Our focus at Level4Finance is to get your business financed. The major road block to financing is that approximately 80% of small businesses are not yet ready to be approved. Business owners have not taken the time to make sure that they are ready to apply before they submit applications. These road blocks fall into four main categories, and the service we provide is to make sure that your business has completed them all to optimize your ability to obtain financing.
Let's take a look at the four categories for getting approved:
Category 1 - Lender Compliance. There are about 20 items that lenders use in their computerized underwriting approval process. Not all lenders use all 20 items. However, it is best if your business has all 20 completed. A service we provide is to help you make sure these items are completed. They are easy to do and can be done in a matter of days. They are things like making sure your business is in good standing with your State, having a phone number that shows up as a business line in the FCC database, having an address that reports as being a business location in the U.S. postal service database, not using a free email account for your business, and 16 more. We will help you to make sure they are all completed.
Category 2 - Owner's Credit. The personal credit scores of all owners who own 20% or more of your business are a major factor in most business lending approval processes. While not all business finance products use the owner's personal credit in their approval process, you will limit what is available to you if you do not pay attention to your personal credit scores. Part of our service is to help you optimize the personal credit scores of all the owners of your business. The goal of that service is to get your scores at or above 720 with all three reporting agencies.
Category 3 - Business Credit. Our team has been collectively serving business owners for over 30 years and rarely do we meet a business owner who knows if they even have business credit scores let alone what is in their reports. A service we provide is to help you know what is in your business credit reports and to assist you to build strong business credit scores. We do that by making sure your business has what is called a 1-3-5. That is; 1 bank or installment loan, 3 business credit cards, and 5 vendor lines of credit that are in your business name and report to the three business credit reporting agencies. The goal of our service is for your business to have at or above 70 scores with all three business credit agencies.
Category 4 - Business Revenue. Many business lending products look at your businesses ability to service the debt as a factor in approving you or at least a factor in how much they will approval. This is not an area we serve directly, but we work with many excellent business partners where this is their area of expertise. Once your business reaches at least a consistent gross monthly revenue of $20,000 or more many more business financing products will open up to you.
At Level4Finance, our main service is to educate you, the business owner, on all aspects of what is involved in optimizing your ability to obtain business financing. Through the use of our business finance pre-qualification test, our business finance back office system, and our business finance educational videos and workshops, we believe that we are doing the service very well. Our service begins for you by taking the free business finance pre-qualification test. The test allows you to see where you are at now. Once you complete the test, we will show you what your next steps need to be.