It’s Not Worth It: Here’s What 6 Organizations Have to Say About Buying Business Tradelines for Sale

You probably know why you need tradelines on your business credit reports. However, there is a right way and a wrong way to get them there. Adding tradelines is important, but you should definitely avoid business tradelines for sale. Buying tradelines can hurt more than it helps.

Buying Business Tradelines for Sale Isn’t The Shortcut it May Seem

Honestly, there are no shortcuts in life or business. Think about it. Inevitably when you try to cut corners to make things go faster, you miss something important. More times than not, it ends up costing more time and money than it would have if you had just done it the right way to begin with. This is as true about building business credit as it is anything else.

Still, some people try shortcuts anyway. The top three “shortcuts” to building business credit are:

Buying tradelines
CPNs (credit privacy/profile numbers) and
Buying shelf corporations

For many, buying tradelines seems like the easiest and least risky shortcut. However, these 6 organizations agree, it’s just not worth it.

#1 Federal Reserve

“The potential distortions in credit scores that piggybacking credit may introduce suggest that a reconsideration of existing regulations, industry practices, or both may be warranted to preserve the predictiveness of credit scoring models.”

Credit Where None is Due? Authorized User Account Status and “Piggybacking Credit”, Robert B. Avery, Kenneth P. Brevoort, Glenn B. Canner (Federal Reserve Board, March 5, 2010)

# 2 Dun & Bradstreet

According to a Former D&B Employee:

“Opening a business credit account with any company is free. If you are paying for it, you are being ripped off. When the company who sold that tradeline to you gets taken down, all of their clients will get punished, too, with a mound of debt and a cursed credit file that will keep you from getting more credit to be able to pay it off.”

Joy Greenwood, 10 Common Trade-Line Mistakes, June 5, 2015

# 3 The FBI

When commenting on a 2013 bust of a fraud ring, “A second kind of tradeline is the “authorized user” tradeline, where a credit card holder adds another, so-called “authorized user,” to a credit card account. This raises the credit score of the authorized user, who inherits some of the primary user’s credit history.

Some defendants created and sold fake lines of credit for false identities made up by other defendants. These fraudulent primary tradelines were then used to increase the credit limits on fraud cards, so that the defendants could reap even larger profits. Defendants used the authorized user tradelines to create new identities.”

#4 FICO

FICO’s opinion on piggybacking is obvious here: “A … shadier version of piggybacking has been promoted by some CROs who offer to “rent” to their credit-challenged customers the trade lines of established account holders, in an effort to boost their customers’ credit profiles and scores.”

#5 Equifax

Equifax: “… authorized user abuse occurs when low-risk primary card owners “rent” their tradelines with extensive credit histories, high credit limits and solid repayment profiles to others – most times, knowingly, to fraudsters.”

#6 Experian

Experian: “Buying tradelines may be viewed as deceptive by lenders and credit reporting agencies, and could even put you in danger of committing bank fraud.

Credit scores are designed to help lenders determine a borrower’s creditworthiness, and most use your credit scores and credit reports to determine whether to approve a credit application and what terms you qualify for.

If you pay money to improve your credit scores without doing any of the work or even getting a card to use, you could be falsely representing your creditworthiness to potential lenders.”

Buying Business Tradelines for Sale

So, what are business trade lines, and how does buying business tradelines for sale work? Legit business trade lines are lines of credit extended to businesses by vendors. A business gets goods or services and agrees to pay for them at a later date. Tradelines are often established between a business and a vendor, rather than a line of credit offered by a bank. They can help businesses build credit by rapidly building positive credit experiences.

There are many companies online which promise to sell ‘seasoned’ tradelines. If your company has poor or little credit, you can pay to have your business piggyback on the account of someone with well established, strong credit. This allows new business owners to seem more creditworthy than they really are. Sounds fishy right?

How Does Piggybacking a Tradeline Work?

A third party uses a creditworthy borrower’s accounts to improve their own credit. The borrower adds the third party as a user of his lines of credit. But, he or she does not actually provide the third party with credit cards or account numbers. The third party has no way to actually make charges against the account. As a result, that third party user never actually uses the credit.

