Tag: credit

Tier 1 Business Credit – Dive Into the Truth

There are a lot of questions out there about the business credit tiers. A lot of business owners claim they have strong business credit and they never even considered the tiers.  There is a school of thought that they are not necessary and a waste of time. Tier 1 business credit gets a particularly bad rap as being unnecessary.  It’s time we dive into the truth about Tier 1 business credit.

The Truth About the Tiers and Tier 1 Business Credit

What are business credit tiers? Actually, the tier system is just how Credit Suite ranks vendor credit based on how easy it is to get approval. When you work through our business credit builder, you start by setting up a fundable foundation. Once your business is set up properly, you begin applying for Tier 1 business credit vendors.  After you have enough of those reporting payments to the business credit reporting agencies, you can move on to Tier 2, Tier 3, and finally Tier 4 and advanced vendors.

First, let’s get one thing out of the way.  The truth is, some business owners can build strong business credit without working through the tiers.  That’s a fact.  Here’s another truth. Most business owners can’t. Honestly, several factors need to fall into place perfectly to be approved for business credit accounts without working through the tiers in order.

These include but are not limited to:

  • Substantial income
  • Willingness to give a personal guarantee
  • Excellent credit
  • High value collateral and the willingness to use it to fund the business

However, the tiers are the key to gaining access to advanced vendors and more business funding without these things.

The Benefit of Working Through the Tiers in Order

The vendor tiers are set up by Credit Suite. It’s a sort of formula to allow business owners to build their business credit without any more personal guarantee than necessary. So, even if you are able to skip them, it’s not wise to do so. The tiers can still be useful as a way to limit your personal guarantees when it comes to business funding.

When you set your business up the right way, and work through the vendor tiers in order, your business can eventually fund itself with minimal impact on personal credit.

A Deep Dive Into Tier 1 Vendors

What makes Tier 1 vendors so special? These are starter vendors that will extend net terms on invoices. They do so with less focus on credit score than other vendors and creditors. Not only that, but they will also report those payments to the business credit reporting agencies.

However, it only works if your business has a fundable foundation. That includes having professional business contact information, an EIN, being incorporated, and having a D-U-N-S number, among other things.

How Do You Find Tier 1 Business Credit Vendors?

Since most vendors do not classify themselves into tiers, how do you find them? A simple search will give you a few options.  However, the information changes without warning.  We are always finding new vendors that fit into Tier 1, and often we discover vendors have changed their requirements or reporting standards in ways that make them no longer Tier 1 vendors.

Here are just a few Tier 1 business credit vendors we know of currently.

76

76 offers a fleet card that reports to Dun & Bradstreet and Experian.

To qualify, you need the following:

  • Your corporate entity must be in good standing with the applicable Secretary of State
  • An EIN
  • Company address matching everywhere
  • D-U-N-S number from Dun & Bradstreet
  • Your business license (if applicable)
  • A business bank account
  • Business phone number listed on 411

They will ask for your SSN for identification purposes. You can use a $500 deposit instead of using a personal guarantee if you have less than one year in business. Their terms are net 15.

The CEO Creative

The CEO Creative reports to Equifax and Credit Safe. They offer low prices on electronics, wireless earbuds, cameras for cars and trucks, speakers and more. They also have quality custom design and branding services. You can create your own logo, business cards, and business accessories.

There is a membership fee, and the minimum order before they will report to the business credit bureaus is $40.

To qualify, you need the following:

  • Your corporate entity must be in good standing with the applicable Secretary of State
  • Business credit history
  • EIN
  • Company address matching everywhere
  • Your business license (if applicable)
  • A business bank account
  • At least 120 days in business

Grainger Industrial Supply

Grainger sells hardware, power tools, pumps and more, in addition to performing fleet maintenance. They report to Dun and Bradstreet.

If a business doesn’t have established credit, they will want to see additional documents like accounts payable balance and business financials. Terms are Net 30, Net 45, Net 60, or Net 90.

To qualify, you need:

To be an entity in good standing with Secretary of State

  • EIN
  • Business address (matching everywhere)
  • D-U-N-S number
  • Business license (if applicable)
  • Separate, dedication business bank account
  • Business registered to Secretary of State (SOS) for at least 60 days

What’s After Tier 1 Vendors

When you choose to build business credit this way, you need 3 to 5 accounts reporting before you qualify for vendors in the next tier. Use vendors in Tier 1 to buy the things you need for your business anyway. As a result, you will be well on your way to building a strong business credit portfolio.

The goal is at least 10 business credit accounts reporting to your business credit report. For some, it is possible to get those 10 accounts from any tier by offering a personal guarantee. However, even if this is possible for you, it’s not always the most strategic move. It’s not wise to have all of your business credit tied to your personal credit.

Some business accounts require a personal guarantee regardless. But the more credit you can get in the name of your business without a personal guarantee, the better. Tier 1 vendors are the gateway to building a strong business credit profile with minimum personal guarantee.

The post Tier 1 Business Credit – Dive Into the Truth appeared first on Credit Suite.

Why a 2022 Credit Plan is So Important

What is a 2022 Credit Plan?

A credit plan for 2022—or for any year, is a way to better organize a necessary task, which is building business credit. A plan will help you save time and money. And you’ll avoid the frustrations of denials and delays.

How the Plan works

It’s not one size fits all. There are measurable, qualitative differences between startups and seasoned businesses. And there are differences between businesses with just a year in business, and those with five years or more. We call these phases. Your options for credit and financing differ depending on phase.

Why Should You Map Out a Credit Plan for Your Business?

You could conceivably just apply for credit willy-nilly. And you could hope that you’re doing it right. But a plan helps you bypass unnecessary delays. And it keeps you focused. Your eyes stay on the prize.

The Phases in a 2022 Credit Plan

Every business begins as a Startup, phase 1. Your business might be just barely squeaking by. Once you’re past the startup stage and making money, you swing into Development, AKA phase 2. Now you’re making some money steadily. The Growth segment of your business’s life is phase 3, where you make more steady money and can afford to look past the next quarter or year.

Phase 4 is Maturity, where your business makes good, predictable money, hiring people, and expanding with ease. In this phase, you’re way past hanging by a thread. The final phase is 5, Exit. Here, you look to pass your business on, whether through sales or willing it to your heirs.

Your Business Plans for the Future

Where do you see your business in, say, a half a decade, or more?

  • Do you triple your revenue?
  • Bring on more employees?
  • Replace your fleet or other equipment?
  • Retire and pass your business along to a family member or sell the company?
  • Something else?

All these scenarios require funding! Even going concerns with stable, steady revenue can experience emergencies, or need to seize a business opportunity quickly and before they have the funds. All businesses can use business credit to achieve their aims. Even if you’ve already been through some phases, checking out earlier phases could help you see if you missed anything. And if you’re just starting out, reviewing later phases could show you your business’s future so you can be prepared.

2022 Credit Plan Phase 1: Setup and Launch

Setting up a business is a lot more than just saying you’re in business. The way the business is set up can directly affect the ability of your business to succeed. This first phase covers your first six to twelve months or so of existence. Let’s start with your brand new startup’s fundability™.

Fundability

Fundability is a business’s ability to get funding. Much of the power to get business money is in your hands. A business starts with no credit profile. But nearly half of all companies fail in their first 5 years, and about 2/3 in the first 10. This means that new businesses don’t seem fundable to lenders. You can change that by building for fundability from the jump.

Business Name

Let’s start with your business name. Always check with your Secretary of State—the name may have to be unique. Make sure your SOS has all necessary, up to date, and correct information for your company. Make sure that you are in good standing with them, and your entity is active. You have to file annual reports and pay an annual fee to stay active.

Keep the name of a high-risk or restricted industry out of your business name. Your business can be Amy’s rather than Amy’s Cannabis Dispensary. There is nothing underhanded about this. It is completely legitimate and honest.

A common reason for loan and credit card application denials is the lender can’t easily locate a business offline or online. So make it easy for lenders and credit providers to find your business. Make sure the business name is identical on corporation papers, licenses, utility statements, and bank statements. Also make sure the business name and all other information is the same on every online listing you can find. Keep it identical on all offline listings as well.

Business Address

Your business must be a real brick and mortar building, a deliverable physical address. Hence it can never be a UPS box or a PO Box. Some lenders do not approve and fund unless this criterion is met. A virtual address can also be a good idea if you need to hold a meeting or an interview, as it’s a lot more professional than using your kitchen table. We like Regus, Davinci, and Alliance Virtual Offices. But keep in mind there are credit providers that do not accept virtual addresses.

Business Entity and EIN

Get a free EIN for your business and choose your business entity at IRS.gov. To truly separate business credit from personal credit your business must be a separate legal entity, not a sole proprietor or partnership. Only incorporating creates a new and separate entity. By default, this reduces your personal liability. Other entities (like partnerships) don’t. File with the Secretary of State for your state. Set up your entity in the same state as your business address.

NAICS Codes

The IRS website is also where you choose the NAICS code for your business. NAICS codes help the government collect, analyze, and publish statistical data on the business economy. For example, per the NAICS, the 484230 code covers Specialized Freight (except Used Goods) Trucking, Long-Distance. The 484110 code covers General Freight Trucking, Local. A trucking company which performs both functions could technically go with either code.

Neither 484230 nor 484110 is on the NAICS list of high risk and cash-intensive businesses. But that list is from 2014. According to the NAICS, they don’t have any current plans to update the list. High risk NAICS codes can affect your ability to get traditional loans, but other providers may be able to look beyond them.

Business Phone and 411 Listing

It’s easy and inexpensive to set up a virtual local phone number or a toll free 800 number. A cell or home phone number as your main business line could make your business less fundable—but a VOIP is fine. And if you don’t want customers calling you on the road all day, do not use a personal cell phone as the business phone number. It also helps with fundability to have a dedicated business phone number. Your number needs a listing with 411 for most credit issuers and lenders to approve you. Check for your record to see if you’re listed and your information is accurate. No record? Then use ListYourself.net to get a listing.

Business Web Domain and Professional Website

Lenders and credit providers research your corporation on the internet. It is best if they learned everything directly from your corporate website. Because not having a professional website can hurt your chances of getting corporate credit. A Facebook page or a listing on Yelp is no substitute for an actual company website. You can buy web hosting from a hosting company like GoDaddy or HostGator.

Try to make your domain the same as your business name. Add a company email address on the same domain as your website. This often comes from a website domain provider, and may even be free with your hosting package. This is not just professional; it also greatly helps your chances of getting approval from a credit provider. Do not use Yahoo, AOL, Gmail, Hotmail, or similar kinds of email.

Business Licenses

Contact state, county, and city government offices to see if there are any required licenses and permits to operate your business. Licensing requirements differ depending on state, town, and industry. Being fully licensed builds credibility in your business, and that can help you get more customers. Not being licensed can mean fines, and maybe even jail time. Don’t risk it and get your licensing!

Business Bank Account in the Business’s Name

You must have a bank account devoted strictly to your business. The IRS does not want you commingling funds. Make accounting easier and reduce the risk of audit at tax time. Keep personal and business funds separate. Having a business-only bank account makes that easy. Many vendors require that you open a business-only bank account. Use your EIN to open a bank account and to build a business credit profile. And while you’re at it, get a merchant account so you can accept credit cards from your customers.

Get Set Up with the Business Credit Reporting Agencies

Start with Dun & Bradstreet because they are—by far—the largest business CRA. Run a search for your business on D&B’s website. If you can’t find it, then you’ll need to get a free D-U-N-S number on the D&B site. A D-U-N-S number plus 3 payment experiences leads to a PAYDEX score. So you need a D-U-N-S number to start building business credit, plus it is another common vendor requirement. Once you are in D&B’s system, search Experian and Equifax’s sites for your business.

Start Your Business Credit History

You get the most favorable funding by paying all bills on time, which means:

  • A PAYDEX score of 80
  • Equifax Credit Risk Score of 90 or better
  • A good FICO SBSS score, which is driven (in part) by on-time payments and business credit history

For Experian, historical behavior (payment history) is 5—10% of the total score. So make paying your company’s bills on time a cornerstone of your business credit building efforts.

Business Credit Building from the Ground Up with Your 2022 Credit Plan

Credit Plan Credit Suite info about vendor accountsStart with vendor accounts, a proven way to start building business credit. Vendor credit is generally not attached to a bank. So under federal law a Social Security number is not required. This is unlike bank loans and bank cards. So you can legitimately leave the SSN field blank, to force them to pull your business credit under your EIN.

Using Business Credit Vendors in Your 2022 Credit Plan

Check out three of our favorite starter vendors for any industry:

  • The CEO Creative
  • Grainger Industrial Supply
  • Uline

All three report positive payment experiences with your company.

