Blog - Velocity Lending Solutions

How to Establish and Build Business Credit

Posted by Kris de Leon In Business Credit 0 comment

Whether you’re a startup or established business, building business credit is important because there may come a time when you need to apply for a loan. Without a good credit score, getting a loan at favorable rates and terms may be difficult. At some point, you’ll need access to capital to expand your business, hire more staff, purchase inventory or equipment, and cover any unexpected expenses.

Business credit in a nutshell is the ability of companies to get financing. There are three major business credit bureaus – Dun & Bradstreet, Experian, and Equifax. Please note that Experian and Equifax have business divisions that are separate from personal credit.

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10 Funding Options for Your Ecommerce Business

Posted by Kris de Leon In eCommerce 0 comment

If you want to grow your eCommerce or Amazon business, you’ll need to have access to capital. Whether you need to buy inventory, manage cash flow, invest in profitable advertising campaigns, or cover payroll to keep your valuable employees, having capital enables you to grow your business quickly.

Before looking for funding, you’ll need to consider the following factors:

How soon do you need the money? Some lenders can approve funding within 24 hours, but they tend to be more expensive (i.e. higher interest rates or fees). Other lenders, such as those issuing SBA loans, can take months but they can offer you the best rates and terms.

How much money do you need? The lenders will look at a number of factors when determining how much you qualify for, such as personal and business credit scores, tax returns, cash flow projections, profit & loss statements and more.

What do you plan to use the funds for? Many lenders will ask you this question when applying for funding. The most common reasons include marketing, inventory, equipment and payroll.

If you are clear on the answers to the above 3 questions, here are 10 popular funding options for your eCommerce business.

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Why You Should Never Use Your Personal Credit Card for Business

Posted by Kris de Leon In Business Credit, Personal Credit 0 comment

Never use your personal credit card when making business purchases. One advantage is that many business credit card issues don’t report to the personal credit bureaus so this can actually keep your credit score intact.

For example, there may be times when you’ll need to max out your credit card to purchase inventory or equipment, or ramp up your advertising during your peak season. If you do this on your personal credit card, the card issuer will report this to the major credit bureaus. This will tank your credit score because of your high credit utilization.

However, if you make the same purchase on a business credit card that doesn’t report to the personal credit bureaus, you’ll keep your credit score safe.

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How to Get a Business Line of Credit

Posted by Kris de Leon In Business Line of Credit 0 comment

What is a business line of credit, and how do you get one? What is the difference between a secured and unsecured line of credit? The article below will answer these questions. It’s also important to assess whether you need the line of credit and how it can grow your business.

A business line of credit can function like a business loan. However, the main difference is you can draw from the line of credit up to your maximum limit and have the funds deposited directly into your business checking account. You don’t have to use the entire credit limit, so you only use what you need.

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