Regarding Consumer Credit

Concerning Consumer Credit If you do not comprehend non-mortgage consumer debt, you will certainly be even more most likely to abuse credit report, as well as destroy your monetary circumstance. That is why the topic of non-mortgage consumer debt is so crucial.When they obtain their trainee credit history card, a whole lot of individuals obtain …

Regarding Consumer Credit

Concerning Consumer Credit

If you do not comprehend non-mortgage consumer debt, you will certainly be even more most likely to abuse credit report, as well as destroy your monetary circumstance. That is why the topic of non-mortgage consumer debt is so crucial.
When they obtain their trainee credit history card, a whole lot of individuals obtain their initial experience with customer credit score. This is where their research of non-mortgage consumer debt starts. Bank card customers require to be well-informed in credit score terms such as APR, benefits, equilibrium transfer and also money back.
You can additionally obtain division shop cards details to one brand name shop. The APR on these customer credit report cards is typically substantially greater than a lot of routine credit report cards.
When you are a customer of credit scores you require to recognize your lawful civil liberties to ensure that you can safeguard on your own. If you are being worried by collection agencies, you ought to be mindful of the Fair Debt Collection Act, which lays out the policies that restricts the activities an enthusiast can make use of to fetch his cash.
You can obtain your credit history record from a credit report reporting bureau. You might be qualified for a totally free credit score record to watch your customer credit history standing.
Non-mortgage consumer debt therapy
Abuse of credit scores can frequently result in a high quantity of non-mortgage consumer debt financings which can consequently bring about personal bankruptcies. It might be beneficial to look for out customer credit rating therapy if you are dealing with a frustrating financial debt circumstance.
Customer credit report therapy might aid if your credit score scenario has actually weakened. Therapy can aid you identify your monetary circumstance as well as assist you locate methods to fix your credit report. Therapy can aid you far better handle your financial resources, to ensure that you can avoid of financial obligation and also end up being an extra enlightened customer of non-mortgage consumer debt.

A great deal of individuals obtain their very first experience with customer credit history when they obtain their trainee credit rating card. The APR on these customer credit rating cards is commonly substantially greater than a lot of normal credit scores cards.
You might be qualified for a cost-free debt record to see your customer credit scores condition. If your credit rating circumstance has actually worn away, customer credit scores therapy might aid.

The post Regarding Consumer Credit appeared first on ROI Credit Builders.

Colossal Corporate Credit

Your Business Needs Corporate Credit

Corporate credit is credit in a company’s name. It doesn’t tie to an entrepreneur’s personal credit, not even when the owner is a sole proprietor and the sole employee of the business.

Consequently, an entrepreneur’s business and consumer credit scores can be very different.

The Advantages

Because company credit is independent from individual, it helps to protect an entrepreneur’s personal assets, in case of litigation or business bankruptcy.

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

Another benefit is that even startups can do this. Going to a bank for a business loan can be a recipe for frustration. But building business credit, when done right, is a plan for success.

Consumer credit scores are dependent on payments but also additional considerations like credit usage percentages.

But for corporate credit, the scores actually merely depend on whether a small business pays its debts on a timely basis.

The Process of Building Corporate Credit

Building small business credit is a process, and it does not happen without effort. A company needs to actively work to establish small business credit.

That being said, it can be done easily and quickly, and it is much quicker than establishing individual credit scores.

Merchants are a big aspect of this process.

Undertaking the steps out of sequence will lead to repetitive rejections. Nobody 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 denial 100% of the time.

Corporate Credit and Fundability

A small business has to be fundable to lenders and merchants.

Therefore, a small business will need a professional-looking web site and e-mail address. And it needs to have site hosting bought from a vendor like GoDaddy.

Plus, business phone and fax numbers ought to have a listing on ListYourself.net.

Likewise, the company telephone number should be toll-free (800 exchange or comparable).

A business will also need a bank account dedicated only to it, and it must have all of the licenses essential for operation.

Licenses

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

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

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

Working with the IRS

Visit the IRS website and acquire an EIN for the business. They’re totally free. Select a business entity such as corporation, LLC, etc.

A small business can get started as a sole proprietor. But they will more than likely wish to change to a sort of corporation or an LLC.

This is in order to limit risk. And it will take full advantage of tax benefits.

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

Sole Proprietors Take Note

If you run a small business as a sole proprietor, be sure to incorporate.

If you do not, then your personal name is the same as the business name. Consequently, you can end up being directly responsible for all company financial obligations.

Also, according to the Internal Revenue Service, using this arrangement there is a 1 in 7 possibility of an IRS audit. There is a 1 in 50 chance for corporations! Steer clear of confusion and considerably lower the chances of an Internal Revenue Service audit as well.

Beginning the Corporate Credit Reporting Process

Start at the D&B website and get a totally free D-U-N-S number. A D-U-N-S number is how D&B gets a company in their system, to generate 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 correctness and completeness. If there are no records with them, go to the next step in the process.

In this manner, Experian and Equifax will have activity to report on.

Vendor Credit Tier

First you ought to build trade lines that report. This is also called the vendor credit tier. Then you’ll have an established credit profile, and you’ll get a corporate credit score.

And with an established business credit profile and score you can begin to get credit in the retail and cash credit tiers.

These kinds of accounts tend to be for the 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 will give you preliminary credit when you have none now. Terms are typically Net 30, versus revolving.

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

Details

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

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

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

Vendor Credit Tier – It Makes Sense

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

You want 5 to 8 of these to move onto the next step, which is the retail credit tier. But you may need to apply more than one time to these vendors. So, this is to demonstrate you are trustworthy and will pay punctually. Here are some stellar choices from us: https://www.creditsuite.com/blog/5-vendor-accounts-that-build-your-business-credit/

Accounts That Don’t Report

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

You can always ask non-reporting accounts for trade references. And credit accounts of any sort will help you to better even out business expenditures, thereby making financial planning easier. These are providers like PayPal Credit, T-Mobile, and Best Buy.

Retail Credit Tier

Get 5 to 8 or more vendor trade accounts reporting to at least one of the CRAs. And then progress to the retail credit tier. These are service providers which include Office Depot and Staples.

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

One such example is Lowe’s. They report to D&B, Equifax and Business Experian. They want to see a D-U-N-S and a PAYDEX score of 78 or higher.

Fleet Credit Tier

Are there 8 to 10 accounts reporting? Then move to the fleet credit tier. These are service providers like BP and Conoco. Use this credit to buy fuel, and to repair, and maintain vehicles. Only use your SSN and date of birth on these applications for verification purposes. For credit checks and guarantees, make certain to apply using the business’s EIN.

One such example is Shell. They report to D&B and Business Experian. They need to see a PAYDEX Score of 78 or higher and a 411 business phone listing.

Shell may claim they want a certain amount of time in business or profits. But if you already have adequate vendor accounts, that won’t be necessary. And you can still get approval.