The CEO Creative

Reports to Equifax and Credit Safe. They had been reporting to D&B up till December 2020 but stated that they are working to restore that. Get low price electronic, and quality custom design and branding services. With The CEO Creative, you can create your own logo, business cards, business accessories, etc.

Membership fee includes access to all their products, and member discounts. Get access to web printing and graphic design at a discounted rate. You must pay an annual fee to run your business credit report and maintain monthly reporting. Membership fee is not reported to credit bureaus. Minimum order of $40 to report. Remember: reporting to D&B is on hold right now.

Qualifying for The CEO Creative

Your corporate entity must be in good standing with the applicable Secretary of State, and you must have an established business credit history. You also need:

  • EIN
  • Company address matching everywhere
  • Your business license (if applicable)
  • A business bank account
  • At least 120 days in business

You must pay a yearly membership fee of $69.00. Apply online or over the phone. Terms are Net 30.

Grainger Industrial Supply

They sell hardware, power tools, and more. And they also do fleet maintenance. They report to Dun and Bradstreet. In addition to their standard qualifications, if a business doesn’t have established credit, they want to see additional documents like accounts payable, income statement, balance sheets, etc. Terms for Grainger Industrial Supply are Net 30, Net 45, Net 60, or Net 90.

Qualifying for Grainger Industrial Supply

Your business entity must be in good standing with Secretary of State. You also need:

  • EIN
  • Business address (matching everywhere)
  • D-U-N-S number
  • Business license (if applicable)
  • A business bank account

Your business must be registered to Secretary of State (SOS) for at least 60 days. Apply online or over the phone.

Uline

They sell shipping, packing and industrial supplies. Uline reports to Dun & Bradstreet and Experian. You MUST create an account with them before starting to build business credit with them. Terms are Net 30.

Qualifying for Uline

Your business entity must be in good standing with the Secretary of State. You also need:

  • EIN
  • Business address (matching everywhere)
  • D-U-N-S number
  • Business license (if applicable)
  • A business bank account
  • Business phone number listed in 411
  • D&B PAYDEX score of 80 or better

Application may be approved for net 30 at time of order. Upon final review, Credit Department may change to a few prepaid orders before granting Net 30.

Business Credit Building with Credit Cards with a PG

The idea is to help you qualify for business credit with cards that you will use. As you continue building, more time in business helps. But to get started, you may need to give a personal guarantee. That’s okay; that’s a part of the strategy.

When you provide a personal guarantee, you are adding your Social Security number to the application. So expect a hard inquiry. You’re also adding the details of your personal income to the application.

Good Personal Credit is Also an Asset You Can Leverage in Your 2022 Credit Plan

If you already have good personal credit, then you’re all set. But if not, you can work with a credit partner or guarantor. And never stop improving your personal credit, no matter what your FICO score is.

Phase 1 Funding Option #1: Our Credit Line Hybrid

This is a form of unsecured funding. Our credit line hybrid has an even better interest rate than a secured loan. Get some of the highest loan amounts and credit lines for businesses. You can get 0% business credit cards with stated income. These report to business CRAs so you can build business credit at the same time. This gets you access to even more cash with no personal guarantee. You need a FICO credit score of at least 680 or a guarantor with good credit to get an approval. No financials are necessary.

Phase 1 Funding Option #2: 401(k) Financing

This is not a loan. You do not have to pay an early withdrawal fee or a tax penalty. You put the money back by contributing, just like with any 401(k) program so you won’t lose your retirement funds. The IRS calls this a Rollover for Business Startups (ROBS), which is a separate entity with its own set of requirements. The plan, through its company stock investments, rather than the individual owns the trade or business.

This financing isn’t a loan against, your 401(k), so there’s no interest to pay and does not use the 401(k) or stocks as collateral. Instead, this is simply a movement or change of custodian. Your 401(k) must have over $35,000 in it and cannot be from a business where you are currently employed. You can get 401(k) financing even with severely challenged personal credit.

Phase 1 Funding Option #3: Securities-Based Lending

Some lenders make loans using securities (like stocks and bonds) as collateral. Securities-based lending provides ready access to capital. The only restrictions to this kind of lending are other securities-based transactions, like buying shares or repaying a margin loan. You continue to earn interest on stocks pledged as collateral. But you will have challenged personal credit.

Phase 1 Funding Options Include Selling Part of Your Business’s Equity

Your business and its potential are assets. Selling off some business equity can take a few different forms. This depends on how much control you’re comfortable with ceding.

So talk to people you know about angel investing. Angels buy a smallish stake in your company. They usually don’t expect as big a return as venture capitalists do. VCs might also buy a stake, but they generally just want paradigm-changing businesses. Most straightforward industries won’t fill the bill unless your take on the industry is utterly unique. Another way to sell part of your equity is to take on another founder or partner.

Phase 1 Funding Option #4: Crowdfunding

Crowdfunding success isn’t guaranteed. And crowdfunding platforms like Kickstarter take a percentage of any money you raise. But it can still be a way to get a cash infusion without giving up equity. If you’re exceptionally good online and have a compelling service and story, then you’re more likely to succeed than most people. Since crowdfunding campaigns are time-consuming, don’t start one unless your realistic chances of success are better than half.

Phase 1 Funding Option #5: Grants

Grants can come from the government or private businesses. So expect a lot of competition, difficult entry requirements, and not a lot of money. But it’s another way to get some cash without selling a chunk of your business. You may find there are few grants for your industry. But you still may be able to score grants based on the kind of entrepreneur you are, e. g. female, disabled, LGBTQ+, etc.

Phase 1 Goals for Credit and Funding

Right now, you have minimal Growth Monthly Revenue (GMR). So this is a fast paced growth plan. Throw it against the wall and take what you can get right now. Look at some short sighted daily and weekly goals for quick cash and growth. During this phase, your focus is on the essentials to create a viable business. Your goal is to build your consistent revenue to $10,000 per month and continue to improve your personal credit. Let’s move onto phase 2.

2022 Credit Plan Phase 2 Development: $1,000 to $10,000 GMR

In Phase 2, start developing marketing. Currently, you’re at an aggressive sales pace adding nurture and longer sales cycles. Use medium term monthly growth planning (campaign to campaign). So it’s time for software implementation and system development. You’re building the blocks of how your business is going to be, now and in the future. This phase should run somewhere between the first 6—24 months from launch.

Phase 2 Credit Options

Your credit options multiply once you get to Phase 2, including:

  • Business credit cards (No PG)
  • Advanced vendors
  • Vehicle financing
  • Cash flow management with providers like Brex and Divvy

Business Credit Cards with No Personal Guarantee

As you continue to build exceptional business credit and pay your bills on time, credit providers trust you more. So you can get higher limits and better terms. And you can start to get business credit cards with no PG.

No PG (Personal Guarantee) Financing

With no PG financing, you can continue building exceptional business credit and pay your bills on time. In general, any of the following  eliminate the need to provide a personal guarantee:

  • good business credit
  • a decent amount of time in business or
  • good personal credit

Much like with any other kind of business borrowing, the more assurances you can give the lender, the better.

Advanced Vendors in Your 2022 Credit Plan

There are many vendors who do not report to the business credit reporting agencies unless you default. But they’re still a good idea, because credit can help you beyond business credit building. Not having to put up 100% of the costs of equipment or a building or anything else can help with budgeting. Credit can sometimes be the only way to take advantage of a limited time opportunity if you don’t have cash right now. And if your business credit cards offer rewards, cash back, or points, then using them is to your advantage

Vehicle Financing

Vehicle financing can be a great way to get a business vehicle without having to wait until you can just pay cash for it. Note: business owners may be required to personally guarantee vehicle loans. And if you are a co-borrower, the loan most likely reports to your personal credit report. Some loans have a prepayment penalty. It is a good idea to have a loan proposal, detailing your business, loan needs, and financial statements. Here are a couple of vehicle financing choices from us.

Ford Commercial Vehicle Financing Through Credit Suite

Ford offers several commercial vehicle financing options. These include loans, lines, and leases to actual business entities and not sole proprietorships. Get a loan or a lease. Ford may ask for a PG if you are not approved on the merit of your application. Apply at the dealership. Ford reports to D&B, Experian, and Equifax.

Qualifying for Ford Commercial Vehicle Financing: Qualifying

Your business entity must be in good standing with the applicable Secretary of State. You also need:

  • EIN
  • Business address (matching everywhere)
  • D-U-N-S number
  • All business license(s)
  • A business bank account
  • Strong business credit history
  • Must have a good Experian business credit score
Ally Car Financing Through Credit Suite

Ally provides personal financing, but they also report to business credit bureaus. If your business qualifies for financing without the owner’s guarantee, you can get financing in the business name only. Ally reports to D&B, Experian, and Equifax.

Qualifying for and Ally Commercial Line of Credit

Your business entity must be in good standing with your Secretary of State. You also need:

  • EIN
  • Business address (matching everywhere)
  • D-U-N-S number
  • All business license(s)
  • And a business bank account
  • Bank reference
  • Fleet financing references

If you provide a PG, Ally does not report to the personal credit bureaus unless the account defaults.

Qualifying for Ally Commercial Vehicle Financing

Get a lease or a loan. You need most of the same things as you need for an Ally Commercial Line of Credit, except for a bank reference and fleet financing references. There is no minimum time in business requirement. Apply in person only; dealer will advise if approved or PG needed.

Cash Flow Management

There are several tools that can help streamline managing small business finances. Options like Brex, Divvy, Expensify, Lola, and more are growing in popularity.

Brex and Divvy

Brex and Divvy are business money management systems that integrate with your accounting software. You can track expenses and, depending on the level of service you choose, they also help with paying bills and controlling spending. Brex has a partnership with the FDIC and your funds are secure. Everyone that opens a Brex cash account gets a corporate card. Brex reports any payments to Dun & Bradstreet. Divvy reports to the Small Business Finance Exchange, which in turn provides data to all SBFE partners, including business credit bureaus.

Phase 2 Funding Options

In Phase 2, your funding options also increase, to:

  • Merchant cash advances
  • Revenue lending
  • Lines of credit (Fundbox)
  • Equipment financing/leasing
  • Invoice factoring

Merchant Cash Advances

An MCA technically isn’t a loan; it’s a cash advance based on the credit card sales of a business. A small business can apply for an MCA and have an advance deposited into its account quickly. So you can offer Net 30 terms but not have to wait a month to get paid. With an MCA you get funding based strictly on cash flow as verifiable per business bank statements. A lender mainly just wants to see consistent deposits.

Business Revenue Lending

You can technically qualify with only one year in business. But the annual revenue requirement is high enough that phase 2 should make more sense. You can raise capital from investors who get a percentage of the enterprise’s ongoing gross revenues in exchange for money invested until a predetermined amount is paid. Often this amount is between 3—5 times the original amount invested. Monthly payments fluctuate with revenue highs and lows and continue until you’ve paid back the loan in full.

Fundbox

Fundbox connects directly to your online accounting software when deciding to fund your business. You can get revolving line of credit for up to $100,000. Fundbox auto debits your weekly payment from your bank account. You don’t need to show a minimum personal credit score or a minimum time in business. But ideally Fundbox prefers 6 months in business or more.

Equipment Financing

Use a loan or lease to purchase or borrow hard assets for your business, equipment like a truck or a laptop. Pay predictable amounts every month. You can build business credit on a program like this.

Equipment Leasing

Or you can lease equipment, rather than buy it outright. You often put down less money than if you were buying the equipment. You may be able to negotiate flexible terms with an equipment lease, and it’s easy to upgrade equipment after your lease ends. This is helpful if your equipment is something like a computer which quickly becomes obsolete.

Equipment Sale-Leaseback

If you already own your equipment free and clear, did you know that you can use that as collateral for financing? Sell the equipment to a lender for cash. And then lease it back from them. You can unlock Section 179 tax savings and depreciate your entire equipment purchase in the first year. You need at least one larger piece of higher value equipment to qualify.

Invoice Factoring

If you have open invoices and extend credit to customers in some form, then you can get paid faster with factoring. Often this involves invoices with net terms, like net 30, 60, or 90. To be paid faster, turn those invoices over to a factoring company. They immediately give you an agreed upon percentage of the total of the invoices, like 80%. When your customer pays, the factoring company keeps their fee. Then they send you the rest. But never forget—factoring only works if your customers pay.

Phase 2 Goals for Credit and Funding

Goal #1 should be strong business credit (10—12 accounts) and good personal credit. You also want to build consistent revenue to $10,000 or more a month. Always develop business connections in your community and with potential lenders. Let’s move onto phase 3.

