How to Get Business Credit With EIN Only

Business credit is credit in the name of a business. Unlike consumer credit, you need to actively work to intentionally start establishing business credit. A small business owner can get business credit with EIN only, but it doesn’t happen on its own. You have to establish and build it intentionally. How do you do that?

What is an EIN?

It helps to understand what an EIN is before you begin establishing business credit. EIN stands for Employer Identification Number. The IRS issues it to businesses. The process to apply for an EIN is fast and easy. Even better, it is free.

Is an Employer Identification Number Necessary to Apply for a Business Credit Card?

The key to getting business credit with EIN only is to use the business’s Employer Identification Number instead of the small business owner’s Social Security Number to apply for a business credit card or vendor credit.

If your business is set up correctly, the business credit card will not be tied to your consumer credit.

Card issuers and other credit providers may ask for your Social Security Number for identity purposes. This is in an effort to prevent fraud. If your small business is set up properly, it will not be necessary for determining creditworthiness when you apply for vendor credit or a business credit card.

To Build Business Credit With EIN Only, Start with a Fundable Foundation

You cannot get business credit with EIN only if your business is not set up to be separate from you as the owner. To do this, you need to build a FundableFoundation. It involves a number of details that most small business owners do not realize matter when it comes to whether or not their company can get funding.

When you apply to get a business credit card, you may never consider that whether you choose to operate as a sole proprietor or a limited liability company, personal finance issues, business licenses, and even the name of your small business can cause you to be denied. But it can.

Your Business Name

For all business owners, choosing a name for your business is one of the first things you do. It’s one of the fun parts. Yet, small businesses can help or harm themselves with how they name their businesses.

It’s best to pick a name and stick to it before you choose your EIN. Making changes after the fact creates more opportunity for mistakes. If you create strong business credit with EIN only, and then change your business name, creditors may have issues if you forget to change the name everywhere. Your EIN may show up connected to one name, but the business name is listed differently somewhere else.

How can the name you choose harm your business? Because adding the name of a risky industry can harm your future chances of getting financing. When you apply for a business loan, you don’t want your search for funding to end before it even gets started.

There is nothing deceptive about naming a business Amy’s rather than Amy’s Gun Range. If a lender has any reason to think the industry is risky, they may throw out the application before they even look at creditworthiness.

Contact Information

Ensure your business has its own phone number and address. You can get a business phone number that will work over the internet instead of phone lines. In addition, the phone number will forward to any phone.

If you want, you can use your personal cell phone or landline. Just not your personal phone number. Set it up so that whenever someone calls your business number it will ring your personal phone.

A business address has to be a physical address where you can get mail. You can use a virtual office for a business address. 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.

EIN

Now it’s time to apply for an EIN for your business. Go to the IRS website and apply using the name of your business and contact information. Just your EIN with the name of your business and contact information is not enough for a fully Fundable Foundation or to build business credit with EIN only however.

Business Entities: Make the Right Choice

You have to choose the right business entity. Incorporating your business as an LLC, S-corp, or corporation is necessary. It lends credence to your business as one that is legitimate. It also offers some protection from liability.

Even if you are the sole proprietor, operating as a sole proprietorship does not offer the separation of business from owner that you need to build business credit.

Card issuers see sole proprietors and the business they own as one and the same when it comes to making credit decisions.

That means, for sole proprietors, consumer credit is the main determination factor. If sole proprietors have bad credit themselves and apply for business credit with their Social Security Number, they will likely be denied financing. The same is not true when it comes to corporations.

Is One Corporate Option Better Than the Other?

Which option you choose does not matter as much for Fundability, or even card issuers, 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.

They can help you decide between a limited liability company or another type of corporate business entity for liability and tax filing purposes.

Incorporate as soon as possible. Not only is it necessary for Fundability and for building business credit, but so is time in business.

The longer you have been in business the more Fundable you appear to be. That starts on the date of incorporation, regardless of when you actually started doing business.

A Separate Business Bank Account is Essential to Business Credit With EIN Only

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 filing purposes. The internal revenue service requires you to report them separately anyway. This just makes it easier.

Even more important, is the fact that this is actually a requirement of many credit issuers. They often want to see a certain number of deposits or minimum average balance in a business bank account before they will approve you.

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 cannot get a merchant account without a business account at a bank. That means, you cannot take credit card payments. Studies show consumers tend to spend more when they can pay by credit card.

Licenses

For a business to be legitimate it has to have all of the necessary licenses it needs to run. Do the research you need to do to ensure you have all of the licenses necessary to legitimately run your business.

Business Website: Does it Affect Getting Business Credit With EIN Only?

What does a business website have to do with whether or not you can get a business credit card, or any business credit with EIN only? Does a website really matter to your business credit profile? Do lenders that offer loans backed by the Small Business Administration really care about this? The answer is somewhat complicated.

These days, you do not exist if you do not have a website. However, having a poorly put together website can be even worse. This is the first impression you make on many. If it appears to be unprofessional, both customers and lenders will see your business in a bad light.

Your business credit profile may not mention your business website. Companies that issue credit cards are not likely to notice if you have a website or not. However, traditional lenders such as banks may research your business online.

If they do not find a professional website, it won’t help you. It might not ruin your chances completely if everything else is in order. However, if they already have doubt, this could push them over the line to denial.

Spend the time and money necessary to ensure your website is professionally designed and works well. Pay for hosting too. Don’t use a free hosting service. Also, 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.

It would be tragic to put all the work in to build business credit with EIN only, and then be denied because your website appears unprofessional, or because you do not have one at all.

Keep and Eye on Your Personal Credit Report

When you are working to establish business credit with EIN only, the ultimate idea is to separate business credit from personal credit. Still, that doesn’t mean consumer credit doesn’t matter when it comes to business funding. Even if you don’t use your Social Security Number on a business credit card application and use only an EIN.

This is because some of the business credit reporting agencies use consumer credit in their business credit calculation. For example, Experian uses a blended model when they calculate your business credit score. FICO SBSS also uses consumer scores to calculate business credit scores.

What Drives Personal Credit Score

Unlike business credit, your personal score is driven by factors that go beyond your payment history. For good credit scores on the consumer credit side, you will need to keep your credit utilization low.

You also will need a mix of consumer credit types. That means credit cards would complement a personal loan, auto loan, or mortgage.

What Types of Lenders Look At Personal Credit

Traditional lenders take personal credit into consideration in addition to business credit anyway. So, even if they do check your Experian business credit report or your report with FICO SBSS, your consumer credit will still make a difference.

Basically, for good consumer credit, you need to show a few ways how you handle credit responsibly.

Go to the Dun & Bradstreet Website and Get a DUNS Number for Your Business

You will need a DUNS number. This is the number Dun & Bradstreet uses to identify your business in their system. A DUNS number plus three reported payment experiences will equal a PAYDEX score.

You cannot have business credit with EIN only without establishing a credit profile with Dun & Bradstreet.The main score they issue is called the PAYDEX. Once you have a PAYDEX score, the other business credit bureaus will create a profile for you if they haven’t already.

Dun & Bradstreet is the largest and most commonly used business credit bureau, so having a credit score with them is important.

Monitoring is Important to Track Your Business Credit With EIN Only

Monitor your business credit reports with all three of the major bureaus to ensure they exist and remain complete and accurate.

This includes your Dun & Bradstreet report with your PAYDEX score, as well as your Equifax and Experian business credit report.

Credit Suite offers a business credit monitoring package that includes all three for a fraction of the price it would be if you monitored reports with each credit bureau individually.

After a Fundable Foundation, What’s The Next Step to Build Business Credit With EIN Only

After you have the foundation in place, you have to get accounts reporting on-time payments to your business credit reports. That’s how you establish business credit and start building a business credit history.

The only way to build business credit once you get a business credit profile is to get business business credit accounts, with EIN only, that will report positive payment history. That’s easier said than done. Plenty report missed payment, but far fewer actually report payments made on time.

If you are just starting out trying to build business credit with EIN only, the first accounts you get are typically net accounts with vendors. You’ll have to find vendors that will extend credit without a credit check, since you don’t want your personal credit in the mix and you do not yet have a score for your business. And of course, they have to report. Finding these vendors is easier said than done.

How To Find Accounts That Report

This is where Credit Suite comes in. We keep track of the vendors and corporate cards out there, and know which will report to the business credit agencies. We also keep track of how to apply to these vendor and corporate credit cards, how to make sure you qualify, and if card issuers are looking for personal guarantees.

When you apply for business credit cards for your business purchases, credit card companies will often check your personal credit report. However, some of them will not look at credit at all. That means you can get them without a personal credit check and before you have any business credit. Then, if they report, your business score will start to grow.

Credit Suite’s Vendor Database Can Help You Establish Business Credit with EIN Only

Credit Suite divides accounts that report into tiers, with Tier 1 vendors being what are often called starter vendors. These are vendors you can get before you have a business score, that will report to your business credit report. Uline and Grainger are just two examples of these.

Both of these vendors will extend business credit based on factors other than credit score. Then, they will report on-time payments. You can use the credit for the business purchases you need to make in everyday business, and as payments are reported your business credit score will grow.

Help Your Business Credit File Keep Getting Stronger

As it grows, you’ll be eligible for more and more accounts. We have these divided into Tier 2 and Tier 3. Our list is useful because most vendors do not advertise whether or not they report possible payment history.

Our thumb is on the pulse of the industry, and we keep an eye on who is reporting and who isn’t. You can choose those that will allow you to make business purchases that you actually need, while you build your business credit score.

Without this knowledge, a business owner would just have to apply for accounts at random and hope they report. This could take years and you still may not ever even establish business credit.

Where Do Business Credit Cards Fit In?

In general, vendor accounts are issued with Net terms. Meaning, if you have a Net 30 account with Uline, you have 30 days to pay the balance in full. In contrast, business credit cards are typically revolving accounts.

However, you will likely qualify for some before you qualify for others. Some retailers will offer a credit card only for use with their specific business.

So, you may only be able to use your Office Depot credit card at Office Depot. This is different from a vendor account because it is revolving, not net terms.

Most of the time you will need to already have a few vendor accounts reporting and have a decent business credit score before you qualify for store credit cards.

However, credit card companies offer business credit cards that are not limited to where you can use them. Yet, they will want to see strong, established business credit.

What Makes Business Credit Cards Different From Personal Credit Cards?

This is confusing for a lot of business owners. They can apply to get a business credit card easily enough. However, if the business is not set up with a Fundable Foundation, it’s really just a personal credit card. Without the separation Fundability offers, credit card companies will not recognize that you and your business are actually separate legal entities.

An actual business credit card is going to have a lot of additional benefits for your business. First, the limits will likely be much higher than any credit card you can get on personal credit.

Since business expenses are much higher than personal expenses, this is important. Also, it will not report on your personal credit. Using consumer credit to fund a business can be tragically detrimental to your consumer credit score.

Using a Business Card for Business Expenses is Best

This is largely because of these higher expenses. Personal credit is affected by your debt-to-credit ratio. If you consistently carry balances at or near your credit limits on your personal accounts, your credit score will be lower even if you make payments consistently. Using consumer credit cards to fund a business is going to make this scenario likely.

Using business credit cards that report to business credit agencies for business expenses takes the pressure of business expenses off of your consumer credit report. Once you establish business credit, you will be able to work on growing the credit score for your business so you can use business credit cards for business purchases.

