How to get business credit with bad personal credit? I know. I know. Everybody
tells you it cannot be done. Well, I'm here to tell you it actually can be done
and I'm going to tell you how to get it done. Let's go.
Okay, I'm going to give you the cheat code so that you can get $10,000
in just a matter of months. I'm going to share with you all of my dirty little
secrets so that you can get business credit fast. And I'm going to tell you my
actual story so you can see exactly what I did right and I'm going to also tell you
a couple of things that I did wrong so you don't make those same mistakes. Let's
first talk about business credit versus personal credit. Because obviously, there
is a big difference and I need you to understand the 2 before I can tell you
actually how to get the business credit. So first, let me tell you personal
credits. Many of you are familiar with FICO scores and you're familiar with
TransUnion and Experian and Equifax. Those are the three credit bureau
agencies that report your credit. And they really have absolutely nothing to
do with business credit because there are 2 separate entities. In fact,
there's actually entire business credit agency that does not exist in the world
of personal credit. And that agency is called Dun & Bradstreet,
okay? So, again, on the personal side, you have Equifax, TransUnion and Experian.
Those are the three credit bureaus that report for your personal credit. But on
the business side, you also have Experian and Equifax. But the big, big company that
most people use and that really gets used and they've been around for
hundreds of years it's Dun & Bradstreet. And there is a big difference
between your personal credit and your business credit. Again, with your personal
credit, they are looking at your trade lines and they are looking really big at
how you use your credit cards and things like that. Especially your credit cards.
So, I'll give you a really major difference between personal credit and
business credit. And this is so important as so many people do not understand this.
In the business credit model, like just say a credit card. A personal credit card
versus a business credit card. A personal credit card, if you have like a thousand
dollar limit and you spend $1,000 on that credit card, even if you
make all of the monthly payments and you are doing really well paying the
payments, your credit score is going to go to crap. Because you have used most of
the utilization on that card. Your credit utilization is 100%.
If you have $1,000 on the credit card and you use
$1,000, you used 100% of that credit line and your credit score
will tank. They just penalize you on the personal credit side for doing things
like that. But on the business credit side is a business credit card. Say you
get one $4,000 which is another big difference. That is a really
small line on the business side. On personal credit, that's fine. But on
the business side, they usually give you more. They give you higher limits usually.
That's the first big thing. But then when you use the credit card, they do not
penalize you for maxing it out the same way that they do with personal credit. So,
say you get a credit card and it's a $1,000 we'll use that same
example and you charge a $1,000 on the business side when they
report it. As long as you are making the payments, they are going to be like, "Yay, good
job, business. You are able to pay your debts."
They care about how you manage your debts. But on the personal side, they care
that you are not really using your debt. They really want you to be very careful.
They care about things about debt ratio. Just just a totally different world. And
some of the things that you do on the personal side,
you're literally rewarded for on the business side. So, the business side has
so much more to offer. So, again, if you feel bad because you have bad personal
credit, I'm here to tell you do not feel bad. We have a solution for you. Now that
you understand the difference between personal credit and business credit,
let's get into how you build your business credit. Because again, if you
have bad personal credit, we're not even going to worry about that. We are just going to
ignore that and we're going to just start talking about how to get some good
business credit bills so you don't even care about your bad personal credit.
Well, not for right now anyway. So, let's talk about what you need. These are the
must-haves. In order to really start building your business credit, you have
to have your business registered with whatever state you're in, okay? So, if you
don't have an LLC or you don't have your S corp or your C Corp or your DBA or
whatever you don't have, you don't have your business registered then you need
to have your business registered. That is clear-cut step one, okay? Name your
business and then get a business right. Get your business registered. The next
thing: Once you do that the next steps are super easy. Most of them are free. You
want to get an EIN number with IRS.gov. You want to go ahead and get an email,
you want to get a phone number. You want to get a business website. Again,
make your whole business. And the funny part about it is it really does not take
very long. I have students that are able to put their whole business together in
a matter of days, okay? And in some cases, it's not even days as hours depending on
what state you're in. Because there are certain states where you can just go
online and fill out all the paper to register your business. And some states,
there's a delay you have to wait a few days. So, if you are in certain states, you
can get all of this done in a matter of hours and you can have an established
business already set up that you can get credit to. And the great thing about it
is when you do this, the business becomes its own entity, okay? You as a person with
your social security number, you're an entity, you're recognize as a
thing. But if you create a business like I have, my business is in its own entity.
