Tag: credit

All You Need to Know About The 3 Credit Bureaus

What are the 3 Credit Bureaus for Business All About?

Are they really different? The 3 credit bureaus all have reports – are any of them more valuable than the others?

The 3 Credit Bureaus for Business

There are three credit reporting agencies for business in the US:

  • Dun & Bradstreet
  • Experian
  • Equifax Commercial

These are the biggest and best-known bureaus reporting on your EIN credit. But they are not the only business credit bureaus.

The 3 Credit Bureaus and Their Data

The major credit bureaus get data from many different places. These may include:

  • Utility companies
  • Landlords
  • Companies that help set up new businesses
  • Insurance and benefit providers,
  • The internet, etc.

Dun & Bradstreet

They are the oldest and largest of the 3 credit bureaus. You need a D-U-N-S number to start building business credit. No D-U-N-S number? Then get one; they’re free. This number gets a business into their system. Check with D&B to see if they have a record set up for you now.

Get Set Up with D&B

If your search with D&B doesn’t show you have a D-U-N-S number, you’ll need one. This is a nine-digit number issued by Dun & Bradstreet. It’s assigned to each business location in the D&B database. Each business has a unique, separate, and distinct operation for the purpose. Every business must first have a D-U-N-S number before D&B will assign a PAYDEX business credit score.

Get a D-U-N-S number on the D&B site. During the D-U-N-S set up process you’ll be asked for a lot of information. If you select that you’re a government contractor, you’ll get a D-U-N-S in about 1-2 weeks. But if you don’t pay D&B anything and aren’t a contractor, it can take up to 30 days to get a D-U-N-S.

Your Initial D&B Record

But what if you find a record? If you pull up a record for your business with D&B, then consider pulling your actual business credit report. To do so, you’ll need to enroll for credit monitoring. In doing so, you’ll see if you have any credit reporting. You’ll also see if you have scores. If you have negative items on your report, then dispute those through Duns Manager.

Build Business Credit with D&B

One way to start building your business credit is by using D&B’s Credit Builder program. With this option, you are only setting up credit with D&B, and not Experian and Equifax. This runs $149 monthly (as of July 2021).

Dun & Bradstreet Scores

The main score is PAYDEX. But a business will not get a PAYDEX score, unless it has at least 3 trade lines reporting, and a D-U-N-S number. A business must have BOTH to get a D&B score or report.

Get our business credit building checklist and build business credit the fast and easy way.

D&B Reports

In general when D&B does not have all the information that they need, they will say so in their reports. But missing information does not necessarily mean a company is a poor credit risk. Instead, the risk is unknown. They favor objective and statistically derived data, rather than subjective and intuitive judgments. D&B’s database contains millions of companies around the world.

PAYDEX Score

This is Dun & Bradstreet’s dollar-weighted numerical rating of how a company has paid the bills over the past year. D&B bases this score on trade experiences reported by various vendors. The Score ranges from 1 to 100; higher scores mean a better payment performance. PAYDEX scores reflect how well a company pays its bills.

PAYDEX Yearly Trend

Reports also contain a PAYDEX Yearly Trend graph. It includes detailed payment history.  with payment habits and a payment summary. This helps show whether a business pays its bigger bills first or last.

D&B Rating

This rating helps companies quickly assess a business’s size and composite credit appraisal. D&B bases this rating on information in a company’s interim or fiscal balance sheet plus an overall evaluation of the firm’s creditworthiness.

The scale goes from 5A to HH. Rating Classifications show company size based on worth or equity. D&B assigns such a rating only if a 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 a company. Preference is to use Net Worth. D&B will show if a business is new or if they never got this information.

This section also adds a Composition Credit Appraisal. This number runs 1 through 4, and it reflects D&B’s overall rating of a business’s creditworthiness. Lower numbers are better. A D&B rating might look like 3A4.

Financial Stress Class

Numbers range from 1 to 5. 1 is businesses least likely to fail. 5 is firms most likely to fail. The Financial Stress Class measures likelihood of failure.

Credit Score Class

The Credit Score Class measures how often a company is delinquent in paying its bills. Numbers range from 1 to 5. 1 is businesses least likely to be late. 5 is firms most likely to be late making payments. More granular scores run from 101 to 670. 670 is the highest risk.

Monitoring Your Business Credit with Dun & Bradstreet

D&B offers Credit Evaluator Plus™. According to them, it’s “A credit report for simple credit decisions.” It can help you quickly determine a company’s risk of late payment. And it can help you identify how much credit to extend based on a company’s D&B PAYDEX® Score, D&B Maximum Credit Recommendation, and past payment behavior. As of the third quarter of 2021, it costs $61.99 to get a report for one company.

D&B also offers:

  • Business Information Report™ Snapshot ($139.99 per report)
  • Business Information Report™ On Demand ($189.99 per report)
  • Credit Reporter ($799 for 5 reports)

All three offer what Credit Evaluator Plus™ does, with some extras. All prices are current as of the third quarter of 2021.

Monitoring Your Own Business at Dun & Bradstreet

Dun & Bradstreet also sells CreditSignal®. You can view four Dun & Bradstreet business credit scores and ratings for 14 days. Get unlimited access to inquiry, legal event, and trade payment summary data.

Receive email notifications when a change occurs in your business credit report. Free alerts to changes to these D&B® scores and ratings, including your D&B PAYDEX score. CreditSignal is free.

Experian

Experian focuses on providing data and analytics to help businesses better assess risk. They use both consumer and business credit information to gauge 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.

Per Experian: “By combining personal and commercial credit information in one report, Experian provides a complete picture of the creditworthiness of small businesses.”

Get Set Up with Experian

Many credit issuers use Experian to see if you should get approval for a credit card, and how much you should get. Get started with Experian by using their BizVerify system. See if Experian has information about your company already. Verify the information they have.

If your initial search shows your business information, pull your Experian credit report. Do so even if you have no trade lines. This is because Experian will give you a low, failing credit score. And this is if they have even basic information about your business.

Experian says:

  • “Experian® requires minimum information to generate a score. If a business doesn’t meet these requirements, a score is not generated. Minimum information is at least one tradeline and/or one demographic element.
  • [these are] Demographics such as years on file, Standard Industrial Classification codes and business size.”

Working with Experian

It only takes one account reporting to change credit status from high risk to low risk. Even one reported trade line can change a score from 27-29 to 85-100. That is, once that account is on an Experian report. Get approval for an account from a vendor which reports. Buy something and pay the bill. It takes about 30-90 days after that for that account to report.

Per Experian, each business credit score report includes:

  • Business credit scores and credit summary
  • Summaries of collections and payments
  • Uniform Commercial Code filing information
  • Bankruptcy filings
  • Judgment filings
  • Tax lien filings

Experian Business Credit Score

Business Credit Scores range from 1 to 100. Higher scores show lower risk. This score predicts the likelihood of serious credit delinquencies in the next 12 months. It uses tradeline and collections information, public filings as well as other variables to predict future risk.

Experian Financial Stability Risk Rating

Scores range from 1 to 5. Lower ratings show lower risk. A Financial Stability Risk Rating of 1 shows 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 likelihood of payment default and/or bankruptcy within the next 12 months. It uses tradeline and collections data, public filings, and other variables to predict future risk.

Credit Summary

This section contains several counts of various data points

  • Current Days Beyond Terms (DBT)
  • Current total account balance
  • Highest credit amount extended
  • Number of payment tradelines
  • The number of business inquiries
  • Number of UCC Filings
  • A percentage of businesses scoring worse than the company outlined in the report
  • Number of bankruptcies and liens

Payment Trend Summary

This section has two graphs. They show the company in question versus its industry on:

  • Monthly payment trends
  • Quarterly payment trends

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

Score Improvement Tips

Experian offers suggestions on how to improve your reports, such as:

  • Getting net-30 terms, if possible, from existing and future tradeline suppliers
  • Paying accounts on time or working with the tradeline supplier to work out a payment plan so a business is not reported delinquent
  • Lowering credit use
  • Making sure all the information in the report is correct

Get our business credit building checklist and build business credit the fast and easy way.

Monitoring Your Business Credit with Experian

Available options provide varying levels of detail. One such report is the Experian CreditScore SM Report. Get an Experian Business Credit Score (Intelliscore). You also get the Experian Financial Stability Risk Rating. Get information on derogatories like judgments, tax liens, and bankruptcies. Learn about any fictitious business name information in the file. As of the third quarter of 2021, this report costs $39.95.