Even better, the credit bureaus for businesses function much differently from consumer credit bureaus in that it is really only payment credit history that affects your score. The debt-to-credit ratio is not an issue for small business owners when it comes to business credit.

Using a credit card can also help protect your business, as they may limit exposure with online purchases. In addition, most have fraud protocols that can help protect you from having to pay for fraudulent charges. In contrast, using a debit card leaves very few options for recovery.

How Does Good Business Credit With EIN Only Help You Get Funding

It’s pretty obvious to see how a strong business credit score can help you get a business credit card and vendor accounts. It’s not all about business credit cards though.

Traditional lenders tend to look at consumer credit regardless. The question then becomes, can business credit be useful at all when it comes to getting SBA loans, lines of credit, and other types of funding from a bank?

The answer is yes! While they will not discount personal credit completely when making lending decisions related to small businesses, they may take business credit into account also.

As a result, using business credit with EIN only to build a strong business credit score can help a small business counteract not so great personal credit. In addition, it can help you get better terms and rates on loans and business lines of credit. It can even help when it comes to accessing loans backed by the Small Business Administration.

Even better, good business credit with EIN only can make a difference in the extent of personal guarantee you are required to give. In fact, in some cases it may eliminate the need for a personal guarantee at all.

It’s important to note that a personal guarantee is not necessarily a bad thing. There is a place for it. However, it does mean that you are personally responsible for repaying the loan if the business defaults. As a result, it is best to limit debt that requires a personal guarantee as much as possible.

This is why establishing credit for your business is so essential. There is much more to it than qualifying for corporate cards or a corporate gas card. It is necessary for effective and efficient management of business finances over all.

Business Credit Portfolio

Having a well rounded mix of business credit with EIN only will help you build a strong business credit portfolio. This is an important tool for managing business financing. It is the combination of vendor credit, corporate gas cards, any small business credit cards, lines of credit, loans, and all other business financing. It includes financing both with and without a personal guarantee.

When you start building business credit with EIN only, aim to build a well rounded business credit portfolio. Then, you will always have the funding you need, when you need it. One corporate credit card will only go so far, but a variety of credit cards and other business funding will ensure you can manage cash flow, regular expenses, and emergencies when they pop up.

Using Business Credit to Build a Business Credit Portfolio and Cash Pool

Using business credit to build a business credit portfolio and cash pool is key to cash flow management. There are 3 parts to this:

Cash on hand
Amount available to spend on vendor credit accounts
Amount available to spend on business credit cards
And business lines of credit or loans that you can pull funds from if needed

When you have a cash pool that includes business credit, you have options and flexibility. You can run your day-to-day business operations with cash.

Then, if you need more for something out of the ordinary, you can pull from your other funding options that you already have in place. Consider these examples.

Vendor Accounts

For example, if you are a contractor and land a large contract, but do not have the materials on hand available to complete it, you can use vendor accounts with suppliers. Then, when the contract is complete and you are paid, you can pay your supplier.

Corporate Credit Cards and Corporate Gas Cards

Another example would be if you wanted to take advantage of bulk sale pricing from a wholesaler. You may not have the cash on hand to spare for ordering extra at the lower prices. However, you can use a corporate credit card to make the purchase, and repay as the items sell.

One of the easiest business credit card types to get is a corporate gas card. This type of credit card is useful in a number of ways. Even if you do not run a fleet, and even though corporate gas cards rarely limit purchases to fuel and maintenance, this type of business card can help you with these types of expenses.

In turn, you can budget for them better. Note here, that even though it is one of the easiest business credit card types to get, you don’t need too many. Just get what you can use for your business.

Prepaid Business Cards

A prepaid business card can help if it reports. Otherwise, there is really no point. A prepaid business card that does not report is just taking an unnecessary extra step or two that will only slow you down. Focus on any business card that will report. That’s what will get you further along in the journey.

Whether you use vendor accounts, corporate credit cards, credit lines, or some other business card or loan will depend on the circumstance.

However, using a business card or vendor account will ensure you only have to take the time necessary to apply for a business loan when you really have to.

Having a business card available to take care of things as needed offers the much needed convenience and flexibility to manage your business effectively and efficiently.

There Is More to Business Credit With EIN Only Than Getting a Business Credit Card

Truly, business credit is a journey, not a destination. At Credit Suite, we aim to help small businesses build a strong business credit profile in the most effective, efficient way possible.

That means starting with a Fundable Foundation. We meet you where you are in that process, and walk you step-by-step through the end, starting wherever you are right now.

Then, we help you find the right accounts for your business that will report to the business credit bureaus. That includes vendor accounts and any business credit card that will report positive payment history.

The goal is not only to build business credit with vendor accounts and a business credit card or two. The goal is to ensure that when you need other funding, you are set up in the best way possible to qualify.

Then, your business can access the funding it needs, when it needs it. Whether through a business credit card, a vendor account, a loan, a line of credit, or other other option. It will not matter, because your business will be Fundable.

The post How to Get Business Credit With EIN Only appeared first on Credit Suite.

The Fundability™ Roadmap: Your Business Credit Guide

Business credit is a journey, not a destination. The destination is Fundability, and business credit is just one of many tools you need along the way. If you’re interested, our business credit guide can help any user ensure their toolbox is well stocked.

Making this trip isn’t easy, but some routes are easier than others. We have the roadmap to starting Fundability, but you have to trust the process.

Business Credit Guide: What is Fundability?

It might help if we first define Fundability. Fundability is the ability of any business to get the funding it needs. Obviously any business will be interested in funding for the purpose of improving and to grow. That is the way to success, and being Fundable means you have access to the money to do it.

Business Credit Guide: How Businesses Can Get Started

The first step, before you even open the roadmap, is also one of the most important steps in the journey. Think of it like choosing the most efficient and comfortable vehicle for your trip. It doesn’t take an expert to figure out some types of transportation are better than others.

Just like that, a Fundable Foundation gives you the best start not just with Fundability, but with business credit as well. It will help you avoid issues that can slow down your ability to get approved for credit.

Businesses with a Fundable

Separate business contact information
EIN
They are incorporated
Business bank account
Licenses
Website and email separate from the founder

This is the easy part, but it is vitally important.

To be successful on the road to Fundability, there is more than this to consider. The goal is to have lenders see your business and you as the owner as low risk. Here are some things to think about.

Your Business Name Makes a Difference

When developing your business name, it’s best to leave any indication of a risky industry out of it. This may not help you get financing, but it will minimize the likelihood of being turned down immediately due to being linked to a risky industry before you get a chance.

It’s also important for your company name to be consistent and in alignment everywhere. Even inconsistencies in small details, like using the word “and” sometimes and an ampersand at others, can indicate higher risk. Lenders are not interested in why there is an inconsistency. They will just deny it.

Get a D-U-N-S Number from Dun & Bradstreet

All entrepreneurs need a D-U-N-S number from Dun & Bradstreet for their organization. Set your business up for success by getting it as soon as you can. It is how Dun & Bradstreet will identify your business in their network and how your PAYDEX is linked to your business.

Business Credit Guide: Start The Journey

Once you have the foundation, or the right vehicle to make the journey, it’s time to get on the road. Making sure you are prepared is the only way to reach where you are going.

The foundation is definitely something you can control. After that, it’s time to start establishing and building strong business credit. This is only part of what makes a business Fundable, but it is a big part. It’s important for most any type of company financing if you want to run a profitable business.

Business Credit Guide: Use Vendor Credit to Fuel Your Way to Becoming a Profitable Business

Now, it’s time to fill the car up with gas. That gas is business credit accounts that report payments to your business credit reports. It all starts with vendors. Not just any vendors however. Just like any journey, you have to start at the beginning.

Starter vendors are those that will give net terms on invoices. They are not as interested in credit scores, so you can get approved with less focus on that and more on other factors. Not only that, but they will also report the positive payment experience to the business credit reporting agencies.

How Do You Get Starter Vendors to Grow Business Credit?

At Credit Suite we discuss vendors in terms of tiers. Starter vendors are those in Tier 1. Since most vendors do not classify themselves as such, how do you get them? A simple search will give you a few options. However, how do you know if those vendors work with your company marketing and growth strategies? Furthermore, the information changes without warning.

It’s Worth It to Get Help from An Expert

The answer to all of these questions is Credit Suite. Our product includes select vendors that we know report, and what they require for approval.

We also track changes with recommended vendors. So, if they change requirements or reporting standards in ways that make them no longer align with the values we have for our clients, we can adjust.

Maybe they now rely more heavily on personal finance data and need to be moved from Tier 1 to another tier. Maybe they decided to adjust their minimum business credit requirement. Perhaps they no longer report payments? All of these things will stunt business credit growth.

Credit Suite will check in with your business at each level in the process. We will discuss the risk you present to lenders, and determine what needs to be done in order to reduce that risk.

Credit Suite Can Save You Time and Money

Our processes allow us to keep our vendor database updated. Our industry experts have the skills necessary to help clients find the best vendor options for them. Whatever stage of the journey our clients are in when they come to us, we can help them find the vendors that can best help them be successful, with confidence.

Working with Credit Suite to find starter vendors and to figure out which vendors to apply for when is kind of like using help to find a gas station that’s open in the middle of the night. It lets you avoid paying more money than you have to for gasoline.

Our resources get you where you are going faster. Team recommended strategies save you both time and money, and one of the best benefits is your business can grow and transform along the way. Our team uses best practices to add value.

Business Credit Guide: Refill Your Fuel Tanks and Get Financing to Grow

Starter vendors are just the first fill-up a company makes to get on the road, but it will only get you so far before your check engine light comes on. As you move further into the process, you’ll need to get credit with more vendors and apply for business credit cards to continue to operate. You can’t just sit back and read a good book, you have to keep moving.

If you handle your approved credit responsibly, you’ll soon have enough accounts reporting to more easily get business credit cards. Even better, you should be able to get higher limits, better rates, and less if any personal guarantee. This is the best way to grow and increase earnings. There are no shortcuts.

Other Factors that Support Fundability

Of course there are parts of the car you cannot see. There are curves and bumps in the road you may not be able to predict. As a result, things happen that you cannot control, making the trip quite uncomfortable at times. However, you can do your best to be prepared.

Here are a few things that can affect Fundability, and thus your ability to get money for your company easily, that you have less control over.

Other Business Data Agencies

In addition to the business credit reporting agencies that directly calculate and issue credit reports, there are other business data agencies that affect those reports indirectly. This can throw a kink in your business journey if you aren’t careful.

Two clear examples of this are LexisNexis and The Small Business Finance Exchange. These two agencies gather data on businesses from a variety of sources, including public records. This means they could even have access to data relating to automobile accidents and liens. They share this information with their partners, some of which are business credit bureaus.

Fight Back With Positive Data

While you may not be able to access or change the data these agencies have on your business, you can be making sure you always use strategies to guarantee any new information they receive is positive.

Enough positive data can help counteract any negative data from the past and reduce those risks over time. Consequently, your personal risk tolerance with underwriters will be easier to overcome. This is how you start to see your company success grow.

Financial Statements

Lenders are going to ask for both personal and business financials. They want to see income and profit. They need to know you have the money to pay back any financing you get. The numbers are what they are, and underwriters will verify them. Don’t try to create a false idea about money, whether personal or business. It is not worth the risk.

Bureaus

There are other agencies that hold data related to your personal money as well. Take ChexSystems for example . This agency keeps up with bad check activity. That makes a difference when it comes to your bank score, your ability to open a checking account, and definitely Fundability.

