Hey it's Ty Crandall with Credit Suite in this video. I'm going to talk about
the secrets to being able to get credit financing for your business without
personal liability, without personal guarantees. So by the end of this video,
you're going to know exactly what it takes to be able to obtain credit for your
business without being personally liable for the credit that you obtain. Look, as a
business owner, you don't want to be personally liable for everything that
takes place in your business, let alone be personally liable for all the credit
financing is your obtaining along the way. Now, you need to know upfront that
a lot of loans and credit lines, almost all of them are very difficult to get away
with personal guarantees. But the great news is it's very easy to get high limit
credit cards for your business without the personal guarantees and without the
personal credit check. Now, the more of this credit you obtain and the better
and better your credit profile becomes for your business, the easier it is to
then access other kinds of financing without that personal liability. So how
do you do this? Well, personal guarantees are needed when your business can't
stand on its own, which just means is that if you need your personal credit
report to get approved that's when you need to have a personal guarantee so how
do you get away from guarantees? It's simple. You build a commercial credit
report for your business, the same as you've done for yourself as a consumer
that's linked to your social. So your business has its own credit report with
Dun and Bradstreet, Experian and Equifax. It's linked to your business EIN
number. Now, this doesn't come by default. It's not something it's automatically
assigned. It's a matter of fact, you got to take very specific steps to be able
to obtain corporate credit and build out that corporate credit profile. The deeper
your credit profile as meaning, the more accounts you have reporting to the
business credit reporting agencies, the more credit financing you're able to
obtain without the personal guarantee and personal credit check. So, for example,
if you look at Michael Dell, we know he's not personally guaranteeing the credit
that Dell obtains, but it's not because the company Dell is Dell. It's because if
you look at Dell's credit report, you'll see a hundred-plus accounts reporting
on their business credit reports. Bottom line, when somebody goes to issue credit
to a company like Dell they're pulling that commercial credit report seeing
hundred trade lines that shows that they pay their bills as agreed. And that's
what's getting them approved for the credit financing without the personal
guarantor. Here's the key, you can do exactly the same thing. So you can
actually, come in and do exactly the same thing for your business
that the large companies do as well. You can even follow the exact seven same
steps to success. So let's review the steps right now. The very first thing you want
to do is you want to build a fundable foundation. We call this fundability
and there's over one hundred twenty-five factors that tie into fundability. Too many to
go over here you can visit us online at youtube.com/creditsuite
to learn more about all these factors that tie into fundability. But
you want to at least focus on the basics. Make sure that your business name and
address is the same on your secretary of state records as it is on your business
loan or credit applications. You need to make sure you have a business phone
number a business fax number and get that phone number to be toll-free and
get it listed with 411 as well. You need to make sure you have any
necessary licenses that you need for your business. Have a business bank
account setup. You're not going to need a business bank account to build
business credit, but they will ask you for bank references during that time of
applying. So you need to make sure that you have that setup. Everything on the
credit application should reflect that you're a legitimate and credible business.
And if it doesn't, then you want to fix those things to give your business as
much legitimacy as you can. So you are as a fundable as you possibly can. The more
fundable your business is the more access to credit and financing you're going to get.
Once you set up this credible foundation, then you want to start getting initial
credit that reports to the business credit reporting agencies. There's two
ways to do this. The first ways through what are called vendors, these are credit
issuers that will give you credit even if you have none now. And you can buy all
kinds of products and services with it some sources, for example, are Uline and
Quill. They sell office supplies and shipping supplies and they'll give you
terms like net 30 to actually have 30 days to pay back what you buy in their
stores and they report your timely payments to the business credit
reporting agencies. Now, another way to do this is with a program called UBF or
Unsecured Business Financing. You can get approved for this at creditsuite.com/getfunding
Now, this does require good credit and personal
guarantees for approval, but you're able to get credit lines up to one hundred and fifty thousand dollars that
report to the business credit reporting agencies. You can use your credit to
qualify without that of a guarantor. Now, again, you've two options you can go with
vendor credit that requires no credit check or no guarantee, or you can go with
actual UBF or unsecured credit lines that do require a personal guarantee or
credit check. Either way, the goal is to have at least five accounts reporting
on your business credit reports.Once you have those five, then you can move on
to the next step, which is actually to start to get store credit. Places like
Amazon, places like Costco, Sam's Club, Walmart, these type of companies offer
you business credit without personal guarantees and credit check that you can
start to get approved with once you have that handful of accounts reported, you
can even with eight to 10 accounts reporting, move on to fleet credit. This
is places like BP, Chevron, Sunoco, where you can get fuel, auto repairs, auto
maintenance and when you have about 14 accounts reporting, then you can move to
the final tier of business credit building. that you can get auto financing, for
example, you can even come in and get Visa Cards, MasterCard, American Express
cards without personal guarantees and without personal credit checks. That
fundamentally is the process of building business credit. As you do this along the
way, you want to monitor your business credit reports creditsuite.com/monitoring
so in place you need to know. You go to
creditsuite.com/monitoring and you get Dun and Bradstreet, Experian, credit reports, for
only twenty-four dollars a month. That's 90 percent of what you're going to get the reports
for from the Business credit bureaus themselves. So make sure you monitor your
business credit building along the way. Make sure you dispute or challenge any
inaccurate information you see and make sure that you always pay your bills on
time. If you've done this all the credit I've talked about so far, you're able to
get without a personal guarantee. Almost every major retailer offers these kinds
of credit cards that don't require the personal guarantee and don't require the
personal credit check. If you followed the steps that I've actually outlined.
Now, the more of this credit you get, the deeper that credit profiled, the more
trade lines you have, the easier it is in the future to get away without personal
guarantees. You have to keep in mind when it comes to loans, when it comes to
credit lines, they're going to start looking to other factors other than just tradelines
on your business credit reports. They're going to look at your financial
information, your revenue, your profits. They're going to look at how many accounts
you have. They're going to look at your days beyond terms on those. They're going to look
at your payment history. There's a lot of other factors are even going to look at at
the number of employees that you have. And they're also going to be looking at
multiple credit scores, not just the ones that reflect how you pay your bills.
So visit us online at youtube.com/creditsuite to learn more
about those other scores and the other things like
submitting financials to some companies like Duns and Bradstreet to make sure that
you have the strongest credit profile you have the strength of your credit
profile will determine how fundable your business is, meaning the strength of your
credit profile determines how easy it is to get loans and credit lines. And it
will also be the guiding light to being able to get away from personal
guarantees on other kind of financing in the future as well. So to learn more,
visit us online at creditsuite.com.