Hey, it's Ty Crandall with Credit Suite in this video. I'm going to outline the
exact steps that you want to take to Build Business Credit by the end of this
video, you're going to know exactly what to do to effectively build a credit profile
and score for your business and use that to obtain all types of high limit
revolving credit card accounts. So we talk about business credit. We're
talking about building a credit report score for your business some word are
you having a personal credit report, this linked to your social your
business also has its own credit report that's linked to your business EIN.
Once you establish this business credit, there's a lot of benefits that you gain.
One benefit is that you're able to get credit for your business with very high
limits. Ten twenty thousand dollar plus individual credit card limits in your business name that
don't require a personal guarantee or a personal credit check for approval. The
other cool thing about this credit is it reports to the business credit reporting
agencies, not the consumer credit reporting agencies. Look, I see a lot of
entrepreneurs make mistakes because they use personal credit to fund their
business. The problem with that is, is that as your utilization
increases with consumer credit, it really lowers your consumer credit scores by
obtaining business credit, you can even max out these accounts and have no
adverse impact on your consumer credit at all because the credit only reports
to the commercial credit reporting agencies, not the consumer credit
reporting agencies. And again, you can get approved without a credit check. You can
also get approved without revenue verification and without collateral as
well. So even if you're in a situation where you can't get typical loans and
credit lines, you can still get business credit. And if you are able to get loans
and credit lines then business credit helps you become more fundable, which
means it typically will help you get more money at better terms than you'll
ever get without having established business credit. Look, there's so many
benefits of Business credit provides, and if you go to our YouTube channel,
youtube.com/creditsuite, you'll find plenty of videos that
outline those benefits. But in this video, let's dive in, talk a little bit more
about the exact steps to take to obtain Business credit for your company. The
very first thing that you want to do is build your fundability. Well, before you
get any kind of credit or loan, you need to have a fundable foundation. What
happens is lenders and credit issuers have a secret set of criteria that you
must meet to be able to get approved. If you
meet this criteria, then you're often gain the benefit of getting automated
approvals. But if you don't meet this criteria, that's when you either get
immediately denied or they push your application for a manual review which
ultimately results and you getting denied. You've probably seen this before. You've
applied for a credit card and you're either instantly approved or you got
that dreaded message that you hear by mail in 7 to 10 days, which
typically does it in well, it typically ends in you being declined. So when
you're building business credit, you're actually able to come in and get this
credit without a personal credit check, without a personal guarantee. But it all
comes down to building that credible foundation. So what is a credible
foundation? Well, there's actually over one hundred and twenty-five factors that tie
into your fundability. Way too many to cover in this video. And again, you can
visit our YouTube channel with those kind of details. But some of the basics
you need to make sure that you check on or your business name. So, for example,
your business name needs to be set up where it doesn't reflect you're in a
high-risk industry. High-risk industries include things like bail bonds,
ammunition, even financial services. If your name indicates you're in a high-risk
industry that could ultimately get you denied. You need to make sure that
your business name is exactly the same. And your secretary of state records as
what you're putting on your credit card applications as well. You also need to
make sure that your address is a real deliverable physical address. Preferably
you're going to have a real location for your business. But if you're working from the
home, you might not need that. So in that case, you want to choose a virtual
address that you can get a virtual address by going to creditsuite.com/virtual.
And there's many sources out there from DaVinci to Regus
to our preferred source alliance that will help get you a virtual address. This
is an address where you simply get mail delivered to, but you don't have to pay
an actual rent or lease payment like you do if you were actually leasing a location.
You also need to make sure that that address is the same on all of your
documents online and offline. What are the biggest reasons that credit and
financing gets denied is because of incongruencies. Meaning the lenders and
credit issuers think your application is fraud. The reason they think this is
because the information you're entering on the application isn't exactly the
same as what it is a sources they pull like the secretary of state. So make sure
that your business name, your address is congruent in all those sources.
You want to make sure you get a business phone number. Don't use a personal phone
or a home phone or a cell phone as your phone number for your business, on your
application, on your website or anywhere else, you can use a voice over IP number
and you can get a physical landline for your business, but avoid those other
numbers. Make sure your phone number is listed with 411 as well and make
sure you get a business fax number if any application asks for a fax number,
you don't want to leave that fill blank. You want to have a fax number that you
enter in that actual spot that he needed need the necessary licenses get that. Also, make
sure you set up a business bank account. Now you're not going to be asked to provide
business bank statements when you obtain business credit, but they will often time
ask for a bank reference. You're not going to have a bank reference unless
you actually have a business bank account setup. So make sure you're
setting up that business bank account. Also, make sure you get your EIN number,
if you're an entity like a sole proprietor, you don't actually need an
EIN. But when it comes to building business credit, that credit is linked to
that EIN number so becomes crucial that you get the EIN number to link the
business credit too. So once you set up this credible foundation, then the next
step is you want to start getting credit that reports to the business credit
reporting agencies. And there's typically two different ways to do this.
