What is Business Credit?

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

Top 5 Business Credit Benefits

Imagine having the ability to access $50,000, $100,000, even $250,000 for your business. Now imagine doing this with NO personal credit check and NO personal guarantee.

Your success in business will more than likely be determined based on your business credit profile and score. With a good business credit profile you will have near unlimited borrowing power – unlike personal credit.

Without having a good business credit profile it will be a difficult path to success without having access to working capital and funding. This is why almost all Fortune 500 companies use their business credit to secure funding. It's not that they need the money to operate. Successful companies use funding as leverage to grow their business.

Business Credit is the best kept secret in business. Over 90% of all business owners know nothing about business credit or business credit scores. But when you do discover the power of what business credit can do for you and your business you will be floored at how easy it is to get money and grow your business.

1-One of the many benefits of business credit is that you can obtain funding with no personal credit check. With a strong business credit profile, lenders will lend you money based on your business credit, not your personal credit.

This is excellent if you have personal credit issues as you can still qualify for funding. Even with exceptional personal credit, business credit gives you DOUBLE the borrowing power.

2-You can get approved for much higher funding amounts using your business credit than you would if you used your personal credit to qualify.

3-Another great benefit of business credit is there is no personal guarantee required for much of the funding you obtain. This means you can be approved with no personal liability.

So if you ever do default, the creditor can't pursue your personal assets like your home or personal bank accounts.

4-Business credit adds more value to your business and gives your business credibility. Stakeholders, partners, lenders, even potential buyers of your business will see more value in your business if you have a strong business credit profile established.

5-Most importantly, by having a good business credit profile, you have security. It is much easier to run your business when working capital is easy to come by. Any business with a $150,000 credit line available will have a much better chance of growth than if $0 was available.

Through the Business Credit and Finance Suite, you will be able to secure well over $50,000 in business credit within months.

There is no excuse for not getting the funding you need. But you need to position your business for funding BEFORE you really need 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.

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.