Experian ProfilePlus SM Report

In addition to the Experian CreditScore Report, get:

  • Trade payment detail
  • Inquiry detail
  • UCC detail
  • Corporate financial information

As of the third quarter of 2021, this report costs $49.95.

Experian Business Credit Advantage SM Subscription Plan

You get (among other information):

  • Trade payment detail
  • Inquiry detail
  • UCC detail
  • Corporate financial information

As of the third quarter of 2021, this annual subscription costs $189.

Experian Business CreditScore Pro SM Subscription Plans

This is Experian’s most comprehensive plan. Along with everything above, you also get credit limit recommendations. Get reports on 30 businesses per month. As of the third quarter of 2021, this subscription costs $1,495 per year.

Experian BizVerify Report

This is Experian’s snapshot view of a business credit file. Use this report to verify that a new business is in their National Business Database. This brief summary report provides any available information on a business’s registration information. This is even for businesses that don’t yet have an Experian business credit score.

It isn’t much of a monitoring product; it’s more to make sure a business is in Experian’s records. As of the third quarter of 2021, this report costs less than $20.

Equifax

Most credit issuers and trade vendors report to D&B and Experian, not Equifax. So when you find trades that report to Equifax, apply, get approval, use your credit, and pay your bills on time. That way, you’ll build your reports and scores.

Many lenders pull your Equifax credit report for lending decisions. Your Equifax profile and score can also be a part of your FICO SBSS score. SBA lenders use this score for SBA loans. Build credit with Equifax when you can because it’s vital to getting the loans you need to grow your business.

Get Set Up with Equifax

If your search shows that Equifax has a record of your business, pull your Equifax reports and scores. See if you have trades reporting. Equifax can have an established report and score for you even if you have no trade lines reporting.

This is especially true if you have some type of public record out there, like a bankruptcy, lien, or lawsuit. In this case, access your Equifax company report and score even with 0 trades reporting.

Equifax Data

The company gets data from a data sharing agreement with the Small Business Exchange. They also use net 30 type industry trade credit information. They also get data from various suppliers of products and services to businesses on an invoice basis. Equifax combines financial data with industry trade credit data.

They add utility and telephone data and public record information. These are bankruptcies, judgments, and tax liens. Reports contain many calculated scores.

Get our business credit building checklist and build business credit the fast and easy way.

Equifax Reports

Equifax Business Credit Reports include:

  • Credit Summary – synopsis of credit accounts with banks, suppliers, and service providers
  • Public Records – Secretary of State business registration, judgments, liens, or bankruptcies
  • Risk Scores – Equifax Business Credit Risk Score™ and Equifax Business Failure Score™
  • Payment Index – a 12-month payment comparison to the industry norm
  • Additional Company Information – alternate business names, owner names, and guarantor names

It also includes business and credit grantor comments.

Credit Risk Score

This score runs from 101 to 992, and higher numbers are better. This section also shows key factors. These are positives and negatives about your business. Such as how old your oldest account is, and whether you have any charge-offs, and the size of your business.

Payment Index

A Payment Index score runs from 0 to 100, and higher numbers are better. It also shows Industry Median. Reports contain a table explaining the numbers:

  • 90+: Paid as Agreed
  • 80-89: 1-30 days overdue
  • 60-79: 31-60 days overdue
  • 40-59: 61-90 days overdue
  • 20-39: 91-120 days overdue
  • 1-19: 120+ days overdue

Monitoring and Disputing Issues with Your Equifax Report

Equifax will not change your scores without proof. They are starting to accept more and more online disputes. Include proofs of payment with it. These are documents like receipts and cancelled checks. Correct Equifax issues on their website. Be specific about the concerns with your report. As of the third quarter of 2021, you can order a single business credit report for $99.95. Or order a business credit report multi-pack (5 for the price of 4) for $399.95.

Monitor Business Credit at the 3 Credit Bureaus for Less

All these reports are expensive! But did you know that you can get business credit monitoring for all 3 credit bureaus, and all 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.

Improving Your Reports

Whatever improves one report, is bound to improve your reports at the other two of the big 3 credit bureaus. Paying off accounts always pays dividends. So does avoiding bankruptcies, and correcting errors as you spot them.

The 3 Credit Bureaus: Takeaways

D&B is the largest of the 3 credit bureaus for business. Experian uses blended personal and business data. Lenders tend to use Equifax. Actions you take to improve one report tend to improve the other two. Let us help.

The post All You Need to Know About The 3 Credit Bureaus appeared first on Credit Suite.

How Business Vendor Credit Accounts Can Improve a Business Credit Portfolio

Business vendor credit accounts are not usually talked about as part of a business credit portfolio. The emphasis is generally put on credit cards, lines of credit, and loans. However, they are vitally important to the cause. 

A Strong Business Credit Portfolio Can Help Move Your Business Forward

A business credit portfolio is made up of all of the credit you have available to your business.

That includes: 

  • Loans
  • Lines of Credit
  • Credit Cards
  • And even business vendor credit accounts

Having a strong business credit portfolio is important for running and growing your business. It’s how you ensure you have the funding you need, available when you need it.  It helps you bridge both planned and unexpected cash gaps. 

Even better, it will allow you to seize opportunities to grow and scale.  Better yet, you can do without creating a cash flow problem. 

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

How Do You Build a Strong Business Credit Portfolio?

Some business owners just use their personal credit to get started.  That’s not necessarily the best way. Most do not even realize there is another way. It actually starts with business vendor credit accounts.  These are accounts with vendors that allow you to pay invoices on net terms, rather than right away. 

How can net 30 vendors and and accounts with longer net terms really help? There are actually a number of ways. They not only contribute to a strong portfolio, but they can be a gateway to building an even stronger portfolio. 

How Vendor Credit Accounts Contribute to a Credit Portfolio

Using net 30 vendor accounts allows you to manage cash flow.   The best part is you can do so without paying interest. This is because net accounts are paid off in total at the end of the net terms. Usually that is 30, 60, 90, or 120 days. 

Cash Flow Management and the Credit Portfolio

Managing cash flow is really what the business credit portfolio is all about. A strong portfolio allows you to get what you need when you need it.  There is no need to use up cash reserves or wait until you have enough cash on hand. 

It’s smart to use business vendor credit whenever possible. By doing so, you save the revolving credit for larger purchases or those purchases you do not have vendor credit available for. 

Business Vendor Credit Helps Build Your Credit Portfolio

Here’s another way business vendor credit can improve your business credit portfolio. If you get the right accounts and use them properly, they can help you fill your credit profile with more business credit. As a result, you can rely less heavily on your personal credit. 

Here’s how that works. As a new business, you will not yet have a business credit profile. There is no history of your business paying obligations, and there is no business credit score. 

Since it’s virtually impossible to get credit without credit, there is a problem. Before you can build a business credit profile, you have to have initial accounts reporting. 

Using Business Vendor Credit Accounts To Get Accounts Reporting

There are not many business accounts you can get without already having a business credit score.  However, there are a few net 30vendors that will offer net terms on invoices without doing a credit check. We call these starter vendors.

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

That doesn’t mean they extend credit to any and all businesses. There are still factors they consider to determine creditworthiness. These vary from vendor to vendor, but can include things like: 

  • Time in business
  • Business bank account
  • And more

Using Starter Vendors to Build a Business Credit Profile

Extending credit without a credit check is not the only thing that makes a vendor a starter vendor. The other thing that starter vendors do that sets them apart is report on-time payments to the business credit reporting agencies. This is how you start to build a business credit score.

How to Find Starter Vendors

This part is tricky for a number of reasons. Most vendors that will extend net terms will tell you whether or not they do a credit check. What they will not usually tell you is whether or not they report your payments. Many will report late or missed payments, but few report positive payment history. 

You need accounts that will report positive payment history to build a business credit profile. 

There are a couple of ways to find starter vendors. The first way is to apply for accounts with the vendors you already use or want to build a relationship with. If you get approval, use the account. Then, monitor your business credit report to see if they are reporting.

There are a few problems with this method.  First, it is not guaranteed. There are not a lot of starter vendors out there. That means the chances that you just happen to find enough by trial-and-error are low. It takes more than one or two accounts reporting. You need a few.