The benefit to the third party is an improved credit rating. It appears they already have higher limit revolving accounts. In theory, showing you already have credit makes you more creditworthy for higher limit accounts. Some companies claim to be able to secure $100,000 – 250,000 credit lines once these accounts are reporting. Obviously, this buying of business tradelines for sale is dishonest.

A company offering the piggybacking service maintains a network of creditworthy ‘card holders’ or ‘vendors.’ They will add strangers to their accounts as users for a fee. A third party, looking to increase their credit score, contacts the company. Then, the company selects one of the business tradelines for sale to the client, and charges the client a fee per account.

It Works for Personal Credit, so What’s the Problem?

Now, it’s important to note that personal credit works differently than business credit in this area, and many other areas for that matter.

Consumer trades such as this are legitimate. A person with poor credit can use this strategy without issue. So, if you know someone with great credit, it is perfectly fine to ask if you can become an authorized user on their card. You never need to use the card, and it can still help to raise your personal credit scores.

But, in the business credit realm, things are much different. Consider what the following agencies have to say.

Lenders Know All About Business Tradelines for Sale

Lenders and CRAs know all the unethical methods out there. They know what to look for, and they are looking. For example, when they see a change in company ownership, or a new authorized user on a card, they dig deeper. Furthermore, sooner or later D&B will figure out you are using business tradelines for sale. If a tradeline sales company inquires into your credit report, D & B finds out.

Any time you buy a tradeline, the seller checks your credit. Of course they do, because they want to be sure they get paid. When this happens, here is what happens next:

D&B shuts down tradeline(s)
They red flag your entire profile, including legit trades alongside the illegitimate ones
You lose whatever time you think you gained by using business tradelines for sale
Plus, you’re out the cost of the tradelines

In addition, when a company has a reputation of being a tradeline seller, that company will be flagged as such. Any new inquiries by that flagged tradeline seller harms buyers, including older tradeline sales. There is no Statute of Limitations on this. That means, if you bought tradelines 50 years ago, D&B may still find out and it can still harm you.

Buying Business Tradelines for Sale is Not Worth It

Buying tradelines involves buying tradelines that belong to others and putting them on your credit report. While not technically illegal, it is dishonest. If a lender figures out you are doing it, you could be black balled. It isn’t worth it.

Still, adding tradelines to your business credit report is vital. You just have to do it the right way. Our Business Finance Suite helps you do just that. It walks you through the process step-by-step, so you get your own tradelines that you can actually use. Find out more today by getting a free Business Finance Assessment with a Credit Suite specialist.

The post It’s Not Worth It: Here’s What 6 Organizations Have to Say About Buying Business Tradelines for Sale appeared first on Credit Suite.

Best ways to save your phone’s photos before it’s too late

It’s best to back up your photos, so they’re safe and sound

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.

3 Surprising Reasons Why It’s So Important to Get Business Permits and Licenses

Business Licenses and Permits – Are They Really Necessary?

While not every company needs to have business licenses and permits, it’s still vitally important to check. Make sure because there are consequences to not having licensing.

Check out why business licenses and permits matter. And along the way, get specifics on licensure in North Carolina, Massachusetts, Florida, and Washington State.

Reason #1: Why Does a Business Need Licensing?

According to LegalZoom, “A business license is a government document that certifies a business is safe for the public. Exactly which kinds of licenses you require depends upon the kind of business you operate and where you operate it.”

Licensing is also a form of revenue for states, cities, and counties. But no matter how much profit a jurisdiction may get from providing licenses, licensure is still rooted in public safety.

Reason #2: Why Does a Business Need Permits?

According to Chron, “Business permits regulate safety, structure and appearance of the business community. They act as proof that your business follows certain laws and ordinances. Requirements vary by jurisdiction, and failure to comply often results in fines or even having your business shut down.”

Permits can be related to tax collections. They can also be related to zoning laws, which can be for public safety. For example, you probably can’t open a cattle feedlot or a chemical processing plant in a residential area

Applying for Variances

If you cannot, or do not want to, comply with a local ordinance, you can petition for a special permit called a variance. A variance essentially gives you permission to violate an ordinance. These are rarely granted and can be expensive due to legal fees. So make sure you need one before you request it.

