3 Ways to Build Business Credit

What are the Ways to Business Credit?

Business credit is credit you get in the name of a business. It does not attach to the business owner’s SSN. It is not dependent on the entrepreneur’s ability to pay debts. But it does depend on whether the business can pay its bills. Better business credit means your business can get more funding when it needs it, at better rates and terms than if you don’t work to build your business credit. Here are 3 ways to build business credit.

Business Credit is Not Automatic

You have to actively work to build it. Did you know over 9 out of every 10 vendors do not report to the business credit reporting agencies, Dun & Bradstreet, Experian, and Equifax? Therefore, except for requesting a trade reference, those nonreporting vendors don’t help you build business credit. So, what do you do? The following actions will help you no matter which method you use to build your company’s business credit.

Check Out Ways to Build Business Credit

Improving business credit scores means paying your bills on time. It also means paying with credit rather than cash when you can. This increases the number of accounts and purchases on your reports. And use the credit you already have regularly, so those accounts are not eventually closed due to inactivity.

A business starts building a brand-new credit profile much the same as a consumer does. Both start with no credit profile. The business gets approval for new credit reporting to the business credit reporting agencies. The business uses the credit and pays the bill timely. This establishes a positive business credit profile. As the business continues using credit and pays bills timely it will qualify for more credit.

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

The First of 3 Ways to Build Business Credit: Vendor Accounts

One of the three ways to build business credit is with starter vendor accounts. These are companies which will approve your business with little fuss. A vendor line of credit is when a company (vendor) extends a line of credit to your business on Net 15, 30, 60 or 90 day terms. Hence you can buy their products or services up to a maximum dollar amount. And you have 15, 30, 60 or 90 days to pay the bill in full.

Since vendor accounts generally don’t ultimately come from a bank, like major credit cards (Visa, etc.) do, you can try to apply without using your Social Security number. Always apply first without using your SSN. Some vendors will request it and some will even tell you on the phone they must have it. But try to submit first without it.

Starter Vendors and D&B

When your first Net 30 account reports your tradeline to Dun & Bradstreet, the D-U-N-S system will automatically activate your file if it isn’t active already. This is also true for Experian and Equifax. Applying without your SSN means the vendor won’t pull your personal credit. As a result, you will be building business credit and not personal credit!

You need at least 3 vendor accounts reporting to move on. It can take a billing cycle to get your payment to show up in D&B’s system. Some vendors may want you to prepay or may have a minimal order requirement before they reporting to a business CRA. They may have minimal FICO score requirements as well. But you can often get around a minimum FICO requirement by working with a guarantor with good personal credit.

One of the Ways to Build Business Credit is to Go Beyond Starter Vendor Accounts

As you continue to prove yourself and your business, it becomes possible to qualify for revolving store credit. You can also qualify for fleet credit to buy fuel or repair and maintain vehicles. And you can even qualify for more universal cash credit from Visa and MasterCard and the like. So don’t stop with starter vendor accounts!

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

The Second of 3 Ways to Build Business Credit: Our Credit Line Hybrid

You can get a line of credit for up to $150,000. This is no doc financing. Pay 0% for up to 18 months. It helps build business credit because your payments are reported. You must have a 680 or better FICO score. For more information, surf on over to my.creditsuite.com/qualifier-form.

This program works to help clients get funding based strictly on personal credit quality. Our lenders will not ask for financials, bank statements, business plans, resumes, or any of the other burdensome document requests which most conventional lenders demand.

Our lenders will review your credit report to ensure there are no derogatory items on it. To get approval, you shouldn’t have any open collections, late payments, tax liens, judgments, or the like on your report.

To qualify you should also have fewer than 5 inquiries on your credit report, within the last 6 months. You should have established credit. This includes open revolving accounts now reported on your credit report, with balances below 40% of your limits.

The Third of 3 Ways to Build Business Credit: Using the D&B CreditBuilder

Dun & Bradstreet has their own credit builder. It can help you get better business credit, but only with D&B. Dun & Bradstreet is huge, so concentrating just on them could be an effective strategy.

D&B offers advice for building business credit. A lot of it should be familiar. Their seven steps are to establish your business as a separate entity, register for a D-U-N-S number, get an EIN from the IRS, open a bank account for your business, make on-time payments, ask vendors to supply trade references to Dun & Bradstreet, and monitor your business credit scores and ratings.

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

D&B’s CreditBuilder Plus

CreditBuilder Plus is essentially a monitoring service exclusive to Dun & Bradstreet. One major advantage is getting a D-U-N-S number faster than most businesses do. You can use it to get alerts when others request your business credit report. And you can get a D-U-N-S Number and business credit file in 5 business days or less.

Plus you can get unlimited access to your D&B scores and ratings. And you can add 12 positive payment experiences to your business credit file and monitor your CreditBuilder account email address to know if it may have been compromised online.

3 Ways to Build Your Business Credit: Takeaways

Getting starter business credit means your business has more chances to get funding, and at the best terms and rates. Building business credit in any manner starts with fundability. Set up your business credibly to satisfy lender requirements. Working with starter vendors is a great way to get going. Starter vendors will approve you for lines of credit with little fuss.

Our credit line hybrid is the most excellent of these three ways to build business credit. Your payments are reported, and you won’t have to provide extensive documentation. Using the D&B CreditBuilder is another fine way to build your first business credit. One massive advantage to CreditBuilder is getting a D-U-N-S faster than other businesses.

But no matter which method(s) you choose, let’s take the next step together.

The post 3 Ways to Build Business Credit appeared first on Credit Suite.

Get 0% APR Business Credit Cards

0% APR Business Credit Cards Can Be Within Your Reach

Are you an entrepreneur looking for 0% APR Business Credit Cards? Check out our choices – you can make it work for your business.

We looked into lots of low and zero APR business credit cards for you. So, here are our choices.

0% APR Business Credit Cards Can Be a Great Choice

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

This reveals you can get a lot more cash with business bank card.

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

Company Credit Card Benefits

Benefits can vary. So, see to it to select the benefit you like from this selection of alternatives.

And always check rates on the appropriate sites.

0% APR Business Credit Cards: Introductory APR– Pay Zero!

Blue Business® Plus Credit Card from American Express

Take a look at the Blue Business® Plus Credit Card from American Express. It has no yearly charge. There is a 0% introductory APR for the initial year. Afterwards, the APR is a variable 13.24– 19.24%.

Get double Membership Rewards® points on everyday business purchases like office supplies or client suppers for the initial $50,000 spent each year. Get 1 point per dollar later on.

You will need good to superb credit scores to qualify.

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

American Express ® Blue Business Cash Card

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

It has no annual fee. There is a 0% initial APR for the first year. Afterwards, the APR is a variable 13.24– 19.24%.

You will need great to excellent credit to qualify.

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

Terrific Cards for Cash Back

Boosted Cash Back Categories

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

Take a look at the Bank of America ® Business Cash Rewards MasterCard ® credit card. Get an 0% introductory APR for the first 9 billing cycles of the account. Afterwards, the APR is 12.24%– 22.24% variable. There is no annual charge. You can get a $300 statement credit deal.

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

You will need excellent credit scores to qualify.

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

Bonus Categories

Ink Business Cash℠ Credit Card

Take a look at the Ink Business Cash℠ Credit Card. It has no yearly fee. There is a 0% initial APR for the first year. After that, the APR is a variable 13.24– 19.24%. You can get a $750 one-time cash bonus after spending $7,500 in the first 3 months from account opening.

