Tag: credit

Securities-Based Lines of Credit

You may have heard about securities-based lines of credit. But what are they, exactly?

What are Securities-Based Lines of Credit?

The term securities-based lending (SBL) refers to the practice of making loans using securities as collateral. Securities-based lending provides ready access to capital. This can be used for almost any purpose, such as buying real estate or investing in a business. The only restrictions to this kind of lending are other securities-based transactions like buying shares or repaying a margin loan.

Here are the Details on Securities-Based Lines of Credit

It is generally offered through large financial institutions and private banks. People tend to seek out securities-based loans, if they want to make a large business acquisition, or if they want to execute large transactions like real estate purchases.

How Does the Process Work?

Lenders determine the value of the loan based on the borrower’s investment portfolio. In some cases, the issuer of the loan may determine eligibility based on the underlying asset. It can end up approving a loan based on a portfolio of US Treasury notes rather than stocks.

Once you get approval, the borrower’s securities (the collateral) are deposited into an account. The lender becomes a lienholder on that account. If the borrower defaults, lender can seize the securities. Then they can sell them to recoup their losses.

In general, borrowers can get cash in just a few days. Securities-based lending is also relatively cheap. The rate borrowers are charged is generally variable, based on the 30-day London InterBank Offered Rate (LIBOR).

What is LIBOR?

Interest rates are typically 2 – 5 percentage points above LIBOR, depending on the sum. LIBOR is derived from an average of daily self-estimates of borrowing costs, supplied by a small group of large global banks.

Demolish your funding problems with 27 killer ways to get cash for your business.

Here are the Advantages of Securities-Based Lines of Credit

Get access to cash when you need it. You can potentially avoid capital gains taxes from selling securities. Typically lower rates than other forms of credit. No setup, non-use, or cancellation fees. Ability to borrow a significant percentage of your eligible assets, depending on the collateral and type of credit you receive.

SBL offers access to cash within a couple of days at lower interest rates with considerable repayment flexibility. These rates are often much lower than home equity lines of credit (HELOCs) or second mortgages. It works best when used for short periods of time in situations that demand a significant amount of cash quickly, like an emergency or a bridge loan.

SBL also provides benefits to the lender. It offers an additional and lucrative income stream, without much additional risk. The liquidity of securities used as collateral can help to mitigate much of the credit risk associated with traditional lending. See investopedia.com/terms/s/securitiesbased-lending.asp.

You can stay invested. You can keep your investment plan and asset allocation in place, without disrupting your long-term strategy. Financial flexibility is another bonus. You can quickly access liquidity for a range of uses.

Demolish your funding problems with 27 killer ways to get cash for your business.

Here are Some of the Disadvantages of Securities-Based Lines of Credit

You are pledging securities. Also, events outside your control affect their value. Hence market fluctuations may cause the value of pledged assets to decline. A decline in the value of your securities could result in selling your securities to maintain equity. Hence you may suffer adverse tax consequences as a result of selling securities. See wellsfargoadvisors.com/why-wells-fargo/products-services/lending/securities-based.htm.

SBL’s growing usage has led to concern, due to its potential for systematic risk. If interest rates increase, financial experts are concerned that there could be fire sales and forced liquidations when the market turns.

The Securities and Exchange Commission (SEC) doesn’t track securities-based lines of credit. Neither does the Financial Industry Regulatory Authority (FINRA). Still, both continually warn investors of the risks in this market. Another risk is if you depend on your securities for your retirement funding, is if they lose considerable value during the life of the loan. But that is a risk with all securities.

When equity and fixed-income markets perform poorly, which is often cyclical, the market value of many assets can hit low levels that were previously unthinkable. Unless the borrower has a lot of surplus liquidity, beyond the securities backing the loan, or the securities backing the loan consist almost entirely of assets like short-term US Treasury bills, this can result in the bank calling in the investor’s collateral.

A bank calling in the investor’s collateral could trigger forced liquidation of the borrower’s holdings at disadvantageous prices. In such cases, the borrower does not have the option to buy and hold. Also, they don’t have the choice of waiting for the market to recover.

Generally, Which Sorts of Securities Can Be Used with Securities-Based Lines of Credit?

While the specifics will depend on the lender, the following are securities which are often acceptable: marginable equity securities, this includes ETFs (exchange-traded funds) and most mutual funds; cash and cash equivalents, such as certificates of deposit; and fixed-income investments. This can include most investment-grade corporate, treasury, municipal, and government agency bonds.

Did You Know that Credit Suite has a Securities-Based Financing Program?

Our securities-based financing offers a powerful and flexible way for businesses and franchises to leverage assets currently in stocks or bonds. You can get a low interest credit line. In as little as 2 weeks, you can invest some of your stocks or bond in your business. This gives you more control over the performance of your retirement plan assets. Also, it gives you the working capital you need for business growth.

Check Out These Details on Credit Suite Securities-Based Lines of Credit

You can get approval for a low-interest credit line for as much as 90% of the value of your securities. Most stocks and bonds are accepted! You keep all the interest and appreciation from your securities. You pay no pre-payment penalty. Also, your securities stay in your name.

Here’s How to Qualify for Credit Suite Securities-Based Lines of Credit

Securities-based financing is very easy to qualify for. You won’t need financials, or good credit for approval. To qualify all the lender will require is a copy of your two most recent securities statements. If your stocks or bonds have a value over $25,000, you can get approval, even with severely challenged personal credit.

But what If You Have Credit Issues Now?

Our securities-based financing program is perfect for business owners who have credit issues. Lenders are not looking for, nor do they require, good credit to qualify.

Credit history is not important, except that there can be no bankruptcies or foreclosures in the last 5 years. Lenders won’t use credit history to determine rate or LTV% (loan-to-value). This is one of the best and easiest business financing programs you can qualify for. Also, you can get really good terms, even if you have severe personal credit problems.

