Why is business credit awesome? Business credit provide you so many different benefits that
you may well not even know exist and even if you're just starting a business or you own a
very well-established business, business credit really is one of the most important assets that
you can have for you and your company. Why is that well several reasons, first of all business credit
actually doubles your borrowing ability you already have a credit report that's linked to
your personal Social Security Number and if you walk into Staples today and you have no
Staples credit card and you ask for a staples credit card hopefully you'll be able to based
on your consumer credit get approved, but if you walk into Staples then tomorrow and ask him for
another credit card they're not going to approve you because you already have one but with
business credit you could do just that you could walk into Staples today to get a consumer credit
card and then you can walk in tomorrow and use your EIN to get a business credit card it really
doubles your borrowing ability because it's the only way to literally create two credit profiles, you have
a credit profile and score that's linked to your Social Security Number and with business credit
you have a credit profile score that's linked to your business EIN number. Now another really cool
benefit about business credit is that makes you more lendable, look Experian, Equifax and
Dun & Bradstreet all have recommendations to lenders to credit issuers of whether you should
be approved for credit and how much you should actually be approved for, so your business
credit quality and your business credit scores determine if you'll get loans and credit cards
how much you'll get and the actual terms you'll pay, we've seen 2 and 3 million dollar
companies get denied for 5 and $10,000 credit limit credit cards because their
business credit quality was bad, and what's worse is in those cases they didn't even have business
credit established. The reporting agencies just knew they existed and gave them a lower score
because they had yet to establish business credit. So business credit really is the key for you to
get long term financing at the best rates and to get approved versus getting denied. Another
really cool benefit of our business credit it has nothing to do with personal credit
whatsoever, when you obtain business credit you start building your credit profile and score
you can get approved from retail store or store credit at most major retailers and fleet credit
and cash credit without even providing your Social Security Number, so that means there's no inquiry
on your personal credit report there's no damage to your personal credit because you're applying
for business credit, and there's no reporting of this credit on your consumer credit reports.
This is a really big deal because a 30% of your consumer credit score is made up of what's called
utilization what percentage of your high credit limit you're using, and if you have a thousand
dollar credit card and you owe more than $300 on that or have a balance higher than 300 bucks then
that means you're lowering your consumer credit score, sometimes substantially a hundred points
or more. But with business credit you could have a thousand dollar credit card or even a $10,000
dollar limit credit card max that credit card out and because that credit card only reports
to the business credit reporting agencies you wouldn't lower your consumer credit scores even
one point, that keeps your consumer credit healthy so you could buy all the things you need to buy in
your personal life and use it for a higher limit business loans. Well your business credit can then
continue to drive the way for you to qualify for more and more credit and financing as you continue
to build your credit profile and score. Now another huge benefit of business credit is that there's no
personal guarantee, so that means you can obtain credit for your business without providing your
social with no personal credit check and with no personal liability, which means if you ever did the
fall then the actual credit issuer cannot pursue any of your personal assets they can only pursue
the assets of your business. This truly separates your business and your consumer credit and if you
follow any source like SBA or entrepreneur for example or Inc they all recommend the separation
of business and personal credit because it truly separates the liability between you personally
and what's taking place in your business. Another huge benefit of business credit is that you
can get credit really really really quickly and you can get credit so quickly with business credit
because the credit scores are based primarily on how you pay your bills, so as you get credit you it
reports to the business credit reporting agencies you pay the bills as agreed and you have a good
profile and score that will then help you get higher higher limits on store credit, fleet credit
and cash credit accounts as a matter of fact you can start getting vendor credit immediately right
now today for your business and once you get that credit buy things using that credit and pay the
bills that credit typically reports within about 60 days to the business credit reporting agencies
you then have a credit profile and score and you can then start to get high limit revolving
credit accounts for your business within 60 days regardless of your personal credit this is only
possible with business credit and this fast establishment of credit this fast way to get
immediate vendor credit then to start getting high limit revolving store credit cash credit is one of
the main reasons the business credits so popular another benefit of business credit is that as I
mentioned the scores are based only on one main factor so when we look at your consumer credit
it's based on five things your payment history your utilization how long you've had credit the
amount of new credit you're actually qualifying or trying to obtain and the credit mix the mix
