What do they look for: Depending on the type of capital you need to have different things: Start-ups can get vendor/trade credit a lot easier than Bank linesPersonal credit will be relied on more the more CASH lines of credit you wantYou can get financing even with bad credit though.A great place to start is building business credit or trade/vendor credit
Don’t rely on just one thing at a time. Always however have the foundationAlways get Tier1 going Key is to know what the requirements are before you applyWho will offer what type of financing based on the requirementsTier 1 – where everyone should start, get some trade lines under business nameTier 2 – Establish larger lines to build high credit limitTier 3 – Bank lines, LOC , Alternative financingTier 4 – VC, Angels, etc. Lower cost to the money the longer you wait and show a proven revenue model and ability to pay back debt.Why give away equity when you don’t have to.
