Caught in the Recession Rubble? Build Your Own Empire with a Recession-Proof Self-Employed Business

Wondering how to recession-proof, or social distance proof, your business? These are unprecedented times. Many business owners are wondering how to get business funding. Federal funding is available, but it may not be enough. The self-employed are perhaps taking one of the hardest hits, not even sure their business will be around when this is all over. Here’s one tip that could help. Building business credit can help you establish a recession-proof self-employed business.

7 Steps to Building Business Credit and Establishing a Recession-Proof Self-Employed Business

Our economy is cyclical, with almost predictable ups and downs. Recessions come and go. While some feel it more than others, very few go unaffected. If you are one of the ones feeling the crunch of layoffs and unemployment, try looking at it as an opportunity. It may not feel like it now, but you can overcome the crunch by starting your own business. This is possible despite what your personal credit looks like. How do you build a recession-proof self-employed business?

It takes time, but if you follow the steps and trust the process, you could build quite the empire out of the recession rubble. Take that idea that you have been tossing around and make it a reality. It’s never too late to follow your dreams, and sometimes the harsh realities of a recession are just the kick in the pants needed to get started.

Once you have your idea in place, it is time to get to work building business credit so your recession-proof self-employed business has a strong foundation.

1. Kick Your Business Out of the Nest

It is vitally important to remember to keep your business separate from your personal identity and financing when you want to build business credit when self-employed. During a recession, your personal credit is even more vulnerable. This is due to the very nature of what often happens to personal finances during a recession. Protect your FICO and keep it from affecting your business fundability. Do this by establishing your business as a separate entity. It is essential to building a recession-proof self-employed business.

Incorporate

To have a recession-proof self-employed business, you need to organize your business as a corporation, S-Corp, or LLP. This step is not free, but it is very much worth the cost for a couple of reasons. The first is that it makes building business credit possible by further establishing your business as its own entity.

The second is that it offers some protection for your personal finances from the liabilities of the business. You can choose to form as a corporation, anand S-corp, or an LLC. Choose the one that is the most cost-effectivecost effective for your purposes. They each offer different levels of protection and have different tax regulations associated with them, but they all serve the purpose of separating your business to help build business credit when self-employed.

When it comes to a recession-proof self-employed business, you should think harder about the cost versus the benefit of greater liability protection. While forming a full-on corporation isn’t for everyone, during a recession the benefit of personal protection from business liabilities can be even greater.

Get an EIN

We are a nation run on numbers. We use numbers for virtually everything, including identification. People have social security numbers, driver’s license numbers, PIN numbers, and a number of others in our daily lives. To build business credit, your business needs to have its own identifying number not attached to you.

The IRS can issue an EIN, which is the business equivalent of an SSN. It is free via the IRS website and an important first step in separating your business from yourself.

Hit the jackpot and weather any recession with our best webinar and its trustworthy list of seven vendors who can help you build business credit.

Contact Information

Your business needs its own telephone number, fax number, and address. A virtual address is fine, but don’t rely on a P.O. Box or UPS Box. An 800 number or some other toll-free exchange is best, and be sure to get a business listing in the directories.

Online Image

Set up a dedicated email for your business as well as a professional looking website. Even the most solid of businesses will look like a farce to creditors if they check it out and the website is poorly put together. It doesn’t have to be elaborate, but it should be free from errors, all links should work, and it should be professional in appearance. The same is true of an email address that is simply joebusinessowner@gmail.com. The business email address needs to reflect that it is specifically for the business. Something like “businessname@businessURL.com” is more professional.

2. Keep Up with the Numbers

Ditch the shoebox for an actual accounting system. It doesn’t have to be expensive or hard to use. QuickBooks Online is a solid go-to, and there are plenty of other options as well. This will help you when lenders need to see reports, as you can just run them from the system.

Along these same lines, be sure you have a separate bank account for your business, and use it to keep business finances separate from personal finances. Pay yourself a salary from this account, but do not use your personal account for business expenses or your business account for personal expenses.

While this does not directly build business credit, it does further establish your business as a separate entity and allows you to offer creditors a more accurate business financial picture. It can also help recession-proof your self-employed business by helping you to see where you stand and make adjustments if needed before you get into trouble.

3.Apply for a D-U-N-S number

Once the first two steps are complete, you need to sign up for a free D-U-N-S number from Dun & Bradstreet. While they are not the only business credit reporting game in town, they are probably the most commonly used by creditors. Building business credit with them is vital, and to do that, you must have a D-U-N-S number.

When you sign up for the number, they will try to sell you other products and services. Put on blinders and keep moving forward. None of those things are necessary, and the number is totally free. Having a credit score with Dun & Bradstreet, called a PAYDEX, requires both a D-U-N-S and at least three tradelines reporting. It is impossible to have a PAYDEX without a D-U-N-S number.

4. Get on Record

It is also impossible to have a credit score of any type, from any credit reporting agency, without creditors that will report your payments. This is where it gets dicey. You have to have credit to build your credit score. How do you do that? Can you even get credit without a credit score? How do you get credit when creditors are holding on to their funds tighter than ever during a recession?

If you build your recession-proof self-employed business before the downturn, you are golden in this area. It’s hard, but not impossible.

Establish Tradelines

This is where you start. Establish tradelines with starter vendors. These are vendors that will issue invoices with Net 30 terms or longer. While you may need to make a few initial purchases with these vendors to establish yourself as a customer before they will extend these terms, there is no personal credit check. They do sometimes want to see a certain amount of time in business, however.

As you pay the invoices consistently and on-time, these vendors will report your payments to the credit reporting agencies, thus establishing your business credit profile. Some of the most common and easiest to start with are Uline, Quill, and Grainger.

These are the easiest to start with simply because they sell products that most any business can use on a daily basis. Items such as paper, toner, pens, pencils, packing supplies, and even janitorial supplies. After you order from them a few times, apply for net 30 terms, pay on time, and watch your business credit score start to build like a snowball rolling downhill.

Once you have 8 to 10 tradelines reporting your on-time payments to the credit agencies, you can start to apply for various business credit cards. This is where the “recession-proof” part of a recession-proof self-employed business really starts to build.

Order Matters When Applying for Business Credit Cards

Once you start to build a good business credit foundation with starter vendors, you can apply for business credit cards. However, you have to work in order. If you start applying for the highest limit, lowest interest rate credit cards right away, you will be denied every time.

First, apply for store cards. These are credit cards you get from a specific store that you can use only in that store. They typically have low limits and higher interest rates, and they are limited to use either in the issuing store or on their website.

Next, after you have a few of these cards reporting, try applying for fleet credit cards. These cards can only be used for gasoline costs and automobile repair and maintenance.

Lastly, once you have several of these reporting on-time payments to the business credit reporting agencies, you should be in good shape to apply for those cards with lower rates and higher limits that are not restricted by retailer or type of expense.

As you can see, it all starts with building trade lines with starter vendors. Then a whole credit world opens up to you! You just have to apply to each type of card in order.

Hit the jackpot and weather any recession with our best webinar and its trustworthy list of seven vendors who can help you build business credit.

Ask Utilities to Report

The more businesses you have reporting to the credit agencies that you make consistent, on-time payments each month, the faster you will build business credit when self-employed. Everyone has to pay utilities, even during a recession. Creditors care about you making consistent, on-time payments, and payments to utilities count. They are an easy way to start building business credit once you have a credit profile, but you have to ask them to report. They are not required to do so.

Remember, you will still need tradelines. They are necessary to accomplish the task of having at least three accounts reporting and a D-U-N-S to establish your credit profile with them in the first place. Adding utilities will just help the process move faster.

5. Use the SBFE to Help You Build Business Credit When Self-Employed

The SBFE, or Small Business Finance Exchange, is a not-for-profit entity. It gathers data on small businesses from lenders that are SBFE members. They then use this information to create credit products that lenders can use to make credit decisions.

One of the characteristics of a recession-proof self-employed business is that the credit information about it is positive and available to lenders. They can help with that.

How Does it Work?

