XBanker

In Credit Crunch, Business Comes First

September 8th, 2008

Business owners are electing to pay business debts at the expense of personal debts, reports Experian(tm). In a comprehensive study covering 2.7 million business owners over the course of a year, the global information services company found that found that business owners with a severe mortgage delinquency were more likely to pay their business obligations instead of their mortgage.

Experian’s research showed that because of deteriorating equity, high mortgage payments and limited refinancing options, business owners chose to ensure the business’ survival, preserving their source of income at the risk of losing their home. That’s the bad news.

Here’s the good news:

Business owners were less likely to experience a 90+ day delinquency on their mortgage than other consumers. In fact, by April 2008, the average home owner was 1.5 times more likely to experience severe mortgage delinquency than the average business owner

Additionally, Experian’s study found that small-business owners are relying on commercial lending options more often than personal financing options, to support their businesses. We think that’s smart business and it may very well allow the business owner to keep their business even if they have to start over personally.

But of course, the downside is that business owners’ personal credit can impact their business financing. Experian, which sells a credit score that blends the business owner’s credit with the credit of the business, points out that consumer scores work great for assessing consumer risk, but their blended score performs nearly twice as well as a consumer score for assessing business risk.

Posted by Gerri Detweiler | Currently No Comments »

Grab Your Free Chapter!

September 4th, 2008

Garrett Sutton and I contributed a chapter to the Entrepreneur Start Up Guide: Start Your Own Information Marketing Business. Our chapter was about how to finance your info marketing start up, and of course we talked about business credit and creative financing strategies!

Now you can nab a free chapter of the book here. It’s offered by Robert Skrob, the info marketing guru who pulled the book together (in an amazingly short period of time I might add!). And in the true tradition of info marketing, Robert’s offering a bunch of good free stuff for would-be entpreneurs.

We’ve learned a lot from Robert and his colleagues who authored chapters in the book. So if you’ve ever thought about getting paid for that stuff in your head, I would recommend you go ahead and get your chapter (or ideally the whole book!), get inspired, and GET STARTED!

Posted by Gerri Detweiler | Currently No Comments »

Problems Building Business Credit Part Two

September 2nd, 2008

In a previous post, I replied to a reader who is skeptical about building business credit. Here is some more correspondence on this topic:

I appreciate your response to my question. My business is two years old and I have perfect business credit with DNB and an intermediate score with Experian. Additionally, far as personal credit, I did all I could to increase the score.

I have a student loan that will not be paid off any time soon. In the beginning I believed that building perfect business credit would be the perfect solution to my problem. Of course, after I followed the steps I realize ultimately personal credit still plays a factor. I have several trade accounts with small credit lines nothing serious.

But I am looking to obtain a line of credit from $100-$200,000.00 dollars. That is the reason I formed (my corporation) to acquire an existing company. Technically my company is a start up, but through building credit I established creditability of paying on time and my company has matured to the time banks require businesses.

Ms. Detweiler, I’ve been at this for six years with no results. I hired every consultant I can think of. Should I give up? What would you do in this case?

This is a great conversation, because it illustrates some of the myths floating around about business credit. Read the rest of this entry »

Posted by Gerri Detweiler | Currently No Comments »

Don’t miss this free teleseminar series!

August 12th, 2008

My fellow XBanker co-founder Garrett Sutton and I have been asked to be part of a tremendous teleseminar series for business owners. Not only am I presenting during this virtual event, but I am attending these sessions myself as a guest because there is so much I want to learn from the other presenters in this power-packed event. I’ve heard a few of them speak, and there are others I can’t wait to “meet.”

Oh, and it’s free…so how can I resist? How can you?

Here’s the official announcement, but I’ll give you my opinion: if just one of these presentations puts money in your pocket you’re way ahead of the game!

Who Else Wants To Learn ‘Secrets’ That Most Small Business Owners/Online Marketers, Entrepreneurs, Writers and Coaches Will Never Know About How To Really attract more leads, close more sales, set up automatic marketing systems, increase profits, and keep more of your cash each month as you build wealth?!

Give us about 28 hours over the next few months and we’ll force 22 of the world’s top marketing & small business experts to reveal their most powerful, most clever, and most profitable & guarded secrets for unparalleled personal & financial success.

Learn more and register here.

Not sure? Here is an example of what you will learn;

The Freedom Formula author Guru Christine Kloser who will show you “How to Put Soul in Your Business and Money in Your Bank”

Rich Dad’s Advisor Garrett Sutton will tell you about the 5 mistakes most small business owners make when setting up a corporation

Million Dollar Lifestyle Business Coach Melanie Benson Strick shows you 101 Ways to Triple Your Income by Outsourcing Your High Payoff Activities

Branding expert Kim Castle shows you through interactive exercises how brand worthy your business is.

James Roche, (The Info product Guy) will show you how to get paid for your knowledge via his Info Marketing Action plan (iMap program)

PR and marketing expert Susan Harrow will show you How to Get a 6-figure Book Advance

Online Marketing expert Katrina Sawa will tell you what you need to know to get more exposure and clients FAST

Elizabeth Potts Weinstein (CFP(r)& Attorney) shows you an Easy, GUARANTEED System to Take Control of Your Cash Flow in Just 15 Minutes per Week

For full details and to register for the FREE events!

Posted by Gerri Detweiler | Currently No Comments »

Save Your Business in Bankruptcy

August 11th, 2008

My Xbanker colleague Garrett Sutton has written extensively on the value of incorporating a small business, and here’s another reason to do so:

Incorporating can literally save your business.

I doubt many sole proprietors realize that filing for personal bankruptcy (due to medical debts, divorce or many of the other reasons people file) could mean the end of their business.

I didn’t.

But in a recent post on the Bankruptcy Law Network, California bankruptcy attorney Cathy Moran describes a recent case in which a couple who owned a business as a sole proprietorship were in danger of losing it – even though it was doing just fine – because they had to file for personal bankruptcy due to real estate investment debts.

She points out that:

…(the) business was a sole proprietorship. If we filed Chapter 7 now, Chapter 7 trustee’s first reaction to a going business is to shut it down. The trustee is concerned about his liability for regular business debts the operation may incur and the possibility that a customer may be hurt on the premises. The trustee wants to preserve the status quo by shutting the doors, even if there is nothing in the business that he can sell for the benefit of creditors.”

In this case, she was able to incorporate the business to save it.

But as another California bankruptcy attorney Douglas Jacobs points out in another post, waiting until you are contemplating bankruptcy to incorporate your business is risky business. It can be considered a “fraudulent conveyance” and can backfire.

If you haven’t been convinced yet that you need to incorporate, what else can I do to convince you that you need to check it out? It may literally save your business.

Posted by Gerri Detweiler | Currently No Comments »