It's almost like it's a separate person. It can borrow money, it can pay debts and
again, it can even die. So, the great thing about it is this is something that
you can duplicate over and over again. Once you have one Social Security number,
it's kind of illegal to get another one. But if you have a business and you set
it up and you get business credit, you can repeat that step. And I literally
have students that have 2 or 3 businesses and they have millions of
dollars in funding just by repeating what I'm teaching you. You just do it one
time and they duplicate the process. Let's get to the next step. The next step
it's so easy. Because this is how you can actually get business credit. This is
some people that will literally lend you money. You with bad credit, they will lend
you money. They will lend your business money. And some of those companies right
now are PayPal, Square and Kabbage. And that's cabbage with a K. Those 3
companies right now are what we call subprime lenders in a sense because they
are lending startup companies companies that are not 2 years old. Companies
where the owner of the business does not have great personal credit. They are
lending you money, okay? And the key to this is you have to have transactions
with them, okay? So, once you set up your PayPal business and your Square business
account and your Kabbage account, again, this all has to be business. Because some
of them they'll ask you if you want to set up a person or if you want to set up
a business profile. And you want to set up a business profile which is actually
why I told you to do that other stuff before. Because
if you don't have the business EIN number and all the stuff then you're not
going to have anything to fill in. But it's super easy to get those things done and
it's super easy to apply and start opening up those accounts. Once you have...
And I'll just give an example. Because I just had a student. Let me tell you what
they did. So, they started their business probably about 6 months ago, okay? This
guy. And he is really works full-time. So, it's not like he had tons of time or
tons of money. But he had personal credit that really was not good. And I was
telling him, "It's okay if you have bad credit. Don't worry about that. I used to
have bad credit. I don't care. You can fix that. That's not like a permanent stamp
"bad credit". You do not have bad credit for your whole life. You don't have to.
It's up to you." So, he's like, "Are you sure?" And we worked
through this. So, what he did was what I just told you
you ain't got a business license and he set it up with PayPal. And then he was
able to do some partnerships with a few people were he's able to send them some
invoices, they paid his invoices and so he was able to create some transactions
in his business. And again, you don't need a lot of transactions. PayPal just wants
to see that you're using their service. And I'm going to tell you why because it's
kind of funny. So, they make money off of you.
That's the big secret to this. So, for example, when you set up your business
account with PayPal and you start using and sending invoices, every time someone
pays one of your invoices, they are going to charge a fee,
okay? So, just giving you a raw example. You send out a PayPal invoice to
somebody and it's 4-5 hundred dollars. You're probably only going to get
like $490 or whatever. I think their fee is like 3%.
So, you're going to not get the whole 500. PayPal gets money
every single time that someone pays with a credit card. And that's how they make
their money. But do not feel ashamed about that. Do not get mad about that.
That is okay. Because they have done an awesome thing. And again, at the time of
this recording, they are literally they have lots and
lots of money. This company... PayPal owns eBay. Remember PayPal used to be owned by
Elon Musk. It's actually a very, very cash heavy company. They have a lot of
money. So, they actually were very smart. And what they started to do is they
started to lend that money back to the people that were using the service. So, if
you are one of those people and you start using their service after 3 months,
literally three months, they sent my student a loan, a working capital loan.
