Business Startup Financing and Personal Lines of Credit What is Startup Business FinancingBusiness startup funding or Personal lines of credit which is also known as credit card stacking. The way it works is allows the user to use multiple cash credit cards and credit lines to finance your business or obtain the funding they are looking for to make a big purchase or set funds aside for a rainy day.  In order to maximize the funding amount based on the clients credit file the company will use a variety of resources including obtaining fundings from various sources at the same time. Because many of these sources are cash credit cards this is called credit card stacking. Lenders don’t call credit card stacking by its name because most people have a negative perception about credit cards. Instead, you might see it referred to as an “unsecured business credit line for startups” or “Personal Lines of Credit”.  It is important that you use a professional experienced who can determine the best route for you to obtain the most amount of money at the best rates and terms.The primary advantage is that lenders know which credit cards and lines you’re most likely to qualify ...
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A Merchant Cash Alternative In the previous article about Merchant Cash Advance we discussed the benefits and risks.  The fact is that the Merchant Cash Advance is the only option for many business owners because of their poor personal credit score and the lack of maintaining proper business financial integrity while working on building business credit.  Bounced checks, low business bank account balances is the major influence on deciding how the business is run. Maintaining small business cash flow can be a challenge for many, but how you handle it is the difference between 50% interest or factor rate for repayment and daily withdrawals from your checking account  vs 8-12% interest rate and monthly payments.The choices you make daily is what will determine the success of your business. It takes a few steps to initially provide a path for business success. Whatever business it may be, you are the guru. If you are opening an automotive repair garage, you are most likely an ace mechanic and can handle any situation regarding the repair and maintenance of any car.  If you are opening an Air Conditioning Sales and Service location I can guarantee that you are an expert at keeping everyone ...
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Merchant Cash Advance- Understanding Small businesses far and wide struggle daily to maintain cash flow. The lack of financing available to small business owners is limited.  The big banks don’t understand small business, and typically the finance amounts are not big enough to wet their appetite. This creates a cycle for the business owner because they utilize personal finance like credit cards and Home Equity Lines of Credit and in return overextend themselves on a personal level and ruin their credit. The other obstacle for the new business owner is lack of time in business. Many of the better financing options require 2 years in business. Yet again this creates a struggle for the new entrepreneur because new businesses are in need of cash flow and yet the circle begins with using personal credit and the slide of the credit score.There is an action plan that small business owners can take on along with a financing option that will possibly cure an immediate need. But before I get into that a plan of action you must get under way is building your business credit.  This is the most misunderstood option that business owners fail to work on.  As an accountant ...
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The Final Chapter - Learning to Think Like an underwriter As we have journeyed down this road of understanding the Fix and Flip mortgage we have stressed that all financing approvals are based on risk. It’s important to understand the logic behind the underwriter and how their decisions are calculated. It's not as easy as having a simple checklist and when they check off a certain amount of items the deal is either approved or denied. If it was that simple everyone could be an underwriter and the whole process would be much simpler.First, let’s look at what it takes to be an underwriter. What qualities must they possess,  and what risk methods are used to protect the company and the investors, which is the main focus. For any underwriter an analytical ability is paramount. They must be able to be a detective, and be able to draw conclusions based on the information provided to them to access the risk of a client, and finally decide if the client should be approved or declined. What you need to know is that an underwriter's job is to help the lender approve as many deals as possible, which is the business purpose of ...
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