Hey it's Ty, and in this video I'm going to go through a little bit and talk to you more
about business credit. I want to introduce you to business credit I want to talk to you about what
business credit is, timeframes for building everything you need to know to set the right
expectations for a customer. So first of all we talk about business credit what we're only
talking about here is we're talking about credit that's linked to a business's EIN not their Social
Security Number. So just as you're used to having a credit report and score that's linked to your
own personal social, with business credit your business having its own EIN is building its own
credit profile and score that's linked to that business EIN, now there's a ton of benefits that
this provides first let me say most people are absolutely not familiar at all with business
credit. It's estimated that about 90% of the business population isn't really familiar with
business credit and really doesn't know a lot about what it is or what it is at all let a loan
you know how it works so that being said part of your sales process when you talk to people
why business credit is providing a little bit of an education, so let's talk a little bit about
the benefits of business credit provides, and this video will go to something other than what we're
looking at right now as we dive in a little bit further looks I'm going to walk you through and
give you an idea of the kind of business credit somebody can get through the business credit
building process. So the benefits of business credit are many first of all you're building
your credit profile for the EIN it's not linked to the social so that means when we do business
credit properly we're obtaining credit as we can see here in our finance suite these round 1
round 2 round 3 round 4, tier 1 tier 2 tier 3 tier 4 credit without a personal credit
check because what's happening is we're starting by building the business credibility we're then
coming in and helping a business get access to vendor accounts that report to the business credit
reporting agencies. So these accounts report to the business credit reporting agencies once the
actual a business owner comes in obtains them applies gets approved uses the credit pays the
bill, they report to the business credit reporting agencies. So what happens is they then have credit
established for their business EIN we'll talk about time frame and that a little bit further
in this video once that happens.Then when they apply for a Staples card or a Home Depot card
or a most revolving or most stores offer revolving accounts and as they get in to start applying for
these kind of revolving accounts. Then what will happen is they can leave their Social Security
Number off the application the lender the credit issue excuse me the credit issuer will then pull
their business credit that's linked to their EIN, and they can make the approval decision
based strictly on the businesses EIN credit. So what this means is it means the applicant can
actually leave their Social Security Number off the application there's no personal credit check,
so this is awesome because people they even have severe personal credit challenges are not
impacted by their ability to build business credit. They can still get in here and start
obtaining 2, 3, 4, 5, $10,000 revolving credit accounts for their business within not a
long period of time regardless of their personal credit because their credit their socials left off
the application their personal credits not even looked at. Now because they're not linking this
to them personally there's also no personal guarantee which is fantastic because that
means they're not personally liable if they ever defaulted or for whatever is taking place in the
business. Another benefit is that these card limits on business, credit accounts whether it be vendor
accounts or whatever tier we're applying for are significantly higher than the consumer credit as
a matter of fact SBA estimates that business credits about ten to a hundred times higher
than what you'll find with consumer credit so business owners can get very high limit accounts
very quickly and it's not linked to their personal credit which leads me to the other benefit that I
just mentioned it's fast to build business credit how fast will when somebody makes it through the
first step of building business credit which is just set up their business credibly how long does
this actually take to do, well it depends on if they're established or non established setting
up a business credibly means getting a business entity getting their business name getting their
EIN Number setting up their business address and their website email and phone number any kind of
even basically established business already has these things done they'll fly through the step
very quickly a business that isn't established that's great too because the finance we helps
them walkthrough on every step of setting up their business credibly, so depending on this might take
an hour might take minutes it might take a week depending on how established the business is
but once they make sure their business is setup credibly they can immediately come in and start
applying for real usable credit, so literally with a day somebody gets access to the finance suite
for example they can start applying and getting the Tier one vendor accounts to start building
business credit, now once they get these accounts so let's say they coming to get Gemplers
accounts to buy office supplies or Quill account to my office supplies they're basically applying for
the actual credit card, okay so let's say they go into Quill, they buy $50 or more worth
of things which in order for an account to report to the business credit reporting agency it needs
to be $50 or higher so let's say they go into Quill and they buy $50 worth
of items at Quill, and they apply for credit with Quill and quote give them an approval for the
credit they buy the $50 they use their Quill credit then they turn around and they pay
that off, once that happens once that accounts paid then Quill report that to the business
credit reporting agencies,, now as soon as they get that reported and it shows on the business
credit reports, then when a certain amount of counselor there the customer can start moving on