Reason #3: Check Out What Happens if you Operate Without Business Licenses and Permits

So if a license is required, then get one. If you don’t, you could be forced to close. You may have to pay a fine. Your business could have to go through a probationary period before being allowed to reopen. The licensing authority (city, state, etc.) could refuse to grant you a license. Or your business could experience any combination of these.

If you don’t have a license, you could be sued for fraud. This is because it’s a misrepresentation if you open your doors without a license. After all, the public is reasonably expected to believe you have all necessary permits and licenses.

Your business reputation could take a tumble. Because customers may feel if you won’t follow the law, you won’t follow their directions, either. You could scare off prospects. As they might see your business as being fly by night.

So is it really worth it to not have licenses and permits? You should already know the answer to that.

Consider This: Licenses, Leases, Permits, and Registrations Are All on a Calendar

These all need renewal on a regular basis, so keep track of those dates. Keep a copy of all applications and forms in your business records. Make sure you follow all rules for displaying licenses and permits.

Most places require you to display the license prominently for your customers. Check to see if you need additional licenses before expanding your building, launching a new product, or offering a new service.

Consider This: Recordkeeping

When we talk about fundability, one of the areas we stress is keeping consistent records. Hence in addition to keeping track of renewal dates, you should also make sure all licenses, permits, etc. have the exact same business name, address, phone number, etc. And if any of these basics change, be sure to update all of these documents.

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

Which Types of Federal Business Licenses Do You Need?

If a federal agency regulates your business activities, you will need a federal license. According to the Small Business Administration, businesses in the following industries will need a federal license:

Agriculture
Alcoholic beverages
Aviation
Firearms, ammunition, and explosives
Fish and wildlife
Commercial fisheries

These industries are also included on the list of industries that must have federal licenses:

Maritime transportation
Mining and drilling
Nuclear energy
Radio and television broadcasting
Transportation and logistics

Which Types of Local Business Licenses Do You Need?

Local business licenses come from your state or city. They are determined by local laws. Federal licenses pertain to certain kinds of business activities. But a local business license means adhering to your state’s specific business regulations. To set up your business license, you often have to have a commercial address that must be a licensed business as well. You increase your chances of rejection if you use a non-licensed business as your address.

Which Types of State Business Licenses Do You Need?

States have various requirements. As a result, the rules for one will not necessarily apply to another. Here are a few example states to give you an idea of what’s needed, and where to get licensing.

Business Licenses and Permits in North Carolina

North Carolina does not have a generalized license to cover all bases. You’ll need to check your specific industry. The North Carolina Department of Commerce keeps the North Carolina Business & Occupational License Database. There are hundreds of business, occupational, and privilege licenses issued in North Carolina.

Some sample occupations that require licensing include:

Truck Driver School Recruiter
Asbestos Accreditation
Certified General Real Estate Appraiser
Kerosene Supplier

Business Licenses and Permits in North Carolina Cities Like Charlotte

Cities have their own licensing requirements. For example, in Charlotte, you will need to visit Charlotte Business Resources. The Licensing and Permitting page has a wealth of information on getting licenses not just in Charlotte, but also Mecklenburg County. The page answers basic questions on taxes and other topics of interests to business owners.

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

Business Licenses and Permits in Massachusetts

In the Bay State, the Division of Professional Licensure (“DPL”) is an agency within the Office of Consumer Affairs and Business Regulation.

Collectively, DPL boards and offices license and regulate over 150 trades and professions in Massachusetts.

From the Massachusetts government website page on the DPL, you’ll need to click on the board governing the appropriate industry to get more information on the licensing you’ll need.

Get a Business License in Mass.

There is also a topic page on the Massachusetts government website all about professional licenses and permits. From that page, you can learn about licensing requirements and laws governing basic professional categories such as:

Health care
The building trades
Cosmetology

Getting a Business License in Massachusetts Cities Like Boston

In the city of Boston, the city’s website has a section on small business development. The Licensing Board issues and regulates licenses for alcohol, food, and lodging in Boston. The Consumer Affairs and Licensing Division licenses entertainment for restaurants and nightclubs. When it comes to liquor licenses, in some instances you will have to meet with the Neighborhood Association before a Board can proceed.