They use what they call a “give-to-get” model. Members release information about those they extend credit to. In return, members are able to receive information through the SBFE which can help them make future credit decisions.

It all starts with SBFE members reporting payment history and other information about borrowers. Then, the SBFE normalizes the raw data into usable data. This data goes to partners called certified vendors. Some credit agencies, including Dun & Bradstreet, are certified vendors.

Certified Vendors then use the information from the SBFE to create credit reporting products that only other SBFE members can access.

Members have access to the data since they also contribute information.

How Can They Help You Build a Recession-Proof Self-Employed Business?

When you do business with SBFE members, you know your information is being reported. This means you are building business credit. How do you know if your lender or vendor is a member? Ask them. If they are not, consider mentioning that they become a member. However, there are enough members that it should not be difficult to find plenty of them to do business with. Just be certain you are making your payments on time, consistently. Otherwise, you will be doing more harm than good.

6. Keep An Eye on Things

Once you have a D-U-N-S number and some accounts reporting, you will want to keep an eye on your credit report. Credit monitoring serves a couple of different purposes for your recession-proof, self-employed business.

The first purpose is to, of course, ensure your credit report is accurate and complete. If there is missing or incorrect information on your credit report, you will need to get it corrected. Request corrections in writing, and send copies, not originals, of backup documentation.

The other reason it is important to monitor your credit is so you know which accounts are reporting, how many accounts are reporting, and when you qualify to start applying for credit in higher tiers. You need at least 14 accounts reporting to get approval at the cash credit tier, and you will never know if you have that if you are not monitoring your credit score.

You can also watch your score rise. This is powerful motivation and confirmation that your business may indeed be recession-proof. The easiest way to do this is with a credit monitoring service.

7. Pay on Time

None of the steps you take to build business credit when self-employed will matter at all if you do not make your payments consistently on-time. While this is not the only factor in your business credit score, it is the one with the most impact. Whether or not you make your payments each month, on-time, is the number one factor that creditors use to determine your fundability.

Since it is a recession, you will need to be careful. Even the most recession-proof self-employed business can get into trouble. You need to obtain credit and use it, but do not overload yourself to the point you cannot make the payments. Find a responsible balance.

What Does Building Business Credit Have to Do with Building a Recession-Proof Self-Employed Business?

There are a couple of ways building business credit can help you with both your personal finances and business finances during a recession.

Protect Your Personal Credit

Building business credit is essential to business success. Without business credit, your ability to fund your business relies totally on your personal credit. If you have great personal credit you may not think that is such a big deal.

It means, however, that your business financial issues can impact your personal credit as well. This is bad in the best of times but even worse during a recession. Limits on personal credit cards are not as high as those on business cards. That means just by the nature of business transactions you may always carry a balance near your limits.

If that happens, it will affect your debt to credit ratio negatively, which in turn negatively impacts your credit score even if you are making your payments on time. If your business has its own credit, this is not a problem. Limits are higher, so you have more credit to work with, and regardless, it doesn’t affect your personal credit.

Hit the jackpot and weather any recession with our best webinar and its trustworthy list of seven vendors who can help you build business credit.

Access Funds to Build Your Business

Solid business credit gives you access to the funds you need to run your business. You can handle any issues that come along. Even those that require cash outlays larger than what your cash on hand can handle comfortably.

Imagine having access to the funds needed to not only run but also to grow your business, even during a recession. A business that can thrive and grow during hard economic times is the very definition of a recession-proof self-employed business. Building business credit makes that possible.

You Can Build Business Credit with a Recession-Proof Self-Employed Business

If you are caught in the recession rubble, consider it the perfect opportunity to make all your entrepreneurial dreams come true. If you want to build the best recession-proof business possible, these tips will help you. To get started, you simply have to separate your business from yourself. Once you have it established as a separate entity, you can get to work applying for tradelines that will report your payments to the credit agencies. From there, if you follow these steps, your business credit score will help you build your empire out of the rubble.

The post Caught in the Recession Rubble? Build Your Own Empire with a Recession-Proof Self-Employed Business appeared first on Credit Suite.

Beat any Recession: Build Business Credit in 30 Days

You, too, can beat any recession: build business credit in 30 days! Here’s how and why.

Building better business credit means that your small business gets chances you never felt that you would. You can get brand-new equipment, bid on buildings, and cover the company payroll. And you can do so even when times are a bit lean. This is specifically helpful in seasonal businesses. That is because you can go for calendar months with just hardly any sales.

Due to this, you need to tackle growing your company credit. Enhance and maintain your scores and you will have these chances. Do not, and either you do not get these business opportunities, or they will set you back you a lot more. And no business owner wants that.

You will need to understand what affects your small business credit before you can make it better.

Hit the jackpot and weather any recession with our best webinar and its trustworthy list of seven vendors who can help you build business credit.

Beat any Recession: Build Business Credit in 30 Days: Credit History Length Is Vital

This is in a nutshell how long your business has been making use of company credit. Obviously newer businesses will have short credit histories. While there is not too much you can specifically do about that, do not fret.

Credit reporting agencies will also look into your personal credit score and your very own background of payments. If your own personal credit is good, and in particular if you have a fairly extensive credit history, then your individual credit can come to the rescue of your company. That is, you did not just get your very first credit card not too long ago.

Obviously, the opposite is also true. Hence, if your private credit history is poor, then it will have a bearing on your business credit scores until your business and personal credit can be split.

Beat any Recession: Build Business Credit in 30 Days: Do not Let Your Credit Utilization Rate Harm Your Business

Your credit utilization rate just means the amount of cash you have on credit. So it is then divided by your total available credit. Lenders typically do not like to see this go above 30%. Therefore, for each $100 in credit, do not borrow on more than $30 of that.

If this percent is climbing, you’ll need to spend down. And work off your financial obligations prior to borrowing more.

Beat any Recession: Build Business Credit in 30 Days: Your Payment History Truly Matters

Late repayments will affect your company credit score for a good seven years. If you pay your business (and personal) debts off, as quickly as possible and as fully as possible, guess what happens? That is when you can make a very real difference when it relates to your credit scores.

Make sure to pay on schedule and you will reap the rewards of promptness.

Beat any Recession: Build Business Credit in 30 Days: Your Personal Credit Can Affect Your Business Credit

A bad business year could wind up on your personal credit score. And just in case your small business has not been around for too long, it will directly have an effect on your corporate credit.

Fortunately, you can unlink them both by taking steps to uncouple them. As an example, you can get credit cards solely for your business, or you open up business checking accounts and other bank accounts (or even get a business loan). And then the credit reporting bureaus will start to treat your private and corporate credit separately.

Also, make sure to incorporate. Or at least file a DBA (doing business as) status.

You can also pay for your company’s invoices with your business credit card or checking account. And make certain it is the company’s full name on the bill and not your own.

Hit the jackpot and weather any recession with our best webinar and its trustworthy list of seven vendors who can help you build business credit.

Beat any Recession: Build Business Credit in 30 Days: The Credit Reporting Bureaus Can Just Plain Get It Wrong

Just the same as each and every organization out there, credit reporting agencies just like Equifax and Experian are only as good as their data. If your firm’s name is similar to another’s, or your name is a lot like another company owner’s, there can potentially be some oversights.

So keep an eye on those reports, and your company report at Dun & Bradstreet, PAYDEX. Remain on top of these reports and challenge charges with records and crystal clear communications. Do not just allow them to stay wrong! You can fix this!

And while you’re at, it you should also be monitoring the credit reporting bureau which just handles personal and not company credit. So, that is TransUnion. If you do not know the way to pull a credit report, do not worry. It’s simple.

Beat any Recession: Build Business Credit in 30 Days: The Method

Business credit is credit in a small business’s name. It doesn’t attach to a business owner’s personal credit, not even if the owner is a sole proprietor and the solitary employee of the business.

Because of this, an entrepreneur’s business and personal credit scores can be very different.

The Benefits

Considering that company credit is separate from consumer, it helps to secure a small business owner’s personal assets, in the event of court action or business bankruptcy.

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

Another advantage is that even startup ventures can do this. Going to a bank for a business loan can be a recipe for disappointment. But building business credit, when done correctly, is a plan for success.