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

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

You will need outstanding credit to get approved for this card.
Find it here: https://creditcards.chase.com/business-credit-cards/ink/cash?iCELL=61GF

Flat-Rate Rewards

Capital One ® Spark® Cash for Business

Take a look at the Capital One ® Spark® Cash for Business card. It has an introductory $0 annual charge for the initial year. After that, this card costs $95 annually. There is no initial APR deal. The regular APR is a variable 20.99%.

You can get a $500 one-time cash bonus after spending $4,500 in the first three months from account opening. Get unlimited 1.5% cash back with Cash Select.

You will need great to impressive credit to qualify.

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

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

Flat-Rate Rewards and No Yearly Fee

Discover it ® Business Card

Check out the Discover it ® Business Card. It has no yearly fee. These are 0% APR business credit cards for one year. Afterwards the regular APR is a variable 14.49– 22.49%.

Get unlimited 1.5% cash back on all purchases, without any category constraints or bonuses. They double the 1.5% Cashback Match at the end of the initial year. There is no minimal spend requirement.

You can download transactions quickly to Quicken, QuickBooks, and Excel. Note: you will need good to outstanding credit to get approved for this card.
https://www.discover.com/credit-cards/business/

Irresistible Cards for Jackpot Rewards That Never Expire

Capital One ® Spark® Cash Select for Business

Take a look at the Capital One ® Spark® Cash Select for Business card. It has no yearly fee. You can get 1.5% cash back on every purchase. There is no limitation on the cash back you can earn. Additionally earn a one-time $200 cash bonus once you spend $3,000 on purchases in the very first 3 months. Rewards never expire.

Pay a 0% introductory APR for 9 months. Then pay 13.99%– 23.99% variable APR after that.

You will need good to outstanding credit scores to qualify.

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

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

Alternatives to 0% APR Business Credit Cards: Business Credit Cards for Extravagant Travel

Flat-rate Travel Rewards

Capital One ® Spark® Miles for Business

Take a look at the Capital One ® Spark® Miles for Business card. It has an initial annual fee of $0 for the initial year, which after that rises to $95. The regular APR is 20.99%, variable due to the prime rate. There is no introductory annual percentage rate. Pay no transfer costs. Late fees go up to $39.

This card is great for travel if your expenses do not fall under common reward categories. You can get unlimited double miles on all purchases, without any limitations. Earn 5x miles on rental cars and hotels if you book via Capital One Travel.

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

Earn 50,000 bonus miles if you spend at least $4,500 within 3 months of your rewards membership enrollment date

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

Bonus Travel Categories with a Sign-Up Deal

Ink Business Preferred ℠ Credit Card

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

Pay an annual fee of $95. Regular APR is 15.99– 20.499%, variable. There is no initial APR offer.

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

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

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

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

No Annual Fee

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

For no yearly fee while still getting travel rewards, take a look at this card from Bank of America. It has no annual fee and a 0% initial APR for acquisitions throughout the first 9 billing cycles. Afterwards, its regular APR is 12.24– 22.24% variable.

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

Get limitless 1.5 points for every $1 you spend on all purchases, anywhere, every time. And this is regardless of how much you spend.

Likewise earn 3 points per every dollar spent when you book your travel (automobile, hotel, airline) with the Bank of America ® Travel Center. There is no limit to the number of points you can get and points do not expire.

You can earn up to 75% more points on every purchase if you have a corporate checking account with Bank of America and qualify for Preferred Rewards for Business.

You will need superb credit scores to get this one (as in, 700s or better).
Find it here: https://www.bankofamerica.com/smallbusiness/credit-cards/products/travel-rewards-business-credit-card/

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

Alternatives to 0% APR Business Credit Cards: Safe Corporate Credit Cards for Fair Credit

Capital One® Spark® Classic for Business

Look at the Capital One® Spark® Classic for Business. It has no yearly cost. There is no introductory APR offer. The regular APR is a variable 26.99%. You can get unlimited 1% cash back on every purchase for your company, with no minimum to redeem.

While this card is available if you have average credit scores, beware of the APR. Nonetheless 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/

The Greatest 0% APR Business Credit Cards for You

Your straight-out best 0% APR business credit cards depend upon your credit history and scores.

Only you can pick which features you want and need. So, to do your research. What is terrific for you could be disastrous for another individual.

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

The post Get 0% APR Business Credit Cards appeared first on Credit Suite.

Business Credit Profile: Best Way to Raise Credit Score?

Your business credit profile is the overall picture of the creditworthiness of your business. Lenders look at it to determine whether or not they want to lend to you. Your business credit score is likely the most important piece of this. As such, it’s important to know the best way to raise credit score. You have a personal credit profile alsol, and that is considered by most lenders as well.

Total Business Credit Profile Management: The Sure-Fire Best Way to Raise Credit Score

In fact, many lenders look at your personal credit profile first. However, if you have a strong business credit profile, it can only help you. Your business credit score is a huge part of that, so you need to know the best way to raise credit score for business.

Best Way to Raise Credit Score: What Is a Credit Profile?

Of course, you cannot let the rest of your business credit profile go unattended. Before you can work to execute the best way to raise credit score, you have to understand and learn how to manage your total business credit profile.

Your business credit profile is everything the business credit reporting agencies have on your business. For example, your open trade accounts, payment history, how you stand up in relation to other businesses, and more. The top three business credit reporting agencies are Dun & Bradstreent, Experian, and Equifax. FICO also offers a business credit report known as the FICO SBSS.

Keep your business protected with our professional business credit monitoring.

When a potential lender looks at your business credit profit, it can pull from any of these. The report will contain a business credit score, but it will contain a lot more as well.

Best Ways to Raise Credit Score: What is a Business Credit Score

So, what exactly is a business credit score? It is similar to your personal credit score, but it is for your business. Unlike your personal credit score, it is connected to your EIN, not your social security number. It is a numeric rating assigned to your business that helps a lender determine how likely your business is to repay debt. The number is calculated based on a number of things. The most influential factor is your payment history.

The more positive payment history you have, the better. That means two things. First, the longer you have been paying accounts on time the better your credit score will be. Also, the more accounts you are paying on time the better your score will be.

Best Way to Raise Credit Score?

So, what is the best way to raise your business credit score? The simple answer is to increase positive payment history and reduce negative payment history. Let’s break it down further.

Add More Trade Accounts

It sounds simple, but it’s not really. Unlike personal credit, not all business credit accounts report to the business credit reporting agencies. With personal credit, your payments on accounts are automatically reported to personal credit.

You have to be intentional about finding business credit accounts that will report. This can take some time and digging. A business credit expert can come in really handy here. Most vendors do not make it easy for the average Joe to find out if they report or not. A business credit expert will likely have relationships with vendors that allow them to know or find out this information more easily.

Aside from this, you can talk to vendors you already have a relationship with. You can ask them to report your payments if they already extend you credit or net terms on invoices. If they do not, you can ask if they will, and if they will then report. They don’t have to , but if they do, this can be the best way to raise credit score quickly.

You can also talk to providers that you pay monthly. Everyone pays utilities, phone, and internet bills. Ask those providers to report your payments to the business credit reporting agencies. They do not have to, but they might. If they do, this is another great way to improve your business credit score.

