22 Jan
16 Real Answers to Your Business Credit Questions Ilya Bodner Initial Underwriting
Posted in Business by video 18 CommentsQuestion about business
What business classes do you generally take the 3rd and 4th year of your BA?Im currently going to a 2 year school, getting my Business associates degree with a transfer option, and plan on going to a 4 year school to get my BA, and eventually my MBA. Im taking basic economics, accounting, and business managment classes right now, along with other core english and math classes, but what should i expect on my 3rd and 4th year? What types of classes? I know business classes obviously, but what specifically?
Ilya Bodner is a successful entrepreneur and owner of Initial Underwiting Group, an organization that underwrites business loans for owners that are ready to start up or expand a small business. In a recent interview, Mr. Bodner answered some of the most frequently asked questions that are on the minds of business owners when they need financing and commercial loans.
How did you get involved in business credit?
I needed to raise money for my first business venture; being young and just out of college my personal credit could not support $250,000 loan. I found out about Dun & Bradstreet and spent 3 years carefully learning its methods and lenders that use that information.
Why did you decide to help small businesses obtain loans?
I got $250k for my own business through the use of business credit, realized that a lot of business owners don’t know about business credit and decided to cater to the demand.
What is the worst mistake you see small business owners make?
Being undercapitalized – Worst mistake is not to plan for unpredicted expenses, loose projections, and shift in demand; which all contributes to increased spending and lowered sales.
Do you think it is fine for new business owners to borrow money from people they know?
No, I don’t think it is fine to borrow from people you know – If you undercapitalize, you tend to go to friends and family for immediate money. Otherwise, borrowing with caution and enough reserves to pay back in case of total loss, is the only acceptable method of borrowing from your loved ones.
Do you see a trend in why small business owners get rejected for loans?
High Risk – the lenders see a small business owner as a renegade who may or may not pay back the loan + interest. 3 out of 4 businesses don’t survive; and the small percentage of small businesses that do survive end up defaulting at some point.
Is there a way to apply for a business loan without revealing your personal credit history?
Yes, some banks offer business credit based programs.
In your experience do you see business owners without business credit, get lines of credit and business credit cards?
Yes, they take the steps to establish a strong business credit profile and go to the right lenders.
Can a business owner apply for a business loan if they declared bankruptcy sometime in the past?
Yes, only if a strong business credit profile already exists. Apply with a lender that offers business credit-based financing.
How should one establish business credit when just starting out?
Establish a legal entity with an EIN number first. Then, apply for a Dun & Bradstreet number and an Experian report – both are free. Lastly, sway 6 vendors to report payment history (this part is tricky if you don’t have the leisure of time).
Do your business credit habits automatically get submitted to the business credit reporting agencies?
No – Reporting can be done by all; however, automatic reporting is done by only a few vendors and lenders.
Is it easy to get financing once you have a business credit profile?
Nothing is easy in the current state of our credit-crunched lending sector. By having business credit a business is open to more lending options.
Is the SBA the only resource for small business loans?
Not anymore – more and more banks offer business credit based financing.
Will the current situation in the banking industry and the economy affect a new business owner’s ability to get a loan?
Yes, for those that don’t have business credit.
Will a business owner be expected to pay high fees when they apply for business-credit based financing?
No, these are the same banks and the same lending guidelines – pulling business credit reports, not personal credit scores.
Can a business owner, without business credit, get lines of credit and business credit cards?
Yes, take the steps to establish a strong business credit profile and go to the right lenders.
Any tips for all of us who are looking for loans to expand, start, or restructure our business?
Just like you take the time to go to an accountant for tax advice and preparation (regardless if it is your first year of operation or tenth year), spend some time with a business professional to prepare and take advice on strong business credit.
Related posts:
- Small Business Success With a Bad Credit Business Loan Question about businessWhat type of business should I mark my...
- Business Credit Cards and Personal Liability Question about businessHow do I start a successful retail business?I...
- When Bad Credit Spoils Your Chances At A Small Business Loan Question about businessHow to write a business proposal for selling...
- A Faster Way to Get Small Business Loans Question about businessWhat business minor should I get in addition...
- Small Business Loans: Get Initial Fund for your Business Question about businessWhat is the best way to transfer my...
Related posts brought to you by Yet Another Related Posts Plugin.
guzen
on January 22 2010
Well Said!!
JJ
on January 22 2010
you've got it back to front. First you look for a niche in the market that needs to be addressed or you note a shortage of demand. If you are not addressing these keep your money in your pocket.
Business opportunities come from hobbies expanded, new technology (e.g. become the Blue Ray expert), niche markets e.g. something a cultural group wants or needs, changes in law create opportunities for experts to emerge, changes in demographics e,g, more children in the area.
Look around. Ask people around you.
How to start will depend on the idea – some businesses start part time until they get enough customers to move on – some start as web based businesses and others just have to bite the bullet and go bigtime. Whatever you do please do a business plan before you start – work out the details on profitability, time needed to make it work etc before you commit any money to the idea.
Need a great business plan format try. http://www.australiansmallbusiness.com.au/Easy-Business-Plan-Pack-p-16143.html
Chev
on January 22 2010
Hi,
i have found a site to be usefull, just check this out
nacao
on January 22 2010
China is really taking this advice to heart. Even now the Chinese government is investing heavily in the African oil and minerals sector, using their expertise to help African countries upgrade their infrastructure (roads, electricity, pipelines etc.), and providing cheap capital for African countries to exploit and grow, thereby making many friends and allies in the process. China is helping them grow, gaining strong geopolitical influence and privileged access to growing markets.