They have 2 different types on that. Working capital and they have a loan
builder. They sent him you know application after three months and he
got $10,000 in his business's name, no personal guarantee. So, this is very easy
stuff to do. And again, he had a very low credit score. I know for a fact it is
less than 600 because I saw for myself. So, this is not something that is
hard to do. It is pretty easy. You just got to get it done. Alright, I'm going to
give you another secret because that was amazing. And again, how a student just
got $10,000. And I'm going to give you another one. My student just got
1,500. And this was just 3 days ago, okay? Since it's super easy too. Have you
heard of secured savings accounts? Well, you can get a loan, it's called a secured
loan against your savings account. So, when you go to open up your business
checking account, make sure you open up a business savings account if you can. And
in many cases, so say for example, you have just $1,000. Maybe you
have it in a 401K, you have it saved. Put it in that savings account and then they
will loan you that money back, okay? And they pretty much do not care about your
credit score. So, it's called a secured savings loan. They do this with savings
accounts. Some companies some banks do it with checking accounts. Not all but
almost all of them doing with savings accounts. And many companies like
credit unions also do them against CDs. So, if you don't... Your major banks like
Wells Fargo and Chase and Bank of America, they'll do it against the
savings accounts. And trust me, I literally have gotten them. I actually
have 2 right now. Because if you ever need to boost up
your own credit, this is a way to boost up your own credit. Because it's an
installment loan. That is the amazing thing. So, I'm not going to get into all of
the different types of loans that there are. But remember, there's credit cards
which is unsecured. There's installment loans like your car note. And they all
have a different value. Installment loans actually are really good for your credit.
And this is the easy way to get one with bad credit. I literally had a student, he
put $1,500 into the savings account and then he got a loan
in the business' name for $1,500. Because again,
they'll lend you the same money back. So again, gives it to them, he signs a loan.
He has to pay them I think $80 per month. And then they hand him
back the $1,500. And now I was reporting on his credit report. Boom.
And this is the easy one. I've talked about this one a lot. This is vendor credit, okay? So,
another quick way to build business credit and when you have a bad personal
credit is to go ahead and get some vendor accounts. But the key to this is
they need to report to the credit bureaus, okay? So, just because someone
will say, "Alright. You know you could pay me in 30 days..." Or say for example,
you're going to have some t-shirts printed up. And you're going to use this company.
They're going to print up some t-shirts and they'll say, "Okay, you can pay me in 30
days or you pay me in 60 days." That's great because they did extend you credit.
But it really is great if they report to the credit bureau. Because you want
credit for everything you do. Because you're going to try to get this business
credit built up quickly. And so, here's what I recommend: There's 3 companies
out there that I know for a fact report to Dun & Bradstreet and they give money
to startups. I have students that are getting vendor credit from them
on day one where they're like, "Okay, here's a net 30." And just giving it to
them immediately, okay? And that is Uline Quill, Grainger, okay? Those are like my top
3. I know all three of those companies report to Dun and Bradstreet.
You could do a just a small purchase it has to be at least $50 to for them to
report. And it can even be a cash transaction. So, even if they won't extend
you credit, they will still report that transaction to the credit bureaus. And it
really works. Okay, guys? This is amazing and this will help you build your credit
really fast. And then once you get those credit trade lines to report, you can
just go to the next level and start getting gas cars like Chevron, Texaco
those fleet cars. They'll give those out pretty easily. And then Amazon
and Walmart and a few other ones are like right behind it. And sky is the limit.
Then I have also have students that'll king after they do those 3 rounds,
probably the to get to the third round probably takes about three to 6 months.
Again, because this is what bad credit, alright? So, if you have a good credit,
this doesn't take as long. But we're talking about crap credit, low credit
scores. If you're going to take it, it's going to take you 3 or 6 months to
get to this next level where they're giving you those chases and those other
things without a personal guarantee, okay? So... Becusae that's what you
want. The great thing about business credit is you can get it with a personal
guarantee but that usually requires good personal credit. And that's what you've
probably all heard about where everybody's like, "Oh, you need good credit."
No, you don't. Some places do not require a personal guarantee. You just have to go
about it the right way and already have some trade lines. Alright, guys. I'm
going to tell you to go ahead and watch a video that I'm a call How Business
Credit Scores Work. I need you to watch that in conjunction with this video. It
is so important you know are giving you all this information. I want you guys to
be successful. Noelle loves all of you and wants you to be successful. So,
I'm getting you free information. And I want to make sure that you do these
things. So, make sure that you watch that video --How A business Credit Score Works?
I'll put a link to it below so you can go ahead and watch that video.