IT’S A FACT: $50 A DAY AND YOU’RE IN BUSINESS annie Oct 31, 2016 0000 IT’S A FACT: $50 A DAY AND YOU’RE IN BUSINESS The Ever Improving Advantage+ Programs with HMI Makes It Easy To Start AND GROW Your Own Business! Paul DelFino The evolving relationship with HMI and Advantage+ now makes credit easily available so you can own and start a new polyurethane concrete lifting business for $1500 a month. (Terms at Blog publishing – 4 year, 10.5%) That means for $50.00 a day you can be in business. HMI has reported that 80% of the applicants they have introduced to Advantage+ have been approved. BEYOND THE START-UP: Possibly more important is the announcement that the new program between HMI and Advantage+ makes Working Capital Loans available to qualified concrete lifting businesses. (Terms at Blog Publishing – 2 year, $5000-$40,000, 9%-12%) Nearly 30% of small business owners who were surveyed by the NSBA noted that lack of credit was the #1 cause of their failure to survive or grow their business. 82% of small business fail due to cash flow problems. Due to bank tightening many entrepreneurs have looked to credit cards to bridge the gap. (Speaking of Credit Cards you may want to view this site for your business. ( https://www.fundera.com/resources/best-business-credit-cards?utm_campaign=small-business-statistics&utm_source=theledger) SMALL BUSINESS CREDIT FACTS: There are 22.9 million small business loans for over 40 billion dollars in the US that are reported. The real number is impossible to know since many entrepreneurs have moved to personal/family loans and credit cards since the economic downturn. Following the economic crises small business loans on bank balance sheets in the US declined 20% while large business loans increased 3%. Regulatory pressure on banks and the costs of processing small loans motivated the banks to tighten despite the fact that more than 50% of the employment creation is driven by small business. As someone who was a lender in prior life through 3 prior recessions I can tell you the trend was predictable. The worse problem is that the rules that helped create the issues never seem to go away. CREDIT SCORE LANGUAGE MADE EASY: I cannot emphasize enough how important it is that you monitor and manage your credit score. That number will be among the most important criteria as to whether you are approved or rejected. You would not check the oil in your generator after it burns up! When you need credit you need it NOW and do not want to be chasing misreporting or old resolved problems that will slow you down or dissuade approval. In most cases, 5 factors are taken into account: Payment history: 35% (Have you paid your bills on time in the past, and if not, how late were they? A single late payment can drop an excellent credit score by 100 points!) Credit utilization: 30% (This refers to the amount of credit you use as a percentage of the credit that’s offered to you.) Age of credit history: 15% (How long have you been a borrower?) New credit: 10% (This means both to the number of credit cards or loans that you’ve applied for recently as well as inquiries into your credit score.) Credit mix: 10% (The different types of credit that make up your credit history, like phone bills and utilities, mortgages, and lines of credit.) THE TAKEAWAY Making it easy is what HMI is about: equipment that is easy to operate, foams that are easy to use, service to make it easy to get help. NOW – making it easy for customer to get into the business and grow their business is easier – it’s a FACT! Paul DelFino is a principal of the consulting firm Opportunity Inc. For nearly two decades he has assisted entrepreneurs in growing their businesses, responding to economic downturns and merger and acquisition activity. He has consulted with HMI and RaiseRite for over a decade. His publications include “Avoiding Skewed Entrepreneurial Strategies” available from all on line booksellers.