Why not try to obtain funding by yourself? You can, if you can answer the following questions with “yes”.
Do you know where to get funding?
The answer was simple in the past, but post recession, funding is very difficult to attain for startup businesses or expansion of companies that do not have 5 million in assets, 36 months consecutive months of positive cash flow, and very high PayDex and personal credit scores. For this reason, you must have established relationships with multiple banks to attain high amounts of business funding. So the question you want to ask yourself is: Do you have established relationships with several banks you have worked with in the past?
If yes, do you know how to simultaneously apply to all these different banks so each bank you apply to does not see that you’re inquiring with other banks? Do you know how to negotiate with these banks to increase the lines of credit so you are left with a high amount of funding for your business?
I could keep going with questions to ask you about the details of attaining funding, but as you can tell, attaining high amounts of business funding can be very difficult if you are not working with the right company that has the expertise and experience to get you what you want.
Do you know if you are ready for funding?
Most people think credit is easy to understand. Take negative accounts off. Add positive accounts on. Then, apply for funding. Unfortunately, is not that simple. For example, do you know the balance that you need to maintain in order to apply to different banks for business funding? Do you know which negative accounts on your file could be problematic for attaining funding? Do you know if you have enough credit card history to apply for funding successfully? Last but not least, do you know what banks look for to approve you for high lines of credit for your business?
If you do not know the answers to these questions, do not feel bad. I know experts that have been in the funding industry for several years and they still are working on answering these questions adequately. But this is one of many reasons why you should be working with a company that has the expertise to get you what you want. But let’s keep going.
Can you time this correctly?
There is no overnight solution or magic trick to fixing your credit and attaining business funding. There is an order. Once you ensure everything is done chronologically, then you must time it correctly. Do you know if negative accounts will reappear on your file in the middle of applying for funding? Do you know how long the authorized user trade lines will last on your file? Do you know if your funding company has enough time to negotiate with multiple banks to increase the lines of credit on your file?
This is the number one reason why individuals should not fix their credit and apply for funding on their own. Just like the general contractor is used to build a house in a timely fashion organizing the company that pours the concrete, the carpenter, the plumber, and the electrician, you want to have a general contractor for your credit and for funding. Timing is very crucial to the point that if it is not done right the first time, you can waste money as a result.