The Only Business Credit Builder You Will Need
In this course we will cover step-by-step exactly what you need to do to build business credit correctly and if interested, how to and where to apply for maximum funding. By you successfully following each step of our unique blueprint you will structure your LLC or Corporation to be in compliance with many lenders and institutions, you will be prepared to obtain unsecured funding for your business, you will be ready to apply for SBA Loans, you company may be structured so well that you would bring in the best rates and credit limits.
Here Are A Few Perks You Will Enjoy
- A Proprietary Step-By-Step Guide to Establishing Business Credit Correctly
- Email Support
- Direct Access to our Preferred Banks & Lenders
- Access to Automatic Business Credit Reporting Tradelines
- Direct Links to Everything
- Updated & Bonus Content Always Being Uploaded
Here Are Some Great Benefits Our Clients Have Had
- They've been able to separate their personal credit from business credit
- They've save time and money for their business
- They meet any current lending needs
- They're prepared for future lending needs
- They have and are able to obtain available cash in their business when it’s needed
- They've extended their cash flow
- They've lowered their interest rates
- They've built credibility for their business and more...
What Our Members Say…
Jae, retired Army veteran, started his Business Credit journey with low personal credit, a brand new business and the hopes of securing financing to start his Real Estate portfolio. After following our step-by-step Business Credit Builder PRO, Jae was able to secure over $142,000 in unsecured funding. He bought his first AirBnb property below market value, waited and refinanced to pull out equity then used the proceeds to purchase another property. Jae now has a 14-unit Real Estate portfolio and growing.
Why Business Credit is Important for Your Business
Similar to personal credit, business credit determines whether your company can be trusted by the way it manages money. Think of your l business credit report as a gauge for the financial reputation of your business. Here are ten statistics that make the case on the importance of establishing credit for your business.
- 27% of businesses surveyed by the NSBA claimed that they were not able to receive the funding they needed. For those 1-in-4 businesses, the most frequent primary impact that a lack of funding had was preventing them from growing their business.
- 46% of all small businesses use personal credit cards. Many small businesses fail to separate business and personal expenses, according to research conducted by MasterCard®.
- According to the NSBA Small Business Access to Capital Study, 20% of small business loans are denied due to business credit.
- In the first 6 months of 2013, according to Creditera, Dun & Bradstreet had 45 million business credit report requests and Equifax Commercial had 35 million.
- The Nav American Dream Gap Survey, 2015 revealed of small business owners surveyed, 45% did not know they have a business credit score, 72% did not know where to find information on their business credit score and 82% didn’t know how to interpret their score.
- Many lenders consider a business credit score of 75 as “acceptable” making it harder for those with a lower score to get a small business loan according to Small Business by Demand Media 2015.
- The average business needs 12-18 months to improve its business credit score according to Cardhub in 2015.
- Bolt Insurance stated that one in three small business owners borrow money from family and friends, while 75 percent of young firms’ funds come from bank loans and business credit.
- Dun & Bradstreet states 90% of the Fortune 500™, and companies of every size around the world, rely on their data, insights and analytics to streamline operations, manage risk, improve targeting, find quality leads, boost customer relationships and – most important of all – grow.
- Mercator Advisory Group research finds that small business credit cards account for $430 billion in spending, or about 1 in every 6 dollars spent on general purpose cards
Having access to business credit is the lifeline for a business. It enables you to obtain the capital you need to expand, cover day to day expenses, purchase inventory, hire additional staff and allows you to conserve the cash on hand to cover your cost of doing business.
By taking the necessary steps to build business credit, the more financial opportunities your business will have. Banks, lenders and suppliers rely on business credit reports to assess the credit worthiness of a company. With strong business credit, you create a safety net for your business so you should have no trouble gaining access to the business funding you need.
Hear from More of Our Members…
We’re currently helping secure over $1.5M per month in funding for our clients.
6 Myths of Business Credit
There are so many options available to business owners today, you have almost unlimited freedom to choose how to structure and run your company. There are some cases where business owners do not have an option – it is either fact or fiction. There is not a lot of room for error when it comes to company credit scoring, you want to make sure to follow the rules. Owners will benefit from understanding the number of credit falsehood that are floating around, that way they can avoid making costly mistakes.
Myth #1: “Business and personal credit are reported the same.”
This is false. There are three major personal credit bureaus and three major business credit bureaus.
Personal credit: TransUnion, Experian, & Equifax.
Business credit: Dun & Bradstreet, Experian, & Equifax.
Despite the fact that business and consumer data is housed in the same bureaus, the reports are completely separate. The business credit reporting agencies use separate algorithms, score ranges, and data rules for reporting business and personal credit data. Consumer credit is also extensively regulated whereas commercial scores are not regulated at all and company reports can be purchased by anyone.
Myth #2: “I have business credit because I pay vendors and creditors.”
You could have history with 30-60 vendors or creditors, but that does not mean they will show on your credit profile. Not all creditors update to the business bureaus and without knowing the correct ones to use, a firm may be actively using payment terms but look like a shell of a company on credit. We have a complete list of reporting vendors in this course.
Myth #3: “Paying on time will give your business the best scores.”
You absolutely want to make sure you are paying bills on time. However, if you are looking for the best business credit scores try to pay before terms. This might be unrealistic for many companies, but if you are able to pay early your business credit scores will show it.
Myth #4: “Hard inquiries do not hurt business credit scores.”
There is some misconception on the impact that inquiries have on business credit. When a company has an an extreme number of hard inquiries on business credit, it will factor into their scores and drop them.
It is true though, that hard inquiries have much less of an impact on business scores than they do on personal, the threshold for “excessive” inquiries are much less with consumer credit profiles.
Myth #5: “You do not really need business credit.”
Sometimes there is an option to offer a personal guarantee, but that does not mean that the creditor or vendor is not looking at your business credit. Since business credit is unregulated they do not have to disclose to you that they have reviewed your business credit. Existing and potential partners and accounts may reject your company or cancel their account with you after reviewing your business credit. If your business credit is poor or non-existent you present a higher risk since you may appear as if you can’t handle the account or a high risk of business failure. The partner or account is not obligated to tell you why they no longer want to work with you or decided to go with a competitor.
Being able to show strong business scores can also offer you higher limits, show you as a stronger company, and lower risk borrower.
Using your personal credit for your business can also become a problem when you need to use your personal credit for personal expenses. A mortgage lender or creditor might feel your debt load is too high to give you the loan you would like for a home or other personal credit needs. It is important to keep your personal and business credit separate.
Myth #6: “We have been in business a long time, so I must have great business credit.”
One major rule of credit – never assume. Assuming you have credit or have good credit is a dangerous decision. It is also such a common scenario: an owner goes for a loan and finds out that he/she A: doesn’t have any business credit or B: has very low scores due to negative information. Companies get denied and are forced to take higher interest financing or must wait several months before financing is an option. If the owner thought ahead of time and reviewed their credit, they would be able to resolve any issues before it hurt their chances at financing.
Be mindful of your credit
The best thing you can do is pay attention and have a proactive toward your business. Many companies do not realize their credit is an issue until it hurts them, and some choose to ignore it as long as possible. Awareness of business credit has been growing over the years, but we still speak with owners who do not see it as a priority because they do not fully understand how much it can hurt them.