Key Takeaways:

1. Business credit is not the same as personal credit—they’re based on different factors and use separate EINs.
2. It’s never too early to initiate building your business credit rating. The sooner you start, the better.
3. Building business credit takes time and effort. You must be consistent and strategic about it for months or even years.
4. Paying bills on time is just one aspect of having a good business credit score. You also need to manage debt responsibly and show a reliable income source.
5. Taking out loans can help improve your business credit rating if you make the payments on time and in full and keep your available credit limit manageable.
6. Being in business for long does not guarantee a good credit rating—several other factors are considered when assessing your score.

A good credit rating matters when running a business, and having one can ease up loans. A high credit score can help you get loans at a lower interest rate, lease office space, and get approved for other credit products. Conversely, a low credit score can hurt your chances of securing funding and doing business with other companies.

7 Figures Funding will dispel some myths about business credit and give you the facts.

Myth #1: It’s the Same as Personal Credit

New business owners sometimes need to realize that business and personal credit are different.

Fact

Business credit is based on your company’s performance, while personal credit is based on an individual’s financial history. Your business must have a separate EIN (Employer Identification Number) to establish a credit profile.

Personal and business credit are two different things. They may be used for similar purposes, such as getting a loan or renting office space, but ultimately, they’re separate.

Myth #2: It’s Not Necessary to Build Credit Score Until You Need it

Some business owners think they only need to establish business credit once they need it.

Fact

Building a credit score is ongoing and should be started long before you need it. Whether you’re looking to buy a house or car in the future, opening a new account and using it responsibly now can help ensure you have a good credit score when the time comes. Paying bills on time and keeping low balances are essential to building a good credit score.

Myth #3: Building Business Credit is Easy and Quick

Another false assumption is that building business credit is easy, fast, and won’t take much effort.

Fact

Establishing business credit takes time and dedication. You must build a solid financial foundation by making timely payments to vendors and lenders, who will report the payments to the credit bureaus. It’s also essential to pay your bills on time every time — to begin making an impact with creditors.

It can take up to six months for your efforts to start showing in your reports, so it pays off to remain consistent.

Myth #4: By Paying on Time Will Offer Good Credit Scores

Most business owners believe that paying back on time impacts business credit positively.

Fact

Although this is partially true, paying back on time positively impacts your business credit rating. Still, it is only part of the equation. Creditors will also consider how much you owe and your payment history when determining whether you are a reasonable risk for lending.

You need to demonstrate that you have a reliable source of income and manage debt responsibly. To improve your credit rating, consider paying before the due date, asking for a credit line increase, and never max out your available credit limit.

Myth #5: Getting a Business Loan Will Hurt My Business Credit Score

It’s thought that taking out business loans can negatively impact the business credit rating.

Fact

Getting a loan can help you improve your business credit rating if you make the payments on time and in full. The only way that taking out a loan could negatively impact your score will be if you miss multiple payments or default on the loan altogether.

In addition to paying off the loan as scheduled, it is also important to remember that lenders consider a few things. They consider the amount of debt and the time since it was taken out when considering whether or not to grant new loans. That means short-term loans can help improve your business credit rating, provided the payments are made on time.

The key is using loans responsibly and keeping debt manageable, so lenders see you as a reliable borrower. All these factors combine to ensure that taking out a loan won’t hurt your business credit score but could help it in the long run.

Myth #6: Being in Business for Several Years Means a Good Credit Rating

Business owners sometimes also assume that being in business for a long time means having a good credit rating.

Fact

Being in business for a long does not guarantee a good credit rating. Several other factors, like timely payment of bills, debt levels, and repayment history, are considered when assessing your credit rating.

Investors may refuse business funding based on business credit. So even if you have been running your company for years without defaults or late payments. It is still essential to check your credit rating periodically to ensure everything is in order.

Also Read: 7 Startup Funding Mistakes To Avoid: How To Secure The Money You Need

Conclusion

Business owners need to understand the myths regarding business credit to make informed decisions regarding financing their enterprise. Knowing your credit rating and taking steps to maintain a good score will help you access funds and secure the best terms when seeking business funding. It, in turn, will ensure that your business has the resources it needs to succeed and grow.

By staying on top of your credit rating and following sound financial principles, you can ensure that this critical component of your company’s financial health remains strong.

Secure Business Funding in New York, NY

suppose you’re an entrepreneur or small business owner in New York, NY. In that case, 7 Figures Funding can help you secure the best business funding options. Our company provides an excellent opportunity for those who are fed up with typical financing methods. Instead, we offer 0% credit lines without the need for collateral. It gives your business a chance to experience tremendous growth anywhere in the U.S. Our systemic approach has helped thousands of companies across the U.S. reach their desired objectives.

Contact us and get started today!

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Key Takeaways:

• Before talking to investors, conduct extensive research on them.
• It’s important to remember that investors are looking for ideas and solutions.
• Engage in business conversations and build rapport with investors by showing interest in their business ideas and strategies.
• Investors have likely put money into other business ventures, which can provide insight into their business strategies.
• A business funding company can provide valuable assistance with the initial steps of preparing business proposals, negotiating contracts, and connecting with potential investors.

Talking to investors can be daunting whether you’re just starting and need investment or you own a more established company looking for growth capital.

But if you want to achieve business success, it’s essential to develop a strong connection with potential investors. It’s also vital to realize your options with the help of a business funding company to make more informed decisions.

However, to help you realize an investor’s necessity, let’s discuss the various ways to develop a strong connection with them and secure optimal funds for your business.

How To Talk to Investors?

Get To Know Them Better.

Before talking to investors, conduct extensive research on them. It’s essential to know investors before discussing business opportunities with them. Enquire about what they bring to the table and assess whether their ideas align with yours. Also, familiarize yourself with the company’s portfolio and analyze what you can learn.

Additionally, investigate the types of investments they make so that you can come up with more realistic expectations for your business funding proposals.

Be Concise and Clear.

When attempting to talk to investors and develop a connection, it’s essential to keep your business ideas concise and clear. Explain the business opportunity in simple language that any investor can understand. Also, focus on the core aspects of your business, such as its competitive advantage, target market, and revenue model.

Start With the Background First.