You can Get FAST Funding with the Credit Suite Securities-Based Line of Credit

After the lenders review your securities statements, you can receive your initial approval and funding in 2 weeks or less. You can get a working capital credit line, to use for whatever purposes you need.

Demolish your funding problems with 27 killer ways to get cash for your business.

Check Out Credit Suite Securities-Based Lines of Credit’s Powerful Benefits!

Enjoy 24-hour pre-approval. No penalties for rollover. Easy securities review for approval. you pay no application fees.

You can get approval with very bad credit. Application to funding in 2 weeks or less. Get approval with no revenue requirements. Rates of 5% are common. Get a credit line for 70 – 90% of securities value.

Most stocks and bonds are acceptable. Your securities remain in your name. You keep all the interest from your securities. No pre-payment penalty. You keep 100% of your appreciation.

Get approval for up to 90% of value. Bad credit is acceptable. Your collateral is just your stocks, bonds, or other securities. Also, you DON’T need financials!

Securities-Based Lending: Takeaways

Securities-based lending, including for lines of credit, lets you leverage securities without having to sell them. Rates tend to tie to the London InterBank Offered Rate (LIBOR). There are both advantages and disadvantages to this form of financing. Only you can choose if it’s worth it

Credit Suite offers a securities-based line of credit program. Get up to 90% of the value of your holdings. Also with a fast decision and low rates. Also, you can qualify even with bad credit. Choosing to go for a securities-based line of credit is a big step. Let’s take it together.

The post Securities-Based Lines of Credit appeared first on Credit Suite.

Help Your Children Build Business Credit with EIN

As a parent, you want to do everything you can to help your child succeed.  If they are running a business, you likely want to help them get funding. You probably realize that your help needs to go beyond simply providing funding yourself. Even if you can do that, you need to know how to help your children build business credit with EIN, apart from their social security number. 

Dos and Don’ts When Trying to Help Your Children Build Business Credit with EIN

When you have a credit score for your business that is attached to your EIN rather than your SSN, you have access to much more business financing that you otherwise would.  The thing is, a business credit score does not build passively like a personal credit score does. You have to intentionally work to establish and build a business credit profile. So, how can you as a parent help your children build business credit with EIN?  Here are some dos and don’ts. 

Credit Line Hybrid Financing: Get up to $150,000 in financing so your business can thrive.

Don’t Pay for Tradelines

There are many companies online which promise to sell ‘seasoned’ tradelines. If a company has poor or little credit, you can pay several hundred or several thousand dollars and have your child’s business piggybacked onto the account of someone with established excellent credit.  By doing this, new business owners can seem more creditworthy than they really are. Most consider this unethical.  Do not help your child buy tradelines to establish or build a business credit score.

Don’t Try Piggybacking Your Own Credit

In this scenario, a creditworthy borrower’s accounts  are used to improve the credit of an unrelated, or a related, third party, like a child. A creditworthy borrower adds the third party as an authorized user of his lines of credit. But he or she does not actually provide the third party with credit cards or account numbers to let the third party make charges against that account. As a result, the authorized user never actually uses the credit

The benefit to the third party is an improved credit rating . It ‘shows’ they are already approved for higher limit revolving accounts. In theory, showing you already have credit is supposed to make you more creditworthy for higher limit accounts. Many companies claim to be able to secure $100,000 – 250,000 credit lines once these accounts are reporting. This is dishonest as well, even if it is your own accounts your child is piggybacking on, and even if you authorize it. It is viewed negatively by the Federal Reserve, the FBI, and credit companies. 

Do Consider Signing as a Guarantor

A guarantor loan is a loan that you sign on to for someone else.  You guarantee that you will repay if they default.  Sometimes this is a better way to  help a family member with funding than providing cash. Of course, if they fail to meet their business obligations,  then you will bear the brunt of that – and lenders will likely come after you to make up for any losses they incur.

However, if they handle their obligations responsibility, this is a great way for someone to build a personal credit score.  Even though business credit accounts do not affect personal credit, some business credit score calculations take personal credit score into account. So, this could also help strengthen the business credit sore of your child. 

Do Consider the Credit Line Hybrid

This is a unique type of loan that you can help your child get by signing on as a guarantor.  If you have a personal credit score of at least 680, you can help your child get the Credit Line Hybrid. They can usually get a loan of five times the amount of your highest revolving credit limit account, up to $150,000. Honestly, this is more than what you could get when applying for credit cards. Furthermore, you can get cash out on this program.

Credit Line Hybrid Financing: Get up to $150,000 in financing so your business can thrive.

Here is the best part.  There is no impact on your personal credit with this type of financing. All payments report to the business credit profile, so your child  can build credit for their business associated with the business EIN without your personal credit being affected.  

Do Consider Helping Pay for a Business Credit Expert

Now, here is the number one best way to help your children build business credit with EIN. Help them work with a business credit expert.  There are very few things that are worth paying for when it comes to building credit, whether personal or business.  This is one thing that is definitely worth it.  Here is how a business credit expert can help your child. 

Learn How to Establish Business Credit for the First Time

Remember we said you have to be intentional about building a business credit profile.  It does not happen passively like with personal credit. A business credit expert can start this process.  They can review how things look right now, and help your child navigate the process of setting up their business to be a fundable entity separate from them as the owner.  

This is the first step in not only establishing a business credit score, but in building an overall foundation of fundaility.  

Learn How to Earn Business Credit With EIN Number

Establishing a business credit profile is just the first step.  Before you can build a business credit score, you  have to have accounts reporting on-time payments. It sounds simple enough. However, not all business accounts report payments.  In fact, very few do.  Even worse, those that do report do not make that information common knowledge. 

It is absolutely essential to work with a business credit expert to find an initial net 30 account to build business credit. This is the fast way to build credit for a business.  If you try to do it alone, you could have a ton of accounts that are doing your business credit score no good, because they are not reporting.  You will also waste time applying for accounts and getting denied.  