Business Licenses and Permits in Florida

On the My Florida License website, you can click on the names of several industries to learn all about their licensing requirements. These industries include:

Electrical contractors
Harbor pilots
Certified public accountants (CPAs)

Get a Business License in Florida Cities

Many Florida cities have licensing requirements. For a list of Florida cities that links directly to their official websites, go to the Cities page at the State of Florida website. That website also has a Permits and Licenses page.

Business Licensing in Florida Cities Like Tampa

For example, the Tampa government website shows how to get construction permits in the city. Permits are required for, among other activities:

Tree removal
Adding or repairing/upgrading a pool or a spa
The interior finishing of new construction

Business Licenses and Permits in Florida Counties Like Hillsborough

Florida counties have their own licensing requirements. For a list of Florida counties that links directly to their official websites, go to the Counties page at the State of Florida website. On that page, you can choose a county by name.

For example, for licensing information in Hillsborough County, go to the county website’s Apply page, then choose the Businesses tab. There you will find links to permits for activities such as:

Fireworks displays
Special events
Doing construction, development, or utility work in the County’s Right-of-Way

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

Business Licenses and Permits in Washington State

On the Washington State government website, go to the Department of Revenue page, and then to Open a Business, then to Apply for a Business License. You will need to register with the Department of Revenue and get a business license if you meet any of the following conditions:

Your business requires city and state endorsements
You are doing business using a name other than your full name legal name
Or you plan to hire employees within the next 90 days
You sell a product or provide a service that requires the collection of sales tax

You will also need to register with the Department of Revenue and get a business license if you meet any of the following conditions:

Your gross income is $12,000 per year or more
Your business is required to pay taxes or fees to the Department of Revenue
Or you are a buyer or processor of specialty wood products
Your business meets Nexus threshold reporting requirement

Business License in Washington Cities

For city licensing, go to the Washington State government website and look under Manage a Business, then City License Endorsements. There is a list of many of the cities and larger towns in Washington. However, it does not include all cities and towns.

To be thorough, Google the name of the appropriate city or town if it isn’t listed. Check their government website directly, just to be sure.

Business License in WA State Cities Like Seattle-Tacoma (SeaTac)

For example, if you click on the SeaTac link, there is information on a general business license. The City of SeaTac requires a license for all businesses located within city limits or conducting business within city limits.

If you are not sure if you will do business within the city limits, contact the city directly before you apply. Costs depend on the total number of full-time equivalent employees at your business.

Business Licenses and Permits: Takeaways

Business licenses and permits can be easy to overlook in your initial excitement at getting your business off the ground. But don’t ignore them! Failing to properly license a business can result in fines and other penalties. It can also cost you in business from customers and prospects.

Always check state, county, and city/town websites when it comes to licensing. Or call the appropriate government offices to be sure your business is fully and properly licensed.

For more help with setting up a business and making it the best it can be, make sure to contact us. And find out just what our Business Credit Builder has to offer.

The post 3 Surprising Reasons Why It’s So Important to Get Business Permits and Licenses appeared first on Credit Suite.

3 Surprising Reasons Why It’s So Important to Get Business Permits and Licenses

Business Licenses and Permits – Are They Really Necessary? While not every company needs to have business licenses and permits, it’s still vitally important to check. Make sure because there are consequences to not having licensing. Check out why business licenses and permits matter. And along the way, get specifics on licensure in North Carolina, … Continue reading 3 Surprising Reasons Why It’s So Important to Get Business Permits and Licenses

It’s Time to Build Credit for Your Business

Did You Know You Can Build Credit for Your Business?

Yes, you really can build credit for your business.

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

Business Credit

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

Business Credit Benefits

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

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

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

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

Business Credit Details

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

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

Merchants are a big component of this process.

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

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

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

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

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

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

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

Licenses

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

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

Keep your business protected with our professional business credit monitoring.

Build Credit for Your Business and Work With the IRS

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

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

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

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

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

Starting to Build Credit for Your Business

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

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

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

Business Credit, Fundability, and Business Funding Applications

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

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

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

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

Build Credit for Your Business with Your Business Ownership Listings

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

Business Name and Address Uniformity

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

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

Industry Alignment

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

Your Company Domain

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

Keep your business protected with our professional business credit monitoring.