Personal Credit History

Personal credit can affect business credit. Not only do many lenders consider owner credit background alongside business credit, but some business credit reporting agencies use your personal credit score in their business credit score calculation.

Business Credit Guide: The Road Goes on Forever

You never stop building business credit. But, after a point you will want to keep your progress at a steady pace. Just don’t stop. That’s where many businesses go wrong. Business credit that isn’t growing is doing nothing. They do not understand that, the only option if you want to stay successful, is to continue to use it. Then, be sure to let it keep growing.

Business Credit Guide: Credit Suite Can Be One of Your Best Resources

Interested in business credit and want to explore more about how Credit Suite can help you? We love to share how to utilize our products to launch your own business credit journey. We want to help businesses understand what we do and how we can help them.

Check out our free business finance assessment now. We will discuss and explore where your business is currently, so we can best learn how to help you. We’ll work to understand what you need, and help you determine what your next steps should be.

The post The Fundability™ Roadmap: Your Business Credit Guide appeared first on Credit Suite.

How I Hacked Credit for Business

Building credit for business purposes can seem like an unbreakable barrier. You need to get accounts reporting on-time payments to at least one credit reporting agency to build a strong business credit score. Yet, credit providers want to see a strong business credit score before they will approve you for a credit account.

If you know the secret formula you can hack the cycle, skip over a ton of wasted time and energy, and jump straight to the business of building credit for your business.

Here are 5 ways I hacked my way to building business credit.

Hack #1: I Set Up a Fundable Foundation

A business credit report and a personal credit report are different in a number of ways. One of the biggest differences is that your personal credit builds passively. You can bet with your first credit account, that account is reporting your payment history to your credit report. It’s just there, and it builds passively.

Reporting Credit for Business Is Different

Credit for business is completely different. Just having a business and having debt that you make payments on doesn’t mean you have a business credit report. Where are those payments reported? Well, if they are reported at all, it’s likely on your consumer credit.

Before a credit provider will report to your business credit report, you have to set up your company properly.

Building a Fundable Foundation

This began with making sure the business had its own contact information, separate from my personal information. Next, I got an EIN for free from the IRS. The next step was to incorporate. Operating as a sole proprietor or partnership doesn’t offer the separation you need for Fundability.

After that, I opened a separate bank account for my business and got a D-U-N-S from Dun & Bradstreet. Then I hired a professional to ensure my website was awesome, and made sure my business email had the same URL as the website.

Hack #2: I Took Charge of My Personal Credit Score to Help Build My Business Credit Score

I got my free copy of my consumer credit reports from the business credit reporting agencies. I needed to be sure my consumer credit scores weren’t being dragged down by poor payment history or any other negative entries.

Also, remember that there are a lot of things that can affect your personal credit score. Business credit scores, once established, are pretty much only affected by payment history. The more on-time payments reported to the business credit reporting agencies, the better your score gets.

In contrast, personal credit is affected by:

Hard inquiries
How much credit you are using versus how much you have available to use
Average age of credit accounts
Even the account mix, or how many different types of accounts you have

This is all in addition to payment history. Why is personal credit important if credit for business is separate? First, most traditional lenders will check both scores. But also, at least two business credit bureaus, FICO SBSS and Experian, use personal credit in their formula for calculating business credit score.

Both Types of Credit Score Are Important

As a result, it is just as important to your business credit file as it is to your consumer credit file to keep your personal score strong. First and foremost, make those payments consistently on time. But also, watch how much available credit you are using at one time. Don’t keep balances too close to limits.

Then, try to have a good mix. All credit cards or all auto loans can have a negative impact. A mortgage, an auto loan, a couple of credit cards and maybe a HELOC could be a good mix.

And remember, every time you open a new account, you get a hard inquiry and the average age of accounts goes down. That doesn’t mean never opening anything new, but definitely be mindful of the impact.

Hack #3: I Checked My Business Credit Reports

First I had to be sure I even had one. Then, I knew that even without much of a payment history, my business credit reports could potentially show a low PAYDEX score or Financial Stress score. I wanted to be sure my Dun & Bradstreet credit reports were correct and complete.

Also, I wanted to see if my Equifax business credit scores were right, and my Experian business credit score was correctly reflecting my company’s credit history. I figured I could deal with the other credit reporting agencies later. First, I needed to see what my credit history looked like at that moment.

Monitoring Business Credit

Business credit reporting is a different animal altogether. You do not get free business credit reports from a business credit reporting agency. You can pay individual credit bureaus, but it can be pricey. Credit suite offers a monitoring package for a fraction of what you would pay with an individual business credit reporting agency.

It allows you to keep up with your business credit score from the top three business credit bureaus. Those are Dun & Bradstreet, Experian, and Equifax. You should be able to see your PAYDEX from Dun & Bradstreet, and any other score these three offer, such as your business credit risk score and your business failure score.

What To Look For

At the first look, scan for anything that could be blocking you. Any inconsistent or inaccurate information can cause a problem. Then, note how many accounts you have reporting so you know where you stand.

It’s important to note there are other business credit bureaus, but the only other one that is used with any regularity is FICO SBSS.

Other Important Agencies

There are other agencies that collect information that can affect your credit for business. For example, the Small Business Finance Exchange and LexisNexis both have information relating to public records and even insurance. Though they do not issue credit reports directly, business credit bureaus have access to this information. If it’s out there, they know, and it can make a difference in funding approval.

You can’t really do anything about the information they have. But start now ensuring they get only positive data. That will help counteract any old negative information.

Hack #4: I Got Accounts Which I Knew Would Report to One or More Credit Bureau for Business

Getting vendor accounts and business credit cards that report to one or more business credit bureaus is a proven way to build business credit. Still, it is easier said than done. Most vendors and credit cards do not advertise that they report to a business credit bureau.

How to Find Accounts that Report

Credit Suite keeps a database of fully vetted vendors that they know report. This includes which credit reporting agency or agencies they report to. Better yet, they divide them by which ones you can qualify to get at each stage of building credit for business.

For example, the first set of vendors, called Tier 1, or starter vendors, will not do a credit check. They base approval on other factors, such as time in business and revenue. That means they are perfect for businesses that are just starting the process.

Of course you can do it on your own, but it can take forever and may not even work. Applying to accounts randomly and hoping you meet approval requirements, then if you do meet them hoping they report on-time payments, is not effective or efficient. You could apply for accounts for years and still not have a strong business credit report.

Hack #5: I Continued to Check My Reports at the Major Business Credit Bureaus

I knew I didn’t have the time to look at my Equifax, Experian, and Dun & Bradstreet business credit files all day, every day. I needed a system to know when it mattered to check my credit for business accounts.

This is yet another way the Credit Suite can be a huge asset to a small business. Their monitoring service allows you to check scores, and they help you figure out what is blocking you if you run into problems. For example, sometimes public records can cause issues.

Bonus Hack: I Diversified and Helped My Commercial Credit Bureau Scores by Getting a Business Loan

Once my small business financial statements were strong, and I had strong credit for business, I could prove my business’s financial stability. As a result, I was able to get more money than I know other businesses like mine often do.

That’s the thing about business credit. It’s not the only piece of the puzzle, but it is a big piece of the business funding puzzle. If all of the other factors a lender considers is borderline, a strong business score can put a small business over the line into approval range. As a result, you are able to access more credit for business purposes than you would be otherwise.

If everything else is in range, a strong small business credit profile can help get better terms and interest rates. This is why as a business owner, it’s important to take all credit information into account.

Not only does the success of small businesses depend on the personal credit reports of the business owner, but the business needs to have its own credit information as well.

Hack Credit for Business With Our Help

Credit Suite is a one stop shop for hacking business credit. When we start with a new small business owner looking to build business credit, we first figure out where they are right now. That means looking at your company’s credit report and your personal report.

If you need to build a Fundable Foundation, we walk you step by step through that process. If you are already past that, we jump right in to helping you find accounts that report. That may mean starting with vendors, or you may be ready for a business credit card.

As you work through the process, we help you keep up with your business credit information so you can see your progress. As your PAYDEX score and other business scores grow, you’ll notice you will typically not have any problem getting funding.

What is the secret to hacking business credit? I made it easy for you. It’s a Credit Suite! Find out more now.

The post How I Hacked Credit for Business appeared first on Credit Suite.

Get the Perfect Fast Business Loan for Your Side Hustle

If you are thinking about making the leap from side hustle to small business, you are probably wondering how to fund it. Even a side hustle has financing options. Can you get a fast business loan? Is a business loan even the best option for your business at this point?

Funding a Side Hustle Is Hard

A side hustle, by definition, is a business you run on the “side”. That means, you keep your day job. This kind of activity is typically bootstrapped. Often, the funding is with money from your day job. What if it isn’t enough though?

There are other options for funding a side hustle. The options may allow you to grow and expand your business without using personal funds. That is the dream of a lot of small business owners. As a result, many jump on the fast business loan bandwagon.

While there are ways to make that dream come true, fast business loans are not often the way to make it happen. First, they are more likely to be personal loans than fast business loans.

That means, the business owner is solely responsible for repayment and for default. Business loans can work much differently if the business is set up properly. So, what does it take to get the funding you need for your side hustle, and can you really leave the idea of quick business loans behind? Should you?

Challenges to Funding a Side Hustle

There are plenty of challenges when it comes to business funding for a side hustle. One huge challenge is a lack of business credit history. As a result, there is no business credit score or a poor business credit score. That pretty much knocks a business out of the running for traditional fast business loans.

Another challenge is usually a side hustle is not yet set up properly to get business funding. Most business loans look for a Fundable Foundation. This includes a number of things, like getting an EIN and incorporating, that most side hustles do not have.

Not being set up properly to get funding leads to reliance on personal credit and financial resources. Sometimes this is necessary, but it’s best to avoid it when possible.

There are Options

There are options for getting around each challenge. Credit Suite can offer resources to help you get the funds you need to grow your side hustle into something more.

We can help you get the funding you need now, and guide you step-by-step through the process of setting up in a way that will help you get funding far into the future. Eventually you’ll qualify not only for fast business loans, but for options such as SBA loans, a merchant cash advance, and even a traditional line of credit.

Fast Business Loan From a Traditional Bank

Traditional business loans are hard to get for a side hustle, but not impossible. Yet, approval will likely lean heavily on personal credit. Fast business loans usually have higher interest rates and less favorable terms anyway. This may be even more so when it comes to a side hustle.

The key is to look for business loan programs from non-traditional lenders. Many of these operate online and you can get pretty fast business loans if you qualify. But remember, quick business loans come with a price. Anything fast business related is going to cost you. In the case of business loans, the cost comes in the form of higher interest rates and more personal liability.

Your Personal Credit Will Play a Large Role

For most small business owners, particularly startup owners, personal credit scores will be a vital part of any lender determining if a business should qualify. If you have good credit, getting a business loan, even a fast business loan, will probably not be an issue.

Still, as a business owner, you do not want to rely on personal funds any more than absolutely necessary. What can you do? The key is to build separate credit for your business. As you do, lenders will be able to use it to help make the approval decision when you apply for a business loan.

Keep in mind, when it comes to most business loans, your business credit score will be used with, not instead of, your personal score, in most cases.

Open Your Side Hustle to All Financing Options, Not Just a Fast Business Loan

The truth is, your goal should not always be fast business loans. Fast business loans are great. However, a better goal is to create a situation in which your business qualifies for any funding it needs, when it needs it.

