Terrible advice you have to avoid when building business credit. Hey Ty Crandall
here with Credit Suite, and I spent 20 years of my life helping business owners get credit
and financing, and along the way I've seen a lot of overnight gurus come into the space
and give some of the worst advice I've ever heard, as a matter of fact, if you take this advice
you'll often times add years to the business credit building process or even worse you'll halt
the business credit building process all together, so during this training we're going to talk about
this terrible advice we're going to talk about what you need to avoid and the right information
you need to know to be able to condensed years of business credit building to only months. Plus
at the end of this training, I'm even going to get you access to a shortcut guide that will help you
exponentially get better results and get them faster, we've got a lot to cover, so let's dive in.
The first terrible piece of advice is that you don't even need to have a business credit
profile score. Look business credit is as important to your business getting money
as your personal credit is to you getting money as an individual, if you don't have any personal
credit established or bad personal credit it's really tough to get the credit financing you need
as an individual. Same applies for your business if you don't have business credit established
or if it's bad it makes it really difficult for your business to get the money it needs to grow.
All kinds of financing uses business credit quality to determine if you should be approved
how much you should be approved for, and the rates and terms you'll pay, cash flow financing where
you can get money quickly and easily for your business takes into account business credit quality.
Term loans that give you longer terms, lower interest rates where you can get more money to
have cheaper payments, SBA loans, corporate credit cards, gas cards, auto financing all of this can be
obtained in a lot of cases without personal guarantees without personal credit checks just
because you have business credit bill, and in other cases even with a grant guarantee needed you can still get
maximum money with good terms just because you have your business credit established, but when
you don't have business credit established it's an uphill battle to get the credit financing you need
because you're not giving lenders and credit issuers any history to look at of how your
business pays its bills. If you want to get away from personal guarantees and if you want to give
yourself the chance to getting the most money the best terms, you absolutely have to establish your
business credit profiling score. Another terrible piece of advice that I hear is that you don't even
need a business. Look we're in a world where the gig economy is blowing up. There's more freelancers
now than there ever has been before, and a lot of times if you want to become a freelancer maybe
you already are if you want to take advantage of the gig economy you need to still have a business.
Look you can be a real estate agent and work for a brokerage without setting up a separate entity, but
a lot of agents in that space are also discovering that they can set up their own entity and get a
lot of benefits as a result, not only does it help separate some liability give you more credibility
as well, but it can also set you up to get credited financing having your own entity setting it up
where it's fundable is crucial to being able to get money to then fund that endeavor, so it
doesn't matter if you're a real estate agent or a freelancer or taking advantage of the gig economy,
or anywhere else where you might not actually need an entity set up just by setting up the
entity by setting up the actual business sets you up to get all kinds of credit financing including
business credit. Another terrible piece of advice that I hear, is to just go apply for business
credit cards that's one of the worst things you could do for many different reasons. First
of all a lot of different sources offer a lot of different cards such as Chase or Bank of America,
and you need to know the difference between these cards, some require a personal guarantee
where you're personally liable for that debt others you can build the business credit profile and
score for and get without a personal guarantee even without a personal credit check. Some have
points and rewards that are more powerful than others some have points and rewards in sectors or
different places like travel that you're probably going to have a greater interest in having.
Some cards have no 0% intro rates some have 0% for up to 18 months, there's even
programs like credit line hybrid where you can get 0% financing, get multiple credit cards
and lines and stack them at the same time, get upwards of 30, 50, 100, 150,000 in funding and you
can even take the cash out and take the cash out at 0%. Plus some of these programs like
credit line hybrid you're even able to get into and build business credit at the same time because
the credit cards you're getting are reporting to the business credit reporting agencies. There's so
many options there's so many variables of the type of credit cards that you may get and you really
want to know exactly the path to getting the right kind of cards to get away from personal guarantees
to get away from personal credit checks and to get credit cards that actually are based on your
business funding itself instead of it needing you to come in as a guarantor or a signer or
even worse, get cards that don't give you the points the rewards the zero percent rates that
you really want to have that make it easier to grow your business, so don't go out and just start
applying for business credit cards as a matter of fact, at the end of this training I'm going to get
you access to a resource that makes it easier to be able to quickly get business credit cards
without the guarantee without the credit check that will also help your business fund itself.