When talking to investors, start by introducing yourself and explaining the background of your business. Include the business’s industry and the target market or customer base you plan on serving. This will give a good impression of you and your business and build trust with the potential investor.

Sell Your Idea. Not The Product.

It’s easy to get caught up in the details of your business. Still, it’s important to remember that investors are looking for ideas and solutions.

Therefore, talk about the business concept rather than focusing on specific features or products. Give a brief overview of what sets your business apart from its competitors and what value it will bring to customers.

Build Trust.

Investors want to know that their money is going to a business that has potential. They need to feel confident in their business acumen and ability to execute the business plan. Demonstrate this by discussing critical milestones or successes you’ve achieved with other projects and any industry awards or recognitions you’ve received.

Explain Funding Strategies.

It is also essential to explain how you intend to use the funds raised from investors for your business. Be specific about the funding strategies – where the funds will be allocated, such as marketing, product development, hiring new team members, etc. It helps them understand your goals and how they directly benefit from investing in your business.

Find Out What Caught Their Eye.

Investors consider thousands of ideas every year. Learn what has caught the attention of your potential investor and why they decided to invest in that business. It gives you an idea of the types of business ideas they are interested in so you can adjust your pitch accordingly.

Create A Business Plan

A business plan helps investors get an overview of your business’s goals and strategies and its financial projections.

A comprehensive business plan should include all the information about the market, target customers, competitive landscape, management team, product or service offerings, finances, and funding needs.

Also, Discuss the Downsides.

Investors appreciate business owners who are up-front about potential risks and can explain how they plan to mitigate them. According to statistics, about 20% of new businesses fail in their first year. A good investor knows this, and it will be evident if you avoid sharing the risks or don’t understand them.

Be Prepared to Answer Their Questions.

When speaking to investors, be ready to answer any questions they may have. Start by researching the investor’s business and experience in the industry so you can provide detailed answers that show your knowledge of their business.

Find Common Ground.

It’s essential to find common ground with investors to build trust. Look for areas in which you are interested, such as business trends or industry news, and share your thoughts on those topics. This will help the conversation flow easily and potentially lead to business opportunities.

Ask Them About Their Past Investments.

Investors have likely put money into other business ventures, which can provide insight into their business strategies. Asking questions about past investments and companies they’ve worked with is a great way to gain perspective on what works for them.

Things To Consider Before Choosing Investors for Your Business

• Do your research: Take the time to dive into the portfolio of potential investors, looking at what types of businesses they’ve invested in and how successful those investments have been.
• Understand their business model: Researching an investor’s business model can help you understand whether or not they share similar business values as yourself.
• Determine funding strategies: Understand an investor’s funding strategies and any associated timeline expectations.
• Ask for references: You must ask an investor for references from companies they have previously worked with. Speak with these companies about their experience working with the investor and ensure it aligns with your business goals.

Here’s some information you want to read about fake investors to steer clear of any potential hurdles.

Benefits Of Having a Strong Relationship with Investors

Having a strong relationship with investors is essential for business success. Investors’ expertise, business acumen, and funding can significantly benefit your businesses. Investors often have more business experience, which can be tapped into to develop better business strategies and utilize additional funding opportunities.

How Can a Business Funding Company Help You Raise Funds?

A business funding company can provide valuable assistance when looking for investors. They can help with the initial steps of preparing business proposals, negotiating contracts, and connecting with potential investors.

Getting professional assistance from a business funding company will ensure you take all the necessary steps to secure the funds you need.

Indeed, you wouldn’t want to appear unprofessional when making a pitch to potential investors. A business funding company can help by providing the necessary guidance and support to ensure you make a good impression when talking to investors.

Moreover, a business funding company can craft the most lucrative business funding strategies. With their knowledge of different sources of capital, they can develop an effective plan tailored to your business goals and objectives.

Finally, business funding companies have a network of contacts with key players in the investment world, which can be beneficial in connecting with potential investors.

By utilizing their connections and expertise, business funding companies will secure better deals for entrepreneurs looking to raise funds for their business venture.

7 Figures Funding provides funding opportunities to entrepreneurs and businesses in Brooklyn, NY, so they can grow and thrive. Get started today to realize your financing options!

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Managing your money wisely is more important than ever in today’s competitive and ever-expanding business landscape. Knowing how to track your expenses and make sound financial decisions is key to success.

There are several ways to manage business money, and the proper method for you will be based on your specific needs. You can consult a funding company should you need additional business finances. Let’s discuss how you can manage money professionally and budget the best way possible.

Ways To Achieve Better Money Management

Create A Budget

The initial step for better money management is creating a budget or budgeting. This will help you track your expenses and income to make informed financial decisions.

When budgeting, include all the sources of income and all types of expenses. This includes fixed costs like rent or mortgage payments and variable costs like transportation and food.

If you’re unsure where to start, many budgeting apps and software programs are available to help you get started. You can also find helpful templates online.

Use The Budget

Review it regularly and make changes as needed. This will help ensure that you’re always aware of your financial situation and make the best possible decisions for your business.

Determine Your Financial Goals

What does your business want to achieve? Do you want to grow it and eventually sell it? Or do you want to keep it small and manageable?

Your financial goals will significantly impact how you manage your money. For instance, if you’re trying to save money to buy a new property, you’ll need to be careful about your spending.

In contrast, if you want to grow your business, you may need to invest more money in marketing or product development.

Setting realistic goals is essential to make informed decisions about where to allocate your resources.

Ensure You’re Paying the Best Prices

Paying attention to the prices you’re charged for goods and services is essential in any business. Make sure you’re getting the best possible deals by shopping around, negotiating with suppliers, and taking advantage of any discounts or loyalty programs available.

Keep Track of Your Receipts and Expenses.

A sound system for tracking receipts and expenses is essential for any business. This will help you remain organized and on top of your finances. There are many apps and software programs available that can help with this.

Making Payments on Time.

Paying your bills and making other payments on time is crucial for maintaining a good credit rating and avoiding late fees. Set up reminders for yourself or use an automated payment system to ensure you always pay on time.

Save Money Where You Can

Look for ways to cut costs and save money wherever possible. This could include negotiating better rates with suppliers, switching to cheaper energy providers, or downsizing your office space.

Consider Using a Money Management App.

