Level4Finance is dedicated to helping small businesses secure business financing by meeting lender qualifications.
We strive to educate business owners about what it takes to access the full measure of business funding you need to grow and succeed. There is a lot written about business financing, unfortunately, most is either too vague to be of help or simply designed to separate you from your money.
So what is real about securing financing for your business?
We call ourselves Level4Finance for a reason.
There are 4 very distinct levels to qualifying for a business loan. Let's take a look at each:
Level 1 Lender Compliance - We all understand that we are in the computer age. That means technology and information are king. Lenders combined these assets to run a series of automated background type checks on your business' loan qualifications. These Lender Compliance items do not get your business approved, but if they are not in place they will get your business declined.
Level 2 The Business Owners Credit Scores - Since the crash of the US banking system and the complete loss of business financing in 2008 it is an understatement to say "things have changed". The personal credit scores of the business owners is now the first thing that business lenders look at, and it is the most common item used for approvals or declines. Being lead to believe that there are ways around this is a myth and one that is commonly used to charge you large fees based on false promises. Having anyone who owns 20% or more of the business with personal FICO scores at or above 720 is an asset that can be leveraged to qualify for financing.
Level 3 Your Business Entity Having Its Own Credit Scores - A large percentage of lenders are now using your Business Credit Scores as the final determination of if you will get approved, for how much, what length of time you will have to pay, and at what rate. A look has been both real and not real, about business credit scores. What is real is that business lenders, business credit card providers, and vendors extending credit lines all use it to approve your business. So now, just like with your personal credit, you had best be paying attention, monitoring, and building your business credit.
Level 4 Business Financing Programs - There are too many business financing programs out there to count. It would be very easy for you to apply for 5 or 6 in a matter of minutes. That is business financing death. Each application goes on record and creates an inquiry against you personally and most likely your business too. Once other lenders see only 3 inquiries their computers will automatically decline your business loan application. They don't care if you get funded or not. The simple fact that the inquiry is there is enough to decline. The bottom line here is that you must know what funding programs your business pre-qualifies for before you apply.
Taking the business finance pre-qualification test shows you what business funding programs you pre-qualify for now, and your results tell you what you need to do to pre-qualify for more in the future.