Separating your personal credit from that of your business is important for several reasons. First and foremost it alleviates the personal liability should the business suffer financial distress. Secondly, it keeps the business from suffering from personal financial distress. Keeping personal affairs and business separate provides business owners with the most opportunity for success.

No, in corporations with multiple partners and shareholders there is a designated managing partner or partners. That person is legally able to apply for and secure credit on behalf of the company. If Personal Guarantors are required by potential creditors individual shareholders or partners may elect to be included.

Time frames vary when establishing Business Credit based on the specific circumstances of each individual company. But, for 99% of companies, it takes a minimum of 4-6 months. If an individual has a better than average FICO Score and is willing to sign as a personal guarantor to obtain Business Lines of credit, then it will be a shorter time frame than individuals who do not have a personal guarantor. Remember this is a long term relationship and a tool that will be used for the entire time the business is opened. Patience and careful planning is important. That is why E-Fix Credit Specialists are trained to assist our clients with each and every step of the process.

In financial terms capital means money available to use for business purposes such as leasing a space, leasing or purchasing equipment and supplies, paying salaries, and overhead.

Referencing an old saying "pull yourself up by your bootstraps," bootstrapping is using your own financial resources such as money from a savings account or use of personal credit to achieve your goal. Why is bootstrapping the most personally risky? Bootstrapping assumes all of the liability for anything going wrong. The liability is not shared with partners or investors and can be the most devastating if the venture does not prosper.

As we have discussed in many of our previous questions, personal credit is not a prerequisite for business credit, although having a good personal credit score can make obtaining business credit easier and quicker. So the answer to this question is yes. However, business credit is intended for business use and is not a substitute for personal credit. By learning how to manage money, use credit wisely and properly structuring a business, our E-Fix Clients are able to build a strong financial foundation both personally and for their business, no matter what their situation.

There is no set limit on how much credit a business can obtain. Large corporations with established positive payment and credit history have credit lines in the millions. At E-Fix Credit, we believe the goal for any company should be to have at the ready enough credit to run its operations successfully. Cash flow in business has an ebb and flow and being able to keep inventory, supplies, payroll during times when cash flow is low is vital to the sustainability of any company. But like personal credit, businesses should use credit as a tool, carefully and respectfully and not rely on it as a regular means of survival. Creditors will extend larger credit lines once a business has proved itself deserving.

In order to establish credit that is separate from your personal credit the first step is formalizing the structure of your business and establishing an entity that is separate from your personal assets. One of the most important steps before establishing business credit would be structuring your company according. This component will deem your company to be established and credit worthy.

No, in corporations with multiple partners and shareholders there is a designated managing partner or partners. That person is legally able to apply for and secure credit on behalf of the company. If Personal Guarantors are required by potential creditors individual shareholders or partners may elect to be included.

When cashing in on personal relationships for financing misunderstandings and broken promises can have long term effects that are more than financial. By setting clear expectations and having all parties put those expectations in writing, misunderstanding can be kept to a minimum. We encourage all scenarios be addressed in advance to reduce the risk or jeopardizing relationships permanently. When inviting friends and family they should be aware that the money is an investment in you and not just your business.

Quite simply "Capital" is money and "Venture" for this purpose refers to a "New Idea or Business." So, "Venture Capital" is money for a new business or idea. Venture Capitalists firms are financial institutions that take money that their clients entrust to them to invest in new businesses or expansions of businesses. Many Venture Capitalist Companies have billions to invest, but they are usually looking for larger investments that will pay big returns to their customers. There are smaller Venture Capitalist Companies; but, even they are usually looking to invest in larger projects. Pitching your ideas to a Venture Capitalist is something that should be done carefully and after significant research has been done and a strong business model has been created. E-Fix Credit has the professionals available to help do just that. We also have a strong network of lenders who are looking for new investment opportunities.

In financial terms capital means money available to use for business purposes such as leasing a space, leasing or purchasing equipment and supplies, paying salaries, and overhead.

Referencing an old saying "pull yourself up by your bootstraps," bootstrapping is using your own financial resources such as money from a savings account or use of personal credit to achieve your goal. Why is bootstrapping the most personally risky? Bootstrapping assumes all of the liability for anything going wrong. The liability is not shared with partners or investors and can be the most devastating if the venture does not prosper.