A business credit expert knows not only which accounts report, but they can help you start with the ones that you actually qualify for and work up to the ones that take more time. 

This alone saves an enormous amount of time, and time is money. 

Helping Your Child Build Credit for Their Business is Likely a Different Process Than You Expect

While there is a right way to spend money to help your children build business credit with EIN, there is also a very wrong way.  Never pay for tradelines, and avoid allowing your child to piggyback off your own credit.  Both of these options are dishonest.  They are viewed negatively by experts.  Furthermore, they can only help with personal credit anyway.  There really is not a way to do this to help with a business credit score. 

Signing a loan as a guarantor is fine, but again, it really only helps with personal credit.  While this can have bearing on a business credit score, the better way is to sign as a guarantor on the Credit Line Hybrid.  Payments on this type of financing can directly impact the credit score of the business itself. 

Credit Line Hybrid Financing: Get up to $150,000 in financing so your business can thrive.

In the end, the number one best way to help your children build credit with EIN is to help them work with a business credit expert. This is someone who can not only help ensure their business is properly set up to build business credit, but that can also help them find accounts that report, and work on helping them build overall fundability.  Get started now with a free consultation.

The post Help Your Children Build Business Credit with EIN appeared first on Credit Suite.

It’s Time to Build Credit for Your Business

Did You Know You Can Build Credit for Your Business?

Yes, you really can build credit for your business.

But let’s start with some definitions and background on business credit.

Business Credit

This is credit in a business’s name. It is not tied to the owner’s creditworthiness. Instead, business credit scores depend on how well a company can pay its bills. Hence consumer and business credit scores can vary dramatically.

Business Credit Benefits

There are no demands for a personal guarantee. You can quickly get business credit regardless of personal credit quality. And there is no personal credit reporting of business accounts. Business credit utilization won’t affect your consumer FICO score. Plus the business owner isn’t personally liable for the debt the business incurs. The same can be true for you as you build credit for your business.

Another advantage is that even startups can do this. Heading to a bank for a business loan can be a formula for disappointment. But building company credit, when done right, is a plan for success.

Consumer credit scores are dependent on payments but also additional components like credit use percentages.

But for business credit, the scores actually only depend on if a company pays its debts in a timely manner.

Business Credit Details

Being accepted for business credit is not automatic. Building business credit requires some work. Some of the steps are intuitive, and some of them are not.

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

Merchants are a big component of this process.

Performing the steps out of sequence leads to repetitive denials. Nobody can start at the top with company credit. For example, you can’t start with retail or cash credit from your bank. If you do, you’ll get a denial 100% of the time.

Fundability is the Start of How to Build Credit for Your Business

Fundability is the current ability of our business to get funding. Some factors are within your control. Others (like your time in business) aren’t. Your online presence and data are one area which is at or close to 100% with your control.

For example, a small business needs a professional-looking web site and e-mail address. And it needs to have site hosting from a supplier like GoDaddy.

Plus, business phone numbers should have a listing on 411. You can do that here: http://www.listyourself.net/ListYourself/.

Additionally, the business phone number should be toll-free (800 exchange or comparable).

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

Licenses

These licenses all have to be in the specific, correct name of the small business. And they need to have the same business address and phone numbers.

So keep in mind, that this means not just state licenses, but potentially also city licenses.

Keep your business protected with our professional business credit monitoring.

Build Credit for Your Business and Work With the IRS

Visit the Internal Revenue Service web site and get an EIN for the business. They’re free. Select a business entity like corporation, LLC, etc.

A company may start off as a sole proprietor. But they absolutely need to switch to a variety of corporation or an LLC.

This is to decrease risk. And it will maximize tax benefits.

A business entity matters when it involves taxes and liability in the event of a lawsuit. A sole proprietorship means the business owner is it when it comes to liability and tax obligations. Nobody else is responsible.

The best thing to do is to incorporate. You should only look at a DBA as an interim step on the way to incorporation.

Starting to Build Credit for Your Business

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

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

By doing this, Experian and Equifax have something to report on.

Business Credit, Fundability, and Business Funding Applications

The better your business credit and fundability are, the more likely you will get approval for business financing. Consider your online presence.

Build Credit for Your Business with Your Professional Business Email and Website

There are some aspects of fundability where you should pay particular attention to what’s going on online. They include:

  • Business owners listed and listed ownership uniform
  • Business name and address uniform
  • Industry aligned
  • Company domain
  • Information uniform on all records

Build Credit for Your Business with Your Business Ownership Listings

Records consistency matters here, too. Your website should show who owns your business. And that information needs to be consistent. So if the owner is named Susan Johnson on your website’s About page, then she can’t be listed as Sue Johnson on your Contact page. If your business ownership changes, you need to show that here.

Business Name and Address Uniformity

Abbreviations can be your downfall here, as can punctuation like hyphens, commas, and colons. If your Contact page says your main office is on Main Street, then your About page can’t say it’s on Main St.

If your business moves, or you add subsidiaries and other locations, then you need to update that information everywhere. This even means whether you use your 5-digit ZIP code, or a ZIP plus 4 code (9 digits).

Industry Alignment

If your business is over the road trucking, then it needs to be listed that way. Pro tip: when your industry can be called several different names, like long distance trucking, mention those other phrases on your website.

Your Company Domain

When your company domain matches your business name, it helps with fundability. Pro tip: try to match what people will be searching for online, so if (for example) the word ‘brothers’ is in your company name, then determine if ‘brothers’ or ‘bros’ will be used by people searching for your company and its goods and services online.

Keep your business protected with our professional business credit monitoring.

Your Email Address

Given that so much more of lending decisions is going on online these days, then your email address is an opportunity for your business to puts its best foot forward. Don’t squander this easy and free opportunity! General email addresses like admin@yoursite.com tend to be best.

With a general email address, if someone leaves your employ, another employee can seamlessly take over that email address. A username like admin, webmaster, or even hello is far, far better than cutiepie or the like, even if you’re in a playful industry that caters to kids. After all, your bank and banker aren’t.