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

Cash Credit Tier

Have you been responsibly managing the credit you’ve gotten up to this point? Then move onto the cash credit tier. These are companies like Visa and MasterCard. Just use your Social Security Number and date of birth on these applications for verification purposes. For credit checks and guarantees, use your EIN instead.

One such example is the Fuelman MasterCard. They report to D&B and Equifax Business. They need to see a PAYDEX Score of 78 or higher. And they also want you to have 10 trade lines reporting on your D&B report.

Plus, they want to see a $10,000 high credit limit reporting on your D&B report (other account reporting).

Additionally, they want you to have an established company.

These are companies such as Walmart and Dell, and also Home Depot, BP, and Racetrac. These are frequently MasterCard credit cards. If you have 14 trade accounts reporting, then these are attainable.

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

Monitor Your Corporate Credit

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

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

At Equifax, you can monitor your account at: www.equifax.com/business/business-credit-monitor-small-business. Equifax costs about $19.99.

Update Your Records

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

Fix Your Corporate Credit

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

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

Disputes

Disputing credit report mistakes commonly 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 original copies. Always send copies and keep the original copies.

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

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

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

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

A Word about Corporate Credit Building

Always use credit smartly! Never borrow more than what you can pay off. Monitor balances and deadlines for repayments. Paying off punctually and fully will do more to increase corporate credit scores than just about anything else.

Establishing company credit pays. Great business credit scores help a business get loans. Your loan provider knows the small business can pay its financial obligations. They recognize the business is for real.

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

Takeaways

Corporate credit is an asset which can help your company in years to come. We can help you get started toward growing corporate credit.

The post Colossal Corporate Credit appeared first on Credit Suite.

Get Business Credit Lines Unsecured by Collateral

You Can Get Business Credit Lines Unsecured by Collateral

Do you need business funding? But maybe you don’t have good collateral? Not to worry – you can still get money. So let’s look at business credit lines unsecured by collateral.

Get Business Credit Lines Unsecured by Collateral: Credit Lines

A credit line, or line of credit (LOC), is an arrangement between a borrower and a bank or private investor which establishes a maximum loan balance that a borrower can access.

A borrower can get access to funds from their line of credit at any time, so long as they don’t go beyond the maximum set in the arrangement, and as long as they meet any other conditions of the finance institution or investor for example, making timely payments.

And business credit lines unsecured by collateral give lenders very little security in case of default. While business credit lines unsecured ed by collateral exist, they can be harder to get.

Advantages

Credit lines offer many distinct advantages to borrowers which include convenience. Borrowers can utilize their line of credit and merely pay interest on what they use, unlike loans where they pay interest on the total borrowed. Credit lines can be reused, so as you acquire a balance and pay that balance off, you can use that accessible credit again, and again.

Details

Credit lines are revolving accounts similar to credit cards, and contrast other kinds of financing such as installment loans. In many cases, lines of credit are unsecured, much the same as credit cards are. There are some credit lines that are secured, and for that reason easier to get approval for. But we’re looking for business credit lines unsecured by collateral!

Credit lines are the most routinely sought after loan type in the business world despite the fact that they are preferred, real credit lines are rare, and difficult to find. Many are also very hard to qualify for, requiring good credit, good time in business, and good financials. But there are other credit cards and lines that few people know about that are attainable for startup companies, bad credit, and even if you have no financials.

Get Business Credit Lines Unsecured by Collateral: Unsecured Business Financing

With this form of business financing, you partner with a lender who concentrates on securing business credit cards. This is a very unusual, very few know of program which few lending sources offer. They can normally get you three to five times the approvals that you can get on your own.

This is because they know the sources to apply for, the order to apply, and can time their applications so the card issuers won’t decline you for the other card inquiries. Individual approvals commonly range from $2,000 – 50,000.

The result of their services is that you commonly get up to five cards that simulate the credit limits of your highest limit accounts now. Multiple cards generate competition, and this means they will raise your limits, more often than not within 6 months or less of first approval.

While these aren’t business credit lines unsecured by collateral per se, they are rather similar. And the differences between and unsecured business credit cards are probably not going to be noticeable to most.

Approvals

Approvals can go up to $150,000 per entity like a corporation. With UBF they actually get you three to five business credit cards which report just to the business credit reporting agencies. This is huge, something the majority of lenders don’t offer or advertise. Not only will you get cash, but you build your business credit also so within three to four months, you can then use your new company credit to get even more money.

Details

You can get credit with no security, assets, or collateral. The lender has no collateral to collect in case of default. Because there is no collateral, and they don’t look or care about your cash flow, the only thing that matters is your personal credit.

With a 650 you will get only personal cards. But with a 680 credit score, you will get both company and personal cards.

Rates

The lender can also get you low introductory rates, more often than not 0% for 6-18 months. You’ll then pay normal rates after that, typically 5-21% APR with 20-25% APR for cash advances. And they’ll also get you the best cards for points. So this means you get the very best rewards.

Just like with just about anything, there are significant benefits in partnering with a source who focuses on this area. The results will be far better than if you attempt to go at it by yourself.

Learn business loan secrets with our free, sure-fire guide.

Qualifications

You must have excellent personal credit right now, ideally 685 or better scores, the same as with all business credit cards. You shouldn’t have any derogatory credit on your report to get approval. And you must also have open revolving credit on your consumer reports right now.

Balance/Limit Ratios

They consider your balance/limit ratios on existing revolving accounts. The lower the ratio, the higher the amount of the approval. A 30% ratio is a requirement. This looks at overall percentage, and individual percentage on each account.

Credit inquiries are a big factor tying into approval. More than six inquires in six months will be too much. Lenders do not want to see the person is applying for new credit, especially no other revolving accounts.

Learn business loan secrets with our free, sure-fire guide.

Guarantors Welcome

Use a guarantor or a credit partner to boost the numbers. Usually these people want a piece of the business in trade for their assistance. Creditors want to know you’ll pay them back. Most sources will charge 9 to 12% success-based fees. Only pay the fee off what you secure.

Fees

All lenders within this space charge a 9-15% success based fee and you only pay the fee off of what you secure. Keep in mind, you get a lot of extra rewards and about three to five times more money in this program than you’d get on your own, which is why there’s a fee, the same as all other lending programs.

You can get approval with a guarantor and you can even use a wide range of guarantors to get even more money. There are also other cards you can get making use of this very same program but these cards only report to the consumer reporting agencies, not the business reporting agencies. They are consumer credit cards versus business credit cards.

Benefits

They deliver similar benefits including 0% intro annual percentage rates and five times the amount of approval of a solitary card but they’re much easier to qualify for.

You can get approval with a 650 score and seven inquiries (or fewer) in the most recent six months and you can have a BK on your credit and other negative items. These are a lot easier to get approval for than UBF business cards.

With all earlier cards above, you must have good consumer credit in order to get approval but what happens if your personal credit is not good, and you don’t have a guarantor?

This is the time when building company credit makes a lot of sense even if you have good personal credit, building your business credit helps you get even more money, and without having a personal guarantee.