As a side hustle, you are not likely to qualify for merchant cash advances, typical small business loans, and other fast types of financing.

However, you are in the perfect situation to start building Fundability right now, from the beginning. You’ll save yourself a lot of time and money in the long term. Better yet, done correctly, you could never have to worry about fast business loans again.

Start With a Fundable Foundation

This is a must for business funding of any kind, not just fast business loans. Without this, credit providers and lenders will not recognize the business as a separate entity from you, the owner.

That means a lot of things, but a big one is there is likely to be no separate business credit report without a Fundable Foundation. It includes:

Business contact information
An EIN
Incorporating
A business bank account
A D-U-N-S number
Professional website and email address

Credit Suite Can Help!

We guide you step by step through the process of building a Fundable Foundation. We can help you find vendor accounts that will report. And we can show you how to build business credit in the most efficient way possible.

Funding a side hustle is hard. But there are other options besides personal finances. You may qualify for a fast business loan, but it’s a long shot. If you take in enough credit card payments, a merchant cash advance may work. Most side hustles do not, however.

Credit Suite can help you build Fundability so you can access those options and more. We can help you build a strong business credit portfolio for your small business so you can effectively manage cash flow.

We can help you get funding right now, and help you get set up to qualify for other types of credit in the future, including:

A business line of credit
A quick business loan
Short term business loans
Invoice financing
Equipment financing
and more!

In addition, we can help you find funding that does not require a personal guarantee, and help you determine if and when a personal guarantee may be worth it. In the end, Credit Suite is on a mission to ensure every small business is set to get the funding it needs in the form of small business loans, a line of credit, equipment loans, and whatever else they may need.

Fast Business Loans

Small businesses looking for fast cash may find success getting funding with online lenders. Quick business loans just do not come from traditional banks. Their systems are much different and the application and underwriting process usually takes much longer.

Online lenders however, are often specifically designed for quick business loans. In some cases you can get fast business loan approval and even have funds in as little as a week.

Examples of Online Lenders

There are a lot of lenders out there. Some are great to work with, while others are closer to a scam. Be careful and do your own research. Here are a couple of lenders to get you started if you decide to pursue the fast business loan option.

Fundbox

Fundbox is actually a line of credit rather than a small business loan. Still, it is a great funding option because the requirements for approval are much more manageable that those typical of a regular bank.

What Does Fundbox Offer?

Their process is automated and super-fast. Repayments are automatic. They draft them electronically on a weekly basis. One thing to remember is that you could have a repayment as high as 5 to 7% of the amount you have drawn currently, as the repayment period is comparatively short.

You will have to pay attention and be certain to manage cash flow accordingly so you have enough funds in the account to cover your payment each week.

They want to see at least 3 months in business, $50,000 or more in annual revenue, and a business checking account with a minimum balance of $500.

Upstart

Upstart is an online lender that uses a completely innovative platform for small business loans. The company itself thinks that financial information and FICO on their own may not give the whole picture when it comes to the risk of making a small business loan to a specific borrower.

As a result, they opt instead to use a combination of artificial intelligence (AI) and machine learning to gather alternative data. Then, they use this data to help them make credit decisions.

What Kind of “Alternative Data?”

This alternative data can include such things as mobile phone bills, rent, deposits, withdrawals, and even other information less directly tied to finances. The software they use learns and improves on its own. You can use their online quote tool to play with different amounts and terms to see the various interest rate possibilities.

Note, this is a personal loan. But, if you need funding now and your personal credit is not great, it can be a good option. It’s a start at least.

Retirement Plan Financing

This is an excellent way to get fast business funding for a side hustle. If you have a retirement plan, it may be the best option even. First, it is not a loan. There is no early withdrawal fee or tax penalty.

This Credit Suite program offers a flexible and powerful way to leverage assets that are in a 401(k) plan or IRA.

It really is fast too. In fact, it may take as little as 3 weeks. So while it isn’t a loan, it certainly qualifies as fast business funding. The IRS calls this a Rollover for Business Startups (ROBS).

Tax Repercussions of a ROBs

The IRS considers a ROBS qualified plan to be a separate entity. It has its own set of requirements. Technically, the plan owns the business, not the individual. As a result, some filing exceptions for individuals might not apply to the plan. Still, always check with a tax expert when it comes to tax matters.

How to Qualify

Honestly, it’s not hard to qualify. There is no need to submit financials or have good credit to get approval. In fact, all the lender wants is a copy of your two most recent 401(k) statements. The plan must have a value of more than $35,000 to get approval. You can get up to the amount of your 401(k) that is “rollable.”

It cannot be a plan from a business where you work currently. It has to be from previous employment, and you can’t still be contributing to it.

How Does This Program Work?

It may sound complicated, but Credit Suite business credit experts will help every step of the way. They will help you set up a 401(k) plan in your company. Next, you’ll invest your 401(k) funds in it. Your business then has the cash flow it needs, but no debt. Despite how hard it sounds, your part is fast and easy. We handle the hard stuff.

ROBS vs. a 401K Loan?

First of all,not all plans allow for loans. If your plan does, the IRS will only let you borrow up to 50%, capped at $50,000, before you have to start paying taxes.

Also, with a 401K loan you will pay interest. Of course, you are paying interest to yourself. However, you will be making monthly payments, whereas with the 401K Rollover for Working Capital, there is no payment.

This unique program allows you to tap into your existing retirement account without penalties or taxable distributions. You also avoid loans, banks, or credit checks. There is no debt and no monthly payment.

Credit Line Hybrid

A credit line hybrid is a credit card stacking program that allows for unsecured business funding. It functions much like a line-of-credit. You can draw the cash you need, and repay only what you use.

It allows you to fund your business without putting up collateral, and you only have to use what you need to cover a cash flow gap, purchase supplies, or anything else.

What Are The Qualifications?

You do need good personal credit. Your personal credit score should be at least 68o. In addition, there cannot be any liens, judgments, bankruptcies or late payments on your personal credit report.

If you do not meet all of the requirements, it’s not the end of the story. You can take on a credit partner that meets them. Some business owners work with a friend or relative to fund their business.

It’s really perfect for growing a side hustle, as you can get it without a ton of documents and it’s flexible.

What are the Benefits of a Credit Line Hybrid?

There are many benefits to using a credit line hybrid. First, it is unsecured. There is no need for collateral. Also, the funding is “no-doc.” You do not have to provide any bank statements or financials.

Additionally, often you can get interest rates as low as 0% for the first few months. This allows you to put that savings back into your business.

It is flexible financing that functions much like a revolving credit line. The process is pretty fast. Part of that is due the fact you get qualified experts to walk you through it.

Crowdfunding

What is crowdfunding? It’s actually a pretty common way for small business owners to try to take a side hustle to the next level. You can access tons of investors at once. And, you can test the market at the same time.

How Does It Work?

You market your business on the platform. Anyone who wants can invest in the company. Some platforms accept donations as low as $5 or $10 dollars, though most require more.

With rewards-based crowdfunding, you get some token of thanks for your donation. With equity-based crowdfunding, which almost always requires $500 or more, investors get shares of the company.

Will It Work for You?

It works well for some businesses, but not for every business. In fact, most find that they need to supplement their crowdfunding money with some other form of funding. Since it is debt free cash however, it may be worth considering.

The Dark Side of Crowdfunding

While there are a lot of successful crowdfunding campaigns, the majority are not able to fully fund their business through crowdfunding. According to Startups.com, the average success rate of a campaign is 50%, and 78% of crowdfunding campaigns reach their goal.

That sounds somewhat promising. However, it appears success depends greatly on your market, among other things. Here are a few more statistics from the same study with success broken down by the type of business:

Business and Entrepreneurship: 41.4%
Social Causes: 18.9%
Films and Performing Arts: 12.2%
Real Estate: 6.2%
Music and Recording Arts: 4.5%

None of these hit the 50% success rate. If you choose to go this route, be sure you have a backup plan.

Different Types of Crowdfunding

There are actually two types of crowdfunding. There is rewards based crowdfunding and equity crowdfunding. Many see all crowdfunding as a mix between the two. However, they are actually very different.

In fact, while some platforms allow campaigns to do both, many only allow one or the other. It’s important to determine which one will work best for your business before you decide on a platform.

Benefits and Drawbacks of Each Type

The best one for your business will depend on a number of factors. It helps to understand the benefits, as well as the drawbacks, of each option.

Rewards Based Crowdfunding

Pros
- Debt free
- Do not give up equity in your company
- Relatively easy
Cons
- Typically raises smaller amounts of money
- Risk lawsuit if do not follow through on promises
- Rewards can get expensive

Equity Crowdfunding

Pros

Easier access to investors
Faster way to show investors what you’ve got
Less focus on regulatory compliance and more on getting product or service to the market

Cons

Managing a lot of smaller investors can be harder than managing a few large stakeholders
May need an investor liaison, which can be costly
Reporting and auditing requirements can get tricky with a lot of investors

It’s important to note since the topic here is getting a fast business loan, that this is neither a loan or fast funding. It is a way that you can possibly fund a side hustle and grow it into a full fledged business. But, you do not repay funds to investors and it may or may not be fast. With most platforms, though not all, you do not get the funds until you reach your funding goal. There is no way to tell how long that might take.

Credit Suite Can Help You Get Financing

The truth is, you may not really want a fast business loan right now. There are costs and other factors to consider. One of the other options may work better.

In fact, a fast business loan that offers same business day cash in your account is one of the most expensive types available. Instead of a quick business loan, it’s more useful to have flexible financing options in place to use as needed.

When that is the case, you can have access to funds on the same business day without having to worry about a fast business loan. You can bridge a cash flow gap, take advantage of business day payment discounts, and more.

But it takes time. If you are ready to jump now, you want to be able to fund it fast. Is that possible? Is a fast business loan the best way to do it? If you can get on with an online lender, maybe. The Credit Line Hybrid usually works really well too. Of course, if you have a retirement plan, it’s hard to beat a ROBS.

Find out how we can help you qualify for financing, as well as the financing options we offer, now.

The post Get the Perfect Fast Business Loan for Your Side Hustle appeared first on Credit Suite.

How to Work With a Business Credit Coach

Have you ever heard the term business credit coach? Have you ever wondered what it was all about? Is it worth it? For most, the answer is yes! Honestly, pretty much any business that does not already have strong, established business credit can benefit from business credit coaching.

A Business Credit Coach Works to Help You With Building Business Credit

Many business owners, particularly new business owners, don’t have the best business credit score. In fact, they may even have no business credit score at all. That’s because, unlike consumer credit, business credit does not build passively. You have to be intentional.

Intentionality is Tricky

This part can be tricky. Sadly, there are a lot of details that can block you from approval that many do not understand. Furthermore, the process that helps you build credit for your business in the most effective and efficient way seems tedious to many. Worse yet, it is almost impossible to hack on your own. You could try forever and never get anywhere. This is where a coach can be well worth the cost.

How Does a Business Credit Coaching Program Work?

First, you’ll sit down with a business credit coaching professional. Then, they will examine how your business is set up and talk about your current financial situation. This means your business finances, your consumer credit score, and your cash flow. Also, any accounts your business has, your expenses, debt, and cash on hand may be examined.

Next, you’ll talk about any success you’ve had with the business credit building process. The business credit coach will look at your business credit cards. He or she will want to determine if they are really building business credit for you. In contrast, they may be reporting on your personal credit.