Build Credit for Your Business with Records Consistency

Keep your records consistent! This includes your online records. LexisNexis and the SBFE (Small Business Financial Exchange) are looking at everything, so it had better match.

Inconsistent records will lead to a denial due to fraud because that’s how lenders interpret inconsistencies. This is a cause of denials which is in the business owner’s hands. You have the ability to change and correct this.

This means your business name, address, phone number – everything! – must look the same in these places and more:

  • Every place your business has an online presence (your website, Yelp, SoTellUs, etc.)
  • IRS records
  • Your business’s records with Dun & Bradstreet, Experian, and Equifax
  • All licenses needed to run your business
  • Incorporation documents

Copy/paste this information; don’t chance it with retyping.

Starter Vendor Credit

First you ought to build tradelines that report. Then you’ll have an established credit profile, and you’ll get a business credit score.

And with an established business credit profile and score you can begin to get credit for numerous purposes, and from all sorts of places.

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

But to start with, what is trade credit? These trade lines are credit issuers who give you starter credit when you have none now. Terms are generally Net 30, rather than revolving.

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

Details

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

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

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

Vendor Credit — It Helps

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

As you get starter credit, you can also start to get credit from retailers. Here are some stellar choices from us: https://www.creditsuite.com/blog/5-vendor-accounts-that-build-your-business-credit/

Fleet Credit

Fleet credit is from service providers where you can buy fuel, and fix and take care of vehicles. You must use your SSN and date of birth on these applications for verification purposes. For credit checks and guarantees, make sure to apply using the business’s EIN.

Keep your business protected with our professional business credit monitoring.

More Universal Cash Credit

These are companies such as Visa and MasterCard. You must use your Social Security Number and date of birth on these applications for verification purposes. For credit checks and guarantees, use your EIN instead.

These are commonly MasterCard credit cards.

Monitor Your Business Credit

Know what is happening with your credit. Make sure it is being reported and fix any mistakes ASAP. Get in the practice of checking credit reports. Dig into the specifics, not just the scores.

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

Update Your Records

Update the relevant information if there are errors or the info is incomplete. At D&B, you can do this at: https://www.dnb.com/duns-number.html.  For Experian, go here: www.experian.com/small-business/business-credit-information.jsp. So, for Equifax, go here: www.equifax.com/business/small-business.

Fix Your Business Credit

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

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

Disputes

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

Fixing credit report inaccuracies also means you precisely itemize any charges you challenge. Make your dispute letter as clear as possible. Be specific about the issues with your report. Use certified mail to have proof that you sent in your dispute.

A Word about Business Credit Building

Always use credit sensibly! Never borrow beyond what you can pay back. Track balances and deadlines for repayments. Paying on time and completely does more to increase business credit scores than just about anything else.

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

The company’s EIN connects to high scores and loan providers won’t feel the need to ask for a personal guarantee.

Build Credit for Your Business: Takeaways

Business credit is an asset which can help your business for many years to come. Learn more here and get started toward establishing company credit.

The post It’s Time to Build Credit for Your Business appeared first on Credit Suite.

5 Unwise Ways to Use a Business Line of Credit

Are you on the brink of taking your business to the next level but need an injection of cash? A business line of credit may be the right solution. Once approved, you’ll have access to funds that you can withdraw on an as-needed basis (up to your credit limit). Of course, you’ll eventually have to pay back everything you borrowed plus fees and interest. So how can you best use a business credit line and avoid getting in over your head? Sometimes it helps to know what NOT to do. Here are five unwise ways to use a business lines of credit that you should definitely avoid. 

#1 Cover personal expenses

This is a big one, hence, the number one ranking. If you take out a business line of credit, you may be tempted to use some of the proceeds for personal reasons. Maybe you need a little bit to make ends meet or have been waiting for an opportunity to book a getaway? That’s usually not a good idea. 

Most lenders of business credit lines prohibit borrowers from using the money for personal expenses. If your lender finds out that you broke the terms and conditions agreement and used the money for personal reasons, you could face undesirable consequences — such as the entire balance becoming due early. 

Further, the purpose of the business credit line is to enable you to invest in your business so it grows, is more profitable, and is able to pay back the money you borrow. When you use the money for personal reasons, it’s not helping those causes. So when it comes to a business line of credit, be sure to keep it strictly business. 

Demolish your funding problems with 27 killer ways to get cash for your business.

#2 Pay for routine expenses

The best use of a business line of credit is to invest it into your business so it can grow. How? Buying inventory, launching a marketing campaign, and buying equipment are all great examples. 

In all of these scenarios, the money you spend should have a good chance of increasing the amount of revenue you earn. In theory, this approach can help you get off the hamster wheel of not having surplus money which causes you to need loans in the first place.

On the other hand, if you are spending borrowed money (which comes with interest charges and fees) to pay routine expenses like rent or utility bills, they are costing you more without offering returns. This can be a slippery slope you want to avoid. 

#3 Borrow more than you can repay

When taking out a business credit line, it’s important to consider how much you can reasonably afford to repay. It can be tempting to take as much as you can get and hope for the best. However, a better route is to look at your historical income alongside your projections to figure out what repayment amount you can comfortably afford. If you are expecting a revenue increase, it’s often best to base the amount you can repay on conservative ROI estimations to be sure you can afford the payments. 

#4 Withdraw the funds before you need them

One of the biggest benefits of a business credit line over a loan is that you only pay interest once you withdraw money from the credit line. When you don’t need a lump sum all at once, you can save by withdrawing the funds as you need them. 

For example, say that you need $10,000 to buy inventory but want to buy it in four stages that cost $2,500 each. You could potentially save by getting a credit line and withdrawing the funds as you need them versus getting the whole $10,000 upfront and paying interest from day one. However, you will have to compare the overall cost of the credit offerings available to you to see which is a better deal. 