Another piece of terrible advice I hear is to get as many accounts as you can as fast as you can
that's the worst thing you want to do, look the credit bureaus lenders and credit issuers quickly
can look at a business credit report and see what you're doing, they can see that you got a lot of
credit in a short period of time they can see that you're minimally even using that credit and
then as a result they don't want to give you more credit they don't want to give you financing they
don't want to give you high limits on the credit and financing that you actually may be issued as
a matter of fact, the business credit reporting agencies including D&B Equifax and Experian
all have recommendations of credit right on the business credit reports and lenders and credit
issuers look at these credit limit recommendations to determine how much money you should be given,
so if you want to get the maximum amount of funding then you need to understand how this works
so the credit bureaus see a credit profile and score they want to see and then recommend you for
higher amounts of credit and that doesn't happen because you're applying for mass amounts of credit
in a short period of time, it happens because you're actually getting credit that you're really going
to use to grow your business, you're getting credit you're applying, you're getting approved then
you're using the credit and the credit bureaus reflect on their reports, the highest amount of
credit you've used then lenders and credit issuers see that not only have you been issued boot credit
but you're actually using this credit and in doing so they want to give you access to more money
with higher limits, this is the key to getting high limit accounts very quickly it's not about getting
a lot of accounts very fast it's about getting accounts you're really going to use and then
using them to grow your business once lenders are credit issuers see that they want to give you more
money and they want to give you higher limits as well. Another terrible piece of advice that I hear
is that you don't need to use credit cards to pay a lot of the normal things in your business
such as advertising or marketing that's very true, we spend over a million dollars a year in
Facebook and Google Ads alone, but here's the key we use our credit card to actually buy for those
ads that doesn't mean that we don't have the cash to pay for them we could maybe just like you take
the money from our bank account to pay Facebook and Google for those ads, but we don't here's why
because by using a business credit card to actually pay for those and a credit card
that reports to the business credit reporting agencies the credit bureau reporting agencies
lenders credit issuers everybody that's accessing those business credit reports sees that we're
spending that million plus dollars and when they see that they want to give us more credit they
want to give us loans, they want to give us credit lines because they know we're
going to use the credit cards loans and credit lines, and they also know that we actually will
pay them back that establishes a history that helps make us more bankable it helps make us
more lendable, but if you're using just a debit card or you're writing checks to pay for a lot of
the same expenses, well then you're not creating a history that lenders and credit issuers could look
at they oftentimes might not even know that you're spending that large amount of money on marketing
advertising it's not working towards your favor and helping you become more bankable to open up
the doors to getting even more credit financing in the future. So the key is that you really want to
use credit cards to pay for as many things as you can even if you pay those credit cards off before
interest accrues and more importantly you want to do this with business credit cards that report to
the business credit reporting agencies because it helps you further establish your business credit
shows lenders and credit issuers that you're spending that money and opens up the door for
lenders and credit issuers to want to give you higher approval amounts and approve you for more
credit lines more loans and more business credit cards. Another terrible piece of advice that I hear
is that you have to provide a personal guarantee on credit and financing, well that is somewhat true
look there's a lot of financing out there like SBA loans and term loans that may always require that
you have a personal guarantee until your business gets to multiple eight or even nine figure levels.
But there's also a lot of other credit financing that doesn't require a personal guarantee,
so for example, if you're willing to pledge some kind of asset as collateral there's all kinds of
asset or collateral based funding that you can get without a personal guarantee. So if you have Stocks,
Bonds, 401ks, IRAs even Equipment or Inventory in a lot of cases you can get all kinds of financing
without providing a personal guarantee, plus you can build your business credit profile and score
following the right steps and do it fairly quickly and get all kinds of revolving credit cards again
without a personal guarantee and without a personal credit check, you can get started
with small starter vendor accounts like Grainger and ULine you can then grow to getting credit
with almost every major retailer including Amazon Walmart Home Depot Lowe's Best Buy and many
many many others, you can grow your business credit to get bank credit cards that are VISA
MasterCard even auto financing all without a personal guarantee and credit check, so you want to
make sure that you get as much credit financing as you can without the personal guarantee that way
you can save your personal guarantees for other kind of financing where it may really be needed
like the coveted SBA loans, another piece of terrible advice I hear is that you can actually do
this all on your own. Absolutely, you can look you can fix your own electrical problems you can fix
your own plumbing, but the reality is no matter what it is in this world you take on if you're
relying on experts that have done it thousands or tens of thousands of times you're almost always
going to get better results and get them faster and that's the same with business credit building.
Well, if you're listening to an overnight Guru who's had some success with their own personal
credit I promise you their experience is not going to be the same as what your experience will be,
but if you work with somebody that's worked with thousands or even tens of thousands of borrowers
and entrepreneurs to help them through this process well then you're going to take years
of business credit building and condense it to only months, you're going to get significantly
better results which means more approvals and higher limits and better terms and that's the
key to getting you the money you need at the best terms to be able to grow your business even faster.
So what do you do now? If you want to avoid all this terrible advice, well then get access to
our free resources, if you click the link in our bio we have free resources that will help
you through the process condensing years of credit building to only months, it would help you get past
all this terrible advice and get the shortcuts to have better success and have it even faster.
So make sure you check the link in our bio and by the way, if you got value from this training
make sure you like and subscribe and keep your eye out for our next training where
we talk about more cool ways to get the money you need to start grow your business.