to the next step of the business credit building process so how long does this take? Well usually
takes with in about 60 days some accounts will report quarterly some report monthly some they
might have to like Quill they will have to apply once twice even three times to get approved but
when they actually apply from the time they apply to the time those accounts report takes about on
average 60 days could take 30 could take 90 on average to about 60 days so when we talk about
business credit building timeframe, it's important to note that what determines the actual time frame
to build business credit really really comes down to how long it takes for that item to get reported
to the business credit reporting agencies and on average that's about 60 days, so somebody can
come in and immediately go through step 1 the first day they have access to the finance we'd
start applying and getting real usable credit and that credit takes about 60 days to report
to the business credit reporting agencies, now it's important to note that this initial
credit is net 30 terms is not revolving credit, so that's what they're going to get initially there
to get something that gives them terms like net 30 which means they have 30 days to pay that
balance off in its entirety it's not a revolving account that they could pay minimum payments a
little over time, but once they get these accounts and the purpose of these accounts isn't because
people want net 30 accounts, it's because these accounts report to the business credit reporting
agencies and every account here in step 1 can be used by even a brand new startup business
a company that has no business credit profile and score so somebody can start with no business
credit profile and score get at least three of these accounts actually buy things, okay use the
credit to buy the items they're getting pay the bill it takes about 60 days for those to report
and then they can immediately start moving on to round 2 credit, so they can get vendor
accounts in the first 30 days in with in about 60 days they can start moving in to get credit
at all these type of places Amazon, Tigerdirect, Staples, Sherwin-Williams all the things you're
going to see in the finance suite here in step 2 now some of these at this point are still net 30
accounts, some of them as you'll go through our actual revolving accounts so what can happen
is within 60 days the customer can start getting real access to real revolving accounts once those
initial accounts report which again takes about 60 days so somebody can get credit immediately
as they get part of the finance suite within 60 days they can start getting access to real
revolving credit now once they've come out and got another three accounts here, so they have a total
of six then they can move in to step three in step three is I think almost all if not all revolving
accounts so these are Best Buy and Office Depot and Staples Home depot and these are all Walmart
Del revolving accounts and they can get to these usually within 60 to 90 days time print how long
does it take? Will depends on how many accounts they apply for so let me give you an example let
me say we go back to Tier1 accounts and let's say instead of getting three Quill, Gemplers and Uline
let's say they got all three of these and all three of these well then they'd have six so then
they can actually skip all the net 30 accounts here in step 2 and go right into the revolving
accounts in step 2 and are in round two or the revolving accounts in round three, so again
how fast somebody gets credit depends on a couple things fast are they going through and
doing the things they need to do, how fast are they coming in and actually applying for new credit what
are they doing or how much credit they applying for in between these different rounds. The great news
of this is that every variable I just mentioned is on the customer, not us which means they determine
the time frame. The more credit they apply for the faster the faster they're going to get real
credit or access to all the credit they want. But I explained it like this you're able to immediately
come in and get vendor credit and within 60 days when that reports to the business credit reporting
agencies then you're then able to come in and start getting real revolving accounts at most
major stores. Okay then they keeps escalating from there all the way until instead of having 3 or
6 accounts they have 14 trades reporting then they can start getting access to these kind of
fleet master cards and everything you see in the final step. So when I talk to people about building
business credit I said look you can start getting credit immediately to vendors that will offer you
net 30 accounts that offer you credit that's credit that you really want need like office
supplies and computers and things like that that you could use to build your business. When you
get those accounts use them pay the bill then within about 60 days those accounts report to
the business credit reporting agencies then you actually have a business credit profile and score
established and you can start getting access to real revolving account at most major stores, okay
then in a total of about 120 days about 4 to 6 months you can start getting access to real
fleet credit, okay sometimes they can even get cash credit which is Visa or Mastercard but
that's kind of on and off. Some creditors will if issue cash credit without a personal guarantee
and personal credit check nowadays it's harder to get that kind of credit, so even though they built
the business credit to get a Visa or MasterCard they could use anywhere they're still might have
to be a credit check they're still might have to be a personal guarantee but the great news is, is
that they won't need to have really good credit to get approve of that because their business credit
will already be well established. Plus in that time frame at about 4 months time frame they're also
very lendable at this point they have 10, 12, 13, 14, tradelines they have high credit limits of 7,
$10,000 or more their chances of getting a loan at a bank or significantly better through
other even an alternative lenders, and their ability to get good terms on that financing is
also very very very good. So another benefit again is business credit is that it can be built very
