50 % of small businesses will fail in their first year.
95% of small businesses will fail by their fifth year.

The main reason for these failures is money–and the largest single factor is poor or deteriorating credit (more…)

Small businesses are the major driving forces in our economy. So why then do 50 % of small businesses fail in their first year, and 95% by their fifth year? The answer is simple: they run out of MONEY!

Dun and Bradstreet, where lenders turn when deciding how much credit they are willing to give you for your business, compiled these most frequently asked questions about the important subject of business credit.

1. What is business credit?

Your business credit record is the primary way that companies evaluate whether to do business with you-and on what terms. Companies rely on your business creditworthiness to make critical decisions, including whether:

• to sell to you
• to lend you money
• you are viable as a partner
• to lease the equipment you need to grow your business
• to increase your line of credit
• to help you carry more inventory at competitive prices
• to give you favorable financing rates and terms
• you stack up favorably against other companies competing in your market space

This type of information is listed in your business credit profile, along with scores and ratings that are derived from your businesses past behavior to predict its future behavior. For example, your ability and willingness to pay your bills on time in the past is factored into your ability and likelihood of paying your bills in the future.

2. Why is business credit important to my business?

Good credit is the lifeline of your business. It enables you to obtain funding for things like expansion, capital expenditures, research and development and staffing. It is the principal contributing factor to your business’s future growth, not to mention the cash necessary for survival.

Good business credit also allows you to keep the cash you have to cover your cost of doing business; such liquidity lets you respond quickly to time-sensitive requirements, without halting or compromising operations.

It’s not just about getting access to financing; business credit has increasingly become the primary vehicle for setting terms on business loans, determining insurance premiums, even setting lease payments. Good business credit can earn you lower rates, strengthening your cash flow.

Wham, Bam!! Mortgage rates are dropping to record lows with no end in sight.

On Thursday, the 30-Year Mortgage rate dropped to a record 4.94%.

How low will they go?

The big question is when will this “shot in the arm” stimulus be taken advantage of by enough homeowners to make an impact on reducing the inventory of homes on the market.  The 1-2-3 punch is 1) low interest = low payments attract new home buyers; 2) lower interest can help existing home owners that qualify reduce their payments to help with their cash flow; 3) lower interest brings in more investors to pick up homes for rentals now and appreciation in the months to come.

Click Here for the complete story on MSNBC…