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

But for business credit, the scores actually merely depend on whether a company pays its debts punctually.

Business Credit in a Recession

This credit links to your EIN and not your SSN, and is readily available without a personal guarantee. It is readily available no matter individual credit.

Business credit establishing is an exceptional choice in an economic recession, as it isn’t based on how well the economy is doing. It additionally develops an asset which will retain worth so long as your scores stay high.

The Process

Building company credit is a process, and it does not occur automatically. A company needs to proactively work to develop business credit.

Nevertheless, it can be done easily and quickly, and it is much speedier than developing individual credit scores.

Merchants are a big aspect of this process.

Carrying out the steps out of order will result in repetitive rejections. Nobody can start at the top with business credit. For instance, you can’t start with store or cash credit from your bank. If you do you’ll get a rejection 100% of the time.

Company Legitimacy

A business needs to be reliable to lending institutions and vendors.

Therefore, a business will need a professional-looking web site and e-mail address. And it needs to have site hosting from a company such as GoDaddy.

In addition, business telephone and fax numbers ought to have a listing on ListYourself.com.

In addition, the business phone number should be toll-free (800 exchange or similar).

A company will also need a bank account dedicated only to it, and it needs to have every one of the licenses essential for running.

Licenses

These licenses all must be in the accurate, correct name of the company. And they need to have the same company address and phone numbers.

So bear in mind, that this means not just state licenses, but possibly also city licenses.

Working with the Internal Revenue Service

Visit the IRS website and get an EIN for the small business. They’re totally free. Pick a business entity like corporation, LLC, etc.

A company can begin as a sole proprietor. But they will more than likely want to switch to a sort of corporation or partnership.

This is in order to reduce risk. And it will make best use of tax benefits.

A business entity will matter when it comes to taxes and liability in case of litigation. A sole proprietorship means the business owner is it when it comes to liability and tax obligations. No one else is responsible.

Sole Proprietors Take Note

If you operate a company as a sole proprietor, then at the very least be sure to file for a DBA. This is ‘doing business as’ status.

If you do not, then your personal name is the same as the company name. As a result, you can find yourself being directly responsible for all small business financial obligations.

In addition, according to the IRS, with this arrangement there is a 1 in 7 chance of an IRS audit. There is a 1 in 50 chance for corporations! Avoid confusion and drastically reduce the odds of an IRS audit as well.

Beginning the Business Credit Reporting Process

Begin at the D&B website and get a totally free D-U-N-S number. A D-U-N-S number is how D&B gets a small business into their system, to produce a PAYDEX score. If there is no D-U-N-S number, then there is no record and no PAYDEX score.

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

By doing so, Experian and Equifax will have activity to report on.

Vendor Credit

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

And with an established business credit profile and score you can begin obtaining retail store and cash credit.

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

But first off, what is trade credit? These trade lines are credit issuers who will give you initial credit when you have none now. Terms are ordinarily Net 30, instead of revolving.

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

Details

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

To kick off your business credit profile properly, you need to get approval for vendor accounts that report to the business credit reporting bureaus. When that’s done, you can then make use of the credit.

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

Vendor Credit – It Helps

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

You want 3 of these to move onto the next step, which is retail credit.

Uline Shipping Supplies

Uline Shipping Supplies is a true starter vendor. You can find them online at www.uline.com. They offer shipping, packing, and industrial supplies, and they report to D&B and Experian.

You need to have a D-U-N-S number. They will request 2 references and a bank reference. The initial few orders might need to be paid in advance to initially get approval for Net 30 terms. Also, you may have to buy some things you don’t need.

Quill

Quill is an additional true starter vendor. You can find them online at www.quill.com. They sell office, packaging, and cleaning supplies, and they report to D&B.

Since Quill reports to two separate credit reporting bureaus, you get two credit experiences with them. Place an initial order first unless the D&B score is established.

Usually they will put you on a 90-day prepayment schedule. If you order items monthly for 3 months, they will typically approve you for a Net 30 Account.

Grainger Industrial Supply

Grainger Industrial Supply is also a true starter vendor. You can find them online at www.grainger.com. They sell safety equipment, plumbing supplies, and more, and they report to D&B. You will need a business license, EIN, and a D-U-N-S number.

For under a $1000 credit limit they will approve nearly any person with a business license.

Accounts That Don’t Report

Non-Reporting Trade Accounts can also be helpful. While you do want trade accounts to report to at the very least one of the CRAs, a trade account which does not report can nonetheless be of some value.

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

Retail Credit

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

Use the small business’s EIN on these credit applications.

Fleet Credit

Are there more accounts reporting? Then move to fleet credit. These are businesses like BP and Conoco. Use this credit to purchase fuel, and repair and maintain vehicles. Make certain to apply using the company’s EIN.

Hit the jackpot and weather any recession with our best webinar and its trustworthy list of seven vendors who can help you build business credit.

Cash Credit

Have you been responsibly handling the credit you’ve gotten up to this point? Then progress to more universal cash credit. These are businesses like Visa and MasterCard. Keep your SSN off these applications; use your EIN instead.

These are typically MasterCard credit cards. If you have more trade accounts reporting, then these are feasible.

Monitor Your Business Credit

Know what is happening with your credit. Make certain it is being reported and attend to any errors as soon as possible. Get in the practice of checking credit reports. Dig into the details, not just the scores.

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

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

Update Your Record

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

Fix Your Business Credit

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

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

Disputes

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

Fixing credit report inaccuracies also means you precisely spell out any charges you contest. Make your dispute letter as clear as possible. Be specific about the concerns with your report. Use certified mail so that you will have proof that you mailed in your dispute.

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

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

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

A Word about Business Credit Building

Always use credit sensibly! Don’t borrow more than what you can pay off. Monitor balances and deadlines for payments. Paying off on schedule and completely will do more to raise business credit scores than pretty much anything else.

Establishing company credit pays off. Great business credit scores help a company get loans. Your credit issuer knows the business can pay its debts. They understand the small business is bona fide.

The business’s EIN links to high scores and lenders won’t feel the need to ask for a personal guarantee.

Business credit is an asset which can help your business for years to come.

Beat any Recession: Build Business Credit in 30 Days: Takeaways

Once you learn what influences your company credit score, you can build business credit in 30 days.

Hit the jackpot and weather any recession with our best webinar and its trustworthy list of seven vendors who can help you build business credit.

The post Beat any Recession: Build Business Credit in 30 Days appeared first on Credit Suite.

Companies That Help Build Business Credit: What Should You Pay For, And What Should be Free

Regardless of whether you are an existing business or a startup, your business needs its own credit. The problem is, a lot of owners are unsure of how to start building business credit. There are companies that help build business credit, but if you aren’t careful you will get scammed. You should always know what you are paying for, and if it is worth it, or not.

Lenders are becoming more picky and there are more automatic denials than ever before. Working with an insider familiar with the system can help tremendously. It can help everything go faster and it can minimize denials. Your time is money – working with a company to help build business credit can be a wise investment. But there are things you should know.

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

Companies That Help Build Business Credit: Know What You Are Paying For

First and foremost, you should always know exactly what services you are paying for. The truth is, some “services” just aren’t worth it. For example, you should never pay a company to report your payments to the business credit reporting agencies. There are plenty that will do that for free. However, they do not usually advertise that they do that, nor do they typically make public which companies they report to. Paying someone to help you find these companies? That is worth paying for.

Companies that Help Build Business Credit: Why Separate Business Credit?

There are a few reasons why it’s a good idea for your business to have credit separate from your personal credit. First is protection. If your business goes south, it will not directly affect your personal credit. You can still buy a home and a car other things you need to based on your personal credit.

Also, business credit almost always has higher limits. If you try to finance a business on personal credit cards, you will likely stay at or even go over the credit limits on your cards. This will affect your debt-to-credit ratio in a bad way. That, in turn, will negatively impact your personal credit.

Companies That Help Build Business Credit: What NOT to Pay For

We’ve established why you should not pay anyone to have your on-time payments reported. While no company has to do that, there are plenty that will, and they do it for free. Here are some other things you should never pay for.

