Check Out 5 Great Recession Vendor Accounts To Build Your Business Credit

The novel coronavirus has changed our economy. And it continues to do so. You may be thinking you cannot qualify for any great recession vendor accounts to build your business credit. But you can! Let us show you how to get the credit and cash your business needs – now, more than ever.

Check Out 5 Great Recession Vendor Accounts to Build Your Business Credit

Are you looking for 5 great recession vendor accounts that build your business credit? We’ve got them right here. Get the easiest business credit card!

When you are first starting to build business credit, your first step should be vendor or trade credit. You want to get into good credit habits. So this is everything from not borrowing too much, to paying your debts back on time. And it includes staying on good terms with your sources of credit.

You will need to start a business credit profile and score with what are called starter vendors. Starter vendors are ones who will give your small business initial credit. So they will do so even if your company has no credit, no score, or no trade lines.

Note that most stores like Staples will not give you initial starter credit, so don’t even try applying with them.

Here are 5 great recession business credit vendors that build your business credit. You can get a starter business credit card. This is the vendor credit tier, and these are our top 5 business credit cards for new businesses.

Learn more here and weather any recession. Get started toward getting up to 7 vendors that build your business credit.

Great Recession Vendor Accounts that Build Your Business Credit: 1. Uline

You can find Uline’s website here. They sell shipping, packing and industrial supplies, and they report to Dun & Bradstreet and Experian. You must have a D-U-N-S number and an EIN before starting with them. They will ask for your business bank information. Your business address must be uniform everywhere. You need for an order to be $50 or more before they’ll report it. Your first few orders might need to be prepaid initially so your company can get approved for Net 30 terms.

Qualifying

You need the following to qualify:

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

Apply with Them

Here’s how to apply with them:

Add an item to your shopping cart
Go to checkout
Select to Open an Account
Select to be invoiced

Great Recession Vendor Accounts that Build Your Business Credit: 2. Crown Office Supplies

Crown Office Supplies is an additional true starter vendor. They sell a variety of office supplies and take helping clients seriously. They state, “just starting your business, or maybe have an existing business, but you have a question regarding office supplies… we are here to help!” And they report to Dun and Bradstreet, Experian, and Equifax.

There is a $99.00 yearly fee, though they do report that fee to the business credit reporting bureaus. For other purchases to report, the purchase must be at least $30.00. Terms are Net 30.

Qualifying

Here’s how to qualify:Your business entity must be in good standing with the applicable Secretary of State
You must have an EIN and a D-U-N-S number
Business address (it has to match everywhere)
Business license (if applicable)A business bank account
Corporation must be at least 60 days old
Membership fee is $99 per year upon approval

Apply with Them

Apply online.

Great Recession Vendor Accounts that Build Your Business Credit: 3. Grainger Industrial Supply

You can find Grainger Industrial Supply here. They sell hardware, power tools, pumps and more. They also do fleet maintenance. And they report to Dun & Bradstreet.

Qualifying

To qualify, you need the following:

A business license (if applicable)
An EIN number
A business address matching everywhere
A business bank account
A DUNS number from Dun & Bradstreet
Business entity in good standing with the applicable Secretary of State

If your business doesn’t have an established credit, they will require additional documents like accounts payable, income statement, balance sheets, and the like.

Apply with Them

Apply online or over the phone.

Great Recession Vendor Accounts that Build Your Business Credit: 4. Supply Works

Supply Works is a great recession vendor. Visit them at: www.supplyworks.com. They are a part of the Home Depot. They offer integrated facility management solutions. Virtual addresses are not accepted. They report to Experian. Terms are Net 30.

Qualifying

To qualify, you need to have:

An entity in good standing with Secretary of State
EIN number with IRS
Business address (it must match everywhere
D-U-N-S number
Business license (if applicable)
A business bank account

Apply with Them

Apply online or over the phone.

Find out why so many companies are using this to weather any recession and improve their business credit – and check out even more vendors (7!) to help you build business credit.

Great Recession Vendor Accounts that Build Your Business Credit: 5. Strategic Network Solutions

Check out Strategic Network Solutions. Visit them at: https://stntsol.com. They offer technology training and tech support. A credit limit will start at $1000 for new businesses. It increases by an $500 increment if balances are paid in full and on time. They report to Experian and Credit Safe.

Qualifying

In order to qualify for business credit with Strategic Network solutions, you will need the following:

An EIN
To have your business entity squared away (corporation, partnership, LLC, etc.) and in good standing with the applicable Secretary of State
Business address (matching everywhere)
Business license (if applicable)
A D-U-N-S number
A business bank account

Apply with Them

Apply online.

Great Recession Vendor Accounts that Build Your Business Credit: Bonus: Marathon

Marathon Petroleum Company provides transportation fuels, asphalt, and specialty products throughout the United States. Visit them at: www.marathonbrand.com. Their comprehensive product line supports commercial, industrial, and retail operations. They report to: D&B, Experian, and Equifax. Terms are Net 22.

You can give a $500 deposit instead of using a personal guarantee if you have been in business for less than a year.

Qualifying

To qualify, you need:

An EIN
To have your business entity squared away and in good standing with the applicable Secretary of State
Business address (matching everywhere)
Business license (if applicable)
A D-U-N-S number
A business bank account

Apply with Them

Apply online.

Building Business Credit – Going Beyond 5 Great Recession Vendor Accounts That Build Your Business Credit

Getting vendor accounts for business credit means that you are on your way to getting good business credit. Get three or more vendor accounts. You want them all to be reporting with at least one bigger business credit bureau. And then you can start trying to get store credit.

Retail Credit

Once there are three or more vendor trade accounts reporting to at least one of the CRAs, then move onto revolving store credit. These are businesses such as Office Depot and Staples. These companies have even more of the goods you need.