A money management app helps you keep track of your spending, set budgets, and stay on top of your finances. Some apps even offer features like automated bill payments and real-time spending alerts.

Contribute To Savings Accounts

Make sure you contribute to a monthly savings account, even if it’s just a small amount. This will help you build up a cushion of funds you can tap into for unexpected expenses or emergencies.

Limit Credit Card Usage

Credit cards can help manage your finances, but they also are a source of debt if you’re not careful. Try using your credit card only to purchase the things you can afford to pay for within a month.

Things To Consider for Managing Money for Your Business

There are certain things you should take into account before you start managing money for your business:

Your Business Goals

What are your short-term and long-term goals for your business? A clear understanding of your goals will help you make better financial decisions for your business.

Your Tax Obligations

As a business owner, you have specific tax obligations. Make sure you understand your tax obligations and plan accordingly.

Your Funding Needs

How much money does your business need to operate? Do you need funding to grow your business? Answering these questions will determine how much funding money you need to manage and where you will get the funding from.

Your Financial Situation

Look at your financial situation, including your income, expenses, and debts. This gives you an idea of where your business financially stands and where you need to focus on improving your finances.

Your Risk Tolerance

How much risk are you willing to take with your business finances? This is an important consideration when making investment decisions or choosing funding options for your business.

How Can a Funding Company Help Your Business Startup?

Starting a business is a risky endeavor. There’s no guarantee that your business will be successful, no matter how well you plan or how talented you and your team are. That’s why you must have a solid financial foundation before you launch your business.

One way to ensure your business has the funding it needs to grow is to work with a funding company. A funding company can provide the capital you need to get your business going.

Related: How to Obtain Funding for a Business with bad credit.

In addition, they can help you manage your finances and guide you on how to best use your money to grow your business.

A funding company can also help you secure additional funding if needed. They can connect you with investors and help you get the financing you need to grow your business.

Using A Funding Company’s Money Management App

Money management apps are great for keeping track of your spending and budgeting. They allow you to see where your money is being spent so you can make informed decisions about using it. The app will help you stay on top of your finances to ensure that you make the most of your money.

Managing your money will help you gain several benefits for your business’s longevity. But it’s essential to choose a reputable funding company with a good track record in case you require additional financial assistance.

7 Figures Funding provides funding opportunities to entrepreneurs and businesses in Fort Worth, TX, so that they can grow and thrive. Our smart money manager app will help you keep track of all business finances in a single place. Get started today to realize your financing options!

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Key Takeaways:

1. Small businesses are expected to grow in 2023.
2. 2023 is a great time to start a business because the economy is expected to rebound.
3. There are several business ideas with reasonable income to consider in 2023, such as food delivery service.
4. There are several ways to finance your business, including bank loans, 0% interest credit cards, and private investors. Consult with a professional funding service to determine the best option for your business.

According to SBA, in 2017, there were 28.8 million small businesses in the country. But that number sharply rose to 31.7 million by 2022.

Before taking the plunge into entrepreneurship, you need to consider several things. But suppose you’re feeling motivated and excited about the possibilities. In that case, it might be the right time to start planning for your business in 2023.

7 Figures Funding will outline why now might be a good time to start your business. We’ll also suggest some of the best small business ideas with high growth potential. So, read if you’re ready to take control of your future and make your dreams a reality!

Why is 2023 the Right Time for Small Businesses?

As we approach the new year, it’s a perfect time to start planning your next big move. And if you’ve been thinking about starting a small business, there are plenty of reasons why 2023 is the right time to do it. Here are some of the few:

1. Faster Communication Via Digital Technology

Communication is vital in business; digital technology has made it easier and faster than ever to connect with clients and customers worldwide. You can easily connect with anyone, anytime, anywhere, with a cellphone.

2. Small Businesses are Thriving

Currently, over 99% of all companies in the US are small businesses. This statistic shows that small businesses are growing despite the odds.

3. Baby Boomers are Retiring

Millions of baby boomers retire each year after the pandemic. It presents an excellent opportunity for businesses to take their market share. As these baby boomers retire, they will seek services to make their lives easier. You will have a loyal customer base if you can provide such services.

4. You Can Be Your Boss

One of the best things about starting a business is that you can be your boss. You get to make all the business decisions and don’t have to answer to anyone. It can be highly empowering and motivating.

These are just some reasons businesses are booming and why to consider starting your own in 2023!

High Growth Small Business Ideas for 2023

Now that you know why to go the business route, what sorts of businesses should you consider starting in 2023? Here are some of the best small business ideas for 2023:

1. Food Delivery Services:

With the rise in popularity of food delivery services, this is a great time to start your own business in this industry. There are many online and mobile platforms that you can use to get started, such as Door Dash, Postmates, and Uber Eats. You need a vehicle and basic supplies, and you’re good to go!

Considering the requirement, it’s almost zero investment. The profit depends on the time you’re willing to put in and the area you’re covering.

2. Blogging

Suppose you’re a strong writer passionate about a particular topic. If so, starting a blog could be an ideal way to make additional money. You can use many platforms, such as WordPress and Blogger. All you need is a domain name and hosting, and you’re ready to start sharing your thoughts with the world!

The investment is minimal- just $10-$15 per year for the domain name and hosting charges. You could even start for free on platforms like Blogger and WordPress.com. The income depends on your chosen niche and the monetization methods you adopt. Google AdSense, affiliate marketing, and selling digital products are some of the ways you could monetize your blog. Again, your income depends on the time, effort, and strategies you put in place.

3. YouTube Video Creation

If you are passionate about creating engaging video content, starting a YouTube channel could be the right business idea for you in 2023. The best part about this business is that it requires very little investment to get started. All you need is a good-quality camera and video editing skills. You can even start with your smartphone!

The income from this business depends on the number of views and subscribers you get. You can earn from YouTube through ads, sponsorships, and affiliate marketing. If you put in the hard work, you could easily make a full-time income from your YouTube channel as other YouTube content creators have.

4. Dropshipping Business

Another great business idea for 2023 is starting a drop shipping business. Drop shipping lets eCommerce entrepreneurs sell items without stocking any inventory. When a client places an order on your website, you contact the supplier, and they ship the product directly to the customer’s doorstep.

The best part about it is that it’s a very hands-off business. Once you have set up your website and found suppliers, very little work is required. You can even hire someone to handle the day-to-day operations of your business so that you can focus on other things.