An EIN
A Credit Protection Number (CPN)
Correcting mistakes on your credit report
A peek at your personal credit score
A list of lenders from whom you may qualify for financing
Trade accounts

Companies that Help Build Business Credit: What Does it Take to Build Build Business Credit

The thing is, business credit doesn’t just happen in the same way that personal credit does. It has to be intentional, and there is a process to make it all come together. It is a complicated web, and before you can understand why certain things are worth paying for, you have to understand little about what it takes to build business credit and make it all work.

Of Business Credit and Fundability

Your business needs to be set up in just the right way to be fundable. I like to call this the foundation of fundability. If you do not have a fundable foundation, payments may be reported, but there will be no record of your business with the business credit reporting agencies so they will not know how to apply it. Here is what it takes to have a fundable foundation.

Separate Contact Information

The first step in setting up a foundation of fundability is to ensure your business has its own phone number, fax number, and address. That doesn’t mean you have to get a separate phone line, or even a separate location. In fact, you can still run your business from your home or on your computer if you want. You don’t even have to have a fax machine.

Actually, you can get a business phone number and fax number pretty easily that will work over the internet instead of phone lines. In addition, the phone number will forward to any phone you want it too so you can just use your personal cell phone or landline if you want. Whenever someone calls your business number it will ring straight to you.

Faxes can be sent to an online fax service. That is, if anyone ever happens to actually fax you. This part seems outdated. However, it does help your business appear legitimate to credit providers.

You can use a virtual office for a business address unless like Supply Works, the credit issuer does not accept a virtual address. Many do accept them though. How do you get a virtual office? It’s not what you may think. This is a business that offers a physical address for a fee, and sometimes they even offer mail service and live receptionist services. In addition, there are some that offer space for face to face meetings.

EIN

The next thing you need to do is get an EIN. It’s an identifying number for your business that works like your SSN works for you personally. You can get one for free from the IRS.

D-U-N-S Number

Dun & Bradstreet is the largest and most commonly used business credit reporting agency. Every credit file in their database has a D-U-N-S number. To get a D-U-N-S number, you have to apply for one through the D&B website.

Incorporation

Incorporating your business as an LLC, S-corp, or corporation is not negotiable. It lends credibility to your business as one that is legitimate, and also offers some protection from liability.

Which option you choose does not matter as much for getting a net 30 account with companies that help build business credit. What it does matter for is your budget and needs for liability protection. The best thing to do is talk to your attorney or a tax professional. Fair warning, you’ll lose the time in business that you already have once you incorporate. When you incorporate, you become a new entity. You basically have to start over. You’ll also lose any positive payment history you may have accumulated before you incorporate.

For this reason, you have to 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.

Business Bank Account

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

There’s more to it however. There are several types of funding you cannot get without a business bank account. Yu probably noticed that most of the companies above require one. 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.

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

Licenses

For a business to be legitimate it has to have all of the necessary licenses it needs to run. If it doesn’t, red flags are going to fly up all over the place. Do the research you need to do to ensure you have all of the licenses necessary to legitimately run your business at the federal, state, and local levels.

Website

I am sure you are wondering how a business website can affect your ability to get funding. These days, you don’t exist if you do not have a website. Yet, having a poorly put together website can be even worse. It is the first impression you make on many, and if it appears to be unprofessional it will not bode well for you with consumers or potential lenders.

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.

Here’s another reason why a website is important. Elsewhere on our blog, there is actually a comment about a company asking for a website to help make the decision to extend, or not extend, net30 terms.

You’ll notice many of these things are listed in the requirements of our list of companies that help build business credit. These are all things that you need for a variety of reasons, including to make your business more fundable.

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

Companies that Help Business Business Credit: What You Should Pay For

This is just the start. There are so many other factors that affect the fundability of your business and business credit that it can be completely overwhelming. This is why it can be very profitable in the long-term to pay a company to help you through the process. Most of the time they do not actually complete the steps for you, but they can help you get where you need to be and tell you what to do once you get there.

This is crucial. You don’t waste time with companies that don’t report, and you know what is reported is showing up in the right place. There is so much more though.

The lending world is changing fast since COVID-19 hit. Lending has been cut drastically, and more changes are happening everyday. Having someone who knows how to navigate the system and both current and future changes is priceless.

Companies that Help Build Business Credit: 6 Things You Should Definitely Pay For

Guiding you through the process of setting up your business to be fundable.

All of the things mentioned above are necessary, and many of them have to happen in the right order. If something gets out of whack, it can take even more time and money to fix it. Paying someone to help you get it right the first time, or help untangle a mess that is already there, is well worth it.

Helping you find accounts that report.

It’s more difficult than a simple Google search. You need to know which accounts will report that you are actually eligible for. Otherwise, you will spend a lot of time applying for accounts that you either cannot get, or that you can get but do not report.

Helping you apply for financing.

A lot of companies will just give you a list of lenders with products they hope you qualify for. You have to fill out the applications on your own. Why would you pay for that? What’s worth paying for is a company that has a list of lenders for whom they know the underwriting requreiments. Then, as you work through the credit building program, they cross-reference so they know exactly where you pre-qualify and fill out the applcaitons for those lenders for you! Now that’s worth paying for!

Guidance for analyzing fundability.

Fundability doesn’t stop with how your business is set up. In fact, the overall fundablity of your business actually begins before you ever have a business. This is because a lot of personal stuff can affect your ability to get funding. That’s true even if you have separate business credit.

Step-by-step guidance through the business credit building process.

Building business credit doesn’t just happen. Unlike consumer credit, you have to intentionally work to start and build it. Having a partner come alongside you and show what to do at each step is priceless.

Help navigating the lending system in this post COVID-19 economy.

Lenders are buckling down and there are more automatic denials than ever before. You are more likely to get an automatic denial rather than an automatic approval. Having someone familiar with the system, an insider if you will, can help tremendously.

Business credit monitoring.

Unlike consumer credit reports, there is no way to know what your business credit report says about you or what your score is without paying. You can pay the credit reporting agencies directly, but it works much better to pay a monitoring service that can help you keep up with your business credit on an ongoing basis. We can help you monitor your credit at Experian and Dun & Bradstreet for less than it would cost you at those business CRAs.

The bottom line is, paying companies that help build business credit can be useful. They have more time, knowledge, and experience. It can save you a lot of time and money in the long run, if you know and understand exactly what it is you are paying them to do.

Companies That Help Build Business Credit Are a Good Idea, Just Know What You Are Paying For

As you can see, it takes a little more work than just getting accounts reporting to build business credit. Your business has to be set up properly for the reporting to matter. Then, you have to keep a close eye on your business credit reports to ensure things are progressing.

It’s not a complicated process, but it takes time. The best thing to do is to set your business up to be fundable before you ever get started. Then, you should meet most of the requirements related licensure, business bank account, business address, and website. It can be extremely helpful to have guidance and help as you go through the process. Let us help you build business credit. Find out how.

The post Companies That Help Build Business Credit: What Should You Pay For, And What Should be Free appeared first on Credit Suite.

Beat any Recession: Build Business Credit in 30 Days

Beat any Recession: Build Business Credit in 30 Days You, too, can beat any recession: build business credit in 30 days! Here’s how and why. Building better business credit means that your small business gets chances you never felt that you would. You can get brand-new equipment, bid on buildings, and cover the company payroll. … Continue reading Beat any Recession: Build Business Credit in 30 Days

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Bad Credit Small Business Credit Cards in a Recession – This is Proven!

As the novel coronavirus changes our economy, there’s one thing you can count on – bad credit small business credit cards in a recession. Yes, they really exist – even in what is looking a lot like an inevitable recession.

Do You Have Bad Credit? Small Business Credit Cards Can Still Be in Your Reach, Even in a Recession

Bad Credit? Small business credit cards in a recession can still be yours, if you know where to look. Fortunately, we have done the research for you.

According to the SBA, company credit card limits are several times that of personal cards! This means you can get a lot more money with corporate credit. And it also means you can have personal charge cards at stores, and now have a second card at the same stores for your small business. And you will not have to put up collateral, cash flow, or financial information in order to get corporate credit.

