October is Financial Planning Month, and financial planning is as important for your business as it is for your personal finances.
Are you thinking about starting a business or are you already a business owner? You will probably need money for your business at some time. So, what do you need to do to prepare for a meeting with a lender to talk about a business loan?
A business plan that answers the important questions – what, why, who, how, when – is important to present to a lender. Showing your knowledge and ability to run the business, and being able to demonstrate how the business will make enough money to pay back the loan is key.
Thinking about the 5 C’s of Credit will also help you prepare for a conversation with a lender. These 5 C’s delineate the information a lender is looking for in a business to determine the creditworthiness.
For more information and resources for your business, visit our Small Business page.
June 27th, 2017 by April Marasco
Are you a small-business owner who’s not getting the love you need from lenders? Are suppliers insisting on terms you find downright unfriendly?
The common denominator may be a poor business credit score. Here are some steps you can take to fix it.
What goes into your business credit score?
Just like a personal credit score, a business credit score measures the level of risk you pose for a lender. Unlike personal credit scores, most of which adhere to the FICO model, business credit scores don’t follow an industry standard.
The three major bureaus — Dun & Bradstreet, Equifax and Experian — use different methods to compile and monitor business credit (more…)
May 15th, 2017 by April Marasco
One of the most important decisions you’ll make when starting a business is choosing the right bank accounts. As an entrepreneur, you’ll want to make sure you don’t mix your personal finances with your business money: If your cash isn’t kept separate, it could be hard to meet IRS record keeping requirements, and that could lead to tax penalties. Opening new accounts in your company’s name is typically a better practice.
Having separate bank accounts could also help limit your personal liability. Say someone were to sue your company; your business assets might be at risk, but your personal assets would likely be protected from legal action.
Here’s a look at three common types of accounts to consider for your company. (more…)