Hey it's Ty Crandall and in this short video I'm going to introduce you to 4 different ways you
must a reason you must have business credit established for your company. All kinds of really
bad things happen to businesses that don't have established corporate credit profiles and scores,
and by the end of this you're going to know 4 of these very specific things you're going to want to
avoid by establishing your business credit. So one of them is that there's no personal liability or
personal guarantee for business credit accounts, so when you provide your social security number
provide personal guarantee you are personally liable for that business debt which means if
you ever default then that actually that gives the creditor the ability to come after your
personal assets not just your business assets not to mention. That oftentimes it reports on
your personal credit reports and damages them by showing as a collection on there so you don't
want to personally guarantee anything for your business if you don't have to business credit is
a way around personal guarantees it's a way around personal liability because we're establishing
a credit profile on score for your EIN. Then we're using the EIN credit to qualify you for more money
and not relying on your personal credit. So therefore since your business can stand on its own
it doesn't need you to personally guarantee the business debts it's a way basically for
your business to fund itself. So another reason you want to build business credit is that it
protects your personal assets if you fail. Like I mentioned if you don't do this then what happens
is if you ever go late on a payment if something crazy happens like a mortgage crisis or COVID19
that completely shuts down your business overnight. Then they can't come after your personal
assets. I for one and here teaching you this because I owned a mortgage company during the
mortgage crisis and when that went down I defaulted on the business credit line with Bank of
America they came in and wiped out my personal accounts. They took all of the money from my
personal accounts I even had checks written against that money that bounced it was an absolute
nightmare. It's why I got into the space of educating people how to avoid that from happening none of us expect to fail but
the reality is all kinds of crazy things happen in this world that could cause us to go late to
default on an account and when that happens you don't want to be personally liable for that debt
that's why you want to establish business credit because it protects your personal assets against
business creditors and business debtors who are trying to collect. Now another reason is that it
increases the overall value of your business look this is publicly accessible information
so if you're going to buy a business then you're going to want to see how they pay their bills how
many credit lines they have how many trade lines they have in their commercial credit reports
how many employees they have their net worth their revenue. All of that information is on your
commercial credit reports, as a matter of fact I teach business owners how to go out and buy
other businesses using business credit to determine if the business is worth buying. Now
I should rephrase that, okay I come into groups large groups that they're taught how to buy
businesses and my part is to teach them how to access the business credit reports and scores for
those businesses to determine if they should want to buy them or not. So there's this whole class of
thousands and thousands of people out there that buy businesses even probably more than that okay
and they're accessing your business credit reports and score to judge the worth of your business to
determine if they should buy it or not. So it just makes you a better candidate it makes it easier to
sell your business and you increase the value of the asset of your business just by establishing
your business credit profile score. Now business credit quality also determines the loans and terms
you're going to pay on financing, okay so there's a lot going on and there's no requirements that
those that are reviewing your business credit reports provide information you that they are
and this is what happens. So there's a law called the fair credit reporting act and it says that if
anybody ever denies you for credit they have to notify you in mail by mail that they did and what
credit bureau they use. That's why when you apply for a car loan or an rv loan or a credit card or
whatever it may be, you get that letter in the mail by the credit issuers that wouldn't approve you
but this law doesn't apply in the business world. So what's happening is lenders and credit issuers
and suppliers are oftentimes pulling your business credit reports they're making decisions based on
those like whether you should be approved or denied how much you should pay in rates
in terms how much you should be approved for and they never tell you that those decisions are made
by business credit quality because the fair credit reporting act doesn't apply to the business world.
So lenders and credit issuers are regularly using this to determine your approval or denial how much
money you should be given and the rates and terms you'll pay and you're not even disclosing to
you that this is being used for this manner. So you need to establish your business credit reports
and scores for these reasons it just makes you a better candidate for loans and credit lines
it makes you more lendable, okay it helps you improve your personal credit it gets you away
from this personal liability and it makes your overall business just worth more money. So for
more details on building your business credit grab our free guide at creditsuite.com/einguide
that's creditsuite.com.einguide or just give us a ring 877-600-2487.
If you give us a call at 877-600-2487 we'll help you get your business credit reports for free
we'll review them with you we'll give you tips on improving your overall fundability
and we'll give you tips and tactics to help establish business credit and scores
and profile for your business to be able to make your business worth as much money as you can
and to make it as easy as possible to get the loans and credit lines you need when you need them.