B2B Credit - The Business Credit Building People - Blog

10/13/2008

iBill, Inc (www.iBill.net) is a groundbreaking financing option that will allow any of the 165,000 new small and home-based businesses that are formed each month across the U.S. to start offering consumer financing to their existing and potential customers without any qualifications needed from the business. This is something that has never been offered to businesses of this size and because of that we believe we will see enormous results within just a few short months. iBill has developed an innovative and flexible payment solution for small businesses to offer consumer financing to their customers, making it a win-win situation for both small businesses and their customers. Customers that fit the iBill profile are ones that have: • Lack of funds at the time they want to make the purchase; • Credit cards that have reached their limit; • Interest rates that exceed their ability to pay. • Want to pay over time Small businesses that fit the iBill profile want to: • Take advantage of every potential sales lead; • Maximize their advertising dollar by converting more leads; • Up-sell their customers. The key to the whole program is that iBill is not financially backed by an financial institution, which allows iBill to offer a drastically lower interest rate on the amount financed to the consumer. iBill differentiates itself from large finance companies by allowing small / home based businesses an immediate method to increase their business by up to 55% through short-term financing. Opposed to financial institutions and credit cards that lend money for long-term loans at debilitating interest rates, iBill creates greater purchasing power for those who are otherwise unable to buy. Customers pay iBill directly, which allows for less risk of non-payment from customer to business. There are no set-up fees and no interest fees required by the small business for using iBill's services. A 7.9% interest rate to the customer makes it affordable and convenient. Once they become iBill members, smaller businesses generate more sales, have a steady cash flow, and have a larger presence because they offer financing. Cornering the market on non-institution backed financing stimulates the suffering economy by allowing the small business owner the financial security to stay in business and flourish. visit iBill at http://www.iBill.net

9/18/2008

Many small business owners find that one of their most difficult tasks is finding the money to operate their businesses. Sooner or later most seek to obtain a small business loan. Clinching the loan deal requires demonstrating that providing you with a small business loan is a low-risk proposition. The most important task to obtain a small business loan is preparing a business plan. When evaluating your loan application, most lenders will look at your personal credit history, business plan, experience, education, and the feasibility of the business you are starting or expanding. A well-written business plan can make or break the deal, as it is the document that will provide the answers to most of the questions that lending institutions ask: • How much money do you need? Accuracy is important, so request enough money for your foreseeable needs – especially if you are starting a new business. • What do you plan to do with the money? Lenders will want to see a detailed accounting of the planned use for every dollar requested. For example, you may need the funds for operations (marketing, payroll, rent, etc.), purchasing assets (equipment, real estate, etc.), or to pay off business debts. • How do you plan to repay the loan? Use your financial statements and cash flow projections to convince the lender that you will be able to repay the loan through the expected long-term profitability of your business. Demonstrate how this small business loan will help you “get your business to the next level.” • What will you do if you don’t get the loan? Make it clear that you have a deep belief in your business and business plan, and you will keep trying lender after lender until you succeed in obtaining the funds you need to get your business moving. Starting and running a small business requires a great degree of fortitude. Exude confidence. Let lenders know that you have a well-thought-out plan and know what’s best for your business. If a lender turns down your request for a loan, ask why, learn from the answer, and then use this information as you move on to try other lenders.

8/20/2008

Article from The New York Times Small Business section:
Problems, We've Got Problems
Article by Paul B. Brown
Published August 18, 2008 New York Times Small Business section

Summary: A survey of 3,530 small business owners conducted by the National Federation of Independent Business and Wells Fargo, found that for the first time the biggest problem facing small businesses was the 'expense of being in business'. Traditionally the high cost of health care is the number 1 concern of small business owners, but this year the rising costs of doing business concerned most business owners.

"For four years, the economy provided a good, stable foundation for small-business owners to do business, but as it started to take a negative turn over the last several months, they felt the effects of rising costs of doing business...As the economic outcome remains uncertain, small business owners are searching for innovative ways to reduce expenses and increase sales." Bruce D. Phillips, senior fellow at the business federation's Research Foundation.

