Tag: Business

Start the New Year Off with a Bang: How to Start Business Credit in 2020

Every business needs strong business credit.  Make it a goal in this new year to learn how to start business credit, and how to keep it strong so you can grow your business into more than you ever imagined. 

Learn How to Start Business Credit, and How to Keep It Strong

The new year is full of promise.  We make resolutions, set goals, and determine to stick with it all, until  what was once a resolution becomes a habit. Then, a few weeks later in most cases, we are back to the way things were.  We are eating the same, slipping into old habits, and nothing is really any different. Sometimes though, one or two things stick.  

Learning how to start business credit really can be one of those things that sticks if you use or process and support system along the way.

In most cases, you can’t access the funding your business needs without credit.  As a business owner, you not only have to worry about your personal credit, but you also have to pay attention to the credit rating of your business.

Whether you are new to business ownership or you already run an established business, you need to know how to start business credit building.  It is vitally important to have separate credit for your business. 

Check out our best webinar with its trustworthy list of seven vendors to help you build business credit.

How to Start Business Credit in the New Year: Establish Your Business as a Fundable Entity Separate from Yourself

To do this, you need to establish your business as separate from yourself.  Even if you have stellar how to start business credit Credit Suitepersonal credit, you don’t want it messing with your business credit.  The reverse is true as well.

If something unfortunate happens on the personal credit side, you do not want your business to suffer.  On the flip side, if your business struggles and its credit suffers, you want your personal credit protected as much as possible.  

Business credit doesn’t build on its own however.. It takes some work to set things up right. It’s not  hard, but it does take some effort. 

The first step is to make sure your business has an address and phone number that is different from what you use personally.  You can use VoIP phone services and virtual business address options to keep from having to get a whole new phone line or buy a building if you are running your business from home.  

You Have to Incorporate

Next, you have to incorporate.  There are a few options.

  • C Corp

This is the most definitive separation, but it is also the most complicated and expensive.  Before choosing this option, be certain there are reasons other than starting business credit.  If it isn’t necessary for some other reason, there are other, less complicated, and less costly options. 

  • S Corp

 This option basically offers the same separation as the C Corp, but you pay taxes at the personal level.  This is in contrast to the C Corp model where you pay on both the personal level and corporate level resulting in double taxation.  It is also cheaper than incorporating as a C Corp. If it isn’t necessary to file as a C corp, this is a good alternative. 

  • LLC

Forming a Limited Liability Corporation results in less liability, thus the name, and offers enough separation to serve the purpose of starting business credit.  If you are not required to be a C Corp or S Corp, this is the easiest and most cost-effective way to create the separation of business and personal credit needed. 

Stop Using Your SSN to Apply for Business Credit

You may think you cannot do this.  After all, doesn’t every credit application ask for an SSN?  You need to apply for an EIN. Your SSN connects to you, personally, and it is pretty much a given that anything connected to it credit wise will end up on your personal credit reports.  

No matter what you do to separate your business, if you apply with your SSN it’s likely going to hit your personal credit report.

The process of applying for and EIN is easy.  The IRS has an online form, and as soon as they verify the information, you receive your number.  It typically happens almost immediately. 

You Need a D-U-N-S Number

Dun and Bradstreet (D&B) is the largest and most commonly used business credit reporting agency (CRA).  They issue a 9-digit DUNS number to each credit file. Application is easy and free, and once you have that number, you will be even closer to establishing credit for your business separate from your own. 

Check out our best webinar with its trustworthy list of seven vendors to help you build business credit.

Keep Expenses Separate

If you are using the same bank account for business and personal expenses, stop. For starting business credit, you need a separate business bank account.  Some vendors and credit cards want to see a dedicated business account with a minimum balance before approval. It will also help to have the expenses already separate come tax time.

How to Start Business Credit in the New Year: Establish Credit Lines with Vendors

There are two ways to go about this.  Typically, a combination of the two is the best bet for starting business credit quickly.  First, if you are already working with any vendors, ask them about opening a credit line. Since you already have a relationship with them, they may be more willing to do so without checking your credit.  If they agree, be sure the account is in your business name and lists your business information, not your personal information. Then, ask if they will report payments to the business credit reporting agencies. 

Either way, you will also need to start working with starter vendors.  This is a vital step in starting business credit. You cannot skip it. What are starter vendors?  These are vendors in the vendor credit tier that will offer net terms on invoices without checking credit.  Then, they will report those payments to the business CRAs. If you can get accounts with existing vendors also, you will build a strong credit score faster, but you still need to work with starter vendors. 

Sometimes utility companies are willing to report payments to credit agencies also.  You almost always have to ask though. The worst they can do is say no. If they do, you haven’t really lost anything.  If they say they will, starting business credit will only go faster. 

Talk to everyone, including telephone, electric, gas, and even internet.  Make sure they are in your company name with your company’s contact information first however. 

How to Start Business Credit in the New Year: Get Business Credit Card Accounts

Once you have your name, EIN, and separate contact information, you need to use it to apply for business credit cards.  This has to be done in order as well. The vendor credit tier is actually the bottom of 4 different credit tiers. The other three are made up of varying levels of business credit cards.  When starting business credit, after the vendor credit tier, you can step up to the retail credit tier. 

These are the cards that are issued by specific stores and can only be used at the stores that issue them.  For example, a card issued by Office Depot that can only be used for purchases from Office Depot would be in this tier.

Once you get enough cards in the retail credit tier, you can apply for cards in the fleet credit tier.  Those are the cards that can only be used for fuel and automobile maintenance and repairs. A couple of examples of companies that issue these types of cards are Fuelman and WEX.

After that comes the cash credit tier.  Those are the standard cards you can use anywhere for anything.  They typically have higher limits and lower interest rates. Once you qualify for these cards, all that is left is to keep your business credit strong.

How to Start Business Credit in the New Year: Maintain Your Business Credit

There is no point in starting business credit if you are not going to keep it going strong.  You have to make your payments on time and handle it responsibly. Planning plays a big role in this.  Do not overspend, and try not to use credit that you cannot pay back in a timely manner. You don’t have to pay it off all at once.  You need to make payments to build credit anyway, but be sure you can make the payments.

In addition to handling credit responsibly, you need to monitor your credit reports.  Even if you are just beginning to establish business credit, go ahead and get a copy of your business credit report. There may not be anything on there, but you need to know when changes are made.  This original report will give you a baseline.

Check out our best webinar with its trustworthy list of seven vendors to help you build business credit.

We can help you monitor your business credit for a fraction of what it costs with the credit reporting agencies.  Go here to find out more. 

What to do If you Find a Problem

Each CRA has a different process for dealing with problems on your report.  You will have to find out from each one what their process is for reporting mistakes.  However, the standard is that you mark the mistake on the report and send them a copy. Also, provide the correct information along with any back up documentation.  Documentation may include proof of payment such as receipts, copies of bank statements, proof of change of address, and more. Send it all certified mail, and always send copies of documentation, not originals.

Remember mistakes can include things other than payment information.  Make certain you clear off anything that should be on your personal credit report, and vice versa.  Keep an eye on information that may need to be updated as well, such as phone number and address.

Is it Too Late to Worry About How to Start Business Credit?

The short answer is, nope.  While the process of separating your business from yourself as the owner is definitely easiest handled in the original set up process, it can be done at any time.  If you are already up and running it will take you some extra time and expense to change any marking materials and directories that already list your personal contact information.  It can also take some time to go through the incorporation process. It’s worth it though.

How to Start Business Credit: A Word About Online Presence

While having an online presence doesn’t really affect your business credit score, a poor online presence, these days isn’t very conducive to success.  In fact, so many people head to the internet first these days, if you don’t have a website you might as well not even exist. The thing is, you need to have a professional website.  You don’t want something that is just thrown together. 

This isn’t just for your potential customers, but also for potential lenders.  You never know what type of research a lender may do other than pulling a credit report.  If they see a poorly executed website, it will look unprofessional. That will not bode well for your approval chances.  Be sure you have a business email with the same URL as the website also. You shouldn’t use your personal email address any more than your personal phone or mailing address. 

How to Start Business Credit in the New Year: Set Your Goals and Stick to Them

The best way to stick with it and keep working toward your goals is to have a solid support system.  That is exactly what CreditSuite is. We can help you with every step of the process from finding starter vendors that will get your business credit score rolling to monitoring your credit so you know where you stand.  Building business credit isn’t hard, but it is definitely a process that requires intentionality and dedication. Let this year be the year you take the plunge and gain access to all the business funding you need to successfully run and grow your business.   

The post Start the New Year Off with a Bang: How to Start Business Credit in 2020 appeared first on Credit Suite.