Private Investors and Alternative Lenders

Private investors and alternative lenders also grant credit lines. These are easier to get approval for than conventional SBA loans. They also require much less documentation for approval. These alternative SBA credit lines generally demand good personal credit for approval.

Unlike with SBA, many of them don’t necessitate good bank or business credit approval. Nearly all of these sorts of programs call for two years’ of tax returns. Tax returns need to demonstrate a profit. Rates can vary from 7% or greater and loan amounts range from $25,000 into the millions. Loan amounts are typically based upon the revenues and/or profits on tax returns. Sometimes lenders may ask for other financials including a profit and loss statement, balance sheets, and income statements.

Merchant Cash Advances

Merchant cash advances have quickly become the most popular way to get financing, in large part because of the effortless qualification process. Businesses with $10,000 in earnings can get approval, with the business owner having scores as low as 500.

Some sources have now even begun to offer credit lines that accompany their loans. You must have at least $10,000 in revenue for approval. You should be in business for at least one year, however three years is better. Lenders typically want to see a credit score of 650 or better for approval.

Loan amounts are typically around $20,000. Lenders routinely do pull your business credit, so you need to have some credit already and in some cases lenders will want to see tax returns.

Rates vary, due to the risk for this program, and there aren’t a lot of funding sources who offer it.

These can be – in a way – business credit lines unsecured by collateral. This is because the lender gets something better than collateral – a percentage of your incoming revenue.

Get Business Credit Lines Unsecured by Collateral: Credit Cards and Lines are Very Similar

Credit cards frequently offer 0% intro rates for up to two years. This is also extremely useful for startups in particular. And credit lines let you take out more cash at a more affordable rate than do cards. These are the primary two differences which will have an effect on you between credit cards and credit line.

Investopedia even says that “lines of credit are potentially useful hybrids of credit cards.”

Both cards and lines are revolving credit. Credit lines are tougher to qualify for as card approvals are usually very quick, many times automated, while at the same time line require an in-depth underwriting review. Lines usually offer lower rates, per Bankrate card rates average 13% while lines average 4%.

And no matter what, business credit lines unsecured by collateral are going to be even harder to qualify for.

Learn business loan secrets with our free, sure-fire guide.

Unsecured Business Credit Cards

Many of these cards report to the consumer credit reporting agencies. They all demand a personal guarantee from you. You can get approval typically for one card max as they stop approving you when you have two or more inquiries on your report.

Most credit card providers feature business credit cards including Capital One, Chase, and American Express. These have rates similar to consumer rates and limits are also similar.

Some of them report to the consumer reporting agencies, some report to the business bureaus. Approval requirements are similar to consumer credit card accounts.

They are pretty similar to business credit lines unsecured by collateral.

Inquiries

Normally, when you apply for a credit card you put an inquiry on your consumer report. When other lenders see these, they won’t approve you for more credit for the reason that they aren’t sure how much other new credit you have recently obtained.

So they’ll only approve you if you have no more than two inquiries on your report within the most recent six months. Any more than that will get you refused.

Establishing Business Credit

Business credit is credit in a company name, in association with the business’s EIN number, and not the owner’s Social Security Number. When undertaken properly, you can acquire business credit without a personal credit check and no personal guarantee. This is a thing all other cards above can’t deliver.

You can get three types of business credit cards. First is vendor credit, which offers net 30 terms to start a business credit profile. Then is retail credit, where you will get credit cards with high limits at most establishments.

Next is fleet credit. It’s credit to fuel, service, and maintain company vehicles. And then there’s cash credit, which includes Visa, MasterCard, and American Express cards that you can use anywhere. You can acquire these without any credit check or guarantee. Limits are oftentimes $5,000 – $10,000 to start, and can exceed $50,000.

While these types of credit aren’t business credit lines unsecured by collateral, they can often be better. They are often easier to qualify for.

But What About The SBA?

The majority of credit line types that most entrepreneurs think of come from standard banks and traditional banks use SBA loans as their principal loan product for small business owners. This is due to the fact that SBA guarantees as much as 90% of the loan in the case of default. These credit lines are the most challenging to qualify for because you must qualify with SBA and the bank.

Furthermore, you are nearly always going to need some form of collateral. So, by definition, they won’t be business credit lines unsecured by collateral.

Business Credit Lines Unsecured by Collateral: Takeaways

Your business can get business credit lines unsecured by collateral, if you know where to look. Learn more here and get started toward establishing business credit.

The post Get Business Credit Lines Unsecured by Collateral appeared first on Credit Suite.

FINALLY! Understand Your Business Credit Score!

What Does Your Business Credit Card Score Mean, and Where Does it Come From?

Imagine you are in a foreign country and have no understanding of the local language. Of course, you need the basic things such as food, water, and shelter just to survive. The problem is, you cannot ask anyone where to find them. Consequently, each time you try to get these things for yourself the door is shut in your face. You cannot explain yourself in order to get what you need, because you do not speak the language. Even if they did try to help you, you would have no clue what they were talking about. You wouldn’t understand. This what it is like when you do not understand your business credit card score.

Similarly, you need funding for your business to survive. A bad business credit card score can keep you from getting it. If you do not understand your score however, you cannot help yourself. For this reason, you need to know what the score means, what it says about your business, and how it is calculated. Once you understand these things, you can get to work correcting whatever barrier is in the way.

Where Does Your Business Credit Card Score Come from and What Does it Mean?

The truth is, it depends. As you likely know, there are various agencies that report personal credit scores. Likewise, there are several that report business credit scores as well. Most noteworthy are Dun & Bradstreet, Experian, Equifax, and CreditSafe. There are a few smaller, lesser known business CRAs. Certainly however, these are by far the largest and most commonly used by lenders.

That’s the easy part. Where your business credit card score comes from and what it means is a little more complicated. First of all, there are a ton of different scores. Also, different CRAs gather their information and calculate their scores differently. As a result, seeing your business credit card score can be very difficult. Understanding it can be even harder. Below, we break down what each score means and where the information comes from for each of the major credit reporting agencies.

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

Business Credit Card Score from Dun & Bradstreet

Dun & Bradstreet offers several different types of business credit reports. In fact, there are six different reporting options in all. They all offer different information related to credit worthiness. The result is, it takes all of them to get the whole picture.

The report lenders use most is likely the PAYDEX. This is probably because it is the easiest to understand, due to it being the most like the consumer FICO score. It measures how quickly a customer makes payments and ranges from 1 to 100. Scores of 70 or higher are acceptable. For reference, a score of 100 shows payments are made in advance. A score of 1 indicates that they are 120, or more, late.

The other Dun & Bradstreet Credit Reports include:

● Dun and Bradstreet Delinquency Predictor Score

The delinquency predictor score measures how likely it is that the company will not pay,

will be late paying, or will fall into bankruptcy. On a scale of 1 to 5, a 2 is good.

● Financial Stress Score

The financial stress score measures pressure on the balance sheet. Therefore, it shows how likely the company is to shut down within a year. These scores range from 5 to 1. A score of 2 is good.