Your Email Address

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

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

Build Credit for Your Business with Records Consistency

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

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

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

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

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

Starter Vendor Credit

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

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

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

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

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

Details

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

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

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

Vendor Credit — It Helps

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

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

Fleet Credit

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

Keep your business protected with our professional business credit monitoring.

More Universal Cash Credit

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

These are commonly MasterCard credit cards.

Monitor Your Business Credit

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

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

Update Your Records

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

Fix Your Business Credit

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

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

Disputes

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

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

A Word about Business Credit Building

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

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

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

Build Credit for Your Business: Takeaways

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

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

It’s Like Free Money When You Stop Wasting Company Cash

How to Stop Wasting Company Funds – It’s Like Free Money Is it really free money? It may not be as glamorous as winning the lottery or venture capital money. It’s not as sexy as your content going viral. And it’s not as exciting as getting a shout out from major market influencers like Oprah … Continue reading It’s Like Free Money When You Stop Wasting Company Cash

It’s Like Free Money When You Stop Wasting Company Cash

How to Stop Wasting Company Funds – It’s Like Free Money

Is it really free money? It may not be as glamorous as winning the lottery or venture capital money. It’s not as sexy as your content going viral. And it’s not as exciting as getting a shout out from major market influencers like Oprah Winfrey and Elon Musk.

But it is often easy, and it is certainly anything that any company can do. It’s the free money you can get from cutting waste.

A Penny Saved is a Penny You Don’t Need to Borrow or Raise

Is your business wasting money? It probably is, in some way or another. Cutting waste should always be on your radar.

What are the Ripple Effects of Cutting Waste?

Save a dollar and you won’t need to:

Borrow a dollar and pay it back with interest
Try to raise a dollar via crowdfunding
Sell a dollar’s worth of your business to an angel investor or venture capitalist
Waste time you could be using to sell your goods or services

Get Free Money from Cutting Expenses

When tightening your company’s belt, look at the expenses going out first. There are several kinds of expenses any business can and should cut. Be creative when looking to cut expenses. Here are some kinds of expenses that you might not have thought of.

How to Save Money on Salaries

Employee salaries are the largest expense for many organizations. But did you know that there’s free money lurking in there?

But let’s make one thing perfectly clear. Don’t ask your employees to take a pay cut. Please, never do this! You’ll kill morale. But you should work to tap your employees’ full potential. Hence, pay attention to training.

Employees with more training may not be using that training. So, why aren’t they? Ask employees about their background and interests. There’s a chance that they could do more for you and get more motivated about working with your company in the long run. See inc.com/peter-cohan/first-90-days-13-totally-useless-expenses-your-company-is-wasting-money-on.html.

Stop Outsourcing!

Outsourcing is expensive! Some small businesses pay thousands of dollars to outsource projects. But your company may be able to save a considerable amount of cash, by taking some or all of those projects in-house.

Give your outsourced work to part- or full-time employees. After all, outsourcing work can make it hard to communicate clearly what you want done. This results in costly errors and delays. It is worth analyzing whether hiring a dedicated worker could pay for him or herself within a year.

Save Money with Better Hiring

Hiring the wrong person can be a very expensive proposition. Still, you need someone to do the work, and you don’t have forever to decide on who to hire. So make your job postings clear and only hire people experienced in what you need for them to do.

How can you hire better? Hire employees on a trial basis. This may be through working with a freelancing site like UpWork, or it may mean using a temp agency. In either of these scenarios if you must fail, at least you fail fast.

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

Start Improving the Average Performance of Your Workforce

Let the poor performers go. People who aren’t doing well tend to be unhappy anyway. You may be giving them the nudge they need to get something else. And make sure that all the workers staying on your payroll who do contribute are doing far more than the minimum required. If you can’t motivate your C players to act more like the superstars, cutting them from the payroll will give you the money you need to hire more A players.

Save Money on Tools

Software and tools can account for a huge proportion of a company’s expenses. But far too many businesses either buy tools they don’t need or buy tools that are bloated with features they don’t use. This can be software but also, literally, tools.

The truth is the so-called best tool on the market is often designed with large enterprises in mind. This means that when you’re small, it’s likely overkill. So it’s often better to purchase something that’s better suited to a business of your size. It may be a little less sexy, but it will save you a fair amount of money while still being equally as effective. See embroker.com/blog/business-expenses-startups-waste.