Handle Accounts Responsibly

Handling your business responsibly in every way affects your entire business credit profile. However, handling your trade accounts responsibly by making consistent, on-time payments is the number one best way to increase credit score. After all, the business credit score tells lenders how likely you are to pay, and nothing predicts future behavior like current habits.

Monitor and Correct Your Business Credit Report

Sometimes the best way to raise your credit score is as simple as correcting mistakes. However, without credit monitoring, you cannot know what those mistakes are, or if there are any at all. Personal credit monitoring is easy. You can access a full, complete report annually for free. Not only that, there are a plethora of free apps that offer a peek at your credit score and summary report throughout the year.

Keep your business protected with our professional business credit monitoring.

That is not the case with your business credit report however. You have to pay to get a glimpse of it at all. Each of the big three offer monitoring options, for a fee. Credit Suite can help you monitor your business credit for a fraction of the price.

Business Credit Profile vs. Personal Credit Profile

To better understand the best way to raise credit score for your business, it can help to understand some of the differences between business credit profiles and personal profiles. There are many, but these specifically seem to cause a lot of misunderstanding and confusion among borrowers when they are denied funding.

Late Payments

Both business and personal credit reports are affected greatly by late payments. Yet, business credit scores are affected faster. Late payments are not reported to personal credit reports typically until they are 30 days past due. Late payments on business credit accounts are reported if only one day late.

Inquiries

Hard credit checks on your personal credit will lower your credit score. However, business credit reports are different. A credit check on your business credit profile does not affect your business credit score.

Data Reported

In addition to late payments being reported much more quickly, accounts on your business credit profile are listed by industry. In contrast, personal credit lists the name of the company that issues the credit.

Also, personal credit reports show the exact amounts of accounts, while business credit reports show rounded amounts. How long data stays on a personal credit report varies, but typically it’s the life of the file. Information stays on business credit reports an average of 3 years.

Keep your business protected with our professional business credit monitoring.

Also, with personal credit accounts, almost every account reports to the credit reporting agencies. In contrast, only about 7% of business credit accounts report to business credit reporting agencies. This is why you have to be intentional to get accounts reporting to business credit, and that is only one of many reasons working with a business credit expert is the way to go.

One last thing to note about business credit versus personal credit is this. While your business credit profile is totally separate from your personal credit profile and does not affect in any way, the reverse is not true. Your personal credit information can affect your business credit profile, and in some cases, even your business credit score.

What’s the Best Way to Raise Credit Score for Your Business?

There isn’t really one best way to raise credit score. In reality, the best way depends on what is pulling your score down to begin with. Is it a lack of sufficient history? Then you just have to give it time. Are there not enough accounts? You need to add more. Are you not paying on time? Start paying on time! Are there mistakes on your business credit report? Fix them. However, one thing is for sure. Whatever the problem is, paying your accounts consistently on-time will only raise your score. You cannot go wrong there.

The post Business Credit Profile: Best Way to Raise Credit Score? appeared first on Credit Suite.

What’s Luck Have to Do With It? 5 Credit Score Myths About Your Business

A strong business credit score does not just appear at the end of the rainbow. There are a lot of myths out there. So many so, that it can be difficult to separate reality from fiction. Don’t fall for these 5 credit score myths.

Don’t Believe These 5 Credit Score Myths When it Comes to Your Business

Most of the confusion comes from a lack of understanding about business credit scores. Many do not even know what it is, how you build it, or even that it exists. Let’s take a look at each of these common 5 myths about credit scores and clear up a few things.

5 Credit Score Myths: If You Have Business Debt, You Have a Business Credit Score

This may well be the most common of these 5 myths about credit score. A lot of business owners have some vague idea that a credit score for their business is a thing, but they totally miss the boat on how it actually works. They know they have a personal credit score because they have personal debt. They know that their credit score depends on how well they handle that personal debt, and how much they have. As a result, most believe business credit builds the same way. This could not be further from the truth.

Building Business Credit

You do not automatically have a business credit profile. You have to intentionally set up your business properly to establish a business credit profile. Then, your business credit accounts do not automatically report your payments to the business credit reporting agencies. That means, you do not necessarily have accounts reporting positive payment history, even if you are handling your business credit responsibly. You have to seek out accounts that will report.

Keep your business protected with our professional business credit monitoring.

This makes building a strong business credit score a little trickier than building a strong personal credit score. A business credit expert is a great resource to help you make sure your business is set up properly, establish your business credit profile, and find accounts that will report your on-time, consistent payments. Don’t leave it to luck. It won’t happen.

5 Credit Score Myths: If Your Personal Credit Score is Good, You Do Not Need a Business Credit Score

Because you can get a business loan with a good personal credit score, a lot of business owners think they don’t need to worry about their business credit score. However, there are a number of reasons to work on building a strong business credit profile regardless of your personal credit report. For example:

Having separate business credit keeps some business accounts from affecting your personal credit report. This can keep you from running into trouble buying a home or car if your business struggles.
Separate business credit opens more funding opportunities so that you can access more money for your business.
Even when lenders rely on your personal credit score, a strong business credit score can help you get better rates and terms than you would otherwise.

While it is possible to fund a business totally on the merits of a good personal credit history, it is not efficient or wise, and it will lower your personal credit score.

5 Credit Score Myths: Personal Credit Score Doesn’t Affect Business Credit Score

Your business credit profile, if set up properly, is all together separate from your personal credit profile. Handled the right way, business accounts do not show up on or affect your personal credit report. However, the reverse is not necessarily true.

In some cases, your personal credit score may be used in the calculation of your business credit score. Not only that, but it is always a consideration when it comes to the overall fundability of your business. This means that even if you have a solid business credit history, you can’t ignore your personal credit score.

5 Credit Score Myths: You Can Monitor Business Credit for Free

It makes sense. I mean, you can get a free copy of your business credit report. There are a ton of free apps that let you peek at your personal score throughout the year. Why wouldn’t you be able to do this with business credit?

Keep your business protected with our professional business credit monitoring.

There are no free business credit monitoring services, though you may be able to get a peek or a sample one time for free. The business credit reporting agencies offer some options for a fee, but Credit Suite can help you monitor your business credit score for a fraction of the price.

5 Credit Score Myths: You Don’t Need Anyone to Help You Build Your Business Credit Score

Credit repair companies are abundant when it comes to personal credit. Many of them are simply trying to make a buck. It’s almost always a scam. The only sure fire way to fix your personal credit score without ending up worse off in the long run is to pay your bills consistently on-time.

This is not necessarily true when it comes to your business credit score. A business credit expert can help you in a number of ways. They have relationships with vendors, lenders, and other knowledge that can be extremely valuable as you work to establish and build a strong business credit profile.

Analyze Fundability

A business credit expert can help you analyze and assess the overall fundability of your business. While it may technically be possible to do this yourself, it is a huge job. It takes a lot of time, and there are so many factors to consider it can be easy to miss something. Furthermore, it can be difficult to access some of the information. A business credit expert will have the contacts and expertise necessary to talk to the right people at the right place to get things done.

Keep your business protected with our professional business credit monitoring.

Properly Set Up Business Foundation

As mentioned earlier, your business has to be set up properly before you can even establish a business credit profile, let alone build a business credit score. A business credit expert can work with you to determine if your business foundation is set up as it needs to be. If not, they can help you fix that.