Personal Credit Can Affect Business Credit

Remember, personal credit does affect business credit. A good business credit coach will explain how this works. First, most business lenders will perform a personal credit check. That means if you have bad personal credit you are out of luck. However, it also means your personal credit score could take a hit, because inquiries have a negative impact.

Still, with the right guidance related to business credit, it’s possible to get business owners access to funding without a personal credit check. This is usually in the form of vendor credit, and sometimes business credit cards. By using these types of accounts to build strong business credit, you can reduce the reliance of lenders on your personal credit when determining creditworthiness.

Remember, without good personal credit, you will not be able to get lending that requires a personal guarantee. Your coach can help you understand what a personal guarantee is, and how it relates to personal liability. Then, together you can decide if putting your personal credit on the line is a good idea, particularly if your business is new.

A Good Business Credit Coaching Program Should Start With Building a Fundable Foundation

Truthfully, not every business credit coaching program will call this the same thing, but all good ones will agree it’s the essential start of building business credit. It has to do with how your business is set up. Your coach will examine the details of your business’s foundation and determine if anything is keeping you from credit approval.

Credit Coaches Should Ask These Foundational Questions To Start Business Credit Building

Do you have separate business contact information, or do you use personal information?
Is your business address a PO Box or a physical address?
Is your phone number listed in the 411 directory?
Does your business name or NAICS code indicate that your business may be part of a risky industry?
Is your business name exactly the same everywhere it is listed?
Is your business set up as a corporation and does it have an EIN?
Do you have a separate business bank account?
How does your business website look?

Of course it seems picky, but all of these seemingly little details really do make a big difference. Obviously, cooperation on this point is vital. Often a business fails to get cash credit, basically a loan from a bank, or any other kind of credit, due to issues with one or more of these details.

Legal Compliance

This is another thing your coach will look at. You need to have all necessary licenses to operate. In addition, there may be other legal requirements. For example, if you operate out of a virtual office, your state may require you to have a registered agent.

Getting and keeping your business in compliance with various legal requirements will be a part of the process. As a bonus, you’ll find out it gives clients more confidence in your services.

After the Foundation

Once your business is properly set up to build business credit, it’s time to get accounts reporting. It is not like building good credit as a consumer. You’ll have to intentionally seek out accounts that will extend credit without a credit check and report payment to the business credit reporting agencies. These are often referred to as starter vendors.

Finding Starter Vendors

The truth is, there are very few companies that do both of these things. Most want clients to have already established business credit before they will approve credit, and of those that do not, very few report on-time payments. This can make it virtually impossible to build a positive payment history.

However, the right credit coach will know how to save you a lot of time finding these vendors. Applying to random vendors just to see if you get approved, and then waiting to see whether or not they report, is a huge waste of time. Since time is money, it is an incredible waste of money as well. A credit coach can easily earn the cost of his or her services with this step right here.

What’s the Payoff?

Using a business credit coach to walk you through this process will pay off in the long term. It will create a base for you to access loans in the name of your business. Even those lenders that want to see your personal credit may offer better terms and interest rates if you also have good business credit.

Benefits of Company Credit

With strong company credit, you’ll be able to get access to working capital more easily, as well as company financing for anything else you may need. Company credit is one of many tools a business can use to grow and thrive. Business coaches can help their clients acquire this tool, so that the businesses they work with can get the financing they need, when they need it.

Credit Coaching with Credit Suite Helps with Establishing Business Credit and Funding

Credit Suite works with businesses daily helping them with establishing business credit, continuing to build it, and helping them find the funding they need right now. We have relationships with lenders that approve those with excellent business credit, and those that are still working on it. We have financing options, including credit lines, with competitive interest rates. Businesses have funding choices whether or not they already have company credit.

Honestly, it is almost impossible to run a business without at least some debt. We have the ability to help companies find the lenders and types of funding they need, whether that be loans, financing based on investments, or some other option. We work with banks and other credit providers to get you the dollars you need for success. Better yet, our proven system is sure to help you build strong credit for your company in the most effective and efficient way possible.

The post How to Work With a Business Credit Coach appeared first on Credit Suite.

Business Credit for Trucking Drivers!

Business credit is credit in the name of your business only. It is separate from your personal credit and is only reflected on your business credit report. It’s important for all businesses in any industry, regardless of the types of products or services they offer. That includes trucking drivers.

How can trucking drivers establish business credit? Why do they need to do so? What benefits does business credit offer to truckers?

If you own your own trucking business, you need business credit. In fact, every business owner needs business credit to fund their business, not just truck drivers.

First, business credit helps protect the owner’s personal credit. When truckers fund a business with personal credit, they can end up sabotaging their ability to buy a home, vehicle, or anything else.

There are other benefits to business credit as well. It can bridge gaps when cash is low so you do not have to stop providing services to customers.

It provides the capital needed to grow and thrive. Even better, it can do all of this while reducing the need for a personal guarantee. Often, strong business credit can even help get lower rates and better terms on business loans.

Lenders look at business credit reports from business credit agencies to help determine the creditworthiness of the business itself, apart from the owner. So, if personal credit isn’t great, lenders that rely on business credit reports may still be able to offer funding services.

Establishing Business Credit for Trucking Drivers

Business credit is not like personal credit. Personal credit builds passively on its own. In contrast, you have to intentionally establish business credit. The first step you have to take to establish business credit is to build a Fundable Foundation.

That means you set your small business up to be separate from you as the owner. To do that, you need (among other things):

Separate contact information
An EIN
To incorporate as a separate business entity
A separate business bank account
A professional business website and business email address with the same URL
Proper licensing

This is just the beginning of what it takes to establish business credit. However, none of it will work if you do not take these first steps toward building a foundation that sets your business apart as a separate entity from you as the owner.

What do these things have to do with a trucking company’s business credit file and separating business credit from personal credit? How do they affect the ability of a small business to get funding, or Fundability?

There are at least 125 factors that affect Fundability. Some of them you can control, and some of them you cannot.

Business credit is a part of overall Fundability, as is the foundation. But, you cannot get business credit without a Fundable Foundation, and that is one thing that is definitely under your control.

Establish Business Credit: Business Address Phone Number Matters

It’s hard to imagine that something as seemingly minor as a business address can affect your ability to get business credit. Yet, as part of a Fundable Foundation, it definitely can.

The business address has to be a physical address where mail can be delivered. A PO Box or UPS box will not work. A virtual address is an option, but it is possible a lender will not accept it. In our experience, most do, but they do not have to.

With a virtual address, you will receive mail and packages at a dedicated physical business address. Some even offer dedicated phone and fax numbers and receptionist services. A few include part-time use of fully furnished offices and meeting rooms if needed.

Your business phone number needs to be toll free. It should also be listed in the 411 directory.

Establish Business Credit: Business Name and EIN

Like any established or new business, a trucking business name matters. It has to do with risk. Trucking is considered a risky business. When you consider a business name, try to keep things that indicate that it is a trucking business out of the name.There is no harm in naming it “Billy’s Business” rather than “Billy’s Trucking Business.”

Consistency is another issue when it comes to the business name. It has to be the same on all documents. If your incorporation papers show the name with an ampersand and the loan application has the name with the word “and” instead, it can cause denial.

Inconsistency of any kind, no matter how small, triggers a red flag for possible fraud. Most lenders will just deny rather than take the time to investigate.

Also, trucking industry professionals will need an EIN for their business credit file. It’s a number for your company similar to an individual’s Social Security Number. Get one fast, easy, and free from the IRS website.

Use this number when applying for business credit of any kind. Whether vendor credit, credit lines, or loan applications. You may still have to provide your Social Security Number in some cases for identification purposes.

However, they should not use it for credit purposes. It’s a fraud precaution only. Your EIN is what will identify your company as a separate entity and allow lenders to check your business credit score.

Even With Trucking Drivers Business Entity Matters

For establishing business credit, a truck driving company cannot be a sole proprietorship or partnership. The best business entity is either a corporation or a limited liability company.

Whether you choose a corporation or limited liability company is a choice to make with the advice of your tax preparer or attorney. It will depend on your needs for liability protection and budget. Either one works for Fundability and credit building.

A limited liability company is the most budget friendly, but a corporation offers the most protection.

A Separate Company Bank Account is Vital to Establish Business Credit

A separate business checking account helps separate business expenses so there is no commingling of funds. Your business banking history is important to future success in getting bigger business loans.

The date you open your business bank account is important because, the longer your business banking history, the better your borrowing capacity is.

Having a high account balance is imperative in attaining an excellent Bank Rating. And a good Bank Rating is imperative for loan approval down the road.

Try to maintain a bank balance of $10,000 or more for a 5 Bank Rating. You are likely to be approved for loans eventually.

In addition, some vendors that do not even check credit reports will not extend net terms if you do not have a business bank account. Since, as you will see, vendor credit is the key to establishing credit, this is huge.

Professional Business Website, Email Address, and Licensing

Of course, suppliers want to be sure the trucking service they choose is the best for them. The easiest way for them to do that these days is to search online. But, this is only one reason why a professional website is important for trucking drivers.

Even when lending within the trucking industry, lenders will search a company online before deciding to lend money. If they do not see a website for your business, or find one but it is poorly made and unprofessional, it reflects poorly on the company as a whole.

As a small business owner, it is your responsibility to contact the State, County, and City Government offices to see whether there are any necessary licenses and permits to operate your trucking company. This includes your commercial driver’s license.

Your company filings must be listed correctly at the state, county, and city levels. Plus your Internal Revenue Service filings must have correct listings.

NAICS Codes and D-U-N-S Number

These codes are a large part of how they will judge any trucking business. The IRS website is also where you choose NAICS codes. These codes are for the purpose of collecting, analyzing, and publishing statistical data on the US economy.

Per the NAICS, the 484230 code covers Specialized Freight (except Used Goods) Trucking, Long-Distance. The 484110 code covers General Freight Trucking, Local.

Neither 484230 nor 484110 is listed on the NAICS list of high risk and cash-intensive businesses. However, that list is from 2014 and does not appear to have been updated. It makes sense to err on the side of caution.

Ensure your company is listed with Dun and Bradstreet. If it isn’t, then get a D-U-N-S Number. This number kicks off the process of developing your business credit profile with them.

Your D-U-N-S number will also play an important role in enabling your company to borrow without a personal guarantee. You can get your D-U-N-S number for free on the D&B website.

Check out Credit Suite for the lowest-price monitoring of your company PAYDEX, as well as your Equifax report and Experian business credit report and more. We can save you 90%!

After Building a Fundable Foundation, What Else Does a Trucking Business Need for Establishing Business Credit?

A company in the trucking industry needs to establish business credit and build a good business credit history. This is the only way to ensure you have the business credit you need to access funding to pay drivers, purchase equipment, extend services and more. The first step is vendor credit.

The key is finding vendors that will extend net terms on invoices to your company without a credit check, and that will report payments on those invoices to the business credit reporting agencies. This can be hard to do because these “starter vendors” do not advertise themselves as such.

Credit Suite helps trucking drivers build credit by guiding them toward suppliers that we know both extend net payment terms without established credit history and report payment.

This allows a company to establish business credit and build a business credit profile with positive payment history. As you make business purchases for these suppliers using the credit, and make on-time payments, your business credit score gets stronger.

Use Business Credit and Use it Responsibly

Remember, you must be sure those invoices get paid on time. Businesses that do not use their credit by not making any purchase from these vendors, and those that do not pay on time, do not do themselves any favors.

After you have established your business credit score, you can apply for more vendor credit from more suppliers or service providers and even business credit cards.