2022 Credit Plan Phase 3: Growth: $10,000 to $2 Million GMR

Now you’re in a time of successful growth…what you’re doing is working! It’s time to start optimizing systems and operations. You’ll undergo massive team and infrastructure development. Plus long term growth and planning for a semi-annual to annual focus on lifetime customer value. You need to make some high level strategic hires (Managers, VP’s, Essential C levels). This phase happens at about 24 months or more from launch.

Phase 3 Credit Options

Your Phase 3 credit options put your Phase 1 and Phase 2 options on steroids, with:

  • Team access to vendors and cards
  • Continue growing your vehicle fleet with vehicle financing
  • Vendor portfolio growth

Phase 3 Funding Options

Phase 3 opens your funding options up to:

  • All alternative options available
  • SBA loans
  • Bank loans

Alternative Options

This can often mean online lending. For certain industries, it is one of the only ways to get money. Before you dip into your savings, investigate business lending for your industry. Because lenders that specialize in lending to your industry are out there.

SBA Loans in Your 2022 Credit Plan

More time in business also makes SBA loans a real possibility for your business. It’s easier to get an SBA loan in Phase 3 versus earlier. This is because you can more readily show your business is established and making money. Demonstrated profitability and responsible credit and bank account management improve your chances of getting an approval for an SBA loan. SBA loans have great terms, which is why you should be striving to be eligible for one.

Traditional Bank Loans

Big banks only sign off on about 25% of the small business loan applications they see. Term loans often have lower interest rates than many other funding options, and also tend to be for higher loan amounts. Most likely, you must undergo a personal credit check and/or provide collateral.

Phase 3 Goals for Credit and Funding

In Phase 3, you take your business to the next financial level, so your goals are:

  • Profitability (to calculate loans)
  • Maintaining your good personal and business credit
  • Building up to $2,000,000 in annual gross revenue
  • Maximizing leverage of cash flow with vendors and business credit

Grow Your Vendor Portfolio with Retail Credit

You can get retail credit comes from major retailers. Retailers check if your business information is uniform everywhere, and if your business is properly and thoroughly licensed. Terms can be revolving. You  need at least 3 accounts reporting to the business CRAs.

Grow Your Vendor Portfolio with Fleet Credit

Use fleet credit to:

  • Buy fuel
  • Maintain vehicles of all sorts
  • Repair vehicles

These tend to be gas credit cards. There may be a minimal time in business requirement.

Grow Your Vendor Portfolio with Business Credit Cards

Business credit cards are more universal-type credit cards, like MasterCard. So you can use them pretty much anywhere. These cards may even have rewards programs. Terms can be revolving. Often you need to have at least 14 accounts reporting to the business CRAs. There can be longer time in business requirements. Let’s move onto phase 4.

2022 Credit Plan Phase 4: Maturity: $2M to 5M+ Annual Income

So consistent growth is key. Now you’re aiming for long term consistent and stable growth and moving toward market domination. This can include competitor buyouts and acquisitions. Product development and expansion becomes critical for longevity. Now it’s time for the big hire. You get to fill out C Level, Directors, and middle management. Yes, your business can become this big! This phase can happen at around four to five years from launch.

Phase 4 Credit Options

So now, the sky is pretty much the limit! You should be able to get:

  • Most major credit cards with no PG
  • All vendors should be accessible

And you should be able to leverage reports for specific vendors. This includes asking for a credit line.

Phase 4 Funding Options

In addition to everything we’ve already talked about, your business can take full advantage of:

  • Private equity
  • Investors

You might even sell shares in your corporation or go public!

Phase 4 Goals for Credit and Funding

So now you’re playing the long game. Your mission is to look to the future and help your business for decades to come. Therefore, you must:

  • Balance costs vs cash flow vs business profit
  • Leverage funding for expansions and buyouts

So you should maximize and leverage of cash flow with vendors and business credit. Let’s move ahead to phase 5.

2022 Credit Plan Phase 5: Exit

By now, your business should be very well established. Hence it’s time to cash in on all the work you have invested. Now your funding and credit has the long game return. A business credit portfolio is transferable and increases the value of your business.

Now your proven track record with merchant cash advances or revenue lending pays off big time, as it can keep your business cash flow moving through any difficulties. And a proven track record with the SBA, and a profitable banking relationship, also improves the value of your business. People want to buy something they can lend against if necessary.

Phase 5 Funding Options

Selling can mean you’re retiring, or maybe trading one form of entrepreneurship for another. Or you may want to change industries yet remain an entrepreneur. In Phase 5, you can:

  • Self-fund the sale in structured buy outs
  • Go to the SBA for acquisition money

In essence, you should be ready to sign for your own buyout. A profitable, seasoned business can be an exceptionally valuable legacy.

Your 2022 Credit Plan: Takeaways

Your successful business will go through several phases throughout its lifetime. These phases dictate how you can best finance your business, and the kinds of credit you’re most likely to qualify for. Follow the steps in order and reap the rewards. Contact us today for a free consultation to see where you are in your journey, and what you qualify for.

The post Why a 2022 Credit Plan is So Important appeared first on Credit Suite.

5 Ways Small Businesses Can Benefit from a 2021 Credit Review

What is a 2021 Credit Review and Why Should You Do One?

In a time when the economy is tumbling toward a recession, it’s important for small businesses to get their finances in order. Here are tips on how to do that by doing a 2021 credit review.

Also, we’ll show you how this can give your business an advantage over competitors who are not aware of what they’re missing out on. And why financial experts recommend this type of review. So look at the 5 ways a 2021 credit review can help your business. Get more information about what you need to do now so you don’t have any regrets later!

All year, we’ve been talking about building business credit. And we’ve talked about business credit reporting agencies and their reports. But do you know how to read your business credit reports? And do you know what to do with the information you might find?

The Benefits of Doing a 2021 Credit Review

Knowing what’s in your business credit reports can only help you. Learning what the CRAs are scoring you on will help focus your efforts. For example, if on-time payments matter to a CRA more than utilization percentage, then wouldn’t it be a good idea to concentrate on paying your credit bills on time? <Spoiler alert> they do.

Why it is Important for You to Know About Your Business Credit Scores

Business credit is an actual asset, and it is worth money! That means you can factor business credit into the cost of your business, should you ever decide to sell. Plus, what you do to build business credit will often help you build a clientele!

Better business credit scores will help you get business financing. They will help you get better financing, with lower interest rates and payback terms. For some entrepreneurs, better business credit scores are the difference between getting some financing….

Or none.

What Information Should be Included in Your Review

You want to be looking at your actual, full business credit reports, which are more than the scores. It’s time to look at the details. These should be reports from:

  • Dun & Bradstreet
  • Experian and
  • Equifax

About the Process

Get your D&B business credit report by signing into the D&B website. You want their CreditMonitor™ product, which shows the most scores. Get your Experian credit report by running a search for your business. You want their CreditScoreSM Report. To get your Equifax business credit report, you’ll need to contact them. Specify that you want a single Equifax business credit report.

How to Get Started with a 2021 Credit Review Now

If a highly detailed report isn’t in the budget right now, at least a shorter summary report will keep you informed. And it will get you in the habit of checking your credit reports. Today, we’ll look at high level information. This is what you absolutely need to know right now.

#5 Way a 2021 Credit Review Can Benefit Small Businesses: Get to Know Your Dun & Bradstreet Business Credit Report

It always makes sense to start with D&B. They are the biggest business CRA in the world, by far! You need a D-U-N-S number to start building business credit. If you don’t have a D-U-N-S number, you’ll need to get one; they’re free. This number gets your business into their system.

But your business will not get a PAYDEX score, unless there are at least 3 trade lines reporting, and a D-U-N-S number. Your business must have BOTH to get a D&B score or report.

D&B Data

D&B’s database contains hundreds of millions of companies around the world, both active and out of business. So D&B lists over a billion trade experiences. It works to improve its analyses to assure the greatest degree of accuracy possible. To ensure as accurate a report as possible, give D&B your company’s current financial statements.

Predictive Models and Scoring

D&B takes historical information to try to predict future outcomes. This is to identify the risks inherent in a future decision. They take objective and statistically derived data, rather than subjective and intuitive judgments. There are sample reports online available on the D&B website.

D&B Reports

D&B offers database-generated reports. These help their clients decide if your business is a good credit risk. Companies use the reports to make informed business credit decisions and avoid bad debt. Several factors go into creating such a report.

In general when D&B does not have all the information that they need, they will show as much in their reports. But missing information does not necessarily mean your company is a poor credit risk. Instead, the risk is unknown.

Executive Summary

The report starts with basic company information, like:

  • Number of employees
  • Year your business was started
  • Net worth
  • Sales

D&B Rating

This rating helps companies check your business’s size and composite credit appraisal. Dun & Bradstreet bases this rating on data in your company’s interim or fiscal balance sheet plus an overall evaluation of your business’s creditworthiness. The scale runs 5A—HH. Rating Classifications show your company size based on worth or equity. D&B assigns such a rating only if your company has supplied a current financial statement.

The rating contains a Financial Strength Indicator. It is calculated using the Net Worth or Issued Capital of your company. Plus there’s a Composition Credit Appraisal. This number runs 1 through 4, and it shows D&B’s overall rating of your business’s creditworthiness.

The scores mean:

  • 1—High
  • 2—Good
  • 3—Fair
  • 4—Limited

A D&B rating might look like 3A4.

D&B PAYDEX

This part shows two gauges:  an up to 24 month PAYDEX, and an up to 3 month PAYDEX. As a result, you can see recent history and your company’s performance over time.

Both gauges have the same scores:

  • 1 means greater than 120 days slow (when it comes to your business paying bills)
  • 50 means 30 days slow
  • 80 means prompt payments
  • 100 means anticipates

100 is the best PAYDEX score you can get. The PAYDEX score is Dun & Bradstreet’s dollar-weighted numerical rating of how your company has paid the bills over the past year. It shows how well your company pays its bills.

Predictive Analytics

This next section shows the chance of business failure. It also shows how often your business is late in paying its financial obligations. These are comparative analyses: the Financial Stress Class, and the Credit Score Class.

Financial Stress Score

This section shows your Financial Stress Class, and a Financial Stress Score Percentile. The Financial Stress Class runs 1—5, with 5 being the worst score.

Financial Stress Score Percentile

It is a comparison of your business to other businesses. The percentile contains a Financial Stress National Percentile. The Financial Stress National Percentile shows the relative ranking of your company among all scorable companies in D&B’s file. It also contains a Financial Stress Score. The report shows the probability of failure with a particular score.

Financial Stress Score Percentile Comparison

So the idea behind the score is to predict the chances your business will fail over the next 12 months. The average probability of failure comes from businesses in D&B’s database. It is provided for comparative purposes. The Financial Stress Score offers a more precise measure of the level of risk than the Financial Stress Class and Percentile. It is meant for customers using a scorecard approach to determining overall business performance.

Credit Score Class

The Credit Score Class measures how often your company is delinquent in paying bills. Overall numbers run 1—5. 1 is businesses least likely to be late. More granular scores run 101—670. 670 is the highest risk.

Credit Limit Recommendation

It shows a spectrum of risk. Your risk category can be:

  • Low
  • Moderate or
  • High

D&B checks risk using their scoring methods. It is one factor used when creating recommended limits.

D&B Viability Rating

This section contains:

  • Viability Score— to show risk
  • Portfolio Comparison—also a demonstration of risk
  • Data Depth Indicator—descriptive vs. predictive
  • Company Profile—showing if financial data and other info was available

Credit Capacity Summary

This part repeats the D&B Rating above. It includes financial strength, the composite credit appraisal, and payment activity

Business History and Business Registration

This section contains information on ownership. It also shows where your corporation is filed (i.e. which state). This includes the type of corporation, and the incorporation date

Government Activity Summary and Operations Data

This section gives basic information on if your company works as a contractor for the government. It also shows the kind of industry your company is in. It shows what the facilities are like, including general data on its location.

Industry Data and Family Tree

The section shows your business’s SIC and NAICS codes. It also shows where your branches and subsidiaries are. This list is limited to the first 25 branches, subsidiaries, divisions, and affiliates, both domestic and international. D&B offers a Global Family Linkage Link to view the full listing.

Financial Statements

This section is devoted to financial statements D&B has on your business. It shows assets and liabilities, with specifics like equipment, and even common stock offerings.

Indicators and Full Filings

This part shows public records, like:

  • Judgments
  • Liens
  • Lawsuits
  • UCC filings

This part also breaks down where filings are venued, like the court or the county recorder of deeds office. It shows if judgments were satisfied (paid). It also shows which equipment is subject to UCC filings.

