Hey, it's Ty Crandall with Credit Suite, and in this video,
I want to teach you a couple of really cool things that Business Credit can do for your business,
things that most entrepreneurs know nothing about. So by the end of this training,
you're going to know a little bit more about how Business Credit works,
but you're going to know major benefits that will help you
get more money at better terms for your business. So there's a lot of cool things
about Business Credit when we talk about it.
We're talking about credit that's built for your business's EIN that's not linked to your personal Social Security Number.
Business Credit really reflects your business's ability to pay its bills, not you individually.
So when you establish a business credit profile and score, you give yourself the ability for your business
to stand on its own when it comes to getting certain types of money like revolving credit cards.
And because it can stand on its own, it basically gives itself the ability to fund itself
where it doesn't need your personal credit to qualify for some of that kind of financing.
But one of the best benefits of building Business Credit
is that you can get it without a personal credit check. And there's
a couple other side benefits of this. First, of which being that even though your credit
could be horribly bad, you could still establish Business Credit for you're EIN,
That's not linked to your personal social. And the reason for this
is that once you build a basic business foundation with accounts that report to the
business credit reporting agencies, then that established business credit report and score
can be used to start getting you all kinds of revolving credit cards.
You don't need your personal credit to then qualify.
So the actual credit card issuers will look at your established business credit
and will make the approval decision based on that and nothing to do
with your personal credit. So this helps a couple different ways. First of all,
as I mentioned, no matter how bad your personal credit may be,
you're still able to get approved because they're not even looking at
your personal credit, the approval decisions on these revolving credit cards
and most major retail stores, even VISA Cards, MasterCard's, Auto Financing
are all based on the established Business Credit quality that you have actually set up,
not your personal credit. So you can get approved regardless of personal credit quality.
Now, the second side benefit of this is that you can get approved without any inquiries
on your Personal Credit Report. This is a really big deal because
not only will inquiries lower your consumer FICO Score,
but they also make it really hard to get certain types of business financing.
So, for example, there's a credit line hybrid program where you can get
like one hundred and fifty thousand dollars in credit lines for your business,
even as a startup with no doc financing. But that is strictly based on personal credit quality.
So if you have too many inquiries on your personal credit, it could cost you
twenty-five, fifty or even one hundred thousand dollars plus in funding.
So when it comes to getting money for your business,
you really need to minimize the number of inquiries on your personal credit report.
And one of the easiest ways to do this is by establishing Business Credit
when you establish business credit. Then again, you have an established credit profile
and score that helps you get all kinds of revolving credit cards for your business without needing
a personal credit check and without putting personal inquiries on your consumer credit report.
Now, another huge benefit of building Business Credit is that you can get it without personal liability
or Personal Guarantees. So by building Business Credit, you establish that credit profile and score
that then teaches credit issuers that you're responsible in your business by itself,
that it can stand on its own and doesn't need your personal guarantee to be able to qualify.
If you look at the definition of personal guarantees, they're basically required when your
business can't stand on its own by establishing business credit you have been given
your business the ability to stand on its own, to be able to start get certain kind of financing
like revolving credit cards without a personal guarantee, without a personal liability.
So what this means is that means if you ever did default on that revolving account,
then they can't come after you personally. They can't come after your personal assets.
This is why Score, Inc., SBA, entrepreneur, most financial authorities strongly recommend and say
that it's a must that you establish business credit because it helps you separate
personal and business liability. It helps you not be personally liable for the debts
that you're taking on in your business. So there's a lot of cool benefits you get by building
business credit. These are just two to name of many others that we'll talk about in future
training videos. If you'd like to build business credit for your business visit us online
at creditsuite.com/ein to grab your free four-step business credit building guide.