● Supplier Evaluation Risk Rating

This rating ranks the odds of a company surviving 12 months. The minimum score is a 9 and the

maximum is 1. A good score is 5.

● Credit Limit Recommendation

The credit limit recommendation reflects a business’s borrowing capacity. Even more, it is a

recommendation for how much debt a company can handle. Typically, creditors use this to

determine how much credit to extend.

● D&B Credit Rating

This one ranks overall business risk on a scale of one to four. A score of 2 is good. The rating is

given in conjunction with letters, the combination of which indicate a company’s net worth.

Even if there isn’t enough information on a business to assign a regular rating, Dun and Bradstreet will assign what they call a Credit Appraisal Score. Due to the lack of information, this is based on number of employees. Alternatively, they may offer a rating based on what data is actually available.

Business Credit Card Score from Experian Commercial

Experian uses what it calls Intelliscore as its credit ranking. There are more than 800 different factors that they use to predict a company’s credit risk. With Intelliscore, a score of 76 or higher indicates a low risk of default or late payment. If a score falls between 51 to 75, it indicates a low to medium risk. Scores from 26 to 50 are medium risk. Finally, from 25 down to 1 is medium high to high risk.

Experian offers a number of other scores also.

● Intelliscore Plus

This is a highly predictive percentile score that indicates the likelihood that a business will go seriously delinquent, or have a major financial issue such as a bankruptcy within the next year.

Intelliscore Plus uses more factors to determine the score than the original Intelliscore. While payment history still accounts for 5 to 10%, current payment status, trade balances, and percent of accounts delinquent make up 50 to 60% of the score. Credit utilization, company profile, age of the business, industry risk, and public records account for the rest. Public records include:

liens
judgements
collections
bankruptcies
other derogatory items

Data comes from suppliers, lenders, legal filings, collection agencies, credit card companies, and of course public records.

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

● The Experian Financial Stability Risk Score (FSR)

FSR predicts the potential of a business going bankrupt or defaulting on its obligations. The score identifies the highest risk businesses by making use of payment and public records. These records include high utilization of credit lines, severely delinquent payments, tax liens, judgments, collection accounts, risk industries, length of time in business, etc.

● Experian’s Blended Score

This is a one-page report that provides a summary of the business and its owner. A combined business-owner credit scoring model is more comprehensive than a business or consumer only model. Blended scores have been found to outperform consumer or business alone by 10 – 20%.

Equifax Business

Equifax gets its business credit data in ways similar to D&B and Experian. Like D&B, they also have a sharing agreement with the Small Business Finance Exchange. In addition, they get Net 30 type industry trade credit information from a wide variety of suppliers that provide products and services to businesses on an invoice basis.

They combine financial data with industry trade data, and they add in utility and telephone payment data. They also use public records information.

Equifax Business credit scores include:

● The Small Business Credit Risk Score for Suppliers

It is scored on a scale of 1 to 100, with 90+ indicating that a business has paid its obligations as agreed. An 80 to 89 means they are 1 to 30 days past due, 60 to 79 indicates they are 31-60 days overdue, and a score of 40 to 59 is 61 to 90 days past the payment date. In the same way, It just goes down further from this point.

● Business Failure Risk Score

This score indicates the chance of a company paying its bills late on the following scale:

497 – 816: 25% or less chance of payment being late
452 – 496: 26 – 50% chance of late payment
415 – 451: 51 – 74% chance of late payments
101 – 414: 75 – 100% chance of late payments

● Public Records Report

The purpose of this report is to list bankruptcies, judgments, and liens along with the amount, date of the most recent filing, and how they were satisfied.

● Credit Usage Report

This is a pie chart that shows your company’s credit usage. It gives a visual of what percent of your available credit you are using. That is known as your credit utilization ratio, and it has a pretty big impact on your overall credit score.

● Credit Report Summary

The summary report shows the number of your business’s credit accounts, as well as the date each one became active. It also lists any amounts past due, along with your most severe status of the past 24 months.

The highest amount of credit extended, the median balance, and the average open balance are included as well.

Additionally, the report lists recent activity such as number of new accounts opened recently, delinquent accounts, number of updated accounts, and inquiries.

● Financial Account Highlights

This report shows details for the past 36 months, including credit accounts and leases. It lists the status, open and close dates, and original and current credit limits. It also shows any past due amount for each. In addition, the payment amount and frequency for each account, as well as its security status can be seen.

Business Credit Card Score: Credit Safe

CreditSafe does not gather its own information like the other CRAs. Rather, they offer reporting options based on data from Dun & Bradstreet. Since they compile the data and report it in different ways, these scores still offer information that may be used differently than what is found on a Dun & Bradstreet report. They offer 3 packages: Standard, Plus, and Premier. The problem is, they do not list their prices on the website. You have to request a quote to determine what your pricing would be, as they allow you to purchase individual products as well.

Their main score, the CreditSafe rating, works on a scale of 1-100. It predicts the likelihood that payment performance will become 90 plus days past due within the next 12 months, or that the business will go bankrupt. They offer a variety of other scores and reports that provide a ton of additional information.

● International Score

This score is derived from the Creditsafe rating. It compares credit risk between companies in different countries.

● Credit Limit

The Creditsafe recommended credit limit uses information from the business payment records and those of similar companies to calculate a dollar amount recommendation for the maximum amount of credit a company should receive at one time.

● Days Beyond Terms (DBT)

Compares how many days late a business pays its bills in comparison to other companies in the industry.

● Derogatory Legal

This is a report on the number and value of tax liens and judgements that have been filed in the past 6 years and 9 months. It also includes bankruptcies filed in the last 9 years and 9 months.

● Payment Trend

A report designed to highlight, at a glance, substantial changes in how a company is paying its bills.

● Business Spend Trend

Let’s you know whether the total annual business spending is going up or down when compared to the previous year.

Subscription packages come in levels, and the prices are dependent completely on your business’s individual needs. You have to speak to a consultant to get a quote.

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

Finally! You Understand Your Business Credit Card Score… Now How Can You See It?

Just understanding your business credit card score is not enough. You need to know what you can do about it if it isn’t helping you get funding. That’s where monitoring comes in. Unfortunately, you cannot get a free copy of your business credit reports like you can with your personal credit reports. It costs money to see your business credit card score.

For example, the big three charge closet to $50 or more for each report:

Dun & Bradstreet reports range in price from $61 to $229 per report.
Experian reports are $49.95 per report.
Equifax is $99.95 per report.

CreditSafe doesn’t even tell you a price until you talk to one of their agents. They will quote you a price after discussing your needs with you. So it’s a subscription type package that you pay monthly.

You can monitor your credit with D&B, Experian, and CreditSafe at a fraction of these costs by going to https://www.creditsuite.com/monitoring/.

What Can You Do About Bad Business Credit?