Get Accounts Reporting

Even with a business credit profile, there is no credit score until you have accounts reporting. The thing is, not all business accounts report payments to the business credit reporting agencies. In fact, very few of them do. What’s worse, is most companies do not make it clear to customers whether or not they report payments.

A business credit expert has relationships with specific vendors that they know report payments. You don’t have to rely on trial and error. Doing that, you could go months thinking you are building your credit score and really, nothing at all is happening. Working with an expert ensures you get on the right track and head down it as quickly as possible.

Your Business Credit Score is Not Found at the End of the Rainbow

When it comes to building strong fundability with the best business credit profile and highest business credit score possible, strategy trumps luck every time. You have to be intentional and follow the process. Once business owners know this, most are willing. The problem is, it is difficult to navigate these waters alone. Lenders and vendors do not always offer up the information needed easily. Also, few average Joe business owners know where to look or what to look for to evaluate fundability. This is where a business credit expert is priceless. They have the knowledge and skills needed to speed up the process exponentially. This not only saves time, but in the long term it also saves money. Get your free consultation with a Credit Suite business credit expert today.

The post What’s Luck Have to Do With It? 5 Credit Score Myths About Your Business appeared first on Credit Suite.

Check Out the Latest Business Credit Cards No Annual Fee

Consider Business Credit Cards No Annual Fee and What They Can Do for Your Business

Looking for business credit cards no annual fee? Look no further. We’ve got you covered.

We looked into lots of company credit cards for you. So, here are our selections.

Most of these have an ongoing annual fee of $0 (versus just an introductory fee). You can get a lot of cash with business credit cards.

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

Company Credit Card Benefits

Benefits can differ. So, make sure to choose the benefit you prefer from this choice of options.

And always check rates on the appropriate site.

Business Credit Cards No Annual Fee for Fair Credit

Capital One® Spark® Classic for Business

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

While this card is available if you have average credit, beware of the APR. Nonetheless if you can pay on time, and in full, then it’s a deal.

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

Business Credit Cards No Annual Fee for Jackpot Rewards That Never Expire

Capital One ® Spark® Cash Select for Business

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

Pay a 0% introductory APR for 9 months. Then pay 13.99%– 23.99% variable APR afterwards.

You will need great to outstanding credit scores to qualify.

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

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

Business Credit Cards No Annual Fee (Introductory) for Cash Back

Flat-Rate Rewards

Capital One ® Spark® Cash for Business

Take a look at the Capital One ® Spark® Cash for Business card. It has an introductory $0 annual fee for the first year. Afterwards, this card costs $95 each year. There is no introductory APR offer. The regular APR is a variable 20.99%.

You can get a $500 one-time cash reward after spending $4,500 in the initial three months from account opening. Get unlimited 1.5% cash back with Cash Select.

You will need great to superior credit to qualify.

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

Flat-Rate Rewards and No Annual Fee

Discover it ® Business Card

Look into the Discover it ® Business Card. It has no yearly fee. There is an introductory APR of 0% on purchases for one year. After that the regular APR is a variable 14.49– 22.49%.

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

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

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

Bonus Categories

Ink Business Cash℠ Credit Card

Check out the Ink Business Cash℠ Credit Card. It has no annual fee. There is a 0% initial APR for the first year. After that, the APR is a variable 13.24– 19.24%. You can get a $750 one-time cash bonus after spending $7,500 in the first 3 months from account opening.

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

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

You will need exceptional credit scores to get approved for this card.

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

Boosted Cash Back Categories

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

Look at the Bank of America ® Business Cash Rewards MasterCard ® credit card. Get an 0% introductory APR for the initial 9 billing cycles of the account. Afterwards, the APR is 12.24%– 22.24% variable. There is no annual fee. You can get a $300 statement credit offer.

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

You will need excellent credit to qualify.

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

Corporate Credit Cards for Extravagant Travel

No Annual Fee

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

For no annual fee while still getting travel rewards, check out this card from Bank of America. It has no yearly fee and a 0% initial APR for purchases during the first 9 billing cycles. After that, its regular APR is 12.24– 22.24% variable.

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

Get endless 1.5 points for every $1 you spend on all purchases, everywhere, each time. And this is no matter how much you spend.

Also earn 3 points per every dollar spent when you book your travel (automobile, hotel, airline) with the Bank of America ® Travel Center. There is no restriction to the number of points you can get and points do not expire.

You can earn up to 75% more points on every purchase if you have a company checking account with Bank of America and qualify for Preferred Rewards for Business.

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

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

Flat-rate Travel Rewards: No Annual Fee for First Year

Capital One ® Spark® Miles for Business

Check out the Capital One ® Spark® Miles for Business card. It has no annual fee for the initial year, which after that rises to $95. The regular APR is 20.99%, variable due to the prime rate. There is no introductory annual percentage rate. Pay no transfer charges. Late fees go up to $39.

This card is terrific for travel if your costs do not come under basic bonus categories. You can get unlimited double miles on all purchases, without limitations. Earn 5x miles on rental cars and hotels if you book through Capital One Travel.

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

Earn 50,000 bonus miles if you spend at least $4,500 within 3 months of your rewards membership enrollment date.

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

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

Business Credit Cards No Annual Fee for Fair to Poor Credit Scores, Not Calling for a Personal Guarantee

Brex Card for Startups

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

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

Nevertheless, they do not accept every industry.

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

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

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

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

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

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

Company Credit Cards with a 0% Initial APR– Pay Zero!

Blue Business® Plus Credit Card from American Express

Take a look at the Blue Business® Plus Credit Card from American Express. It has no annual fee. There is a 0% initial APR for the first year. Afterwards, the APR is a variable 13.24– 19.24%.

Get double Membership Rewards® points on everyday business purchases like office supplies or client dinners for the first $50,000 spent annually. Get 1 point per dollar after that.

You will need good to exceptional credit scores to qualify.

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

American Express ® Blue Business Cash Card

Also have a look at the American Express ® Blue Business Cash Card. Note: the American Express ® Blue Business Cash Card the same as the Blue Business® Plus Credit Card from American Express. Yet its rewards are in cash as opposed to points.
Get 2% cash back on all qualified purchases on as much as $50,000 per calendar year. Afterwards obtain 1%.
It has no annual fee. There is a 0% initial APR for the first 12 months. After that, the APR is a variable 13.24– 19.24%.
You will need great to outstanding credit to qualify.
Find it here: https://creditcard.americanexpress.com/d/business-bluecash-credit-card/

The Very Best Small Business Credit Cards No Annual Fee for You

Your straight-out perfect business credit cards no annual fee will depend upon your credit history and scores.
Only you can pick which features you want and need. So, do your research. What is exceptional for you could be terrible for another individual.
And, as always, make certain to establish credit in the recommended order for the best, quickest benefits.

The post Check Out the Latest Business Credit Cards No Annual Fee appeared first on Credit Suite.

5 Steps to Get a Business Credit Card, Bad Credit or Not

If you have bad personal credit, you may find yourself struggling to get a business credit card. The key to getting a business credit card, bad credit or not, is business credit.

You Can Get a Business Credit Card, Bad Credit Not Being an Issue

You’re likely aware business credit is a good thing. You know you need it to help you fund your business. But do you know how it helps you specifically get credit cards, even if you have bad personal credit? Furthermore, do you know how to get it?