It is Necessary to Build Business Credit with EIN, Not SSN

In today’s world we all have a number.  Every number associated with us, whether it is intentional or not, identifies us.  We have a Social Security number. We have loan numbers. There are PIN numbers. Even our phone number and street number can identify us in some way.  Because of this, when we want to build separate credit for a business, we have to get that business its own number. That number is known as an Employer Identification Number, or EIN.  You have to build business credit with EIN, not SSN.

Make Sure Accounts Report to Business Credit, Not Personal Credit, by Learning to Build Business with EIN, Not SSN

Before you can build business credit at all, you have to know what it is, and why you need it.  Maybe your personal credit is sufficient to run your business and you don’t think you need business credit.  Let’s take a closer look. 

What is Business Credit?

Business credit is credit that applies only to your business and its payment history.  It does not take into account your personal payment history or personal credit. It is a credit score based on the merits of your business alone, in your business name.  

Why Do You Need Business Credit? 

Regardless of what your personal credit looks like, you need business credit if you own a business.  Of course, this is obvious if your personal credit isn’t great. You need strong business credit to get funding for your business. 

Check out our best webinar with its trustworthy list of seven vendors to help you build business credit.

What if your personal credit is great though?  Maybe you have already gotten some funding for your business based on personal credit, and you don’t see the big deal.  You didn’t need business credit to get that.  

The thing is, if you try to fund your business fully on the merits of your personal credit, your personal credit score will likely suffer even if you pay all your bills on time.  That’s because your personal credit score is affected by your debt-to-credit ratio. That is the amount of debt you have in relation to the amount of credit you have available. If you have $10,000 in credit available to you and a balance of $5,000, your debt-to-credit ratio is .5.  

The problem with running a business is that the expenses are much greater than personal expenses, by nature.  Personal credit accounts generally have lower limits than business accounts. This means that if you are trying to run a business on personal credit, your debt-to-credit ratio could stay high despite paying bills on time. That, in turn, will negatively affect your personal credit score. If you build business credit with EIN, you can avoid this issue and protect your personal credit score.

What You Need to Know About Reporting

To build separate credit for your business, two things have to happen.  First, your business has to be set up in a way that when you apply for credit for your business, those accounts report in your business name to business credit reporting agencies.  The way your business is set up also dictates whether those agencies recognize your business and record a score. If your business isn’t set up properly, those accounts will just report to your personal credit, even if you use the name of your business when you apply.

The next thing that has to happen is that you need to find accounts that will extend credit and report payments to the business CRAs without a credit check.  You need to be able to apply with only your business information, get approval, and have your payments reported. It is often difficult to get approval without a credit check. If they check your business credit initially, you will not have any.  That’s the goal right? You need to build business credit, but you typically need credit to get credit. We know a tip for how to get around this, and you have to build business credit with EIN to do it.  

How to Set Up Your Business to Build Business Credit with EIN

At the core, the only thing you really have to do to get an EIN is to apply for one here. It’s fast and free.  That’s not the whole story though when you want to build business credit with EIN. While the EIN is essential to building separate business credit, if you do not handle the other steps necessary, it will not do any good.  All the pieces of the puzzle have to be there for the picture to be complete. 

What are the other pieces of the puzzle necessary to build business credit with EIN?

Build Business Credit with EIN: Separate Contact Information

A business has to have its own contact information.  Sharing a phone number and address with the owner will not work when trying to build business credit. The owner’s phone number and address ties directly back to personal credit.  

It isn’t necessary to get a separate phone or even a location however.  You can use a VoIP business number that will ring to your regular number.  There are also virtual office services available that will give you a physical mailing address that you can use.  Many of these offer other services as well, such as live receptionist services and meeting spaces. 

Be sure to list your business contact information in the 411 directories.

Check out our best webinar with its trustworthy list of seven vendors to help you build business credit.

Build Business Credit with EIN: Incorporation

To build business credit with EIN, a business must formally incorporate.  It is the most sure-fire way to separate a business from its owner. Whether you choose to incorporate as a corporation, s-corp, or LLC will depend on a couple of things.

First, any of these options work to help build business credit with EIN.  However, they offer different levels of protection and cost. For example, organizing as a corporation will cost the most, but it offers the most liability protection.  An s-corp is a little less costly, but it also offers a little less protection. If you choose to become an LLC you will have the least liability protection but it also is the least expensive option.  Choose the one that fits your budget and liability protection needs the best.

Build Business Credit with EIN: Get a D-U-N-S Number

Dun & Bradstreet is the largest and most commonly used business credit CRA.  The problem is, if accounts are reporting your payments to D&B and you do not have a D-U-N-S number, it will not do any good.  You have to have this number to have a credit file with Dun & Bradstreet. 

Build Business Credit with EIN: Open a Business Bank Account

This is huge for a number of reasons.  First, those accounts that will offer credit without a credit check often want to see a dedicated business bank account with a minimum balance.  Second, it helps keep business and personal expenses separate for tax purposes. 

Be sure to use your EIN and business contact information when you open the account.

Build Business Credit With EIN: Get Accounts Reporting

Once you have an EIN and you have taken the other steps necessary to set up your business as separate from you as the owner, it is time to get accounts reporting to the business credit agencies.  This is where the EIN gets put to good use.  

There are certain vendors, called starter vendors, that will extend net 30 terms without a credit check.  They will also report those payments to the business CRAs. The trick is, you need to set up accounts with them using your business information, including using your EIN and not your SSN.  If you put your SSN on there things could get confused and the payments may report to personal credit rather than business credit. 

We call this the vendor credit tier.  Go here to find out more about the credit tiers and starter vendors. 

Check out our best webinar with its trustworthy list of seven vendors to help you build business credit.

Build Business Credit with EIN: A Word About Credit Cards

After you work through the business credit tier, it will be time to apply for business credit cards in the other tiers.  You can find out more about the process and the other credit tiers here. However, you may need to use your SSN for this anyway. Mostly it’s for identification purposes, but sometimes they want to check personal credit as well.  This is because most credit cards require a personal guarantee even for business cards. That doesn’t mean that those accounts will end up on your personal credit report, but until your business credit is strong enough from working the process, your personal credit could affect approval.

There are a few cards, however, that do not require a personal guarantee.  

Business Cards That Do Not Require a Personal Guarantee 

Brex Corporate Card

This card is a stand out.  It isn’t connected to a specific retailer so it is much more flexible than other business credit cards that do not require a personal guarantee.  In addition, you can earn rewards! Specifically, you can earn one point per dollar on purchases. You can also get credits and discounts on certain services . 

One condition is that you have to pay the balance in full each month.  It isn’t revolving credit in the traditional sense. You cannot carry a balance. 

Even though they do not require a personal guarantee, Brex knows exactly what it is looking for in a cardholder. They want innovative businesses that use modern technology. In addition, they want to see a healthy business specific bank account.  It is best if it maintains a balance of $100,000 or more.  

The Brex Corporate Card has no annual fee.  It also offers other reward levels based on the type of spending, in addition to the 1 point per dollar spent on regular purchases.  These include: 

  • 7x points on taxis and ridesharing services
  • 4x points on flights, AirBnbs, and hotels when you book with Brex
  • 2x points on software purchases that are recurring

There is an introductory offer of 30,000 bonus points and card fees waived for life after approval. Other perks include credit for ZenDesk and Amazon Web Services.  There are discounts on WeWork and Salesforce also.

In addition to a business bank account with $100,000 balance, they also want you to have an EIN.

Bremer Bank Visa Signature Business Company Card

The Bremer Bank Visa Signature Business Company Card is an actual business credit card that has no personal guarantee.  It also has high income requirements and still prefers to work with medium to large businesses.  If you are able to get one, you will enjoy no annual fee and a rewards program. 

To qualify, you must have at least $1,000,000 in annual revenue and $350,000 in net annual income for the previous two years. 

Shell Small Business Card

The Shell Small Business Card is only good at Shell gas stations, and it offers no rewards.  The best thing about it other than it being one of the few business credit cards that does not require a personal guarantee, is that it can be a nice tool for employees on the road a lot.  It offers options such as purchase limits and specific station limitations.  Also, it can be a convenient tool for companies with employees who are always on the road. There is no annual fee, but cardholders have to be associated with a government entity, nonprofit, or earn at least $1 million annually for the past 3 years. 

Sam’s Club Business Mastercard

Surprisingly, the Sam’s Club Business Mastercard is one of the more flexible options for business credit cards that do not require personal guarantee.  You are not limited to using it only at Sam’s Club. In fact, you can use it anywhere they accept Mastercard.  It also offers great rewards on gas, dining, and travel.  

There is no annual fee, but you do have to have a Sam’s Club membership.  Currently, you get a $20 statement credit if you spend $50 or more at Sam’s Club the same day you open the card.  Rewards include 5% cash back on gas up to $6,000 in a year. After that, you get 1%. There is also a 3% cash back on dining and travel rewards, and 1% on all other purchases.  