First off, if your business credit card score is bad because of mistakes, you can dispute them. In this way, you can have the mistakes taken off. Do this in writing to the credit reporting agency. In addition, you will need to include backup documentation that supports your point. Do not send originals however. Rather, send copies.

In contrast, if your credit is bad and there are no mistakes, start now making payments on time. Furthermore, if you have accounts that do not report to the credit agencies, such as telephone or utility accounts, ask them to report your on-time payments. If you pay rent, ask your landlord to report your rent payments. In addition, work with starter vendors that will offer net 30 invoices without a credit check and that will report your payments. Go here to find a few to start with.

Above all, pay your bills on time. This is the number one way to increase your business credit score.

Knowledge is Power

Once you understand your business credit card score, you can start to figure out what you can do about it. So knowing is half the battle. The other half is getting the problem areas corrected. Once you do, your business can get the funding it needs to grow and thrive.

The post FINALLY! Understand Your Business Credit Score! appeared first on Credit Suite.

Attention All Residential Real Estate Agents Learn All About Business Credit Cards for Startups

Just Getting Your Residential Real Estate Business Off the Ground? Then You Need Get Business Credit Cards for Startups

We looked at a bunch of business credit cards for startups, and did the research for you. A residential real estate agency will need any number of goods and services to get off the ground. So here are our preferences.

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

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

And you will not need collateral, cash flow, or financial data in order to get business credit.

Credit Card Benefits

Benefits can differ. So, make sure to select the perk you like from this choice of alternative business credit cards for startups.

Business Credit Cards for Startups with Average Credit

Capital One® Spark® Classic for Business

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

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

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

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

Business Credit Cards for Startups for Low APR/Balance Transfers

Discover it® Cash Back

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

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

Details

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

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

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

Business Credit Cards for Startups with No Annual Fee

Uber Visa Card

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

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

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

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

Details

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

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

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

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

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

Costco Anywhere Visa® Business Card by Citi

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

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

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

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

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

Ink Business Cash℠ Credit Card

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

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

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

Details

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

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

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

United MileagePlus Explorer Business Card

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

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

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

Details

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

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

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

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

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

Starwood Preferred Guest® Business Credit Card from American Express

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

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

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

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

Details

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

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

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

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

Business Credit Cards for Startups for Cash Back

SimplyCash Plus Business Credit Card from American Express

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

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

Details

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

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

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

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

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

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

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

Capital One® Quicksilver® Card

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

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

A cash bonus of $150 is on offer for those who make at the very least $500 in purchases in 3 months of account opening.

Details

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

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

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

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

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

Business Credit Cards for Startups with 0% APR – Pay Zero!

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

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

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

Details

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

They additionally get trip cancellation coverage, trip delay reimbursement and other advantages.

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

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

JetBlue Plus Card

Take a look at the JetBlue Plus Card for yet another offer of a 0% introductory APR

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

Details

Spend $1,000 in the initial 90 days and pay the yearly fee, and earn 40,000 bonus points. New cardholders receive a 12 month, 0% initial APR on balance transfers made in 45 days of account opening.

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

There is a $99 annual fee for this card.

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

Business Credit Cards for Startups: Secured Credit Cards

Wells Fargo Business Secured Credit Card

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

Pick this card if you want to earn 1.5% per dollar in purchases without any limits or earn one point for every dollar in purchases. You also get 1,000 bonus points. So this is for every month your company makes $1,000 in purchases on the card.

Details

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

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

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

Business Credit Cards for Startups for Jackpot Rewards

Chase Sapphire Preferred® Card

Take a look at the Chase Sapphire Preferred® Card for travel points.

You can earn two points per dollar spent on travel and dining at restaurants. And you can earn one point per dollar on all other purchases. Points can be redeemed for cash back, gift cards, or travel.

The card’s benefits include trip cancellation insurance, travel and emergency assistance services. They also include an auto rental collision damage waiver, purchase protection and extended warranty protection.

When you spend $4,000 in the initial 3 months from account opening, you will earn 50,000 bonus points. These points are worth $625 if you redeem them for travel through Chase Ultimate Rewards.

Details

You can earn an unlimited two points per dollar for travel and dining at restaurants. And then earn one point per dollar for all other purchases. Points will transfer equally to 13 leading frequent travel programs with partners. So these include British Airways, Southwest Airlines, United, and Marriott.

There is no 0% introductory APR on purchases or balance transfers. The card’s standard APR is 17.74 – 24.74% variable. Also, the card has an annual fee of $0 introductory for the first year. And then it skyrockets to $95.

Get it here: https://creditcards.chase.com/rewards-credit-cards/chase-sapphire-preferred

Ink Business Preferred ℠ Credit Card

Get a look at the Ink Business Preferred Credit Card from Chase. Cardholders earn 3 points for every dollar spent on travel, shipping, internet, cable, phone and qualifying advertising with the card. So, this is up to $150,000 each year. And all other purchases earn an unlimited one point per dollar spent.

This is a Visa card.

Cardholders get benefits like purchase protection, trip cancellation or interruption insurance. They also get cellphone protection. And they get extended warranty coverage. And they get an auto rental collision damage waiver.

Details

Earn 80,000 bonus points when you spend $5,000 in the initial 3 months from account opening. There is an annual fee of $95. You can add employee credit cards at no additional cost.

This credit card only offers 3 points per dollar to a limit of $150,000 a year. So, this is for travel, shipping, internet, cable, phone and qualifying advertising. All other purchases get an unlimited flat rate of one point per dollar. And there is no introductory APR

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

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

Hilton Honors American Express Ascend Card

Take a look at the Hilton Honors American Express Ascend Card, which earns hotel rewards points. Get up to 12 points per dollar of eligible purchases at participating Hilton hotels or resorts.

Automatically get Hilton Honors Gold status. And this includes room upgrades when available, a 5th night free when you book a rewards stay of 5 nights or more.

And get free internet access and late checkout. It also includes a 25% bonus on base points earned with Hilton Honors.

This card has a variable purchase APR of 17.74 – 26.74%. There is an annual fee of $95.

Details

Cardholders can get a 125,000-point welcome offer after making $2,000 in eligible purchases in 3 months from account opening. Get a free weekend night award after making $15,000 in eligible purchases on your card in a calendar year.

Benefits include purchase protection. And there is extended warranty coverage. They also include car rental loss and damage insurance and travel accident insurance.

Spend $40,000 on eligible purchases with the card within a calendar year. Then you can earn Hilton Honors Diamond status through the end of the next calendar year. This status includes all of the benefits of Gold status.

It also includes a 50% bonus on base points earned with Hilton Honors. And get exclusive floor lounge access at select properties. But that is terribly high spending required for elite status. Only you can decide if that’s worth it.

Get it here: https://www.americanexpress.com/us/credit-cards/card/hilton-honors-ascend/

The Perfect Business Credit Cards for Startups for You

Your absolute best business credit cards for startups will hinge on your credit history and scores. For a residential real estate agency, some of the more important perks you need are probably deals on gas and other vehicle maintenance. And everyone can use low rates.