If you can find the right niche and build a loyal customer base, you can make a lot of money.

How Should You Fund Your Business?

Although these investments have low investments, you might still need some funding to grow them if you’re serious. Here are the best ways to get the financing you need:

1. Startup Funding

It is the most popular way to get funding for your business. You can raise money from venture capitalists, angel investors, or other sources.

2. Business Loans

If you have a good credit score, you may apply for a loan for your business from a bank or other lender. The interest rates on these loans are usually relatively low, so this is a good option if you need some extra cash flow to grow your business.

3. 0% Credit Stacking

You can use 0% interest credit cards to finance your business if you have good credit. One of the great things about this method is that you don’t have to pay interest on borrowed money. Consult with a professional business funding service before considering credit stacking.

Also Read: Business Loan Requirements For Small Business Owners

Professional Business Funding Service in Charlotte, TX

7 Figures Funding is a professional business funding service in Charlotte, TX. We work with startup businesses to get the funding they need to grow and succeed. Contact us today to get started.

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Key Takeaways

1. Credit card stacking is an excellent way to improve your business credit score.
2. The process can be done by working with a professional stacking company.
3. You should have a personal credit score of 680 at least or higher and verifiable income before starting the process of credit card stacking.
4. It can provide many benefits for businesses, such as access to more financing options and better loan terms.

One of the critical challenges of running a business is its sustainability. When starting your journey as an entrepreneur, you must carefully plan every step. Wrong decisions can be fatal for you and your company.

7 Figures Funding will explain credit card stacking and how to use it to your advantage. So, whether you’re just starting or you’ve been in the business for a while, read on for some helpful tips!

What is Credit Card Stacking?

Credit card stacking is using multiple credit cards to finance a purchase. This can be done by using multiple cards simultaneously to pay for the purchase or by using one card to pay for the purchase and then using another card to pay off the first card. Credit card stacking can be a helpful way to finance a large purchase or to avoid paying interest on a purchase by using a lower interest rate card to pay off the balance of a higher interest rate card. However, it is essential to be aware of the potential risks associated with credit card stacking, such as incurring multiple late fees or being unable to pay off the balance of one or more cards.

To explain how stacking up credit cards works, consider the following example,

You have three credit cards with a $5,000 limit on each.

You need to make a large purchase for your business that costs $15,000.

You can use all 3 of your credit cards to finance the purchase. It is stacking because you use multiple cards to finance the purchase.

Benefits of Credit Card Stacking for Businesses

Many benefits come with stacking your credit cards, especially if you’re a small business owner. Here are some benefits of stacking that can help your startup.

1. Financing Large Purchases

As a small-scale business owner, there may be times when you need to make a large purchase but don’t have the cash on hand to do so. It is where credit card stacking can come in handy.

If you have multiple credit cards, you can use them to finance a large purchase without having to pay for it all upfront. It can be beneficial if you need to make an expensive purchase but don’t have the cash flow to cover it immediately.

2. Earning Rewards Points

Another benefit of credit card stacking is that it can help you earn reward points more quickly. If you use multiple lines of credit, you can rack up points faster which can be redeemed for things like travel, cash back, or gift cards.

These benefits can benefit the business owner who often makes large purchases.

3. Building Your Credit Score

Credit card stacking can help you build your credit score using credit responsibly. Each time you make a purchase and pay it off on time, it reflects positively on your credit report.

Eventually, this can help you qualify for better interest rates and terms on loans and other lines of credit. Better financing would be available to your business, which could help in future growth.

4. Access to More Credit

Multiple lines of credit can also give you access to more credit overall. It can be helpful in several situations, such as if you have an emergency expense and need to tap into additional funds quickly.

It’s also helpful if you plan on larger purchases, such as property or a car, for business purposes. Having multiple credit cards can help you get a larger loan amount approved.

5. Fraud Protection

Another benefit of having multiple credit cards is that it can help protect you from fraud. If one of your cards is compromised, you can still use your other cards while you wait for the issue to be resolved.

Additionally, it can be difficult to spot fraudulent charges if you have much activity on one card. Multiple cards can help you keep a closer eye on your spending and quickly spot unauthorized charges.

6. Reduced Cash Flow Issues

Credit card stacking can also help reduce cash flow issues. You can make smaller payments on each card every month when you have multiple cards. It can help free up some of your cash flow so you can use it for other business expenses.

Is Credit Card Stacking a Scam?

Some startup owners are hesitant about the finance option of credit card stacking as they deem it a scam. However, this is not the case. So long as you make your payments on time and don’t exceed your credit limit, you will not be scammed. Credit card stacking can be a great way to improve your business’s finances.

How Do I Start Stacking Up Credit Cards?

If you’re interested in credit card stacking, you can take the aid of a professional stacking company. Here are some criteria to consider before applying.

1. You should have a personal credit score of 680 at least or higher. It will help the stacking company to identify the right credit card companies for you.

2. You have verifiable income. It is to make sure that you can afford credit card payments.

3. Your business bank statements for the past three months will be required.

The stacking service would provide guidance and support throughout the process to ensure you get the most out of your credit stacking journey.

Also Read: Business Loan Requirements For Small Business Owners

Bottom Line

Credit card stacking is a great way to rebuild your business credit and access more financing options. It can be done by working with a professional stacking service or following the above steps. 

If you need to find a professional stacking company for your small business in Phoenix, AZ, 7 Figures Funding is the right choice. We can help you get prequalified to move forward with your business goals. With our years of experience in business funding and credit card stacking, we know how to secure the best rates and terms on your loan. Get in touch with us today to get started.

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Key Takeaways:

• A strong brand is vital for long-term success.
• Lack of funding can be a significant challenge for startups.
• There are ways to overcome this challenge, such as bootstrapping or seeking out investors.
• It is essential to have systems and processes that can easily be scaled up as your business grows.
• Every business needs a website – make sure yours is professional, user-friendly, and accurately represents your brand.
• Keep your target market and unique selling proposition in mind when creating your website.
• 7 Figures Funding offers startup funding to customers in Orlando, FL, and the surrounding areas.