This trial-and-error process can be very slow. The only way to know if it is working or not is to monitor your business credit. Unlike consumer credit monitoring, business credit monitoring is not free. Therefore, you are going to be paying to build business credit regardless. That is, unless you do not track your progress at all. 

There is a Better Way

The slow progress and uncertainty of trial-and-error wastes time and can cause a lot of frustration. A better way is to start with vendors you already know are starter vendors. The key is to work with someone who has an inside track on which creditors will extend net credit without a credit check and report on-time payments. 

By doing this, you can know that as you get approval and start using the credit, your business credit score is growing.  Working with a business credit specialist is much faster and saves a ton of frustration. It frees you up to run your business. You don’t have to try to figure out which vendors can help build your profile. 

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

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

Using Vendor Business Credit Wisely

There is a chance some of the vendors you need to work with to get accounts initially reporting will not be vendors you would have otherwise chosen. They may not sell things you think you need. The thing is, most of them sell things that every business can use. 

There is no need to buy a bunch of useless stuff to build business credit. You can buy packing supplies, office supplies, even janitorial supplies. Whatever you do, just be sure you pay on time, or better yet, early.

Business Vendor Credit Accounts Really Can Improve a Business Credit Portfolio

In fact, without them, it’s almost impossible to build a business credit portfolio at all. Your only option is to use a personal guarantee and collateral on virtually all accounts.  While neither of these things are bad, the less you have to use them the better. 

The post How Business Vendor Credit Accounts Can Improve a Business Credit Portfolio appeared first on Credit Suite.

How Business Vendor Credit Accounts Can Improve a Business Credit Portfolio

Business vendor credit accounts are not usually talked about as part of a business credit portfolio. The emphasis is generally put on credit cards, lines of credit, and loans. However, they are vitally important to the cause.  A Strong Business Credit Portfolio Can Help Move Your Business Forward A business credit portfolio is made up … Continue reading How Business Vendor Credit Accounts Can Improve a Business Credit Portfolio

Is Credit Union Direct Lending a Valid Option for Your Business?

Banks aren’t opening their vaults as easily for businesses these days as they have in the past. Many business owners are finding it necessary to get creative when it comes to business funding.  In many cases, credit unions are seizing the opportunity to step in and fill the gap.

Credit Union Direct Lending Works Well for Some Businesses, Is Yours One of Them?

In fact, back in 2018, Member Business Lending (MBL), partnered with CU Direct to help this process along. MBL is the leading credit union service provider when it comes to business loan origination services.  CU Direct, well known for the CUDL (Credit Union Direct Lending) system, works with thousands of auto dealerships to help facilitate auto-financing through credit unions.

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

Together, the two are able to streamline the credit union business loan processes.  It’s a good thing too, because more and more businesses are looking to credit unions to get the funding they need since banks aren’t coughing it up.

So, is credit union direct lending right for your business? Let’s find out.

What Does it Take to Qualify for Business Loan From a Credit Union?

While all lenders have their own requirements, it’s a fair bet you are going to need to provide the following to any lender.

  • Loan application form
  • Personal financial statement
  • Business plan
  • At least three years of financial statements and tax returns for existing businesses

Most lenders will be looking for the following:

  • Regular income sufficient to repay the loan along and stay solvent
  • A good credit history
  • Collateral
  • Financials in line with or exceeding peers.
  • Owner equity in the business.

If you cannot provide all of the information, it could go a couple of ways. They could automatically deny the loan. However, some credit unions are willing to review the information provided.

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

A complete loan application will typically include:

  • Current financial statements to within 3 months, and three years of past financial statements and tax returns
  • Personal financial statements from all principals of the business
  • A description of the collateral or purchase receipts or quotes if the loan is for new equipment
  • Projections on a month by month basis for up to two years, or the length of the loan if less than 2 years
  • A complete, professional business plan
  • Authorization for loan request from Board of Directors or partners
  • Personal guarantee

It’s important to note that personal credit score is handled differently by each institution when it comes to credit union business loans. It’s a fair bet that if they are asking for a personal guarantee, they are going to want to see a strong personal credit score.

However, we have heard from at least one credit union that this is not always the case. This particular credit union does not have a standard minimum credit score requirement.  They say they take each loan application on a case by case basis.

So, even if you do not have a great personal credit score, if you are strong in the other areas you may still qualify for a business loan from a credit union.  You just have to find the right lender.

Why Can Loans from a Credit Union be a Good Option?

So, why would you pursue a loan from a credit union over a loan at a bank?  In short, lower interest rates and fees. Credit unions are cooperative, non-profit organizations.  As such, they do not pay federal and state income taxes. So, they are able to pass the savings on in the form of lower rates and fees.

Due to a difference in structure and loan application review processes, credit unions are also often able to process loans much more quickly than banks.

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

What if Loans from a Credit Union Are Not an Option?

At this point, you are likely either thinking, “I can do this!” or “What am I going to do now?”  You’ve either realized you’ve got this in the bag, or you know you need to pursue other options until you get some issues taken care of.

There are a few things you can do. If you need money right now, you can look at getting a loan from an alternative lender. Credit Suite’s Credit Line Hybrid funding may also be an option. There are a lot of funding options out there.

Whatever you do, it’s likely you need to work on your fundability while you do it. Most business loan denials result from a fundability issue. You can get a free consultation with a business credit expert to help you analyze your fundability.  They can show you what you can do to improve your chances of approval.  With strong fundability, you’ll be able to get the best deals on the business funding you need, when you need it.

The post Is Credit Union Direct Lending a Valid Option for Your Business? appeared first on Credit Suite.

What No One Will Tell You About Retail Credit Cards

When you get a credit card tied directly to a store, it’s called a retail credit card. Common examples include retail credit cards from Lowe’s and Office Depot. Generally, you can only use these accounts at the specific store that issues the card. Some stores offer credit accounts with net terms rather than retail credit cards. 

Retail Credit Cards and Accounts Can Push Business Credit Beyond the Beginning

There are a lot of steps to building a business credit profile that many business owners just don’t know.  We do our best to help out in that area, but once you get started, you have to keep going. Building a fundable foundation is important, of course. You cannot have business credit without that. 

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

Then, you have to get initial accounts reporting. That’s where starter vendors come in. Yet, you can’t stop there. That is just the effort it takes to build the snowball and get it to the edge. You have to push it down the hill if it is ever going to grow. 

That is where you get to the next step after starter vendors. In the Business Credit Builder we call it Tier 2. This is where second step credit providers live. 

Retail Credit Cards and Accounts: AKA Tier 2 Credit Providers

There are various types of credit providers in the Tier 2 category. These are credit providers that will approve you with limited business credit history or a personal guarantee. What really sets them apart is that they will report your on-time payments to the business credit reporting agencies. 

Not all business credit providers do that. Many will only report late or missed payments, if they report anything at all. However, if you find those that report positive payment history, your business credit profile continues to grow. Your business credit score continues to grow as well. 

This is how your business credit score can really take off. 

Finding Tier 2 Retail Credit Providers

It can be a bit tricky to find these types of accounts. Despite the fact that most large retailers offer retail credit cards or net accounts, many do not make it easy to find out whether or not they will report. If you are working on building business credit, reporting on-time payments is vital. 

That’s part of the value of the Business Credit Builder.  There is a whole database full of Tier 2 vendors that report. We list them for you along with what it takes to get approval and which business credit agencies they report to. 

Some will still extend credit, and still report to the business credit reporting agencies, even if you do not meet the requirements or do not have enough business credit history. The catch is, they will require a personal guarantee.

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

Retail Credit Cards or Net Accounts and a Personal Guarantee

Others will not require a PG, but it will make it much easier to get approved with minimal business credit history. This is why the first steps of the Business Credit Builder are so important. Without a strong business credit profile, you may be able to get approval with a PG.  In contrast, if you build a solid foundation and business credit score with starter vendors first, you can get approval without a PG.

That right there is the secret that no one wants to talk about when it comes to retail credit. You do not have to give a personal guarantee to get it. There is another way. You can build a strong business credit profile before you apply. 

It’s not that a personal guarantee is bad, per se. Sometimes you may need it to get started. Still, it does add more liability to you personally. So, if you can get away without it, why not?

Examples of Tier 2 Retail Credit

Here are just a few options from the Business Credit Builder. 