To get this card, the business must make $5 million or more per year.  It also must be in operation for at least 2 years and have more than 10 employees for there to be no personal guarantee requirement. 

Office Depot OfficeMax Business Credit Account

Similar to the Shell card mentioned above, the Office Depot OfficeMax Business Credit Account is not known for its flexibility.  It is only good at Office Depot stores, officedepot.com, and OfficeMax.  They do not offer rewards, but there is an introductory bonus. If you spend at least $150 in the first 60 days after opening the account you get a $50 statement credit.  

It is Possible to Build Business Credit With EIN, You Just Have to Know Where to Start

build biz credit with EIN Credit Suite

You have to use your EIN, not your SSN, to build business credit.  You cannot have separate business credit if you keep applying for credit with your SSN.  Your business has to have its own identifying number. That’s the EIN. While this is the only step necessary to build separate credit, it is a necessary step.  Without and EIN, the other steps will make no difference at all. 

After you have your EIN and your business set up as a separate, fundable entity, look for those starter vendors that will issue credit and report payments to build your score. 

 

The post It is Necessary to Build Business Credit with EIN, Not SSN appeared first on Credit Suite.

Local Business Credit Cards

Local Business Credit Cards A great deal of individuals connect charge card with simply individual bank card which a specific posses as well as utilizes for buying and so on. There is one more classification of credit rating cards as well as that is called little organisation credit scores cards. As recommended by the name …

Additional Minority Owned Business Funding Sources are Available if You Know Where to Look 

The United States is known as the melting pot for a reason.  It is full of people with roots stretching worldwide. Some countries are less represented than others however.  This means we have a lot of citizens in minority groups. In some areas of the country, the entire population is part of a minority group.   In 2016, there were 8 million minority owned businesses.  This was up 38% from 2007 data.  If you have a minority owned business, then you have some additional funding options. 

Additional Funding Options for Your Minority Owned Business

These options come in the form of loans and grants for minority owned business.  You need to know where to look. You also need to know eligibility requirements. This will help you prepare your application.  A great application will help to improve your chance of winning a grant or loan approval. 

Check out our professional research on bank ratings, the little-known reason why you will – or won’t – get a bank loan for your business. 

Minority Owned Business Grants

minority owned business Credit Suite

Grants are basically free money. You never have to pay it back.  However, they are also highly competitive. In addition, they are rarely enough to completely fund a business.  Still, grant money can reduce the need to borrow money.  

Here are some minority grant options to consider.  There are certainly others out there though. They are not always well advertised.  This means you need to be sure to do your own research as well. 

First Nations Development Institute Grants

This group has a mission to offer grants to help Alaska Natives, Native Hawaiians, and Native Americans.  In addition to the funds, they offer assistance in the application process.

There is a wide range of opportunities from the First Nations Development Institute, with new ones rolling on as old ones roll off. Join the mailing list to be notified of new opportunities as they are posted.

National Black MBA Association Scale-Up Pitch Challenge

Also known as NBMBAA, their Scale-Up Pitch Challenge offers prizes in cash ranging from $1,000 to $50,000.  The purpose of the association is to help newer businesses that have an African founder that maintains equal ownership.  

A business must be an NBMBAA member to compete.  There is a $10 monthly membership fee. Then, there is an online application.   If chosen, a business must submit a three-minute pitch. Finalists will go on to compete at the NBMBAA annual conference.”

FedEx Small Business Grant

This grant is the FedEx way of working to strengthen small business innovation.  The company awards 10 grants. They range from $15,000 to $50,000 every year. If you’re a minority owned business owner with a cutting-edge product, this could be the grant for you.

You have to submit entry via the FedEx website. It requires that you answer a few questions about your business.  This includes providing an elevator pitch about what makes your business stand out.  In addition, you have to explain how you would use the grant funds. You can also submit an optional 90 second video.

NASE Growth Grants

The National Association for the Self-Employed (NASE) has small business Growth Grants that range up to $4,000. Grant recipients must be micro-businesses. Proceeds can be used to help your business market, advertise, expand, and hire employees. These grants are open to everyone.  However, you do have to be a NASE member to apply. Cost of membership depends on the member level you choose.

USDA Value Added Producer Grant

The USDA’s Value Added Producer Grant (VAPG) program offers grants for small businesses.  This includes minority owned business. Grants range up to $250,000. They are specifically to help agricultural producers with activities that add value to their products. Grants are open to those in rural areas.  They must be operating as cooperatives, farmers, ranchers, independent agricultural producers, or agricultural producer groups. 

Minority Owned Business Resources

These resources do not offer grants or any type of funding directly.  Still, they can be a great help and support in finding funding. They can also help with other issues that come with being a minority business owner. 

Check out our professional research on bank ratings, the little-known reason why you will – or won’t – get a bank loan for your business. 

Minority Business Development Agency (MBDA)

This agency is under the direction of the United States Department of Commerce.  It helps minority business owners and minorities that want to become business owners. They have business centers all around the country.  They offer help finding grants that could be a good fit. In addition, they offer help with the application process. 

USA.gov

While not minority specific, this website offers a list of government resources.  This includes resources for any minority owned business. It also provides links to many federal government agencies that offer loans and grants for minority small business. 

Grants.Gov

This is another resource to help find grants for your minority owned business.  In addition to a list of grant opportunities, it has information that can help you create a winning grant application package. 

There are over 1,000 grants to dig through.  Most of them are for research and development purposes.  You should still take the time to look at them, as you may find one that will work well for your business. 

Loans for Minority Owned Business

Loans for minority business owners can come from several different sources.   Some only offer minority business loans to those in certain cities. Some are only available if you are looking to land government contracts.  Each have their own requirements. It takes a lot of research to line everything out and see what is available. We have a list of some of the best options to help you get started. 

Business Consortium Fund, Inc.

This program is through the US Department of the Treasury.  Typically, businesses can qualify for $75,000 to $500,000 after approval.  Amounts above $500,000 are possible. However, they are on a case by case basis only.  

Businesses can use funds for working capital, equipment financing, and contract financing. To apply, you have to certify your business through The National Minority Supplier Development Council. In addition, a business must have a supplier relationship with the Council to be eligible. 

National African American Small Business Loans

These loans are only available in Chicago, Los Angeles, and New York.  They go to communities with low to medium incomes. The NASBLF  provides capital to African American owned businesses that are not eligible for traditional financing options.  

The range for loans is $35,000 to $250,000. Borrowers can use funds to help with cash flow, expansion, and equipment purchases. Thirty million dollars total are available each year.  

Accion

Accion offers loans in all states for minority owned business.  They also serve veterans, women, and those with disabilities.  Low to medium income business owners may also be eligible. Loan amounts range from $200,000 to $300,000. They work to help build businesses from square one.  They can also put owners in contact with other banks, non-profits, and government resources to help build a network of support.

The minimum credit score for these loans is 575.  In addition, you cannot be 30 days late on credit cards, loan payments, or bills.  Late rent or mortgage payments over the past year will also disqualify you.

Community Development Financial Institutions Fund 

CDFI lends to communities that typically lack banking options.  This includes minorities. Since the Community Reinvestment Act of 1977, banks must offer funding in communities that find it hard to get traditional funding.  Big banks often fund minority business owners indirectly through their CDFI partners.  

To locate a CDFI, contact the local business development center.  Your local Small Business Development Center office should also be able to help.  

The application process can be long.  Thankfully, they do offer assistance to prepare for future bank loans as well.  

Union Bank Business Diversity Lending Program

This program from Union Bank assists minority business owners with loans and lines of credit. To qualify as a minority for the program, you must be Latinx, American Indian, Asian, Alaskan Native, African American, Native Hawaiian, or other Pacific Islander.   

Other requirements must be met as well.  For example, you must be in business for at least 2 years, and the minority business owner must own at least 51 percent. 

Indian Affairs

Native American business owners can get loans from the federal government.  These come through the Indian Affairs branch. You apply with any lending institution.  You just have to use the Indian Affairs application.  If the funds are for construction, renovation, or refinancing, there will be additional requirements.  Generally, a list of collateral, a credit report, and an analysis of business operations are necessary.

Camino Financial 

Camino is an online lender that offers minority business owners loans and business solutions.  All processes take place online, making it an easy option. Their microloans range from $5,000 to $50,000.  They also offer small business loans between $10,000 to $400,000. There is no collateral requirement. As a benefit, you can pay off the loan any time with no penalties or fees. 

Check out our professional research on bank ratings, the little-known reason why you will – or won’t – get a bank loan for your business. 

SBA Options for Minority Owned Business

In addition to these options, the Small Business Administration has some programs that may work well, though they are not for minorities only.

SBA Community Advantage Loans

Community advantage loans are for underserved communities that need less than $250,000.  Likewise, you can find lenders that work with the SBA on this program using the SBA Lender Match tool. 