But only you can pick which features you want and need. So make sure to do your homework. What is outstanding for you could be catastrophic for others.

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

The post Attention All Residential Real Estate Agents Learn All About Business Credit Cards for Startups appeared first on Credit Suite.

Easy Business Credit – Use it 5 Ways

Easy Business Credit is Possible, Fast Business Credit is Not

Business credit is credit in the name of your business, not your own name. It is not connected to the business owner’s personal credit. Because of this, a business owner’s business and consumer credit scores can be very different. There are many benefits to building business credit. Because business credit is distinct from the consumer, it helps to secure an entrepreneur’s personal assets in case of a lawsuit or business insolvency. It is easy to get business credit, but it is not fast.

Even start-ups can get easy business credit. This is important, because visiting a bank for a business loan can be a formula for disappointment if personal credit isn’t top notch. By building small business credit, you can have a plan for success that does not involve your personal credit score or liability.

Share our foolproof business credit building checklist and tell your friends about how you’re building business credit the quick and easy way.

How to Get Easy Business Credit

As already stated, simple credit for a business doesn’t mean fast business credit. It also doesn’t mean you sit back and build it on autopilot. You cannot build business credit passively. You have to work at it, intentionally. Work doesn’t sound easy, I know, but the process really is uncomplicated.

The whole thing moves more quickly if you start by setting up your business to build business credit from the beginning. However, even if your business is already operating, you have to do that before you can start working on business credit. It will just be a slower process. Your business has to be established as an entity separate from yourself.

Establish Your Business as An Entity Separate from Yourself

This is the vital first step. If you do not do this, then everything you do to build business credit will only affect your personal credit score. You will still not have a separate business credit score. Here is how you start with easy business credit, and separate your business from yourself in the eyes of creditors and credit agencies.

Set Up Your Business for Building Credit

Your business has to have its own phone number and address that is separate from your personal phone number and address. The phone number should be from a toll-free exchange. Be sure to list your business name with its own contact information in all of the directories, including 411.

Formally incorporate your business with the IRS. You get to choose from a corporation, an S-corp, or an LLC. The one you choose will depend on the amount of protection you want and how much you want to spend.

Get an EIN. This is an identifying number for your business that functions similarly to an SSN. Get an EIN for free at gov.

You’ll need a D-U-N-S number to start building easy business credit. That’s another identifying number assigned by Dun & Bradstreet. They do not open a business credit file unless you have this As the largest and most commonly used business credit agency, you definitely need a file with them.

Open a business bank account. Use it for all business expenses. You can pay yourself a salary out of it if you need to, but it has to be for business transactions only, and it must be opened in the name of the business using the business contact information.

Make certain your business has a professional website. It is best to hire or barter with a professional for this. A poorly put together website can do a lot of damage, and having no website in this day and age is basically the same as not existing.

Get a dedicated email address for your business that has the same URL as your website. A free service such as Yahoo or Gmail will not work.

How Can You Get Easy Business Credit When You Have None?

It probably seems unrealistic that simple corporate credit is even a thing. That’s because we all know that, with personal credit, it is hard to get credit without credit. When you apply for credit, the creditors want to see a good credit score before they give it. Why is the process different for a business? Because there is a secret. Lean in close so you can hear it. The secret is the vendor credit tier.

Share our foolproof business credit building checklist and tell your friends about how you’re building business credit the quick and easy way.

You must start with trade vendors. There is no other door to simple company credit. You can’t start with retail credit cards or a business loan from your bank. If you do, you’ll get a rejection 100% of the time.

Vendor Credit Tier

Trade vendors are those vendors that offer tradelines and report payments to the business credit reporting agencies. This is what we call the vendor credit tier. They will often offer net 30, 60, or 90 terms on invoices without a credit check. It is not revolving credit.

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

Not every vendor can help like true starter starter vendors do. These are merchants that will grant an approval with very little effort. Also, you want them reporting to one or more of the big three CRAs: Dun & Bradstreet, Equifax, and Experian. This is key, as if they are not reporting, the accounts are not helping you build.

You need 5 to 8 accounts reporting from this tier to move up to the next one, which is the retail credit tier. It takes a little time to reach this step, as some vendors may require a minimum amount of time in business or minimum annual revenue even if they do not require a credit check.

There are several such vendors out there, but as a general rule these are some of the easiest to get started with.

Uline Shipping Supplies

Uline Shipping Supplies offers shipping, packing, and industrial supplies, and they report to D&B.

They require a D-U-N-S number, so be sure you have that handled before you apply. They will also ask to see 2 references and a bank reference. In addition, they may require you to order a few things and pay for them before approving net 30 terms.

Quill

Quill works well for this purpose also. They sell office, packaging, and cleaning supplies, and they report to D&B and Experian.

Because Quill reports to two separate credit reporting bureaus, you get two credit experiences with them. Consequently, they should probably be your first stop so you can open a credit file with both Experian and Dun & Bradstreet from the beginning.

They will usually put you on a 90-day prepayment schedule, and if you order items each month for 3 months, they will go ahead and approve you for a Net 30 Account.

Grainger Industrial Supply

Grainger Industrial Supply is likewise a true starter vendor. They sell safety equipment, plumbing supplies, and more. They also report to D&B. You will need a business license, EIN, and a D-U-N-S number before they will approve you.

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

Retail Credit Tier

Once there are eight or more vendor trade accounts reporting to at least one of the CRAs, you can apply for credit in the retail credit tier. These include retail stores such as Walmart, Amazon, and Office Depot.

Another example is Lowe’s. They report to D&B, Equifax and Business Experian. They want to see a PAYDEX score, the main score from Dun & Bradstreet, of 78 or higher.

Fleet Credit Tier

After eight or more accounts are reporting your payments from the retail credit tier, you can apply for cards in the fleet credit tier. These are companies like BP and Fuelman. Use this credit to buy fuel or to repair and maintain vehicles.

An example of a company in this tier is Shell, which reports to D&B and Business Experian. They need to see a PAYDEX Score of 78 or more, and they require a 411-directory business phone listing as well.

Shell might claim they want a certain amount of time in business or revenue. The truth is though, they will still approve you without meeting those requirements if you have enough vendor accounts reporting before you apply.

Cash Credit Tier

If you handle the credit you get in these tiers responsibly, then the cash credit tier will be your next stop. This includes cards from Visa and MasterCard that are not related to a specific retail store. This is the top tier. If you make it here and handle the credit you have in this tier responsibly, you will have a strong biz credit score that will help you run and grow your business.

When applying credit in any of these tiers, be sure to use your EIN and not your SSN. Your SSN and birthdate should only be for identity verification purposes on these applications.

Easy Business Credit vs. Fast Business Credit

As you can see, the process of establishing and building business credit is not hard. It is actually pretty simple if you follow the steps in order. It’s a snowball effect that does not happen overnight though. As you get approval for more accounts, more accounts are reporting, and you will be approved for even more accounts. As positive payment history is recorded, your score will continue to build and grow stronger and stronger.

