determine exactly what you need the money for in your business. Then write down how much you need, specifics of where you would spend the money and what you would buy.
Putting a plan together is important to accomplish the financing you want.
Step 4 - Don’t focus on only one channel of financing or one bank. There are plenty of options for any business owner. Although the first option may not work, don’t get discouraged. Always have several options ready.
Also, don’t rely only on banks for financing. There are lots of options for businesses when it comes to financing and you need to be open to each of them. Some may be higher interest rates than others, but require less to get approved, so there are trade-offs.
Last, but not least – focus on the goal. The goal of any business is ultimately to provide a service or product at a value that allows the business to make a profit. Focus on your profitability at all times.
Crowd Funding Book by David Gass
8 comments
it is a pleasure to provide my plan for business growth.
Mr.Freddie Manns
I need to know what steps to take to get financing for my business. I understand that you have listed steps to get financing, but this will be my first time so what kind of creditor I need to contact?
Mr.Cass:
When will you be putting your book titled “BUILDING BUSINESS CREDIT FOR SMALL BUSINESS OWNERS” OUT IN THE MARKET ONCE AGAIN?
I AM NOT ABLE TO ACQUIRE YOUR SERVICES AT THIS TIME BUT I AM VERY INTERESTED IN YOUR BOOK.
THANKS AGAIN
RICK FONSECA
I enjoy all your articles, I have learned so much by reading them, If chosen, I am looking foward to learning more about business financing. Business is my life.
Hello David Gass I want to let you know that since I did start to work on my company credit i notice how I been recive credit that i was not sure that i can get on my own i am very glad for every thing that you and your team are doing for me.
thank you.
I also have a question when i became a member you did send me par of ticket to attent the real state seminar on last january but I was not avaible to go ,I would like to know if is the posibility to recive thos ticket for july show.
thak you. reinaldo pena
All the steps are terrific but steps 3 and 4 are usually ignored by many business people who get discouraged and then just stop or do not try to negotiate
Very small catering company three years old, with less than 5,000.00 revenue per year. Goal is to purchase or build a restaurant. Personal credit not good, business credit, I did not know such a Thing existed. Due to the ability to obtain loans or credit due to my personal credit, I have lost out on purchasing existing restaurant that have a proven track record, as such less than 15 days ago, I was in negotiation to buy a beautiful establish restaurant and due to no money, no credit and no loan, I lost the opportunity. Don’t know if my product or situation falls within your venue, but my goals are as a small catering to one day own my own restaurant a Fine Dining Restaurant with Live Jazz Music. Business Plan, EIB, etc. has been establish for over two years. AGain, is there any hope for me…..I am a Veteran that served my Counrty in Viet Nam and even through SBA I was unable to get a loan. again, do I have a chance. I read your online inforamtion and downloaded your bookelts and have called to see if I could get a free business credit assessment, maybe in the future I could be one of your success stories. Thank you.
We have clients in Pakistan who want to borrow money to complete their projects. Please tell us where to find the sources