4 Secret Ways To Get Business Financing
By Jake Song
Like many entrepreneurs who are getting started in their businesses, acquiring funding is very challenging if you don’t understand business credit. However, what’s more difficult is keeping enough money in your business checking account. Before we dive into the bell and whistle, let’s first understand what bank rating is and why it matters.
Here’s the breakdown of the business bank rating.
$1,000 – $3,999
$4,000 – $6,999
$7,000 – $9,999
$10,000 – $39,999
$40,000 – $69,999
$70,000 – $99,999
** Banks want to know that your cash flow is capable of handling business debt on a regular basis**
For example, if your monthly loan payment is $1,000 banks and lenders will like to see at least “low 5” bank rating. Your bank rating is based on your average daily minimum balance over 3 month . Therefore, we at FlyCredit keep roughly around $100,000 in the bank to make sure we are at “High 5” bank rating.
So as a startup business, you want to shoot for at least “Low 5” bank rating.
Follow These Simple 4 Steps To Get Business Funding More
1.Do Not Take More Withdrawals than Deposits.
Often, first-time business owners withdraw money from the account more than the deposits. A bank likes to see CONSISTENT deposits. We at FlyCredit have some business checking accounts that we don’t even touch of making withdrawals.
2. Positive Cash Flow Is The King
At the end of the day, the bank wants to see a positive cash flow of your business. The bank has no interest in dealing with a company that doesn’t thrive. The bank is your friend when you can show a positive cash flow! Positive cash flow enables you to pay your current liabilities and to grow your business through investments in talent, equipment, and inventory.
3. Avoid writing non-sufficient funds (NSF)
Businesses can thrive and go down, and not every business can always have a positive cash flow. However, you can at least avoid a negative balance on your bank account. Out of all-cause, having a non-sufficient fund will hurt your bank score the most. Again, stay away from negative balance!
4. Make all bank documents match exactly with credit reporting agencies
No lending institution is going out of its way to find your missing company information. You MUST make sure all of your business information like name, address, phone number, website, etc are all matching precisely the same way with all other vendors and agencies. Thus, if the bank can not find your information quickly, they will deny your application. Ultimately, CONGRUENCY is the KEY to funding success.
Here was just a short breakdown of business funding secrets. For more FREE information, check out www.fly.credit If you want to talk a business expert advisor, you can also simply book a call with an expert business advisory team.
For any questions, dial 1-800-727-4791 ☎️