5 Hacks to Get a Credit Score Increase for Your Business

It’s easy to find quick tips on how to increase credit score on your personal credit report.  You won’t find as much about business credit score at all, let alone how to get a credit score increase. Many business owners do not even know a business can have its own credit score, while others think their business has one and in reality,  it does not. 

Build a Solid Business Credit Profile and Watch Your Credit Score Increase

A business credit score is very different from a personal credit score.  The information a lender gets from it is similar, but it is related to the creditworthiness of the business separate from the owner.  Your business credit accounts do not affect your personal credit score at all.  

Keep your business protected with our professional business credit monitoring.

This protects your personal finances if your business doesn’t do well.  Your personal credit will not suffer due to unpaid business accounts, and you can retain the ability to purchase things like a house or a car. 

Beyond that, a strong business credit score gives you access to more funding for your business.  This can help you be more successful, and help ensure your business can thrive.  But, how do you even begin to build a business credit score, let alone get a credit score increase.

Hack #1: Proper Setup

Your personal credit score just kind of happens.  You get credit, pay your bills on time, and the accounts report your payments to your credit report. If you handle your personal credit responsibly, you will have a good score.  If not, you won’t. 

A business credit profile is different.  You have to work intentionally to establish it and build your score. Just because you have a card that says “business credit card” on it does not mean it is in your business name. It isn’t necessarily reporting to your business credit report.  It could, and in fact probably is, reporting to your personal credit if you haven’t taken some steps to separate your business from yourself. 

If your business is not set up to be a fundable entity separate from you the owner, you won’t have a business credit score at all. So, the first step is to increase it from non-existent into existence by setting up your business to be fundable. Here’s how. 

Contact Information

The first step in setting up a foundation of fundability is to ensure your business has its own contact information.  That doesn’t mean you have to get a separate phone line, or even a separate location.  You can get a business phone number easily that will work over the internet instead of phone lines.  In addition, the phone number will forward to any phone you want it too so 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. 

You need a physical business address. A PO Box or an UPS Box will not work. 

Keep your business protected with our professional business credit monitoring.

EIN

The next thing you need to do is get an EIN for your business.  This is an identifying number for your business that works in a way similar to how your SSN works for you personally.  You can get one for free from the IRS. You may still have to provide your SSN for identification purposes, but your EIN will designate your business as separate.

Incorporate

Incorporating your business as an LLC, S-corp, or corporation is necessary to fundability.  It lends credence to your business as one that is legitimate. It also

offers some protection from liability. 

Business Bank Account

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, and some creditors require a separate account. Also, it is a requirement for a merchant account, which allows you to accept payments via credit card.

Hack #2: Add Accounts That Report

Here is another key way that your business credit profile is different from your personal credit profile.  Pretty much all personal accounts report your payments, or lack thereof, to the credit reporting agencies (CRAs).  In contrast, only about 7% of business creditors will report payment history to your business credit report. This makes finding accounts that will report to the business CRAs essential.  

It’s easier said than done however.  Creditors do not make this information easy to find.  We have a hack that can help you find vendors that will report, so don’t stop reading. 

 

Hack #3: Pay bills on time!

Okay, so if you made it this far and realize you may not have a business credit score at all, now you know how to fix it.  However, if you do already have an established business credit profile, but need a credit score increase, this is the key.

It sounds like a no-brainer, and most asking the question of how to get a credit score increase are looking for a different answer.  However, this is the absolute best way to raise your credit score.  

In fact, it is much more important with business credit scores than with personal credit scores. That’s because there are a few different things that are used to calculate personal credit.  Payment history is one of them, and the most important, but it is not the only one.  Also, a payment isn’t really considered late for personal credit score purposes until it is over 30 days late. 

Keep your business protected with our professional business credit monitoring.

When it comes to your business credit score however, payment history is virtually all that matters.  Not only that, but a payment is reported as late when it is as little as one day late. So, late payments have a much larger impact on your business credit score. Do whatever you have to do to get those payments in on time.

Hack #4: Make Sure Your Personal Credit Score is on Track

Now here is a fun twist.  Remember how I said your business credit accounts do not affect your personal credit score? The reverse is not exactly true.  While personal accounts do not report to the business credit CRAs, your personal credit can be used in the calculation of your business credit score in some cases.  So, one way you can potentially increase credit score for your business is to improve your credit score on your personal credit profile. 

 

 

Hack #5: Work With a Business Credit Expert

Here is the number one hack if you are looking for a credit score increase.  You absolutely need a business credit expert.  It’s not hard to raise your personal

credit score.  All accounts report, and paying on time and being otherwise responsible with your credit does the trick.

A business credit score is much more complicated.  Establishing a profile isn’t so hard, but there is a lot more to fundability than that. In fact, there are over 100 factors that contribute to the fundability of a business.  That means, you could pay your debt responsibly for years, and if you do not have accounts that report it will make no difference. Even worse, without some help, you may never know what is causing you to be denied funding.

A business credit expert can walk you through the process and help you navigate the complicated web of fundability.  They can help you analyze it and figure out how to improve it if needed. Then, they know where to look and who to talk to to help you find accounts that report.  In the end, a business credit expert is the best way to build credit score for your business. 