Commercial Credit Score

This part shows the Credit Score Class again. It also shows a comparison of the incidence of delinquent payments. It also includes key factors to help anyone reading the report interpret these findings. And it explains what the numbers mean.

Credit Score Percentile Norms Comparison

Here, your company is compared to others based on:

  • Region
  • Industry
  • Number of employees and
  • Time in business

Financial Stress Score and Financial Stress Percentile

This section shows a Financial Stress Class and a Financial Stress Score Percentile. The Financial Stress Class runs 1—5, with 5 being the worst score. he Financial Stress Score Norms calculate:

  • An average score and percentile for similar firms
  • The norms benchmark where your business stands

This is in relation to its closest business peers.

Financial Stress Score Percentile and Financial Stress Score Percentile Comparison

These two scores are a repeat of the Financial Stress Score section, above.

The average probability of failure is based on businesses in D&B’s database. t is provided for comparative purposes. The Financial Stress National Percentile shows the relative ranking of your company among all scorable companies in D&B’s file. And the Financial Stress Score offers a more precise measure of the level of risk than the Financial Stress Class and Percentile. It is meant for customers using a scorecard approach to determining overall business performance.

Advanced PAYDEX + CLR

This section repeats the 24 month and 3 month PAYDEX gauges. It also includes a repeat of the Credit Limit Recommendation. There is also a PAYDEX Yearly Trend. It shows the PAYDEX scores of your business compared to the Primary Industry from each of the last four quarters.

PAYDEX Yearly Trend

The PAYDEX Yearly Trend is a graph. It includes detailed payment history, with payment habits and a payment summary. It helps show if your business pays the bigger bills first or last.

Let’s look at an Experian business credit report.

#4 Way a 2021 Credit Review Can Benefit Small Businesses: Explore Your Experian Business Credit Report

Credit Review Credit SuiteExperian offers data and analytics to businesses to help them better gauge risk. They have a massive consumer and commercial database for checking risk. They have found that blended data and reports work a lot better for them. For troubled businesses, blended scores dropped an average of 30% over the four quarters leading up to a bad event. But the owner’s consumer scores showed no statistically significant decline during the same period. Their best known and most widely used score is Intelliscore Plus℠, a percentile score.

A Typical Experian Business Credit Advantage SM Report

Experian provides a sample report where you can get an idea of what to expect. The best, most accurate and up to date source for this information is the Experian website itself.

Business Background Information

The first part of a report contains:

  • Basic details like business name, address, and main phone number
  • Experian BIN (Experian’s BIN is like Dun & Bradstreet’s D-U-N-S number. It’s a unique identifier for each business in the database)
  • Annual sales
  • Business type (corporation, etc.)
  • Date Experian file established
  • Years in business
  • Total number of employees
  • Incorporation date and state

Experian Business Credit Score

Business Credit Scores run 1—100; higher scores mean lower risk. This score predicts the chance of serious credit delinquencies in the next 12 months. It uses tradeline and collections data, public filings as well as other variables to predict future risk.

Key Score Factors:

  • Number of commercial accts with terms other than Net 1—30 days
  • The number of commercial accounts that are not current
  • Number of commercial accounts with high utilization
  • Length of time on Experian’s file

Experian Financial Stability Risk Rating

Financial Stability Risk Ratings run 1—5; lower ratings mean lower risk. A rating of 1 means a 0.55% potential risk of severe financial distress in the next 12 months. Experian categorizes all businesses to fit within one of the five risk segments. This rating predicts the chance of payment default and/or bankruptcy in the next 12 months.

This rating uses tradeline and collections info, public filings, and other variables to predict future risk. Key Rating Factors:

  • Number of active commercial accounts
  • Risk associated with the business type
  • Risk associated with the company’s industry sector
  • Employee size of business

Credit Summary

This section contains several counts of various data points. For the most part, details are available further in the report. The info contains:

  • Current Days Beyond Terms (DBT)
  • Predicted DBT for a particular date
  • Average industry DBT
  • Payment Trend Indicator (stable, or not)

This sector also contains:

  • Number of payment tradelines
  • Number of lender consortium experiences
  • The number of business inquiries
  • Number of UCC Filings, bankruptcies, and liens

The last part of this section shows:

  • Number of judgments filed
  • Number of accounts in collections
  • Company background (includes founding date, where headquarters are, and what your business does)

Payment Trend Summary

This section shows your company versus your industry on:

  • Monthly payment trends
  • Quarterly payment trends

These are the percentages of on-time payments by month and quarter.

Trade Payment Information

This next part shows details on payment experiences (financial trades). There is also data on:

  • Lender consortium experiences (financial exchange trades)
  • Tradeline experiences (continuous trades)
  • Aged trades and payment trend detail

There is also a link to send any missing payment experiences.

Inquiries, Collection Filings, and Collections Summary

The Inquiries part has the industry making the inquiry and a total made during a given month. The Collection Filings sector has the date, name of the agency, and status (open or closed). If a collection is closed, the Collection Filing sector also has the closing date. The Collections Summary shows: status, number of collections, dollar amount in dispute, and amount collected (even if $0).

Commercial Banking, Insurance, Leasing

For leasing, this section shows:

  • Leasing institution name and address
  • Product type and lease start date and term
  • Original and remaining balances
  • The scheduled amount due
  • The number of payments per year
  • And the number of payments which are current, late, or overdue

Judgement Filings

This sector shows:

  • Date and plaintiff
  • Filing location
  • Legal type and action
  • Document number
  • Liability amount

It also includes cases where your company in the report is the plaintiff or the defendant.

Tax Lien Filings

This part has:

  • Date and owner
  • Filing location
  • Legal type and action
  • Document number
  • Liability amount and description

UCC Filings

This section has:

  • Date and filing number
  • Jurisdiction
  • Secured party
  • Activity (filed, or not)
UCC Filings Summary

This part shows:

  • Filing period
  • Number of cautionary filings
  • Total filed, released, or continued
  • Amended/Assigned

Cautionary UCC Filings include one or more of the following collateral:

  • Accounts
  • Accounts receivable
  • Contracts
  • Hereafter acquired property
  • Leases
  • Notes receivable, or
  • Proceeds

But the Experian Business Credit Advantage SM Report does not have Intelliscore Plus℠. And it does not have the Experian Finance Stability Risk Score.

Experian’s Intelliscore Plus℠

It is a highly predictive score. This score provides detailed and accurate data on your business’s risk. It blends commercial data and consumer data on you, the business owner or guarantor. Reports include trades, legal filings, and more. Business credit scores run 0—100; 0 represents a high risk.

This score shows the percentage of businesses scoring higher or lower than yours. Many large financial institutions use it. So do over half of the top 25 P&C insurers and most major telecommunications and utility firms. Industry leaders in transportation, manufacturing, and technology also use Intelliscore Plus as their main risk indicating model. It has more than 800 aggregates or factors affecting business credit scores. Experian checks the scores of the millions of businesses in their database.

The Experian Financial Stability Risk Score (FSR)

FSR predicts the potential of your business going bankrupt or defaulting on obligations. The score finds highest risk businesses by using payment and public records which include:

  • Severely delinquent payments of 61+ and 91+ days
  • High utilization of credit lines
  • Tax liens
  • Judgments
  • Collection accounts
  • Industry risk
  • Short time in business, etc.

FSR shows a 1—100 percentile score, plus a 1—5 risk class. The risk class puts businesses into risk categories. The highest risk is in the lowest 10% of accounts. A score of 66—100 and a risk class of 1 means a low risk of default or bankruptcy. But a score of 1—3 and a risk class of 5 means your business has a high risk of default or bankruptcy.

Time to look at Equifax.

#3 Way a 2021 Credit Review Can Benefit Small Businesses: Understand Your Equifax Business Credit Report Better than You Ever Have

You can get a sample Equifax business credit report online. The company gets its data through a data sharing agreement with the Small Business Exchange. And it uses Net 30 type industry trade credit info.

Equifax Business Credit Reports

Equifax will combine financial data with industry trade credit data and add in:

  • Utility and telephone data
  • Public record information (bankruptcies, judgments, and tax liens)

Company Identifying Information

The first section shows identifying info, like business name, and address and telephone number. This section will also include your Equifax ID. An Equifax ID is how Equifax can tell your business from similarly-named businesses.

Credit Risk Score

This score runs 101—992. Higher numbers are better. This section also shows key factors. These are positives and negatives about your business. Such as the age of your oldest account, if you have any charge-offs, and the size of your business.

Credit Utilization

This pie chart shows which percent of your available credit line you are using. It also has labels to show how much each percentage is. It is only for your financial accounts.

Payment Index

This score runs 0—100. Higher numbers are better. It also shows Industry Median.

  • 90+ means paid as agreed
  • 1—19 means 120 or more days overdue

Days Beyond Terms

This is a line graph of the average days beyond terms by date reported. It is for nonfinancial accounts only. Plus it shows any recent trends. So if you’ve improved your payment habits, it shows up here.

Business Failure Score/Inquiries

The score runs 1000—1880. It shows key factors like recent balances. The section on inquiries shows the date, and if it was an inquiry on a financial or nonfinancial account.

Bureau Messages

This part seems to be a free form field. Its purpose is to add notes to your profile. These can be notes on the number of your locations, or any business aliases.

Bureau Summary Data

This section shows:

  • The number of financial and nonfinancial accounts
  • Date the credit became active
  • Number of charge offs and total dollars past due
  • Most severe status in 24 months
  • Single highest credit extended
  • Total current card exposure
  • Median balance and average open balance

It also shows Recent Activity, which includes:

  • The number of accounts delinquent
  • New accounts opened
  • Inquiries and
  • Accounts updated

Public Records

This section has:

Type Status:

  • Bankruptcy
  • Judgments, whether satisfied or not
  • Liens filed and opened, or released
  • Number, dollar, and most recent date filed

If there are none reported, then the date field will show that.

Additional Information

The final section appears to contain miscellaneous information, like:

  • Alternate Company Names and DBAs
  • Owners and Guarantor Names (name, type, date reported)
  • Business and Guarantor Comments (seems to be another freeform field) and
  • Report Details (the date of the report)

#2 Way a 2021 Credit Review Can Benefit Small Businesses: You Can do a 2021 Credit Review on Your Own

Checking your business credit reports in depth is the way to go to do your own credit review. But how do you know if there’s an issue you need to address? The answer is business credit monitoring. Each of the business CRAs has their own plan(s).

D&B Business Credit Monitoring

Pricing is current to September of 2021.

Use D&B Credit Monitor to check your report. It costs $39/month. View recent scores and ratings and benchmark your business versus your industry. It also alerts you to special events like suits, liens, and judgments. It includes dark web monitoring. This means it scans the dark web to help protect your business from possible fraud.

Experian Business Credit Monitoring

Prices are current as of September 2021.

  • Business Credit Advantage: $189/year, monitor business credit for 1 year, alerts of changes
  • Business Credit Score Pro: $1995/year with trade details or $1495/year in summary form only, get access to several business credit reports
  • Profile Plus: $49.95 for a single report
  • Credit Score Report: $39.95 credit summary report with score

Experian Subscription Plans: The Business Credit Advantage Subscription Plan

This is just one report including nearly everything Experian offers. This includes:

  • Business Credit Score (Intelliscore)
  • Financial Stability Risk Rating
  • Collections and trade payment details

Experian Subscription Plans: The Business Credit Score Pro Subscription Plan

Get 30 reports per month. This plan does not include:

  • Alert Emails & Monitoring
  • Dispute Resolution Status Alerts
  • 3 Month Score Trend
  • Unlimited Access to Your Report
  • Business Identity Monitoring

Experian Subscription Plans: The Business Credit Score Pro Subscription Plan (Enhanced Version)

Experian also offers an enhanced version of this plan. Get more info, including:

  • Trade payment detail
  • UCC detail
  • Inquiry detail

Currently costs $1,495 per year.

Experian Reports: The Profile Plus Report

Get everything in the Business Credit Score Pro Subscription Plan. Plus (optional with the more expensive report):

  • Trade Payment Detail
  • Inquiry Detail
  • UCC Detail
  • Corporate Financial Information

Experian Reports: The Credit Score Report

Get everything in the Business Credit Score Pro Subscription Plan, but no optional sections. This one is like a one-time version of the Business Credit Score Pro Subscription Plan. You can use it to decide if you want to subscribe to the more expensive plan.

Equifax Business Credit Monitoring

These prices are current to September 2021. These reports include credit summary, and payment trends and public records. So the idea is to help you identify potential risk of late payments and business failure. Order a single Business Credit Report for $99.95. Or order a Business Credit Report multipack (5 for the price of 4) for $399.95.

