Hello this is Ty Crandall and in this video we’re going to dive in and talk a little bit
more about what you need to know
regarding business credit, so when we talk about business credit we’re talking
about credit that’s linked
in to a business credits in a business name,
so with business credit the business itself is building its
own credit profile and score and in with an established credit profile score
the business can then start to qualify for real credit,
now credit profile can be built for a business that is completely separate from
the business owner’s personal credit profile so this is a huge benefit,
because this gives the business owner basically
double the borrowing power, you have all the credit cards and credit on your
personal credit profile
now you have a whole second credit profile that’s linked to your EIN
letting you get even more and more and more
credit, now another benefit business credit is a business credit
scores are based
only on whether you pay your bills on time or not, so that means a business
owners can obtain credit
a lot faster using business credit then you
ever would in the consumer world, you see consumer credit score are comprised of
5 different factors and they’re hard to control,
it actually takes many years of well discipline borrowing the usually
get
a good score but business credit scores
are completely different they’re usually based on one factor
how you pay your bills if you pay your bills on time you get a good score,
so because of this business credit can be build quick you can get vendor account immediately
store credit usually within 90 days or less even Visa, MasterCard
5-$10,000 limit accounts within 4 to 6 total months.
Now approval limits are much higher on these types of accounts
versus personal accounts as a matter of facts, per SBA
approval limits on business credit card are typically 10 to 100 times higher
than what you’ll find on consumer credit let me give you an example
here some actual real business credit approvals,
here’s one for city for example for $15,000
here’s one from Chase for $22,000 that was funny
is that in and consumer world it could take you
5 to 10 years to ever build your credit this kind of level,
but in the business world you can get that these kind of approval
within less than 12 months and
you can start getting accounts like this for 10,000 or even this
8,000 or even this 7,000 within 6 months total time.
So this gives you an idea of what’s actually possible
with business credit, so when done correctly business credit
can be built without a personal credit check, and
there’s no personal credit reporting of the business accounts so this means
as you use a credit it doesn’t report the consumer reporting agencies
and it will not lower your score 30%
as your consumer credit score is made up of what percentage of your high credit
limit you’re using,
so that means if you have a thousand dollar limit credit card and you have a
balance a more than $300 on that card
you’re actually hurting your credit score now the business world.
And the business world this accounts don’t reports to the consumer reporting agencies,
so getting the accounts and using them who have no adverse impact
on your score whatsoever and without a credit check
there’s also no guarantee with business credit you’re not even putting your social security
number on the application, so they cannot pull your credit
and you don’t you’re not guaranteeing the actual debt in case of default which
is the huge benefit.
Plus it’s important to know that anybody who wants to can pull your business credit
reports this means client, prospect,
potential buyers of your company even competitors can see
your business info it’s kinda scary, they can see your payment history
your high credit limits they can see how many employees how much revenue you have
and much much more even past payment performance
you see the consumer credit world somebody has to have your permission
to pull your credit report not in the business world anybody can pull your
business credit report for hardly
any money at all, and all this information is available to them,
so it’s just one more reason you really want to focus on building your business
credit
so I hope you enjoyed this short video on building business credit
and some of the essential of why you want to build your business credit make sure you like
this video most importantly
subscribe to our channel because on our channel we mapped out everything you
need to know about business credit
from benefits to what is really is how it really works
to most importantly step by step
process to actually build it and make sure you click on this video to grab
your free guide and will also provide you some valuable insight
on building your business credit, so again this is Ty Crandall thank you very
much for taking the time to check out this video
make sure you subscribe and I’ll see you on our next video.