To read the full article click here

8/20/2008

Article from The New York Times business section:
Higher Costs Are Taking a Toll on Business
Article by Michael M. Grynbaum and Peter S. Goodman
Published August 19, 2008 New York Times Business Section

Summary: The articles premise is based on data released from a survey by the Labor Department which highlights that rising prices have infiltrated much of the economy, now both businesses and consumers are being forced to pay higher prices for products or services.

"Prices for goods purchased by American businesses surged more than expected in July and have jumped by nearly 10 percent over the last year - sharpest increase since 1981"

"The consumer is either going to get smacked around by inflation or a sagging economy. If you're someone who depends on a paycheck, neither one helps you very much." Jared Bernstein, senior economist at the labor-oriented Economic Policy Institute in Washington.

"Businesses have been absorbing some of the higher costs themselves while passing on much of the increase to consumers, intesifying the strain on households just as joblessness expands and spending power shrinks."

To read the complete article click here

8/13/2008

Three people every business owner should know.

Statistics have shown us that nearly 6 in 10 new businesses will fail within the first 5 years of business. Start ups fail for many reasons: poor financial management, failure to plan properly, lack of good marketing, to name just a few reasons. After all, initially someone goes into business to provide a specific service or product, not to know how to run a business.

A common mistake made by many business owners is not seeking out the advice of experienced professionals, because they are not sure where to go or what they will need. Or they think that cost associated with seeking out an advisor is going to be too expensive. However, a few dollars invested in working with experienced business advisors each year is invaluable and could save you and your business thousands of dollars in the long run. Choosing the right advisor is extremely important, so you will want to spend some time researching the best fit for you, and your business.

As a business owner your closest advisor should be your accountant. Seek out an accountant who is not only a good fit for your business, but also someone you get along with and trust. A good accountant is generally a great resource for any business, especially on providing advice and assistance on all aspects of your businesses financial management. An accountant can be extremely helpful in setting up your business financials in order to maximize your tax advantages. How your business financials are put together can greatly help your business secure loans, it will do your business no justice if your banker is confused by your financials.

Communicate with your accountant, and keep them well versed in most aspects of your business, and not just limited to doing your taxes. A good accountant is someone who will be able to help you steer your business in the right direction. Your accountant should be able to recognize your businesses strengths and weaknesses, and help you determine any potential financial problems or any potential opportunities.

Plan to meet with your accountant at least once a financial quarter to discuss your businesses progress.

Not all accountants are alike, so make sure to choose one that specializes in helping new businesses, and capable of growing with your business. It is extremely important that the accountant fit your needs, qualified, experienced, and is able to communicate directly with you.

Your next closest advisor as a business owner should be the personal bankers at your local banks. You should have multiple advisors when it comes to banking and lending. Knowing several of the personal bankers where you live, can provide another resource of invaluable information for any small business. Your personal bankers can provide you with valuable advice on experiences they have had with other small business owners.

Use your personal banker to bounce ideas off of when in the early stages of developing your business, for instance, you can have them look over your business plan and point out some potential problems with your plan. Even if your banker is unable to assist you and your financial needs, they can probably suggest to you the next best alternative financial solution.

Third, bring a lawyer into the mix. Trust me the advantages of having a lawyer greatly out way the disadvantages not having one. Having a lawyer give your business expert legal advice can end up saving your business thousands of dollars. Use their legal knowledge to set up any legal agreements your business has or is considering undertaking. All documents that are going to be between you, other businesses, or customers should be reviewed by a lawyer to ensure your best interest is protected.

Always have the best interest of you and your business in mind when choosing the right advisors to assist in the growth of your business. Never base your decisions on friendship, family, or ease of use. Shop around to find advisors who are empathic, honest, experienced, well qualified, and available to assist your needs as a business owner.