quickly, another thing to keep in mind that you want to talk to your customers about is anybody
can look at their business credit reports, you're going to find that you can easily access company's
business credit reports with only their business name find out their revenue their employees how
many trade lines they have how they pay their bills that public records this is all public
information in the business space it's not like that in the consumer world. Somebody has to have
your permission to pull your consumer credit report but in the business world we don't need
your permission, all we need is the business name and all that information can be obtained
by competitors, prospects, clients, investors, people you may sell your business to this is all
public information. So a lot of benefits business credit provides it's fast to build the limits are very
high you don't need a personal guarantee you don't need a personal credit check it makes you
more lendable because all lenders that issue business loans and credit cards look at your
business credit profile and score to determine approval anybody can see your business credit
report and score. There's no impact to your personal credit which means since it doesn't report
to the personal credit reporting agencies you can use your credit at will and it won't hurt your
credit scores this is important to note because a third of the consumer FICO score is made up of the
the factor called utilization.If you utilize or use or have a balance of more than 30% of your
limit then your scores will go down, and they can be severely limited or severely lowered because
a third of your total scores utilization. So let's say you have a credit card the $10,000
balance, even let's say you got a business credit card a capital one spark card well that reports
to the consumer credit reporting agencies, so if you put $5,000 balance on that card
your consumer credit scores would tank but in the business world these accounts all report to
the business credit reporting agencies. So that same example you could max out the card to know
10 grand your consumer scores wouldn't drop even one point because the credit only reports to
the business reporting agencies not the consumer and I'll tell you something else, factors like the Dun
& Bradstreet Paydex scores which is one of them main scorers used in the business world only look
at payment history to determine your score. So even if you had that card maxed out your Paydex
score still wouldn't be lowered because as long as you pay your bills as agreed that's what effects
that score not all business credit scores are a little bit different, but it's important to know
that again they can use this credit wildly as was as much as they want with no adverse impact to the
consumer credit. So a lot of benefits a business credit now you've got an idea of what they can
accomplish what they can get within what kind of time frame the benefits that business credit
provides, another reason somebody wants to build business credit it's the only way somebody can get
money if they don't qualify for a business loan. So to qualify nowadays for a business loan you have
to have good cash flow or you have to have good credit or you have to have collateral. If you don't
have any of those 3 you're simply unlendable but business credit you can still obtain without those
3, so think about that somebody trying to start a business somebody trying to grow their business
has bad credit doesn't have collateral does it even have much cash flow in their business think
about how much $2,000 $5,000 $10,000 Dell and Home Depot, and Amazon
credit cards can help them. You could basically buy the furniture by the computers buy everything you
need to basically stock an office using business credit even when you don't have cash flow credit
collateral, might you still need cash money to pay payroll absolutely, but because you built business
credit you immediately reduce a lot of the actual physical cash you would need to start and grow
business because business credit can be used to buy a lot of those things. Home Depot and Lowe's
and Sam's club, and Costco almost everything you need to set up a business you could buy
at these stores in which you can use business credit to it to buy those things and you don't
need cash flow credit or collateral to obtain business credit. So there's so many benefits to
somebody that can't get normal financing this is a lifesaver although they might say well I
want 50,000 in cash will I do too but the reality is is that everybody has to meet criteria
to qualify for the 50,000 in cash and if you don't have cash flow credit or collateral, you
ain't going to qualify, but with business credit you can still get fifty hundred thousand dollars in
real usable credit to buy the things you're going to use the cash for anyways, so you don't really
need that much in cash and then they can go to a multitude of different other paths such family
friends to get the remainder of the money they may need. For people that already have good personal
credit already have an established business then business credits a lifesaver if they ever want
to get a loan if they ever want to get good terms on a loan even a cash advance loan, they're going
to need to have their business credit established and who wants to supply a personal guarantee and
personal liability when you don't need to. So lot of benefits of business credit now you have an
idea of the time frame some of the benefits some of the talking points that you want to mention
when discussing things with business credit it's the business credit with customers or prospects.
It's even a great idea to pull their business credit report to show them that they don't have
much established and under the anybody can get that information and how that makes it look. So
that's it I just wanted to go through and give you an idea of what business credit is how it
works the benefits how it can be obtained how quickly can we obtain the type of credit that a
customer can actually obtain and again go into the finance suite looking through the different tiers
round 1, 2, 3 & 4 gives you an even better idea of how much and what type of credit that actual
business owners can obtain using the finance suite and by building their business credit.