Tips for Maintaining Good Credit after Your 2021 Credit Review

Pay your bills on time! It’s the most effective and fastest way to raise and maintain good business credit scores. You should also dispute any material inaccuracies in your reports. Inaccuracies are material (important) if they’re dragging down your scores.

Disputing Issues with Your Reports

The business CRAs will not change your scores without proof. They are starting to accept more online disputes. Include proofs of payment with it. These are documents like receipts and cancelled checks. Be specific about the concerns with your report.

#1 Way a 2021 Credit Review Can Benefit Small Businesses: Monitor Business Credit at D&B, Experian, and Equifax for Less

But all these reports are expensive! You could spend HUNDREDS of dollars trying to keep up with reports from all three of the big business CRAs. But… Did YOU know you can get business credit monitoring for all 3 big business CRAs in one place—for less? Credit Suite offers monitoring through its Business Finance Suite (through Nav). See what credit issuers and lenders see. So you can improve your scores and get the business credit and funding you need.

Your 2021 Credit Review: Takeaways

So there are many reasons to review your business credit reports and understand them.

Business CRAs D&B, Experian, and Equifax all provide reports on businesses like yours. They tend to tap similar info and draw somewhat similar conclusions. Paying on time will help your scores more than anything else. And monitoring your reports will help you find errors fast, before they can do a lot of damage. Monitor with Credit Suite for a lot less than if you monitored your reports and scores at each business CRA.

What’s YOUR business’s biggest benefit from doing a 2021 credit review?

The post 5 Ways Small Businesses Can Benefit from a 2021 Credit Review appeared first on Credit Suite.

Top 5 Business Credit Card 0 APR Balance Transfer Options

Looking for a business credit card 0 APR balance transfer option? We put together a list of our top 5 picks to help you quickly and easily find the best option for your business.

Check out how our reliable process will help your business get the best business credit cards.

What Are the Best Business Credit Card 0 APR Balance Transfer Options?

It’s important to note that 0% balance transfers are often promotional or introductory. Things change, and we work hard to keep this information up to date, but be sure to check with each of these business credit card 0 APR balance transfer options specifically to ensure you have the most current information.  For now, here are our top picks.

Mechanics Bank Visa

The Mechanics Bank Visa Business Card has no annual fee. The 0 APR on balance transfers is for the first 20 billing cycles.  Then it increases to  11.99 to 20.00% based on creditworthiness. There is a 3% balance transfer fee or $5, whichever is more.

 

 

 

 

 

PNC Visa Business Credit Card

With PNC Visa Business Credit Card, you earn 5 points per $1 spent on qualifying purchase.  The 0% APR on balance transfers is for the first 9 billing cycles when the balance is transferred in the first 90 days.  There is no annual fee.

 

 

 

 

 

Synovus Business Travel Rewards

This card boasts a 0% APR for the first 6 months and the same for purchases. There is no annual fee.

 

 

 

 

Busey Bank Platinum Card

This platinum card also has no annual fee. The 0% introductory APR on balance transfers and purchase lasts for the first 20 billing cycles. After that, the rate increases from 13.49% to 23.49%, based on creditworthiness at the time the account is opened.  It will vary with the market based on Prime Rate.

 

 

 

Business Credit Card 0 APR Balance TransferBremer Bank Platinum Card

The Bremer Bank Platinum Card offers similar benefits to Busey. The 0% introductory APR for purchases and balance transfers is good for the first 20 billing cycles. Then, it increases to 13.49% to 23.49% depending on your creditworthiness when you open the account. Of course, it will vary with the market based on the Prime Rate.

 

 

How Business Credit Card 0 APR Balance Transfer Options Can Help You Manage Your Business Finances

If you have a high interest balance, you can transfer that balance to a 0% interest rate card and save a lot of money. Not only that, but you can also pay the balance off more quickly.  There are a few things to remember about this however.

First, be aware that there is typically a balance transfer fee, and it can be steep.  If there is a 3% transfer fee and you transfer $5,000, you will actually have an initial balance of $5,150. That may not seem like a lot, but if you do not pay off the balance before the 0% APR ends, and you end up transferring the balance to yet another card, those fees can add up. Watch the dates and be aware of fees.

Check out how our reliable process will help your business get the best business credit cards.

Another thing to consider is that many cards will not let you transfer a balance that meets your limit.  They will have a separate limit for balance transfers.  For example, if your credit limit is $2,000, your balance transfer limit may only be $1,800.

A 0 APR balance transfer card can be a powerful business finance tool, but it must be wielded carefully.  If not, it can actually do more harm than good. For more info on business credit cards and other financing options for your business, contact us today.

The post Top 5 Business Credit Card 0 APR Balance Transfer Options appeared first on Credit Suite.

Hot Topic: Brex for Money Management and Building Business Credit

Brex is a money management tool for businesses. They offer many services, but the big draw for startups and small businesses is the option for a business credit card that reports to Experian and Dun & Bradstreet, thus helping them build a strong business credit score.

Who Is Brex Really For?

They offer a number of services that can help many businesses manage their finances in a more streamlined, efficient manner. But, what types of business do they work best for? Will they work for your business?

What Brex is Meant to Do

This is a business money management system that integrates with your accounting software. It allows you to track expenses and, depending on the level of service you choose, can also help with paying bills and controlling spending. This is the purpose.

Start by opening a Brex cash account. This is not a bank, but they do have a partnership with the FDIC to ensure your funds are secure.

Check out how our reliable process will help your business get the best business credit cards.

Everyone that opens a cash account gets a corporate card. It works similar to how a debit card does, drawing from your cash balance daily. However, unlike a debit card, they report these draws as payments on your account to Dun & Bradstreet.  In turn, your business credit score grows. This is, assuming your business is set up properly to have an established business credit profile.

Since this card is secured by the balance in your cash account, and limited to that balance, you do not have to worry about underwriting. However, since the balance in the cash account is money you already have, it cannot really be an option for funding your business. Rather, it’s a way to manage the funds you already have and use them to build business credit.

Brex for Funding

There is also another option if you qualify. They do offer a more traditional card. This option offers limits that will go up to 20x higher than that of a typical corporate card. Instead of checking your personal credit score, they base approval and credit limits on business financial information, including available cash, spending patterns, and more. This means it may be more accessible to those that do not have a great credit score.

If you qualify for this card, you will have to pay your entire balance monthly.  This is a step up from paying daily as you go, like with the cash card. It’s more like net financing.  You cannot carry a balance from month to month, but it is more flexible than the cash card because you are not limited to the balance in your cash account.

Both cards offer nice rewards in terms of points that you can redeem for a number of things like:

Also, you can get cards for your team members and set individual spending limits. This is a major plus for managing spending. There are even virtual card options for online spending. Brex integrates with common accounting programs including Quickbooks, Xero, NetSuite, and Gust, among others.

Since you pay the card off from month to month, there is no interest. There is also no fee for standard service, but you can upgrade to premium service at a cost. Currently premium accounts start at $49.99 and offer more expense management options.  You can use rewards points, if you have them, to pay for premium service.

Using Brex to Build Business Credit

While Brex is a fabulous option for managing business finances, it doesn’t really work for business funding when it comes to startups.  Here’s why. The corporate credit card that most startups qualify for only has a limit up to the amount of cash you have in your cash account.

Of course, that’s not a bad thing for managing financing or building business credit. There are no fees, and your positive payment history goes to two of the big three business credit reporting agencies. It’s a win-win.

Check out how our reliable process will help your business get the best business credit cards.

However, you are only able to use funds you already have on hand. Payment is taken from your cash account daily, and you cannot carry a balance. This means that, while this card is a great tool for helping you build business credit and managing funds you already have, it doesn’t actually help you get additional funds for your business.

The corporate charge card isn’t a bad deal and can help with cash flow management and funding. However, it’s more of a starting point if you cannot qualify for a true business credit card. It’s a stepping stone to get another account reporting to business credit, so that you can qualify for more funding in the future.

Brex Online Reputation

The Better Business Bureau has Brex rated at an A+. They have 4 reviews, all which are bad, and 3 complaints over the course of 4 years they have been in business. That isn’t terrible, but it is concerning that all of the bad reviews are pretty recent. One is related to a bonus offer, and the other 3 are customer service related. You should definitely be aware, but this is a very small number of negative issues being reported for the 4 years they have been in business.

TrustPilot has many more reviews and gives them an excellent rating at 4.8 stars. The small percentage of negative reviews on TrustPilot tend to be from those who did not qualify for accounts. Those who have accounts and use the system seem to be happy.

Check out how our reliable process will help your business get the best business credit cards.

Is Brex Right for Your Business?

The answer to this question really depends on what you are looking to accomplish. If you need a system that helps you manage funds in real time, this is a great option.  It’s also an option if you are having trouble getting approval for business credit cards.  It’s worth a shot to see if you qualify for the corporate charge card.

If your sole purpose is to build business credit, Brex can help, but you can’t do it with Brex alone. Your business has to be fundable, which can take time. Also, you need more accounts reporting than just one. Brex can be a part of this, but you need more.

Business credit building is a process. There are a number of steps, starting with how your business is set up and going all the way through applying for the right accounts at the right time.  A system like the Business Credit Builder can walk you through the whole thing, saving you a lot of time and frustration.

The post Hot Topic: Brex for Money Management and Building Business Credit appeared first on Credit Suite.

Speed Your Way to Success: How to Find Business Credit for Your Gig Economy Job

Get Business Credit for the Gig Economy

The gig economy is a booming market. With more and more people working as independent contractors, entrepreneurs, or freelancers, many are looking for ways to streamline the process of securing business credit. In this blog post we’ll discuss how you can use business credit cards to speed up your way to success in the gig economy.

The Gig Economy and Business Credit

Business credit is good for any type of business. You don’t have to be a large company. And even gig economy workers can start businesses.

What is the Gig Economy?

The gig economy means jobs for a short-term engagement, for a specified time, say, 6 weeks.

Temping is nothing new, but now it’s on steroids. In a gig economy, temporary, flexible jobs are commonplace. Companies tend to hire independent contractors and freelancers, versus full-time employees. At times, this can be difficult for workers due to less employment stability. Working conditions aren’t always the best.

Gig Workers Going in a Different Direction

Workers for places like GrubHub, DoorDash, Uber Eats, Relay, GoPuff, and Instacart might not want or be able to unionize or wait for legislation or otherwise try to change their working conditions. What’s the solution? Become your own business!

How Do You Become Your Own Business When You’re Just One Gig Worker?

If a car sharing service doesn’t say you’re an employee, then you can set yourself up as a corporation on an LLC. Yes, even a single person can do either. By delivering as a corporation and not an individual, you can build business credit.

Building Business Credit

Incorporating is the only way to go (chances are, you will want to start an S corporation and not a C corporation). It creates a separate business entity which can help give you a degree of tax and liability protection. But at the very least, it’s highly likely that your insurance company will still ding your personal auto insurance, if you get into an accident while driving.

Why Create an S Corporation?

It will carry lower risks. But owners must report business profits on their personal tax returns. However, you can save on Social Security and Medicare taxes. An S Corporation owner has protection from personal liability for the corporation’s business decisions or actions. Corporate decisions can include whether to take a certain delivery job at all.

You pay taxes only on the money you earn from the business, recorded as personal income. The business itself is not taxed. Since you’re both an owner and an employee, you pay taxes based only on your compensation. Hence you don’t pay Social Security or Medicare twice, like owners of unincorporated businesses must.

Why Create an LLC?

A limited liability corporation carries lower risks. But business profits go on your personal tax returns, which can result in you paying high taxes. You also pay an employment tax on the net income of the business.

An LLC isn’t a separate structure (per the IRS). Yet as an LLC member you have protection from personal liability for the company’s business decisions or actions. If the LLC goes into debt or is sued, your personal assets are usually exempt. LLCs tend to be for groups of professionals, like doctors’ practices and law firms.

Why Not Both?

You can create an LLC and have it become the sole shareholder of an S corporation. Get the benefits of an LLC’s informality, and the tax benefits of an S corporation. It is best practices to talk to a professional before making either move. For business credit building, becoming an S corporation is the way to go. The only question is whether its sole shareholder is you or an LLC.

Fundability for the Gig Worker

Fundability is the ability of your business to get funding. You’ll need (among other things):

  • An EIN from the IRS
  • A D-U-N-S number from Dun & Bradstreet
  • An NAICS code (485310—Taxi Service or 485320—Limousine Service will work)
  • A separate business bank account

Most of the credit providers we’re listing today will require all of these.

