The Nitty Gritty of Business Credit

It so easy for people to pull out a credit card and swipe it when they want to buy, rent or book something; sometimes without ever considering the cost. And it’s nearly impossible to make a purchase online without one. We live in a society where credit matters, that many establishments disfavor accepting an all cash transaction without at least having a credit card on file. Take airlines, car rental places and some hotels for example. Small and mid-size businesses encounter many of these same instances and more, where they need access to credit with suppliers to stock inventory in stores or warehouses, purchase materials for remodels, and ongoing business expenses. So it’s worth getting down to the nitty-gritty of business credit so that you can empower your business to achieve greater results.

Many big businesses have the resources available to sustain the financial needs of the company. Many small businesses do not. Obtaining lines of credit for the small to mid-size business enables the cash flow needs of the day to be met.

Some of the best lines of credit for limited size businesses are revolving in that the line of credit is unsecured, open-ended and not fixed as with installment loans. Basically, this means that if a business is approved for $50,000, the business doesn’t have to access it all at once, or ever access the full amount. The business can use $10,000, $20,000, $30,000, or any amount, knowing that $50,000 is available.

Not so with an installment loan. If the business is approved for $50,000, then the whole $50,000 must be received by the business. With a revolving line of credit, the business is only responsible to pay back the amount used.

Now with business lines of credit the owner falls into one of two categories depending on credit worthiness. There are secured and unsecured lines of credit. Secured business credit requires collateral. The debt is usually paid over a longer period of time and the interest rates are lower. The collateral may consist of the business’s inventory, which can be sold if the borrower defaults on the loan. Unsecured business credit doesn’t require collateral, but the interest rate may be higher because the lender will not have access to the assets if the borrower defaults, and the pay back period is shorter than a secured loan. Also, the amount of credit approved is less than a secured loan, and the credit requirements aren’t as substantial.

Many limited in size businesses get revolving credit to support start-up costs or to fund the daily operations. These lines of credit can be used for buying inventory, purchasing equipment, making repairs, meeting payroll, advertising and social media promotions, and leasing office or warehouse space, or anything the owner can think of; unlike term loans that can only be used for specific purposes approved by the lender.

Revolving credit is much more beneficial to the owner because it’s unsecured. The interest rate is based on a 30-day cycle and not a daily cycle; it is also based on the amount used and not the amount awarded. Revolving credit allows for the business to build credit based on the repayment history. Whereas, with term loans once repaid, the borrower has to reapply for another loan, which ultimately affects the borrowers credit score.

There is a personal guarantee with revolving credit. Not everyone is aware that new start-ups and mid-size business owners are often approved. The criterion isn’t all that extensive. The borrower should have a 720 credit score, no bankruptcies, no foreclosures, no late payments within the past 24 months, and have already have a credit card with a $5,000 limit.

The U.S economy is built on small and mid-sized businesses and getting down to the nitty-gritty of business credit can certainly empower your business to achieve greater results. Apply today and get a funding estimate within 24 hours:




Don’t Retire Early: Retire Rich

Most people think that to retire early means retiring at a younger age than 65, the age set by the Social Security Administration. Some go as far as thinking of retiring as early as 30 years old. Why would anyone want to retire so young? You don’t have to retire early, but you should retire rich.

All people want a happy and fulfilled life and oftentimes a job just isn’t cutting it. There are those who may have worked a multitude of jobs and have drawn the conclusion that working for someone else isn’t for them any longer.

They may be tired of being in a mentally toxic environment for eight hours out of their day, or the thought of not being given room for growth or advancement is disheartening. Some give up because they fail to realize that their true calling isn’t in being an employee.

As always, there are exceptions to the rule. People get laid-off, get sick, decide to travel, or go back to school full-time and cannot continue to work a 9-5 job. Instead of quitting your search for the right job it may be time to discover what real job satisfaction is all about by awakening your entrepreneurial spirit.

Any way you slice it, completely retiring from the work force to sit at home and collect a pension check or living off your spouses income may not be the right answer, especially if you are still physically able to work and don’t have enough saved up for retirement. Becoming a small business owner or an entrepreneur may give you the satisfaction you desire from working. It can open up your creativity to succeed in areas where you’ve been dormant in your current position.

The odds of being successful at business are even greater the older you are. Research dictates that middle age people are two times more likely to establish flourishing companies, mainly because of 6-10 years of industry experience has equipped older adults with prior knowledge and existing skills that are transferrable.

If your skill set doesn’t match your newfound pursuits, you can still learn new skills through education, training and coaching opportunities. Finding a new outlet through business ownership can increase your productivity, keep you fulfilled and contribute financially to your retirement where you alone or with your spouse can retire rich.

The oldest way to get rich is through real estate and it doesn’t have to take a lifetime. You have to buy, develop, and eventually sell the property to acquire wealth. And if you don’t understand how real estate investing works, you can link up with 100 Percent Financed for coaching, eBooks and events on real estate, personal finance, business credit, property management, online businesses and more.

Their business credit card model could be the ideal funding for your new venture that will assist you in your plan to retire rich. Even if you have a limited credit file or credit history, you still can apply without providing the stringent requirements of traditional banks.

Like with all credit, business credit does have certain qualifications for approval:

  • 720 credit score
  • No bankruptcies
  • No foreclosures
  • No late payments in the past 24 months
  • Possession of a credit card with a $5k limit.

Apply today and receive a funding estimate within 24 hours so you can start planning how you are going to retire rich, not early.


Retire Rich: Use Biz Credit to Buy and Hold Real Estate

By Janine H.