How Do You Get Business Credit?

Business credit doesn’t just happen like personal credit does. You have to work to build business credit intentionally. While not hard, it is a process, and a time consuming one at that. The sooner you start the better, especially if you need a business credit card, bad credit being an issue.

Business Credit Card Bad Credit: Separation is Key

First thing’s first. You have to establish your business as an entity separate from yourself the owner. This means not using your own name or address. That doesn’t mean you have to get a separate phone line, or even a separate location.

You do need separate contact information however. You can get a business phone number pretty easily that will work over the internet instead of phone lines. In addition, the phone number will forward to any phone you want it too so you can simply use your personal cell phone or landline if you want. Whenever someone calls your business number it will ring straight to you.

You can use a virtual office for a business address. This is a business that offers a physical address for a fee, and sometimes they even offer mail service and live receptionist services. In addition, there are some that offer meeting spaces for those times you may need to meet a client or customer in person.

Learn more here and start building business credit with your company’s EIN, not your SSN.

Business Credit Card Bad Credit: EIN not SSN

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. Some business owners used their SSN for their business. This is what a lot of sole proprietorships and partnerships do. However, it really doesn’t look professional to lenders, and it can cause your personal and business credit to get all mixed up. You can get one for free from the IRS.

This step is vital. When you apply for a business credit card, bad credit can get in the way mainly because your SSN signals a look at your personal credit. If you use your EIN instead of your SSN, the lender will only be seeing the credit attached to your business.

Business Credit Card Bad Credit: Incorporation is Not Optional

Incorporating your business as an LLC, S-corp, or corporation is necessary for separation of business from the owner, and many other things. . It lends credence to your business as one that is legitimate. It also offers some protection from liability.

Which option you choose does not matter as much for these purposes as it does for your budget and needs for liability protection. The best thing to do is talk to your attorney or a tax professional.

Business Credit Card Bad Credit: Separate Bank Account

You have to open a separate, dedicated business bank account. There are a few reasons for this. First it helps solidify the separation between yourself and your business. Also, it will help you keep track of business finances. This is important for tax purposes.

There’s more to it however. There are several types of funding you cannot get without a business bank account. Many lenders and credit cards want to see one with a minimum average balance. In addition, you cannot get a merchant account without a business account at a bank. That means, you cannot take credit card payments. Studies show consumers tend to spend more when they can pay by credit card.

Learn more here and start building business credit with your company’s EIN, not your SSN.

Business Credit Card Bad Credit: Starter Vendors

Now, once you have these things in place, you need to get accounts that will report your payments to the business credit agencies. It sounds easy enough, but the catch is, you have to find vendors that will extend credit without you first having credit.

We call these vendors starter vendors. They will extend net terms on invoices with little requirement. They don’t check credit. Typically, they require a certain number of days in business, a minimum average balance in a business bank account, minimum annual revenue, or some combination of these things.

Extending the credit isn’t enough however. There are some that do this, but there are far fewer that will actually report those payments. You need vendors to report payments to the business credit reporting agencies, thus building your business credit score.

The Snowball Effect

Of course you are wondering what any of this has to do with applying for a business credit card, bad credit being in the way. Here’s how. Once you have several of these starter vendor accounts reporting, your score will be strong enough to support store credit.

A business store account is usually issued for that specific store or website specifically. Their limits are usually on the lower side as well. However, after you get a few of them and use them responsibly. Your score will grow even strong. These are cards from places like Home Depot, Staples, or Best Buy.

Then, you should qualify for fleet credit. These are cards from places like Shell that are used specifically for gasoline and automotive repair and maintenance.

After a few of those are reporting your consistent, on-time payments, you should have a strong business credit score and be able to apply for standard business credit cards that are not limited by where you use them or what you use them to buy. By using your EIN and not your SSN, you can get a business credit card, bad credit on your personal credit report and all. It’s all a big snowball effect.

Learn more here and start building business credit with your company’s EIN, not your SSN.

In the Interim

In the meantime, you can give your business credit building efforts a kickstart with a card like the Brex card for startups. It is one of the few true options if you are looking for a business credit card, back credit not being an issue. Even a FICO as low as 300 may qualify. There is no annual fee, and you can apply with your EIN rather than your SSN. There is no personal guarantee requirement.

The only catch is, not all industries qualify, and some industries require more paperwork than others.

You could also try getting accounts that you already have a relationship with to report to the business credit reporting agencies. This could be vendors you work with already. Maybe ask them if they will consider net terms and reporting payments. If you already make your payments consistently on time, they may be willing to do so without a credit check.

You could also consider asking utilities that you already pay regularly to report your payments. They may say no. They don’t have to do it. But they might, and if they do it can only help your business credit grow faster.

A credit line hybrid can be another great option to help speed things along. You have to have a 680 or better personal credit score, but you can take on a credit partner if you don’t meet that. The account still reports to your business credit, so you can keep building your score. And, you can get up to $150,000 unsecured financing for your business.

An Expert Can Help You Through the Steps

It sounds easy enough to do all of this on your own. However, there are some steps that are easier than others. Specifically, it can be very difficult to find starter vendors that will report to your business credit. For this and other difficult steps, it can be very helpful to have a business credit expert help you out. It’s definitely worth considering.

The post 5 Steps to Get a Business Credit Card, Bad Credit or Not appeared first on Credit Suite.

5 Ways to Share the Love With an Air Miles Business Credit Card

There are so many options for business credit cards out there, it can be completely overwhelming to figure out which ones will work best for your business. First, you have to figure out what you actually qualify to get. Then, you have to determine if you need cash back rewards, dining rewards, an air miles business credit card, hotel rewards, or whatever other option you may have.

Love Your Business and Yourself With an Air Miles Business Credit Card

If your credit is good, you are going to have lots of rewards options. The thing is, you want to pick the card with the best rates and terms that has the most useful rewards option for you. Sometimes it’s a no brainer, and sometimes it’s not. If you travel a lot for business, an air miles business credit card may be the perfect way to show your business some love.

Here are 5 ways to love your business and share the love with air miles you earn from your business credit card.

Learn more here and get started with building business credit with your company’s EIN and not your SSN.

Save on Business Travel

It seems obvious, but many business owners do not realize how much of a savings this can be if used properly. If you use your card frequently and earn the most miles possible, you could feasibly save thousands of dollars a year in business travel. Of course, you would need to determine if you travel enough to make this the most profitable choice when compared to whatever other choices you have. If you do not travel for work frequently but you do frequent business dinners, dining rewards may work better.

If you travel often though, the savings from an air miles business credit card could be significant.

Save on Personal Travel

Here is an exciting truth. You do not have to use air miles from a business credit card for business travel. That means you can earn air miles on business purchases and then use them for personal travel.

If you do a lot of personal travel, or if you want to travel, this is a way you can use an air miles business credit card to show yourself some love. Business expenses are typically large enough to earn lots of miles, which can relate to major vacation savings for you. So, even if you do not travel a lot for business, this could be a good option.

Get New Clients

Here’s another tip. You do not have to use miles earned from an air miles business credit card on yourself. You can use them to purchase a ticket for someone else. Therefore, if you need to fly in a potential client or customer for a meeting, you can cover that expense with air miles.