Home Depot

Home Depot requires: 

  • An EIN 
  • Business address- matching everywhere.
  • D & B number
  • Business License- if applicable
  • Business Bank account

They also  like to see a minimum of 2 accounts reporting.  But, they will  look at the merit of the overall application, so minimum accounts reporting isn’t necessarily a deal breaker. 

They also require a business phone number listed in the 411 directory and at least 3 years in business. The minimum PAYDEX required is 80, and you must also have a good Experian business score.  You can request Net 60 terms after the account is established. 

If there is not enough business credit history or you have been in business for less than 3 years, a Personal Guarantee(PG) is required.

Quill.com

Quill.com sells supplies any business can use in day-to-day operations, including office and cleaning supplies.  For approval, they want to see: 

  • Business address- matching everywhere
  • D & B number
  • Business License- if applicable
  • Business Bank account
  • At least 3 trade/credit references
  • A good D&B paydex score of 80 or higher
  • That the business has been established for at least 6 months

New businesses or businesses with no credit history with D&B may need to pre pay purchases for 3 consecutive months until Net 30 is approved. 

Office Depot

To get approval for Net 30 with Office Depot you must have: 

  • An EIN 
  • A business address- matching everywhere.
  • Your business License- if applicable
  • A business bank account
  • At least 3 years in business
  • A good D&B paydex score of 80 or higher and good Experian business credit score

If any above criteria is not met, a Personal Guarantee (PG) is recommended but not required.

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

Once you’ve got your 5 (or more) starter vendors reporting, you should be eligible for credit from these retailers. That is, assuming you have handled your credit from starter vendors wisely. As you can see, exact requirements for approval vary by lender.

Retail Credit Cards or Net Accounts and Building Business Credit

Many of these credit providers have more than one option for business credit. For example, they may offer net terms as well as a revolving account. If you do not qualify for the revolving account, you may qualify for net terms. 

You can use the net account to help you build your business credit profile until you qualify for the revolving account. These examples can help you see what’s out there and what it takes to get approval.  They make it crystal clear why building a fundable foundation and getting initial accounts reporting using starter vendors is vital. 

Once you do so, you can get retail credit accounts from tier 2 reporting as well. This keeps the snowball rolling and growing allowing you to pick up bigger accounts with better terms.  If done properly, the need for a personal guarantee can be kept to a minimum.

The post What No One Will Tell You About Retail Credit Cards appeared first on Credit Suite.

Get Cash Flow Financing for Your Business – It Can Be a Great Way to Get Credit and Funding…

Can Cash Flow Financing Help YOUR Business?

For going concerns with some time in business, cash flow financing can be a good way to fund expansion, growth, or everyday needs. But what IS cash flow financing? And where do you get it?

Fundability, Cash Flow, and Your Business

Fundability is the ability of a business to get funding. It covers all the points a lender or credit provider will check when trying to figure out if you’ll pay back a loan or credit extended to you. These include details you may not have thought about or might think aren’t so important. But they are!

The 3 Cs Capital Acquisition Formula

When you think like a lender, you come to understand that all they want is to be sure that you’ll pay them back. Lenders look at one of three things for loan approval: cash flow, collateral, and/or credit. The more of these “Cs” you have, the more funding options are available. Let’s look at how cash flow financing can help your business.

Cash Flow Financing

Cash flow financing is a loan made to a company is backed by a company’s expected cash flows. A company’s cash flow is the amount of cash that flows in and out of a business. This is within a specific period. Cash flow financing or a cash flow loan uses generated cash flow as the way to pay back the loan. It’s one of the smarter financing activities you can do if you’ve got a going concern with predictable income.

Cash Flow Financing: Terms and Qualifying

Much of the time, you must have a few years in business. You may need a certain minimum credit score. You must prove historical cash flow, and present your accounts receivables and accounts payables, so the lender can determine how much to loan to your business.

Account Receivable Financing

You can use outstanding account receivables as your collateral for business financing. Receivables should be with the government or another business. If you also have purchase orders,  you can get financing to have those filled. You won’t need to use your cash flow to do so. Get an accounts receivable credit line with rates of less than 1% with no consumer credit requirement.

Account Receivable Financing: Terms and Qualifying

Use your outstanding account receivables for financing. Get as much as 90% of receivables advanced ongoing or more, in less than 24 hours. The rest of the accounts receivable are released once the invoice is paid in full. Factor rates as low as 1.33%.

Terms are for Credit Suite account receivable financing. The only collateral necessary is your account receivables. Loan amounts run from $10,000 to $10 million. Up to 95% of receivables can be advanced within a week. Rates start at prime rate 2%. You must have a FICO score of 500 or better.

Receivables must come from another business or government agency, not an individual. Business must be open for at least one year to qualify. Medical receivables must have $1 million in annual sales or more. For the deal submission, you must provide the application, a breakdown of existing receivables, and a sample invoice.

Purchase Order Financing

Purchase order financing is advanced to a business with a large purchase order or contract, but the business is unable to fulfill it. A lender then loans the funds necessary to complete the order and charges a percentage for the service. Then the company can fulfill its order or contract.

The difference between purchase order and accounts receivable financing is purchase order financing involves a company lending you money to fulfill purchase orders. But accounts receivable financing involves a company buying your outstanding invoices. Still, they are both, at bottom, based on cash flow.

Purchase Order Financing: Terms and Qualifying

Terms are for Credit Suite purchase order financing. For approval, lenders will often review your outstanding purchase orders that need filling. They want to be sure the purchase orders are valid, and the suppliers you are dealing with are credible.

If so, then you can get approval, regardless of personal credit history. Rates tend to range from to 4%. In some instances, you can get 95% of your purchase order financed.

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

Business Revenue Lending

This is a way to raise capital from investors who get a percentage of the enterprise’s ongoing gross revenues, in exchange for money invested. In a revenue-based financing investment, investors get a regular share of business income until a predetermined amount is paid. Often, this predetermined amount is a multiple of the principal investment. It is often between 3 to 5 times the original amount invested.

Business Revenue Lending: Terms and Qualifying

Since repayment of the loan is comes from revenues, the time it takes to repay the loan will fluctuate. The faster revenue grows, the quicker you’ll repay the loan, and vice versa. The percentage of monthly revenues committed to repayment can be as high as 10%. Monthly payments will fluctuate with revenue highs and lows and will continue until you’ve paid back the loan in full.

All terms are for the Credit Suite business revenue lending program. Necessary collateral is consistent revenue verifiable through bank statements. Loan amounts run from $5,000 to $500,000. Terms are for 3 to 36 months. Pay a factor rate of 1.10 to 1.45%. Credit you must have a 500 credit score or higher, with no recent bankruptcies.

Business must earn annual revenue of $120,000 or more per year. You must be in business for a year or more. The business must do over 5 small transactions each month. Financial services industries are prohibited, damaged credit is acceptable. Or business must bring in at least $15,000 monthly revenue with 6 months’ time in business. To get this deal, you must provide the application and 6 months of business bank statements.

Fundbox

Get a line of credit from Fundbox. Fundbox just wants to know about your cash flow when deciding whether to fund your business. Fundbox will connect straight to your online accounting software. That’s all you need to do. You can get a revolving line of credit for up to $100,000. Fundbox will auto debit your weekly payment from your bank account. You don’t need to show a particular personal credit score. And you don’t need to show a certain time in business.

Fundbox: Terms and Qualifying

Pay in equal installments over the course of a 12 or 24 week plan. Available credit replenishes as you pay. There are no penalty to repay early. Your business must be American. You must have a 600 or better personal FICO score, and $100,000 or more in annual revenue. Also, you must have a business checking account. Ideally you must have 6 months in business or more.

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

PayPal Working Capital Loan

You can get a loan from PayPal. But you must already have a PayPal business account. There is no personal guarantee. Loan amounts and eligibility depend on your sales via PayPal. So applying won’t result in a credit check.

PayPal Working Capital Loan: Terms and Qualifying

The maximum loan amount depends on your PayPal account history. To be eligible, you must have a PayPal Premier or Business account for 90 days or more. Also, you must process at least $20,000 in annual PayPal sales if you have a Premier account, or at least $15,000 in annual PayPal sales if you have a Business PayPal account. Pay off any existing PayPal Working Capital loan.

Since automatic repayments get deducted as a percentage of each PayPal sale,  the amount you repay each day changes with your sales volume. The more you sell, the more repayment progress you’ll make that day. On days without sales, you’ll make no payments, but you must repay something at least every 90 days.

Depending on the loan terms you choose, you must pay at least 5% or 10% of your total loan amount (loan + the fixed fee) every 90 days. The 5% minimum applies to loans estimated to take 12 months or more for repayment. This has a basis in your business’ past PayPal sales and other factors. The 10% option applies to loans estimated to be repaid within 12 months.

Square

You can get loans through Square. Applying will not affect your personal credit score. Loan eligibility comes from several factors related to your business, including its payment processing volume, account history, and payment frequency.

You can get $300 to $250,000. Borrowers get a customized offer with a basis in their card sales through Square. Then they choose their loan size. You will pay no interest, just an ongoing flat fee

Square: Terms and Qualifying

There are no ongoing interest charges. Instead, you will pay one fixed loan fee to borrow the loan. The fixed fee is the difference between the total owed amount and the initial loan amount. The fixed fee will never change, regardless of how fast or slow the loan is repaid. It is automatically deducted until you pay back your loan in full. If sales are up one day, you pay more; if you have a slow day, you pay less. At least 1/18 of the initial balance must be repaid every 60 days.

They don’t want collateral for business loans of $75,000 or less. For loans amounts over $75,000, they take a security interest in your business assets. Then they will file a UCC statement with the Secretary of State where your business is organized. There is no personal guarantee.

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

Cash Flow Financing: Takeaways

There are several options for business funding that depend on your cash flow. Some are available through Credit Suite. There are also online options, such as through PayPal and Square. Contact us today for help with your options.

The post Get Cash Flow Financing for Your Business – It Can Be a Great Way to Get Credit and Funding… appeared first on Credit Suite.

Get Sprinter Vans with Business Credit: We Show You How

Building Your Commercial Fleet of Sprinter Vans While You Build Your Business and Its Credit

Want or need sprinter vans for your business? Then you should be building business credit!

Your business doesn’t start off with good business credit already built. In much the same way, you probably didn’t start with any vehicles. Or, at least, not with business vehicles you wanted to keep. And even if you bought your business fully created, you can still build it to greater heights. For all three goals, it pays to work in an orderly fashion. Step by step, it all works together.

Building business credit will mean getting vendor accounts. Starting with vendor credit accounts is a proven way to start building business credit. But we don’t include vendors just because they report to the business credit reporting agencies. We include them and we talk about them because they have quality products that you can use and great customer service. They are not just a means to an end!

But let’s start off with some basics.

How Do Sprinter Vans and Business Credit Work Together?

In general, the term ‘sprinter van’ is used more or less synonymously with ‘cargo van’. But it’s actually the name of a line of vans made by Mercedes-Benz. However, much like the words ‘Kleenex’ and ‘tissue’, the brand name has entered the lexicon as a synonym for a more general term.

Sprinter Vans and Business Credit Together

Sprinter vans tend to be a bit taller than full-sized SUVs. Per Zip Recruiter, you generally don’t need a special commercial license to drive a sprinter van. But in some states you may need a chauffeur’s license if you’re driving passengers.

According to Car and Driver, “over 50 percent of Sprinter vans that are sold in the U.S. are used for commercial purposes. The other half of these vans are sold as passenger shuttles and recreational vehicles, such as limousines, office vans, family vans, wheelchair accessible vans, and golf vans.”

Sprinter vans can currently cost between $35,000 and $45,000 and that’s before you add options.

Building Business Credit the Right Way

Start with building business credit. But you can’t start with high limits. First build starter trade lines that report (vendor credit). Then you’ll have an established credit profile. Then you’ll get a business credit score. With an established business credit profile and score you can start getting high credit limits.

The Process

Use your 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.

But Just What is Starter Vendor Credit?

These trade lines are creditors who will give you initial credit when you have none now. These vendors typically offer terms such as Net 30, instead of revolving. So if you are approved for $1,000 in vendor credit and use all of it, you must pay that money back in a set term such as within 30 days on a Net 30 account. However, there are some revolving accounts which are still considered to be starter vendors.

Vendor Credit Accounts

You must pay net 30 accounts in full within 30 days. And you have to pay net 60 accounts in full within 60 days. Unlike with revolving accounts, you have a set time when you must pay back what you borrowed or the credit you used.

To start your business credit profile the RIGHT way, you need to get approved for vendor accounts that report to the business CRAs. Once that’s done, you can then use the credit, pay back what you used, and the account is reported to Dun & Bradstreet, Experian, or Equifax, or some combination.

Details

Once reported, then you have trade lines, an established credit profile, and an established credit score. Using a newly established business credit profile and score, you can then get approval for more credit under your EIN. For vendor credit, you can often leave your SSN off the application since this credit isn’t on offer through a bank.

With and EIN and not your SSN on the application.  the credit issuer pulls your EIN credit. They see a solid profile and score, and as a result can approve you for more credit. Keep in mind, credit through a bank will require your SSN. It’s an anti-money laundering requirement under federal law.

Vendor Credit Cards

Vendor credit cards will get business credit building for your business going. Once you’ve added payment experiences from three vendors, and they have reported to business CRAs like Dun & Bradstreet, you can start qualifying for fleet credit. Make sure business credit cards don’t report on your personal credit

Every step and every credit provider is designed to help your business. The idea is to help you qualify for business credit cards that you will actually use. This isn’t building for the sake of building, and it isn’t just to increase a number. These credit providers are going to have what your business needs to succeed.

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

Business Credit Benefits

Keep in mind, business credit is independent of personal. Applying for it often won’t harm your personal credit scores, although it can if you offer a PG and then fail to pay. An inquiry will also impact personal credit. Too many inquires can hurt your ability to get an approval. Building this asset can only help your business. You can help your future business right now.

Vendor Credit Benefits

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.

Getting a Vendor to Pull Credit Under your EIN

Remember, there is no Social Security requirement for starter vendor credit. This is unlike bank loans and more universal business credit cards. So leave the field blank. Don’t fill in any other number, as that’s a violation of two Federal laws. A blank field will force them to pull your business credit under your EIN.

But note: some creditors will still require an SSN for verification purposes. You should present your SSN in this situation but make sure you aren’t agreeing a PG or personal credit check.

Building Business Credit – What You Really Need to Know

You won’t get a Visa or a MasterCard (more universal business credit cards) right away. You need to have credit to get more credit. Start building trade lines to get the big payoff. Getting initial credit is the hardest part. The vast majority of trade vendors who issue credit don’t report it to the business reporting agencies. So, you MUST find sources which actually report.

Using Business Credit Vendors

Check out three of our favorite starter vendors:

  • 76
  • Wex Fleet
  • Marathon

All three come from Wex

76

Phillips 66 Company owns 76. It has more than 1,800 retail fuel sites in the United States. This card reports to D&B and Experian. But keep in mind: before applying for multiple accounts with WEX Fleet cards, make sure to leave enough time in between applying so that they don’t red flag your account for fraud.

Qualifying for 76

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 with a 411 listing

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 using a personal guarantee if you’ve been in business less than a year. Apply online or over the phone. Terms are Net 15. You can use this card at any P66, 76, or Conoco fueling location.

Wex Fleet

They report to Experian and D&B. Wex offers universal fleet cards, heavy truck cards, and universally accepted business fleet cards. Their cards have features supporting a small business. This includes a rewards program. But before applying for multiple accounts with WEX Fleet cards, make sure to have enough time in between applying, so that they don’t red flag your account for fraud.

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

Qualifying for Wex Fleet

To qualify, you need:

  • Entity in good standing with Secretary of State
  • EIN number with IRS
  • Business address (matching everywhere)
  • D-U-N-S number
  • Business License (if applicable)
  • Business Bank account
  • Business phone number with a 411 listing

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

Marathon

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

Qualifying for Marathon

To qualify, you need:

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

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 personal guarantee 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 after starter vendors. It comes from places like Gulf and Exxon. You can use it to:

  • Buy fuel
  • Maintain vehicles of all sorts, including sprinter vans
  • Repair vehicles

Even businesses which don’t have big fleets can still benefit. Yes, fleet credit works for sprinter vans. These are usually gas credit cards.

There may be a minimal time in business requirement. If your business can’t make a time in business requirement, you may be able to instead offer a personal guarantee or give a deposit to secure the credit.

Now that you’ve got a bunch of cards to support your fleet, it’s time to look at vehicle financing to buy the fleet!

Vehicle Financing

Much like you probably didn’t buy your personal vehicles outright, financing is a great way to get a vehicle now, without having to wait until you can just pay cash and drive it off the lot. With a fleet car, your choices are usually buying or leasing. Providers include banks like Bank of America or the financing arm of the manufacturer, such as 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’re going to have certain requirements that business credit neophytes just won’t be able to meet. Lenders will want to see that you have the income to support the purchase.

Consider Ally Car Financing.

Ally Car Financing Through 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.

Qualifying for an Ally Commercial Line of Credit

You will need:

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

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

Qualifying for Ally Commercial Vehicle Financing

You can 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 and fleet financing references. There is no minimum time in business requirement. Apply in person only, as the dealer will advise if you have an approval or will need to provide a Personal Guarantee (PG).

Ford Commercial Vehicle Financing Through 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. You can get a loan or a lease.

Ford may ask for a Personal Guarantee (PG) if you are not approved on the merit of your application. Apply at the dealership. Ford will report to D&B, Experian, and Equifax.

Qualifying for Ford Commercial Vehicle Financing

To qualify, you need:

  • Entity in good standing with Secretary of State
  • EIN number with IRS
  • Business address- matching everywhere
  • D-U-N-S number
  • Business license (if applicable)
  • And a business bank account
  • Strong business credit history, with a good Experian business credit score.

Now that you’ve got the cars and the cards, it’s time to look at using your business credit for vehicle financing.

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

Vehicle Financing

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

PG (Personal Guarantee) Financing

According to Investopedia, a personal guarantee is “an individual’s legal promise to repay credit issued to a business for which they serve as an executive or partner. Providing a personal guarantee means that if the business becomes unable to repay the debt, the individual assumes personal responsibility for the balance. Personal guarantees provide an extra level of protection to credit issuers who want to make sure they will be repaid.”

When you provide a personal guarantee, you are adding your Social Security number to the application. You should 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.

Get Sprinter Vans with Business Credit: Takeaways

Use business credit to buy everything you need to run a fleet, from fuel to service. And use auto financing to buy your sprinter vans. Help make your business’s future bright – today! Let’s get together and have a conversation about getting started.

The post Get Sprinter Vans with Business Credit: We Show You How appeared first on Credit Suite.

You Can Get a Fantastic Business Credit Card Bonus – Check Out Our Top Choices

Looking for a Business Credit Card Bonus?

There are a lot of business credit cards out there. Choices can come from well-known providers, and not so well-known ones. If you’re looking for a business credit card bonus, then you’ve come to the right place.

What Sort of a Business Credit Card Bonus is Available?

In general, bonuses will come in the form of either cash or points, sometimes travel points. Although we did find one where you can get a bonus in bitcoin! Virtually always, you will have to spend a minimum amount within a particular time frame before you can get the bonus. To find the best deal for you, check out the details closely.

Business Credit Card Bonus in Generous Points, Not Requiring a High Minimum Spend

We start with cards which give generous point bonuses but don’t require that you spend an arm and a leg in order to get them.

Bremer Bank Visa Smart Business Rewards

Check out the Bremer Bank Visa Smart Business Rewards card. Pay a $0 annual fee for the first twelve months, then $95 for the first year and every year after $95 for Account Owners, $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 a 20,000 bonus reward points after you spend $500 in the first 90 days. Pay a 15.99-20.99% APR based on creditworthiness.

The bonus reward points offer is generous, and the minimum spend should be a snap for most businesses to meet. The annual fee for account owners is fairly high, but no annual fee for authorized employees means this card could be used successfully with a large number of employees.

Mechanics Bank Smart Business Rewards Visa

Consider the Mechanics Bank Smart Business Rewards Visa. Pay a $0 introductory annual fee for the first twelve months, then $95 for the first year and every year after $95 for Account Owners, $0 for Authorized Employees. Get double points per dollar spent in top two spend categories per month. And get 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% based on creditworthiness. This is a very generous bonus for an incredibly low spend.

Business Credit Cards with the Most Generous Points Offers

You may have to spend more with these cards, but you’ll get even more points.

Union Bank Business Preferred Rewards Visa Credit Card

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

Pay a 0% introductory APR for the first six months, then 11.99-20.99% variable APR. You 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.

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

Bank of America Business Advantage Travel Rewards Credit Card Platinum + MasterCard

Get to know the Bank of America Business Advantage Travel Rewards Credit Card Platinum + MasterCard. There is a $0 annual fee. Get 30,000 bonus points when you make at least $3,000 in new net purchases that post to your account within the first 90 days. Earn 1.5 points per dollar spent. And get triple points per dollar spent on travel. There is a 0% introductory APR for the first nine billing cycles, then 12.24-22.24%. The bonus points offer is generous and the minimum spend is relatively easily attainable. If your business requires a lot of traveling, this is a good card.

Business Credit Card Bonus via Cash Back Offers and a Fairly Low Minimum Spend

If cash back offers are more your speed, consider these options.

Chase Bank Ink Business Unlimited®

Check out the Chase Bank Ink Business Unlimited® card. Get $750 bonus cash back if you spend $7,500 in the first 3 months after account opening. Pay no annual fee. Get 1.5% cash back unlimited. Pay a 0% APR on purchases for the first 12 months after account opening, then 13.24-19.24% based on creditworthiness. The balance transfer APR is 13.24-19.24% based on creditworthiness. If you have several computers or other expensive equipment to purchase, buy it quickly to take advantage of the cash back bonus.

US Bank Business Cash Rewards World Elite™ Mastercard®

Get to know the US Bank Business Cash Rewards World Elite™ Mastercard®. Earn to 3% cash back on eligible gas station, office supply store and cell phone/service provider net purchases. All other purchases earn 1% cash back. Purchases of gasoline greater than $200 will not be deemed to be a purchase of automotive gasoline, and as such will earn a reward of 1%.

Get $500 cash back if you spend $3,000 in the first 90 days from account opening

Earn a 25% annual bonus based on your prior year’s cash rewards, to $250. Pay no annual fee. And pay a 0% introductory APR for the first 12 billing cycles. After that, 13.99-22.99% based on creditworthiness.

Details

To hit the bonus limit, you would have to have spent over $33,000 in the previous year. But the initial spend requirement isn’t too bad, and you can certainly meet it by buying computers or the like. The APR after the introductory period is acceptable. If your credit is such that you qualify for the lower APR, this card could turn out to be a decent deal.

Secured Card Business Credit Card Bonus

If you want or need a secured credit card, here’s one with a business credit card bonus.

Wells Fargo Business Secured Credit Card

Get to know the Wells Fargo Business Secured Credit Card. A Wells Fargo business checking or savings account must be open before applying. Upon approval, your funds will be transferred from the deposit account to fund the credit line. Get a $500 to $25,000 credit line, based on the amount of funds deposited by you as security in a collateral account. Pay no annual fee. There is no foreign transaction fee.

Get up to 10 employee cards. Pay prime + 11.90% APR on purchases. And pay prime + 20.74% APR on cash advances. Cash advance or balance transfer fees may apply.

Choose between Cash Back or Rewards Points

There is no annual rewards program fee. And there’s no required spending categories or caps. Earn 1.5% cash back for every $1 spent on net purchases. You get cash back automatically as a credit to your account or to your eligible checking or savings account each quarter.

If you choose rewards points, you will earn 1 point for every $1 spent on net purchases. Get 1,000 bonus points when your company spends $1,000 or more in any monthly billing period. Redeem points for gift cards, merchandise, airline tickets and more. Get a 10% points credit when you redeem points online. And you can earn extra bonus points or discounts from Earn More Mall® retailers.

Build Business Credit

Wells Fargo reports your payment and usage behavior to the Small Business Financial Exchange. Plus, payment and usage activity of the Wells Fargo Business Secured card is not reported to the consumer credit bureaus, therefore it will not help build or rebuild personal credit history.

Wells Fargo will periodically review your account and recent credit history for an opportunity to upgrade to an unsecured business credit card. You may become eligible with responsible use over time. Being able to upgrade to an unsecured business credit card also depends on your FICO score, payment history and ratio of credit card usage to credit limit.

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

Credit Card with a Bitcoin Bonus

For the most out-there credit card signup bonus we found, check out how you can get bitcoin as a bonus.

BlockFi Bitcoin Rewards Credit Card from Visa (personal)

Check out the BlockFi Bitcoin Rewards Credit Card from Visa. But note this is a personal credit card, but any popular rewards or bonus program can eventually make its way into the business credit card world.

Earn an unlimited 1.5% back in bitcoin on every purchase. Pay no annual fee. There are no foreign transaction fees. Earn 2% back in bitcoin on every purchase over $50,000 of annual spend. And earn 3.5% back in bitcoin during your first 3 months of card ownership.

The introductory offer is capped at $100 dollars in bitcoin, which equals about $5,000 of spend to earn an extra $100 in bitcoin. You can earn crypto interest on bitcoin rewards. Get a 2% annual percentage yield bonus in bitcoin on stablecoin holdings, which is paid in bitcoin, up to $200. Get a trading bonus of 0.25% back in bitcoin on all eligible trades. And earn $30 in bitcoin for every client referral, on top of base.

Details

A soft credit pull happens before accepting the credit card offer. And a hard credit pull occurs when you’ve accepted your credit card offer. There is no information on when this card will actually be available. Until this card is available, it will be difficult to tell which individuals would most benefit from it. Backing from Visa is encouraging, but the hard credit pull is concerning.

Business Credit Card Bonus and Low APR

If you want to enjoy a low annual percentage rate in addition to a business credit card bonus, take a look at these choices.

PNC Bank Cash Rewards® Visa Signature® Business Credit Card

Take a look at the PNC Bank Cash Rewards® Visa Signature® Business Credit Card. Get $200 bonus if you spend $3,000 in the first 3 billing cycles after account opening. 1.5% cash back on net purchases, no cash back limits. Pay no annual fee. You pay a 0% APR for the first 9 billing cycles after account opening, then 10.99-19.99% variable APR, based on creditworthiness . With mostly lower interest rates and an easy to meet minimum spend, this card is great if you can’t or won’t spend so much in such a short amount of time after getting the card.

Alpine Bank Visa Platinum Rewards

Take a look at the Alpine Bank Visa Platinum Rewards card. You pay no annual fee, and get one point per dollar spent. Get bonus points: 5,000 for first $3,000 spent in first four billing cycles. The APR for purchases is Prime + 8.74-14.74%. And the APR is 21% for cash advances. There is a balance transfer APR of 10% or 3% of the amount of each transfer, whichever is greater. This is a good card for both APR and the amount you need to spend for a bonus is fairly low.

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

Bank of Hope Business Rewards Visa® Credit Card

Business Credit Card Bonus Credit SuiteAnother choice is the Bank of Hope Business Rewards Visa® Credit Card. You pay no annual fee. There is a 3% balance transfer fee with a minimum of $5. Earn 5,000 bonus points after spending $1,000 in the first three months. And you can earn triple points on gas. Get double points on travel and dining. Earn one point per dollar on all other purchases.

There is a 0% introductory APR for nine months, then variable APR 12.49%, 16.49% or 20.49% based on creditworthiness after introductory period ends. It should be easy for most entrepreneurs to meet the minimum 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 for you.

Get a Business Credit Card Bonus: Takeaways

Always look for the biggest business credit card bonus you can get, with the lowest possible minimum spend. Plus make sure it’s a bonus you can use. Because if points expire before you get a chance to use them, it’s as if you never got the bonus in the first place.

The post You Can Get a Fantastic Business Credit Card Bonus – Check Out Our Top Choices appeared first on Credit Suite.

How to Use Strong Business Credit to Unlock the Power of Advanced Business Vendors

We always talk about building business credit, and how a strong business credit score can help you get funding for your business. It can help you fund your business without overloading your personal credit.  Also, it can help you reduce your need for a personal guarantee when you need business financing. Yet, there is one huge benefit to strong business credit that is rarely mentioned. That is access to advanced business vendors.

Advanced Business Vendors are One of the Real Benefits of Business Credit

There is a misconception among many business owners that are just starting to understand business credit.  It is that a good business credit score can help you get a business loan without a personal guarantee. However, the truth is, pretty much every small business loan from a traditional lender will require a personal guarantee.

That being the case, is it really necessary to build business credit? Wouldn’t it be better to work on personal credit so a lender will accept your personal guarantee? What is business credit good for if not to help you get a business loan?

What frustrates you the most about funding your business? Check out how our free guide can help.

First, it can help you get a business loan. If your personal credit isn’t great and you have good business credit, underwriters will see that as a positive. Also, good business credit can help reduce the reliance of lenders on a personal guarantee, even if it doesn’t go away completely.

But the real benefit of business credit is that it allows you to access advanced business vendors.

What are Advanced Business Vendors?

These are vendors that offer credit to businesses that have strong business credit, but they may not report your payments.  That means they don’t help build your business credit score. Still, they are pivotal to running a thriving business.

Unlocking access to these vendors is a little realized benefit of a strong business credit score. If you have access to credit with advanced vendors you can grow your business in ways you may have never imagined

For example, you can bid on the big project even if you don’t have the cash flow to buy the supplies. You can offer the latest new product despite not having cash flow to keep up with demand. Basically, it opens up a whole new world as far as what you can and cannot do in your business.

What Does This Look Like Practically?

It may be hard to wrap your mind around exactly what this looks like in real life.  Especially when you are just thinking about credit cards and business loans.  Some examples may help.

Example 1: Remodeling Contractor Needs Supplies Before Payment

Suppose a contractor is hired to remodel a kitchen. The supplies are going to cost money, but the client isn’t going to pay until the job is done. However, if the contractor has business credit with advanced vendors to purchase the supplies, he or she can still take the job.  They will pay suppliers when the customer pays.

Example 2: Restaurant Owner Must Keep Up With Customer Demand

A restaurant owner needs to keep up with customer demand. Dishwashers are not keeping up, and they need more utensils and serving dishes. A vendor account with a restaurant supplier makes this a non-issue.  Just purchase what you need now, and pay the next month when meeting the increased demand pays off.

Example 3: Music Teacher Needs to Provide Various Instruments to Beginner Students

A music teacher has a studio to offer lessons to children.  As beginners, many of them do not have an instrument at first,  They likely do not even know what they want to play.  Business credit accounts with instrument suppliers, as well as suppliers of those things needed to maintain instruments can help. They will allow the teacher to provide a number of various types of instruments for students to try.

Students may even purchase instruments from the school once they choose what they want to play. This may offer an incentive to choose lessons at that specific school, as parents will not be spending on an instrument that may or may not get played.

Each example shows how advanced business vendors can help a business grow in a way that would not be possible otherwise. Of course, business credit cards may work. However, with vendors you usually have net terms. That means you cannot carry a balance, which reduces the risk of racking up huge amounts of debt.  Accounts like this are the reason you work to build strong business credit.

What frustrates you the most about funding your business? Check out how our free guide can help.

How To Find Advanced Business Vendors

Not all suppliers will offer this type of credit. The ones that do don’t necessarily advertise it. You typically have to know to ask for it or develop a relationship with them first.  This can take a lot of time.

Luckily, you can speed up the process by working with someone who knows who these vendors are. You need someone who already has a relationship with the vendors.  They can help you find the ones that will work best with your business. Of course, whoever you are working with has to know and understand your business as well.  Then, they will  know which vendors you will qualify for advanced business credit with.

The Benefit of the Credit Suite Business Credit Builder

This is a little known benefit of the Credit Suite Business Credit Builder. You have access to the platform for 5 years!  So, after you work through the business credit building process, you still have access to our huge database of advanced business vendors.

Furthermore, we tell you just what is required to get approved with each one. Of course, there are too many vendors to list in one presentation.  Still, a little taste of what is available can help you see that advanced vendors are just what you need.

Then you can run your business the way you need to.

Access Hardware Supply

Access Hardware Supply is a leading wholesale distributor of products from the top names in door hardware and security technology.

Qualification requirements include:

  • Entity in good standing with Secretary of State
  • EIN
  • Business address- matching everywhere
  • D & B number
  • Business License- if applicable
  • Business Bank account
  • Bank reference
  • Trade references
  • A good Experian business credit score

There is no minimum time in business necessary, and terms are net 30, 60, or 90. You can apply online or on the phone.