Gig Economy Business Credit

A driver’s expenses include:

  • Fuel and maintenance
  • Possibly buying a vehicle (if yours breaks down or you want a separate one just for your gigs)
  • Registration fees and taxes
  • Phone (hardware, purchased apps if necessary, data plan)
  • Computer (to best manage all expense figures, etc.)

Did you know you can buy ALL these things with business credit?

Building Gig Worker Business Credit

Your driving business doesn’t start off with good business credit already built. Orderly, speedy building business credit means getting vendor accounts. Starting with vendor credit accounts is a proven way to start building business credit.

Building Business Credit: The Process

Gig Economy Credit SuiteUse your business credit and pay on time, just like you should with personal credit. These vendors we’ll show you will report to the business credit reporting agencies. And you’ll build a good business credit score. These trade lines are creditors who will give you starter vendor credit when you have none now. And, they’ll report positive payment experiences to the business CRAs. So use the credit, pay back what you used, and the account goes on report to Dun & Bradstreet, Experian, or Equifax.

Once reported, then you have trade lines, an established credit profile, and an established credit score.

You MUST have 3 or more vendor accounts reporting to move onto more credit with higher limits and better terms, more reporting accounts are even better. It will take 30—90 days for those accounts to report, 60 days on average. Do NOT apply for tier 2 credit without having 3 or more accounts first.

Using Business Credit Vendors

Check out three of our favorite starter vendors to help your driving business:

  • 76
  • Wex Fleet
  • Marathon

All three come from Wex.

76

Phillips 66 Company owns 76. This card reports to: D&B and Experian. Before applying for multiple accounts with WEX Fleet cards, make sure to leave enough time in between applying so they don’t red-flag your account for fraud.

To qualify, you need the following:

  • Business must be in good standing with the applicable Secretary of State
  • EIN
  • Company address matching everywhere
  • D-U-N-S number from Dun & Bradstreet
  • Your business license (if applicable)
  • A business bank account
  • Business phone number with a listing on 411

Your SSN is necessary for informational purposes. If concerned they will pull your personal credit talk to their credit department before applying. You can give a $500 deposit instead of a personal guarantee if you’ve been in business under a year. Apply online or over the phone. Terms are Net 15. Use at any P66, 76, or Conoco fueling location.

Wex Fleet

Wex reports to Experian and D&B. They offer universal fleet cards and universally accepted business fleet cards with a rewards program. Before applying for multiple accounts with WEX Fleet cards, leave enough time in between applying, so they don’t red-flag your account for fraud.

Wex Fleet Card

If you’re not approved based on business credit history, or been in business for at least a year, then you must give a $500 deposit or a PG. Apply online or over the phone. Terms: Net 15 (Wex Fleet Card), Net 22, or revolving (Wex FlexCard).

To qualify, you need:

  • Entity in good standing with Secretary of State
  • EIN
  • Business address (matching everywhere)
  • D-U-N-S number
  • Business license (if applicable)
  • A business bank account
  • Business phone number with a listing on 411

Marathon

Marathon Petroleum Company provides transportation fuels and specialty products supporting commercial, industrial, and retail operations. This card reports to Dun & Bradstreet and Experian. Remember: before applying for multiple accounts with WEX Fleet cards, leave enough time in between applying so they don’t red-flag your account for fraud.

To qualify, you need:

  • Entity in good standing with Secretary of State
  • EIN
  • Business address (matching everywhere)
  • D-U-N-S
  • Business license (if applicable)
  • A business bank account
  • Business phone number with a listing on 411

Your SSN is necessary for informational purposes. If concerned they will pull your personal credit talk to their credit department before applying. You can provide a $500 deposit instead of using a PG if you’ve been in business less than a year. Apply online or over the phone. Terms are Net 15. Let’s move onto what’s called fleet credit.

Fleet Credit

Fleet credit comes with and after starter vendors. Use it to:

  • Buy fuel
  • Maintain vehicles of all sorts
  • Repair vehicles

Even if you just have one vehicle, you can still benefit. Fleet credit works for everything from luxury cars to minivans. These are often gas credit cards.

There may be a minimal time in business requirement. If your business can’t meet this requirement, you may be able to, instead:

  • Offer a personal guarantee or
  • Give a deposit to secure the credit

Now that you’ve got cards to support a vehicle, and your business credit is looking good, it’s time to look at vehicle financing to buy a vehicle!

Vehicle Financing

Vehicles financing is a great way to get a vehicle ASAP. With a fleet car, choices are usually buying or leasing. Providers include banks like Bank of America or the financing arm of a manufacturer, like Chrysler Capital.

Using Business Credit for Vehicle Financing

You can even finance a vehicle purchase or lease through our Business Credit Builder. These offers are in Tier 4. So they have certain requirements that business credit beginners just won’t be able to meet. Lenders want to see that you have the income to support the purchase. Consider Ford Commercial Vehicle Financing.

Ford Commercial Vehicle Financing Via Credit Suite

Ford offers several commercial vehicle financing options. These include loans, lines, and leases to actual business entities. This is not for sole proprietorships. Get a loan or a lease.

Ford may ask for a PG if you do not get approval on the merit of your application. Apply at the dealership. Ford reports to D&B, Experian, and Equifax.

To qualify, you need:

  • Entity in good standing with Secretary of State
  • EIN
  • Business address- matching everywhere
  • D-U-N-S
  • Business license (if applicable)
  • A business bank account
  • Strong business credit history

You must have a good Experian business credit score.

Ally Car Financing Via Credit Suite

Ally provides personal financing. But they will also report to business credit bureaus. If your business qualifies for financing without the owner’s guarantee, you can get financing in the business name only. Ally will report to D&B, Experian, and Equifax.

Ally Car Financing: Ally Commercial Line of Credit

To qualify, you need:

  • Entity in good standing with Secretary of State
  • EIN
  • Business address- matching everywhere
  • D-U-N-S
  • Business license (if applicable)
  • A business bank account
  • Bank reference
  • Fleet financing references

If you use a personal guarantee, they will not report to the personal credit bureaus unless the account defaults.

Ally Car Financing: Ally Commercial Vehicle Financing

Get a lease or a loan. To qualify, you need most of the same things as you need for an Ally Commercial Line of Credit, except for

  • A bank reference
  • Fleet financing references

There is no minimum time in business requirement. Apply in person only, dealer will advise if approved or PG is necessary.

One More Thing About Vehicle Financing

With commercial vehicle financing, business owners may have to personally guarantee vehicle loans. If you are a co-borrower, the loan will tend to report to your personal credit report. Starting off by giving a personal guarantee means you can get money and get your vehicle now instead of later.

When you provide a personal guarantee, you are adding your Social Security number to the application. So expect a hard inquiry. You’re also adding the details of your personal income to the application.

No PG (Personal Guarantee) Financing

With no PG financing, you can get higher limits and better terms. Continue to build exceptional business credit and pay your bills on time. In general, the following will eliminate the need to provide a personal guarantee for this type of financing:

  • good business credit
  • a decent amount of time in business or
  • good personal credit

Much like with any other kind of business borrowing, the more assurances you can give the lender, the better. And with well-built business credit, you’ve got a hugely positive assurance to provide.

Takeaways

Gig economy workers can build business credit to stabilize their employment situation and plan for the future. Use business credit to finance your delivery job in the gig economy and make it easier and more affordable to work as a flexible gig worker.

The post Speed Your Way to Success: How to Find Business Credit for Your Gig Economy Job appeared first on Credit Suite.

How to Spot the Best Business Rewards Credit Card Out There

What is the Best Business Rewards Credit Card Out There?

Are you looking for business credit card rewards? Did you know there are a ton of different kinds? Get points, travel rewards, a low APR, and more! The best business rewards credit card for you is out there.

Rewards Business Credit Cards

Business credit cards may offer rewards in the form of rebates or statement credits or other perks. Some perks may include waiving a first late payment fee or a free cell phone protection plan. You may also get bonus points by spending a certain amount within an amount of time. This period tends to be right after you first get such a credit card.

Travel Rewards Business Credit Cards

Travel rewards are usually calculated in miles rather than points. Rewards may tie to a particular airline or hotel chain. Travel rewards may also come in the form of discounts on car rentals or hotel stays. They can even come in the form of added miles for filling up using certain gasoline brands. Some cards offer a reward in the form of free TSA PreCheck®, which currently costs $85.

Caveats When it Comes to the Best Business Rewards Credit Card

Rewards can seem tempting and easy to get. But always look at annual fees (if any) and APR. Also, make sure you know exactly what you can redeem for points or miles. Learn how many points or miles you need, and how much you have to spend to get them. And read the fine print to find out if your rewards ever expire. A generous program with points that expire fast that you can only trade in for stuff you don’t want or need is no bargain.

Get a Low APR

Can you get business credit card rewards and still enjoy a low annual percentage rate? Sure you can.

Alpine Bank Visa Platinum Rewards

Check out the Alpine Bank Visa Platinum Rewards card. Pay no annual fee. Get one point per dollar spent. Bonus points: 5,000 for first $3,000 spent in first four billing cycles. The APR for purchases is Prime + 8.74—14.74%. This is a good card for APR, and the amount you need to spend for a bonus is somewhat low.

Frost Bank Business Rewards Credit Card

Take a look at the Frost Bank Business Rewards Credit Card. Pay no annual fee. Get a revolving balance option for credit lines of $50,000 and under. Pay an APR of 9.9% + prime.  The monthly credit limit cap is $25,000 if you apply online, for current Frost customers only. But it’s $100,000 if you apply by mail.

The revolving balance option is attractive, and the APR is excellent and doesn’t expire. The monthly credit limit cap is lower for applying online. Making a distinction between online and mail applications seems backwards.

PNC Travel Rewards Visa Business Credit Card

Take a look at the PNC Travel Rewards Visa Business Credit Card. Get one mile per dollar in eligible net purchases. Earn double miles on the first $2,500 in eligible net purchases. You can book your own travel and then redeem miles for a statement credit. There are no foreign transaction fees on purchases outside US. Pay no annual fee. There’s a variable APR, currently 10.99—19.99%, per creditworthiness.

The APR is good if your credit makes you eligible for the lower end of the spectrum. A statement credit for acting as your own travel agent is good, if you have the time to book your own travel. Double miles are welcome but it’s easy for a business owner to exceed the cap.

Rewards Business Credit Cards with Low Minimum Spend to Get a Bonus

What if you want business credit card rewards where you don’t have to spend a lot to get a bonus?

Bremer Bank Visa Smart Business Rewards

Check out the Bremer Bank Visa Smart Business Rewards card. There’s a $0 annual fee for the first twelve months. Then pay $95 every year after. Pay $95 for Account Owners, and $0 for Authorized Employees. Get double points per dollar spent in your top two spend categories each month. And get one point monthly per dollar spent on other eligible purchases. Earn 20,000 bonus reward points after spending $500 in the first 90 days. Pay a 15.99—20.99% APR per creditworthiness.

The bonus reward points offer is generous, and the spend should be a snap for most businesses to meet. The annual fee for account owners is somewhat high. But no annual fee for authorized employees means you can use this card with a large number of employees.

Mechanics Bank Smart Business Rewards Visa

Take a look at the Mechanics Bank Smart Business Rewards Visa. Pay a $0 introductory annual fee for the first twelve months. Then pay $95 every year after. Pay $95 for Account Owners, and $0 for Authorized Employees.

Get double points per dollar spent in top two spend categories per month. Earn 20,000 bonus rewards points if you spend $500 in the first 90 days. The APR for purchases and balance transfers is 15.99—20.99%, per creditworthiness. This is a very generous bonus for such a low spend!

Bank of Hope Business Rewards Visa® Credit Card

Get a good look at the Bank of Hope Business Rewards Visa® Credit Card. You pay no annual fee. Earn 5,000 bonus points after spending $1,000 in the first three months. Earn triple points on gas. Get double points on travel and dining. And earn one point per dollar on all other purchases. Pay a 0% introductory APR for nine months. Then pay a variable APR 12.49%, 16.49% or 20.49% per creditworthiness after the introductory period ends.

It should be easy for most entrepreneurs to meet the spend required for the points bonus. Triple points on gas are particularly helpful if yours is a business requiring a lot of time on the road. Say, trucking. If your credit is good enough to get the lowest APR after the introductory period ends, this could be a great card.

Mechanics Bank Visa Business Real Rewards

Check out the Mechanics Bank Visa Business Real Rewards card. You pay no annual fee. Get 1.5 points per month per dollar. You can get a 2,500 bonus rewards points after first purchase. Pay a 0% introductory APR for purchases and balance transfers for the first six billing cycles. Then pay 13.99—22.99% per creditworthiness. The bonus is decent, and there’s no minimum spend.

