Did you know that if you have issues (aka errors or derrogatories) on your credit report that have brought down your credit scores, you can provide documentation to the credit reporting agency and ask for a “Rapid Re-Score.”  So, if you are in the process of trying to get a loan and a low credit score is hindering you, you can submit pertinent information (see below) to the credit reporting agency and request a “Rapid Re-Score” (may be know by different terms at different credit reporting companies).  The “Rapid Re-Score” process can change your credit scores in a matter of several days instead of weeks to months going through normal dispute processes. There is an additional cost involved in the “Rapid Re-Score” (sometime up to several hundred dollars), but the savings you will receive by having a higher credit score will likely repay the cost of the “Rapid Re-Score” several times over.

How does the Rapid Re-score program work? Your Rapid Re-Score request must be faxed, using the appropriate request form of the credit reporting company like Credit Plus, Inc. and include the appropriate documentation (see below). A credit reporting company representative will review the document(s) and then forward it to the requested credit bureaus. Each bureau will verify the documentation and then notify the credit reporting company that their update has been completed. Upon receiving confirmation of the Rapid Re-Score request completion from the respective  bureaus, the credit reporting company will re-pull new credit and advise you to access the updated report and scores.

How long does it take? Though we are unable to guarantee a completion date, the turn-around time will typically be 3 to 5 business days from the time the credit reporting company receives your request. If the bureau rejects the documents you will be promptly notified.  

What types of credit information can be updated? The credit reporting company requires a verifiable document from the creditor and can be used to:
    1.  Remove derogatory information and accounts that were reported in error  
    2.  Update an account that has been paid in full and closed 
    3.  Update the status of a collection  
    4.  Update a balance or paid-in-full status 
    5.  Update an account to show it included in a bankruptcy

What documentation is required? For the bureau to accept Rapid Re-Score requests, all documents:
    1.  MUST be typed on creditor letterhead 
    2.  MUST come from the creditor reporting the account 
    3.  MUST state specifically how the information should be changed
    4.  MUST include the date, complete account number and the name and contact phone 
        number of the creditor

Types of documentation the credit repositories WILL NOT accept are: 
    1.  Universal Data Verification Forms     
    2.  In- store payment receipts {like from the register in Sears or such} 
    3.  Letters without a telephone number or date {for audit purposes}     
    4.  Divorce Decrees 
    5.  Documentation without matching account numbers 
    6.  Documents over 30 days old {other than court documents} 
    7.  Cancelled Checks 
    8.  Bank Statements 
    9.  Payment histories or confirmations 
    10. Western Union or other wire transfer receipts 
    11. Money orders 
    12. Cashier’s check copies 
    13. Hand written letters from ANY source, buyer OR creditor 
    14. HUD sheets/settlement sheets 

In addition, documents from original grantors for debts listed by agencies are frequently rejected by the credit bureaus.

Example:  A bill for Dr. Jones listed by Delmarva Collections. Proof MUST come from Delmarva Collections

Example:  A judgment filed by Tiny Tot Pre-school. Proof of satisfaction of judgment must come from the court.

If you are just starting a business and have no track record, don’t expect to get a business loan to fund your endeavor.  At the startup phase of a new business, you must first sink some equity (yours and possibly other people’s) into your idea to get it off the ground.  After you have placed your own equity (and perhaps some close friends and family members) into the deal, the next most likely place to get funding in the form of equity is from Angel Investors.  
 
Angel Investors are high net-worth individuals who are looking to invest their own money in a business venture for a return on investment.  As opposed to venture capitalists,  which are institutional investors who invest other people’s money, angel investors are a better place to start looking for funding for two main reasons: 
1) there are a lot more potential angels investors out there than venture capitalists and
2) angel investors often don’t have the stringent requirements that venture capital firms have. 
According to the Spectrem Group, there are 980,000 American households with net worth over $5 million and
there are 7.8 million American households with net worth over $1 million. These are the ideal angel investors because they are looking for better returns than they can get from the stock market, which has, in many cases, yielded negative returns over the last 10 years.  Angel investors are more likely to not require that a new concept has been proven like many venture capital firms do and they may be more flexible in the amount of funding they will provide.  Many venture capitalists have minimum investment amounts of $2 million and often new businesses are not ready for this high level of funding.  To get an angel investment, you must understand who they are and how to get them interested in your business venture.  So if you think that an angel investor might be the way to fund your business endeavor, I invite you to view my friend, David Lavisky’s, presentation on Angel Investor Funding Formula.

Effective October 12, 2011, under the Small Business Jobs Act, the SBA has implemented a temporary program—authorized until September 27, 2012—allowing small businesses to refinance eligible fixed assets in its 504 program without requirement of an expansion.  This program provides some changes to the new SBA 504 Refinance Program that will be a big help to small business owners. In short, the changes make it easier for more small business owners to qualify for this extremely helpful program.
Here are the two main highlights:

1.  It’s now possible to use refinance proceeds for itemized business expenses such as salaries, rent, utilities, inventory, paying-down payables, and other obligations of the business. (This has the potential to help kick-start the small business economy and get it back on track.)
2.  Borrowers with loan deferments and/or modifications on their conventionally-financed owner-occupied commercial real estate are now eligible for refinancing as long as they’ve not been past due (more than 30 days) on the terms of their deferment/modification.

If you know someone who should look into the SBA 504 Refi Program, please contact us.

Listen to the interview with Chris Lehnes of Versant Funding who will explain:

1.  What accounts receiveable factoring is and how it works.
2.  What the costs are associated with factoring.
3.  What types of businesses are good candidates for factoring.
4.  How long the process takes.
5.  What a company can use the money for once they start factoring their receivables.
6.  What information a business owner should expect to provide when they apply to a factoring company.

You will also hear about two examples of businesses you have made factoring work for them.

The  Startup Genome Project gathered and analyzed data on over 3200 startup companies
in the tech industry.  The study took 6 months to conduct and they wanted to identify the reasons why some
startups succeed, while others fail.   As expected, the study found that not raising money, or raising too little money, was a key cause for business failure.  With startups tech businesses being some of the most difficult to raise capital for, what are some strategies that the results of the Startup Genome Project would suggest that increase the likelihood of getting funding?
 
1.  Don't Be Afraid to Change Directions

Startups that take major changes in direction once or twice  for the betterment of their product are much more successful. These startups raise 2.5 times more money, have 3.6 times higher customer growth rates, and are
52% LESS likely to scale prematurely than startups that pivot more than 2 times or not at all. 

2.  Don’t Do It Alone

Business teams with just one founder take 3.6 times longer to reach proof of concept stage versus founding teams of two or more.  Lone founders are also 2.3 times less likely to make changes in direction for the betterment of the product. The most successful combination is having one business founder and one technical founder. 

3.  Be Open to Lesson Learned

The most successful startup companies invest in mentors, metrics and education. Startups that have mentors, track performance, and learn from other leaders in their field raise 7 times more money and have 3.5 times
higher customer growth rates. 

4.  Be Ready to Jump in with Two Feet

Founders that only work part-time on their ventures are much less successful. They realize 4 times LESS customer growth and raise 24 times LESS money from investors.