The business climate is growing and thriving in Southern Nevada, and 1st Capital Funding Group is helping the economy grow with business funding and assisting with personal assets, including FICO scores.
According to Ashley Carroll, Vice President of Client Relations/Senior Business Finance Consultant, one of the biggest mistakes new business owners make is to use their personal credit score instead of establishing a business credit score. “We assist business owners with our system in establishing credit in the name of the business.”
However, the first step taken after someone reaches out to 1st Capital is to check his or her personal credit report. The FICO score should be 685 or higher, and the prospective client can submit a credit report to 1st Capital so they can assess how to serve the client best.
Staff members, including Carroll, with expertise in the field of funding will work with different clients. Communication can be by telephone or in-person, and, according to Carroll, 90 percent of the clientele served by 1st Capital is located outside of the state of Nevada.
Bank accounts are a part of the business, and there is a difference between a personal and a business account. “An individual will need to provide more documents and information to the financial institution when opening a business account and we can help with that,” says Carroll.
The primary product provided to clients is revolving credit or installment loans with lines of credit for business. “We do not advocate MCA (merchant cash advance) for specific reasons. They are very high interest, and we recommend a business is well established with cash flow to accommodate an MCA loan. Unfortunately, the industry is dominated by MCA loans.”
The next step is the purpose of the funding. “When we speak with potential clients, we ask what type of loan they are seeking and the reason for the loan,” says Carroll. However, it should be emphasized that 1st Capital will not dictate the reason business owners need funding. It could be for working capital, expansion, or inventory. Representatives would like to know the reason to work with their clients and place them with the proper product but it is not necessary.
One misconception is that interest rates are higher for businesses than personal, and that is not always the case. Interest rates are based on FICO score and credit history. Certain institutions may offer lower interest rates based on specific criteria, and one must meet those criteria to be rewarded with those rates. Also, different products dictate different interest rates. The bottom line is receiving the best interest rates are based on credit history and other factors.
The amount needed is also a factor. For example, if there are structural issues that need repair, a business credit card would probably be the best option. However, the majority of clients reaching out are seeking $25,000 in funding, with an average amount being $50,000.
“1st Capital is here to give business owners options since the average individual does not know other choices in obtaining a loan except that their bank. Usually, they are turned down but with 1st Capital can help educate clients on what is needed to obtain a loan,” says Carroll. 1st Capital works with over 100 lenders and types of products.
1st Capital Funding Group demonstrates the integrity and client care of a company that is a member and follows the principles of the Better Business Bureau.