Small business ideas for financing during a credit crunch

 

As a small business owner, I feel the pain of the credit crunch caused by the recession. Despite great credit, my company has lost financing options; they have either dried up or become much more expensive.  First, American Express decommissioned my company’s business line.  Second, Capitol One increased my company’s credit card interest rate by seven points. Third, Chase recently sent a letter notifying me that it, too, may decommission my company’s business line and raise minimum payments.  Considering these circumstances, it is increasingly challenging to operate a business, let alone grow. 

As a result of traditional banks refusing to lend, more small businesses are seeking alternative sources of funding.  Two reasonable options are accounts receivable financing and purchase-order financing. 

Business owners: Do you know your PAYDEX score?

As many of you know, I am a business owner, and maintaining my business credit is just as important as maintaining my personal credit.  In the business world, a company does not have a FICO score; instead, it has a PAYDEX score, a rating maintained and calculated by Dunn & Bradstreet.