Starting a business is no easy task. There are many things to think about – from developing a new service or product that fills a consumer need in the market to creating a brand that people can trust and resonate with to building an infrastructure that can support your growth. And that’s just the beginning! As a startup, you will undoubtedly face challenges along the way. But don’t worry – we’re here to help.

Your business will likely fail if you’re not prepared for these challenges. 7 Figures Funding will discuss 16 common startup challenges and how to solve them. By preparing yourself for these obstacles, you can stay ahead of the game and ensure the success of your startup! Let’s get started!

Startup Challenges and their Solutions

1. Hiring the Right People

The biggest challenge faced by startups is hiring the right people. Finding skilled employees and a good fit for the company culture can be difficult. Startups often compete with larger companies for top talent, making it challenging to attract and retain the best employees.

2. Managing Cash Flow

Another common challenge faced by startups is managing cash flow. Many startups burn through their initial investment quickly, putting them in a difficult financial position. Startups must track spending and ensure they are not overspending on unnecessary items.

3. Creating a Unique Selling Proposition

Many startups struggle to create a unique selling proposition (USP). A USP is what sets your company apart from your competitors. Attracting customers & standing out in the market can be challenging without a USP.

4. Scaling Quickly

Another challenge that startups often face is scaling quickly. Once a startup has found initial success, they need to be able to scale its business quickly to keep up with demand. It can be difficult as it requires changing how the business is run and investing in new infrastructure.

5. Dealing with Regulations

Startups also have to deal with various regulations they may not be familiar with. These regulations can vary depending on the industry, but they can include environmental, safety, and financial constraints. Failure to comply with these standards & regulations can result in heavy fines or even shutdowns.

6. Protecting Intellectual Property

Many startups have innovative ideas that need to be protected from competitors. It can be done through patents, copyrights, or trademarks. Startups must ensure they are familiar with the different types of intellectual property protection and how to obtain them.

7. Building a Strong Brand

A strong brand is essential for any startup that wants to be successful. A brand helps customers identify your company and its products or services. It also helps build trust and loyalty among customers. Creating a strong brand takes time and effort, but it is essential for long-term success.

8. Lack of Funding

Among the most common challenges that startups face is a lack of funding. It can be a significant problem, limiting a startup’s ability to hire staff, develop products, and market its business. There are a few ways to overcome this challenge, such as bootstrapping (self-funding), seeking out angel investors, or applying for grants.

Also, read our blog on startup funding mistakes to avoid.

9. Time Management Issues

Another common challenge faced by startups is time management issues. It is often because many tasks need to be completed in a short time, and a small team is typically working on them. It can lead to employees feeling overwhelmed and burnt out. To overcome this challenge, it is essential to have a clear plan and timeline for each task, delegate tasks appropriately, and take breaks when needed.

10. Hiring Challenges

Hiring can be one of the biggest challenges faced by startups. It is because startups often have limited budgets and need to find skilled employees willing to work for less pay than they could get at a larger company. To overcome this challenge, it is vital to be clear about what you are looking for in an employee, use social media and other online tools to reach out to potential candidates, and offer perks that will attract employees (such as flexible hours or the ability to work from home).

11. Customer Acquisition

Another common challenge faced by startups is customer acquisition. It means finding people interested in your product or service and getting them to buy it. There are a few ways to overcome this challenge, such as offering discounts or free trials, using social media marketing, or partnering with another company with a similar target market.

12. Competition

Competition is another major challenge faced by startups. It is because there are often already established companies with more resources and brand recognition in the same industry. To overcome this challenge, it is vital to differentiate your product or service, focus on a niche market, and build a robust online presence.

13. Scalability Issues

Scalability issues can be a major problem for startups. It means that your business may not grow at the same rate as your competitors or may not be able to handle an increase in customers/demand. To overcome this challenge, it is crucial to have systems and processes that can easily be scaled up, use technology, and outsource non-essential tasks.

14. Building a Website

In today’s digital world, every business needs a website. Your website is often the first interaction that potential customers will have with your brand, so it’s essential to make sure it makes a good impression. When building your website, keep your target market and USP in mind. Ensure the design is professional and user-friendly and that the content is relevant and engaging.

15. Generating Traffic

Once your website is live, you need to start generating traffic. There are many ways to do this, including search engine optimization (SEO), pay-per-click (PPC) advertising, social media marketing, and content marketing. Experiment with traffic generation strategies to find what works best for your business and budget.

16. Converting Visitors into Customers

Generating traffic is one thing, but converting those visitors into customers is another challenge altogether. You need to have an effective sales funnel to convert visitors into customers. It starts with creating compelling content that speaks to your target market’s needs and then directing them toward a product or service that can solve those needs. Once they’re ready to buy, make it easy to do so with a clear call-to-action (CTA) and an optimized checkout process.

Click here to read the article published in Forbes about startup challenges.

Need Startup Funding in Orlando, FL? No Problem!

If you’re a startup in Orlando, FL, or the surrounding areas and are looking for some funding to help get your business off the ground, look no further. 7 Figures Funding is here to help. We offer fast and easy financing options to get the money you need to start making progress.

Apply now, and let us help you take your business to the next level.

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Key Takeaways:

• Funding startupsis a process by which new companies obtain capital for financing the early stages of the business’s development.
• When reaching out to these potential sources of startup funding, you must be honest and upfront about your business.
• Describing your business’s vision for the future of your startup can also help build trust with investors.
• Investors must know that they can trust you with their money. So, be open about your financial information and projections.
• Building trust can be challenging initially, but taking the appropriate steps will surely pay off in the long run.

Starting a business isn’t easy. Aside from countless hard work, you also have to manage relationships with key stakeholders like customers and investors. Building trust with investors is essential for securing funding and achieving long-term success.

To gain initial funding, startups can look towards startup funding. This is a process by which startup companies can obtain capital for financing the early stages of the business’s development. In most cases, startup funds come from venture capitalists, angel investors, or other private investors.

However, how can your business gain startup funds from investors, all while building trust? Let’s discuss how new entrepreneurs and even seasoned business owners looking to start a new business should contact investors and build trust.

Ways To Contact Investors for Startup Funding

Be Transparent About Your Business.

The first way startup companies can contact investors is by being transparent about their business. Startup funding usually comes from private investors, such as venture capitalists or angel investors.

When reaching out to these potential sources of startup funding, you must be honest and upfront about your business.