Location, Location, Location

Do you really need all that office space? Can employees share desks and work from home some of the time? Can some employees work from home all of the time? WFH also opens up hiring to other parts of the globe, where potential hires might be okay with less money.

Okay, so maybe you do need office space. But does it have to be in the most expensive part of town? Pay attention to the end date of your lease and start looking for cheaper digs before you’re under the gun.

And if you find less expensive office space elsewhere, tell your current landlord when it’s time to renew. If your business has been a good tenant, they might work to keep you.

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

Office Issues

Do you cater all your meetings? Do you really have to? If you must offer refreshments, why not handle some of them in-house? This doesn’t mean your employees start cooking. But it can mean a better coffee maker or better coffee to brew in it.

Energy Efficiency FTW

Do you have to pay utilities? Can you choose your own appliances? An energy efficient refrigerator will make a difference. So will using energy efficient fluorescent lighting. And just like in your house, turn off the lights when leaving a room.

Can You Imagine How Postage is Costing You Free Money?

Do you use a postage meter? It might not seem like a lot, but paying the exact amount for postage, rather than 5 cents more every time, will add up in the long run.

Would You Like to Save on Business Travel?

We all know about meetings that should have been emails. But they’re not so bad if your meeting is held remotely or just down the hall. Do you really have to be in the southern office? Particularly in the age of Covid-19, less travel is safer anyway.

Business Expenses

Does your business have a documented expense policy? Or can anyone claim pretty much anything at any time? Traveling employees might help themselves to the minibar or rent movies from the front desk, but your business doesn’t have to pay for such things.

Why and What Wasteful Advertising and Marketing is Costing You

Marketing can be trying new ideas to see if they work. That’s okay. But if you already know, then you should stop experimenting so much!

Like the best goals, your marketing and advertising have got to be measurable. Measuring helps you realize a lot more quickly if a campaign is working, or not. See nav.com/blog/4-money-leaks-that-could-be-hurting-your-bottom-line-658859.

Revealed… Saving on Miscellaneous Expenses

When you go grocery shopping, there are always small things at the checkout. They’re often inexpensive. So people buy them on impulse, even if they weren’t on the shopping list. But those packs of gum can add up over time.

In the same way, your little expenses here and there can add up. They can really get away from you if you just open up a petty cash drawer to buy them. So keep track of these expenses and review them every month or so. Determine if they’re working for you.

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

End Poor Time Management and Get Free Money

How long are your meetings? Are they all necessary? Really? A chat program like Slack might make some of those meetings unnecessary, or at least shorter.

Poor Time Management and Commuting

Commuting can also be exceptionally time-consuming. It can also be tiring, making it harder for employees to get going in the morning. Can some or even all of your employees work from home at least one day per week? This is also a way to enhance employee morale.

Free Money, Fixing Poor Time Management, and Enhancing Employee Morale – Yes, There’s a Connection

Consider informally monitoring the weather and telling your employees to work from home when commuting conditions will be truly awful. These are serious snowfalls or blizzards, or heavy rain from the remnants of hurricanes, not brief showers. Not only are commutes longer and more dangerous, but employees are also more likely to be late.

Get Some Free Money with a Proper Financial Professional

A solid accountant will help prevent costly errors. They will also be able to calculate and pay your business taxes correctly the first time. If you, the owner, are still preparing these documents, it’s probably not a good use of your time. If you currently can’t afford an accountant, at least get good professional accounting software.

Check Your Larger Bills Carefully

If you’re just getting a one-page bill from an outside counsel law firm, or other expensive service your business must have, ask for it to be itemized. Sometimes there are billing errors and this can be the only time they’re caught.

Get Free Money from No Longer Wasting It: Takeaways

Is your business wasting money? Stop the bleeding and hire more carefully. Look into your expenses more closely. Measure your advertising to see if it’s working. Keep an eye on ways to save time. A professional accountant is worth the expense. Audit the larger bills your business has to pay, and request itemization, to be sure you’re only being charged for what you actually owe.

The post It’s Like Free Money When You Stop Wasting Company Cash appeared first on Credit Suite.

Why It’s Risky to Change Your Business Name

Are you feeling inspired to change the name of your business? It’s understandable. Sometimes something just strikes you as perfect and you feel you need to take action right away. However, you might want to hold off on that for a minute. Don’t change your business name until you understand how risky it is.

STOP! Don’t Change Your Business Name Until You Read This

Even if the name of your business is super boring right now and you have an idea for the catchiest name ever, it is a big risk to change your business name. The name of your business is incredibly far reaching. It is on all insurances, licenses, bank accounts, credit accounts, and it is tied to your EIN if you have one.

Imagine, every legal document and identification number that relates to your business has your business name on it. Furthermore, if you have a web presence, your social media accounts and website connect to that name. If your URL has your business name in it, that complicates things even further.

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

Why You Can’t Just Change It Everywhere

Of course, you’re thinking you’ll just change it in all the places and you’ll be good. That’s great, but what if you forget something random from a long time ago? What if your business name is on a document you forgot even exists? You may not think it matters much, but it does. Your business name can affect almost every aspect of fundability. Do you know why it’s risky to change your business name? Understanding exactly what fundability is and what affects it can go a long way toward helping you understand.

What is Fundability

Fundability is the ability of your business to get funding. When lenders look at funding your business, they consider if it is a good idea to make the loan. What do they look at to make that determination? It’s a lot more than you may think, and I guarantee that it reaches further than you realize.

The first aspects of fundability have to do with how your business is set up.

Consistent, Separate Contact Information

This is your business phone number and address that is separate from your personal phone number and address. That may not mean you have a separate phone line, or even a separate location however.

Honestly, you can get a business phone number and fax number pretty easily that will work over the internet instead of phone lines. Then, the phone number will forward to any phone you want it too so you can simply use your personal cell phone or landline. Whenever someone calls your business number it will ring straight to you.

You can use a virtual office for a separate business address. This isn’t what you may think. A virtual office is a business that offers a physical address for a fee, and sometimes they even offer mail service and live receptionist services. In addition, there are some that offer meeting spaces for those times you may need to meet a client or customer in person.

But imagine if your phone number and address are listed under one name, and then you change the business name. It is complex and time consuming to change your information everywhere. Something is almost certain to get missed, and customers are going to be confused.

EIN

This is an identifying number for your business that works in a way similar to how your SSN works for you personally. You can get one for free from the IRS. However, if you change your business name, you’ll have to make sure you have an EIN that is attached to the new name. Furthermore, you’ll have to ensure all the accounts that you have using that EIN are changed to reflect your new name.

Incorporate

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

Which option you choose does not matter as much for fundability as it does for your budget and needs for liability protection. It’s best to talk to your attorney or a tax professional about that issue. However, when you incorporate you are going to lose the time in business that you already have. You essentially become a new entity. Basically, you have to start over. You’ll even lose any positive payment history you may have accumulated.

This is why it is important to incorporate as soon as possible. Is necessary for fundability and for building business credit, but so is time in business. The longer you have been in business the more fundable you appear to be in the eyes of lenders. That starts on the date of incorporation, regardless of when you actually started doing business.

If you want to change your business name and you are not yet incorporated, then when you do incorporate is the best time to make it happen. Do it sooner rather than later.

Business Bank Account

You should already have a separate bank account for your business transactions. If you don’t, you need to make that happen now. There are a few reasons for this. First, it will help you keep track of business finances. It will also help you keep them separate from personal finances for tax purposes.

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

Now, here is how your business name, and the risk when you change your business name, comes into play. This account has to be in your business name. If you change that name, you’ll have to go through the hassle of changing the name on that account. Not only that, but if you have any drafts coming out, you will have to make sure information is updated with those accounts. Otherwise, you could end up with unpaid bills.

Licenses

For a business to be legitimate it has to have all of the necessary licenses it needs to run. If it doesn’t, warning signals are going blare. Do you know what else will set off some major red flags? If your business name and the name on your license do not match.

Business Website

I am sure you are wondering how a business website can affect your ability to get funding. Think about it. These days, if you don’t have a website you may as well not even exist. Yet, having a poorly put together website can be even worse. It is the first impression you make on many, and if it appears to be unprofessional or confusing it will not bode well for you with consumers or potential lenders.

Spending the time and money necessary to ensure your website is professionally designed and works well is vital. Paying for hosting is important too. Don’t use a free hosting service. Also, your business needs a dedicated business email address. It should have the same URL as your Website.

Now, imagine your URL and email are tied to your business name. If you change that, you have to redesign your whole site to reflect the new name. Changing those things takes time and money. That’s not even to mention how confused people will be when they do an internet search for your business using a different name, or when they get to your website and see a name they aren’t expecting.

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

Business Credit Reports

These are reports, like your personal credit reports, that detail the credit history of your business. It is a tool to help lenders determine how credit worthy your business is.

Where do business credit reports come from? There are a lot of different places, but the main ones are Dun & Bradstreet, Experian, Equifax, and FICO SBSS.

Lenders see this report. They rely on it heavily when it comes to making lending decisions. Even if your business credit is stellar, seeing your business listed under a bunch of different names can cause a problem. They start worrying about things like fraud, and that can cause an automatic denial.

Even worse, if things aren’t taken care of properly, you could end up with accounts reporting to two different credit reports, wrong accounts on wrong reports, or some other confusing credit report fiasco simply from choosing to change your business name.

Other Business Data Agencies

In addition to the business credit reporting agencies that directly calculate and issue credit reports, there are other business data agencies that affect those reports indirectly. Two examples of this are LexisNexis and The Small Business Finance Exchange. These two agencies gather data from a variety of sources, including public records. This means they could even have access to information relating to automobile accidents and liens. While you may not be able to access or change the data the agencies have on your business, you can ensure that any new information they receive is positive. Enough positive information can help counteract any negative information from the past.

The same issues apply. If your business name doesn’t match across the board, lenders could get uncomfortable.

Identification Numbers

In addition to the EIN, there are identifying numbers that go along with your business credit reports. Some of them are simply assigned by the agency, like the Experian BIN. Some, like a D-U-N-S number, you have to apply for, of course using your business name.

Here’s another place where you have to follow through if you change your business name. You have to make sure your new name isconnected to your old D&B number, or get a new number. It can become very complicated.

Then other numbers, like your BIN from Experian, will need to be updated as well.

Business Credit History

Your credit history has everything to do with everything related to your credit score, which is a huge factor in the fundability of your business.

Your credit history consists of a number of things including:

How many accounts are reporting payments?
How long have you had each account?
What type of accounts are they?
How much credit are you using on each account versus how much is available?
Are you making your payments on these accounts consistently on-time?

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

The more accounts you have reporting on-time payments, the stronger your credit score will be. I’ve already touched on this above. When you change your business name, this information can become very confusing unless you handle things very carefully. The less confusing things are for lenders, the better.

Is it Really that Risky to Change Your Business Name? Yes!

When you change your business name, you start a sort of domino effect. The problem is, the dominos weave in and out of a spider web formation that reaches further than you can probably imagine. If just one is out of place the whole thing can fall. Lenders hone in on discrepancies, and sometimes the result is simply denial. No questions asked, they just deny the loan based on too many inconsistencies.

The only really good time to change your business name is when you incorporate. Still, even then it is best not to. Consistency is key, and trying to backtrack and make changes everywhere they need to be made costs time and money. Trying to explain gaps and changes on a report and how everything ties together is even riskier. The more complicated things are, and the harder a lender has to work to see that you are fundable, the less likely approval becomes.

To make a long story short, you need to carefully weigh any benefit you think you may gain from changing your business name against all the costs. While there could be a few very specific situations where this isn’t the case, as a general rule the benefit doesn’t outweigh the cost.

The post Why It’s Risky to Change Your Business Name appeared first on Credit Suite.

Metafrax, Controlled by Seyfeddin Roustamov, Strengthens its…

Metafrax, Controlled by Seyfeddin Roustamov, Strengthens its Positions on the market of East Asia Trading business need to enhance physical existence of Metafrax Group of Companies in East Asia, particularly in Korea.Newly produced trading business will certainly do initial distributions to Korea in April. We think that for PJSC Metafrax this joint endeavor is a …

The post Metafrax, Controlled by Seyfeddin Roustamov, Strengthens its… first appeared on Online Web Store Site.

The post Metafrax, Controlled by Seyfeddin Roustamov, Strengthens its… appeared first on ROI Credit Builders.