Even with bad credit, you can still qualify for several of these cards.

Get a Bad Credit Small Business Credit Cards in a Recession with 0% Introductory APR – Pay Zero!

Blue Business® Plus Credit Card from American Express

Take a look at the Blue Business® Plus Credit Card from American Express. It has no annual fee. There is a 0% introductory APR for the initial year. After that, the APR is a variable 14.74 – 20.74%.

Get double Membership Rewards® points on day to day business purchases like office supplies or client dinners for the initial $50,000 spent annually. Get 1 point per dollar afterwards.

You will need great to outstanding credit scores to qualify.

Find it here: https://creditcard.americanexpress.com/d/bluebusinessplus-credit-card/

American Express® Blue Business Cash Card

Also have a look at the American Express® Blue Business Cash Card. Keep in mind: the American Express® Blue Business Cash Card is identical to the Blue Business® Plus Credit Card from American Express. Yet its rewards are in cash rather than points.

Get 2% cash back on all qualified purchases on up to $50,000 per calendar year. After that get 1%.

It has no annual fee. There is a 0% introductory APR for the first year. After that, the APR is a variable 14.74 – 20.74%.

You will need great to outstanding credit to qualify.

Find it here: https://creditcard.americanexpress.com/d/business-bluecash-credit-card/

Get a Remarkable Bad Credit Small Business Credit Cards in a Recession with No Annual Fee

No Yearly Fee/Flat Rate Cash Back

Ink Business Unlimited℠ Credit Card

Take a look at the Ink Business Unlimited℠ Credit Card. Beyond no yearly fee, get an introductory 0% APR for the first 12 months. After that, the APR is a variable 14.74 – 20.74%.

You can get unlimited 1.5% Cash Back rewards on every purchase made for your business. And get $500 bonus cash back after spending $3,000 in the first 3 months from account opening. You can redeem your rewards for cash back, gift cards, travel and more through Chase Ultimate Rewards®. You will need excellent credit scores to qualify for this card.

Find it here: https://creditcards.chase.com/business-credit-cards/ink/unlimited

Bad Credit Small Business Credit Cards in a Recession, Not Needing a Personal Guarantee

Brex Card for Startups

Check out the Brex Card for Startups. It has no annual fee.

You will not need to supply your Social Security number to apply. And you will not need to supply a personal guarantee. They will take your EIN.

Nonetheless, they do not accept every industry.

Likewise, there are some industries they will not work with, as well as others where they want more paperwork. For a list, go here: https://brex.com/legal/prohibited_activities/.

To determine creditworthiness, Brex checks a corporation’s cash balance, spending patterns, and investors.

You can get 7x points on rideshare. Get 4x on Brex Travel. Also, get triple points on restaurants. And get double points on recurring software payments. Get 1x points on everything else.

You can have bad credit (even a 300 FICO) to qualify.

Find it here: https://brex.com/lp/startups-higher-limits/

Check out how our reliable process will help your business get the best business credit cards, even during a recession.

Bad Credit Small Business Credit Cards in a Recessions for Luxurious Travel Points

Flat-rate Travel Rewards

Capital One® Spark® Miles for Business

Take a look at the Capital One® Spark® Miles for Business. It has an introductory annual fee of $0 for the first year, which after that rises to $95. The regular APR is 18.49%, variable due to the prime rate. There is no introductory annual percentage rate. Pay no transfer fees. Late fees go up to $39.

This card is great for travel if your expenditures don’t come under typical bonus categories. You can get unlimited double miles on all purchases, without limits. Earn 5x miles on rental cars and hotels if you book through Capital One Travel.

Get an introductory bonus of 50,000 miles. That’s the same as $500 in travel. But you only get it if you spend $4,500 in the initial 3 months from account opening. There is no foreign transaction fee. You will need a good to superb FICO rating to qualify.

Find it here: https://www.capitalone.com/small-business/credit-cards/spark-miles/

Bonus Travel Categories with a Sign-Up Offer

Ink Business Preferred℠ Credit Card

For a terrific sign-up offer and bonus categories, take a look at the Ink Business Preferred℠ Credit Card.

Pay a yearly fee of $95. Regular APR is 17.49 – 22.49%, variable. There is no introductory APR offer.

Get 100,000 bonus points after spending $15,000 in the first 3 months after account opening. This works out to $1,250 toward travel rewards if you redeem with Chase Ultimate Rewards.

Get 3 points per dollar of the first $150,000 you spend with this card. So this is for purchases on travel, shipping, internet, cable, and phone services. Plus it includes advertising purchases made with social media sites and search engines each account anniversary year.

You can get 25% more in travel redemption when you redeem for travel with Chase Ultimate Rewards. You will need a good to exceptional FICO score to qualify.

Find it here: https://creditcards.chase.com/business-credit-cards/ink/business-preferred

No Yearly Fee

Bank of America® Business Advantage Travel Rewards World MasterCard® credit card

For no annual fee while still getting travel rewards, have a look at this card from Bank of America. It has no annual fee and a 0% introductory APR for purchases during the initial nine billing cycles. Afterwards, its regular APR is 13.74 – 23.74% variable.

You can get 30,000 bonus points when you make at least $3,000 in net purchases. So this is within 90 days of your account opening. You can redeem these points for a $300 statement credit towards travel purchases.

Earn unlimited 1.5 points for each $1 you spend on all purchases, everywhere, every time. And this is despite how much you spend.

Also earn 3 points per every dollar spent when you book your travel (car, hotel, airline) through the Bank of America® Travel Center. There is no limit to the number of points you can earn and points don’t expire.

You will need excellent credit to get this one (as in, 700s or better).

Find it here: https://www.bankofamerica.com/smallbusiness/credit-cards/products/travel-rewards-business-credit-card/

Hotel Credit Card

Marriott Bonvoy Business™ American Express® Card

Check out the Marriott Bonvoy Business™ Card from American Express. It has an annual fee of $125. There is no introductory APR offer. The regular APR is a variable 17.24 – 26.24%. You will need great to outstanding credit to get this card.

Points

You can get 75,000 Marriott Bonvoy points after using your card to make purchases of $3,000 in the first three months. Get 6x the points for qualified purchases at participating Marriott Bonvoy hotels. You can get 4x the points at United States restaurants and gasoline stations. And you can get 4x the points on wireless telephone services bought directly from American providers and on American purchases for shipping.

Get double points on all other eligible purchases.

Rewards

Also, you get a free night every year after your card anniversary. And you can get another free night after you spend $60,000 on your card in a calendar year.

You get Marriott Bonvoy Silver Elite status with your Card. Also, spend $35,000 on eligible purchases in a calendar year and earn an upgrade to Marriott Bonvoy Gold Elite status through the end of the following calendar year.

Plus, each calendar year you can get credit for 15 nights towards the next level of Marriott Bonvoy Elite status.

Find it here: https://creditcard.americanexpress.com/d/bonvoy-business/

Secure Corporate Credit Cards for Fair Credit? Get Bad Credit Small Business Credit Cards in a Recession

Capital One® Spark® Classic for Business

Take a look at the Capital One® Spark® Classic for Business. It has no annual fee. There is no introductory APR offer. The regular APR is a variable 24.49%. You can get unlimited 1% cash back on every purchase for your company, without any minimum to redeem.

While this card is within reach if you have fair credit scores, beware of the APR. However if you can pay on time, and in full, then it’s a bargain.

Find it here: https://www.capitalone.com/small-business/credit-cards/spark-classic/

Check out how our reliable process will help your business get the best business credit cards, even during a recession.

Get Bad Credit Small Business Credit Cards in a Recession for Jackpot Rewards That Never Expire

Capital One® Spark® Cash Select for Business

Have a look at the Capital One® Spark® Cash Select for Business. It has no annual fee. You can get 1.5% cash back on every purchase. There is no limit on the cash back you can get. Also get a one-time $200 cash bonus when you spend $3,000 on purchases in the first 3 months. Rewards never expire.