SBA Microloans

They also have microloans available of up to $50,000.  Unlike others, these are offered through nonprofit organizations. With interest rates ranging from 8% to 13% and maximum repayment terms of six years, they can work well for minority business owners.

One of the SBA’s partners in this program is The Opportunity Fund.   According to them, 90% of its borrowers are minority business owners. 

SBA 7 (a) Loans

Like other SBA programs, these are not specifically for minorities.  Still, they are available to minorities the same as everyone else. They are 10-year loans of $30,000 to $350,000.  Rates range from 9.7% to 11.04%, and they can turn around in as little as 7 days. More often they take up to several weeks. 

Private Lender Options for Minority Owned Business

Again, these are not necessarily only for minorities.  However, many alternative lenders offer loans that work well.  Specifically, minority owned businesses sometimes struggle with meeting credit score requirements.  The following loans are available with a lower credit score than what most traditional lenders require. 

Fundbox

Surprisingly, there is no minimum credit score.  In fact, if you have at least $50,000 in annual revenue you can qualify for a line of credit from Fundbox.  Additionally, you also need to be in business for at least 3 months.  Amounts range from $1,000 to $100,000 with rates from 10.1% to 79.8%. Terms are for 12 weeks, and you can have your funds as quickly as the next business day.  

Kabbage

Another lender that will make loans on credit scores as low as 500 is Kabbage.  Terms are for 6, 12, or 18 months and amounts range from $2,000 to $250,000.  So interest rates are higher, at 24% to 99%. Funding can take several days, but sometimes happens in just a few minutes. 

QuarterSpot

QuarterSpot is another option.  Many prefer it, due to terms that go up to 18 months.  Loans range from $5,000 to $250,000, but rates are pretty high at 30% to 70%.  Nevertheless, approval can happen in as little as 24 hours. 

Credibility Capital

Loans with Credibility Capital range from $50,000 to $400,000.  Terms are for 1, 2, or 3 years, and rates range from 10% to 25%.  So like most, funding usually takes around 7 days.  

SmartBiz

SmartBiz offers low cost financing for expansion.  Unlike the others, these are SBA loans. However, with SmartBiz funding happens a lot faster than with traditional banks.  In fact, they can take a few weeks rather than a few months. 

A Minority Owned Business Has Additional Funding Options Available

It’s true.  In addition to the traditional options, there are other funding resources available to help minority business owners. While many of them, like grants, will not fully fund a business, they can all reduce the need for debt. The key is knowing where to find them and how to qualify.  The list above is a great starting point, but there is so much more. It’s worth the time it takes to dig in and see what is available. 

The post Additional Minority Owned Business Funding Sources are Available if You Know Where to Look  appeared first on Credit Suite.

Get Bad Credit Business Credit Cards

Need bad credit business credit cards but don’t know where to turn? We’ve got you covered.

The Absolute Best Bad Credit Business Credit Cards

We researched a ton of bad credit business credit cards for you. So, here are our choices.

Per the SBA, business credit card limits are a whopping 10 – 100 times that of consumer cards!

This shows you can get a lot more cash with business credit. And it also means you can have personal credit cards at retailers. So, you would now have an added card at the same retailers for your business.

And you will not need collateral, cash flow, or financials to get company credit.

Bad Credit Business Credit Cards: Benefits

Perks can differ. So, make certain to choose the benefit you would prefer from this variety of options.

Secure Bad Credit Business Credit Cards for Average Credit

Capital One® Spark® Classic for Business 

For fair credit, we like the Capital One Spark Classic for Business. It has no yearly fee. There are cash-back rewards. The card earns an unlimited 1% cash back on all purchases. There is an annual fee of $0.

With this card, you will get benefits including an auto rental collision damage waiver, and purchase security. And you also get extended warranty coverage. And you get travel and emergency assistance services.

But BEAR IN MIND: the ongoing APR is 24.74% variable APR. And the penalty APR is even higher, 31.15%. Also, there is no sign-up bonus.

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

Credit Builder Bad Credit Business Credit Cards – Make Your Credit Surge!

Discover it® Student Cash Back

Make sure to look at the Discover it® Student Cash Back card. It has no annual fee. The card also offers a six-month introductory period of 0% APR on purchases. And there is an APR of 14.99 – 23.99% variable on all purchases after that period.

One one-of-a-kind feature is that it provides an incentive for students to maintain good grades with a $20 statement credit. If scholars earn a GPA of 3.0 or better each school year, the card will award the $20 statement credit each year for up to five years.

Details

Use this card to build personal credit. While this is a personal credit card versus a business credit card, for new credit users, their FICO scores will be important. And this card provides an outstanding way to raise FICO while also getting rewards.

You can get 5% cash back at different places each quarter like grocery stores, gas stations, restaurants or Amazon.com up to the quarterly maximum. After that, this card offers unlimited 1% cash back on all purchases.

In the first year, all cash back rewards are matched 100%.

Downsides include a cash advance fee of either $10 or 5% of the amount of each cash advance, whichever is more. And even though they waive the first late payment fee, a fee of up to $37 applies on all other late payments. There is also a returned payment fee of up to $37.

Get it here: https://www.discover.com/credit-cards/cash-back/it-card.html 

Reliable Low APR/Balance Transfers Bad Credit Business Credit Cards

Discover it® Cash Back

Check out the Discover it® Cash Back card. There is a 10.99% introductory APR for six months from date of first transfer. So, this is for transfers under this offer which post to your account by January 10, 2019.

After the introductory APR expires, your APR will be 14.99% to 23.99%. So, this is based on your creditworthiness. Your APR will vary with the market, which is based on the Prime Rate.

Details

You can get 5% cash back at different places each quarter. So, these are places like gas stations, grocery stores, restaurants, Amazon.com, or wholesale clubs. But this is up to the quarterly maximum each time you activate. Plus, automatically get unlimited 1% cash back on all other purchases.

You will get an unlimited dollar-for-dollar match of all the cash back you have gotten at the end of your first year, automatically.

Get it here: https://www.discover.com/credit-cards/cash-back/it-card.html 

https://creditsuite.wistia.com/medias/uuuwo1uzgy 

Ironclad Secured Bad Credit Business Credit Cards

Wells Fargo Business Secured Credit Card

Have a look at the Wells Fargo Business Secured Credit Card. It charges a $25 annual fee per credit card (up to 10 employee cards). It also requires a minimum security deposit of $500 (up to $25,000) and it is meant to help cardholders establish or rebuild their credit.

Choose this credit card if you want to get 1.5% per dollar in purchases with no limits or get one point for every dollar in purchases. You also get 1,000 bonus points for every month your company makes $1,000 in purchases on the card.

Details

Also, you get free FICO scores every month. There are no foreign transaction fees. It is possible to upgrade to unsecured credit. Your account is regularly reviewed. And you may become eligible for an upgrade to an unsecured card with responsible use over time. Approval is not guaranteed and depends on factors including how you manage this and your other accounts.

APR is the current prime rate plus 11.90%. There is no introductory APR period and no sign-up bonus. This is not a credit card for balance transfers.

Get it here: https://www.wellsfargo.com/biz/business-credit/credit-cards/secured-card/ 

Bad Credit Business Credit Cards with 0% APR – Pay Zero!

Bank of America® Business Advantage Travel Rewards World Mastercard® Credit Card 

The Bank of America® Business Advantage Travel Rewards World Mastercard® credit card has no annual fee and comes with a 0% introductory APR on purchases for the first nine months. Afterwards, the card has a 13.24 – 23.24% variable APR

Earn 3 points/dollar spent when you book travel through the Bank of America Travel Center and 1.5 points/dollar on all other purchases. You can get unlimited points and points will never expire.

Details

There is a 25,000-point sign-up bonus when you spend $1,000 in the initial 60 days of starting the account. Cardholders get travel accident insurance, and lost luggage reimbursement. 

They also get trip cancellation coverage, trip delay reimbursement and other benefits.

There is no introductory rate for balance transfers. Also, bonus categories are limited.

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

JetBlue Plus Card

Consider the JetBlue Plus Card for yet another offer of a 0% introductory APR

Get six points/dollar on JetBlue purchases, two points/dollar at eateries and grocery stores. And get one point/dollar on all other purchases. 

Details

Spend $1,000 in the first 90 days and pay the annual fee. So, then you can earn 40,000 bonus points. New cardholders receive a 12 month, 0% introductory APR on balance transfers made within 45 days of account opening.

Afterwards, the variable APR on purchases and balance transfers is 17.99%, 21.99% or 26.99%, based on creditworthiness. Benefits include a free first checked bag and 50% savings on in-flight purchases.

There is a $99 annual fee for this card.