A good advisor brings with them an outside perspective, and can think about your business more objectively. Having objective input into your business, may help recognize small problems early protecting your business from crippling mistakes.

8/11/2008

Yahoo News Business Article:
Federal Reserve Finds Deepening Credit Crisis
Article written byMartin Crutsinger, AP Economics Writer
Posted August 11, 2008

Summary: The Federal Reserve reported Monday the findings from a July survey of banks and other lending institutions. The new survey has found that a majority of banks have significantly tightened their lending standards across the board. Changes in lending standards was initiated because of the subprime mortgage market, but has quickly affected and influenced other loans types offered by lenders.

"More banks are tightening lending standards on home mortgages and other consumer and business loans as deepening credit crisis exerts a heavier toll on the economy. The Federal Reserve said Monday the percentage of banks reporting tighter lending standards rose across various loan types in its July survey...In April...lending standards was already near historic highs"

(July's survey) "The survey found that most banks were reporting tighter lending standards across the broad swath of consumer and business loans over the past three months...For credit cards, the percentage of domestic banks reporting tighter lending standards was about 65 percent, more than double the 30 percent who reported they were tightening lending standards for credit cards three months ago."

"David Wyss, chief economist of Standard & Poor's in New York, said the tighter lending standards reflect the huge loan losses that banks have already suffered. Those losses have depleted the capital they need as reserves against future losses and made it more difficult for the banks to sell their mortgages and other loans as asset-backed securities, a process that provides them with money to make new loans."

To read the full article click here

8/6/2008

Article posted on Reuters Business & Finance section August 3, 2008
Reporting by Robert Macmillan, editing by Martin Golan

Summary: Mr. Roubini is reminding Americans that even with the government bail out of major banks, our economy is still working itself out. We are in a darwinian state of the economy, only the big and strong banks will probably survive, but banking on the local level will drastically change. Because of the faultering of local community banks and government bailouts of larger banks, the banking industry will be more conservative in their lending practices.

"The United States is in the second inning of a recession that will last for at least 18 months and help kill off hundreds of banks, influential economist and New York University Professor Nouriel Roubini told Barron's in Sunday's edition."

"As for the banks that will go bankrupt, they will include community banks that finance homes, stores, downtown areas, commercial real estate and other mainstays of U.S. towns and cities," Roubini said.

""Nouriel stressed that he is 'quite bullish' about the state of the global economy and that he is positive about the medium and long term"

To read complete article click here

7/30/2008

BusinessWeek article:
Busting the 'Free Money' Myth
Searching for a government grant or no-interest loan to start a business? Don't waste your time
Article by Kerry Miller from February 27, 2008 BusinessWeek

"Still, the myth of abundant 'free money' to start a small business has stubbornly defied debunking for decades"

Summary: Article talks about the common myth being perpetuated that if you have a business or a good idea for a business there is money available. There is funding available for businesses its just not as available as some would have you think, ultimately you will have to be able to prove that you are a low risk applicant to the lenders.

"It's sort of a running joke among small-business assistance programs...The idea that there's just somebody standing around to give you $100,000 and if you don't pay it back it's not a big deal? That's just not true...We spend a lot of time popping that bubble for people" Allan Adams - State Director of Georgia Small Business Development Center (SBDC)

"The reality of the situation can be a hard pill for callers to swallow...A lot of people get agitated - they just know there's someone, somewhere who knows about these grants...You have to resist the temptation to say, 'You know, if there was free money out there, I would have grabbed it long before you called" Will Vehrs - Virginia Department of Business Assistance

To read full article click here: BusinessWeek

7/29/2008

(PRWEB) July 30, 2008 -- B2B Credit, Inc., a financial services firm specializing in helping new business owners build business credit, has partnered with iBill Inc., to offer small business financing to B2B's customers. Through this new partnership, B2B Credit will be able to offer their business credit building program as well as shelf corporations and business plans to people who might not have the funds available to start the program.