A Shelf Corporation is a Corporation that has been setup by a third party and is for sale. It is a legally structured company with an established credit history, payment history and physical address and contact information. The reason it is a called a Shelf Corporation is that it was created and then stays mostly dormant on a "shelf" until it is called upon, sold and used by its new owner. Can using a Shelf Corporation provide me greater opportunities for funding? If the Shelf Corporation you purchase has been setup properly and has an excellent Paydex Score and Credit History with Dunn and Bradstreet, Business Experian, and Business Equifax then as its new owner you will present to potential investors in a very positive manner. There will be little need for personal guarantees, thus eliminating the effect of personal bad credit on funding opportunities. E-Fix Credit has a wide network of partners with Shelf Corporations available for your consideration.

Government Grants are monies set aside in local, state and federal government budgets to supplement businesses that meet a certain criteria. Some grants are designed to support businesses, some are designed to encourage new businesses and some are designed to fulfill a specific need in the marketplace. Grants do not have to be paid back. They are not loans. To find out what grants are available requires research at all levels of government. The internet facilitates such a search and there are some websites that have consolidated open grants for their customers to use. Those sites often charge for the service, but it may be worth the fee in order to reduce the amount of time necessary to search each specific government entity. Grants require an application that is usually accompanied with supporting documentation on how your proposal will fulfill the requirements of the grant. This is a fairly involved process; it requires time, diligence and patience. But the rewards can be significant.

Angel Funding and Crowd Funding are very similar in nature. These campaigns have become more and more prevalent with the advent and advancement of social media and the internet. In these types of campaigns individuals and businesses can post their ideas for a service, product or business and their plans to turn those ideas into reality. Interested investors can read the Campaign information and decide to invest any amount in that idea. Some investors might invest as little as $1.00, but added together even the smallest of donations can grow to a number large enough to fund your business. These investors can expect a wide variety of returns on their investments from recognition, to repayment of investment plus interest, to equity in the business. Each campaign is different and is designed by the person setting up the campaign. E-Fix Credit has professionals able to assist our clients in setting up campaigns, choosing the right hosting platform and making the most of this opportunity.

By not structuring your business properly and by using your own personal credit as your only credit, lenders do not see a business. They see a person who does business. Properly structuring your business and pursuing business credit legitimizes your business and establishes it to lenders and vendors.

Funding is usually based on need and successfully obtaining funding is usually based on how well your business plan and funding campaign is structured. Whether you are seeking funding from a Government Grant, Angel Funding Web Campaign, Crowd Funding Web Campaign, Investors Meeting, or from a Venture Capitalist, having your information ready for potential investors to read and understand is key. Having numbers, statistics, data combined in a clear visually appealing medium makes it easier for potential investors to understand your needs and understand their potential to recoup their investment. Making sure you have a complete understanding of your business proposal and answers to potential questions will inspire investors and make them more willing to fund your project.

Capital can come from a lot of different sources. Some capital comes as a gift, some as a loan, and some in exchange for a stake in the business. Below are some of the ways in which capital can be raised. Personally Raise Capital: 1.) Use your Savings Account 2.) Cash in your Investment or Retirement Account 3.) Borrow money from your Credit Cards or Home Equity 4.) Sell something you own of value: Car, Home, Jewelry, Land, Antiques, etc. 5.) Work and save money Outside sources of capital: 1.) Conventional Bank Financing 2.) Government Loan or Grant 3.) Peer to Peer Financing or Crowd Funding 4.) Supplier/Franchise Financing 5.) Micro financing 6.) Bartering 7.) Friends and Family

Yes, it is. Unless you structure your business and take the steps necessary to use business credit, you will be operating your business solely based on using your personal credit and payment guarantee. E-Fix Credit can help you eliminate the need to use yourself as a Personal Guarantor by helping you set up your business and establish business credit.

No. If you have structured your business successfully, you will need only to be able to provide financials to potential lenders, investors and/or creditors. An audited Profit and Loss statement and Balance Sheet may be required, but if you have kept your information organized and up to date, doing so will be easy. E-Fix Credit has the know how to mentor our clients and help them create a record and bookkeeping system that will facilitate not only regular financials but also easy to file taxes.