By Bruce Goldwell, Author & Success Coach
I would like to introduce to you Jeff Shick, Money Miners – Loan Broker with over 28 years in the Financial Industry.
If you Google search ‘Credit’ over a BILLION hits appear; search any credit inquiry, and millions of hits return. The problem is not a lack of credit or lenders, it’s asking for a ‘small business loan’. By borrowing from organized banking as a small business, you’ve selected the hardest loans to qualify for with the worst terms for you. Alternatively working with non banking MCA, ACH, & Factoring cash advances, exposes you to the most expensive funding programs in America (36% to over 300% in fees and interest calculated annually). It is time to do something different!
Let’s start at reality; nothing affects your lending costs greater than credit scores. Your ability to clean unwanted negative data from the 3 primary bureaus records has never been stronger than in 2016. The difference in interest rates charged between those with the highest credit scoring (single digit rates) & those with the lowest credit scoring (triple digit rates) has never been greater. The polishing (for lack of a better word) of your 3 credit profiles has never been as important or as possible as 2016. The rewards have never been higher.
Trump everything with Zero% credit
When traditional banking products fail, 75% of applicants and alternative lending sources charge interest and fees that start at 35% and can climb as high as 130%; it’s is not hard to see someone is getting played here. Speaking as someone on the receiving end of many “No’s,” I can tell you the best time to get money from Organized Banking is when you don’t need it. When your cash flow, financials and tax returns all show things are going great and you really don’t need the money, apply then! Apply for business credit without having to personally guarantee that credit. Build your corporate credit score without your personal attachment.Now that we covered help for the top 20% of companies, let’s talk about how to get funding for the rest of us without getting eviscerated in the process. Let’s start with two presuppositions: first, lenders make money from fees and interest combined. Second, credit bureau scoring systems are not designed to reward borrowers with the highest scores. They’re designed to make more profit for their paying members (Banking). The scoring system builds additional profit from the majority of borrowers (80%) whose scores are not the highest by charging them more for the same thing. Why are small business loans so toxic? The small business failure rate is 50% to 80% depending on which study you want to believe. This is why you have to provide reams of financial papers, copies of tax returns and potentially, copies of customer agreements or contracts along with proof of experience, proof of profit and collateral. The inability to provide all this is why most small businesses are turned down for loans. And because this mammoth system of financial access is usually restricted and controlled at every point of entry, most quit here. Read more…..
Jeff is a Member of CEO Space International