Pay a 0% introductory APR for 9 months. Then pay 14.49% – 22.49% variable APR after that.

You will need good to exceptional credit scores to qualify.

Find it here: https://www.capitalone.com/small-business/credit-cards/spark-cash-select/

Get a Terrific Bad Credit Small Business Credit Cards in a Recession for Cash Back

Flat-Rate Rewards

Capital One ® Spark® Cash for Business

Check out the Capital One® Spark® Cash for Business. It has an introductory $0 yearly fee for the first year. Afterwards, this card costs $95 each year. There is no introductory APR deal. The regular APR is a variable 18.49%.

You can get a $500 one-time cash bonus after spending $4,000 in the initial three months from account opening. Get unlimited 2% cash back. Redeem any time without minimums.

You will need great to outstanding credit to qualify.

Find it here: https://www.capitalone.com/small-business/credit-cards/spark-cash/

Flat-Rate Rewards and No Annual Fee

Discover it® Business Card

Check out the Discover it® Business Card. It has no yearly fee. There is an introductory APR of 0% on purchases for twelve months. Then the regular APR is a variable 14.49 – 22.49%.

Get unlimited 1.5% cash back on all purchases, with no category restrictions or bonuses. They double the 1.5% Cashback Match™ at the end of the first year. There is no minimum spend requirement.

You can download transactions| conveniently to Quicken, QuickBooks, and Excel. Keep in mind: you will need great to superb credit scores to get this card.

https://www.discover.com/credit-cards/business/

Bonus Categories

Ink Business Cash℠ Credit Card

Take a look at the Ink Business Cash℠ Credit Card. It has no yearly fee. There is a 0% introductory APR for the first twelve months. After that, the APR is a variable 14.74 – 20.74%. You can get a $500 one-time cash bonus after spending $3,000 in the first 3 months from account opening.

You can get 5% cash back on the initial $25,000 spent in combined purchases at office supply stores and on net, cable, and phone services each account anniversary year.

Get 2% cash back on the first $25,000 spent in combined purchases at gas stations and restaurants each account anniversary year. Get 1% cash back on all other purchases. There is no limit to the amount you can earn.

You will need outstanding credit scores to qualify for this card.

Find it here: https://creditcards.chase.com/business-credit-cards/ink/cash?iCELL=61GF

Boosted Cash Back Categories

Bank of America® Business Advantage Cash Rewards MasterCard® credit card

Take a look at the Bank of America® Business Advantage Cash Rewards MasterCard® credit card. Get an 0% introductory APR for the initial 9 billing cycles of the account. After that, the APR is 13.74% – 23.74% variable. There is no yearly fee. You can get a $300 statement credit offer.

Get 3% cash back in the category of your choice. So these are filling stations (default), office supply stores, travel, TV/telecom & wireless, computer services or business consulting services. Get 2% cash back on dining. So this is for the first $50,000 in combined choice category/dining purchases each calendar year. Then earn 1% after, with no limits.

You will need exceptional credit scores to qualify.

Find it here: https://promo.bankofamerica.com/smallbusinesscards2/

Check out how our reliable process will help your business get the best business credit cards, even during a recession.

Flexible Financing Bad Credit Small Business Credit Cards in a Recession

The Plum Card® from American Express

Have a look at the Plum Card® from American Express. It has an initial yearly fee of $0 for the first year. After that, pay $250 per year.

Get a 1.5% early pay discount cash back bonus when you pay within 10 days. You can take up to 60 days to pay without interest when you pay the minimum due by the payment due date.

You will need excellent to excellent credit scores to qualify.

Find it here: https://creditcard.americanexpress.com/d/the-plum-card-business-charge-card/

The Perfect Bad Credit Small Business Credit Cards in a Recession for You

Your absolute best bad credit small business credit cards in a recession will hinge on your credit history and scores.

Only you can select which features you want and need. So make sure to do your homework. What is excellent for you could be catastrophic for others.

And, as always, make sure to develop credit in the recommended order for the best, speediest benefits. The COVID-19 situation will not last forever.

The post Bad Credit Small Business Credit Cards in a Recession – This is Proven! appeared first on Credit Suite.

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Beat the Economic Downturn With Credit Score Hacks Every Business Owner Should Know

It’s looking a lot like the novel coronavirus is leading to an economic downturn. But you can still hack a great business credit score. Here’s how.

Do You Know These Credit Score Hacks? They’re Even More Important in an Economic Downturn!

Economic downturn got you down? Beat the recession with these credit score hacks for every business owner.

Establishing business credit means that your firm acquires chances you never believed you would. You can get all-new equipment, bid on buildings, and cover the company payroll. And you can do so even when times are a bit lean. This is especially helpful in holiday firms, where you can go for months with simply negligible sales.

Because of this, you need to focus on building your company credit. Improve and maintain your scores and you will have these chances. Do not, and either you do not get these business opportunities, or they will set you back you a lot more. And no entrepreneur wants that. You need to understand what affects your company credit before you can make it better.

Recession Period Financing

The number of US banks and thrifts has been decreasing gradually for a quarter of a century. This is from consolidation in the marketplace along with deregulation in the 1990s, reducing barriers to interstate banking. See: https://www.fundera.com/blog/happened-americas-small-businesses-financial-crisis-six-years-start-crisis-look-back-10-charts

Assets focused in ever‐larger financial institutions is problematic for local business owners. Big banks are a lot less likely to make small loans. Economic recessions suggest financial institutions become extra mindful with lending. The good news is, business credit does not rely upon financial institutions.

Economic Downturn Credit Score Hacks: Your Payment History is Important

Late payments will impact your small business credit score for a good seven years. You will need to pay your business debts off, as fast as possible and as fully as possible. If you are able to do so, then you can make a very real difference when it concerns your credit scores. Make certain to pay without delay and you will enjoy the rewards of punctuality.

And pay your personal debts off as fast as possible. Pay them off in full if you can. Check Hack #3 for why this is so vital.

Your payment patterns and history are a driving force in your overall credit score. Over time, paying your bills on schedule will help establish your company as one that pays their financial obligations. This will undoubtedly help push your rating up and show other business you are a low risk.

If you pay attention to none of the other credit score hacks, you will still do well to practice this one.

Learn more here and get started toward building business credit attached to your company’s EIN and not your SSN. Get money even in a recession!

Economic Downturn Credit Score Hacks: Keep Your Debt-to-Income Ratio in Check

Credit utilization rate just means the amount of cash you have on credit which is then divided by your total available credit.

The more debt you have on your plate, the more invoices you have, as well as the less disposable income you have. If your total debt approaches or surpasses your income level, then you’re probably to be seen as high-risk.

Keep your debts in check and regularly pay them off to maintain a healthy balance between what you make and what you owe.

Lenders commonly do not wish to see this exceed 30%. So for every $100 in credit, do not borrow on more than $30 of that. If this percent is rising, you’ll need to spend down. And be sure to work off your financial obligations ahead of borrowing more.

Economic Downturn Credit Score Hacks: Your Personal Credit Can Have an Effect on Your Corporate Credit

Are you having a bad business year? Then it could end up on your consumer credit score. And in case your small business has not been in existence for too long, it will directly impact your corporate credit.

Nonetheless, you can unlink the two by taking measures to split up them. Open a separate bank account just for the business. And use your business credit cards for your business only. The same is true in reverse – don’t use your personal credit to pay business expenses.

Keep this up, and the credit reporting agencies will start to treat your personal and small business credit separately.

Also, make sure to incorporate. Or at least file a DBA (doing business as) status. You can also take care of your company’s invoices with your company credit card or checking account, and make certain it is the company’s full name on the bill and not your own.

Your own personal credit is fair game when it concerns your Intelliscore Plus rating. Running a company is hard work, yet don’t let your personal finances suffer. Make certain that you remain on top of your personal monthly expenses. Stay clear of unnecessary credit inquiries. And do not compromise your personal credit for business needs.

Economic Downturn Credit Score Hacks: Credit History Length Matters

This is in essence the length of time your firm has been using business credit. Of course newer businesses will have brief credit histories. While there is not a lot you can specifically do about that, do not fret.