A small business credit card allows trucking drivers more flexibility when it comes to managing expenses and cash. Business purchases can be made from suppliers as needed, and paid for after the cash is received.

For example, you can pay for the fuel to make a haul on credit, and pay it off when your client pays you.

You can often issue a business credit card to multiple trucking drivers. Some business credit card companies even allow you to set limits for individual drivers. This helps trucking businesses better manage expenses and spending.

Financing Options for Truckers

There are a number of options when it comes to financing for truckers. Of course banks are an option. After you establish credit for your business, you can apply for SBA loans and more. However, even with strong business credit these are not always the best options for trucking drivers.

Credit Line Hybrid

Truckers do have other options. For example, the Credit Suite Credit Line Hybrid is a great option, whether you have established business credit or not.You do need either a personal credit score of 680, or a credit partner with a good credit score. With that, truckers can qualify for up to $150,000 in funding with the potential for a 0% introductory interest rate for the first few months.

Equipment Financing

Equipment financing is another good option in the trucking industry. This is when you use a loan or lease to purchase or borrow hard assets for your business. In this case, that probably means trucks. However, this is a financing option you can use to buy or lease any physical asset.

One big advantage is, you will pay predictable amounts every month, thereby making budgeting a lot easier. You can even build business credit on a program like this.

Also, equipment makes great collateral. As a result, the lender probably won’t want any other collateral, and interest rates should stay on the lower end from that of other options trucking drivers may use.

Often, you’ll put down less money than you would if you were buying the equipment. You might be able to negotiate flexible terms. Plus, it’s easy for truckers to upgrade equipment once the lease ends.

Yet, there are disadvantages to equipment financing for trucking drivers as well. Your down payment can be large. Good personal credit is often a must in order to qualify. If your financed equipment becomes outdated in the future, your business will be stuck with it until the end of the lease for loan.

Often, leases can end up costing more than buying. When the lease ends, you’ll need a new lease or will have to make some other arrangement. In contrast, buying a piece of equipment means it’s yours to keep or to sell.

Fundbox

Fundbox is great for short-term lending for truckers. Basically, you borrow on a line of credit to be repaid every week for up to 12 weeks. Pay is made via automated deductions from your company bank account.

Business Credit Can Be Affected By Personal Credit

It’s important to note, personal credit can have an affect on your business credit reports. For example, both the Experian business credit report and FICO SBSS use personal credit in their calculation for your business credit score.

It’s also important to realize that when you apply for small business loans and credit lines from traditional lenders, they are going to take your personal credit into account.

However, if you have strong business credit, it will only help you. It will allow them to lean less heavily on personal creditworthiness and more on the creditworthiness of the small business.

So, while business credit can protect your personal credit score, the reverse is not always true. If you needed another reason to work to keep your personal credit strong long into the future, there you go. Good credit scores are a benefit all around.

Credit Suite Can Help Truck Drivers Build Good Business Credit

Credit Suite’s goal is to help every small business, including truckers, get the funding they need. From business credit cards to lines of credit and beyond, we are here to help. We walk trucking drivers step-by-step through the process of building a Fundable Foundation.

After that, we guide you toward the vendors that will work best for your business every step of the way. One of the biggest benefits of our services is that our vendors are fully vetted.

We know they report, and we know what they require from businesses, including truckers, to qualify for credit. Companies never have to wonder if a vendor is reporting or when they qualify to apply for more credit.

Credit Suite meets truckers where they are and walks them through the entire business credit building process. Of course, it’s possible to build business credit on your own.

However, if you choose to do so, it is strictly trial and error trying to find the vendor accounts you qualify for and that will report.

It can take forever, and you may be getting nowhere and not even know it. That’s the true benefit of our service, for truckers and any other type of business. We save you time, and since time is money, our services also save you money.

Trucking Drivers Need Business Credit: Start Now

Whether you’re a business with one truck driver or multiple drivers, we can help you build credit for your company in the most efficient way possible.

This will allow you to access the funding you need to pay drivers, hire a new driver, offer more benefits to drivers, and even purchase new equipment or buildings. You will be able to offer trucking services to your clients at the best prices possible for years to come.

Our services set truckers up to get the money you need to grow and thrive far into the future. For more information, contact us for a free business financing assessment. It’s time to take the first step.

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Recent Business Credit Questions: Can Business Credit Ease Inflation?

Your most recent business credit questions have been weighing on our minds. So, let’s talk about that — and inflation. There’s more of a connection than you may think. What better place to start than at the beginning?

Basic Business Credit Questions

Here are answers to some core business credit questions that the others build on.

What is Business Credit?

Business credit is credit in the name of the business. Every business owner should work to establish business credit and build a credit history.

There are a few reasons for this. First, it protects your consumer credit. Trying to make business purchases on personal credit can have a negative impact. The truth is, that’s the case even if you make your payments regularly and on time.

What Can Business Credit Do for Small Business Owners?

Creating a business credit profile means both your business and you can have a separate score. As a result, your ability to purchase a home or car will not be affected by your business expenses. Furthermore, your ability to get funding for your business will be less affected by your personal financial situation.

Your consumer credit report will have information on payments made, or missed, to your company’s creditors. The more positive history you have, the higher your score will be with whichever credit bureau the lender decides to use.

Why Should Business Owners Want to Have Business Credit Separate From Their Personal Credit?

With a separate profile, small businesses can get approval based on the financial health and well-being of the small business. Whether it is a business credit card, a line-of-credit, or a loan, approval will not be impacted as much by your personal finances. With business credit, it’s a truly separate credit score versus personal credit.

This not only makes it easier to get funding for your business, but it can open doors for you to get even more funding. For example, with a strong business credit profile, you are open to a higher limit and lower rates on a business credit card, lines-of-credit, and even vendor credit. Often, you can get these things despite bad consumer credit and without a personal guarantee.

Do Business Entities Matter When it Comes to Business Credit?

Absolutely—all business entities are not created equal. A sole proprietor can end up being personally liable for business debts. But in a business that is incorporated with its own tax ID, the owner’s personal assets are less likely to be on the line in case of default.

In addition, lenders want to see that a business is a separate entity from its owner. For that to happen, a business needs to have a Fundable Foundation. And that requires incorporating.

What Does a Small Business Owner Need to Do?

To have a Fundable Foundation a business must be set up a certain way. For example, you need to incorporate. A sole proprietorship or even a partnership doesn’t work so well for Fundability.

You also need to have a name for the business that is consistent in all places, and that doesn’t warn of a high risk industry. So, “Bob’s” is better than “Bob’s Gas Station.” And, if it is “Bob & Joe’s,” do not list it as “Bob and Joe’s” somewhere else. Yes, even something as tiny as an ampersand can cause a problem.

Then, get an EIN and a D-U-N-S number. The EIN is like a Social Security Number for your business. You can get one for free on the IRS website. The D-U-N-S number is an identifying number you need to get in the Dun & Bradstreet system. You can get this number for free as well from their website.

A separate business bank account in the name of the small business is also necessary. Keeping business funds and personal funds separate is a good idea anyway. It makes tax time easier for sure. However, some credit providers make it a requirement for approval as well.

It’s also important to have a professional business website. The URL should have the name of the business if possible, and get a business email address that has the same URL as the website.

What Do Business Credit Bureaus Look for When Calculating Scores on a Business Credit Report?

A credit report will show a company’s pay history, even for items as seemingly inconsequential as office supplies. The exact way a score is calculated depends on the specific credit bureau. They each use a different formula.

Dun & Bradstreet is the largest and most commonly used business credit bureau. That’s why getting a D-U-N-S number is so important. You cannot be in their system without one.

That said, Equifax, Experian, and FICO SBSS are also used often. Generally speaking, the main factor that comes into consideration for the score on each of these reports is payment history. However, Experian and FICO SBSS use your personal score in the calculation of your business score. It’s not just about business credit card payments.

Inflation Related Business Credit Questions: What is Inflation?

According to Investopedia, “Inflation is a decrease in the purchasing power of money, reflected in a general increase in the prices of goods and services in an economy.”

In essence, your money does not go as far as it used to. This is true for all businesses, whether it’s a new business, a sole proprietorship, a partnership, a type of corporation, or an LLC.

How Does Inflation Affect Many Small Business Owners?

In business life, companies may find their business customers are looking to spend less. As a result, annual revenue can go down. It makes sense that customers may not want to be personally responsible for as much debt.

Business Credit Questions Connecting Inflation to Business Credit: How Do Inflation and Business Credit Relate to Each Other?

Many lenders and credit card companies will check your credit when deciding how much credit to extend or how large a small business loan they should approve you for. It can affect the interest rate you pay, too. Without business credit, a lender will only be checking consumer credit, as that’s all you’ve got to offer. And if that credit score isn’t so good, you won’t get much. You’ll get a lower credit limit (if they extend credit to you at all), and any potential lender may charge higher interest rates.

How Does What’s on Your Business Credit Report Affect Approvals?

If your funds aren’t going as far as they used to, then you might want to lean on business loans. But you’re less likely to get a business loan if you haven’t built your company’s credit profile. And forget about qualifying for an SBA loan.

If owners cannot meet a lender’s credit requirements, then companies may have few choices. One option is an alternative lender. A small business owner may find they are paying a higher interest rate for a lower credit limit or business loan amount when it comes to alternative loan options however. Alternative lenders, though a helpful loan option to have, are notorious for higher rates.

During an inflationary period, that means such less favorable credit terms put even less money in an owner’s pocket.

Business Credit Questions for Hard Times: How Can Small Business Owners Help Their Businesses Better Weather Inflation?

Of course, the best thing small businesses can do is build business credit. Building a credit history with the business credit bureaus means setting up your business properly.

That includes building the Fundable Foundation mentioned earlier. Then, establishing business credit history with the credit bureaus. Build your business credit profile with an eye toward helping your small business get better credit terms and qualify for business loans. Doing so can help you manage funds and cash flow in a more efficient manner.

A Business Should Get Accounts With Vendors to Start

These are vendors for items which a business uses all the time, like office supplies. It’s a lot easier for a business to get credit accounts with one of these companies early on. Some may even offer a card, making it possible to get a first credit card in the name of the business. Even a secured business credit card will help, so long as it reports to at least one of the business credit bureaus.

Businesses Should Act Now to Pay Less Later

Inflation isn’t going away any time soon. Building credit for a business as soon as possible will help in the future. If inflation gets any worse, you’ll pay more anyway. Why not at least try to minimize that?

Business Soundness Doesn’t Necessarily Help Raise a Business Credit Score, But it Does Help a Business Get More Funding When They Need It

Companies that add working capital now can convert it into more annual revenue when they invest in better equipment or more inventory prudently. And even a new business can have its own business accounts. This is true even when small businesses are fighting inflation.

Business Credit Questions Relating to Personal Credit: Why Not Just Use a Personal Credit Card for Business Financing?

For one thing, credit approval amounts tend to be higher for a typical business card versus a standard personal credit card.

Your Personal Credit Score Would Plummet

On a personal report, the debt ratio affects your score. That is, the amount of credit you are using relative to the credit you have available to use. Since consumer credit limits are typically lower than business credit card limits, and business expenses are higher, your balance can stay close to your limit even when you may make regular, on-time payments.

In turn, your debt-to-credit ratio stays higher than what lenders like to see. Ideally, it will be less than 30%. Anything higher will have a negative impact on your personal report. This ratio does not affect a business credit profile the same way.