This can happen in a couple of ways. You can transfer air miles to someone else, but there are usually limits on how many, and there are fees. You can also purchase a ticket for someone else directly through your air miles account. This usually will be the option that offers the most savings, but do your research to be certain it works best in your situation.

Keep Current Clients

In danger of losing a current client? Need to show them some love to get them to stick around? Air miles and free travel can be a great incentive. Or, if you just want to show some good will toward all your customers in general, you could do a giveaway. Offer a round trip ticket for two for Valentine’s Day to a lucky winner!

Reinvest

Now, what do you do with all that savings? Reinvest in your business! Every penny you save is money you can put back into your business to grow and expand.

Learn more here and get started with building business credit with your company’s EIN and not your SSN.

What Are The Best Air Miles Credit Cards ?

It’s hard to say. There are tons to choose from. The one that will work best for you and your business will depend on a number of factors. You need to research all of your options and make an informed decision. Remember also that limits, fees, interest rates, bonuses, and other details can change frequently, so be sure to check with your credit card company now and then to see where you stand.

Here are some options to consider.

Capital One ® Spark® Miles for Business

The Capital One ® Spark® Miles for Business card has an initial annual cost of $0 for the first year. After that, it rises to $95. The regular APR is 20.99%. Of course, this is variable due to the prime rate.

Amazingly, you can get unlimited double miles on all purchases, with no restrictions. Earn 5x miles on rental cars and hotels if you book via Capital One Travel.

Furthermore, you can get an introductory bonus of 50,000 miles. Of course, you do have to meet the minimum spend requirement of $4,500 in the first 3 months after opening the account.However, this is a fairly low hurdle compared with the spending that can be required from other credit cards.

Ink Business Preferred ℠ Credit Card

Another great option is the Ink Business Preferred ℠ Credit Card. You pay a yearly fee of $95, and the regular APR is 15.99- 20.499%, variable. Sadly, there is no introductory APR deal.

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

Also, get 3 points per dollar of the first $150,000 you spend with this card. That includes purchases on travel, shipping, internet, cable, and phone services. Plus, it includes marketing purchases made with social media sites and search engines.

You can get 25% more in travel redemption when you redeem for travel via Chase Ultimate Rewards.

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

For no yearly fee while still getting travel rewards, check out this card from Bank of America. It has no yearly fee and a 0% introductory APR for purchases throughout the first 9 billing cycles. Afterwards, its regular APR is 12.24- 22.24% variable.

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

Learn more here and get started with building business credit with your company’s EIN and not your SSN.

Get unlimited 1.5 points for every $1 you spend on all purchases, anywhere, each time, no matter how much you spend.

Also earn 3 points per every dollar spent when you reserve your travel with the Bank of America ® Travel Center. There is no limit to the number of points you can get and points do not expire.

Even better, you can earn up to 75% more points on every purchase if you have a corporate checking account with Bank of America and qualify for Preferred Rewards for Business.

An Air Miles Business Credit Card Is a Great Way to Show Your Business, and Yourself, Some Love

If you qualify for an air miles business credit card, it can be a great tool. It’s a way to handle business expenses and save money at the same time. However, this only works if you tend to travel frequently, either personally or for business. Or, of course, if you can use the miles as an incentive of some sort.

If you do not qualify, it may be time to do something about that. Try asking a business credit expert for help. You will be glad you did.

The post 5 Ways to Share the Love With an Air Miles Business Credit Card appeared first on Credit Suite.

The post 5 Ways to Share the Love With an Air Miles Business Credit Card appeared first on Buy It At A Bargain – Deals And Reviews.

5 Steps to Get a Business Credit Card, Bad Credit or Not

If you have bad personal credit, you may find yourself struggling to get a business credit card. The key to getting a business credit card, bad credit or not, is business credit.

You Can Get a Business Credit Card, Bad Credit Not Being an Issue

How Do You Get Business Credit?

Business Credit Card Bad Credit: Separation is Key

Learn more here and start building business credit with your company’s EIN, not your SSN.

Business Credit Card Bad Credit: EIN not SSN

Business Credit Card Bad Credit: Incorporation is Not Optional

Which option you choose does not matter as much for these purposes as it does for your budget and needs for liability protection. The best thing to do is talk to your attorney or a tax professional.

Business Credit Card Bad Credit: Separate Bank Account

Learn more here and start building business credit with your company’s EIN, not your SSN.

Business Credit Card Bad Credit: Starter Vendors

The Snowball Effect

Then, you should qualify for fleet credit. These are cards from places like Shell that are used specifically for gasoline and automotive repair and maintenance.

Learn more here and start building business credit with your company’s EIN, not your SSN.

In the Interim

The only catch is, not all industries qualify, and some industries require more paperwork than others.

An Expert Can Help You Through the Steps

The post 5 Steps to Get a Business Credit Card, Bad Credit or Not appeared first on Credit Suite.

The post 5 Steps to Get a Business Credit Card, Bad Credit or Not appeared first on Buy It At A Bargain – Deals And Reviews.

Correct Errors in Your Public Credit Record

Your Credit Record Can Have Errors

Either a personal or a business credit record can have errors in it. There are all sorts of reasons why you or your business would not be able to get funding. Correcting mistakes is one way to make it easier for your business to get money.

Let’s look at errors in public records.

Correcting a Credit Record Means Enhancing Fundability

But what’s fundability? Fundability is the ability of a business to get funding. This is everything from getting credit to business loans. Because every business needs money, it quite literally pays to enhance your fundability whenever and wherever you can.

Public Records Matter to Your Credit Record

In addition to how well your business pays its bills, and your personal credit score, and whether your industry is felt to be a risky one, there’s the matter of public records.

Public records include bankruptcy (both personal and business), liens, judgments, and UCC filings. Errors in any of these kinds of public records will affect fundability, so correcting such mistakes will enhance your ability to get cash for your business.

Find out why so many companies use our proven methods to get business loans, even during a recession.

Bankruptcy on a Credit Record

Bankruptcy is a process a business goes through in federal court. The idea is to help a business eliminate or repay its debt under the guidance and protection of the bankruptcy court. Business bankruptcies are often liquidations or reorganizations. This depends on the type of bankruptcy an entrepreneur takes.

3 Types of Business Bankruptcy

There are three kinds of business bankruptcy. They are Chapter 7, Chapter 11, and Chapter 13. These types depend on organizational structure. See thebalancesmb.com/what-is-business-bankruptcy-393017.

Chapter 7 and Chapter 11

Corporations are legal business entities separate from their owners. They are more truly separate than partnerships. But in the event of a bankruptcy, either type of structure commonly will file of Chapter 7 (bankruptcy protection), or Chapter 11 (reorganization). The chapters refer to the US Bankruptcy Code.

Chapter 7: Liquidation

This one may be the best choice when the business has no viable future. It is often used when the debts of the business are so overwhelming that restructuring them is not feasible. Chapter 7 bankruptcy can be used for sole proprietorships, partnerships, or corporations. It is also appropriate when the business does not have any substantial assets. To read the full text of Chapter 7, go here: law.cornell.edu/uscode/text/11/chapter-7.

Chapter 7 Details

If a business is a sole proprietorship, and an extension of an owner’s skills, it often does not pay to reorganize it. Hence Chapter 7 would be appropriate.

Before a Chapter 7 bankruptcy gets approval, the applicant is subject to a “means” test. If their income is over a certain level, their application does not get approval. But if a Chapter 7 bankruptcy gets approval, the business is dissolved.