Get it here: https://cards.barclaycardus.com/cards/jetblue-card/  

Bad Credit Business Credit Cards Credit Suite

Establish business credit fast with our research-backed guide to 12 business credit cards and lines.

Outstanding Bad Credit Business Credit Cards with No Annual Fee 

Uber Visa Card 

Check out the Uber Visa Card. Uber is the first ride-sharing service to offer a credit card, in a partnership with Visa and Barclays.

The card provides 4% back per dollar spent at restaurants, takeout and bars, including UberEATS. Also, earn 3% back on hotel, airfare and vacation home rentals. And earn 2% back on online purchases. 

So, this includes retailers and subscription services such as Uber and Netflix. And get 1% back on all other purchases. Each percent/point has a value of 1 cent. Redeem points for cash back, gift cards or Uber credits directly in the app.

By spending at least $500 in the initial 90 days, users can earn a $100 sign-up bonus. Cardholders spending a minimum of $5,000 yearly are eligible to receive a $50 credit toward online subscription services. 

Details

If you pay your cell phone bill with this card, you are insured up to $600 for cellphone damage or theft.

Cardholders are eligible for exclusive access to specific events and offers. Uber expects most of these offers will be available in major cities like New York, San Francisco, Los Angeles, Chicago and DC. There is no foreign transaction fee.

But there is no introductory rate. So the APR is a variable 16.99%, 22.74% or 25.74%, based on your creditworthiness. Cardholders with less than stellar credit will be on the higher end of the range. 

Also, there are restrictions on Uber credits. To redeem points as credits in the Uber app, accumulate a minimum of 500 points, or $5. Cardholders can convert a maximum of 50,000 points, or $500, per day.

Get it here: https://www.uber.com/c/uber-credit-card/ 

Costco Anywhere Visa® Business Card by Citi 

Not taking Uber? Then you’ll need to fill your gas tank someway. Why not do so with the Costco Anywhere Visa® Business Card by Citi?

This credit card earns cash back with every purchase. Get 4% cash back on the first $7,000 spent on eligible gas purchases annually (1% after that). Earn 3% cash back at restaurants and on eligible travel purchases. Also, earn 2% cash back at Costco and Costco.com. And earn 1% cash back on all other purchases.

So note: the $0 yearly fee is only for Costco members. And an active Costco membership is required. Cardholders will get access to damage and theft purchase protection, extended warranty coverage and travel accident insurance.

Also, there is no sign-up bonus available with this card.

Get it here: https://www.citi.com/credit-cards/credit-card-details/citi.action?ID=Citi-costco-anywhere-visa-business-credit-card

Ink Business Cash℠ Credit Card

Have a look at the Ink Business Cash ℠ Credit Card. Businesses can earn cash back with each purchase. Spend $3,000 in the initial three months from account opening. And you’ll get a $500 bonus cash back.

There is a $0 yearly fee with a 0% introductory APR for 12 months on purchases and balance transfers. Afterwards, the APR is a 15.24 – 21.24% variable. 

The card includes travel and purchase coverage benefits. So, this includes an auto rental collision damage waiver and extended warranty protection.

Details

Earn bonus cash back on business categories. So, these include office supply stores, telecommunications, gas stations and restaurants.

Note: this card has a balance transfer fee. Pay 5% of the amount transferred or $5, whichever is more. Also, there is a foreign transaction fee of 3%.

Get it here: https://creditcards.chase.com/small-business-credit-cards/ink-cash 

United MileagePlus Explorer Business Card

Get a good look at the United MileagePlus Explorer Business Card.

Get 2 miles/dollar with United and at restaurants, filling stations and office supply stores. All other purchases get 1 mile/dollar. Earn a 50,000-mile sign-up bonus after spending $3,000 in the first three months from account opening. 

Benefits include priority boarding, a free first checked bag for you and a companion on the same reservation.

Details

Also, get two United Club passes annually. And get hotel and resort perks including upgrades. In addition, get early check-in and late checkout. And get an auto rental collision damage waiver. 

Also, get baggage delay insurance, lost luggage reimbursement, trip cancellation and interruption insurance. Finally, get trip delay reimbursement, purchase protection, price protection and concierge service.

After the first year, the card has an annual fee of $95. APR of 17.99% – 24.99%, based on creditworthiness.

Get it here: https://creditcards.chase.com/small-business-credit-cards/united-mileageplus-explorer-business 

Starwood Preferred Guest® Business Credit Card from American Express

Another choice is the Starwood Preferred Guest Business Credit Card from American Express. 

This credit card is for those who stay at Starwood Preferred Guest and Marriott hotels often. Get six points per dollar of eligible purchases at participating SPG and Marriott Rewards hotels.

And earn four points per dollar at American restaurants, American gas stations, and on American purchases for shipping. 

Also, earn four points to the dollar on wireless telephone services purchased directly from US service providers. For all other eligible purchases, get two points per dollar.

Details

Earn 75,000 bonus points when you spend $3,000 in the initial three months of account opening. Benefits include free in-room premium internet access, Sheraton Club lounge access, and purchase protection. 

Plus, you get car rental loss and damage insurance. And you get baggage insurance. There is also a global assistance hotline. And there is a roadside assistance hotline. And get travel accident insurance and extended warranty coverage.

The biggest issue is the yearly fee. There is a $0 introductory annual fee for the first year, then it’s $95 thereafter. Plus, there is no 0% introductory APR. Instead, there is a 17.74 – 26.74% variable APR

Get it here: https://www.americanexpress.com/us/credit-cards/business/business-credit-cards/spg-amex-starwood-credit-card 

Poor Credit Biz Cards Credit Suite

Establish business credit fast with our research-backed guide to 12 business credit cards and lines.

Terrific Bad Credit Business Credit Cards for Cash Back

SimplyCash Plus Business Credit Card from American Express

Check out the SimplyCash Plus Business Credit Card from American Express. There is a $0 yearly fee. And there is a 0% APR on purchases So this is for the first 15 months an account is open. 

But when the introductory period expires, the APR for purchases is 14.24 to 21.24%. So, this is variable and based on creditworthiness.

Details

This credit card has various benefits. These include purchase protection, car rental loss and damage insurance. And they also include a baggage insurance plan, extended warranty coverage and a global assist hotline.

Also, get 5% cash back at US office supply stores and on wireless telephone services. So, these must be bought from American providers. But this applies to the initial $50,000 of yearly spending. Then, you get 1% cash back.

You also get 3% cash back on spending category of your choice. So, this is from eight distinct categories. They include airfare, gas, advertising and computer purchases. But it applies to the first $50,000 of yearly spending. Then, you get 1% cash back.

Cash-back bonuses are automatically credited to the customer’s billing statement.

Note: you cannot use this credit card for balance transfers. There is a foreign transaction fee of 2.7%. The card charges up to $38 in late fees. And the returned check fee is also $38. The penalty APR is 29.99%. 

And, it kicks in if you have two or more late payments within 12 months. It can also apply if you fail to make the minimum payment on time or have a returned payment.

Get it here: https://www.americanexpress.com/us/small-business/credit-cards/simply-cash-plus-business-credit-card/44279 

Capital One® Quicksilver® Card 

Look at the Capital One® Quicksilver® Card. It offers flat-rate rewards of 1.5% on all purchases. There are no limits to the amount of cash back rewards which cardholders can earn. Also, the card has a $0 annual fee.

New cardholders have a 0% APR on purchases and balance transfers for the first 15 months after opening the account. Then afterwards they have a 14.74 – 24.74% (variable) APR after that. 

A cash bonus of $150 is available for those who make at least $500 in purchases within 3 months of account opening.

Details

Also, cash back rewards do not expire for the life of the account. And there is no limit to how much you can earn.

This credit card also offers travel accident insurance. And you get an auto rental collision damage waiver. There are no foreign transaction fees. And there is extended warranty coverage.

Downsides are the flat reward rate, not allowing for any more than that. And the higher APR after the first 15 months.

Get it here: https://www.capitalone.com/credit-cards/quicksilver/ 

Bad Credit Biz Cards Credit Suite

Establish business credit fast with our research-backed guide to 12 business credit cards and lines.

The Best Bad Credit Business Credit Cards for You

Your outright best business credit cards hinge on your credit history and scores.

Only you can pick which features you want and need. So, be sure to do your homework. What is excellent for you could be disastrous for somebody else.

And, as always, make sure to build credit in the recommended order for the best, speediest benefits.

The post Get Bad Credit Business Credit Cards appeared first on Credit Suite.

Make Your List and Check It Twice: Building Business Credit Step by Step

Building business credit, step by step, is not as hard as it may seem at first glance.  It is, however, a process. There are specific steps that must be taken. These steps must be taken in order.  You can’t wrap a gift before you buy it, or even buy it before you know who you are buying for. During holiday seasons, you have to make a gift list.  Then you work from that list marking items or people off as you go. The same is true for business credit. You must take specific credit building steps, in order.  What are the steps? 