The Invisible Woman
on January 23 2010
The requirements vary according to your state. Call the business license office for your county and just ask them if you need a business license to operate an internet store. I live in Georgia, and in my county, you do.
truth
on January 24 2010
You have just proven my point.Two sentences to show that you have nothing more useful to say and I suppose this discussion ended when I said BYE Earlier.Wishing you Goodluck and hope you somehow get out of your IGNORANCE,DENIAL,ARROGANCE,AND SELF HATE.I STAND BY MY OPINION,NIGERIAN GOVT.OUGHT TO DO MORE!!! IF THAT ANNOYS YOU WELL GET OVER IT AND STOP PRETENDING THAT THEY ARE DOING ENOUGH.I STRONGLY SUGGEST YOU FIND A LIBRARY AND EDUCATE YOURSELF A LITTLE MORE.SINCE BUYING BOOKS MAYBE EXPENSIVE.
psychic
on January 24 2010
Sorry Mrs Ngozi, you’re well educated, but Nigeria is a s***hole. The corruption is deeper than a black hole. Maybe, just maybe, if Nigeria started with something as little as (um… i don’t know) STABLE ELECTRICITY???
I don’t know how a nation is meant to develop, let alone tackle corruption if the electricity is constantly being switched off on random daily basis. Start with a stable power supply and then i’ll take you seriously.
SarahR
on January 24 2010
Hiiiiiii..
I think you have to choose the Marketing section in Human Resource Management(HRM) because in marketing you get the nice job in the good reputed company on a high post..
corpo
on January 24 2010
You’re an idiot.
Shut up and get out.
Mikelo
on January 24 2010
How about a book store, if you are looking retail?
I cant say if it would work in your town, you need to do marketing research to see what would succeed in your town.
Also in business .. Location, Location, Location is VERY important to success .. not only do you need the right business, you need the right location ..
Passion, YES .. you do have to work long hours but passion because you believe in what you are doing.
I work from home and have the utmost compassion and belief for what I do, I believe that is what brings me success ..
If you don't like books, don't like to read .. then a book store probably wont make sense. Did deep .. Only you know what you really want to do.
GL!
urbantool
on January 24 2010
chinnyization, you have brashfully expressed your thoughts (and I dare say without proper reason). I agree with Bladen12345 that your argument is very weak. You obviously have misunderstood Ngozi; she is making a point on the power of foreign direct investment. I am sure that she pointed out that african governments have their failings, but her aim is to illustrate the wisdom of higher FDI as a better means of aiding africa as opposed to ‘Charity Aid’.
earthlink
on January 25 2010
My reasoning may hold very little significance on HERE,but at least people like you are reading it.Whatever you may think might be better, doesn’t change the fact the TALK IS CHEAP!!! I LOVE NGOZI FOR WHAT SHE STANDS FOR,BUT IF SHE REALLY IS DIFFERENT FROM ALL THE OTHER CROOKS THERE HAS TO BE SOME OBVIOUS RESULTS FOR WHAT SHE STANDS FOR!WE DON’T NEED ANY MORE TALKS,and I don’t need anymore talks with you,SINCE YOU SEEM NOT TO REALIZE THAT ANY TALK WITH NO RESULT IS OBVIOUSLY CHEAP.GOODLUCK & BYE
rails
on January 25 2010
The Africa of put the white man out and let the chinese in and embrace the muslim and now they want some chinese out and the muslims are slaughtering the black africans and as always the rich forget the poor that is world wide
Austinite
on January 25 2010
You can't post a Proposal for Sale of Business here. It is a comprehensive document similar to a business plan with dozens to hundreds of pages. Contact a broker like VR Business Brokers and see if you can get help. Yours is a unique business driven by personal contacts and is not easily sold.
cooolioooo
on January 25 2010
business school is the right field to study, if you choose your college carefully, some have an entrepreneurship track/program
jpro
on January 25 2010
Your reasoning is fairly weak. Ngozi explained it well and I think a lot of people understand, because I sure did.
What you need to come to terms with is that your views hold extremely little significance here.
Ken
on January 25 2010
You need to keep accurate records when running a business. This will be your best defense if you ever get audited.
For IRS purposes, you need to make a profit every 3 out of 5 years to have the IRS prove that you are not running a business. Otherwise, it is up to you to prove that you are running a business and not doing a hobby. You can prove that you are running a business by keeping your business accounts and personal accounts separate.
You can write off any legitimate business expense including dinners with clients, car expenses, equipment, etc.
Having a separate checking account and credit card is a good idea. However, it isn't necessary. You can comingle your business and personal expenses using your personal accounts. But, if you do this, then it will be harder for you to prove that you are running a business.
For your revenues, you don't need a corporate account to make you deposits. You just need to make the deposits in your separate account that you use for business.
You can read Publication 334 for more information.
Wayne R.
on January 25 2010
Yes, the courses you speak of will help you to become a Business Analyst.
A BA can be on the client side or the IT side. If on the client side, they are interfacing with work group domains that process the work and review what they need. They generate requirements and then work with the IT side to update or generate processes and applications to fullfil the business needs.
If you're a BA on the IT side of the house, then you're taking all the requirements and developing processes and application solutions. Your job is to work with the client to generate a business solutions document (there are many names for it) and get signoff. Then, you need to make sure that solution becomes reality by working with systems analysts, programmers, and testers. You're generally responsible for the delivery of the solution. Although, if the solution revolves around process changes with other work group domains, you normally work with a PM (Project Manager). Never the less, you have end to end responsibilities for the IT delivery to insure the client gets what they need (and paying for).
With the offshoring of work to cheap labor, to remain associated with software development, the BA role is a good profession.