The Importance of taking the Business Fundability Test!

The best chance you have of getting the money you need for your business is to know where your company's credit and overall setup stack up to lender expectations. That's what the business fundability test does for you. It gives you the information you need to be prepared and improve areas that need strengthening. The business fundability test can give you vital information for immediate lending needs as well.

If you are in a crunch and need money now, taking the business fundability test will give you an idea of which lenders would be more open to providing for your needs. What is the Business Fundability Test? The business fundability test is a simple, free and fast scoring system that measures the strength of your business' credit and identification information. Things that are often overlooked such as rating your company based on its location and whether it exists in its own location or is home-based, if your telephone number for your business is listed in the national directory. These are items very often overlooked by new business owners, but not by lenders. They will look, and you should know ahead of time where you stand. Of course, a business fundability test will also check your credit standings with major reporting agencies.

It will also give you a head's up on how your business reputation holds up and if all of its licensing is up to date. Taking the business fundability test is like getting pre-approval for a personal loan. It gives you the confidence you need to approach lenders, because you already know what they are going to see when they look at your application and do their own research on your credibility as a business. You can take the business fundability test for your own company at http://www.americafundinglending.com. The Best Time to Take a Business Fundability Test Really, there is no wrong time to take the business fundability test. The best time to take the test is long before you need to get a loan so that you have time to rectify any shortcomings. It isn't a one-time thing, however. You should take the test regularly to keep track of where you stand and how your efforts are working to improve your business' credibility. Finally, you should always take the business fundability test immediately before actually applying for a loan. Just like your personal credit, business fundability can fluctuate and you never want to be left unprepared.

Small Business Credit and Small Business Lending

Most people who start and operate a small business expect to work hard for long hours in order to get their business idea off the ground. What they don't expect is to have to shine their shoes and their personal financial resume in order to get small business credit from their local bank or financial institution. Yet that is the experience of many small business owners who for a variety of reasons need to have loans, lines of credit, or other small business credit in order to keep their business afloat.

The ability to obtain small business credit from a lending institution is directly related to the financial reliability of the small business owner or operator. One of the first things a bank will ask for is proof that the person requesting the small business credit has a good financial standing in the community.

If one has previous bankruptcies, bad debts, or bad loans in their personal financial past, then the bank is usually very reluctant to provide small business credit or financing. Even if they do agree to provide some funding they almost always charge a premium rate of interest and may even demand guarantors or co-signers to the debt arrangement. That's why it is important to check your credit rating before you head off to the bank for your small business line of credit. There are loan programs available that don't use your personal credit such as cash advance on merchant accounts and accounts receivable factoring.

There may be errors or omissions on your credit report that you can change or amend before the bank turns down your small business credit application. There may a possibility of contacting former creditors to see if an arrangement can be reached before you even ask your lending institution to look at your commercial credit needs. Even if you can't change the content of your credit file you can be at least prepared to provide an explanation to the bank as to why they occurred in the past and to give them assurances they will not happen in the future.

A small business credit application may allow you to apply for start up funding to get your business rolling. It may be a small business line of credit that you can use for short term emergencies or tight cash flow months. It may be a business loan that you can use to buy new equipment for your enterprise or to purchase property on which to build your corporate headquarters. Your bank or commercial lender can help you make the right choice of small business credit vehicle to meet your needs for today and tomorrow.

It is hard to break into the world of small business credit, mostly because the risk of small business failure is greatest during the first couple of years of operation. But once you establish yourself in business with a small business line of credit you can rest at little easier and devote your efforts to making your small business a great success.