The first way is using accounts called vendor accounts. These are credit issuers
who will issue you credit and you can buy all kinds of products and services
from them. Now, what's unique about these vendors is that these vendors report to
the business credit reporting agencies. It's estimated that over 97
percent of trade credit doesn't report to the business credit reporting
agencies. You need to get credit that does. So some sources that will help your
Uline and Quill, for example, Grainger, these companies will give you credit.
will have great products and services that you're going to need to grow your
business and as you use this credit to actually buy things and pay the bill
timely, they report those payments to the business credit reporting agencies. Once
you have three accounts reporting, then Dun and Bradstreet will issue you a credit
score. When you have one account reporting, then Experian and Equifax will
issue your credit score as well. Now beware, if Experian and Equifax know your
business exists, even if you have no credit, they'll issue you a failing
business credit score. This is why it's so important to as quickly as you set up
your business. Start building business credit
so you can make sure you have a good score, not a failing score that
reflects that you're a high risk because that makes it harder to get the
credit and financing you need. Now, the second way to build Business credit
iinitially is a program we called UBF is using your good personal credit or
that of a personal guarantor to actually get credit lines up to 150,000 dollars with zero percent
rates. That also report to the business credit reporting agencies. If you want to
learn more or get approved you can go to creditsuite.com/getfunding
or again, check out our YouTube channel where we have detailed
information on the UBF program. One of those options with vendors you can get
approved with, with no personal credit check. The other one requires good
personal credit to get approved. The UBF program. But you're getting access to
real credit lines at the same time. Now, once you have five accounts reporting,
then you're able to start moving on to what we call the store credit tier. This
means you can start to get credit at actual stores like Staples, Office Depot,
Sam's Club, Costco, BP, Chevron, Sunoco, all of those type of sources will start to
give you Business credit accounts that report to the business credit reporting
agencies without the guarantee, without the credit check. Once you have at least
five accounts reporting, even Amazon offers these kind of business credit
accounts. The more of this credit you use, the higher the limits will be on the
future credit approvals. So make sure you get credit, the sources you're actually
going to use because using that credit is very, very, very important. It's a matter
of fact, if you pull your business credit report, you'll see that your business
credit reports don't even give you the high credit limit that you actually have.
They'll actually show the highest amount of credit you've used. So they're telling
you that that's equally important, if not more important than the limits
themself. Future credit issuers are really going to look at how much money
you're spending on the credit you're issued. So make sure your credit with sources
you're really going to use and use that credit so you can get higher
and higher and higher future approvals. Now, once you get the store credit, then you can move
into what I've kind of already touched upon, which is fleet credit this require
about 8 to 10 accounts that actually report. And this is, like I said, BP,
Chevron, Sunoco, these are places like for Pilot Flying J where you can actually
get fuel, you can get repairs to your vehicle's maintenance. So if you're,
for example, the transportation industry, this become the kind of credit
becomes very, very, very important. And the final tier building business
credit is auto financing and also cash credit. Now, cash credit doesn't
necessarily mean you're getting credit lines. It doesn't mean that at all. When I
say cash credit I mean credit cards that you can use anywhere like Visa Card or
MasterCard or American Express, these cards are rare, hard to find. And
there are few and far in between they come and go. Some sources like KeyBank
or BJ's offer these type of account sometime and they don't offer
another times. But again, when you get to a point where you have about 14
accounts reporting and at least one of those accounts has a ten thousand dollar high credit
limit or ten thousand dollar high credit limit or higher, that's when you can actually
start to get to that final tier. You can even come into places like Ally, GM or
Ford and get auto financing without the personal guaranteeing credit check. So,
for example, one of our clients got approved for one hundred and forty
thousand dollars with Ford the other day without a personal guarantee and without
a personal credit check. That's what's possible when you build
your business credit that you're going to need to monitor your credit along the
way. You can do so at creditsuite.com/monitoring and there you
can actually get access to our integration with NAV where you can get
twenty-four dollars reports with Dun and Bradstreet, Experian, the cheapest way that you're
able to obtain Business credit reports. It saves you about 90 percent from
getting credit reports from the credit bureaus themselves. So there it is. That's
the actual outline of the process of building business credit. Step 1 Build
that credible foundation. Step 2 Get accounts that report initially to
establish your business credit reports and scores whether you're using a program
like UBF or you're using vendor accounts. Next start getting revolving store
credit, which will also turn into your ability to get fleet credit. Once you
have about 8 to 10 accounts reporting and remember you're going to want
to have five accounts reporting to make sure that you can actually get approved
for store credit. And you have about 14 accounts reporting or more. You
can get auto vehicle fine or auto financing, VisaCard, MasterCard, that type
of credit as well. So for more information on building your business
credit. Visit us online at creditsuite.com.