In a Chapter 7 bankruptcy, a trustee is appointed by the bankruptcy court. The trustee’s job is to take possession of the assets of the business and distribute them among all of the creditors.

The order in which creditors are paid can depend on the type of debt (secured vs. unsecured). Collateral is what you use to secure a debt. With no collateral, a debt is unsecured. As a result, those types of debts are further down the line when it comes to decided who will be paid in a bankruptcy.

After the distribution of the assets and paying the trustee, a sole proprietor gets a “discharge” at the end of the case. It means that the owner of the business is released from any obligation for the debts. But partnerships and corporations do not receive a discharge.

Chapter 11: Business Reorganization

Chapter 11 may be a better choice for businesses with a realistic chance to turn it all around. It is often used for partnerships and corporations. It can also be used by sole proprietorships if their income level is too high to qualify for Chapter 13 bankruptcy. For the full text of Chapter 11 go to: cornell.edu/uscode/text/11/chapter-11.

Chapter 11 Details

Chapter 11 is a plan where a company reorganizes and continues in business under a court-appointed trustee. The company files a detailed plan of reorganization. Such a plan explains how it will deal with its creditors. The company can terminate contracts and leases, recover assets, and repay some of its debts, while discharging others to return to profitability.

The business presents the plan to its creditors who will vote on the plan. If the court finds the plan is fair and equitable, it will approve it. Reorganization plans provide for payments to creditors over some time. Chapter 11 bankruptcies are rather complex and not all of them succeed. It usually takes over a year to confirm a plan.

Chapter 11 and the Small Business Reorganization Act of 2019

The Small Business Reorganization Act of 2019 enacted a new subchapter V of Chapter 11. This subchapter of Chapter 11 seems to favor the side of the applicant for business bankruptcy. But it only applies if the applicant wants it to apply. See cornell.edu/uscode/text/11/chapter-11/subchapter-V.

For example, subchapter V does not require that a committee of creditors be appointed, or that creditors have to approve a court plan.

Per the U.S. Department of Justice, the act: “imposes shorter deadlines for completing the bankruptcy process, allows for greater flexibility in negotiating restructuring plans with creditors, and provides for a private trustee who will work with the small business debtor and its creditors to facilitate the development of a consensual plan of reorganization.” See justice.gov/opa/pr/us-trustee-program-ready-implement-small-business-reorganization-act-2019.

Chapter 13: Adjustment of Debts for Individuals with Regular Income

Chapter 13 bankruptcy is a form of bankruptcy for individuals. Since a sole proprietorship is an extension of its one owner, the owner is responsible for all assets and liabilities of the firm. It is most common for a sole proprietorship to take bankruptcy via Chapter 13. This is a reorganization bankruptcy. For the full text of Chapter 13, go to: law.cornell.edu/uscode/text/11/chapter-13.

Chapter 13 Details

Use Chapter 13 small businesses when a reorganization is the goal instead of liquidation. The entrepreneur files a repayment plan with the bankruptcy court. This details how they will repay their debts. Note: Chapter 13 and Chapter 7 bankruptcies are very different for businesses.

Chapter 13 is vital for individuals whose personal assets are tied up with their business assets, because they can avoid problems like losing a home if they file Chapter 13 versus Chapter 7. Chapter 13 lets a business stay in business and pay its debts. But Chapter 7 does not.

Chapters 12 and 15

There are two other forms of individual bankruptcy. These are less common. Chapter 12 is bankruptcy protection for family farmers and family fisherman. See uscourts.gov/services-forms/bankruptcy/bankruptcy-basics/chapter-12-bankruptcy-basics.

Chapter 15 is bankruptcy protection when a bankruptcy matter involves people from another country. See uscourts.gov/services-forms/bankruptcy/bankruptcy-basics/chapter-15-bankruptcy-basics.

Correcting Bankruptcy Errors

In general, to correct bankruptcy issues, all you or your lawyer will need to do is file an amendment to your bankruptcy petition. These can be errors like forgetting to list an item of property. Or it can be disclosing an incorrect property value or forgetting a creditor or income from a side business. See alllaw.com/articles/nolo/bankruptcy/bankruptcy-petition-mistake.html.

Liens in a Credit Record

What’s a lien?

Per Investopedia: “A lien is a claim or legal right against assets that are typically used as collateral to satisfy a debt. A lien could be established by a creditor or a legal judgement. A lien serves to guarantee an underlying obligation, such as the repayment of a loan. If the underlying obligation is not satisfied, the creditor may be able to seize the asset that is the subject of the lien. There are many types of liens that are used to secure assets.”

Errors in Liens

Some of the worst errors when it comes to liens can involve real estate if using land to secure a debt. Minor or typographical errors are called Scrivener’s errors. You can often correct them by rerecording the deed of trust or by recording an instrument explaining and correcting the error. But you cannot cure more substantial errors except by a Reformation lawsuit. This type of lawsuit asks a court to correct the deed of trust to reflect the parties’ intent.

Find out why so many companies use our proven methods to get business loans, even during a recession.

Legal Judgments in a Credit Record

Businesses of all sizes can be on the defense end of a lawsuit. Lawsuits can be for everything from a customer slipping on ice in your parking lot to a supplier suing to get you to pay them.

The main ways you can lose in court are if you default at the start and never answer a summons and complaint. Or you could lose a motion for summary judgment brought by the other side. Another way to lose is to lose a bench or jury trial. Or you could exhaust all appeals and end up on the losing end.

If you or your business lose in court, then a judgment may be entered against you. Judgments generally take the form of paying damages, which is money. Or the judgment could be for specific performance where you’re required to do (or not do) something. Another option is an injunction is entered and you may be prevented from doing something. A civil judgment can’t send you to jail. That’s criminal, which is rather different.

Errors in Legal Judgments

Errors often take the form of a judgment entered against the wrong person and/or company, or a typo in the amount of money damages listed in the court’s records. Or the judgment is entered but it’s already been satisfied (paid). Another kind of error is fraud or other misrepresentation on the part of one of the parties. Plus there could be excusable neglect. For example, a city recovering from a major hurricane might not make the proper clerical entry of judgments a priority.

Correcting these errors can take several forms. Different states have differing rules. But every state wants their records to be correct. They just have different ways you need to go about correcting the record.

Correcting Errors in Legal Judgments

You or your lawyer will need to look up how to correct mistakes in a legal judgment in your state (or the District of Columbia or a US territory, like Puerto Rico).

For example, in Massachusetts, you or your lawyer will need to make a motion before the court under Rule 60(a). See mass.gov/rules-of-civil-procedure/civil-procedure-rule-60-relief-from-judgment-or-order. But in Texas, you or your lawyer would need to file a motion for judgment nunc pro tunc. This is a motion to correct the judgment. See texaslawhelp.org/article/correcting-clerical-error-court-order-answers-common-questions#toc-9.

In Georgia, correcting a judgment comes under the general umbrella of relief from judgments. See law.justia.com/codes/georgia/2010/title-9/chapter-11/article-7/9-11-60. In Louisiana, it falls under an Amendment of Judgment, and you can fix calculation or language errors ia motion. See law.justia.com/codes/louisiana/2015/code-codeofcivilprocedure/ccp-1951/.