This includes sharing information about your team, product, market, and financials. By being open and honest with potential investors from the start, you’ll be more likely to create a relationship of mutual respect and build trust.

Besides being transparent about your business, it’s also important to be clear about your goals.

• What are you looking to achieve with startup funding?
• How will you use the capital you receive?
• What milestones do you hope to reach?

By being clear about your goals, you’ll be able to better align yourself with potential investors who can help you achieve them.

Describing Your Vision

Describing your business’s vision for the future of your startup can also help build trust with investors.

• How impactful do you hope to make with your business?
• What problem are you solving?
• Why is your team the best one to solve it?

Answering these questions openly goes a long way toward building trust with potential investors. They’ll see that you’re not just looking for a quick payday but are genuinely passionate about your business and its potential to make a difference.

Share The Story Behind the Startup.

Your startup’s story is a crucial part of building trust with investors. Describe the problem you’re solving and how you came to solve it. Talk about your team and their experience in tackling this problem. Share your progress to date and any successes you’ve had.

Be Open About Your Business.

Investors must know that they can trust you with their money. So, be open about your business. Share financial information and projections honestly. Don’t try to hide anything or mislead investors in any way.

Keep Communication Lines Open.

It’s essential to keep the lines of communication open with potential investors. Keep them informed about your progress and remain available to answer any questions they may have. This will help build trust and make them more likely to invest in your startup.

Consider What the Investors Want.

Before approaching potential investors, you must consider what they’re looking for. They’ll want to know that your startup is a good investment and that you have a solid plan for success. They’ll also want to see that you have a good team and are committed to making your startup successful.

Approaching Funding Services

One of the ideal ways to look for investors for your startup is to approach funding services. These companies can connect you with potential investors and help you build trust with them. They can also provide valuable resources and advice on how to get funding for your startup.

Benefits Of Building Trust with Investors

Building trust with investors is essential for any startup looking to raise funding. There are a few key benefits of establishing trust with potential investors:

• Increased likelihood of investment: If an investor trusts the startup team, they are more likely to invest in the company. This is because trust signals to the investor that the startup is more likely to be successful.
• Access to additional resources: If investors trust the team, they’re more likely willing to provide additional resources such as introductions to other investors or access to their network.
• Greater transparency and communication: When there is trust between the startup and the investor, there tends to be greater transparency and communication. This can help the startup avoid potential problems down the road.
• Increased chances of success: Generally, startups that trust their investors are more likely to succeed. Trust indicates that the startup team is competent and has a good track record.

Here are some startup funding mistakes to avoid when securing the best investment.

Things Investors Consider Before Investing in A Business

• The startup’s team: One of the most important things investors consider is the startup’s team. They want to know if the unit is competent and has the relevant experience.
• Track record: Investors also look at the startup’s track record. They want to see if the startup has a history of success.
• Market opportunity: Another vital factor investors consider is the size of the market opportunity. They want to know if there is a large enough market for the startup to be successful.
• The competitive landscape: Investors also look at the competitive landscape to see if other companies compete for the same market.
• Business model: Investors want to know how the startup plans to make money. They want to see a clear path to profitability.
• The startup’s financials: Investors also look at the startup’s financials to see if the company is financially sound. They want to see a solid business plan with realistic financial projections.
• Legal status: Investors also want to know if the startup is legally compliant. They want to ensure the company is in good standing with the law.
• The startup’s valuation: Another critical factor that investors consider is the startup’s valuation. They want to ensure that they get a good investment return.

Building trust can be challenging initially, but taking the appropriate steps will surely pay off in the long run. Additionally, funding services can help you gain valuable resources and support when building trust with investors.

7 Figures Funding provides new and seasoned business owners with various financial services to help them grow and thrive in Houston, TX.

Get started with us today and see your business achieve new heights!

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Key Takeaways:

• A small business owner looking to take out a business loan must be a U.S. citizen or resident alien with a valid Government ID.
• The business owner must have a good credit score, as the lender will check that the borrower has a history of making on-time payments.
• You must have a solid business plan to assure the lender how the loan will be used and how it will help the business grow.
• The lender requires the collateral to have something as security to back up the loan in case of default.
• The lender will check the proof of your income to evaluate your repaying capacity.
• 7 Figures Funding provides funding services to businesses in Fort Worth, TX, and the surrounding areas.

Business loans offer an excellent solution for small business owners to get the money they need togrow their businesses. However, there are many things you need to know before you apply for one.

Do you need a business loan to help growyour business? Many small business owners are turning to business loans to finance their businesses. But before you can qualify for a loan, there are a few things that you need to know. 7 Figures Funding will share4 essential information to acquire a business loan.

What is a Business Loan?

Business loans are typically used to finance the purchase of property or equipment or any other business-related purpose. To qualify for a business loan, companies must have a good credit history and demonstrate their ability to repay the loan.

1. Purpose

Business loans are typically larger than personal loans and have different repayment terms. Companiescan use business loans for various purposes, including purchasing inventory, growingoperations, or financing renovations.

2. Prerequisites

Businesses usually need collateral, such as property or equipment, to provide security against business loans. These loans are expensive due to their higher interest rates than other loan types, such as personal or home equity loans.

3. Duration to Repay

Business loans are repaid over a period known as the loan term. The loan term can vary depending on the size of the loan and the repayment schedule decided between the borrower and the lender.

It could range from one year to 25 years, depending on the lender and the type of loan. The repayment schedule for a business loan is typically monthly, although some lenders may allow weekly or bi-weekly payments.

4. Consequences of Defaulting on Loan Payment

Businesses unable to repay their business loan may be subject to foreclosure proceedings. Business lenders will often require firms to have insurance to protect their investments in case of default.

Small business owners must carefully assess their needs before applying for a business loan and compare offers from multiple lenders to lock in the best deal possible.

Also, read our blog on the three loan blunders that keep you from making the most of it.

Requirements for a Business Loan

The requirements for a business loan vary depending on the lender. In most cases, you will have to show some collateral and a detailed business plan.

1. Government ID

The business owner must be a U.S. citizen or resident alien with a valid government-issued ID. It is because the lender will need to verify the borrower’s identity.