10 Steps for Building Business Credit Step by Step

When making your holiday gift list, you not only need to know who to put on the list, but a little something about each one.  You have to know something about what they like, dislike, what size they wear, and more to have any inkling of what might make a nice gift for them. 

Similarly, before you start working through building business credit step by step, you need to understand what business credit is and why you need it. For example, small business credit is credit in a company’s name. It doesn’t link to an entrepreneur’s personal credit.  This means, a business owner’s business and consumer credit scores can be very different.

Why do you need it?  Why is personal credit not enough? There are a few reasons.  First, because company credit is distinct from personal, it helps to protect a small business owner’s personal assets in the event of legal action or business bankruptcy.

In addition, consumer credit scores depend on payments, but also various other elements like credit utilization percentages. That means if your balances hover close to your limits on a regular basis, your score will suffer regardless of whether you make the payments you are supposed to.  Business expenses are higher by nature, meaning if you use personal credit for them your balances are naturally going to be higher. The result will likely be a higher credit utilization ratio and lower personal credit score.

Check out our best webinar with its trustworthy list of seven vendors to help you build business credit.

Now that you know what business credit is and why you need it, it’s time to start making your list so you know what steps to take, and in what order. 

Step 1 in Building Business Credit Step by Step: Separate Contact Information

building business credit step by step Credit Suite

It is tempting for new business owners to simply use their own contact information.  It’s easy and its free. However, this will not work for business credit building purposes.  If you get credit accounts in your business name, but they have your personal contact information, those accounts are going to report information to your personal credit report. Your business needs its own phone number and business address.

Don’t worry, even if you run your business from your home or your home computer, you do not have to buy another building or even a separate phone.  There are a ton of online options for VoIP phone numbers that will forward to an existing number. There are even virtual offices that offer a physical mailing address along with other, optional features.  These may include messaging services, live receptionist services, meeting facilities, and more.

Be sure to list business information in the 411-business directory.  Do that here. 

Step 2 in Building Business Credit Step by Step: Get an EIN

If you apply for credit using your SSN, those accounts will report to your personal credit regardless of what name, address, or telephone number you use.  You can get an EIN from the IRS that works the same way an SSN does, but for your business.  Use your EIN to apply for credit in your business name instead of your SSN. 

Step 3 In Building Business Credit Step by Step: Formally Incorporate

You have to incorporate.  There are many reasons to do this.  However, the main purpose when building business credit is to create a definitive separation between yourself and your business.  There are a few options.

  • C Corp

This is the most complicated and expensive option.  Before choosing it, be certain there are reasons other than establishing business credit that it needs to be done.  If it isn’t necessary for some other reason, there are other less complicated and less costly options. 

  • S Corp

This option basically offers the same separation as the C Corp, but taxes are paid at the personal level, rather than requiring the business to be taxed as well.  That avoids the double taxation that corporations have. It is also cheaper than incorporating as a C Corp. If you aren’t required to file as a C corp, this is a good alternative. 

  • LLC

Forming a Limited Liability Corporation results in less liability, but still offers enough separation to serve the purpose of establishing business credit.  If you are not required to be a C Corp or S Corp, this is the easiest and most cost-effective way to create the separation of business and personal credit needed. 

Step 4 in Building Business Credit Step by Step: Get a D-U-N-S Number

Dun and Bradstreet (D&B) is the largest and most widely used business credit reporting agency.  You have to have the number to have a file with D&B. To have business credit, you definitely need a file with them.  The number is free on the Dun & Bradstreet website, but they will try to upsell you.  Stay strong and just get the number.

Step 5 in Building Business Credit Step by Step: Open a Separate Business Bank Account

Open up a separate, dedicated business bank account and use it exclusively for business transaction.  Intermingling business and personal finances can cause a host of problems. Having a separate business bank account will help you keep things separate for tax purposes.  It will also help creditors recognize your business as a separate entity from you as the owner.

Step 6 in Building Business Credit Step by Step: Professional Website and Email Address

You might think there is no way this should matter when it comes to the steps to building business credit.  However, if you do not have a website in today’s business world, you might as well not exist. Just having a website isn’t enough though.  It has to be professionally designed and put together. Don’t use free hosting either. Pay for hosting with a company like GoDaddy. Free hosting is not professional. 

The email address goes along with the other contact information.  Don’t share your personal address with your business, but don’t use a free email service either.  Your business email address needs to have the same URL as your website. 

Step 7 in Building Business Credit Step by Step: Establish Tradelines in the Vendor Credit Tier

Also known as starter vendors, these are the businesses from which you purchase the things you use day to day in your business. It may be inventory, raw materials, office supplies, or any number of things. They offer net 30 terms on invoices.  After you pay, they report those payments to the business credit reporting agencies. This is how you get accounts initially reporting to your business credit report and start building your score. 

 

Step 8 in Building Business Credit Step by Step: Apply for Cards in the Retail Credit Tier

Once there are 5 to 8 or more vendor trade accounts reporting to at least one of the CRAs, you can start to apply for cards in the retail credit tier. These are cards from stores like Office Depot and Staples.  In this tier, you can only use the cards in the stores that issue them.

There are several options that report to various credit reporting agencies.  For example, Lowe’s reports to D&B, Equifax and Business Experian. They want to see a D-U-N-S and a PAYDEX score of 78 or more.  If you have handled your vendor credit properly, this will be no problem.

Check out our best webinar with its trustworthy list of seven vendors to help you build business credit.

Step 9 in Building Business Credit Step by Step: Move on to The Fleet Credit Tier

After there are 10 or so of these accounts reporting you can apply for cards in the fleet credit tier. These come from companies like BP and Conoco. They are limited to use for fuel and vehicle maintenance expenses.

Shell is another example of a company in this tier.  They report to D&B and Business Experian. You need a PAYDEX Score of 78 or more and a 411-business phone listing. They sometimes want a certain amount of time in business or minimum revenue. However, if you already have enough credit, that won’t be necessary.  If you follow these steps in order and handle your credit responsibly, you will have the credit you need to get approval.

Step 10 in Building Business Credit Step by Step: The Bow on Top is The Cash Credit Tier

At this point, if you have used your credit wisely, you can apply for cards in the cash credit tier.  They include cards from Visa, Discover, MasterCard and others that are not limited by location or type of expense.  Typically, they have higher limits and lower interest rates. 

The Gift that Keeps on Giving: Monitor Your Business Credit

Your business credit can continue to help you run and grow your business indefinitely.  However, you are going to want to keep an eye on it. Make sure it is being reported and fix any mistakes as soon as possible. Not only that, but monitoring your credit reports is the only way to know when you have enough accounts reporting to move on to the next credit tier.

We can help you monitor business credit at Experian and D&B for 90% less than it would cost you at the CRAs. See: www.creditsuite.com/monitoring.

You can also monitor through the CRAs, but it will cost significantly more.  For example, at D&B you can monitor at: www.dandb.com/credit-builder. At Experian, go here:www.smartbusinessreports.com/Landing/1217/.

Monitor your account with Equifax here: www.equifax.com/business/business-credit-monitor-small-business. Experian and Equifax cost about $19.99; D&B ranges from $49.99 to $99.99.

Update Your Records

If you see something missing or out of date, be sure to update the information.  At D&B, you can do this at: https://iupdate.dnb.com/iUpdate/viewiUpdateHome.htm. With Experian, go here: www.experian.com/small-business/business-credit-information.jsp.  For Equifax, go here: www.equifax.com/business/small-business.

Correct Mistakes

You didn’t go through the trouble of building business credit step by step for nothing.  Don’t let simple mistakes ruin all your hard work. Errors in your credit report(s) can be taken care of. There is a particular way each reporting agency wants it done however.

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

Fixing credit report mistakes requires that you precisely detail any charges you challenge. Make your dispute letter as clear as possible. Be specific about the problems with your report. Use certified mail to have proof that you sent in your dispute.

Check out our best webinar with its trustworthy list of seven vendors to help you build business credit.

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

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

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

You Made Your List, Now Check it Twice

Now that you have a list of the steps you need to take to build business credit, you can start checking items off.  A lot of this you may have already taken care of. Some of it you may have thought it was too late to accomplish. For example, maybe you thought it was too late to worry about an address or phone number if you are already in operation using your own.  

 

While many of these steps are easier to take while you are initially setting up your business, it is never too late to start building business credit step by step.  Start making that list and checking things off today. The sooner you start, the sooner you will have access to the business funding you need. 

 

The post Make Your List and Check It Twice: Building Business Credit Step by Step appeared first on Credit Suite.