Like with most things, the faster you work to correct a legal judgment, the less it will cost you. In particular if the wrong person (you) is the defendant, acting as quickly as possible will save you in legal fees. Ignoring these problems will not make them go away.

Find out why so many companies use our proven methods to get business loans, even during a recession.

UCC Filings in a Credit Record

When you secure a loan with property, creditors can tell other creditors about any of your assets in use as collateral for the secured transaction. UCC liens filed with Secretary of State offices act as a creditor’s public notice of their interest in the property.

It’s in a creditor’s best interests to check for UCC filings. This is so they can make sure they’re the only creditor with a claim on that collateral.

Errors in UCC Filings

Like anything else, there can be typographical errors in UCC filings. But the law says that, unless the errors “make the financing statement seriously misleading”, the UCC filing is still in effect. Are you depending on a typo to get out of a UCC filing? You might want to rethink that strategy. See law.cornell.edu/ucc/9/9-506.

Correcting Errors in UCC Filings

For the most part, unless the errors are seriously misleading, the UCC says you don’t have to fix them. This is because of the policy behind the law governing secured transactions under the UCC. Essentially, financing statements exist to provide notice of a transaction. And they are also meant to give enough information to later potential creditors that the debtor’s property may be covered by an earlier creditor’s security interest.

Hence, a financing statement exists as a starting point in a later creditor’s due diligence process, not the conclusion. See jdsupra.com/legalnews/it-may-be-foul-but-there-is-no-harm-not-11403/.

Correcting the Public Document Errors in Your Credit Record: Takeaways

Your personal credit record can directly impact your business credit record. Both need to be right. And correct records are more likely to get your business money.

It’s possible to fix errors in public documents like judgments and UCC filings. But the mechanism for doing so will differ. This depends on the error, the type of record, and the jurisdiction. The more quickly you act, the better and cheaper it will be for you. Ignoring these mistakes will not make them go away. Correcting mistakes can make your business more fundable.

For more information on fundability and getting business credit, contact us today.

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Get in the Fast Lane with Fleet Credit

What is Fleet Credit? How Can it Help a Business?

To understand fleet credit, you need to understand business credit first.

Business Credit

Business credit is credit in the name of a business. When built correctly, it has no relationship to an owner’s personal credit. This is the case even if a business has but one owner, and that person is also the business’s sole employee.

Types of Business Credit

You can divide business credit into three separate categories. Vendor credit is credit you can get even if you have no other credit; often net 30 and similar terms. Store credit is often revolving terms; may require some time in business; and offered by major retailers. And cash credit is more universal credit from providers like Visa, MasterCard, and American Express; harder to qualify for; may require more time in business and more paperwork before approval.

Fleet Credit

Fleet credit has some things in common with both vendor and store credit. Terms can be either net 30 (or net 60, etc.), or they can be revolving. This is credit to buy fuel, and to repair and maintain vehicles of any type.

The kinds of vehicles a business needs to maintain can include taxicabs, trucks, vans (for deliveries or to transport workers or passengers), or company cars.

Industries Based on Vehicle Use and Risk

While any company can use vehicles, some industries solely depend on vehicles to deliver their services. Risk is denoted by SIC (Standard Industrial Classification), and NAICS (North American Industry Classification System) standards.

Typical High-Risk Industries

Normally, high-risk industries have some things in common. There can be high risks of injury on the job. Or an industry may engage in a lot of cash transactions. This is true regardless of the safety record of a particular business, or the majority of its transaction types. Trucking and many other vehicle-intense businesses come under the injury risk umbrella.

NAICS Codes for Vehicle-Based Businesses

Over the road trucking is considered a high-risk industry. See referenceforbusiness.com/industries/Transportation-Communications-Utilities/Trucking-Except-Local.html. So is local transportation. See referenceforbusiness.com/industries/Transportation-Communications-Utilities/Local-Passenger-Transportation-Elsewhere-Classified.html. And so are taxicabs. See referenceforbusiness.com/industries/Transportation-Communications-Utilities/Taxicabs.html.

Fleet Credit and Gas Cards Today

Small business credit is independent of the economy. But be aware that, as the situation continues, some of the requirements could change. Always be sure to check the links directly, to be sure to get 100% up to date information straight from the source.

The Benefits of Gas Cards for Business

Per the SBA, business credit card limits are high! They’re a whopping 10 – 100 times that of personal credit cards. You can get a lot more money with small business credit. And you will not need collateral, cash flow, or financials in order to get business credit.

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

Get Excellent 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.

Qualifying

To qualify, you need an entity in good standing with the applicable Secretary of State, and an EIN number with the IRS. You will need to have a business address matching everywhere. Plus you need a D-U-N-S number, and all applicable business licenses. You will need to have a business bank account, and a business phone number listed on 411.

Your Social Security number 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. You apply online. The terms are Net 15. 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.

Qualifying

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 you have been in business less than 1 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. 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.

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.

Qualifying

If you’re not approved based on business credit history, or have been in business a year or less, then a $500 deposit is needed or a personal guarantee. Apply online or over the phone. The terms are net 15 (WEX Fleet Card), Net 26, or Revolving (WEX Flex Card). Get it here: wexinc.com/solutions/fleet-management.

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

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.

But Conventional Banks are Not the Best Place to Find Funding for High Risk Industries

Over 89% of business applications are denied by the big banks. High-risk industries are subject to stricter underwriting guidelines. It is possible to get loans from conventional sources, but it’s not easy. Alternative lenders are often your best bet. Here’s some great funding we’ve found.

National Funding

You can get equipment financing for commercial truck leasing and financing. Up to $150,000 is available. Their requirements are 6 or more months in business, an equipment quote from a vendor, and a 575 personal credit score or better. See www.nationalfunding.com/industries/loans/trucking-business

Or get auto repair shop financing, via leasing. Their requirements are 6 or more months in business, an equipment quote from a vendor, and a 620 personal credit score or better. See nationalfunding.com/industries/leasing-financing/automotive-repair-equipment.

Kabbage

Kabbage offers loans specifically for truckers. Up to $250,000 is available. Their requirements are 1 or more years in business, and $50,000 or more in annual revenue. See www.kabbage.com/truck-driver-loans.

Crossroads Equipment Lease & Finance, LLC

Get transportation equipment financing. Up to $750,000 is available. Poor credit is not a problem. You can get approval in as little as 24 hours. See https://crlease.com/transportation-equipment-financing.

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

Fundbox

You can get a business line of credit. Up to $100,000 is available. No personal credit score is necessary. You must use online accounting software that can link to Fundbox. See creditsuite.com/fundbox and https://fundbox.com/truck-loans.

Credit Line Hybrid

Got good personal credit? Then a hybrid credit line could be the perfect solution. You can get up to $150,000, even if your business is a startup.

To qualify, your personal credit score should be at least 685. You can’t have any liens, judgments, bankruptcies, or late payments. In the past 6 months you should have fewer than 5 credit inquiries, and you should have less than a 45% balance on all business and personal credit cards. It’s better if you have established business credit as well as personal credit. See creditsuite.com/business-loans.

Takeaways

Business credit is credit in the name of a business. Fleet credit is used by businesses to buy fuel, and to fix and maintain all sorts of vehicles. It can help you build business credit and qualify for loans and more forms of funding. Alternative lenders are one option. And the Credit Suite Credit Line Hybrid is even better if you’ve got good personal credit.

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