Other factors that affect your consumer report include credit mix and any inquiries on. But for both your business and personal credit score, payment history is a big part of the credit calculation.

Limits on a Business Credit Card Tend to Be Higher Than Those for a Personal Credit Card

To get more funding for a business, small business owners would do well to use a credit card for their businesses. They tend to be more flexible than small business loans, because of their revolving nature. In addition, many of them have 0% interest rates you can take advantage of, as well as rewards programs. Just be sure to choose rewards programs relevant to your business needs.

When You Build Business Credit, Your Pay History on a Business Loan Should Stay Off Your Consumer Credit Report

With a separate business credit profile, you won’t get an inquiry on your consumer credit. Inquiries impact your consumer score negatively, but this is not true of a commercial score. So, separating the two keeps your business finances from affecting your ability to get personal loans. In addition, in some cases it can help you get a loan for your business without a personal guarantee.

What About Using a Personal Guarantee? Won’t That Affect a Personal Credit Score?

If a business owner needs a small business loan immediately but can’t get it any other way, then offering a personal guarantee can be a smart choice. But don’t just offer a personal guarantee if you can help it. It can affect your personal credit report. Even a new business should be able to establish a credit profile and build a credit score without always giving up a personal guarantee.

What Else Can Business Credit Do for Small Businesses?

Even when inflation is on the rise, a separate credit profile increases the chance of loan approval for a business. That doesn’t mean the personal report will be ignored. However, if the business has a good credit score, loan requests are more likely to be approved. It can’t hurt the interest rate either.

Credit Suite Can Answer Your Business Credit Questions

Rising inflation means business owners need more funds. In contrast, getting a loan at times like this is even harder than normal. On the lender side, they have to be much more careful with loans to reduce risk. In general, their risk is higher because borrowers do not have as much disposable income.

Credit Suite can answer your business credit questions. We can help you meet the guidelines a lender sets to meet loan requirements. We walk you step by step through the foundation building process. Then, we help you find the perfect vendors for your business, so you can buy the things you need for your business while building your profile with the bureaus.

Not only that, but we keep our finger on the pulse of the industry. We can often anticipate business credit questions before they are even asked. Due to our lender relationships, we are able to follow the patterns a lender may follow, and keep up with which ones are lending more at any given time. In short, we help increase your chance for loan approval by helping you find the right lender and loan product that best meets your needs.

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Do You Want a Million Dollar Business Loan? Here’s What You Need to Know

What could your small business do with a million dollars? Most small business owners think getting a million dollar business loan is a dream come true. Yet, do you really know what it takes not just to get a business loan of that size, but to pay for it? How much does a million dollars cost? Here’s what you need to know.

The First Step is Building a Fundable Foundation

Your small business needs a FundableFoundation to qualify for business loans. The foundation is how your business is set up.

A small business that isn’t set up to be Fundable will be hard pressed to get business loans of any type, especially traditional bank business loans.

For sure, a million dollar small business loan will be difficult to get. This is what sets your business apart from you as the owner. As a result, the foundation is the kick start to overall Fundability.

What’s In a Fundable Foundation?

A Fundable Foundation is necessary for any type of business loans. That means a small business loan, vendor credit, credit cards, or any other type of business funding. It includes the following.

Business Name

First, your business name needs to be registered with the Secretary of State. Furthermore, it should not include or allude to a high-risk or restricted industry. Lenders do not like risk, and most are not in the habit of making business loans to businesses in high-risk industries.

Consistency

Also, your business name has to be consistent everywhere you use it. If it changes, change it everywhere, and be sure it is the same.

Consider the following examples.

“Bill & Tom’s Discount Fishing Lures, Inc.”

“Bill and Tom’s Discount Fishing Lures”

“Bill’s and Tom’s Discount Fishing Lures”

Of course, they are similar. Yet, they are not the same. So, if you use one of these on your registration with the Secretary of State and one of the others on your million dollar loan application, you may not even make it to the underwriting process.

Likely, your application will be automatically denied for business loans due to fraud concerns.

Business Address

This must be a deliverable physical address, never UPS box or a PO Box. It’s true, a virtual address can work. Yet, we know of at least one credit provider that will not accept them.

EIN

You can get an EIN, or Employer Identification Number, free at IRS.gov. Then, use it to open a bank account and to build a business credit profile.

Be sure to verify that all agencies, banks, and trade credit vendors have this number and associate it with your business .

Business Entity

Using a corporation or LLC structure gives you more credibility. Better yet, it reduces your personal liability.

Business Phone and 411 Listing

Remember, toll-free phone numbers are best. Also, it should be listed in the 411 directory.

Business Licenses

Always make sure you have the proper licensing.

Web Domain and Professional Website

For many reasons, you need a professional website that is helpful. Lenders will research your business online, especially before lending a million or more.

As a result, you should pay for web hosting. Unfortunately, this is not the time to use a freebie. Also, the domain should be the business name, if possible.

In addition, you need a company email address. It should be the same domain as your website.

Business Bank Account in the Business’s Name

Due to the fact that business banking history is vital to getting business financing, it is necessary to have a separate, dedicated business bank account. Of course, the longer the bank history is, the better.

Next Step is to Build Strong Business Credit

As you know, lenders like to see a strong business credit profile. As a result, while personal credit isn’t ignored, good business credit can soften the impact of a bad personal credit score.

Nothing Replaces a Strong Business Plan

Without a strong business plan you won’t get business loan approval. Whether you are looking for a traditional loan, SBA loans, or working with online lenders, this is important. This is true even though online lenders tend to be less strict with business financing approvals, a strong business plan never hurts. The presentation should be professional in both appearance and content.

Business Plan Writing Resources

You can hire a business plan writer, or do it yourself, but use all available resources.

The Small Business Administration offers helpful business plan writing resources, and not just for SBA loans.

The Small Business Development Centers have a number of helpful aids also. Check with local universities to find one near you.

The Major Clincher for a Million Dollar Business Loan is Revenue

Obviously, you can’t get funding without revenue. Of course, this is because business loan repayment comes from revenue, and lenders want to know they will be repaid.

But, exactly how much is the payment on a million dollar business loan?

Example Monthly Payments on a Million Dollar Business Loan

Business loan terms and payment amounts are variable based on terms and rates. Consider a $1M loan with an interest rate of 4% fixed for 20 years. The monthly payments on that business loan would be $4,774.15.

Then, consider the same business loan with the same interest rate for 15 years. The payment on that is $7,396.88 a month.

A Word About Collateral

If you have a Fundable Foundation and strong business and personal credit, the next step to getting more funding is collateral. It allows for better loan terms, including more money with lower interest rates and better terms. Furthermore, many SBA loans require collateral anyway.

Types of Collateral

Collateral can be pretty much any valuable asset. These include:

Buildings
Equipment
Inventory
And more

What Does it Take to Get a Million Dollar Business Loan?

To get the most funding possible, whether through small business loans or other funding, you need:

Fundable Foundation
Good business and personal credit score
Professional business plan
Collateral

Credit Suite Can Help

We can help with the Fundability and business credit. We know the secret sauce to get you started and help you grow in the most efficient way possible.

Then, you can get the funding you need, when you need it. With Credit Suite, you may be eligible for a million dollar loan sooner than you think.

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Same-Day Business Loans: Everything You Need to Know

Many small to medium-size businesses need rapid funding at some point. Same-day business loans can be a lifesaver for a business owner, whether there is a cash flow crunch or a time-bound opening. Same-day business loans are structured like any other loan. You receive a certain sum at an agreed-upon interest rate and pay it back with interest over a predetermined repayment time.

The main distinction is that same-day business loans offer funding within a day or less. To get the most of same-day financing opportunities, you’ll often need to keep up with lending industry trends.

Five Types of Same-Day Business Loans You Must Know

Providers of same-day business loans now operate can help smaller companies get through hard times. . There are several business loans and short-term financing options accessible.

1. Business Line of Credit

If you have a line of credit, it functions like same-day business loans in that it lends you money on the go and is accessible anytime you need it. As you make the payments, the line of credit extends anew. It enables you to raise funds just when necessary, pay interest solely on the amount borrowed, and thus build your business credit score.

If you are forming an LLC in Georgia, business lines of credit may be helpful for financing working capital as well as a source for emergency funds.

2. Accounts Receivable Financing

Here, your lenders provide you with a portion of your client’s invoice. This financing allows you to get by until your installments arrive. It includes both invoice factoring and invoice financing. Still, they vary slightly in how lenders collect payments and how invoices are processed.

3. Equipment Financing

Use this type of financing to buy equipment, inventory, or devices to keep your agreements. . You won’t need collateral because the loan gets secured on the equipment itself. It implies that you have a good shot at getting approval even with a bad credit score.

4. Merchant Cash Advance

A merchant cash advance (MCA) is a lump sum of funding you borrow from an online financing provider. And you repay it with a percentage of your businesses’ daily card transactions. The MCA is a quick and straightforward way to secure a business loan, but it is perhaps one of the more expensive models. The amount approved is calculated as a proportion of the business’s daily transactions. The businesses that use an MCA usually charge back between 20% and 40% of the money borrowed as a factor rate.

5. Working Capital Loans

During a downturn in business, use these loans to finance routine operational expenses like rent, salaries, and utility payments. They are mainly for modest sums of money.

Furthermore, these loans tend to not demand collateral and often get repaid over a year and a half. You might be able to secure a working capital loan very fast, particularly if you’ve previously used one and repaid it on time.

The Pros of Using Same-Day Business Loans

A swifter financing process

The key benefit of same-day business loans is that you will get the financing you need on the same day you ask for them. If you get all the necessary documentation ready and match the qualifying criteria, some lenders even grant business loan approval instantly.

A convenient loan application process

Instant business financing does not call for substantial paperwork. To apply for a same-day business loan, you must provide basic financial details but no extensive financial documents.

Loan approval even with low credit scores

Same-day business loans have far less demanding approval thresholds. This is when compared to traditional company finance. While the criteria for business loan providers differ, it is possible to get a quick small business loan with a credit score as low as 500. Furthermore, many same-day lenders do not ask for collateral.

Repayment discounts

It varies from lender to lender. But at times, a lender may provide an early payment discount if you repay your entire loan amount with interest in a particular period.

The Cons of Using Same-Day Business Loans

Higher interest rates and associated fees

Same-day business lenders deal with the financing and approval of riskier applications. This results in greater default risk. To be profitable and offset the risk in the face of increasing loan defaults, such lenders demand higher interest rates and fees.

Fewer lending alternatives

Conventional lenders, like credit institutions and banks, often do not provide instant business loans. As a result, it’s often harder to identify legitimate lenders who offer same-day loans.

Smaller financing amounts offered

Most entrepreneurs seeking same-day business loans resort to personal loans to cover business expenses. Personal loan amounts tend to be much lower than what you’d expect from a conventional business loan.

Takeaways

The trick to getting a same-day business loan is making sure your financing proposal is thorough. You need to fulfill the lender’s requirements for documentation. And you need to submit documents per the lender’s timeline.

At the same time, it’s critical to remember that there is no need to rush the process of applying for a business loan. These loans can be exceedingly expensive due to high-interest rates. Hence, before you enter into a loan agreement, double-check that you understand all the surcharges, cost of interest, and penalties in your term loan contract.