Get a Generous Bonus After Minimum Spend

How about generous bonuses for your business credit card rewards?

Union Bank Business Preferred Rewards Visa Credit Card

Get a look at the Union Bank Business Preferred Rewards Visa Credit Card. Earn a 50,000 introductory reward points bonus when you spend $5,000 in the first three months. Get quintuple points per dollar spent to $25,000 annually on select business expenses. These are office supplies, utility bills, telecom services. And get one point per dollar spent above that. Earn double points for each dollar spent up to $25,000 annually on gas stations and restaurants. And get one point per dollar spent above that. Plus, get one point per dollar spent on everything else.

Pay a 0% introductory APR for the first six months. Then pay an 11.99—20.99% variable APR. Pay no annual fee. This card has a great introductory points offer and the amount you have to spend to get it isn’t bad.

Business Credit Card Rewards with Generous Point Multipliers

Want some serious point multipliers? Then look no further.

Synovus Business Travel Rewards Visa Credit Card

Take a look at what the Synovus Business Travel Rewards Visa Credit Card is all about. Enjoy a 0% APR for the first six months, for purchases, balance transfers, and overdraft protection. Pay a $0 membership fee for the first year; then pay $50 per year.

Get quintuple points on up to $5,000 per year spent on travel purchases. This includes hotel, airlines, car rental, vacation packages, and more. Earn triple points on up to $3,000 spent quarterly for purchases in category of choice. And get one point per dollar on all eligible purchases, with no limit on points.

You can pay for purchases with points (there are some restrictions).Points are worth 20% more for travel redemption. Pay no foreign transaction fee. If you travel a lot, this card’s perks make it worthwhile.

Get the Best Business Rewards Credit Card with No Cap on Cash Back Earned

If you spend a lot, you might want a card where there’s no cap on the cash back you can earn.

Mastercard Business Cash Rewards Credit Card from Republic Bank

With the Mastercard Business Cash Rewards Credit Card, earn 1.25% cash back on all purchases. Get automatic rebates on eligible purchases with Mastercard Easy Savings. Pay a $35 annual fee per card. Pay a 0% introductory APR for nine months; then pay 17.45%.

Rebates via Mastercard Easy Savings are not too generous. For example, 4% off Budget Rent a Car doesn’t amount to much when an economy car can cost over $100 per day. The annual fee is also somewhat concerning. Hence this is not a good card for a large number of employees.

Get Varied Travel Benefits

Need travel benefits? If your business travel is local, this is great card.

First Hawaiian Bank MasterCard Cash Rewards Business Credit Card

With the First Hawaiian Bank MasterCard Cash Rewards Business Credit Card, get 3% unlimited cash back on gas and dining. And get 2% unlimited cash back on utilities. Earn 1% unlimited cash back on everything else. There’s no annual fee.

Pay a 15.49% APR. Earn a $200 credit with a $2,000 spend in the first 3 months from account opening. With its somewhat low spend, no annual fee, and decent (but not exceptional) APR, this can be a good card. If your business requires you to travel by car and entertain clients on the road, it’s a great card.

Get the Best Business Rewards Credit Card For Startups

Yes, startups can get in on the business credit card rewards action!

Mercury Bank MasterCard (personal)

Mercury is an angel-funded bank serving startups. Pay a $0 or $79 annual fee for a Mercury Bank MasterCard. There are cashback rewards but they are not specified on the bank’s website. The transfer APR is $5 or 4% of amount of each transfer, whichever is more. Pay 26.99—29.99% APR.

This could turn out to be a good card for startups. But interest rates are high, so be sure you can pay on time before charging. It also seems to be a personal card. Improving personal credit will help raise your Experian business credit scores. So a good payment history with this one could be worth your time.

Get Merchant Rebates

You can even get merchant rebates if you prefer.

Banner Bank Commercial Rewards Mastercard

For merchant rebates, consider the Banner Bank Commercial Rewards Mastercard. Pay a $19/card annual fee. There is a 11.99% APR for purchases. Get 1% cash back.

Get three TruRewards points per dollar of net retail, internet, phone, or mail order purchases. Redeem TruRewards points for cash back, travel, gift cards or merchandise. Use TruRewards with merchants like Starbucks, the Fairmont Hotel, and Cuisinart.

TruRewards offers (for example) a $100 travel voucher with Budget Rent a Car if you redeem 43,300 points. Even with three points per dollar, that still comes to spending over $14,000 to get $100 off! And it can cost over $100 per day to rent a compact car from Budget. The APR is decent although the annual fee is concerning—particularly as there is no introductory waiving of the annual fee.

Takeaways for the Best Business Rewards Credit Card

Rewards business credit cards have varying pros and cons. Your best choice will depend upon factors such as if you’re likely to keep up with payments. Also, how much (and how fast) you can spend to meet a minimum, the APR, annual fees, and if the rewards are useful to you.

The post How to Spot the Best Business Rewards Credit Card Out There appeared first on Credit Suite.

How to Build an All Star Team of Tier 1 Business Credit Vendors to Kick Off Business Credit

Do you ever feel like trying to get credit for your business is like playing a game, but you don’t know the rules?  Imagine trying to play football but having no clue how the game works. From kick off, you would be doomed to lose. The same is true with business credit. If you don’t know what rules credit providers are playing by, you may feel like it’s a losing game from the beginning.  The best way to kick off business credit is with Tier 1 business credit vendors.

Put Together a Winning Team with Tier 1 Business Credit Vendors

As with any great football program, you need great players and a great coach if you are going to win.  Credit Suite offers great coaching through the7 steps in the Business Credit Builder.  Then, once you work your way through the first couple of steps, you will have no problem recruiting a winning team of Tier 1 business credit vendors in step 3.

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

What Are the First Steps?

Of course, It does you no good to have a team if you don’t have a score board or even a field to play on. So, you have to complete the first two steps to start. Step 1 is to build a fundable foundation. This is how credit providers will see that your business is legitimate and separate from you as the owner.

Here is a quick summary some of the things included in a fundable foundation:

  • Physical address where you can receive mail
  • Toll free phone number listed in the 411 directories
  • EIN
  • Incorporating as an S-corp, LLC, or corporation
  • Dedicated business bank account
  • Proper licensing
  • Business website

After that, you have to establish your business credit reports, which includes getting a D-U-N-S number from Dun & Bradstreet and making sure you are listed with the other business credit reporting agencies. Obviously, you cannot have a business credit score without a business credit report for vendors to report payments to. Establishing this “scoreboard”  is Step 2.

Step 3: Tier 1 Business Credit Vendors

This is the step where you actually start building your business credit. To win the game, you have to choose the right vendors for your team. Without established business credit, it is going to be hard to recruit. You have to go after the right ones for this stage. These are vendors in tier 1, also known as starter vendors.

These vendors lay the groundwork for building a business credit score. They can provide initial accounts that report so that you can get a  business credit score on the board. Just like a winning team is a powerful recruiting tool in football, an initial business credit score opens the possibility of approval for advanced vendor credit accounts.

What Makes a Vendor a Tier 1 Business Credit Vendor

These are usually companies that do not specialize in extending credit. Rather, they are retail businesses that may extend net terms on invoices to their customers as a courtesy. Usually they offer either 30, 60, 90 days or however many days the net terms state, to pay in full.

It’s different from a credit card because it is not revolving credit, and there is no card. They extend this type of credit to customers without depending as heavily on creditworthiness as other vendors do. That’s not to say they just give net terms to anyone. They will just take factors other than business credit into account when determining creditworthiness.

With many of them, if you complete step one and build a strong fundable foundation, you are likely to get approval.

Other Factors to Determine Creditworthiness

These vary from vendor to vendor, but some examples include:

  • Previous or current relationship with the customer
  • Time in business
  • Average balance in business bank account
  • And more

The Importance of Reporting

Vendors that extend net terms without relying solely on business credit reports are hard enough to find. However, to be a true tier 1 business credit vendor, they also have to report positive payment history to the business credit reporting agencies.

Many vendors will report negative payment experiences, but they will not report on-time payments. Unfortunately, this is the case with more than nine out of every ten vendors. As you can imagine, this is a huge problem when it comes to building business credit. You need credit to get credit, and starter vendors that report are the only way to break the cycle.  Yet, they are almost impossible to find on your own.

Why Can’t I Find Tier 1 Business Credit Vendors On My Own?

It’s not totally impossible. But, vendors do not make it easy to figure out how heavily they rely on business credit reports or whether they report payments. That only leaves you with a couple of options if you want to do it on your own.

You can apply for accounts with the vendors you already use. Since they already work with you, they may be willing to offer credit based on your relationship rather than credit history. You can also just apply for vendor accounts and hope for the best. If you monitor your business credit reports, you will be able to see if they are reporting.

Obviously this trial-and-error method has some glaring holes in it. First, there is no telling how long it will take to get approval for just one account. Then, you will not know if they are reporting until you see or don’t see it on your business credit report. You need at least 3 accounts reporting to establish a business credit score. This method takes a lot of time and causes a lot of frustration.  Not only that, you may never get where you need to be before the lack of ability to get funding shuts you down for good.

How to Find Tier 1 Business Credit Vendors

Working with someone who has an inside track on which creditors will extend net credit without a credit check, and report on-time payments, saves time and frustration. You can know you are eligible for approval before you apply. Then, as you get approval and start using the credit, you will know your business credit score is growing because you know the vendor reports.

Many times a business credit specialist can help you find less costly ways to monitor your business credit reports as well.

Examples of Tier 1 Business Credit Vendors

While there are several such vendors in Tier 1 of the Business Credit Builder, seeing examples can help you get an idea of what’s available. Here are a few to get you started, but remember it takes more than one account reporting to move on to tier 2 vendors.

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

Grainger Industrial Supply

This vendor sells hardware, power tools, pumps and more. They report to Dun and Bradstreet, and if a business doesn’t have established credit they will want to see other information like accounts payable, income statement, balance sheets, etc.

They offer net 30, 45, 60, or 90 terms, and qualification requirements include:

  • Being an entity in good standing with the applicable Secretary of State
  • Being registered with the Secretary of State (SOS) for at least 60 days
  • An EIN
  • A business address that is consistent everywhere it is listed
  • A D-U-N-S number
  • All business licenses (if applicable)
  • A business bank account

Uline

Uline sells shipping, packing and industrial supplies. They report to both Dun & Bradstreet and Experian. Before you can get approval for net terms, you MUST create an account with them. They offer net 30 terms.

Qualification requirements include:

  • Being an entity in good standing with Secretary of State
  • An EIN
  • A business address (matching everywhere)
  • D-U-N-S number
  • Business bank account
  • Business phone number listed in 411
  • A D&B PAYDEX score of 80 or better (although if you meet the other requirements you may get approval anyway)

The credit department may require a few prepaid orders before extending net terms.

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

Home Depot Pro

As part of the Home Depot family, they offer facility maintenance supplies. This vendor will not accept virtual addresses. They report to Experian, and offer net 20 terms.

Qualification requirements include:

  • Being an entity in good standing with Secretary of State
  • An EIN
  • Business address (matching everywhere)
  • D-U-N-S number
  • Business license (if applicable)
  • Business bank account
  • Trade/bank references
  • There is no minimum time in business requirement

Using Tier 1 Business Credit to Prepare for the Future

Consider the following example:

A business ships items to customers on a daily basis. In fact, shipping expenses make up a significant portion of business costs. A vendor account with Uline can allow you to stock up on shipping and packing supplies now, before prices get any higher due to continuing inflation. Then, you will be able to avoid raising shipping costs for your customers for a longer period of time.

In addition, it’s no secret that supply chain problems are plaguing most everyone right now. It’s going to get worse before it gets better. Vendor credit will allow you to place orders for things now, in anticipation of the fact that it may take a bit for them to come in.

The Quickest Way to a Touchdown

Once you have a number of tier 1 business credit vendors reporting, you will be able to move on to more advanced vendors. This will allow your business to always have access to the funds it needs to grow. That’s definitely worthy of major points.

The post How to Build an All Star Team of Tier 1 Business Credit Vendors to Kick Off Business Credit appeared first on Credit Suite.

Discover 6 of The Best Business Credit Cards for Travel Points and A Little-Known Strategy to Improve Your Chance of Approval

Credit card rewards can be a great financing tool.  Rewards points can reduce major expenses when you redeem them for cash back, statement credit, and more.  If your business involves a lot of travel, travel points can be a huge budget saver. Strong business credit can help increase your chances of approval when it comes to business credit cards for travel points.

Increase Your Approval Chances When it Comes to Business Credit Cards for Travel Points, and Get our Top Picks for the Best Options

Of course, you will also need to do some research to determine which credit cards for travel points will work best for your business. Never fear, because we put together a list of some of the best business credit cards for travel to give you a head start.