of credit you have, because of these five factors and the weight to the overall score it typically
takes many many many years of well-disciplined borrowing to ever have really really good business
credit scores but in comparison, if we look at Dun & Bradstreet Paydex Score the most popular
credit score in the business world you'll see the payment is literally based on how you pay
your bills, if you pay your bills on time you have an 80 score which is considered good if you pay
your bills early you have a hundred score which is considered great if you pay your bills late well
your score will determine will be based on how late you pay the bills if you're paying your bills
on average 30 days late you'll have a 50 score whereas if you're paying them on average
14 days late you'll have a 70 score this is so easy to control in the business world because
all you need to do is get initial credit that reports the business credit reporting agencies
pay your bills and you're instantly rewarded with great scores that you can use to obtain more and
more credit now as I mentioned there's no personal liability with business credit but what I didn't
mention is that the limits on business credit accounts are typically ten to a hundred times
higher than what you're gonna find with consumer credit and this actual figure of ten to a hundred
times higher comes from SBA themselves look business has businesses have a much greater
need for credit than an individual does you may never need a $10,000 consumer credit card with
Dell but you very well might need $10,000 worth of credit at Dell for your business because you
have a need to buy a lot of computers versus you don't really have that need on the consumer side
this is why business credit limits are so much higher than consumer limits and if you're used
to getting a hundred or thousand dollar limits in the consumer world well then in the business
world you're going to see thousand to ten thousand dollar limits and if you're used to getting five
and ten thousand dollar limits in the consumer world well then you can easily get fifty hundred
thousand dollar limits in the business world it's very common for us to see revolving credit issued
from stores to people that are just building their business credit within 60 to 90 days Dell
is notorious for giving $10,000 credit limits to people that have just started building their
business credit a few months before, so limits are very high in the business credit credit
credit world and when you combine that with quick establishment a building business credit this
means you can start to get a lot of credit with very high limits very very very quickly. Another
benefit of business credit is that's perfect for startups as a matter of fact there's not a lot of
financing that you can obtain as a startup because startups are such a high risk when they look at
business [ __ ] business that go out of business or companies actually close their doors what we
realize is that the longer a business stays open the lower risk it has of failing when businesses
initially get started there's a high risk of failing so because of this banks don't want to
lend a lot of money to businesses that are just getting started or that had even been opened one
to 3 to 5 years but business credit you can obtain the minute you set up your EIN number
so it's perfect for startups because again you can start obtaining high limit accounts very quickly
even as a startup company and there's no cash flow requirements you won't need to submit tax
returns you won't need to submit bank statements to get approved for a business credit as you do
with so many other an alternative and conventional loans another benefit of business credit gives you a
a huge competitive advantage when you're talking about your competitors that don't have access
to business credit that don't have access the high-limit store cash and fleet and vendor credit
accounts versus one that does then the advantage is all in the favor of the company that has the
most access to capital to be able to adjust to be able to grow quickly and to be able to handle
those unexpected even emergencies that sometimes arise so business credit gives you a
huge competitive advantage versus companies in your space that don't have business credit
established another huge benefit of business credit is you don't need collateral if you walk into
a conventional bank they're going to require often 20 to 50% or more of what you borrow that
you have collateral to offset the risk, but with business credit you don't need collateral this
is a really big deal because business credits the only type of credit and financing that could be
obtained for a business if you have no collateral you don't have cash flow and you have consumer
credit issues it's a catch-all it's a solution that works for you no matter how bad your
personal situation is no matter how bad your personal credit is even if you don't have that
collateral and you don't have a cash flow you can still come in and obtain high-limit business credit
accounts where you can't come in and typically get business loans and with business credit, it's just
easier to grow your business look to come in and be able to get two with three-four five $10,000 limit
credit cards at places like Amazon and Staples and Dell and Apple and then to be able to get
cash credit this gives you large amounts of money that you need to pay a lot of the things that are
necessary to start and grow a business without you using your actual cash flow to try to do the
same business credit is awesome because there's so many different benefits it can be built so quickly
you can obtain high limit accounts it's not based on your consumer credit quality and on and on and
on, so if you'd like to know more about building your business credit even if you'd like to get a
free copy of your business credit report and score get in touch with us today so we can talk to you
more and help you start obtaining high-limit business credit accounts for your company