One of the reasons that (expensive) alternative loans like merchant cash advances became so popular was because banks dramatically reduced their small business lending after the great recession.
Business credit is an area first-time business owners tend to overlook. If your business sells to other businesses or wants to get credit, it's important to ensure that your business credit information is in good standing.
Unlike personal credit scores (FICO scores) that take years to build up, it typically only takes 3-6 months to build up your business credit score. It helps if you know who will be looking up your business scores because some parties (such as banks and credit unions) have access to more data than others.
Business credit reports/scores are not just used for obtaining business financing. Even if you think your business will never get outside financing, business credit reports/scores can still impact your business.
After all the Congressional testimony about small business, after all the talking heads retire to their New York co-ops, this remains: 99 percent of the small contractors in this country will never get -- or even bid on -- any part of the public work the most recent jobs bill creates.
For too long, small businesses have been struggling to bear the brunt of the recession. Lending has all but dried up, and too many lawmakers are spending more time playing politics than working to pass smart legislation to help them. How do we know small business owners feel this way? We asked them.
Small employers are struggling; lack of demand and weak sales are part of it, but one of the key barriers to their success -- hindering their ability to help remedy the economy's malaise -- is the inaccessibility of credit.
Although Heidi's business was booming, credit for small businesses had dried up and she couldn't get a loan -- that is, until she gave a bank everything she owned and signed her and her husband's life insurance over as collateral.