The bottom line? If you don’t need all the money upfront, don’t withdraw it until you need it!

Demolish your funding problems with 27 killer ways to get cash for your business.

#5 Charge unneeded business expenses

When money becomes available to you, it can get the wheels of your imagination turning. You may start thinking about office upgrades, fancy dinners out with the team, or a new tailored suit. While all of these expenses are for the business, they are not necessary to grow and don’t provide a meaningful ROI. When the line of credit is fully withdrawn, you don’t want to be left regretful, wondering where it all went. Be sure to create a plan for how you will spend the money for strategic purposes that tie directly to growth. 

Frequently asked questions about business lines of credit

Now, here are answers to frequently asked questions about business lines of credit. 

What is the difference between a secured and an unsecured business line of credit?

Business lines of credit can be secured or unsecured. When secured, it means that you have to offer up some collateral in exchange for the loan. For example, you could provide assets such as inventory, equipment, or buildings. If you default when making repayments on the credit line, your lender can then seize your assets and sell them to pay off the loan. 

With an unsecured business credit line, you are approved based on your credit and financial profiles. They trust that you will repay the loan. If you don’t, they can’t directly seize any of your property. However, defaulting on a loan will hurt your credit and can result in a lawsuit where they sue you to recover their losses. 

Should I get a revolving line of credit?

A revolving line of credit enables you to borrow money from your credit line, pay it back, and then borrow it again (similar to a credit card). However, credit lines often have higher credit limits and lower interest rates than credit cards. If you need a larger amount of working capital on an ongoing basis, a revolving business line of credit can be a helpful solution. 

Explore other small business loan options. 

Demolish your funding problems with 27 killer ways to get cash for your business.

Borrow for your business with confidence!

If a business credit line sounds like the right move for your business, the next step is to get approved. What are the common business line of credit requirements? In most cases, you will need at least six months to a year in business and $25,000 in annual revenue. Additionally, you’ll likely need to have a “fair” personal credit score of 580 or higher. Some lenders will want to check your business credit, and if you don’t have any history, will require a higher personal credit score. Keep in mind that requirements and terms can vary from one lender to the next so it’s smart to shop around and compare offers!

Business Lines of Credit Credit Suite

 

Author bio: Jessica Walrack is a professional writer who specializes in business and personal finance. You can find her work featured on MSN Money, The Simple Dollar, Bankrate, and more.

The post 5 Unwise Ways to Use a Business Line of Credit appeared first on Credit Suite.

How to Build EIN Credit for Your Business

Do You Know How to Build EIN Credit?

Yes, it’s really possible to learn how to build EIN credit for your business.

But let’s start with some definitions and background on business credit.

Business Credit

This is credit in a business’s name. It is not tied to the owner’s creditworthiness. Instead, business credit scores depend on how well a company can pay its bills. Hence consumer and business credit scores can vary dramatically.

Business Credit Benefits

There are no demands for a personal guarantee. You can quickly get business credit regardless of personal credit quality. And there is no personal credit reporting of business accounts. Business credit utilization won’t affect your consumer FICO score. Plus the business owner isn’t personally liable for the debt the business incurs. This can be true for you as you build EIN credit for your business.

Another advantage is that even startup businesses can do this. Visiting a bank for a business loan can be a recipe for frustration. But building business credit, when done correctly, is a plan for success.

Consumer credit scores depend on payments but also various other factors like credit utilization percentages.

But for company credit, the scores truly just hinge on if a small business pays its invoices timely.

Business Credit Details

Being accepted for business credit is not automatic. Building business credit requires some work. Some of the steps are intuitive, and some of them are not.

Vendors are a big component of this process.

Doing the steps out of sequence results in repetitive rejections. No one can start at the top with business credit. For example, you can’t start with retail or cash credit from your bank. If you do, you’ll get a rejection 100% of the time.

Company Fundability to Build EIN Credit

A company must be fundable to lending institutions and vendors.

That is why, a small business needs a professional-looking website and email address. And it needs to have site hosting from a company such as GoDaddy.

Additionally, business phone numbers need to have a listing on 411. You can do that here: https://www.listyourself.net.

Also, the business telephone number should be toll-free (800 exchange or the equivalent).

A company also needs a bank account devoted strictly to it, and it must have every one of the licenses essential for running.

Licenses

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

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

Keep your business protected with our professional business credit monitoring.

How to Build EIN Credit: Working with the Internal Revenue Service

Visit the Internal Revenue Service website and get an EIN for the company. They’re free of charge. Select a business entity like corporation, LLC, etc.

A small business may get started as a sole proprietor. But they absolutely need to change to a form of corporation or an LLC.

This is to decrease risk. And it will make the most of tax benefits.

A business entity matters when it involves taxes and liability in the event of a lawsuit. A sole proprietorship means the business owner is it when it comes to liability and taxes. No one else is responsible.

The best thing to do is to incorporate. You should only look at a DBA as an interim step on the way to incorporation.

How to Build EIN Credit: Getting Started

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

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

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

How to Build EIN Credit with Starter Vendors

First you should build tradelines that report. Then you’ll have an established credit profile, and you’ll get a business credit score.

And with an established business credit profile and score you can begin to get credit for numerous purposes, and from all sorts of places.

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

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

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

Details

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

To launch your business credit profile the proper way, you should get approval for vendor accounts that report to the business credit reporting bureaus. When that’s done, you can then use the credit.

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

Vendor Credit – It Makes Sense

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

As you get starter credit, you can also start to get credit from retailers. Here are some stellar choices from us: https://www.creditsuite.com/blog/5-vendor-accounts-that-build-your-business-credit/ 

Uline

Uline is a true starter vendor. You can find them online at www.uline.com. They sell shipping, packing, and industrial supplies, and they report to Dun & Bradstreet and Experian. You MUST have a D-U-N-S number and an EIN before starting with them. They will ask for your corporate bank information. Your company address must be uniform everywhere. You need for an order to be $50 or more before they’ll report it. Your first few orders may need to be prepaid initially so your business can get approval for Net 30 terms.

