What is "No Personal Guarantee"?

Most business owners use their personal credit and a personal guarantee for most of their business debts. This causes a big problem as the business owner then becomes liable for the business debts. And if the business has financial problems, the creditors then start pursuing the business owner’s personal assets like their bank accounts and home. This can easily be prevented.

Business owners can build credit in their business name that requires no personal guarantee, and no personal liability. This keeps business debts separate from the personal credit, and keeps the business owner safe as there is no personal liability. Many hear that this is available and are very surprised, almost think it sounds too good to be true.

Business Credit is credit that is in the business name. This credit uses the business credit profile and score to qualify, not the personal credit. Most consumers are familiar with regular consumer credit. You can go into a store like Wal-Mart and apply for credit. When you apply they pull a personal credit profile, and then approve you based on the strength of that credit profile and score. You can secure store credit at places like Chevron or Wal-Mart, or you can apply for Visa and MasterCard credit that you can use in almost any store.

Business credit works the same way. You apply for credit at the same stores, and with Visa and MasterCard. But with business credit, when applied for properly, the business credit profile and score are used for qualification, not the personal credit. This means there is no personal guarantee required and no personal credit check.

The secret to success with business credit is you must first start building credit with vendors who report to the appropriate business credit reporting agencies – and most don’t. Once this is done, you then will have an excellent business score and profile that can be used to start obtaining credit in the business name. All you need is a corporation to qualify. And approval limits are much higher than normal consumer credit.

If you don't have a corporation set up for your small company, we can help you get that set up.

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.

12 Steps to Building Excellent Business Credit

Obtaining credit for a business with no personal credit check and no personal guaranty is very appealing.

One might say this is the holy grail of owning a business - being able to obtain massive amounts of funding using the business itself as collateral.

There are many steps to building an exceptional business credit profile. Each of these steps is essential in obtaining business credit with no personal guaranty.

Here are 12 steps you will want to take when building business credit...

1. Make sure you start by incorporating your business and make sure you obtain a Federal Tax ID#.

2. Ensure you setup a business bank account immediately and that the business name on your corporation papers is the same as on your business bank account.

3. Ensure you have a business land-line number that is listed with 411.

4. Ensure you have the proper businesses licenses for your business that you need in your state.

5. Set up a complete credit profile with Dun and Bradstreet but do not pay them the $400 - $800 they will ask you for.

6. Make sure you pay business bills that report to the business credit reporting agencies ahead of the due date. The earlier they are paid, the higher your business credit scores will be.

7. Build solid payment history with many accounts being paid as-agreed or early each month. Building excellent business scores means you have many accounts reporting as paid-as-agreed. So get your credit, then keep using the credit monthly to build a solid profile.

8. Ensure you monitor your business credit files. Keep an eye on your scores and the progress of the accounts that are reporting.

9. Establish a minimum 'low 5' bank rating by establishing and using your bank credit.

10. Open a small business credit line that reports on your business credit profile. Credit lines have high limits and reflect positively on your business reports.

11. Ensure you establish a diversity of credit using multiple store and Visa, MasterCard, and Amex accounts.

12. Ensure you have a well written business plan as many lenders will want to see this to approve you for funding. 

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.