9 Devastating Financial Mistakes Small Business Owners Make

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Expert Credit Consultants, LLC specializes in establishing business credit and funding using our exclusive Business Credit and Finance Suite. We also do consumer credit restoration and optimization. www.ExpertCreditConsultants.com.

Denied Business Credit?

According to recent reports, as many as one third of applications for business loans are denied. If you find yourself as part of that group, there are some things you can do to help the situation.

The first thing you need to do is try to determine where the problem is. Possible areas of concern may include:

- Your payment histories and business credit profile. Obviously, how you are paying your existing obligations will play a role in your approval or denial for credit. If you’ve been denied business credit recently, check your Paydex and other payment performance data and make adjustments as necessary.

Most payment experience data is only reported for 2 to 3 years (depending on the credit bureau), so if you’ve made a mistake or hit a bump or two in the road, don’t let it worry you. Just keep the positive payment history building, and make sure what is being reported to date is accurate.

- Your bank ratings. If your business bank account balances are habitually low, this can actually rule you out for certain types of business credit. Try to maintain $10,000 or more in your business bank accounts to avoid trouble.

The bottom line, if you’ve been denied credit, is that there is something about your business that makes it appear to be a bad risk.

- Your business profits. Does your business have a healthy profit margin? Improving your profits by reducing and trimming down the operational excess and unnecessary business spending can help improve profits and boost your chances of getting approved.  Are you depositing more than withdrawing in your business checking account?

- Your business assets and liabilities. If your balance sheet is out of whack, most lenders will run the other way. If your business is already heavy on debt, then this will be an area of concern that you’ll want to address.

You’ll need to analyze and understand your business credit report and business finances, determine where the problem is, and take the necessary steps to correct your course.

Sometimes the lack of history or data on your business will be a key factor in a credit denial. This is something that can be easily remedied by taking careful steps to shape your business’s financial picture and credit profile.

We specialize in preparing you and your business for financing. We tell you exactly what lenders are looking for – before you apply.  We look for compliance issues, and then we work with you to get them resolved.

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.

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.

Do you have a Paydex Score?

You probably have personal credit scores established, and you are probably familiar with Equifax, Experian, and TransUnion. But do you have a Paydex business credit score yet?

The main credit score used in the business world is known as a Paydex score provided by Dun and Bradstreet. This number assesses a business’ lending risk much the same as a consumer credit score reflects a consumer’s individual credit risk.

The exact definition from Dunn & Bradstreet, or D&B is: The D&B PAYDEX® Score is D&B’s unique dollar-weighted numerical indicator of how a firm paid its bills over the past year, based on trade experiences reported to D&B by various vendors.

But the key to this definition is “based on trade experiences reported to D&B”. Only approximately 10% of creditors actually report to any of the major business credit agencies. Only 10%. That means you're only building your business credit using 1 in 10 of the credit that you actually obtain!

There are many BIG differences from a business Paydex credit score and an individual FICO credit score. Consumer FICO credit scores range from 350- 850. The Paydex Score ranges from 0-100 with 100 being the highest score you can obtain. While a consumer credit score take a number of factors into consideration, Paydex is calculated based on only one single factor – whether a business makes prompt payments to its suppliers and creditors within the agreed upon terms of payment. This means, you can establish a great business credit score much faster than establishing a great consumer credit score. Also, in order for DnB to calculate a Paydex score, your company needs at least four payment experiences reporting on your company’s Dun and Bradstreet credit file. Just because DnB found your company and assigned you a Duns Number does NOT mean you have a Paydex score.

Having a Paydex business score of 80 or higher is very good, as scores below 70 are not. Individual credit scores are calculated based on a number of factors. The Paydex score is calculated based on only one single factor; whether a business makes prompt payments to its suppliers and creditors within the agreed upon terms of payment. For example, prompt payments will produce a Paydex score of 80. A 70 score reflects paying 15 days behind, 60 score is 22 days behind, a 30 score reflects paying 90 days behind, and a 20 Paydex reflects paying bills 120 days late.

If you own a business, your Paydex score is essential in establishing new credit and continuing to build credit limits exceeding $100,000.

Call us to start the process of establishing your Paydex score and getting approved for $50,000 in business credit with no personal guarantee and regardless of your personal credit quality.

Expert Credit Consultants, LLC specializes in establishing business credit and funding using our exclusive Business Credit and Finance Suite as well as consumer credit restoration and optimization. www.ExpertCreditConsultants.com.

You Don't have to use your Personal Credit for your Business - and you Shouldn't!

 

Most business owners quickly get accustomed to using their personal credit and personal guarantee for their businesses. As a result, most never realize that it IS possible to obtain considerable credit for their business with no personal guarantee or personal credit inquiry – even higher limits than using their personal credit to qualify.

We are a business credit and funding service company dedicated to helping business owners build positive business credit profiles, and then use those profiles to obtain substantial amounts of usable credit. We also can help you repair your personal credit to double your credit options.

We will help you get approved for $50,000 at a minimum - guaranteed. Even if you have horrible personal credit, you could still qualify for $50,000 or more in real usable credit.

If you don’t have a business credit profile created yet, we will help you establish your free D&B DUNS number and start the establishing of your credit profiles. Next, we strategically help you get approved for new credit accounts which are much more flexible than if you used your personal credit, and that report to the appropriate business credit reporting agencies therefore building your business credit profile. After only a couple of months of using those credit items and paying on time, you will start to establish your business credit scores. We will then quickly start qualifying you for credit on revolving terms.

Within a few months you will start qualifying for credit lines with major retailers such as Dell, Home Depot, Office Max, Staples, Sears, Apple, Best Buy and many more. You will also have an excellent business credit score established. Within a year you will be on your way to even more business credit. These cards can be used at any stores just like a normal credit card. It is very realistic that from one year and on, you will continue to qualify for high credit limits in your business’s name with no personal guarantee. Many of our clients continue on to qualify for $100,000 or more in real credit in their business name. All of this is possible for you and your business, with no personal guarantee and no personal credit check.

Call us today to learn more about getting approved for $50,000 in business credit with no personal guarantee and regardless of your personal credit quality.

Expert Credit Consultants, LLC specializes in establishing business credit and funding using our exclusive Business Credit and Finance Suite as well as consumer credit restoration and optimization services. www.ExpertCreditConsultants.com.