  • How to apply with them:
  • Add an item to your shopping cart
  • Go to checkout
  • Select to Open an Account
  • Select to be invoiced

Marathon

Check out starter vendor Marathon. Marathon Petroleum Company provides transportation fuels, asphalt, and specialty products throughout the United States. Their comprehensive product line supports commercial, industrial, and retail operations. This card reports to Dun & Bradstreet, Experian, and Equifax. Before applying for multiple accounts with WEX Fleet cards, make sure to have enough time in between applying so they don’t red-flag your account for fraud.

To qualify, you need:

  • Entity in good standing with Secretary of State
  • EIN number with IRS
  • Business address- matching everywhere.
  • D-U-N-S number
  • Business License (if applicable)
  • And a business bank account
  • Business phone number listed on 411

Your SSN is required for informational purposes. If concerned they will pull your personal credit talk to their credit department before applying. You can give a $500 deposit instead of using a personal guarantee, if in business less than a year. Apply online. Terms are Net 15. Get it here: https://www.marathonbrand.com/.

Grainger Industrial Supply

Grainger Industrial Supply is likewise a true starter vendor. You can find them online at www.grainger.com. They sell hardware, power tools, pumps and more. They also do fleet maintenance. And they report to D&B. You need a business license, EIN, and a D-U-N-S number.

  • To qualify, you need the following:
  • A business license (if applicable)
  • An EIN number
  • A company address matching everywhere
  • A corporate bank account
  • And A D-U-N-S number from Dun & Bradstreet

Your business entity must be in good standing with the applicable Secretary of State. If your business doesn’t have established credit, they will require additional documents. So, these are items like accounts payable, income statement, balance sheets, and the like.

Apply online or over the phone.

Accounts That Do Not Report

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

You can always ask non-reporting accounts for trade references. And also, credit accounts of any sort ought to help you to better even out business expenditures, thus making financial planning simpler.

Store Credit

Store credit comes from a variety of retail service providers.

You must use your SSN and date of birth on these applications for verification purposes. For credit checks and guarantees, use the company’s EIN on these credit applications.

Fleet Credit

Fleet credit is from service providers where you can purchase fuel and fix and take care of vehicles. You must use your SSN and date of birth on these applications for verification purposes. For credit checks and guarantees, make certain to apply using the company’s EIN.

Keep your business protected with our professional business credit monitoring.

Cash Credit

You must use your SSN and date of birth on these applications for verification purposes. For credit checks and guarantees, use your EIN instead.

These are frequently MasterCard credit cards.

Monitor Your Business Credit

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

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

Update Your Information

Update the info if there are inaccuracies or the data is incomplete.

Fix Your Business Credit

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

Disputes

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

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

Keep your business protected with our professional business credit monitoring. 

A Word about How to Build EIN Credit

Always use credit smartly! Never borrow more than what you can pay off. Monitor balances and deadlines for repayments. Paying on schedule and fully does more to increase business credit scores than nearly anything else.

Building small business credit pays off. Excellent business credit scores help a small business get loans. Your lender knows the small business can pay its financial obligations. They know the company is for real.

The small business’s EIN links to high scores and loan providers won’t feel the need to request a personal guarantee.

How to Build EIN Credit: Takeaways

Business credit is an asset which can help your small business for years to come. Learn more here and get started toward establishing small business credit.

The post How to Build EIN Credit for Your Business appeared first on Credit Suite.

Financial Debt Help – Debt Consolidation Loans Versus Credit Counseling

Financial Debt Help – Debt Consolidation Loans Versus Credit Counseling

Financial debt loan consolidation financings are a diy procedure, whereas debt therapy aids you to make economic choices. You most likely do not require the solutions of a credit scores therapist if you currently have a monetary strategy. If you have concerns or require assistance with a budget plan, a credit score therapist can supply useful assistance.

What Debt Consolidation Loans Can Do For You

Financial obligation combination fundings can decrease the rate of interest you are paying on unsafe financial debt, like charge card, as well as reduced your month-to-month repayments. You can pick to make use of an equity financing with its tax obligation insurance deductible rate of interest or an individual funding. Lots of loan providers supply affordable prices, which you can locate by investigating firms on the internet.

A financing provides you extra control over rate of interest as well as settlement timetables than with various other choices. Not just can you obtain reduced prices, yet you can choose to take longer than 5 years to repay your principal. By taking much longer, your settlements are reduced, offering you economic breathing space.

A financial debt loan consolidation funding ought to be component of a bigger monetary strategy that consists of spending plan preparation and also lengthy term monetary objectives. You might discover on your own in much deeper economic problem by taking out a lending if you do not have these points in location.

What Credit Counseling Can Do For You

In a non-judgmental environment, a credit score therapist can assist you specify your monetary objectives as well as story a program to obtain there. They might recommend a financial debt combination lending, financial obligation combination program, or various other monetary choices.

Credit scores therapists know with all sorts of economic programs, so they might aim you to unfamiliar resources for assistance. They might likewise assist you recognize instant cost savings by assisting you to decrease expenditures or reduced rates of interest on several of your costs.

Debt therapy is actually a financial investment in your monetary future. You obtain a fast refresher course on your funds with functional solutions. By obtaining skilled assistance, you can conserve your credit rating, conserving you thousands.

Financial obligation debt consolidation car loans are a diy procedure, whereas credit score therapy aids you to make monetary choices. If you have concerns or require assistance with a budget plan, a credit rating therapist can use useful assistance.

Financial obligation loan consolidation financings can lower the rate of interest price you are paying on unprotected financial debt, like credit report cards, as well as reduced your month-to-month settlements. They might recommend a financial debt loan consolidation financing, financial debt combination program, or various other monetary choices.