Business Experian: A Comprehensive List of Everything You Need to Know

Many business owners do not understand their business credit score. What is it? How is it generated? What can I do to make it higher? Individual consumers normally find that much of their lending life rests on the FICO score, but what about businesses? Which scores do business owners need to worry about?   There are … Continue reading Business Experian: A Comprehensive List of Everything You Need to Know

Business Experian: A Comprehensive List of Everything You Need to Know

Many business owners do not understand their business credit score. What is it? How is it generated? What can I do to make it higher? Individual consumers normally find that much of their lending life rests on the FICO score, but what about businesses? Which scores do business owners need to worry about?  

There are many options for business credit reports.  Why worry about Experian? Business Experian is one of the main three busing credit reporting agencies.  The other two are Dun & Bradstreet and Equifax. 

Everything You Need to Know About Business Experian: From Profile to Improving Your Score

You need to know what your business Experian reports say.  Honestly, knowing what information lenders are getting from this report is necessary to help you determine your business fundability.  To understand completely, you need to know where the information on the report comes from, of course. But that’s not all. You also need to know how they calculate the business credit score.   

Keep your business protected with our professional business credit monitoring. 

Business Experian: How Do They Get Your Information?

Experian keeps business credit profiles on 99.9% of all United States businesses. According to them, they hold the credit industry’s most inclusive database on small businesses. As a result, if your business is already operating, it probably already has a business Experian file.

Their information comes from third party sourcing. Consequently, you cannot add anything to your business credit profile yourself. You can, however, still review your profile.  Then, you can tell them about any mistakes and have those mistakes corrected.

Business Owner Profile

For smaller companies, Experian will add a business owner profile.  This is to show the relationships between you and your business. Experian’s Business Owner Link automatically links the credit history of more than 5 million business owners to their business credit history. This makes things easier for creditors to find a Business Owner Profile on small business accounts. It also makes it easier for them to determine overall creditworthiness.

business Experian Credit Suite

What’s on Your Business Experian Report?  

Experian sells different products and reports that keep track of a business’s credit.

Business Credit Advantage Plan

This is presently $149 monthly and incorporates mobile-friendly alerts and score improvement pointers.

Profile Plus Report

This report is currently priced at $49.95 and it includes financial payment details and predictive information on payment behavior.

Credit Score Report

The least costly of the available reports, it is currently $39.95. This fundamental report features detailed company and credit information.  It also shows summary financial payment information.

Valuation Report

At $99, this report is a middle of the road option in terms of cost.  It shows the value of your business and features Key Performance Indicators. It also shows the fair market value of the business.

Premium Corporate Profiles

For an additional charge, Experian also offers premium corporate profiles. They enhance these profiles by adding extra information.  Additional data includes sales figures, size, contact details, products and operations, credit summary, any Uniform Commercial Code (UCC) filings, fictitious business names, plus payment and collections history. In addition, these premium profiles have information on credit inquiries made in the last nine months.  UCC specifics and financial details from Standard & Poor’s round out the information on this report.

What Does Your Business Experian Report Tell Lenders? 

A business Experian report is set up in several different sections.  We break it down below. 

Identifying Information

This report is split within itself. First, you get the standard identifying data and details of ownership. This area also lists major personnel, company type, and length of time in business.  Number of employees and annual sales are on this report as well.

Payment Information at a Glance

After that, there is a section noting delinquent payments.  It also shows those payments they expect to go delinquent. Additionally, you can see the lowest and highest balances for the past six months and the current balance. By showing the highest credit limits, there is an idea of the highest credit utilization rate.

Keep your business protected with our professional business credit monitoring. 

In addition, this segment contains the number of tradelines a business holds.  Also, it has the number of credit inquiries in the past. Uniform Commercial Code filings are on this list too.

Next, there is a relative percentage showing the percent of businesses doing worse than the one in the report.  Lastly, you can see the number of bankruptcies, liens, and judgments.

Credit Summary

After that is the credit summary. This shows the company’s Experian credit score.  It also has links to information about what enters into the score and tips on exactly how to improve it.

Payment Summary

The next area is the payment summary. It shows line graphs for monthly and quarterly payment trends.  It also shows where those numbers originated from. The monthly payment trend is even graphed against the industry average.

Just below this pair of graphs are three bar charts showing continuous payment trends. The first includes tradelines that have been reported for over 6 months.  The next includes tradelines that have been reporting for 6 months. At the end, there is a chart that shows these payment trends in combination. 

Trade Payment Information

How has the business done with making payments?  This section will tell you. It breaks payments into credit card and leasing accounts.  Then, it further breaks them down by supplier category. Lastly, payment trends are at the bottom. 

Inquiries

This part is pretty self-explanatory.  This is where the inquiries into the company’s credit are listed.

Collection Filings

If a business has any collection filings, they’ll be in this section in date order.  It will also list collection agency name, status, amounts contested and collected, and the closed date.  

Commercial Banking, Insurance, Leasing

This portion shows what Experian knows about your company in relation to banking, insurance, and leasing.  For example, what was credit extended for? How much credit was extended? When did the loan start? Is there any remaining balance? If so, how much? 

Judgment Filings

Next the report shows basic legal information.  For example, the court where a judgment was filed, the day, and what amount it was for.

Tax Lien Filings

Tax lien filing data is similar to judgment filings, except that there is a listing for a filing location, rather than a court.

UCC Filings

This only displays the date, filing number, jurisdiction, name of the secured party, and activity on the filing.

Business Experian Credit Monitoring

Obviously, you can register for business credit alerts. Experian’s Business Credit Advantage program operates as a self-monitoring service. You get unrestricted access to your company’s business credit report and score. You can use this resource for proactively managing your company credit. Alerts are sent for:

  • Company address changes
  • Changes in your business credit score
  • Credit inquiries on your business profile
  • Newly-opened credit tradelines
  • Any kind of USS filings
  • Collection filings and
  • Any public record filings, such as liens, bankruptcies, and judgments

However, we can help you monitor your credit with business Experian for a fraction of the cost.  Go here to find out more. 

Business Experian: Intelliscore Plus

You need to understand this score and how it works.  You may not be able to change it much, but by understanding the score, what it tells lenders, and how it is calculated, you can work to mitigate any negative issues with positivity.

What is the Intelliscore Plus Credit Score?

The Intelliscore Plus credit score is credit-risk analysis. The primary function of Intelliscore Plus is to help businesses, investors, and prospective lenders make well educated judgments about who they should or should not do business with.

Intelliscore Plus Credit Score Range

The Intelliscore scores range from 1 to 100.  The higher the score, the lower the risk class. In contrast, the lower the score, the higher the risk class. It breaks down like this: 

Score Range Risk Class

  • 76 – 100 Low
  • 51 – 75 Low – Medium
  • 26 – 50 Medium
  • 11 – 25 High – Medium
  • 1 – 10 High

How Does Business Experian Calculate Intelliscore Plus?

In the credit world, Intelliscore Plus is regarded as one of the most reliable tools for determining credit risk. Here’s why.  They use over 800 variables to calculate the score. That’s a lot, but they all fit into these three general categories. 

Keep your business protected with our professional business credit monitoring. 

Payment History

This features the number of times accounts have become delinquent, the percent of accounts that are currently delinquent, and your overall trade balance. 

Frequency

Frequency is related to payment history.  It takes into account how many times your accounts have been sent to collections, liens and judgements, and any bankruptcies on both business and personal accounts.  

This also relates to payment patterns.  Were you regularly slow or late with payment? Did you begin by paying bills late but now you are doing better? This is all taken into account.

Monetary

This detail focuses on how you make use of credit. For example, how much of your available credit is currently being used? Do you have a high ratio of delinquent balances in relation to your credit limits?

If you’re about to start a small business or are relatively new to this game, the list above may seem a bit overwhelming. Furthermore, how will you rate if you have a short time in business? 

This is where the blended model comes into play. This means that they take your personal credit score into consideration when calculating your business’s credit score.

Can You Do Anything to Improve Your Business Experian Score?

While you may not be able to do anything to make a big score increase happen all at once, you can definitely do some things that will make a positive difference over time. 

Pay on Time

This is number one.  Over time, paying your bills punctually will help establish your company as one that satisfies their debts. This will definitely help push your score up and show other firms that you are a low credit risk.

Make Wise Credit Choices

The more debt you have on your plate, the more monthly bills you have.  Consequently, the less disposable income you have. If your overall debt is close to or even over your income, your business with appear to be a high credit risk.

Keep your debts in check and consistently pay them down or off. So this is to keep a healthy balance between what you make and what you owe.

Use the Credit You Have

Keeping your debts low remains solid advice. But you have to make use of the business credit accounts you have.  You have to be making payments on accounts for your score to grow. Having a ton of credit and not using it at all doesn’t really help.  This, again, is where balance comes into play.

There is no need to buy things you do not need however.  Even if you can pay cash, use credit for the things you would be buying regularly for your business anyway.  Then, use the cash to pay the credit account. 

