Are you looking to get the lowest interest rates you can get on business funding.
Well that's exactly what we're going to talk about during today's training we're going to talk about
exactly what lenders look at to determine risk and determine the interest rates you get. We're going
to talk about the funding programs that offer you the absolute lowest interest rates, we're going to
talk about how to get the lowest interest rates on any kind of funding program you qualify for
I'm going to give you my best tips and tactics along the way to get the most money at the
best terms for your business and if you stick around to the end, I'm going to get you access to
my special guide on 27 killer ways to get money to fund your business we've got a lot to cover,
so let's dive in.
So if you're looking to get the best interest rates on funding there's a lot
of things you need to know, so let's decode it. First of all, what a lot of lenders look at is
risk, and when they determine risk they look at things like how long your business has been in
operation, what kind of actual risk your industry has itself. They're going to look at credit scores
personal and business credit scores, they're going to look at your income how you actually
manage things like your bank account, so these are just some of the many factors that tie into it
beyond fundability. So you want to first make sure your business is just structured the right way
have an actual entity set up preferably a corporation or LLC, make sure you actually
have a business address, a business phone number, professional website, professional email
address. Get a business license if you can, make sure you set up a business bank account
and actually use that as bank references on application for funding. That goes a long way
to helping you get the best interest rates for your business.
Now the next thing you could do to get the best interest rate is make sure you build your business
credit look it's not easy, or it's not hard to do if you follow the right steps, so you want to make
sure you get your DUNS number from Dun & Bradstreet and you can get this at
creditsuite.com/duns at for absolutely no cost, as matter of fact, you can go directly to Dun &
Bradstreet and get it for free as well it takes about 10 to 15 minutes to complete the application,
but it goes a long way to helping you establish credibility for your business.
Then start getting some accounts or reports of the business credit reporting agencies
places like Uline, and Grainger for example will give you credit lines when you have none they
report to the business credit reporting agencies which will help you establish business credit.
So by establishing business credit with Dun & Bradstreet, Equifax, and Experian commercial
you can have a credit profile with a low credit score and lenders look at this to determine how
much money you should get and the interest rates you'll pay, so the key to getting low interest
rates is to make sure you build business credit and pay your bills on time or early to have great
business credit scores so lenders will want to give you the best interest rates out there.
Now of course the longer time that you are in business the better your personal credit scores
are, and the better you manage your bank account the more likely you are to get low interest rates
so make sure that you have more money coming in the bank account every month than going out.
Have a positive ending bank balance at the end of every single month
make sure that you have a lot of deposits not just a few,
make sure you avoid NSF this kind of responsible bank account management will go a long way
to helping you get the best interest rates, but interest rates aren't just based on all
these qualifying factors they're also based on things like for example your industry code.
So do you know what your NAICS code is, well you should so go to naics.com and naics.com you can
actually do a lookup, you can find exactly what your NAICS code is or your industry code is
and make sure you avoid high risk industries. Look, you can easily do a Google search for high
risk NAICS, and you'll get a list from the NAICS system telling you hey these are all
the actual industries that are high risk try to avoid names and indicators that indicate you're
in those industries. That'll go a long way to helping you get the lowest interest rate.
But beyond all this at all cost so it comes down to the type of loan program you're qualifying for,
so the lowest interest rates you're going to get on business funding come from what's called
asset based lending and this quite simply is where you're pledging an asset is collateral
for the debt. So if you have some kind of collateral to offset the lender's
risk that will always give you the lowest interest rates that exist as a matter of fact
if your customers pay you on terms and you have account receivables that'll give you
some of the lowest financing terms that's out there, less than 2% if you have
things like stocks, bonds, 401Ks, IRAs inventory even equipment you can oftentimes use that to
pledge as collateral and get interest rates less than 5%, so the key to low interest rates
when it comes to funding type is to have some kind of asset to offset the lender's risk. This
is called secured financing you're securing the financing with some kind of collateral.
Now beyond that we look at SBA loans, SBA loans are probably the next tier of low interest rate
funding, but it's not just the interest rates that make them so appealing it's the term, so
with SBA loans, not only can you get low interest rates you can get longer terms which help you get
a lot of money and keep your payments very low, but in order to get an SBA loan you need to have
an asset equivalent to the amount of money that you're borrowing you also need to have
things like cash flow verifiable with 2 to 3 years of tax returns, you also need to have good
personal credit and establish business credit. So if you have those things a well-established business
can come in get SBA financing and get low interest rates long terms and very low payments.
Now beyond that we start looking at riskier and more expensive money, and the easier money is to
get the more expensive it's going to be. So if we look at a program like cash flow financing
for example merchant cash advances where you can get money in 72 hours or less just because
you're managing your bank account responsibly, well that's fast easy money you can get it with bad
credit it's unsecured, you don't need to have any kind of an actual asset to secure the lender's risk,
but the trade-off is you're going to pay high interest. Oftentimes that's 10, 20, 30% or higher
interest rates. So the trade-off of fast easy money is that you're going to pay more in interest which
let's be honest, doesn't really matter if you're using the money you get to invest in something
that gives you a really high rate of return especially if you're getting that return quickly,
but keep in mind that the faster easier money is also going to give you the higher interest rates.
So now you know everything you need to know to be able to get the lowest interest rates on business
loans credit lines and credit cards, so how do you actually tap into financing. Well make sure
you grab my free guide at creditsuite.com/27ways to be able to grab our key our key
ingredient to 27 killer ways to get money for your business. Look, a lot of business owners think they
can't get money and they can that is don't know that a lot of the lending programs that are out
there actually exist. This guide at creditsuite.com/27ways will give you everything
you need to know to tap in to get the funding for your business you deserve to get. Now beyond that
also give us a call we'll do a free assessment to tell you all the funding you can qualify for now,
we'll do a fundability check to help you improve the aspects of your business that
lenders look at to help you get the most money at the best terms, and you can get that consultation
by scheduling online at creditsuite.com/consult or giving us a call at 877-600-2487.
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about more cool ways to get money to start and grow your business.