The post Financial Debt Help – Debt Consolidation Loans Versus Credit Counseling appeared first on Get Funding For Your Business And Ventures.

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Get Business Credit Cards for People with Poor Credit

Yes, There are Business Credit Cards for People with Poor Credit

We researched a lot of business credit cards for people with poor credit, for you. So, here are our choices.

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

This shows that you can get a lot more money with company credit cards.

And you are not going to need collateral, cash flow, or financials in order to get small business credit.

Business Credit Card Benefits

Benefits can vary. So, make sure to pick the benefit you would prefer from this selection of alternatives.

And always check rates on the appropriate website. a credit card issuer’s website is always going to have the most current, correct rates and terms.

Trustworthy Business Credit Cards for People with Poor Credit, Not Calling for a Personal Guarantee

Brex Card for Startups

Look into the Brex Card for Startups. It has no yearly fee.

You are not going to have to provide your Social Security number to apply. And you are not going to need to supply a personal guarantee. Rather, they are going to take your EIN.

Nevertheless, they do not accept every industry.

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

To determine creditworthiness, Brex will check a company’s cash balance, spending patterns, and investors.

You can get seven times the points on rideshare. Get four times the points on travel. Likewise, get triple points on restaurants. And get double points on recurring software payments. Get equivalent points on everything else.

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

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

Secure Business Credit Cards for People with Poor Credit

Capital One® Spark® Classic for Business

Have a look at the Capital One® Spark® Classic for Business. It has no annual fee. There is no introductory APR offer. The regular APR is a variable 26.99%. You can earn unlimited 1% cash back on every purchase for your company, without any minimum to redeem.

While this card is within reach if you have average credit scores, beware of the annual percentage rate. However if you can pay on schedule, and in full, then it is a bargain.

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

Score the best business credit cards for your business.  Check out our professional research.

Fleet Credit: We Have Excellent Gas Credit Cards for People with Poor Credit Via Our Business Credit Builder

Our Business Credit Builder is chock full of amazing business credit cards. And that includes gas credit cards for people with poor credit! These cards are for starter vendors. We know that they report to business credit reporting agencies. Whether you are new to business credit building, or have been at it for a while, it pays to get these cards.

Marathon

Marathon Petroleum Company provides transportation fuels, asphalt, and specialty products throughout the United States. Their comprehensive product line supports commercial, industrial, and retail operations. This card reports to Dun & Bradstreet, Experian, and Equifax.

But before applying for multiple accounts with WEX Fleet cards, make sure to leave enough time in between applying so they do not red-flag your account for fraud.

Qualifying for Marathon

To qualify, you are going to need:

  • Your business entity must be in good standing with the applicable Secretary of State
  • Plus, you are going to need an EIN number with the IRS
  • Your business address- it must be matching everywhere
  • A D-U-N-S number from Dun and Bradstreet
  • All business licenses, if applicable
  • Also, your business bank account
  • Your business phone number listed on 411

You must supply your Social Security Number for informational purposes. If you are concerned that they are going to pull your personal credit, then be sure to talk to their credit department before applying. You can give a $500 deposit instead of using a personal guarantee if you have been in business less than a year. You can apply online. The terms are Net 15. You can get it here: marathonbrand.com.

Score the best business credit cards for your business.  Check out our professional research.

76

76 is owned by Phillips 66 Company. They sell gas in more than 1,800 retail fuel sites in the United States. This card reports to Dun & Bradstreet, Experian, and Equifax. You can use this card at any P66, 76, or Conoco fueling location.

Qualifying for 76

To qualify, you are going to need:

  • Your business entity must be in good standing with the applicable Secretary of State
  • Plus, you are going to need an EIN number with the IRS
  • Your business address- it must be matching everywhere
  • A D-U-N-S number from Dun and Bradstreet
  • All business licenses, if applicable
  • Also, a business bank account
  • Your business phone number listed on 411

Your Social Security Number is necessary for informational purposes. If you are concerned that they are going to pull your personal credit, talk to their credit department before applying. If you are not approved based on business credit history or you have been in business less than one year, then a $500 deposit is needed or a personal guarantee (PG). You can apply online or over the phone.

The terms are Net 15. You can get it here: 76fleet.com.

Wex Fleet Card

Wrights Express (WEX Card) offers universal fleet cards, heavy truck cards, and universally accepted business fleet cards. These cards have features that support small business, including a rewards program.

But before applying for multiple accounts with WEX Fleet cards, make sure to leave enough time in between applying. This way, they would not red flag your account for fraud. This card reports to Dun & Bradstreet, Experian, and Equifax.

Qualifying for the Wex Fleet Card

To qualify, you need:

  • Your business entity must be in good standing with the applicable Secretary of State
  • Plus, you are going to need an EIN number with the IRS
  • Your business address- it must be matching everywhere
  • A D-U-N-S number from Dun and Bradstreet
  • All business licenses, if applicable
  • Also, a business bank account
  • Your business phone number listed on 411

If you do not get an approval based on business credit history, or have not been in business for one year, then a $500 deposit is needed or a personal guarantee. You can apply online or over the phone.

The terms are Net 15 (for the WEX Fleet Card), Net 26, and Revolving (for the WEX Flex Card). You can get it here: wexinc.com/solutions/fleet-management.

Score the best business credit cards for your business.  Check out our professional research.

The Very Best Small Business Credit Cards for People with Poor Credit – You!

Your straight-out ideal company credit cards depend upon your individual circumstances.
Just you can choose which features you want and need. So, to do your research. What is outstanding for you could be disastrous for another person.

And, as always, make sure to build business credit in the recommended order for the best, speediest benefits. And then your poor credit is not going to matter at all.

The post Get Business Credit Cards for People with Poor Credit appeared first on Credit Suite.

5 Hacks to Get a Credit Score Increase for Your Business

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

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

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

Keep your business protected with our professional business credit monitoring.