Author Bio:

Matt Horwitz is the founder of LLC University, a website that teaches people how to form LLCs. Matt is the leading authority in LLC education. He is featured in CNBC, Yahoo Finance, Entrepreneur Magazine, and US Chamber of Commerce. Matt holds a Bachelor’s Degree in business from Drexel University with a concentration in business law. LLC University®, established in 2010, was the first company to create free LLC courses in all 50 states.

The post Same-Day Business Loans: Everything You Need to Know appeared first on Credit Suite.

How to Use Meta Business Suite (Formerly Facebook Business Suite)

Businesses spend nearly 115 billion total on advertising across the Meta (formerly Facebook) platforms. Why? It works! And not only that; Meta has great tools that allow you to easily manage and track your business accounts.

Are you struggling to keep up with your Instagram and Facebook marketing?

DMs and comments falling through the cracks?

Do the multiple tabs for all your accounts and features like the Ad Manager drive you nuts?

Then you’re going to fall head over heels with Meta Business Suite, called Facebook Business Suite before Facebook changed its name to Meta.

It’s the platform’s newest creation, designed to iron out the time-sucking road bumps in social media management and make it easier for businesses to manage their Instagram and Facebook profiles.

Below, I’m breaking down everything you need to know about Meta Business Suite. We’ll unpack what it is, everything you can do with the tool, how it can benefit your business and a quick walkthrough on how to set up your account.

What Is Facebook Business Suite (now Meta Business Suite) and How Does It Work?

Meta Business Suite streamlines your Facebook and Instagram accounts into one easy-to-use dashboard.

Through the platform, you can manage all accounts you own or administrate with various tools to make controlling your business’s social media presence much easier.

The best part? It’s free and available on mobile and desktop.

All you need to do is link up your accounts, and you’ll instantly have access to an overview dashboard of your Facebook Pages and Instagram accounts.

You’ll be able to:

create a to-do list of notifications to manage
check insights on your performance and audience growth
create or see recent posts or stories
create or manage recent ads
see content calendar
view content inspiration
communicate with an inbox for Facebook and Instagram DMs and comments
access the Commerce Manager
check Business Suite updates

That’s only the tip of the iceberg.

There’s an entire “more tools” section with 12 other features to play around with, including:

appointments
ad manager
events manager
instant forms
media library

Facebook (Meta) Business Suite vs. Facebook Business Manager

Before Facebook became Meta, they offered both Facebook Business Suite and Facebook Business Manager. Both options are still offered under Meta.

The Business Manager is a backend tool used to share or limit access to your business accounts by assigning one of six different “roles” to those with access to your accounts.

The Business Suite offers front-end management, like merging notifications, scheduling posts, and managing your inbox.

Facebook (Meta) Business Suite allows you to combine and streamline your activity across the Meta social media and messenger platforms.

Leveraging Meta Business Suite Insights

Meta Business Suite makes it easy to track your business accounts and campaigns across the Meta social and messenger platforms.

Here are some of the insights Meta Business Suite provides and how you can use them:

Ad spend: You can track your ad spend across all Meta platforms. Based on how well you’re performing, you can adjust your spend accordingly. For example, if you’re spending a lot on Instagram ads but see via other insights that the ads aren’t performing well, you can redirect your budget towards the Meta platforms you’re more successful on.
Engagement: Meta (Facebook) Business Suite allows you to see engagement with your organic and boosted content. You can see what content performs best and use that to inform your future strategies and the content you publish on social.
Audience demographics: With Business Suite, you can see data about the users who interact with your profile and content. For example, you can see where they’re from, their other interests, their age, and more. You can use this information to continue creating content that targets your existing users, or adjust your strategies if your content isn’t reaching the right audience.

Using the Meta Business Suite App

The Meta (Facebook) Business Suite mobile app allows you to manage your business accounts from your mobile device.

Everything you can do on desktop, you can also do on mobile. You can monitor your account activity, manage your inbox, and even get audience insights.

How to Use Meta Business Suite

Before you can start streamlining your social media management with Facebook (now Meta) Business Suite, you’ll need to follow a simple setup process.

Step 1: Create a Facebook Business Account

Go to https://business.facebook.com/ and select “Create a Facebook Business Account.” Enter your business account name and select “Next” when you’re done.

Create a Facebook Business Account in Facebook Business Suite

Step 2: Fill in Your Contact Information

Enter your full name and business email address. This information won’t be shared with your followers. Facebook will only use it to contact you.

Contact information form in Facebook Business Suit

Step 3: Select Your Facebook and Instagram Accounts

The Facebook and Instagram accounts you own are available for you to claim. If you’re managing an account someone else owns, you won’t be able to select it.

In order to select an Instagram account, it needs to be converted to a business or creator account. If you try to select a personal account, Facebook will ask you to switch before continuing the setup process.

Select your facebook and Instagram accounts in Facebook Business Suite

Step 4: Add People to Your Business Account

Here, you can select your page admins. Enter their email address and assign each contact as an employee (limited access) or business admin (full access).

If you’re running your accounts solo, you can skip this step.

In Facebook Business Suite, add people to you business account

Step 5: Review Your Business Account

When you’re happy with your selection and who has access to your Business Suite, click on “Confirm.” Facebook will then take you to your dashboard overview, and you can start using all the tools inside the platform.

In Facebook Business Suit, review your business account

Tools to Use in Meta Business Suite

Curious about the tools inside Facebook Business Suite? Let’s take a deep dive and look at what you can do with the platform and how it can benefit your business.

Monitor Your Inbox

Are comments one of your biggest time suckers? Do you constantly find yourself hopping between apps on your phone or getting inundated with notifications on your desktop?

With the inbox tool in Business Suite, you can see all your Instagram and Facebook comments in one place.

Pop the kettle on, make some coffee, block out 30-minutes in your calendar and respond to everything at once.

What about direct messages (DMs)? You’ll find that here too.
Got the Facebook chat plugin on your website? You can manage all your messages here as well.
Sick of replying to the same question every single day? Business Suite lets you create automated replies for your frequently asked questions.

How’s that for efficiency?

Explore Insights

There are tons of free and paid tools that show you Facebook and Instagram analytics, but few compare the platform’s built-in option.

With Business Suite, you can see your latest statistics for all your accounts.

Gone are the days of toggling between the different apps or going in and out of individual posts.

On the Insights dashboard, you can see an overview of how your content is performing over a specific time period, and sort your posts by:

reach
likes and reactions
comments
shares
results
cost per result
link clicks
recent content

One of the most interesting features of Insights is the Audience section. It breaks down your current audience for both platforms, and you can see at a glance:

age and gender
towns and cities
top countries

There’s also a potential audience tab. It details your estimated audience size if you run an ad, as well as the top pages liked by your potential audience.

Facebook Business Suite estimated audience size

Not liking what you’re seeing? You can create a custom audience by clicking on the “filter” button and refining the results based on:

location
age
gender
interests
language

Create Posts and Stories

Are you using post-creation apps like Later or Planoly? Business Suite sets itself up as a rival by giving you the ability to create your posts and stories in one place and schedule each one out.

That’s not all.

If you go to the Planner section on your dashboard, you’ll see a calendar view of your past and upcoming posts.

Facebook Business Suite planner section on your dashboard

Facebook also recommends a timeslot of when your audience is most online. Click on it, and you can start creating a new post or story.

Facebook Business Suite recommended time slot for publishing

One of my favorite features in the “New Post” box is the hashtag tool. It shows you which hashtags are trending, the number of posts using a tag, and lets you save your favorites for later.

Plus, it shows you hashtag results for each platform and gives you recommendations based on what you’ve already selected.

Facebook Business Suite hashtag recommendations based on your previous selections

Facebook Business Suite recommended hastags

While in create mode, you can put together your Instagram and Facebook posts at the same time. Switch between the different tabs, and you can see exactly how your post will look on the two platforms.

Creating Facebook and Instagram posts in Facebook Business Suite

For Stories, it works the same. Upload up to 10 photos or videos at once and schedule each one out when you’re done.

creating stories in Facebook Business Suite

Create Ads

Don’t want to have another tab open for Facebook Ad Manager? You can keep track of your ad performance and create ads from the Business Suite.

It’s another time-saver and allows you to see how you’re tracking towards goals.

On the dashboard, you can see:

reach
post engagement
link clicks
page likes

Switch between the different filter views to see your results over the last 90, 60, 30, and 7 days.

Click on the blue “Create Ad” button in the top right-hand corner to create an ad. A pop-up will load and take you through a step-by-step process for setting up a creative that converts.

First, you’ll select your ad goal. You can choose from:

automated ads
get more leads
boost a post
boost an Instagram post
promote a page
get more website visitors
get more messages

Next, start designing your ad creative. You’ll see a live preview as you adjust your text and media.

Turn on automatic adjustments if you want Facebook to tweak your ad for each viewer. For example, the platform might adjust the brightness or show the original aspect ratio if it thinks the ad will perform better.

Scroll down to select your audience or create a new one, placements, and set your campaign budget and duration.

When you’re done, click on “Promote Now” for your ad to go into review.

Create Appointments for Your Business

Remember those extra options I spoke about earlier?

One of the most important features of an online business is the appointments scheduler.

If you’re running a service-based business, take advantage of Facebook’s capabilities and empower your audience to book directly through the platform.

When people don’t need to log onto another site to complete the process, you’re removing an extra step and making it that much easier to close a sale.

The result? A boost in your bottom line!

Inside Business Suite, you can manage your appointments, view requests, and adjust the settings to suit your schedule.

Manage appointments with Facebook Business Suite

Generate Leads With Instant Forms

Does your business rely heavily on lead gen? Start using Facebook’s Instant Forms.

What are Instant Forms? Think of it as a mini CRM system. When you create an ad and set your objective to find leads, you can create custom forms users can fill out without leaving the platform.

Again, you’re removing the obstacle of trying to get them to go from one website to another. Thus, improving your chances of someone filling out the form and requesting a callback.

With Business Suite, you can manage your forms and set up the CRM system.

When you create a form, Facebook offers different options depending on your lead generation goal.

For example, you can create a “more volume” form (a quick option) or a “higher intent” (adds an extra step for users to review their information before submitting).

Frequently Asked Questions About Meta Business Suite

What is Meta Business Suite (formerly Facebook Business Suite) used for?

The Meta Business Suite is used for managing your Facebook Pages and Instagram accounts in one dashboard. You can reply to comments, create posts, schedule stories, run ads, and more.

How do you qualify for Meta Business Suite?

You need to have a Facebook page. If you have an Instagram account, you’ll need to convert it to a business account if you want to sync it to your Business Suite.

Is Business Suite on Facebook free?

Yes, Business Suite is free on Facebook to set up and use. All you need is a Facebook account and a Facebook Page to get started on the platform.

Is Facebook Business Suite the same as Meta Business Suite?

Yes, Facebook Business Suite is the same as Meta Business Suite. It was renamed “Meta Business Suite” when Facebook rebranded to Meta.

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Conclusion: Meta Business Suite (Formerly Facebook Business Suite)

Meta Business Suite is perfect for creators, personal brands, and businesses to streamline their social media management across Facebook and Instagram.

It gives you everything you need to monitor your growth, stay on top of comments and DMs from your audience, schedule your content, create ads, and so much more.

If you’re only using these two platforms to run your business and you’re using other social media management tools, it’s worthwhile to take a peek inside Business Suite. You might find it’s a more robust tool, and you can nip another business expense from your monthly budget.

What are your thoughts on Meta (Facebook) Business Suite? Are you going to make the switch and use it to manage your Facebook and Instagram accounts?

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