Credit reporting bureaus will also take a look at your personal credit score and your own history of payments. If your own personal credit is excellent, and especially if you have a fairly lengthy credit history, then your individual credit can come to the rescue of your business. That is, you did not just get your first credit card recently.

Naturally the opposite is also right– if your personal credit history is poor, then it will impact your corporate credit scores until your company and consumer credit can be split.

Economic Downturn Credit Score Hacks: The Credit Reporting Bureaus Can Get it Wrong

Irrespective of what your credit score is, it is crucial that you continue to be thorough and examine your personal and business credit reports. This can help you discover possible issues and stay informed by yourself credit profile.

Just like as each and every organization out there, credit reporting agencies like Equifax and Experian are only as good as their files. If your business’s name is like another’s, or your name is a lot like another business owner’s, there can possibly be some mistakes.

So keep an eye on those reports, and your small business report at Dun & Bradstreet, PAYDEX. Stay on top of these reports and dispute charges with documentation and clear communications. Do not just allow them to stay wrong! You can correct this!

And while you’re at, it you should also be keeping track of the credit reporting bureau which exclusively handles personal and not business credit. So that is TransUnion. If you do not know exactly how to pull a credit report, do not worry. It is easy – just Google to find the links to the CRAs.

Learn more here and get started toward building business credit attached to your company’s EIN and not your SSN. Get money even in a recession!

Economic Downturn Credit Score Hacks: Use Your Credit

Keeping your financial obligations low remains sound advice. Still, opening and responsibly making the most of company credit accounts can help you broaden your available credit and enhance your credit score.

Economic Downturn Credit Score Hacks: Monitoring Your Business Credit For Less

Know what is happening with your credit. Make sure it is being reported and address any errors ASAP. Get in the practice of taking a look at credit reports. Dig into the specifics, not just the scores.

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

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

Update Your Record

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

Economic Downturn Credit Score Hacks: Fix Your Business Credit

So, what’s all this monitoring for? It’s to challenge any problems in your records. You can fix mistakes in your credit reports. But the CRAs often want you to dispute in a particular way.

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

Disputes

Disputing credit report inaccuracies usually means you send a paper letter with copies of any proof of payment with it. These are going to be documents like receipts and cancelled checks. Never mail the original copies. Always send copies and retain the original copies.

Fixing credit report mistakes also means you specifically detail any charges you contest. Make your dispute letter as clear as possible. Be specific about the concerns with your report. Use certified mail so that you will have proof that you mailed in your dispute.

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

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

And D&B wants you to dispute by phone. So their PAYDEX Customer Service contact number is here: www.dandb.com/glossary/paydex.

Learn more here and get started toward building business credit attached to your company’s EIN and not your SSN. Get money even in a recession!

Economic Downturn Credit Score Hacks: Takeaways

Hacks for your business credit score are really a fancy way of saying one thing. Be responsible. Pay your debts on time. Don’t put too much on credit. don’t neglect your personal credit. Keep your accounts open. Jump on any errors you find. Use your credit. Monitor what happens with it. Follow these suggestions and you will be well on your way to an excellent business credit score.

Beat the economic downturn! You can prosper, even now!

Once you know what impacts your small business credit score, you are that much nearer to building improved corporate credit. Learn more here and get started toward building business credit attached to your company’s EIN and not your SSN.

The COVID-19 situation is not going to last forever.

The post Beat the Economic Downturn With Credit Score Hacks Every Business Owner Should Know appeared first on Credit Suite.

5 Most Common Mistakes Business Owners Make in a Recession

Mistakes happen. When under pressure, even more mistakes happen. If business owners have ever been under pressure, it’s now. COVID-19 has thrown the economy for a loop, and business owners can’t makes heads or tails of it. Before you do anything else, take a look at the relief options available, including the Paycheck Protection Plan. Then, consider these common mistakes business owners make in a recession, and how to avoid them.

Avoid these Common Mistakes Business Owners Make in a Recession to Make it out of the Recession Twilight Zone

A recession can be a hugely stressful time. Not only can finances be in shambles, but the stress can take a toll on many other things as well. During a recession it can seem that all is lost, but avoiding these common mistakes business owners make in a recession could help. It certainly won’t hurt.

Imagine you wake up tomorrow in the twilight zone, and it lands you right in the middle of recession land. You may be feeling the effects of the recession even now. Here is what not to do if you want to survive. Avoid these mistakes, and your business could just make it out alive.

Common Mistakes Business Owners Make in a Recession: Moving Too Fast

While you definitely have to spend money to make money, it is necessary to be a little more careful during a recession. Spend money cautiously and only when the payoff is certain to avoid this and other common mistakes business owners make in a recession. That’s not to say that you can’t ever take a risk, but definitely don’t do it too quickly.

For example, if you have the opportunity to purchase inventory at a cut rate, it may seem the best idea is to purchase as much as you can. After all, if you sell it at the same price as before, you will still make a larger profit because the cost to you was less.

This is one of the common mistakes business owners make in a recession, because it makes sense when you are not in a recession. However, with people having less disposable income to spend, it is possible that that inventory will not move. Then, you are stuck with inventory you cannot sell, and a lot of it.

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The Better Option

Considering the financial hard times, take a minute to evaluate things. Why is there a cut rate on the inventory? Is the wholesale provider is having a hard time moving it? If that is the case, you may have the same problem. Pay attention to your customers and your current inventory. Do you see any downward trends?

There a few options here that may be more beneficial. First, consider not stocking up on the inventory at the reduced rate. Maybe buy a little more than normal, but focus instead on the option the reduced rate gives you to lower your own prices.

The better decision is to evaluate how the recession is affecting the industry and the markets around you. Then, make decisions about how much of the discount inventory to purchase based on that. From there, you can make a plan for how to make the most of the discount.

That may mean that you have a sale offering the cheaper inventory at a price below what your competitors are offering. Another option is to purchase enough to lower prices for the duration of the recession.

The only way to make these decisions however, is to have thorough market research. That may cost money as well, but it is a much better use of the funds than wasted inventory. It will take time, but the slowdown will definitely be worth it.

Common Mistakes Business Owners Make in a Recession: Failing to Plan

One of the most important parts of running a business is planning for the unexpected. This includes planning for a recession. That is one of the most common mistakes business owners make in a recession. They panic, and either forget their plan, or they realize they never had a plan.

The first way to avoid this mistake is, obviously, to make a plan. If you have a plan, now is the time to put it into action. Don’t panic. Take stock of your expenses and revenue. Adjust expenses accordingly as much as possible.

Keep a watch on the market to see how your particular industry is responding to the recession. Use what you learn to tweak your plan as necessary. The point is, if there is a plan, use it. If not, it’s never too late to avoid this one of the most common mistakes business owners make in a recession. Make a plan and put it into action.

Not Having Fail Safe

You always need a safety net. Unfortunately, one of the common mistakes business owners make in a recession is not realizing this until they are in the middle of a recession. Technically, that is the mistake made before the recession.

The “in recession” mistake is actually not trying to do something about it. If you catch the problem soon enough, you may be able to take action. What type of “fail safe” do you need?

Credit Card

A credit card that is open can help you float until you find a more permanent fix for whatever woes the recession is causing you.

Line of Credit

A line of credit works similar to a credit card in that it is a revolving line of credit, but it does not carry the same types of interest rates and terms that a credit card does.

Whether you get a credit card or a line of credit, it is important to remember to use it only to get you over a hump. It has to be paid back, and you need to be sure you can do that. These are tools that could be useful if you have customers that cannot pay invoices, or if you need to take advantage of a special deal like in the example above.

However, if you find you are continually using these “safety nets” to simply run the day to day operations of your business, you need to do more. You are going to have to find the leak and shore it up.

What if…?

There are a few other options if you have already waited too long. For example, you can consider factoring your invoices. This will allow you to access cash immediately, often without a credit check. Also, you do not have to worry about paying the money back, as your lender will collect the payments on the invoices directly.

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Be aware however, they will purchase them at a premium. You will not get the full value of the invoices, but if you need the cash fast, it may be worth it.

