Hello this is Ty Crandall with credit suite in this short video we’re going to dive in
and talk a little bit more about virgin start-up loans so
if you’re just starting a business your about to get information about what
kinda of financing
is actually available for start-up businesses now first we’re going to talk
about this
unsecured financing which is probably the highest loan amounts
um best from among the financing for start-up businesses
now there’s couple different kinds were going to dive into, one has to do with if
you have good
personal credit if you have good personal credit now or guarantor that
does
then you can get unsecured credit cards online that do require
a personal guarantee now there is another form of financing it’s out there
that’s unsecured that if you have good business credit bill
if you establish a good business credit profound score you can get approved for
this
is not based on your personal credit but you so because it’s not based on your
personal credit
you can get approved without a personal guarantee, now when we look at the first
option
you can get 10 to 150,000 dollars using your personal
credit to qualify,
now this accounts don’t report to the consumer reporting agencies they usually
report to the business credit reporting agencies, so
this is like a really nice side benefit not only you can get up to 150,000 grand but you
can also build your business credit to process
and in doing so a few months after you establish your business credit that opens
up
even more funding for you, now you’ve got excellent personal credit open now
um or excellent personal credit now or guarantor that does you have to have open
revolving credit accounts or credit card accounts
with limits no less than $2,000 to get approved, you need to have
less than 3 inquiries the last 6 months on your credit report
and usually you can get approved for about 5 times
whatever your highest credit limit account is now so if you have $10,000
credit card account now in your consumer credit reporting
um you can usually get 50 grand in unsecured financing so it’s usually 5 times
the amount of your highest credit limit account, and usually can get 0%
rates
for you know 6-18 months then there about 5-25% after that
normal credit card rates,
and the lender usually charging up to 9-12% success based
fee on this kind of financing.
Now the other kind of financing is using your business credits so you can start
from scratch,
build a business credit profile in about 4-6 months total time
get to a point where you’re getting 10-15
or 10 to $50,000 limit revolving accounts
that report to the business reporting agencies not to consumer
it takes about 6 months as I said to build, but what’s nice is a personal
credit is not used pre-qualification even start-up you could build
EIN credit and in doing so you could get 10 to $50,000 limit
accounts
of regardless your personal credit so this is different to the last option I
showed you were you have to have good personal credit to get approved.
And approval amounts are equal to the current credit limits
that you have now on your business reports, so again you going to build
your business credit report first but in our experience
you can usually get 5-$10,000 limit business credit store credit card
accounts within about 4 months or less,
so that means your approval limits on these kinda business accounts are
usually going to be about 5-$10,000 per card same kind
of rates 5-25%
you won’t have to pay any kind of fee on these, um because these are just normal
credit cards that are built for your EIN. Now you can also use collateral and get
asset or collateral base financing,
and some of the financing you could use account receivables,
so let’s say you have a bunch of orders you have a bunch of receivables to start your business
but yet you don’t had the financing to fulfil those works well this will be a great
solution,
we’ll see if stocks, bonds or other
securities, so let say you have an investor that does you could use those
as leverage borrow as much as 90% on those sometimes cash in hand can be used
as collateral
um if you have inventory already purchased or you have outstanding
purchase orders
these thing could be used as collateral to borrow against them to get cash,
loans or working capital lines of credit
now you can also use equipment and 401k
as financing you could actually borrow as much as 50% against existing equipment
you own or 100% against existing 401k that you have,
you can even use some commercial real estate or if you’re not a dealer
you can use your car inventory maybe you purchase your inventory 90 working capital
were you could use a floor plan as collateral and get financing against it,
or they have really good low-interest rate long term loans for
insurance
agents using your book a business collateral. Other solutions might include
an AnglePad which is great source for web technology entrepreneurs
there’s a source called Beatspring
were you can get up to $20,000 in start-up funding
for business now, these are more grants
than loans so there’s kinda different options here with grants loans
other sources to look into, there’s a company called first round capital for
investments in the millions so if you have a really
powerful start-up business you could get very high level financing there,
the jumpstart foundry get up to 15 grand and then the launch
actually has competitions where they give out as much the half million
dollars
for brand new start-up business this is some other really good sources for you
so hope you enjoy this video if so make sure you like the video
also make sure you subscribe to our channel where we have a lot more videos
on how to get money for start-up business even 30 to 60 minutes
long
sessions were we walk through really and debt how these types of financing work
to rate
terms how to get approved all those types of things also make sure you click on this
video where will give you access to either a free resource
or easy way to qualify for business financing because these are also tools
and resources that will help you get approved for financing even as a
brand new business
so again this is Ty Crandall thank you very much for taking the time to check out this
video looking forward to seeing you our next video.