Watch Your Personal Credit

By now, you’re aware that personal credit is fair game when it comes to your Intelliscore Plus score. Don’t fall into the trap of thinking your personal credit doesn’t matter.  If it is bad, there are options for working around it. However, it is much better to just keep it healthy. Making certain you stay on top of your monthly bills is the number one way to keep your personal score strong. Avoid unneeded credit inquiries, and refrain from compromising your personal credit for business demands.

Make Use of Monitoring Options

No matter what your credit score is, it is crucial that you continue to be diligent. Sod review your personal and business credit reports. This can help you spot possible errors and stay educated on your own credit profile.   

Business Experian Credit Scores Make a Difference When it Comes to Funding

It’s important to understand your business Experian score.  It can affect your ability to get funding. So you need to know what it is, what it tells lenders, and what affects it.  Once you know these things, you can work from your end to keep it as high as possible. In turn, this will greatly improve your ability to fund your business. 

The post Business Experian: A Comprehensive List of Everything You Need to Know appeared first on Credit Suite.

Choosing a Lender for Your Small Business Loan

Picking a Lender for Your Small Business Loan

Choosing a loan provider can be as tiresome as well as described a procedure as preparing a service strategy or lending proposition. Numerous entrepreneur and also prospective local business owner are so worried concerning being accepted on a company car loan that they neglect the relevance in choosing a loan provider.
A big component of the lending institution’s threat is the unpredictability relating to the car loan payment. By picking a lending institution in which you currently have a connection, it can substantially lower the unpredictability concerning your as well as your organisation, placing you in a far better placement of being authorized for a financing. If you have a home mortgage with a financial institution, that exact same financial institution is most likely a great location to begin asking regarding a service finance when you’re concentrated on picking a lending institution.
If you have factor not to make use of a lending institution in which you have a previous or present connection, think about choosing a lending institution that * desires * your financing company. Resources for these loan providers can be located in the company area of your neighborhood paper for unique funding deals.
In the circumstances that you are a financial institution client, think about a credit score union when choosing a loan provider. Bigger financial institutions often tend to have even more stiff regulations as well as procedures connected with little company car loans.
Recognize a number of selections for lending institutions prior to choosing a loan provider for your lending proposition. Also if you really feel that your front runner of a lending institution will certainly accept your funding application, explore a number of various other lending institutions prior to picking a lending institution to give your finance.
1. See to it that the lending institution is best regards thinking about your service.
If you obtain the sensation that your finance is “simply one more number,” as an example, it might be risk-free to opt for your impulses and also look for a various lending institution.
2. Validate that you’ll obtain the solutions that you want for your car loan.
When choosing a financial institution or various other lending institution, make certain to choose one that will certainly supply you with the solutions you require. As an instance, if electronic banking is essential to you as a result of its practical attributes, do not choose a financial institution that costs for these solutions, or one that does not use a complete series of solutions that will certainly make your finance experience less complicated and also easier for you.
2. Select a lending institution that “really feels right” in every little thing that it can provide you as well as your company.
Picking a loan provider, and also inevitably selecting a lending institution, need to consist of the suggestion that this is a lending institution in which you really feel comfy with establishing a lasting partnership. Concentrate on the worth of your organisation to the neighborhood, as well as what its future down payments might suggest to the financial institution. The lending institution needs to treat you with regard, as well as must appreciate your company suggestions.
When choosing a lending institution, take into consideration the adhering to inquiries:
– Does the loan provider have a market specialized pertaining to your particular company?
– What is the ordinary dimension company in which the loan provider normally accepts for financings?
– What are the information of the lending institution’s lending customer specialist histories? Is the lending institution even more of an industrial or customer loan provider?
– How long has the lending institution stayed in business?
These concerns to ask when picking a loan provider are vital for a couple of factors. Smaller sized, neighborhood financial institutions, on the various other hand, might enable you the possibility to function with a lender that will straight make the choice as to whether or not to financing you the cash, or might have close connections with the financial institution pecking order. It could likewise relocate the financing procedure along a lot extra quickly.
When lastly making your choice on a very first option for a loan provider, submit your application as well as funding proposition with that lending institution. Take the time required, and also be client, both with choosing a loan provider as well as acquiring a tiny service lending.

If you have a home loan with a financial institution, that exact same financial institution is possibly an excellent location to begin making inquiries concerning a company financing when you’re concentrated on picking a loan provider.
If you have factor not to utilize a loan provider in which you have a previous or existing connection, take into consideration choosing a loan provider that * desires * your financing company. Choosing a loan provider, and also eventually picking a lending institution, must consist of the suggestion that this is a loan provider in which you really feel comfy with establishing a lasting partnership. When lastly making your choice on a very first option for a lending institution, submit your application as well as funding proposition with that loan provider. Take the time required, and also be client, both with picking a loan provider as well as getting a tiny company financing.

The post Choosing a Lender for Your Small Business Loan appeared first on ROI Credit Builders.

Choosing a Lender for Your Small Business Loan

Picking a Lender for Your Small Business Loan

Choosing a loan provider can be as tiresome as well as described a procedure as preparing a service strategy or lending proposition. Numerous entrepreneur and also prospective local business owner are so worried concerning being accepted on a company car loan that they neglect the relevance in choosing a loan provider.
A big component of the lending institution’s threat is the unpredictability relating to the car loan payment. By picking a lending institution in which you currently have a connection, it can substantially lower the unpredictability concerning your as well as your organisation, placing you in a far better placement of being authorized for a financing. If you have a home mortgage with a financial institution, that exact same financial institution is most likely a great location to begin asking regarding a service finance when you’re concentrated on picking a lending institution.
If you have factor not to make use of a lending institution in which you have a previous or present connection, think about choosing a lending institution that * desires * your financing company. Resources for these loan providers can be located in the company area of your neighborhood paper for unique funding deals.
In the circumstances that you are a financial institution client, think about a credit score union when choosing a loan provider. Bigger financial institutions often tend to have even more stiff regulations as well as procedures connected with little company car loans.
Recognize a number of selections for lending institutions prior to choosing a loan provider for your lending proposition. Also if you really feel that your front runner of a lending institution will certainly accept your funding application, explore a number of various other lending institutions prior to picking a lending institution to give your finance.
1. See to it that the lending institution is best regards thinking about your service.
If you obtain the sensation that your finance is “simply one more number,” as an example, it might be risk-free to opt for your impulses and also look for a various lending institution.
2. Validate that you’ll obtain the solutions that you want for your car loan.
When choosing a financial institution or various other lending institution, make certain to choose one that will certainly supply you with the solutions you require. As an instance, if electronic banking is essential to you as a result of its practical attributes, do not choose a financial institution that costs for these solutions, or one that does not use a complete series of solutions that will certainly make your finance experience less complicated and also easier for you.
2. Select a lending institution that “really feels right” in every little thing that it can provide you as well as your company.
Picking a loan provider, and also inevitably selecting a lending institution, need to consist of the suggestion that this is a lending institution in which you really feel comfy with establishing a lasting partnership. Concentrate on the worth of your organisation to the neighborhood, as well as what its future down payments might suggest to the financial institution. The lending institution needs to treat you with regard, as well as must appreciate your company suggestions.
When choosing a lending institution, take into consideration the adhering to inquiries:
– Does the loan provider have a market specialized pertaining to your particular company?
– What is the ordinary dimension company in which the loan provider normally accepts for financings?
– What are the information of the lending institution’s lending customer specialist histories? Is the lending institution even more of an industrial or customer loan provider?
– How long has the lending institution stayed in business?
These concerns to ask when picking a loan provider are vital for a couple of factors. Smaller sized, neighborhood financial institutions, on the various other hand, might enable you the possibility to function with a lender that will straight make the choice as to whether or not to financing you the cash, or might have close connections with the financial institution pecking order. It could likewise relocate the financing procedure along a lot extra quickly.
When lastly making your choice on a very first option for a loan provider, submit your application as well as funding proposition with that lending institution. Take the time required, and also be client, both with choosing a loan provider as well as acquiring a tiny service lending.

If you have a home loan with a financial institution, that exact same financial institution is possibly an excellent location to begin making inquiries concerning a company financing when you’re concentrated on picking a loan provider.
If you have factor not to utilize a loan provider in which you have a previous or existing connection, take into consideration choosing a loan provider that * desires * your financing company. Choosing a loan provider, and also eventually picking a lending institution, must consist of the suggestion that this is a loan provider in which you really feel comfy with establishing a lasting partnership. When lastly making your choice on a very first option for a lending institution, submit your application as well as funding proposition with that loan provider. Take the time required, and also be client, both with picking a loan provider as well as getting a tiny company financing.

The post Choosing a Lender for Your Small Business Loan appeared first on ROI Credit Builders.