2. Personal Guarantee

One of the requirements for a business loan is a personal guarantee. The business owner is liable to repay the loan if the business cannot do so. The private security can be in the form of a personal asset, such as a home or car, or a co-signer on loan. If the small business defaults on the loan, the lender can come after the small business owner’s assets.

3. Business Plan

The business plan should outline the purpose of the loan, how the funds will be used, and how the loan will be repaid. The business plan should also include financial projections for the business, such as income statements and balance sheets.

4. Financial Statements

In addition to a business plan, lenders will also require financial statements for the business. These statements can include tax returns, profit and loss statements, and balance sheets. The financial information will give lenders a fair idea of the financial health of the business and its ability to repay the loan.

5. Collateral

Collateral is an asset that can be used to secure the loan in case of default. Common types of collateral are real estate, vehicles, equipment, and inventory. Lenders may require that certain types of collateral be insured to protect their investment.

6. Credit History

Lenders will also want to review the credit history of the business and its owners when considering a business loan request. A strong credit history indicates that the borrower has a proven track record of making timely payments and is less likely to default on the loan. Lenders may also consider factors such as bankruptcies or foreclosures when evaluating credit history.

7. Ability to Repay

When considering a business loan request, lenders want to know that the borrower can repay the loan. Lenders will typically look at factors such as cash flow, debt-to-income ratio, and collateral value while evaluating the repaying capacity of the applicant.

8. Loan Purpose

Lenders will also want to know the loan’s purpose before approving it. Everyday purposes for taking out a business loan include purchasing property, growing small businesses, expanding established companies, or consolidating debt. Lenders approve loans for specific purposes more quickly than for general needs, ensuring that the borrower has a proper plan for efficiently operating the business.

9. Backup Plan

Another business loan requirement is that the small business owner has a backup plan if they cannot repay the loan on time. The lender wants to know if the small business owners have thought about the contingency if they cannot make their loan payments on time and planned to avoid defaulting on the loan.

10. Down payment

The business owner has o make a down payment. The lender wants to know that the applicant has some skin in the game. Down payment requirements vary from lender to lender, but you can expect to put down at least 20% of the loan amount.

Click here to learn how to get a business loan in five steps.

Need a Business Loan in Fort Worth, TX?

If you need funds to grow your business in Fort Worth, TX, contact 7 Figures Funding today. We can help you get prequalified to move forward with your business goals. With our years of experience in business funding, we know how to secure the best rates and terms on your loan. Contact us now to get started!

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Key Takeaways:

• Fraudulent activity in the accounts payable (AP) department is not uncommon.
• Tampering with the accounts payable can have devastating consequences for a business.
• Common signs of fraud include duplicate entries, missing invoices, and entries with incorrect amounts.
• Businesses can prevent and detect fraud by implementing controls such as requiring pre-approval for all changes to the AP process, performing regular audits of the AP process, and establishing clear communication channels between the departments.

Businesses rely on accurate and up-to-date financial information to make sound decisions. When this information is tampered with, it can lead to disastrous consequences. In this blog post, the experts at 7 Figures Funding will discuss some signs of tampering with the accounts payable. We will also talk about how fraud and money mismanagement can make it difficult for a business to return credit and how you can guard against these activities.

What Is Account Payable Fraud?

Account payable fraud is a white-collar crime involving manipulating a company’s financial records. This may be done for various reasons, including personal gain or to cover up other fraudulent activities. Employees, vendors, the two parties working together, or, increasingly, a third party who is trying to access the company’s accounts payable systems may commit accounts payable fraud.

Any business may be a victim of severe fraud. According to ACFE, also known as The Association of Certified Fraud Examiners, a typical organization loses 5% of its income to fraud every year, with a median loss of $125,000. An average of 14 months pass before the fraud is discovered, costing $8,300 each month on average.

Signs of Tampering with the Accounts Payable:

Many signs can indicate fraud or tampering with the accounts payable. The most common include:

Sign 01: Duplicate Payments

A fraudster can attempt to execute a vendor’s monthly payment twice a month to transfer the money to their account. It’s fairly simple to argue that this is a mistake. On the other hand, dishonest suppliers may attempt to submit identical invoices to receive a payment twice if they are aware of gaps in payment procedures.

Multiple payments can also go undetected when invoice payment is made using a regular purchase order (PO) system and a “one-off” vendor expenditure system. This may occur if an employee forgets or never seeks a PO for the charge.

Sign 02: Tampering with Invoices

Fraudsters will often attempt to modify an existing vendor invoice or create a new one that includes false charges. This type of fraud is commonly seen in companies with little internal control over their accounts payable (AP) processes. Tampering with invoices can be as simple as changing the dollar amount or the vendor’s name on an invoice.

Fraudsters will create fake invoices from fictitious vendors or alter legitimate invoices and submit them for payment. This type of fraud is more difficult to detect because it requires a higher level of sophistication and planning.

Sign 03: Creating False Credits

Another way that fraudsters attempt to tamper with accounts payable is by creating false credits. This can be done by submitting fraudulent refund requests or duplicate payment requests to the AP department. False credits can also be created by altering legitimate credit memos or creating fake credit memos.

Sign 04: Tampering with Check Run Processes

Tampering with check run processes is another way people attempt to commit AP fraud. This can be done by altering the check run schedule or changing the order in which checks are processed. Tampering with check run processes can also involve intercepting checks mailed to vendors and redirecting them to a different address.

Sign 05: Phantom Vendors

Tampering with the AP department can also involve creating phantom vendors. These are fake vendors created to funnel money out of the company. Phantom vendors can be created by employees or outside parties with access to the company’s accounting system.

Sign 06: ‘Flip Flop’ Vendor Master File Changes

Another sign of tampering in the AP department is when there are frequent changes to the vendor master file. For instance, a staff member may get unauthorized access to a vendor master record and enter their bank account details. As a result, the employee’s account receives a payout. After receiving payment, the employee opens the vendor master file to undo the transaction.

Sign 07: Sequential Numbers

Fraudsters occasionally make very foolish errors. As an illustration, consider an employee who creates a phony vendor account and submits bills for fictitious items and services without considering how invoice numbers advance in the real world. For example, all the vendor’s invoices start with “1000” followed by other sequential numbers. But in reality, a new vendor’s first invoice number would be something like “2000123.”

