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.

 

How Much Are Business Financing Rates?

This is the most asked question we get asked. First of all, EVERY business is different. Second of all, each Funding Program is different.

Lenders will base your interest rates on the amount of risk they expect to be taking on. If you have no collateral, no business credit, and bad personal credit, your interest rates will initially be high.

Other programs don't have interest rates. Their fees may be based on 'points' or a percentage of the total they lend you.

You wouldn't ask a real estate agent "Hey I've never owned a house before but can I buy this one and how much is the payment?" The exact same is true with business funding.

So there is really not an answer to this question.

One thing you should keep in mind about business financing is that even if you pay 10% on a business loan, but it will increase your business by 20%, then the 10% is considered a low interest rate.

By working with one of our Business Credit Advisors, you will start building your business credit. Establishing business credit can be about 10 times faster than establishing personal credit. Then with a good business credit score, you can start qualifying for very good interest rates and much better pay back terms - much more flexible than with personal credit and loans. Our Finance Officers work with just over 2200 lenders offering over 30 different types of business funding programs. They are your very best bet in getting business financing. No business loan broker can offer this many options.

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.

How to Obtain a Small Business Bank Loan

Getting your first Business Bank Loan can seem like an impossible task. The majority of the small business bank loan applications get declined because banks won't lend to just anybody ... or will they?

Having a Business Bank Loan can provide a powerful boost to building business credit fast. This bank loan must be set up correctly and report to the appropriate business credit agencies.

So how do we accomplish this? Under this Small Business Bank Loan Program, you will be securing a business loan with a certificate of deposit (CD) at the bank that is extending the business bank loan. You'll make a deposit into a CD account at one of our preferred lending banks (or one of your choice if you prefer if they provide this type of loan). Then, you receive a business loan for 100% of the value of the CD. The purpose of this loan will be to build your business credit scores.

This process works very well and works every time as long as your personal credit is at least ok. The bank is not basing your business bank loan on your personal credit, but if your FICO scores are in the low 500 range they may not do this deal for you.

So where does your deposit come from? We are not talking about a very large amount of money. You can start with as little as $5,000. There are many creative ways to acquire the money you need for the business bank CD deposit: family, friends, savings, garage sales, or from any of our other creative funding programs. Another option is to build a 'savings account' while building business credit.

The Features of a Secured Small Business Bank Loan

- It will appear on your business credit report just like any other small business bank loan.
- There will be no note in your file, or on your business credit reports, that show it as "secured".
- It will make your business credit report stand out to other lenders and creditors who obviously know how difficult it is to get a business bank loan

A Helpful Suggestion

If you have to borrow the money you need for this step from friends or family, you can assure them that they will get their money back. Here is how that works:

-You borrow the money for the CD to secure the business bank loan.
-The bank then makes you a loan dollar for dollar.
-Deposit the money from the loan or line of credit into a separate account and use it exclusively to re-pay itself.
-After the final payment, you return their money with interest. Remember their money is in a CD earning interest.

This technique gives you a great start towards building excellent business credit scores. We work with several lenders that offer this program.

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.