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

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

Hack #1: Proper Setup

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

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

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

Contact Information

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

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

Keep your business protected with our professional business credit monitoring.

EIN

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

Incorporate

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

offers some protection from liability. 

Business Bank Account

You have to open a separate, dedicated business bank account.  There are a few reasons for this.  First, it will help you keep track of business finances.  It will also help you keep them separate from personal finances for tax purposes, and some creditors require a separate account. Also, it is a requirement for a merchant account, which allows you to accept payments via credit card.

Hack #2: Add Accounts That Report

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

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

 

Hack #3: Pay bills on time!

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

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

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

Keep your business protected with our professional business credit monitoring.

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

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

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

 

 

Hack #5: Work With a Business Credit Expert

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

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

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

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

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

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

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

5 Hacks to Get a Credit Score Increase for Your Business

It’s easy to find quick tips on how to increase credit score on your personal credit report.  You won’t find as much about business credit score at all, let alone how to get a credit score increase. Many business owners do not even know a business can have its own credit score, while others think … Continue reading 5 Hacks to Get a Credit Score Increase for Your Business

Do You Need Business Credit Cards for Bad Credit?

Yes, there are Credit Cards for Bad Credit

Are you looking for credit cards for bad credit?

We researched lots of company credit cards for you. So, here are our choices.

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

This shows you can get a lot more money with company credit cards.

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

Business Credit Cards for Bad Credit: Benefits

Benefits can vary. So, make sure to pick the benefit you would prefer from this selection of alternatives.

And always check rates on the appropriate website to get current specifics.

Trustworthy Credit Cards for Bad Credit, Not Calling for a Personal Guarantee

Brex Card for Startups

Look into the Brex Card for Startups. It has no yearly fee.

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

Nevertheless, they do not accept every industry.

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

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

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

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

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

Secure Corporate Credit Cards for Bad Credit

Capital One® Spark® Classic for Business

Have a look at the Capital One® Spark® Classic for Business. It has no annual fee. There is no introductory APR offer. The regular APR is a variable 26.99%. You can earn unlimited 1% cash back on every purchase for your company, without any minimum to redeem.

While this card is within reach if you have average credit scores, beware of the annual percentage rate. However if you can pay on schedule, and in full, then it’s a bargain.

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

 

Score the best business credit cards for your business.  Check out our professional research.

Gas Credit Cards for Bad Credit

You can get gas cards via our Business Credit Builder.

Our Business Credit Builder is full of amazing business credit cards. And that includes gas cards! These cards are starter vendors. We know they report to business credit reporting agencies. Whether you’re new to business credit building, or have been at it for a while, it pays to get these cards.

Marathon

Marathon Petroleum Company provides transportation fuels, asphalt, and specialty products, throughout the United States. Their comprehensive product line supports commercial, industrial, and retail operations. This card reports to Dun & Bradstreet, Experian, and Equifax. Before applying for multiple accounts with WEX Fleet cards, make sure to have enough time in between applying so they don’t red-flag your account for fraud.

Your Social Security Number is necessary for informational purposes. If concerned they will pull your personal credit talk to their credit department before applying. You can give a $500 deposit instead of using a personal guarantee, if in business less than a year. Apply online. Terms are Net 15.

Qualifying for Marathon Credit Card for Bad Credit

In order to qualify, you need:

  • Entity in good standing with Secretary of State
  • EIN number with IRS
  • Business address- it has to be matching everywhere.
  • D-U-N-S number
  • Business License- if applicable
  • Also, a business Bank account
  • Business phone number listed on 411

Get it here: marathonbrand.com.

76

76 is owned by Phillips 66 Company. They sell gas in more than 1,800 retail fuel sites in the United States. This card reports to Dun & Bradstreet, Experian, and Equifax. And it can be used at any P66, 76, or Conoco fueling location.

Your Social Security Number is necessary for informational purposes. If concerned they will pull your personal credit, talk to their credit department before applying. If not approved based on business credit history or been in business less than 1 year, then a $500 deposit is needed or a personal guarantee (PG). Apply online or over the phone. Terms are Net 15.

Qualifying for Credit Cards for Bad Credit from 76

In order to qualify, you need:

  • Entity in good standing with Secretary of State
  • EIN number with IRS
  • Business address- it has to be matching everywhere
  • D-U-N-S number
  • Business license- if applicable
  • Also, a business bank account
  • Business phone number listed on 411

Get it here: 76fleet.com.

Score the best business credit cards for your business.  Check out our professional research.

Wex Fleet Card

Wrights Express (WEX Card) offers universal fleet cards, heavy truck cards, and universally accepted business fleet cards. These cards have features that support small business, including a rewards program.

Before applying for multiple accounts with WEX Fleet cards, make sure to have enough time in between applying. This way, they won’t red flag your account for fraud. This card reports to Dun & Bradstreet, Experian, and Equifax.

If you’re not approved based on business credit history, or been in business a 1 year, then a $500 deposit is needed or a personal guarantee. Apply online or over the phone. Terms are  Net 15 for a WEX Fleet Card, Net 26, and Revolving for a WEX Flex Card.

Qualifying for a Wex Fleet Card

In order to qualify, you need:

  • Entity in good standing with Secretary of State
  • EIN number with IRS
  • Business address- it has to be matching everywhere.
  • D-U-N-S number
  • Business License- if applicable
  • And a business Bank account
  • Business Phone Number Listed in 411

Get it here: wexinc.com/solutions/fleet-management

Fleet Credit Can Help with More than Fuel and Maintenance

All forms of business credit can help you build good business credit scores, as business credit is mainly based on your payment history. As a result, fleet credit can help your business eventually get funding, such as loans and other forms of financing.

Score the best business credit cards for your business.  Check out our professional research.

The Very Best Small Business Credit Cards for You

Your straight-out ideal company credit cards depend upon your credit history and scores.

Just you can choose which features you want and need. So, to do your research. What is outstanding for you could be disastrous for another person.

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

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