Share our foolproof business credit building checklist and tell your friends about how you’re building business credit the quick and easy way.

It is a process similar to building muscle. It’s easy in that all you have to do is eat right and work out. Results do not come quickly however. It definitely takes time to build company credit just like it does to build muscle. During the process, you also have to keep an eye on things, similar to stepping on the scale and measuring your waist.

Monitor Your Progress

You have to know what is happening with your credit. If you don’t, you will not really know how many accounts are being reported from each tier, and you will not know when the time is right to move on to the next tier. You also need to make sure to correct any inaccuracies ASAP. This is more difficult with corporation credit than with personal however, as there is no free annual report available for your biz credit like there is with your personal credit. Monitoring costs money.

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

At D&B you can monitor at: www.dandb.com/credit-builder. At Experian, you can monitor your account at: www.smartbusinessreports.com/Landing/1217/. And at Equifax, you can monitor your account at: www.equifax.com/business/business-credit-monitor-small-business. Experian and Equifax cost about $19.99; D&B ranges from $49.99 to $99.99.

5 Ways You Can Use Business Credit to Improve Your Business

Once you have company credit, a world of opportunity is open to your business. There is so much you can do that is not possible without it. Here are 5 ways to use it to further the success of your business.

Take Advantage of Special Pricing

Often times you can find a great deal on goods and services if you purchase in bulk. A diner may be able to get a 10% discount on certain high use spices, or a retailer may be able to get a great deal on certain inventory items by purchasing more than the standard amount. The diner can save on expenses, and the retailer can cut the cost of goods sold. Both situations have the potential to increase the bottom line, but there is usually a significant cash outlay involved.

Bridge a Seasonal Cash Gap

Do you run a seasonal business? If you specialize in holiday items, toys, camping equipment, or any number of other things, your revenue may be higher during certain times of the year. This can make for some pretty tight off-season budgeting issues. Having strong business credit allows you to bridge those gaps with ease.

Earn Rewards

If you choose your cards carefully, you could make a substantial dent in expenses with credit card rewards. The key is to find the rewards that best fit your needs. If you earn cash back for certain expenditures or for spending at specific types of businesses, be sure those are things you spend on and places you spend at frequently enough to make a difference. It doesn’t do you any good to earn cash back at restaurants if you prefer to eat at home.

Repair and Replace Equipment

If you have strong company credit, there will be no reason to stress or even have to go through a loan process each time you need to repair or replace equipment. Need a new computer, printer, or industrial refrigerator. Your corporate credit cards can handle that, and you can take care of the problem right then, without depleting cash on hand.

Small Expansion or Maintenance Projects

If you need to replace a window, upgrade your air conditioner, or install new lighting, you can do so quickly and easily without the hassle of a new loan and without running your cash reserves too low.

Easy Business Credit Is Possible: Use it Wisely

Getting business credit isn’t hard, but there is a specific process that must be followed. Trying to do things out of order will result in denials every time. If you take the time and work the process however, you can have the company credit you need to handle whatever is thrown at you.

The post Easy Business Credit – Use it 5 Ways appeared first on Credit Suite.

5 Outstanding Business Loans for Women with Bad Credit

And Other Options for When Business Loans for Women with Bad Credit Aren’t Enough Bad credit can feel like a death sentence for your business. It can make it seem as though you have reached a dead end before you ever get started. This is especially true of women owned businesses as it is already … Continue reading 5 Outstanding Business Loans for Women with Bad Credit

5 Outstanding Business Loans for Women with Bad Credit

And Other Options for When Business Loans for Women with Bad Credit Aren’t Enough

Bad credit can feel like a death sentence for your business. It can make it seem as though you have reached a dead end before you ever get started. This is especially true of women owned businesses as it is already more difficult for females to get business funding. The truth is, there are ways to move past a bad credit hump. It takes getting creative with funding and a lot of hard work, but it is possible. Not only are there options like crowdfunding and grants that are not dependent on credit at all, but there are even business loans for women with bad credit.

Most lending institutions are not going to be looking to extend a business loan to those without a good credit score. This is because they genuinely have no clue if your company will be able to repay the loan.

Some non-traditional lenders, however, will take a look at other factors to help them determine risk, meaning even if you don’t have the best credit, you can still get a business loan. These factors may include length of time in business, annual revenue, or any number of things.

Others simply work on a different model than traditional lenders. Following are our top examples of each.

Top Outstanding Business Loans for Women with Bad Credit

Of course, this isn’t an exhaustive list, but it is a list of the 5 best loans for women with bad credit that we have found.

Business Loans for Women with Bad Credit: Lending Club

LendingClub functions as a peer-to-peer lender that offers mostly fixed-term small business loans. Borrowers that get loans from LendingClub generally use loans funds to buy equipment, finance growth or expansion projects, consolidate other debt, hire new employees.

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

One benefit LendingClub offers with their small business loans than many others do not is access to a client advisor. This is someone to help you figure out how to best use your business loan funds, as well as how to budget loan payments.

The minimum loan amount at LendingClub is $5,000 and the maximum is $300,000. You must have been in business for 12 months or more and have at least $50,000 in annual sales to qualify. There can be no tax liens or bankruptcies, and you must have at least 20% ownership. They will work with a credit score that is fair or higher. A fair credit score ranges from 620 to 659.

Business Loans for Women with Bad Credit: Lendio

Lendio offers a loan-connection service that dramatically cuts the time it takes for small business owners to find the perfect loan. They do the legwork by vetting a network of competing small business lenders. Funding is fast, sometimes in as little as 24 hours.

Potential borrowers submit one application and then see offers from lenders in the network. The minimum loan amount is $500 while the maximum is $5,000,000. The business must be U.S. or Canada based and must have a business bank account. The minimum personal credit score applicable is 560.

Business Loans for Women with Bad Credit: Blue Vine

BlueVine offers two options for small business financing. They include lines of credit and invoice factoring. They also offer the ability to talk with a financing advisor, and their application process takes place exclusively online. Their minimum loan amount is $5,000 and their maximum is $100,000. To be eligible you must be in business for at least 6 months, have revenue of $120,000 per year or more, and have a credit score of at least 600.

Business Loans for Women with Bad Credit: Kiva

Kiva has a unique lending model. They offer loans to businesses, but their platform is far different from than that of traditional or even other non-traditional lenders. It is sort of a cross between crowdfunding and lending. They offer loans with a 0% interest rate, so even though you have to pay it back, it is actually free money. In addition, they do not run a credit check at all. The only requirement is that you have to get at least 5 family members or friends to donate money for your business, and you have to give at least a $25 loan to another business on the platform yourself.

Business Loans for Women with Bad Credit: Grameen

Microloans are a great option when it comes to business loans for women with bad credit. Grameen is one of the few lenders that offers microloans specifically for women. The loan amounts range from $2,000 to $15,000, and they also offer financial training and support.

As a bonus, they report payments to Equifax and Experian. Consequently, these loans help borrowers build credit.

