Business Creditworthiness

 Criteria for Business Creditworthiness

Creditworthiness is probably the single most decisive factor whether companies will lend, increase line of credit, or sell to a business. Creditworthiness is not only based on your company's business reputation but also the company's overall financial strength. Banks, suppliers, and others who provide credit for your business, will examine the business credit report to determine the company's creditworthiness.

Your company's creditworthiness depends on 4 basic criteria,

• Financial strength
• Character Traits of the business
• Economic environment

Financial Strength

The financial strength of the business is one of the most important variables to infer creditworthiness as it measures whether the company has the financial resources to repay its creditors. Fundamentally, it is the financial resources available to the business, which could be in the form of cash, funds from debt or investment. Business capital can be in the form of short or long-term. Short term Working Capital is the measurement of the availability of liquid assets of a company has to fund its day-to-day obligations, such as,

• Repayment of interest on loan
• Bill payments to suppliers
• Employee salaries
• Tax liabilities

These are elements in the business cycle that can quickly absorb cash. If working capital dips too low, a business risks running out of cash. The availability of a bank credit line is often used to smooth out peaks and valleys of a business cycle.

Long-term capital is usually a loan obligation with maturity date that is more than 1 year. When utilize properly, a company can optimize the use of the borrowed money to finance long-term investments and use the earned profit to pay for the interest of the borrowed money.

Lenders also calculate specific financial ratios to determine where the business stands within the industry and in comparison to other businesses that are similar in size. This portion of the credit business report closely examines the financial statements for items such as; working capital, debt to equity, cash flow and net worth.

Character Traits of the Business

Lending institutions compose an evaluation on whether the business has the management ethics to stand behind its business transactions. Character in business consists not only of ethical attitudes (such traits as high moral values, diligence, determination, confidence, perseverance, responsibility, resourcefulness, trustworthiness, efficiency, and respect), but also the company's credit history and other operational traits.

Business character is frequently determined by analyzing the credit history or credit score of the business. To acquire a business FICO score a business will require at least 4 trade references. Factors affecting a business credit score include:

• Timeliness of payments
• Unpaid accounts
• Outstanding debt
• Available credit

Although credit history is major factor, there are other factors used to judge business character and they include:

• Owner's know-how and experience
• Structure of business
• Size of business
• Years in operation

Economic Environment

The economic environment surrounding the business will have external events that can affect the operations of a business. These circumstances are all examined by the lending institution to determine creditworthiness. These external factors will include the overall economy, growth within the industry, government regulatory changes and more.

The business credit score is used by creditors to establish the risk versus reward of granting a business credit, and is also used to establish the interest rate on loans and business lines of credit. As the business credit report affects the operations of the business, it is within your best interests to build an excellent credit rating.

As it is with the individual credit scores, it is important to review your business credit profiles from credit bureaus at least once or twice a year. Make sure the information is accurate. Upon finding errors, contact the appropriate bureau and report the errors immediately with proper documentation.

Microsoft Software For Better Business Solutions

Today businesses have unique challenges within the company and in the market to overcome in order to stay competitive. Now, advanced technology has become an essential tool to increasing business opportunities, helping businesses make more informed decisions, and adapt to constantly changing markets and trends. Businesses need the computer technology to understand their customers, reach new customers, streamline operations, identify risks, and open new business and opportunities. To meet the new business demands and challenges, Microsoft now provides business software to help businesses maintain a competitive edge.

Microsoft has a wide variety of business software to meet demands. For instance, Microsoft offers such business software as: Office 2010, Office Project Professional, Office Visio Professional, Office Web Apps, Office Live Meeting, Office Live Small Business, Office Live Workspace, Windows Small Business Server, SQL Server 2008 R2, Dynamics CRM, Dynamics RMS, Dynamics GP, Dynamics NAV, Dynamics SL, Microsoft Exchange, and Microsoft SharePoint.

Whether it is a small, medium, or large business, Microsoft software allows businesses to achieve such goals as: gaining better business insight into operations in order to make quicker and more efficient business decisions, gain real-time access to business information to operate more efficiently, and gain the ability to better analyze projects. As well, businesses can effectively monitor sales, improve fiscal management, improve inventory monitoring, reduce production inefficiencies, improve communication, and better simplify management tasks.

