Business Credit, sometimes referred to as Trade Credit, is credit that is established under a business's name
instead of the owner's name.
Business credit permits a business
owner to use their business credit profile and score for financing - NOT their
personal credit scores.
All too many small to medium sized business
owners know nothing about business credit so they end up funding their business
using their personal credit until they can’t obtain any more personal
financing. Then they are in serious trouble, their personal credit is shot,
they lose their personal assets, even file personal bankruptcies, all to get
rid of business debt. With business credit, this doesn’t need to happen as the
business owner them self isn’t liable for the business debts, only the business
is.
Having
business credit will provide any business owner with some major advantages.
For
one, the business can obtain A LOT more money in approvals. The Small Business
Administration states
that
business credit approvals are typically 10-100 times higher than consumer
credit approvals.
There are also many sources that
require no personal credit check. So, even business owners with challenged
credit can be approved for thousands of dollars of credit for their businesses.
Business
credit can be built quickly, much faster than consumer credit. It takes 6
months for an initial consumer credit score to even be established. Then, since
the length of time you’ve had personal credit factors into the score, it could
take years to have an excellent personal credit score. With business credit, it
is very practical for a business to have an excellent business credit score
within 90 days or less, then build that credit to a point where the business is
getting $10,000 credit card approvals within 6 months or less.
When built the right way, the owners can commonly qualify with no personal guarantee (PG).
No PG means business owners can access cash for their businesses without the
personal liability. That
means in case of default, the lender couldn’t pursue the personal assets of the
business owner. To qualify for most business credit sources with no PG, the
business must have a positive business credit score established with the
appropriate business credit reporting agencies. The two most commonly used
business credit scores are the Paydex score from Dun and Bradstreet and the
Intelliscore from Experian. And, again,
you will need credit with all the major business credit agencies, not just one.
Once a positive business credit
score is established, many merchants will then approve the business owner for
credit in the business's name. Thousands of major merchants offer business
credit. But most don't promote their business credit programs, so they are
difficult to locate. In addition, only approximately 10% of vendors report
business payments to the business credit bureaus unless the owner is late or
defaults, which is why the majority of small to medium sized businesses have
either no business credit or bad business credit. Just a few of the merchants
offering business credit that we can help you obtain for your business include
Chevron, Dell, Staples, Best Buy, Apple, and Lowes. Once business credit is
established and paid as agreed, the business credit limits will continue to
increase and businesses can then be approved for even more credit as well as
cash loans in the business name.
It is
very practical to build your business credit to where you can obtain $10,000
limits with major credit card accounts within 6 months. Just pick up the phone
to call us and get started.
Business
credit is one of the strongest assets any business can have.
Don't
be one of the 95% of small businesses that fail within the first five years
because of lack of funding. Eventually you WILL need to borrow
money for your business. Secure it BEFORE you need it.
Expert Credit Consultants, LLC specializes in establishing business credit and funding using our exclusive Business Credit and Financing Suite as well as consumer credit restoration and optimization. www.ExpertCreditConsultants.com