"We're very excited to have iBill as a tool we can use to offer small business financing to those who want to take full advantage of our programs and the services we offer," explains President and CEO Jonas Brown, "and we anticipate that our sales will grow by 40 to 45% because of this option we can now extend to our potential customers."

About iBill
iBill, Inc. has pioneered the next generation of financing options. iBill is a rapidly growing company helping to connect merchants with customers by allowing any small business to offer financing to their potential customers. iBill is an attractive payment solution for consumers and merchants alike. iBill, Inc., is headquartered in Aurora, Colorado. For more information, visit http://www.iBill.net.

About B2B Credit
B2B Credit, Inc., http://www.B2Bcredit.com, an Aurora, CO based company, was founded to help people realize their business ownership dreams. B2B specializes in helping new business owners build business credit and a positive business credit history without affecting or using their personal credit, being exposed to the risks of personal guarantees, or paying thousands of dollars. Incorporated in 2004, B2B Credit currently serves a client base that reaches over 43 states. For more information on B2B Credit, Inc.’s business credit programs or small business financing options.

7/28/2008

NY Times Article:
Worried Banks Sharply Reduce Business Loans
Article by Peter Goodman from July 28, 2008 NY Times

Summary: Article states that because of past indiscriminate lending by banks in the mortgage industry the pinch is being felt across all areas of the lending market. Even well established profitable small businesses who were once welcomed customers to bankers, are now being turned away because of more cautious and scrutinized lending.

NY TIMES 7/28/2008 - Banks struggling to recover from multibillion-dollar losses on real estate are curtailing loans to American businesses, depriving even healthy companies of money for expansion and hiring.

"Wachovia, which lost $8.9 billion in the second quarter...confirmed that it has been reducing lending in troubled are as of the economy. We've got industries that we consider to be stressed industries, and we're looking at those a lot harder," said Carlos Evans, a wholesale banking executive for Wachovia, listing as examples housing construction, building products and distributors for those goods.

To read the whole article click here NY Times

7/22/2008

An increasing number of customers are choosing to purchase a “shelf corporation” rather than self-incorporating. A shelf company, otherwise known as an “aged company,” is an incorporated business that has had little or no business activity.

Purchasing and utilizing a shelf corporation can allow you to:
•    Shorten the lead time for incorporating your business
•    Be able to bid or present your business in an arena where candidate companies are required to have been in existence for a stated minimum period of time
•    Have the immediate appearance of corporate longevity
•    Enjoy increased access to investment opportunities
•    Experience fewer limitations when applying for corporate credit

B2B has a variety of shelf corporations available for immediate purchase. For more information, visit the “aged corporation” section of our website at https://www.b2bcredit.com/aged_overview.aspx.

Please list any questions or comments you may have about this subject.

7/21/2008

Many business owners make the mistake of using their personal credit to fund their businesses. Here are the top 10 reasons why establishing business credit is a better idea.
The old adage that it 'takes money to make money' is true

Across the country, the top 10 reasons to establish business credit are:

1.   Reduce Personal Liability and Risk. Establishing separate business credit reduces the business owner's personal liability for the company's financial commitments.
2.   Avoid Affecting or Using Personal Credit. Using personal credit for business purposes can negatively impact the personal credit and even decrease the FICO score.
3.   Obtain the Funds to Build and Grow a Start-Up Business. Business credit can turn a vision into reality.
4.   Receive Needed Funds to Expand and Support an Existing Business. Businesses don't need to be held back by a lack of resources.
5.   Qualify for Bank Financing. For many companies this is the ultimate goal.
6.   Save Thousands of Dollars. Solid credit can enable an organization to qualify for lower rates on loans and leases.
7.   Create Credibility for the Business. Become a better candidate for business loans, leases, partnerships and government contracts.
8.   Establish Relationships with Major Suppliers. Many only work with companies that have established credit and an acceptable Paydex score.
9.   Manage Cash Flow. Businesses with long accounts receivable cycles find this particularly useful.
10.   Get a Paydex Score of 80 or Better. This is the benchmark for banks, an "A" credit rating.