Microsoft business software allows a business to decrease operational expenses, make desktop and application managements much simpler, decrease costs for managing inventory, provides IT staff with the right resources to make operational systems more efficient, improve customer service, minimize disruption in services, and create a dynamic and cost efficient business infrastructure. The result of improved business efficiency is reduced operational costs, improved profitability, and more solid business management.

Microsoft business software allows a business to integrate all of the business data into an easy to access and use database so businesses can analyze the information more productively and make informed real-time decisions that benefits business operations. Their software is scalable, customizable, and designed to help automate unique business processes and make it much faster for a company to achieve success.

Microsoft's software helps businesses improve their bottom line by making more efficient reporting, reducing infrastructure costs, reducing ongoing support costs, boosting worker productivity, and boosting working capital. As well, a business will be able to improve inventory management, reduce the time it takes to get products to the market, trim down administrative overhead costs, reduce communication costs, and reduce employee hiring and training costs.

In today's competitive business environment, effective business software allows companies to rapidly identify, take action, and learn and adapt to new market trends and new business opportunities. Microsoft software for business solutions helps businesses leverage their resources and address today's business challenges. By identifying key relationships and problems, and then implementing the proper strategies and applications, a business is better able to maintain profitability and compete in a highly competitive market. Microsoft software is essential for achieving better business solutions.

Is Market America a Legitimate Network Marketing Business

Headquartered in Greensboro, North Carolina, Market America was founded in 1992, and is a product distribution and internet marketing company. They service more than 3 million preferred customers, and have over 180,000 Distributors and UnFranchise Business owners in their network. Since their inception, they have generated over $3 billion in sales, and have paid out over $1.8 billion in commissions and bonuses to their distributors and business owners. Market America employs more than 500 people globally.

The Market America Business Model:

The Market America business model is dependent on network marketing to grow your business. When you become an entrepreneur of Market America, you will be supplied a Web Portal. Through the use of this Web Portal, Market America tracks the buying habits of customers in order to match products to the individual customer. Through this Web Portal, customers have access to over 35 million different products or services, whether that be Market America brands or brands from partner stores. Based on the amount of products and services that they offer, they are three times larger than Amazon.com, and are the largest internet shopping website on the net today.

Market America offers a business opportunity that they call the UnFranchise Business. They have given the business this unique name, because you receive all of the support and training of a franchise, but do not have to pay a franchise fee. Additionally, instead of receiving a franchisor royalty, you will be paid commissions based upon the amount of sales that your Web Portal is able to generate.

Can I make Money with Market America?

The Market America business model is based upon a BV or business volume system. BV represents 80% of every dollar spent by a customer via your Web Portal. For example, if a customer spends $100, that represents 80 BV. When you first become an UnFranchise Business owner with Market America, you will need to find 2 other business owners to join your team. You will put one on your left, and the other on your right. This will activate your business, and you will not be able to collect commission checks until you accomplish this. Once your business reaches 1200 BV on the right side, and 1200 BV on the left side, a $300 commission check will be released to you. The more BV that your business generates on the left and right side, the larger your commission checks. Once your business reaches $109,000 per year in commission checks and bonuses, your business will max out. Once this occurs, then you are expected to start a brand new business, and duplicate all of your original efforts in your first business, if you have a desire to make more.

When you become an UnFranchise Business owner, you will be expected to have hotel meetings, share your business with family and friends, promote home meetings, and host product shows. If you have no problem doing the following activities, then Market America might be a good opportunity for you.

In my opinion, Market America does offer a legitimate business opportunity. Although, the compensation plan does not seem to be a very lucrative one compared to the amount of efforts that are expected from you. With that being said, this opportunity is not a scam.

If you are new to network marketing, or any business that is dependent on marketing efforts, I encourage you to enroll into a reputable online marketing course. This course will teach you the techniques and strategies that are used to market any business online. In my opinion, for the average person, it takes much more than family and friends, hotel meetings, or house parties to make a business of this nature a success. In our modern world, you need to utilize the power of the internet to market any kind of business. If you learn the strategies that are used by top online marketers, you can make any legitimate business opportunity, including this one, a success.