Other Options

Sometimes, even if you can find business loans for women with bad credit, it just isn’t enough. There are other options that can help you bridge the gap between what you are able to borrower and the amount of funds your business actually needs to survive.

Merchant Cash Advance

If you own an existing business that takes credit card payments, a merchant cash advance can be a legitimate option. It works like this. The lender takes a look at your daily credit card sales and extends a cash advance based on that average. While they may check your credit, it rarely makes a lot of difference because the security for the loan is payments from future credit card sales.

The main difference that a low credit score might make is related to terms and interest rate. For example, a low score could result in a higher interest rate, or in payment drafts from credit card sales bi-monthly rather than monthly. Sometimes with a merchant cash advance, payments drafts are weekly or even daily.

Grants

There are a number of grant opportunities available for women business owners as well. While they are all competitive programs, they are definitely worth applying for to help support and grow your business.

SBA Women’s Business Centers

In addition to helping with loans, the SBA Women’s Business Centers also help women entrepreneurs get access to funding. Some lend money or award grants directly, while others help connect women entrepreneurs with financial institutions.

Eileen Fisher Women-Owned Business Grant

The clothing brand Eileen Fisher hands out $100,000 per year to 10 women-owned businesses. To qualify, a woman must have at least 51% ownership, and the business must be in operation for at least three years. Also, it must bring in less than $1 million per year in revenue and have a focus on environmental or social change.

Amber Grant

The Amber Grant awards $500 to $1,000 per month to a woman-owned business. One of the recipients also receives an additional $10,000 grant at the end of the year. Applicants only need to tell their story and turn it in with a $15 application fee.

#GIRLBOSS Foundation Grant

Specifically for woman-owned businesses in fashion, music, and art, the #GIRLBOSS small business grant awards $15,000. They also offer exposure via the Girlboss website and social media platforms. Judges rate those applying on creativity, business acumen, planning, innovation in the field, financial need, and where they plan to work.

Cartier Women’s Initiative Award

The Cartier Women’s Initiative Award is $100,000 for first place and $30,000 for second place. They award the grant to 18 women entrepreneurs from around the world each year. Women business owners who are just getting started may qualify. Go here for the complete application information for this small business grant.

All of the finalists get to attend the INSEAD Social Entrepreneurship 6-Day Executive Program (ISEP). They will also have the opportunity to participate in workshops on entrepreneurship, business coaching seminars, and be exposed to networking opportunities.

How to Keep Bad Credit from Being a Problem in the Future

If you are looking for business loans for women with bad credit, it is unlikely that you have a strong credit score. While this option will work for the present, it is important to ensure that going forward, bad credit is not an issue. There is no reason to stay stuck in a bad credit hole. There are ways to dig yourself out.

Credit Monitoring

Monitor your credit reports. Request a free personal credit report each year from Experian, Equifax, and Transunion. Look at what is being reported, and deal with any mistakes as soon as you can. You also need to keep an eye on your business credit. We can help you monitor that at Experian and Dun & Bradstreet, the two most common reporting agencies, for only $24/month. See: www.creditsuite.com/monitoring.

You can monitor your business credit at the reporting agencies directly, but it is more expensive to do so. For example, Experian and Equifax cost about $19.99 each, and D&B ranges from $49.99 to $99.99.

What’s are you looking for? You are looking for mistakes on your report. Errors on your personal credit report(s) can be corrected, but you have to dispute in a certain way. Generally, this means you mail a paper letter with copies of any proof of payment. These are documents like receipts and cancelled checks. Never send the originals. Always mail copies.

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

Itemize any charges you challenge, and make your letter as clear as possible. Be specific about the concerns with your report, and use certified mail so that you will have proof that you mailed in your dispute.

Business credit disputes can be handled as follows.

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

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

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

Fund Your Business Without Using Your Personal Credit Score

This is also an option for those seeking business loans for women with bad credit. You do not actually have to use your personal credit score at all. Your business can have a credit score all on its own. If you are not sure you have a business credit score, then you likely don’t. You kind of have to be intentional with how you set up your business for that to happen.

For example, you need and EIN, a D-U-N-S number, and a few other things before you can have business credit. Your business has to appear as a separate entity from yourself.

What Does Your Business Need to Be a Separate Entity?

A professional-looking website and email address. The website address needs to be bought from a supplier such as GoDaddy. In addition, the email address needs to have the same URL. It shouldn’t be a from a free email platform like Yahoo or Gmail.

A company telephone and fax numbers that is different from your personal numbers, and they need to have a listing on ListYourself.net.

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

A business bank account devoted strictly to the company is always a must.

To be a formal corporation. This means organizing as an LLC, S-corp, or corporation. You cannot operate as a sole proprietorship or partnership and build business credit properly. Base the option you choose the level of protection and the tax benefits that you need. For company credit report purposes, they all work the same.

Once you have these things in play, any payments you make on accounts in your business name using your EIN will be reported to the business credit reporting agencies in your business name. This is how business credit starts to grow, and you can eventually leave your personal credit out of the mix.

You Have Options: Business Loans for Women with Bad Credit Really Do Exist

Business loans for women with bad credit are out there. We gave five outstanding places to get started. However, there is more to the business funding process than just finding a loan despite bad credit. You have to have a plan to overcome the bad credit in the long term.

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

The best way to do that is to ensure you pay all accounts on time, consistently. In addition, work on building your business credit so that you do not have to depend on your personal credit for business funding.

Do not underestimate the importance of this. By using your business credit to fund your business, you keep large business expenses, or business issues, from affecting your personal credit score. This means despite what is going on business-wise, you can still maintain the credit you need to buy a home, a car, do home improvement, etc.

Consequently, if you run in to personal credit issues, your business credit can remain unaffected. This means your business can continue to run successfully despite a poor personal credit score.

The post 5 Outstanding Business Loans for Women with Bad Credit appeared first on Credit Suite.

Your Business Credit Report

Many small business owners don’t realize that business credit scores are distinctly separate from personal credit scores. Your business credit score has no impact on your personal credit score, and vice versa.

Business credit reflects your company’s image to potential lenders and business partners. Yet, unlike personal credit — which can be viewed only with the permission of the report holder — business credit scores are made available to the public. Anyone can view your business credit score for any reason.

Furthermore, business credit is expressed with a different numerical range than personal credit. Business credit scores provide a quick view of a company’s risk potential based on a scale of 1 to 100 — the higher the score, the lower the risk.

Score Range Risk Class Risk Description
76-100 1 Low
51-75 2 Low-Medium
26-50 3 Medium
11-25 4 Medium-High
1-10 5 High

Score Range Risk Class Risk Description 76-1001 – Low 51-752 – Low-Medium – 26-503 – Medium 11-254 – Medium-High 1-105 – High
Review your Business Credit Report Today

Contributing Sources: www.smartbusinessreports.com | www.sbcr.experian.com | www.businesscreditfacts.com

The post Your Business Credit Report appeared first on ROI Credit Builders.