Another option is a merchant cash advance. If you accept credit card payments, a lender may advance you funds based on your average daily credit card sales. Then, they collect repayment from those future sales, typically daily.

Common Mistakes Business Owners Make in a Recession: Trying to Take on Too Much

It is easy during a recession to try to save money by cutting staff. While there may be a time for this, one common mistake business owners make in a recession is trying to save money by doing everything themselves.

That just is not always the answer. If you are trying to do the day to day operations as well as the bookkeeping, cleaning, advertising, and even purchasing yourself, you are going to burn out. Not only that, but things are going to start slipping through the cracks. Bills will be missed. Orders will not get entered. Invoices will not get sent.

These things are just as detrimental to a business as paying employees you cannot afford. What is the better option? The first thing is to not let go of a bunch of employees out of panic. Slowly and carefully evaluate each job. Do you have any positions that can be combined? If so, do you have employees capable of accomplishing the tasks of both positions?

Better Options

Is it possible to cut one position, split it between two others, and raise the pay of the other two but by less than what the cut position was making? No one likes to let go of good employees at all, but taking the time to evaluate all of the options is much better for everyone than a massive axing party.

Additionally, consider which jobs can be outsourced. Outsourcing can save money because you do not have the additional payroll costs that go along with an employee. Janitorial services, bookkeeping, and social media marketing can all lend themselves well to outsourcing depending on the situation.

Common Mistakes Business Owners Make in a Recession: Thinking You Can Do It All

Another of the common mistakes business owners make in a recession is not playing to their strengths. This is similar to taking on too much, but for different reasons. While it may seem like you are saving money by not paying someone else to do certain things, it can definitely cost money to do things that you are not good at.

We all have certain strengths, and not knowing yours can be a money drain. If you are not good with the books, don’t try to do them. A mistake in that area can be very costly. If you are not great at managing people, assign that task to a trusted employee. Know your strengths and your weaknesses, and delegate tasks accordingly.

Do not let the fact that you are operating in a recession cause you to try do work in areas where you are weak in an effort to save money. It won’t work, and during a recession it could cause even more damage than it would otherwise.

Cutting Prices Too Soon or Too Much

When things start to look scary, it is almost a reflex reaction to cut prices. The idea is that If you offer a better deal, more people will do business with you.

This isn’t always the case. If your products are not at a price the market supports, it might work. Otherwise, you may see an increase at first, but long term it isn’t going to be a good thing.

People are willing to pay for a quality product. If you are struggling, it is best to figure out what they are buying instead of what you have for them. It could be the demand just isn’t there.

In a recession it is quite likely that people just do not have the disposable income necessary to purchase your product or service. In fact, it is even more likely than not. The answer then is not necessarily as easy as a price cut.

A price cut could work, if you can maintain quality. A better option is to be flexible and figure out what they are able to spend money on. For example, if you specialize in premium quality boutique clothing, consider adding inventory that is not as expensive. Call it something that sounds catchy, like “economy boutique,” and you just may have something that will get you through the recession.

In the restaurant business, consider offering specials at reduced rates to make what you have a better deal for customer that they can better afford.

Forgetting How Much Quality Counts

Truly you get what you pay for, and a hugely common mistake business owners make in a recession is that they forget that. This rings true in all aspects of business from inventory to supplies, and even employees.

There is a fine line between saving money and sabotaging yourself. You cannot purchase lower quality inventory, charge the same, and expect that profit increase to hold. Word will spread. You can’t pay less than the competition and expect your employees to be top notch.

Keep in mind that for you and your customers, quality counts, always. You get what you pay for, and your customers expect to get what they pay for.

Common Mistakes Business Owners Make in a Recession: It’s Never too Late to Build Business Credit

If you don’t already have established business credit, that can go a long way toward helping your business through a recession as well. Incorporate your business and get an EIN from the IRS. Make sure your business has a different address and phone number from your own, and sign up for a DUNS number from Dun & Bradstreet.

Once these things are done, check into doing business with starter vendors. These vendors, such as Uline, Quill, and Grainger will offer invoices with net terms. They do this without checking your credit score, and they will report your payments to the business credit reporting agencies.

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In this way, you can begin to build business credit even during a recession. If you make your payments on time, you can continue to build it by applying for credit from the retail credit tier, the fleet credit tier, and the cash credit tier. Then, if you need funding to help get you through the recession, you will have it. It takes time, but it’s never too late to start.

Avoid these Common Mistakes Business Owners Make in a Recession and Keep Your Business Going Strong

Of course, there are no guarantees the recession won’t pull you under, but there are things you can do to make it less likely. If you are careful to not make these common mistakes business owners make in a recession, and pay attention to what is going on around you, your business just may have a fighting chance of making it out of the recession twilight zone intact.

The post 5 Most Common Mistakes Business Owners Make in a Recession appeared first on Credit Suite.

7 Steps to Building Business Credit and Establishing a Recession-Proof Self-Employed Business

1. Kick Your Business Out of the Nest

Incorporate

Get an EIN

Contact Information

Online Image

2. Keep Up with the Numbers

3.Apply for a D-U-N-S number

4. Get on Record

Establish Tradelines

Order Matters When Applying for Business Credit Cards

Ask Utilities to Report

5. Use the SBFE to Help You Build Business Credit When Self-Employed

How Does it Work?

How Can They Help You Build a Recession-Proof Self-Employed Business?

6. Keep An Eye on Things

7. Pay on Time

What Does Building Business Credit Have to Do with Building a Recession-Proof Self-Employed Business?

Protect Your Personal Credit

Access Funds to Build Your Business

You Can Build Business Credit with a Recession-Proof Self-Employed Business

Beat any Recession: Build Business Credit in 30 Days

Beat any Recession: Build Business Credit in 30 Days: Credit History Length Is Vital

Beat any Recession: Build Business Credit in 30 Days: Do not Let Your Credit Utilization Rate Harm Your Business

Beat any Recession: Build Business Credit in 30 Days: Your Payment History Truly Matters

Beat any Recession: Build Business Credit in 30 Days: Your Personal Credit Can Affect Your Business Credit

Beat any Recession: Build Business Credit in 30 Days: The Credit Reporting Bureaus Can Just Plain Get It Wrong

Beat any Recession: Build Business Credit in 30 Days: The Method

The Benefits

Business Credit in a Recession

The Process

Company Legitimacy

Licenses

Working with the Internal Revenue Service

Sole Proprietors Take Note

Beginning the Business Credit Reporting Process

Vendor Credit

Details

Vendor Credit – It Helps

Uline Shipping Supplies

Quill

Grainger Industrial Supply

Accounts That Don’t Report

Retail Credit

Fleet Credit

Cash Credit

Monitor Your Business Credit

Update Your Record

Fix Your Business Credit

Disputes

A Word about Business Credit Building

Beat any Recession: Build Business Credit in 30 Days: Takeaways

Companies That Help Build Business Credit: Know What You Are Paying For

Companies that Help Build Business Credit: Why Separate Business Credit?

Companies That Help Build Business Credit: What NOT to Pay For

Companies that Help Build Business Credit: What Does it Take to Build Build Business Credit

Of Business Credit and Fundability

Separate Contact Information

EIN

D-U-N-S Number

Incorporation

Business Bank Account

Licenses

Website

Companies that Help Business Business Credit: What You Should Pay For

Companies that Help Build Business Credit: 6 Things You Should Definitely Pay For

Guiding you through the process of setting up your business to be fundable.

Helping you find accounts that report.

Helping you apply for financing.

Guidance for analyzing fundability.

Step-by-step guidance through the business credit building process.

Help navigating the lending system in this post COVID-19 economy.

Business credit monitoring.

Companies That Help Build Business Credit Are a Good Idea, Just Know What You Are Paying For

Do You Have Bad Credit? Small Business Credit Cards Can Still Be in Your Reach, Even in a Recession

Get a Bad Credit Small Business Credit Cards in a Recession with 0% Introductory APR – Pay Zero!

Blue Business® Plus Credit Card from American Express

American Express® Blue Business Cash Card

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