Get a Credit Score Increase By Working With a Business Credit Expert

Technically you could give this a shot yourself now that you know what’s what. However, as you can see in the image above, it’s a lot.  There is a secret sauce of sorts, and it pays to have a business credit expert help you.  They know the secrets, and they can save you a lot of time.  We all know time is money, and with all the tiny details, chances are if you try to do it alone something will be missed.  An expert can walk alongside you and make sure you take the fastest, smoothest route possible to building a strong overall business credit profile.

The post 5 Hacks to Get a Credit Score Increase for Your Business appeared first on Credit Suite.

7 Strategies for Memorial Day Sales

Memorial Day means many things to many people. At its heart, it’s a day to commemorate the brave American soldiers who died fighting for this country. For many, the Memorial Day weekend also marks the start of summer and a chance to grab a deal in the annual holiday shopping event.

The shopping event is no longer the preserve of brick-and-mortar stores. Research by Namogoo shows e-commerce fashion sales soared over Memorial Day 2020, up 380 percent compared to the year before. Conversions increased by 335 percent, too.

These kinds of figures don’t happen by magic, however. Marketing plays a crucial role in your store’s success.

That’s why I’m going to show seven strategies to send your Memorial Day sales soaring.

7 Tips for E-Commerce Memorial Day Sales

A record-breaking Memorial Day doesn’t happen by luck. By using one or several of the following tips, you give your store a better chance of getting noticed, winning new customers, and having a great weekend.

1. Run a Paid Ad Campaign Showcasing Your Sales

Succeeding over the Memorial Day weekend is all about standing out. Big brands may do this with television commercials or billboards. Smaller brands often stick to social media. I recommend combining the two via a paid ad campaign on social media.

While few brands can afford to go all out on a TV ad, many e-commerce brands can afford a short paid ad campaign, especially if it’s optimized for conversions.

There are two crucial factors you need to get right: The channel you advertise on and the creative you use.

I recommend sticking to Facebook or Google for your paid ads. These platforms offer the greatest reach and the best targeting tools to help make sure your paid media budget goes the furthest.

When it comes to ad creative, it’s all about standing out. Using red, white, and blue, and an American flag are a given. But also consider including summer-related imagery that so many consumers relate to the holiday.

It’s essential to remember that, unlike Independence Day, this is a day of remembrance. Keep your tone respectful of the fallen and their loved ones, even if you’re focusing on summer fun. This ad from My Mind’s Eye does a great job of finding this balance: It’s eye-catching, positive, and still reminds viewers of the reason for the holiday.

Tips for E-Commerce Memorial Day Sales - Run a Paid Ad Campaign Showcasing Your Sales

Use Memorial Day hashtags on social media platforms, but be careful about the kind of content you post. Some people may be using these hashtags to search for information around the holiday itself and may be offended by overly promotional material.

2. Tease Your Sales on Social Media Without Revealing What They Are Until Memorial Day

Teasing your Memorial Day sales on social media is a fantastic way to drum up anticipation and build a potential customer base well before the big day. By running it on social channels, you have the chance to pick up thousands of new users who have never shopped with you before.

Get your social media calendar in place well ahead of the holiday. The more time you have to post, the more anticipation you can build. This is as true for your email marketing campaign as it is for your social media posts.

For example, The Pampered Iggy—an artist who makes outfits for Italian Greyhounds—teases their upcoming Memorial Day sales in this simple but effective image:

Memorial Day Sales - Tease Your Sales on Social Media

3. Run a Flash Sale

Unlike the winter holiday shopping season, Memorial Day sales last for a couple of days at most. This makes it ripe for flash sales.

These sales typically come with substantial discounts and are all about encouraging consumers to make impulse purchases. They’re also a great way to grab some press attention and make sure customers visit your store over your competitors.

Focusing on your new summer products is the best strategy here. Many consumers wait until Memorial Day weekend to make their spring and summer purchases, so they’re on the lookout for this season’s items. Make the discounts too good to avoid.

Getting the word out about your sales will be just as important. Consider using a paid ad campaign as I described above to promote your sales, but don’t forget about your email list or social media followers.

4. Sell Winter Items at a Deep Discount

Everyone loves a discount, especially on Memorial Day. Price drops between 20 percent and 90 percent are common. There’s no better time to get rid of leftover winter items while attracting new customers than to sell them cheap.

These sales can run alongside your standard Memorial Day sales events, or they can stand on their own. It all depends on what products you stock for summer. Brands that tend to do well during the summer months may prefer to emphasize their new line of products. On the other hand, winter sports stores may just want to make their steep discounts the center of attention.

5. Honor Veterans and Their Families

Memorial Day is a day of remembrance for fallen soldiers. This is why it’s essential to stay positive but not too celebratory about the unofficial start of summer.

Richard Levick, chairman and CEO of LEVICK, says:

Remembrance and relaxation both play important roles in our lives, but they should occupy separate spheres…When brands forget to respect that separation, and when executives who don’t understand the true meaning of Memorial Day are in control of a company’s marketing and social media outreach, insensitive—even offensive—things happen.