Tips for Preventing Account Payable Fraud:

It is vital to avoid fraud in the first place since most businesses cannot recover their losses from fraud.

To avoid fraud with accounts payable:

• Be proactive by doing routine audits, monitoring KPIs, looking for warning signs, and checking bank statements.
• Create a tip line and other avenues for employees to report fraud and implement rules for safeguarding them when they do.
• Verify the backgrounds of every employee.
• Apply a formal code of ethics. This code must be simple to understand and compatible with the business and industry culture. Policies outlining potential conflicts of interest ought to be included.
• Establish explicit guidelines for expense reimbursement. Enforce them at the top tier of the organization.
• Make sure that only authorized personnel have access to the accounts payable system.
• Define positions and divide responsibilities. Divide check-signing and bookkeeping authority at the most fundamental level. Don’t let the same individual balance the bank accounts, sign the checks, and cut the checks.
• Inform staff members about phishing scam dangers and how to spot them.
• Implement procedures to ensure that any changes to current invoices, bank deposit information, and contact information are appropriately verified.
• To maintain all vendor data up to date, review and update the vendor master file often.
• Automate the AP procedure to guarantee safety.

Ending Note:

Tampering with the accounts payable can have serious consequences for your business. You can protect your business and maintain a healthy bottom line by taking measures to prevent and detect this type of fraud.

The 7 Figures Funding App in Charlotte enables you to quickly manage all of your personal and company financial accounts, including your bank accounts, loans, credit cards, and more. Additionally, it helps you make the best finest financial decisions to support the expansion of your firm. You may acquire a free pre-approval at any time by just connecting with the app, which won’t affect your credit.

Get started today and stay safe from fraud!

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There’s already much fear when it comes to starting a new business. Is your product or service better than the competition? Will you lose finances and credit if your business fails? Business owners don’t need more reasons to feel like they are tiptoeing and are always one step away from making the wrong move.

Several online articles discuss business financing myths and spread misinformation about how financing and credit work. These misconceptions continue to cost American entrepreneurs millions every year and, for most, their dream.

Most Americans probably couldn’t tell what a FICO score was a few years ago. But now, millions of users are signing up for products that offer monthly credit scores.

As a result, credit awareness and FICO scores in the US are also increasing on average. The business credit space is poised for an awareness renaissance, but there’s still a way to go.

Unfortunately, business owners are risking their credit to attain loans for the business. Even worse, they are paying a leg and an arm for personally guaranteeing the cash.

But they don’t have to; getting past business financing myths can help you find the best loans for your business. Let’s discuss some of the most common myths to help you steer clear of them when searching for financing options for your new business.

1. It Takes a Long Time to Build Business Credit

One myth that needs to be cleared is that personal credit scores aren’t built faster than business credit scores. No financial institution or consumer lender is required to report your data to any significant credit bureau.

While some financial institutions may prefer to do so to benefit from credit scores, no law mandates it. Utility companies generally don’t report your payment history to the bureaus. This is even when they have alternating data sets that can help millions of American starts building credit.

The same is also true with business credit reporting. Lenders and institutions aren’t required to report tradelines to commercial credit reporting agencies. These are business financing myths that, in reality, require reporting of a few tradelines for generating a business credit score.

Moreover, building business credit doesn’t take more time than building financial credit. However, because of the gap in awareness, many business owners don’t know where to start.

2. Most Business Loans Don’t Consider Your Business Credit

If you think that business loans don’t require a particular business score, you only know half the truth. A small business owners’ report from back in 2016 suggested that only 46% of the owners are satisfied with online lenders.

The broker marketplace relies on business owners that don’t qualify for financing terms and make money off the awareness gap. If the owners understand their business credit and actively manage it, they can open themselves to better financing options. Business owners can guarantee the best loans for their business needs.

The gold standard of business loans – the SBA guaranteed loans, uses FICO small business score services for prescreening applicants. These loans offer the lowest interest rates in business lending. The score combines components from the owner’s personal and business credit data.

However, if you haven’t worked building business credit, you might have to cross the SBA loan off your list of possibilities. Consulting professional business financing services is essential to realize your options before applying for a loan.

3. Business Credit Scores Don’t Reflect on Business’s Creditworthiness

The idea that business credit scores aren’t fair may sound familiar to you as it’s the same complaint with personal scores. Several things may seem unfair about credit scoring. You generally have to use credit to get credit; some items can impact the scores for a decade or more. The algorithms are proprietary, and some small core changes may be hard to rationalize or understand.

4. Are Online Lenders Con Artists?

The online alternative in the lending market is relatively new, and people may still be skeptical about it. Unfortunately, there’s a misconception that online brokers and lenders have engaged in predatory lending practices, which gives the lending industry a bad image.

However, it’s another one of those business financing myths that is far from the truth. In reality, business lenders operating online offer single-digit interest rates. Those who provide higher rates are usually working with risky borrowers.

Online lenders also regularly consider several borrower credentials apart from traditional credit reports and scores. Business owners who get turned down by any financial entity can find the most suitable business financing services online.

5. New Businesses Don’t Qualify?

The startup funding dilemma is a challenging one. Your business needs to be established to secure funding, but you’ll need some cash to get your business off the ground. Moreover, you are required to seek funding from angel investors or venture capitalists.

But is that the only way?

Well, not exactly; it’s another one of those business financing myths that startup entrepreneurs need to realize. More and more business financing services offer startup loans requiring no business credit history to qualify.

However, applying for such loans will involve more scrutiny of your personal finances. Your credit score is essential to the application, and you may get less favorable rates than an established business. But securing a business loan is possible if you stay open to the necessary conditions when finding funding.

Are you looking to improve your credit score within 30 days? Give this article a read.

The system is imperfect, but businesses and credit reporting agencies are constantly working to improve it. If your business’ credit score doesn’t provide lenders predictive modeling, they wouldn’t be used for financing large-sum bank loans.

Behind these major business financing myths, there’s the reality that business owners should know enough about their business credit to take full advantage of it. There’s a need to raise awareness and make life easier for the millions of entrepreneurs pursuing their dreams.

7 Figures Funding provides the best business financing services that will don’t impact your credit. We have helped several new businesses secure funding in Phoenix, AZ. Get in touch today to ensure the best funding options for your business.

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