An alarming number of, somewhere around 75 million, baby boomers are entering into their retirement years and unfortunately don’t have the financial means to support themselves throughout the rest of their lives. Many did not take retirement into consideration when planning and “doing” their life by not saving for it. A good majority had their faith in pension plans until companies they worked for went under. Regardless, you can retire rich.

Oh, some may very well feel that the good old days consisted of working for a company 30 years, retire, and then be taken care of the rest of their lives. But that’s not obtainable for everyone anymore.

The National Institute on Retirement Security determined that two-thirds of American households between the ages of 55 and 64 have savings about the same or less than their yearly salary. The remaining does not have any money saved up.

What’s worse is how these statistics affect older women. Mainly, because women in this age group have a much shorter work history than their male counterparts. A lot of these women are from back in the day when women stayed home to raise their children and didn’t begin working until their kids were in elementary school. And sometimes the work was menial.

Often it was just enough to bring in extra money to help out here and there with groceries, the kids clothing and household goods. So you can see how having had this lifestyle wouldn’t promise a substantial pension plan if there was one available anyway.

And, as we all know women were not paid the same amount of money as men doing the same job; so that has hindered many women’s ability to save and it has limited the amount of money women could possibly receive through a pension. This same principle is applicable to minorities during that timeframe as well.

What this really equates too is that a good majority of the baby boomers of today will likely be dependent upon Social Security for an income during their remaining years. The amount of money received will be contingent upon the amount of money made over a specific time period. Keep that in mind.

The average payout for Social Security today is around $1,300 per month, roughly $15,600 annually. For some, that will be enough to live off especially if the house is paid for, no medical issues and there aren’t any plans for traveling to see the world.

But if you happen to be a baby boomer and haven’t saved up for your retirement, or have a pension to fall back on, your future really doesn’t have to be bleak. You can create the retirement you want by beginning today with buying and holding real estate.

The simplicity of it is that you buy a good property at a fair or replacement price and add value to it through rehabilitating it and renovating it.

Next, you rent it out to have passive income. With the equity increasing in the property, you take it out and buy more real estate and continue to repeat the process over and over and watch your income grow and grow.

This way, you don’t have to worry as much about being short on an income during your retirement years. And don’t think that you are too old to invest in real estate either because of the remodeling requirements. Any heavy lifting or hard type jobs can be outsourced and so can managing the property.

You really just need to learn some basic investment concepts. You can find free resources at 100 Percent Financed website. There you will find eBooks and other information to help you get started in understanding and buying real estate.

From there, you can begin sorting out how you will personally finance the beginning stages of your new real estate venture. One great way is to get business credit cards with a personal guarantee. Business credit cards are a quick way to get resources for short-term needs since time is not on your side, and at the same time they can increase your business’s purchasing power.

Like with all credit, business credit cards do have certain qualifications for approval:
• 720 credit score
• No bankruptcies
• No foreclosures
• No late payments in the past 24 months
• Possession of a credit card with a $5k limit.

If you know upfront that you don’t meet these qualifications apply anyway. Business Credit Consultants will guide you on what you need to do so that you eventually do get approved. So, don’t just sit by and be one of those baby boomers heading for retirement without the financial means to support themselves. Get up and take control of your future today; ensure those golden years are just that: golden.

Apply today and receive a funding estimate 24 hours later without a hard inquiry hit to your credit file.

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Business Credit Cards: Give Your Business the Advantage it Needs

There are a lot of business owners who want to accelerate the growth of their business, but it’s usually dependent upon having a little bit more ready money. With this, they would be able to advertise more, replace old or buy new equipment, increase their inventory in order to sell more items, etc.

Some business owners take matters into their own hands by funding these expenses from their personal stash. However, using personal credit cards for business ventures is a risky-business since you assume total liability. If your company, God forbid, is ever sued or goes under, you risk losing your personal possessions and the good credit rating that took you years to build.

Now what if there was a way to free up some of that needed money you are currently using to support your business, by matching some of your expenses with items your business is already buying on a regular basis? Well, there is and it is in the form of business credit cards.

In other words, if you dish out $500 cash each week on realty supplies to make repairs on your properties, but now instead you make those same purchases using business credit cards for just one month, that would temporarily free up $2000 cash from your usual operating budget.

Of course, you are responsible to pay the balances on any business credit cards you receive, but that would be over a period of time giving you enough occasion to make a profit from the $2000 utilized on the business credit cards before the first payment is due. Are you seeing how having business credit is to your advantage? Let’s go a little further.

Business credit cards are a pretty darn quick way to get resources for short-term needs and at the same time they can increase your business’s purchasing power. But it has to be used economically and not to go all out on spending sprees just because it is available.

Other advantages include:

•Business owners with a limited credit file or credit history can apply without
providing the stringent requirements of traditional banks.

•It is much easier to make purchases online and make cash withdrawals from these credit lines.

•Bookkeeping becomes simplified with the use of monthly statements and year-end statements to track expenses and pay taxes.

•Unlike installment loans, business credit cards offer discounts and rewards that can be used toward air travel and the like.

•Business credit builds credit. By paying on time and paying more than the monthly minimum fee, incentivizes lenders to increase credit limits and lower interest rates.

Like with all credit, business credit does have certain qualifications for approval:

• 720 credit score
• No bankruptcies
• No foreclosures
• No late payments in the past 24 months
• Possession of a credit card with a $5k limit

Building a good strong business credit report allows you to stop relying on your personal credit to support your business endeavors. It also helps you to qualify for future financing your company may need from traditional lenders.

You can apply today and receive a funding estimate 24 hours later without a hard inquiry hit to your credit file: