Day: August 21, 2020

Establishing Corporate Credit in a Recession

Do you know about establishing corporate credit during a recession? And what about for a startup? As a brand-new company, by definition, you have no or little commercial credit history, so it can be hard. When you ask: What is the credit score of a new company? The answer is– it’s usually not so great. But don’t worry! Here are some ideas which will work – even as COVID-19 keeps changing our economy.

The good news is, business credit does not rely upon financial institutions. Or economies, or viruses.

Every Entrepreneur Needs to Know About Establishing Corporate Credit

Corporate credit is credit in a corporation’s name. It doesn’t attach to an owner’s individual credit, not even when the owner is a sole proprietor and the sole employee of the corporation. 

As a result, a business owner’s business and consumer credit scores can be very different.

The Advantages When Establishing Corporate Credit

Because corporate credit is distinct from personal, it helps to secure an entrepreneur’s personal assets, in case of litigation or corporate insolvency.

Also, with two separate credit scores, a business owner can get two different cards from the same merchant. This effectively doubles purchasing power.

Another benefit is that even startups can do this. Heading to a bank for a business loan can be a recipe for frustration. But establishing corporate credit, when done right, is a plan for success.

Personal credit scores depend on payments but also other elements like credit usage percentages. 

But for corporate credit, the scores truly only hinge on if a company pays its bills in a timely manner.

The Process

It’s a process  when you’re establishing corporate credit. It does not occur automatically. An entrepreneur must actively work on establishing corporate credit during a recession or any type of economic conditions.

Having said that, it can be done easily and quickly, and it is much more rapid than establishing consumer credit scores. 

Merchants are a big component of this process.

Doing the steps out of sequence results in repetitive denials. Nobody can start at the top with corporate credit. For instance, you can’t start with retail or cash credit from your bank. If you do, you’ll get a rejection 100% of the time.

Corporate Fundability

A corporation must be fundable to credit issuers and vendors. 

Hence, a corporation needs a professional-looking web site and email address. And it needs to have website hosting bought from a merchant such as GoDaddy. 

Also, company phone and fax numbers should have a listing on 411. You can do that here: http://www.listyourself.net. 

Likewise, the company telephone number should be toll-free (800 exchange or the like).

A corporation also needs a bank account devoted only to it, and it needs to have all of the licenses necessary for operating. 

Licenses

These licenses all have to be in the identical, accurate name of the corporation. And they need to have the same company address and telephone numbers. 

So note, that this means not just state licenses, but possibly also city licenses.

Recession Business Cash Today Credit Suite

Learn more here and get started with establishing corporate credit. Get money even in a recession! 

Working with the Internal Revenue Service

Visit the IRS website and get an EIN for the business. They’re free. Choose the type of corporation which works best, i.e. LLC, C-corp, or S-corp. 

A corporate business entity is best to limit risk. And it will make the best use of tax benefits.

A business entity matters when it involves tax obligations and liability in case of litigation.

Establishing Corporate Credit by Starting the Reporting Process

Start at the D&B web site and get a free D-U-N-S number. A D-U-N-S number is how D&B gets any business in their system, to generate a PAYDEX score. If there is no D-U-N-S number, then there is no record and no PAYDEX score.

Once in D&B’s system, search Equifax and Experian’s sites for the business. You can do this at www.creditsuite.com/reports. If there is a record with them, check it for accuracy and completeness. If there are no records with them, go to the next step in the process. 

This way, Experian and Equifax have something to report on.

Vendor Credit

First you should establish trade lines that report. This is also called vendor credit. Then you’ll have an established credit profile, and you’ll get a corporate credit score. 

And with an established corporate credit profile and score you can begin to acquire retail and cash credit.

These sorts of accounts often tend to be for the things bought all the time, like marketing materials, shipping boxes, outdoor work wear, ink and toner, and office furniture.

But first of all, what is trade credit? These trade lines are credit issuers who give you starter credit when you have none now. Terms are often Net 30, versus revolving. 

Hence, if you get approval for $1,000 in vendor credit and use all of it, you need to pay that money back in a set term, such as within 30 days on a Net 30 account.

Details

Net 30 accounts need to be paid in full within 30 days. 60 accounts need to be paid fully within 60 days. Compared to with revolving accounts, you have a set time when you must pay back what you borrowed or the credit you used. 

To begin your corporate credit profile the right way, you ought to get approval for vendor accounts that report to the business credit reporting agencies. As soon as that’s done, you can then make use of the credit. 

Then pay back what you used, and the account is on report to Dun & Bradstreet, Experian, or Equifax.

Vendor Credit – It Helps

Not every vendor can help in the same way true starter credit can. These are merchants that grant an approval with nominal effort. You also want them to be reporting to one or more of the big three CRAs: Dun & Bradstreet, Equifax, and Experian.

You want 3 of these to move onto the next step, which is retail credit. Here are some stellar choices from us: https://www.creditsuite.com/blog/5-vendor-accounts-that-build-your-business-credit/ 

 Accounts That Don’t Report

Non-reporting trade accounts can also be helpful. While you do want trade accounts to report to a minimum of one of the CRAs, a trade account which does not report can still be of some worth. 

You can always ask non-reporting accounts for trade references. Also credit accounts of any sort ought to help you to better even out business expenditures, consequently making budgeting simpler. These are providers like PayPal Credit, T-Mobile, and Best Buy.

In particular, during a recession, it can only help you more, the faster you build corporate credit. Adding trade references will help to speed along the process.

Retail Credit

Once there are 3 or more vendor trade accounts reporting to at least one of the CRAs, then move onto retail credit. These are companies like Office Depot and Staples. 

Just use your Social Security Number and date of birth on these applications for verification purposes. For credit checks and guarantees, use the business’s EIN on these credit applications.

Fleet Credit

Are there more accounts reporting? Then progress to fleet credit. These are businesses such as BP and Conoco. Use this credit to buy fuel, and to repair, and take care of vehicles. Only use your SSN and date of birth on these applications for verification purposes. For credit checks and guarantees, make certain to apply using the company’s EIN.Get Recession Money Now Credit Suite

Learn more here and get started with establishing corporate credit. Get money even in a recession!

Cash Credit

Have you been responsibly handling the credit you’ve up to this point? Then move to more universal cash credit. These are businesses such as Visa and MasterCard. Just use your SSN and date of birth on these applications for verification purposes. For credit checks and guarantees, use your EIN instead.

These are usually MasterCard credit cards. If you have more trade accounts reporting, then these are in reach.

Establishing Business Credit in Recession Credit Suite

Learn more here and get started with establishing corporate credit. Get money even in a recession!

Monitor Your Corporate Credit

Know what is happening with your credit. Make certain it is being reported and address any errors as soon as possible. Get in the habit of taking a look at credit reports. Dig into the particulars, not just the scores.

We can help you monitor corporate credit at Experian and D&B for 90% less than it would cost you at the CRAs.

At Equifax, you can monitor your account at: www.equifax.com/business/business-credit-monitor-small-business.

Update Your Record

Update the details if there are mistakes or the details is incomplete. At D&B, you can do this at: https://iupdate.dnb.com/iUpdate/viewiUpdateHome.htm. For Experian, go here: www.experian.com/small-business/business-credit-information.jsp. So for Equifax, go here: www.equifax.com/business/small-business.

Fix Your Corporate Credit

So, what’s all this monitoring for? It’s to challenge any problems in your records. Errors in your credit report(s) can be taken care of. But the CRAs normally want you to dispute in a particular way.

Get your business’s PAYDEX report at: www.dnb.com/about-us/our-data.html. Get your company’s Experian report at: www.businesscreditfacts.com/pdp.aspx?pg=SearchForm. And get your Equifax corporate credit report at: www.equifax.com/business/credit-information.

Disputes

Disputing credit report mistakes typically means you send a paper letter with duplicates of any proofs of payment with it. These are documents like receipts and cancelled checks. Never send the original copies. Always send copies and keep the originals.

Fixing credit report errors also means you specifically detail any charges you dispute. Make your dispute letter as understandable as possible. Be specific about the problems with your report. Use certified mail to have proof that you sent in your dispute.

Dispute your or your company’s Equifax report by following the instructions here: www.equifax.com/small-business-faqs/#Dispute-FAQs. 

You can dispute inaccuracies on your or your business’s Experian report by following the directions here: www.experian.com/small-business/business-credit-information.jsp. 

And D&B’s PAYDEX Customer Service telephone number is here: www.dandb.com/glossary/paydex.

A Word about Establishing Corporate Credit

Always use credit sensibly! Never borrow beyond what you can pay off. Keep an eye on balances and deadlines for payments. Paying on schedule and fully does more to boost corporate credit scores than just about anything else.

Growing corporate credit pays. Good corporate credit scores help you get loans. Your lender knows the company can pay its financial obligations. They understand the corporation is authentic. 

The corporate EIN attaches to high scores and lending institutions won’t feel the need to require a personal guarantee.

Takeaways for Establishing Corporate Credit in a Recession

Corporate credit is an asset which can help your corporation for many years to come.

The post Establishing Corporate Credit in a Recession appeared first on Credit Suite.

Get Business Credit Without SSN, and Other Tips for Becoming Fundable

Did you know you can apply for credit in your business name and it won’t hit your personal credit report?  You can, no matter what is happening with the economy!  There’s a trick to it though.  You have to set your business up properly, and you have to apply with the right information.  It is possible to get business credit without SSN being an issue.

Get Business Credit without SSN and Make Your Business More Fundable

When you get business credit without using your SSN, you take the first step in obtaining credit in the name of your business.  That is separate credit that only affects the credit score of your business, not your personal credit score. 

Of course, there is way more to separating business credit from personal credit than knowing how to get business credit without SSN, but that is definitely a place to start.

Check out our best webinar with its trustworthy list of seven vendors to help you build business credit, even in a recession.

Get Business Credit Without SSN

get biz credit without SSN Credit SuiteThere is really no amazing trick to this.  You can easily get business credit without SSN by simply using an EIN (Employer Identification Number) in place of the SSN on credit applications.  That one simple step will disconnect debt taken in the name of your business from your personal debt.  Again, there are a few more steps to keep it completely separate but, this is huge and very simple. 

You can get an EIN for free on the IRS website.  Just go to IRS.gov and apply.  The process is fast.  Once you have that number, you have taken the first step in building credit for your business separate from yourself.  This is the pivotal step getting business credit without your SSN.

It is important to note that you may have to provide your SSN for identification purposes to help prevent fraud.  However, this is different than getting credit using your SSN.  If you use your social security number for identification purposes only, the debt will still not be connected to it. 

Separate Your Bank Accounts

You have to open a separate, dedicated business bank account.  There are a few reasons for this.  First, it will help you keep track of business finances.  It will also help you keep them separate from personal finances for tax purposes. 

There’s more to it however.  There are several types of funding you cannot get without a business bank account.  Many lenders and credit cards want to see one with a minimum average balance.  In addition, you can’t get a merchant account without a business account at a bank. The result is, you cannot take credit card payments.  Studies show shoppers usually spend more when they can pay by credit card.

Kick Your Business Out of the Nest! Separate Contact Info Is a Must

Your business needs its own phone number, fax number, and address.  You can still run your business from your home or on your computer.  You don’t even have to have a fax machine.  

In fact, you can get a business phone number and fax number that will work over the internet instead of phone lines without a lot of trouble.  In addition, the phone number will forward to any phone you want it to.  You can simply use your personal cell phone or landline if you want.  Whenever someone calls your business number it will ring straight to you. 

Faxes can be sent to an online fax service, if anyone ever happens to actually fax you.  This part may seem outdated, but it does help your business appear legitimate to lenders. 

You can use a virtual office for a business address. How do you get a virtual office?  What is that?  It’s not what you may think.  This is a business that offers a physical address for a fee, and sometimes they even offer mail service and live receptionist services.  In addition, there are some that offer meeting spaces for those times you may need to meet a client or customer in person.

Make Sure Your Website and Email Address are In Synch

What does a website and email address have to do with business funding?  These days, you do not exist if you do not have a website.  However, having a poorly put together website can be even worse.  It is the first impression you make on many, and if it appears to be unprofessional it looks bad to lenders as well as customers. 

Spend the time and money necessary to make sure your website is professionally designed and works well.  Pay for hosting too. Don’t use a free hosting service.  Along these same lines, your business needs a dedicated business email address.  Make sure it has the same URL as your Website.  Don’t use a free service such as Yahoo or Gmail. 

Incorporate

Incorporating your business as an LLC, S-corp, or corporation is non-negotiable.  It lends credence to the legitimacy of your business. It also offers some protection from liability. 

Which option you choose does not matter as much for fundability as it does for your budget and needs for liability protection.  The best thing to do is talk to your attorney or a tax professional.  

Now, incorporation is important to business credit building.  However, so is time in business.  The longer you have been in business the more fundable you appear to be. Time in business starts on the date of incorporation, regardless of when you actually started doing business. That means, it is vital to incorporate as soon as possible.

Check out our best webinar with its trustworthy list of seven vendors to help you build business credit, even in a recession

Where to Start to Get Business Credit without SSN

Once you have these things in place, you can start applying to get business credit without SSN, but with your EIN.  Don’t just jump into credit cards.  It helps to begin with starter vendors.  There are a few out there.  

Starter vendors are vendors that sell items you use everyday in the course of business.  They will extend credit in the form of net terms on invoices without a credit check.  Then, they will report payments on those invoices to the business credit reporting agencies.  

If you have followed the steps, then when they report those payments, they will be reporting in your business name to the business credit reporting agencies such as Dun & Bradstreet, Equifax, and Experian. This is how you start to build your business credit score. 

Get Business Credit Without SSN: What Next? 

After you get enough starter vendor accounts reporting, you’ll be able to apply for other types of cards and without your SSN.  The key is to apply for certain types of cards in a specific order.  For example, it is best to start with store cards.  These are cards that are issued with a specific store name.  Typically, you can only use them at that specific store or on that store’s website.  Examples include Office Depot and Best Buy. Some fleet cards fall into this category as well. 

Fleet cards are cards that you can only use for fuel or auto repair and maintenance.  It is usually easier to get approval for these cards after you have several starter vendors and store cards reporting.  Examples of fleet credit cards include Fuelman and Shell. 

After enough of these types of accounts are reporting to the business credit reporting agencies in your business name, with your EIN, then you can apply for general use credit cards.  Those are the credit cards you can use anytime, anywhere, on anything.  Usually, they have the best interest rates and rewards.  They also have the highest credit limits, meaning you have instant access to the funds you need to run your business day in and day out. 

Get Business Credit With SSN: A Warning

Here are a few key things to remember when you get business credit without SSN.  

First, the whole point is to separate your business credit from your personal credit.  Why do this?  There are a few reasons.  For example, you typically get a higher credit limit when you get credit related to your business with an EIN than you would with your SSN. 

Another reason, however, is so that your personal credit is not affected if you have problems on your business credit report.  However, you want your business credit to be strong also.  The only way to make this happen is to handle your credit responsibly.  Do not bite off more than you can chew. Make your payments regularly and on-time.  Bad business credit is just as harmful as no business credit. 

Keep and Eye on Your Business Credit

It’s important to keep an eye on your business credit while you are going through this process.  Once you get business credit without SSN, you’ll need to keep tabs on which accounts are reporting, how many accounts are reporting, and what your score looks like.  This is how you will know when it is time to apply for other types of cards. 

It is also how you will know when there is a mistake.  If you do see a mistake, you can contest it in writing to have it removed.  

When it comes to business credit monitoring, there are a few different credit reporting agencies. The main three we have already mentioned.  They include Dun & Bradstreet, Experian, and Equifax.  There are others as well, but if you know what your business credit score is with the main three, you can have a good idea of what it is with any credit reporting agency. 

Funding in the Meantime

It takes some time to get business credit without SSN.  If you need money to run your business quickly, while you work through the process, you might consider a credit line hybrid. This is revolving, unsecured financing that allows you to fund your business without putting up collateral.  Furthermore, you only pay back what you use.  

It’s easier than you may think to qualify.  You can do so with a personal credit score that is way below what you would need to get approval for a term loan or line of credit at a traditional bank.  The minimum is 685. Even if you did get approval at a traditional bank with this score, your interest rate would be much more than what is typical with a credit line hybrid. 

In addition to meeting the minimum credit score requirement, you can’t have any liens, judgments, bankruptcies or late payments.  Also, in the past 6 months, you should have less than 5 credit inquiries, and less than a 45% balance on all business and personal credit cards.  While it is preferred that you have established business credit as well as personal credit, it is possible to qualify without business credit. In fact, a credit line hybrid can help build business credit. 

What If I Don’t Qualify?   

If you do not meet all of the requirements, there is still a chance. You can take on a credit partner that meets each of these requirements.  Many business owners work with a friend or relative to fund their business.  If a relative or a friend meets all of these requirements, they can partner with you to allow you to tap into their credit to access funding. 