In particular, he recommends against potentially exploitative imagery of military funeral services, families in mourning, and so forth. Many companies juxtapose these images with messages of “FLASH SALE!” and “Happy Memorial Day!” which can ruffle feathers.

Not all veterans and families want to hear “thank you for your service” on Memorial Day and want the day focused on those who have been lost. That said, honoring veterans, active duty military, and their families can be done tastefully and well, without drawing focus away from the meaning of the day—chances are many of them have lost someone in the line of duty.

There are many ways you can honor veterans and active service people. One option is to give them early or preferential access to your sale. Another is to offer them discounts or special offers. You could even give away small items as gifts.

But a particularly special thing you can do to show your understanding and gratitude? Donate a portion of your proceeds from your Memorial Day sale to a charity supporting the families of fallen soldiers, like the Tragedy Assistance Program for Survivors (TAPS) or the Children of Fallen Patriots Foundation. Mention this plan in your Memorial Day marketing materials, but keep the focus on those who need the help, not how awesome you are for doing this.

6. Contact Websites Running Sales Roundups to Get Your Store Featured

The Memorial Day weekend is a fantastic source of content for new publications, many of which include roundups of all the best sales. It’s not an accident when brands get included in these roundups. More often than not, it’s the result of a lot of outreach work.

get your store featured in memorial day sales roundups

Start by finding publications in your industry that have produced Memorial Day roundups in the past. If they did a roundup last year, there’s a good chance it will be on the editorial calendar this year.

You can also target bigger, broader publications that aren’t necessarily tied to one industry. Here are just a few websites that have created Memorial Day sales roundups in the past:

Next, draft an email to send to each of these publications. Personalize it a bit, but you can keep the bulk of it the same. Highlight what you have on sale over the Memorial Day weekend, the kind of discounts customers should expect, and why your deal is better than your competitors.

7. Set Up a Virtual Event With a Live Sale Segment

You don’t have to have a brick-and-mortar store to run a live sales event.

There are even some pretty significant benefits stores can realize by running virtual sales events. They are way more accessible for one. You’ll be able to accommodate significantly more attendees (which means more customers), and they’ll be able to tune in from anywhere in the world, too.

It will also be much cheaper to run a virtual sales event than an in-person one. Webinar software and a high-quality camera will cost a few hundred bucks at the most. That’s pretty much all you need. It will be much cheaper for customers who don’t have to travel to your store, too, meaning more money to spend on the sale.

You’ll want to make your sales event as fun and inclusive as possible. To this end, make sure to run games and activities and not just showcase your products. You could even run giveaways and competitions to give away some of your newest products for free.

Make sure that you devote a good chunk of time to your sales products, though. The whole point of running this kind of event is to increase sales, so it makes sense to spend at least the latter half of the event modeling your new clothing range or showing your new products in action.

After the pandemic, you may be facing more competition than usual when it comes to online events. It will pay to get the word out early and promote your virtual event as much as possible. Social media, email campaigns, and your website are all great places to start.

Memorial Day Sales FAQ

Which channels should I run paid ads on?

Facebook, Instagram, and Google are three of the best platforms to run paid ad campaigns on this Memorial Day weekend.

How long should my flash sale last?

It can last as little as a few hours, but don’t let it go on for longer than the weekend.

How can I avoid looking like I’m cashing in on an important holiday?

You can incorporate both summer and solemnity. Don’t overdo it on the joy, but keep the message positive. Consider donating proceeds to relevant organizations.

What should I include in my outreach email to publications?

Keep your email as short as possible, but try to stand out. State how much consumers can save, what products are on sale, and any other essential details.

Which platform should I choose for my virtual event?

Facebook or Zoom are two popular platforms that are relatively inexpensive (if not free) and stable to run events on.

Conclusion: How to Increase Memorial Day Sales

Memorial Day weekend is one of the biggest shopping events on the calendar. You can’t just launch a sale and expect customers to turn up, however, especially if you’re an e-commerce store.

Running ads, making the most of social media, and reaching out to online publications are vital to get the word out. Making sure your sale strikes the right tone with customers will be key to increasing conversions.

But don’t stop there. The best e-commerce stores use the Memorial Day weekend as a jumping-off point and do everything they can to keep holiday sales high after the Memorial Day spike.

Which tactics are you going to use this Memorial Day?

Together Software (YC S19) is hiring software engineers

Article URL: https://jobs.lever.co/together/86c724e1-9337-487b-a79f-541e82a35d51

Comments URL: https://news.ycombinator.com/item?id=27317820

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Alloy Automation (YC W20) Is Hiring a Customer Success Manager

Article URL: https://www.ycombinator.com/companies/alloy-automation/jobs/v3wXAAb-customer-success-manager

Comments URL: https://news.ycombinator.com/item?id=27320440

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This Is Indy: Ventimiglia waving flag at 500 start

“This Is Us” actor Milo Ventimiglia will serve as the honorary starter for Sunday’s Indianapolis 500.

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Miami hit with MLS-record fine, other penalties

MLS has handed Inter Miami a $2 million fine — the stiffest in MLS history — over violations of the league’s salary budget and roster regulations.

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