Central Restaurant Products

Central Restaurant Products has beens selling pretty much anything needed for the food service industry since 1981.

Qualification requirements include:

  • Entity in good standing with Secretary of State
  • Business credit history
  • EIN
  • Business address- matching everywhere.
  • D&B number
  • Business License- if applicable
  • Business Bank account
  • Bank reference
  • Trade/credit references
  • At least 1 year in business
  • D&B paydex score of 80 or higher

Terms are Net 30.

Sherwin Williams

Sherwin Williams is a widely known provider of paint and coatings for over 150 years.

Qualification requirements include:

  • Entity in good standing with Secretary of State
  • EIN number with IRS
  • Business address- matching everywhere
  • D&B number
  • Business License- if applicable
  • Business Bank account
  • 3 Trade references

If there is not enough business credit history, a personal guarantee (PG) is required. You have to apply for the account in the store, and terms are net 20.

Personal Guarantee

Sherwin Williams is a great example of how business credit can help your business, and help you avoid a personal guarantee in some instances. If you give a personal guarantee, the account may show up on your personal credit report. However, without a personal guarantee, using your business information, that is likely not to be the case.

Remember, a personal guarantee isn’t a bad thing. In fact, it may be the only option you have to get the funding you need until you build strong business credit. At least, that is, if you have good personal credit and you want to avoid very high interest rates.

But not using a personal guarantee keeps your personal credit available for personal financial needs.

Trade References

You may also notice that each of these vendors requires trade references. A trade reference is a report that details the payment history between a company and a vendor. It can come verbally, in a letter, or on a business credit report. Vendors that do not report to the business credit reporting agencies may be willing to provide a trade reference.  As a result, they can still help you get funding.

What frustrates you the most about funding your business? Check out how our free guide can help.

Unlock the Power of Advanced Business Vendors

Access to advanced business vendors is a huge benefit of strong business credit. They offer funding to help you build and grow your business, without paying unnecessary interest. They also help you avoid the temptation of carrying a large balance unnecessarily.

Of course, you have to manage the vendors in your credit portfolio carefully. Be sure you can repay and do so on time. Even if they do not report positive payment history, they are likely to report negative payment history.  Plus, you want to keep a good relationship with them. Not to mention, if you do not pay responsibly, you will not be able to get good trade references from them.

Ready to get started business business credit and unlock the power of advanced business vendors?  Try a free consultation with a business credit specialist.

The post How to Use Strong Business Credit to Unlock the Power of Advanced Business Vendors appeared first on Credit Suite.

The True Story Behind Credit Card Stacking and Why It’s Not Always Bad

Credit card stacking is in the news lately.  Mostly, the news isn’t great. In fact, if you’re reading this, you likely know that. You may very well be thinking that this type of funding is a scam.

Is Credit Card Stacking Always Bad? 

credit card stacking

No, stacking credit cards is not always bad. In fact, a credit card stacking program can be a very useful tool for funding a business. It even works well for startups. You just have to know how to avoid the scams. 

What is Credit Card Stacking?

This type of funding involves applying for multiple credit cards at once. Then when you get approval, you have access to the balances on all of them. You can use the money to fund a business, even drawing cash if you need. 

There is no need for collateral. In fact, this is totally unsecured business financing. However, you do need a personal guarantee. That means you need a decent credit score. Usually, that is a personal credit score of 680 or above. 

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

Is Credit Card Stacking a Scam?

No, in and of itself, this type of funding is not a scam. Still, there are scams like this out there. You need to know how to tell the difference between a scam and legitimate card stacking program to fund your business. 

Once you know the difference, you can take advantage of this funding option while protecting yourself and your business. 

About the Seed Capital Card Stacking Scandal

Let’s talk about the elephant in the room. If you do a Google search on “credit card stacking” you are going to see a lot about Seed Capital. They were running a card stacking scam, and the Federal Trade Commission put a stop to it. Here is how it went down.

First, Seed Capital did not tell companies how this funding would work. Borrowers did not realize they were applying for multiple credit cards. In addition, many times these were personal credit cards, and they had no idea. Furthermore, Seed was filling out the credit applications, not the client.

That’s not necessarily terrible if the client knows about it and has given formal permission, but Seed was also found to be lying about the income of the clients on the applications. In fact, sometimes income was inflated by as much as $100,000.

The result was that many clients were getting approval for multiple cards with very high limits. Again, all of this was without their knowledge.

But There Is More to the Seed Capital Story

Now, the rest of the story. That’s right, there’s more. Most clients found Seed when they looked into some sort of business training program. Behind the scenes, the program had a deal with Seed to use their credit card stacking program to finance the training package for the client. 

The client would realize they did not need to or could not make the cash outlay. The training company would offer financing and have the client apply. Then, they would send the info to Seed, who would apply for the credit cards as mentioned above. After that, Seed would let the training company know what the total limit was, and the client would be charged close to that amount, virtually maxing out multiple cards at once.

Not only that, but most clients felt the “training” was a scam itself, believing it not to be useful once they went through the program. Then, they were stuck with thousands of dollars of credit card debt, and a wrecked personal credit score due to high utilization ratios. Unfortunately, they did not have anything useful to show for it. 

Legit Card Stacking to Fund a Business

This is not how legit card stacking programs work. On the contrary, you can actually even do this to fund a startup.  It’s better if you have someone to help you. A professional can help you find the best card options and the lowest rates. 

One common practice is to find cards with 0% introductory rates. This allows for 0% interest, sometimes for over a year, and at least until the introductory rates run out. Credit Suite has a program like this called The Credit Line Hybrid.

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

The Credit Line Hybrid

You need good credit or a credit partner with good credit to qualify for the Credit Line Hybrid. This is unsecured business financing like all credit card stacking, so there is no collateral requirement.  You can use the funds on anything for your business. 

For example: 

  • Real estate
  • Equipment
  • Working capital
  • Even startup expenses

There is no down payment necessary and no income documentation either. This is totally “no-doc” financing. Approval can range up to $150,000. 

The Credit Line Hybrid Requirements

How do you qualify for The Credit LIne Hybrid? You need a personal credit score of 680 or above or a credit partner that does. Other requirements include: 

  • No late payments for the past 24 months
  • 6 inquires or less in the past 6 months
  • No open collections or bankruptcies
  • At least 2 open credit cards with a $2,000 limit or higher
  • At least 1 ½ years good payment history
  • Utilization rate not higher than 40%
  • And no bankruptcies in the past 7 years

Benefits of The Credit Line Hybrid

Not having to provide financials is a big benefit.  Also, the minimum credit score of 680 is much less than what other types of financing require. Furthermore, you have the option to use a credit partner if you do not meet the minimum credit score.

Another huge plus is that this program can help build your business credit score, which increases the fundability of your business. This is because often the cards in the line report to the business credit reporting agencies.

How is The Credit Line Hybrid Different From the Scams

There are a number of differences between our program and the credit card stacking scams out there. First, you know exactly what is happening and how it works before you sign up for anything. We will never apply for credit cards without your knowledge.

Next, our program does not include inflating income in an effort to get higher limits. Finally, you are free to use the money how you choose.  We do not work with partners to provide funding for anything specific. We simply help you get the funding you need to grow your business the way you need to do it.

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

Top Tips to Avoid Credit Card Stacking Scams

First, if you are trying to purchase a product or service and they offer financing, ask the questions. Read the fine print, and make sure you know exactly where the funding is coming from. Also, always monitor your personal and business credit reports to ensure there are no unexpected accounts on them. 

In addition, work directly with a trusted company. Part of the problem with the Seed Capital fiasco was that the funding was for a specific service that the client could not afford to pay cash for.  They may not have even realized Seed Capital was involved at all. 

That means they never had a chance to research Seed on their own. When you go to the company directly, you can do your own research.  Looking at reviews and the Better Business Bureau can sometimes save you a lot of pain. 

When you work with Credit Suite directly, you not only get access to the funding, but we can help you find any other products or services that could help you grow your business even more.

Credit Card Stacking is a Legit Business Funding Option

Yet, you have to do it the right way. Don’t try to do it on your own.  Do your research and find a trusted company that can help. Always make sure you know what you are getting into.  

The post The True Story Behind Credit Card Stacking and Why It’s Not Always Bad appeared first on Credit Suite.