What Makes a Credit Line Hybrid A Good Option? 

There are many benefits to using a credit line hybrid.  First, it is unsecured, meaning you do not have to have any collateral to put up.  Next, you do not have to provide any bank statements or financials.  

Also, typical approval amounts are up to 5x that of the highest credit limit on the personal credit report. Additionally, interest rates can go as low as 0% for the first few months.  You can put that savings back into your business.

Check out our best webinar with its trustworthy list of seven vendors to help you build business credit, even in a recession

The process is pretty fast, especially with a qualified expert to walk you through it.  One other benefit is this.  With the approval for multiple credit cards, competition is created.  This makes it easier to get interest rates lowered and limits raised every few months. 

Get Business Credit Without SSN and Have Access to Funding to Run and Grow Your Business

One of the largest parts of establishing business credit is to get business credit without SSN.  If you use your SSN to apply, that account is going to end up on your personal credit report.  This is the opposite of what you want.  However, using an EIN instead of an SSN is not enough.  You have to follow the other steps to create separation between you and your business. Then, you will be well on your way to building business credit separate from your personal credit. Now is a great time to get started.

The post Get Business Credit Without SSN, and Other Tips for Becoming Fundable appeared first on Credit Suite.

The Benefits of Small Business Credit Cards

The Benefits of Small Business Credit Cards

Service debt cards are really important for tiny organisations. These credit scores cards use the most vital accounting professional advantage to little service proprietors, which is to maintain service costs different from individual costs.

Running a little organisation calls for service proprietors to preserve precise document maintaining and also track expenditures. It divides individual costs from company expenditures and also classifies expense with no demand for resolving your expenditures. Service proprietors are able to handle their organisation much more carefully since of the information deals videotaped on their regular monthly service declaration.

The significant goal in doing organisation is to make an earnings as well as to remain in service. Exact documents at your finger ideas will certainly aid in handling money circulation with precision, making best choices, making an earnings and also ultimately remaining in service as the company expand.

Company credit history cards have attributes equivalent to common credit scores cards such as, reduced initial APR, money back, benefits, constant leaflet miles, no yearly charges, 0% Intro APR, equilibrium transfers and so on. The huge distinction is that organisation debt cards are enhanced to conserve cash on company acquisitions.

Company credit scores cards have extra advantages such as on the internet account administration as well as might have alternative to download and install declaration right into QuickBooks, automobile insurance policy, greater money developments, individualized company debt card, cost-free added cards, year end declaration to submit revenue tax obligation, greater unsafe credit rating limitation. Shield your credit rating by making credit scores card settlements on time to stay clear of charges.

Prior to using for a little organisation credit score card you will certainly require to do some study. An instance would certainly be service proprietor making best use of the advantages of the company credit rating card by having the fleet of cars acquire its gas from a business that supplies the most pay back or workers flying on airline companies that supplies the a lot of bonus offer miles that can be made use of for complimentary airline company ticket.

Little service proprietors need to recognize regarding the consequences concerning making late settlements, default on settlements as well as that is liable for any kind of expenditures sustained if your debt card is taken and so on. If the service proprietor defaults on credit-card repayments the financial institutions can go after the individual that authorized the credit score card application.

Company credit report cards are extremely important for tiny services. These credit score cards supply the most vital accounting professional advantage to little organisation proprietors, which is to maintain organisation costs different from individual expenditures. Organisation proprietors are able to handle their service a lot more intelligently since of the information deals tape-recorded on their month-to-month service declaration.

Organisation debt cards have added advantages such as on-line account monitoring and also might have alternative to download and install declaration right into QuickBooks, car insurance policy, greater money breakthroughs, customized company credit score card, totally free extra cards, year end declaration to submit revenue tax obligation, greater unprotected credit scores restriction. An instance would certainly be organisation proprietor making best use of the advantages of the service credit scores card by having the fleet of lorries purchase its gas from a business that provides the most pay back or workers flying on airline companies that provides the a lot of bonus offer miles that can be made use of for totally free airline company ticket.

42 (YC W14) Is Hiring Software Engineers (Remote) – JavaScript/Python

Article URL: https://jobs.42.engineering Comments URL: https://news.ycombinator.com/item?id=24221080 Points: 1 # Comments: 0

The post 42 (YC W14) Is Hiring Software Engineers (Remote) – JavaScript/Python appeared first on ROI Credit Builders.