Our Favorite Business Credit Cards for Travel Points

These are some of our top picks for credit cards that offer travel points, but remember, details can change often and without warning. Please check with the card provider directly to ensure you have the most current information.

Bank of Hope Credit Card

The Bank of Hope credit card offers many benefits.  There is no annual fee, and you earn 5,000 bonus points after spending $1,000  in the first 3 months. Not only that, but you also earn 3x points on gas, 2x points on travel and dining, and 1 point per dollar on all other purchases.  There is also a 0% introductory APR for 9 months.  After that, there is a variable APR of 12.49%, 16.49% or 20.49% based on creditworthiness.

Banner Bank Credit Card

Another good option is the Banner Bank Credit Card. There is a $19 per card annual fee, and you earn 3 TruRewards points per net dollar on retail, internet, phone or mail order purchases. You can redeem points for cash back, travel, gift cards or merchandise.  The best part, however, is the fixed 11.99% APR.

Business Advantage Travel Rewards Credit Card

The Bank of America Business Advantage Travel Rewards credit card is made for small businesses. It boasts a $0 annual fee. There is also a bonus of 30,000 bonus points.  Regular rewards include 1 point per dollar on all purchases, except for 3 points per dollar on travel purchases booked through the Bank of America Travel Center.  There is a 0% introductory APR for the first 9 billing cycles.  After that the APR is 12.24-22.24%.

PNC Travel Rewards Visa Business Credit Card

The PNC Travel Rewards Visa business credit card allows holders to earn 1 mile per $1 in eligible net purchases and double miles on the first $2,500 in eligible net purchases.  There is a variable APR of 10.99-19.99% and no annual fee.

Mastercard Money Manager Business Credit Card

With the Money Manager Business Credit Card from Mastercard, you can earn travel benefits or merchandise via Republic Bank’s ScoreCard rewards. There is no annual fee the first year, and a $95 annual fee thereafter.  You can also get automatic fuel discounts and 0% intro APR for 9 months. After the introductory period, the interest rate is 17.45%.

Synovus Business Travel Rewards Visa Credit Card

This Synovus Business Travel Rewards Visa Credit Card offers 0% APR for the first 6 months on purchases.  There is no membership fee the first year, and then $50 per year thereafter. You earn 5x points on up to $5,000 per year spent on travel purchases.  This includes hotel, airlines, car rental, and vacation packages.  You also earn 3x points on up to $3,000 spent quarterly for purchases in the category of your choice, and 1x points on all eligible purchases. There is no limit on points, and you can pay for purchases with points, subject to some restrictions.  Points are worth 20% more when redeemed for travel.

Tip: Strong Business Credit Can Help You Get Business Credit Cards for Travel Points

Despite the fact that most credit cards will pull your consumer credit report, business credit can still play a role in the approval process. If your personal score is not right where it needs to be, but your business credit score is strong, you are more likely to be approved. Not only that, but you will have a better chance at getting the best rates and terms available.

This is why it is important to ensure your business credit is where it needs to be. A business credit expert can help. Get a free business credit consultation now.

The post Discover 6 of The Best Business Credit Cards for Travel Points and A Little-Known Strategy to Improve Your Chance of Approval appeared first on Credit Suite.

The Great Resignation, Business Credit and Financing, and You

The Great Resignation: a Definition and an Explanation

Everywhere you look in the news, it seems to be there. It’s on TV and social media, and your friends may be talking about it. It’s the Great Resignation. It has caused people to start businesses and has disrupted our economy.

But…what is it?

The Great Resignation is the confluence of several different events, all happening at the same time. People are leaving their jobs in droves. As in, 20 million US workers between April and August of 2021.

Causes of the Great Resignation

The Pandemic

First is of course the pandemic. The sudden removal of over 700,000 Americans from our society was bound to create problems. A little under 190,000 of these deaths were among people aged 18 – 65. Even if not everyone could work, that leaves at least 150,000 people out of the workforce, due to dying from Covid-19.

This doesn’t account for those with ‘long Covid’. In the UK (US percentages should be similar), the percentage of people of working age to get long Covid runs about 1 – 2%. Over 48.5 million cases in the US translates to about half a million people of working age with long Covid in the US. Some of them may be considered disabled or have taken early retirement.

As a result, there are job openings.

But what about everyone and everything else pertaining to the Great Resignation?

Depressed Wages

Since the 1970s, wages have been depressed in the US, often not keeping up with inflation. This is particularly true in the service industry. 

In contrast, during the worst of the lockdowns, the only employees who could not work from home were in the service industry. 

There are some employers who have realized they can’t hire enough people back until they raise wages and improve perks (which is likely to be fueling inflation). Others don’t seem to have gotten the memo yet. Hence there are workers who would have taken those jobs not two years ago. But now? With an ever-present concern about Covid-19 and perhaps a feeling that wage hikes are only temporary, those jobs are going unfilled.

Politics, Ill Treatment, and Being Fed Up

As the disease, vaccines, and mask wearing all became more politicized, businesses were forced to police mask usage in their stores. This policing often fell to the lowest paid workers, in jobs like cashiers. With irate, sometimes violent customers, many workers felt they were being asked to put their own personal safety on the line. But with no added compensation.

In the medical field, there has been a nursing shortage for years, and it is projected to continue into 2030. With hospitals overloaded with Covid patients, anti-vax patients denying their symptoms, and again the threat of violence, many nurses have decided to throw in the towel. This has made the nursing shortage worse, and it has also affected Covid care.

Trillions of Dollars in Aid Programs

The prior and current presidents introduced programs like stimulus checks. This was with the best of intentions. They have led to many in the middle class beefing up their savings. Another big use for these checks has been paying down personal debt. This is from credit cards, car loans, and/or mortgages.

People with some discretionary money may end up being more choosy about employment. Not being desperate provides an opportunity to strive for longer term goals and more money.

Gen X and Younger Boomers Lead the Way in the Great Resignation

Surprised? It seems like quitting your job is a very millennial thing to do. Yet the Harvard Business Review said, “Employees between 30 and 45 years old have had the greatest increase in resignation rates, with an average increase of more than 20% between 2020 and 2021.” Employees with some work experience under their belts are more likely to be part of the Great Resignation.

But What Does The Great Resignation Have to do With Business Financing and Business Credit?

Quitting your job or being laid off can sustain you for just so long. For many Americans, time off and the ready availability of accessible technology led them to start a new business. A good 4.4 million new businesses were started in 2020, and half a million new businesses in January 2021 alone.

As these new businesses have aged, stimulus money has dried up, and the boost in savings is gone for their owners. These business owners—and you may be among them—have been looking for new ways to get money.

And if they (or you) have turned to banks, then there’s a good chance that they’ve gotten a denial. 

New business owners are less likely to know about business credit, and how it can get them funding. And they may not be aware of the many alternatives to traditional lending that are out there. Because banks aren’t the only places to get business money.

Business Credit and the Great Resignation

Business credit is credit in the name of a business. It attaches to the business’s EIN (Employer Identification Number), not the owner’s Social Security Number. As a result, business credit relies on the ability of the business to pay its bills—period. A business owner can have poor personal credit yet have excellent business credit. 

Building business credit is a great way to transition from bootstrapping to getting a company to fund itself.

Fundability

Fundability is the ability of a business to get funding. Building business credit starts with building what’s called a fundable foundation. Your business can look legit to credit providers and lenders—or not so legitimate. There are proactive steps you can take to improve fundability, even if you haven’t done these before.

Start to Build a Fundable Foundation (Your Business Name, NAICS and SIC Codes, and Your Business Entity)

Fundability starts with your business name. If your business name includes the name of a high-risk industry, this could tank any funding application from the start.  Frank’s Gas Station can instead be called Frank’s. 

NAICS and SIC codes exist to show lenders, credit providers, and the IRS how risky your business is. If your business can fit under more than one NAICS code, then pick the one which is less risky. There’s nothing unusual or underhanded about this.

Your business entity is sole proprietorship, partnership, corporation, and the like. To build business credit right, incorporate your business. This is because incorporating creates an entity separate from you, the owner. It adds a layer of protection over your personal assets when it comes to corporate debts and corporate wrongdoing. Plus, to build credit in the name of your business, it won’t separate from your own credit history if you and your business are still joined at the hip.

Enhance Fundability With an Excellent Online Presence (Your Website and Email Address)

Lenders and credit providers will look for information on your business online. With your own website, you can control a lot of the narrative. Without one, you’re at the mercy of whatever they can Google—which may not be too flattering. 

Putting some of your earlier profits into a website is a smart business decision. It does more than improve fundability. It also makes your business more attractive to customers and prospects. 

Purchasing your own domain name is the highest standard for fundability. Very often hosting providers will kick in a free email address on the same domain. Keep it professional with a name like info@yourbusinessname.com. 

Grow Fundability With a Professional Offline Presence (Your Business Address and Phone Number)

Business lenders and credit providers also pay attention to your offline presence. Your business address needs to be a brick and mortar building where mail can be delivered—so a PO box or a UPS box is out. Technically, it can still be your home. But you may want to get a virtual address for job interviews or meetings. And if you are a retail business, you are going to need a separate address.

Your business phone number needs to be different from your personal phone number. This is because the listing for your personal phone number is you or your family. A separate, dedicated phone number is far more fundable. And it prevents your family from accidentally picking up on sales calls.

Protect Fundability By Following the Rules (Your Business Licenses and Getting a D-U-N-S Number)

The Great Resignation Credit SuiteMany industries require some form of licensing. Make sure you have all the licenses your business needs by checking with your Secretary of State. Being fully licensed can also be a way to assure customers and prospects. 

D-U-N-S numbers are the way your business is identified in the system of the world’s largest business credit bureau, Dun & Bradstreet. D&B will give you a D-U-N-S number for free once you sign up for one on their website. You need a D-U-N-S to start to build business credit.

Go to the Next Level of Fundability (Get a Separate Business Bank Account and Get Set Up With the Business Credit Reporting Agencies)

A separate business bank account helps keep you from commingling funds. This increases the chances that your business is in compliance with all IRS requirements.  You also need a separate business bank account to open a merchant account. A merchant account allows your business to take credit cards. Study upon study has shown that people spend more if they can pay by credit card.

You also need to get set up with the business credit reporting agencies. If you have your D-U-N-S already, then you’re set up with Dun & Bradstreet. Check the Experian and Equifax websites for a listing for your business. 

Building Business Credit

Business credit building means buying on credit from vendors. Pay your bills on time and have the payments report to the business credit bureaus. Almost no vendors report positive payment experiences. So, it pays to work with a business credit specialist like Credit Suite.

If you are part of the Great Resignation and have a new business, business credit makes your business more attractive to funding sources.

Business Financing and the Great Resignation

Banks are not the only place to get business financing. When you are getting money for your business, you must leverage one or more of the following:

  • Personal credit
  • Collateral
  • Cash flow
  • Your time and attention
  • Equity in your business
  • Or business credit

Personal Credit

Your personal credit scores are dependent upon a few factors. One is credit utilization, which is the amount of credit in use divided by total available credit. Once this percentage gets high (above 30%), it starts to harm your personal credit score.

Business needs tend to be more expensive than personal needs. Business credit limits reflect that. Hence you can exceed that 30% fast by financing your business with personal credit. You might even max out your personal credit cards.

Collateral

Another way to get business financing is by leveraging collateral. For real estate transactions, that can be land. For equipment financing, it can be the equipment. And for other types of lending, it can even be your retirement funds. 

Cash Flow

New businesses tend to have erratic cash flow, and so they aren’t likely to be able to leverage theirs. But once your cash flow becomes more predictable, you can use it as a way to get business money.

Your Time and Attention

With crowdfunding and grant proposals, you don’t have to give the money back. But you do have to spend time trying to get it—often with a low success rate. 

Equity in Your Business

Business equity is a share in your business. You can sell yours to venture capitalists (if they’re interested), or to angel investors. This gets you business money in the short run. But in the long run, you’ll be sharing decisions and profits with anyone who owns equity. 

Business Credit

Only business credit lets you keep all your equity. You don’t have to spend so much of your valuable time. And your cash flow doesn’t have to be stable yet. Plus, you won’t max out your personal credit cards and tank your utilization rate. And finally, it can help you avoid putting collateral on the line, or even enhance what you can get with the collateral you have.

The Great Resignation, Business Credit, and You: Takeaways

If yours is one of the over four million new small businesses that arose during the pandemic, you have options for business financing. Building business credit can help you succeed, and turn your part of the Great Resignation into a great new direction in life.

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