Keith McAslan leverages his experience in building and selling businesses and offers his to Industrial business owners on this weeks Industrial Talk Podcast. In this podcast, Keith lays out the tangible steps for improving and maintaining your credit rating. This is the first step, in a 4 part series, to gaining access to capital for expansion and growing your industrial business.
Issue – Industrial business owners must rely on their own credit rating and personal guarantees to access capital from lenders
Problem – Many times the small business owner who has an immediate need for capital due to their circumstances does not have access to traditional money sources. The business owner either has negative credit or their Credit Utilization Ration (CUR) is too high.
What is CUR? – CUR consists of all revolving credit reported on an individual’s credit file. As an example if a credit card has $1000 limit and you have used $400, the CUR is 40% Many time lenders want to see CUR of 20% or less and unsecured lenders will require each individual credit card CUR is below 40%
Three Step Process to Capital we call the Midas Financial Continuum:
- Step 1 – Merchant Cash Advance (MCA) or Modified Merchant Cash Advance – These are simple interest loans with no pre-payment penalties where the small business owner only pays for what they use and time they have it. These loans typically are easy to obtain and can be in amounts up to $100,000
- Step 2 – If the small business owner has a CUR issue as discussed above they can use the funds provided in step 1 from the Merchant Cash Advance to pay down the various revolving credit facilities below the 40% benchmark level. However, if the owners issue is not CUR but negative credit, most lenders will not even look at a damaged credit file depending how many derogatory items there are. The timeframe typically is the past 1-2 years, as after 2 years the relevance is less important. Midas Financial can work with you and credit agencies to remove items typically in 40 banking days or less. Midas has perfected a process over many years in credit repair so their work takes about ten banking days, then the remainder of the time is a waiting game for the credit agencies to record and notify the business owner that the item(s) have been removed.
- Final Step is refinancing – The business owner now has credit restored and needs to refinance the higher priced loans from the MCA and obtain competitively priced growth capital. As we work with the small business owner through this process, Midas will have been working with several lenders and have collected all the necessary documents to provide the growth capital the business owner needs to grow.
Business owners seeking immediate capital to grow their respective businesses and either have no credit issues or have issues we have discussed today need to contact me immediately at email@example.com or call me at 303-520-2493.
OTHER INDUSTRIAL RESOURCES:
Industrial Marketing: https://industrialtalk.com/industrial-marketing/
Industrial Academy: https://industrialtalk.com/industrial-academy/
Industrial Dojo: https://industrialtalk.com/industrial_dojo/
YOUR INDUSTRIAL DIGITAL TOOLBOX:
Bliss Drive: https://www.blissdrive.com/
Active Campaign: Active Campaign Link
BombBomb: BombBomb Link
Social Jukebox: https://www.socialjukebox.com/