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The way to get Business Financing in a Tough Credit Market
The credit markets have been tightening going back year and personal credit is becoming a lot more elusive. Now, as part of your, we are needs to visit a tightening on business credit and loans offered by banks. Banks are tightening their standards and dropping more liberal business loan programs as well.

Only a few months ago, BofA offered an express business line of credit program that even entrepreneurs in business just a month or two could qualify for with the right fico scores. They pulled the program within the last quarter. American Express for years has offered a small business Line of Credit program that entrepreneurs could make an application for in addition to their American Express credit cards. The credit line was competitive in the market with interest rates and most small business owners having an American Express charge card were getting approved. The program was pulled in the last quarter.

The closing of great programs including the BofA Express Line of Credit and Amex Business Credit line are signaling the need for small enterprises to find alternative ways to finance their businesses. There are many unconventional methods that a lot of entrepreneurs can use to develop access to capital they will need every once in awhile. Many of these methods include: merchant account advance loan programs, equipment leasing, equipment sale-lease back, A/R Factoring and trade credit (also known as corporate credit or business credit).

Trade credit is the single largest source of lending in the whole planet. It is when one business sells services or products to some other business on credit terms. For example, when Dell Computers sells a laptop to your small business owner, the business enterprise owner is given a choice: pay now with a Mastercard/Visa/Amex charge card, obtain a Dell Computer credit line or apply for a Dell Computer CHARGE CARD. When the small business operator chooses to apply for a Dell Credit Line or Credit Card they are using trade credit. Dell will then offer terms to the applicants who qualify. Terms can include no-interest for 30 days if paid in full, or mortgage loan charged each month a balance is carried and a little monthly payment that must definitely be made on the credit card.

If the business owner has structured their company properly before trying to get the credit, they'll likely receive an approval based solely on the business credit profile, business credit history and how compliant the business is with the business enterprise credit market. If the business is prepared and built some initial business credit before applying with Dell, they will likely get approved regardless of what the personal credit score of the owner looks like. That is True trade credit (corporate credit), when you rely completely on the business' capability to obtain the credit and not simply that of the individual owner or officer of the business. Every entrepreneur should have a business credit profile and score. That includes also being in compliant with the lending market.

A small business credit profile and score ought to be created with all the major business credit reporting agencies, not just one. Additional info &B (Dun and Bradstreet) may be the oldest business credit bureau, although Experian Business and Equifax Business have created very competitive products and services to compete directly with D&B over the last few years. Most credit reporting agencies create a business credit profile and score when companies are accountable to the bureaus the payment history of these clients. The more companies reporting to a small business credit profile, the better. Companies who purchase a business credit file for analysis to determine credit approvals, prefer to see when others have granted credit already. They would prefer to see several credit accounts with the business, whereas with an individual you may find it more difficult to obtain credit when you have plenty of credit accounts.

Most small business owners seeking financing are seeking the money to get something or service. Nearly all time the product or service can be found through a company offering credit terms. Trade credit can be used by household supply stores, marketing companies, printers, graphic artists, internet marketing companies, gasoline stations, equipment companies, auto-dealers, shipping companies, office supply companies, furniture companies and much more.

As well as trade credit alternatively financing option there's merchant account advance loan programs. Although this type of financing can be expensive it is still an excellent option for some businesses. This kind of financing is for businesses with a merchant account charging more than $10,000 monthly on the account. Many merchant cash advance companies will advance around 90 days charges on a merchant account with very little personal credit information necessary to have the loan. The loan is then paid back out of future merchant account activity as a percentage of the quantity charged that month.

Another alternative way to obtain financing is A/R Factoring. If a company has accounts receivable with other businesses with decent history and fico scores, a factoring company will come in and buy the receivables for a discount on the future value. The business enterprise gets money now and the factoring company waits for the invoices to be paid. When they are paid by the customers of the business, the factoring company gets their share and repayment on the advance.

A company can also use leasing as an substitute for finance their business. Many equipment and even software could be leased. There's extremely beneficial to start-up companies and the ones looking for large equipment purchases. The business doesn't have to cover up front for a large ticket item, which than conserves cash for the growth and daily operations of the company.

Small business owners need to get creative when it comes to building a business and finding the financing they need. Using trade credit and other alternative financing options just may help your business steer clear of the obstacles and pitfalls so many have fallen into and lost. For creative solutions for the business financing needs go to http://www.bcscredit.com and obtain a free of charge eBook on Building Business Credit for Business Owners.

Receive the booklet Developing Business Credit [http://www.bcscredit.com] by David Gass - President and Founder of Business Credit Services. It will share with you how more than 10,000 businesses across the nation have achieved over $175 million in combined financing in their business name only, all using his patent-pending system to create corporate credit separate from your own personal credit.

Additionally, you will learn the first steps required to obtaining a business loan, lease, and other lines of credit minus the use of an individual credit check or guarantee.
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