You will always have to use your Social Security Number and date of birth for verification purposes. But use the small business’s EIN on these credit applications when it comes to credit check services small business.

Fleet Credit

Are there more accounts reporting? Then move to fleet credit. These are service providers such as BP and Conoco. Use this credit to buy, fix, and take care of vehicles.

Use your Social Security Number and date of birth for verification purposes. But make certain to apply using the company’s EIN for credit checks.

Cash Credit

Have you been sensibly managing the credit you’ve gotten up to this point? Then progress to cash credit. These are service providers like Visa and MasterCard.

Use your Social Security Number and date of birth for verification purposes. And apply using the company’s EIN for credit checks.

These are typically MasterCard credit cards. If you have even more trade accounts reporting, then these are attainable.

If it were all left up to you, how would you improve weathering any recession and working with 7 vendors to help you build business credit?

Monitor Your Business Credit

Know what is happening with your credit. Make sure it is being reported and deal with any inaccuracies ASAP. Get in the habit of taking a look at credit reports; so dig into the details, and not just the scores.

So we can help you monitor business credit at Experian and D&B for 90% less than it would cost you at the business credit reporting agencies.

Update The Details

Update the details if there are mistakes or the information is incomplete. So at D&B, you can do this at: https://iupdate.dnb.com/iUpdate/viewiUpdateHome.htm.

And at Experian, go to: http://www.experian.com/small-business/business-credit-information.jsp.

Finally, for Equifax, go to: http://www.equifax.com/business/small-business.

Challenging Mistakes

What’s all this monitoring for? So it’s to challenge any errors in your records. Errors in your credit report(s) can be fixed. But the CRAs normally want you to dispute in a particular way.

Get your PAYDEX report for DNB small business at: http://www.dnb.com/about-us/our-data.html.

You can get your company’s Experian report at: http://www.businesscreditfacts.com/pdp.aspx?pg=SearchForm.

And get your Equifax business credit report at: http://www.equifax.com/business/credit-information.

Disputes

Disputing credit report errors typically means you send a paper letter with copies of any evidence of payment with it. So these are documents like receipts and cancelled checks. But never mail the originals. Always send copies and keep the original copies.

Disputing credit report errors also means you precisely spell out any charges you dispute. Make your dispute letter as understandable as possible. Be specific about the concerns with your report. Use certified mail so that you will have proof that you sent in your dispute.

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

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

And D&B’s PAYDEX Customer Service telephone number is here: https://www.dandb.com/glossary/paydex/, to help you with disputes. It’s the only way they’ll let you dispute a DNB.com credit report.

Takeaways for 5 Great Recession Vendor Accounts That Build Your Business Credit

Always use credit responsibly! Don’t borrow more than what you can pay off. So monitor balances and deadlines for payments. Paying off punctually and in full will do more to increase business credit scores than nearly anything else.

Establishing small business credit pays. Great business credit scores help a company get loans. Your lender knows the company can pay its financial obligations. Because they know the small business is authentic. The company’s EIN links to high scores and loan providers won’t feel the need to require a personal guarantee.

And soon you’ll be able to move onto the top ten business credit cards – and beyond! Because no matter how it feels right now, the COVID-19 situation and recession will not last forever.

Discover this new way to weather any recession and find 7 (!) vendors to help you build business credit.

The post Check Out 5 Great Recession Vendor Accounts To Build Your Business Credit appeared first on Credit Suite.

3 Ways to Fix Business Credit in a Recession

Learn How to Fix Business Credit

Do you need to repair your business credit? Is your business credit score nothing to write home about? Was it good once but now, not so much? Here are three easy and effective ways to fix business credit and get back on track.

Recession Period Funding

The number of American financial institutions as well as thrifts has been decreasing progressively for 25 years. This is coming from consolidation in the marketplace in addition to deregulation in the 1990s, decreasing obstacles to interstate banking. See: https://www.fundera.com/blog/happened-americas-small-businesses-financial-crisis-six-years-start-crisis-look-back-10-charts

Assets concentrated in ever‐larger financial institutions is problematic for small business proprietors. Big financial institutions are much less likely to make small loans. Economic recessions mean financial institutions come to be a lot more mindful with financing. Thankfully, business credit does not rely on financial institutions.

Fix Business Credit: 1 – Make Sure Your Credit Scores Are Accurate

Perhaps the easiest way to repair business credit is to assure that all of the reporting on it is correct and complete. This can help you locate feasible issues and stay informed on your business credit profile. So the first thing you want to do is, request your reports.

Business Credit Reporting Agencies

FICO SBSS

FICO’s SBSS (Small Business Scoring Service) Score will be generated when you apply for a loan. The lender will send your company’s documents and information to FICO. Then FICO will collect more data from the credit reporting agencies (Equifax, Dun & Bradstreet, and Experian).

Dun & Bradstreet’s PAYDEX

A PAYDEX Score works as Dun & Bradstreet’s dollar-weighted numerical rating of how your company has paid the bills during the last 12 months. Get your PAYDEX report here and you can contact their Customer Service department here.

Equifax

Order your business’s Equifax report here.

Experian

Order your company’s Experian report here.

Monitor Your Business Credit

Know what is happening with your credit. Make certain it is being reported and attend to any errors as soon as possible. Get in the habit of checking credit reports and digging into the details, and not just the scores.

We can help you monitor business credit at Experian and D&B for 90% less.

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

Update Your Information

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

Fix Business Credit

So, what’s all this monitoring for? It’s to dispute any mistakes in your records. Errors in your credit report(s) can be taken care of. But the CRAs normally 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 errors generally means you send a paper letter with copies of any proofs of payment with it. These are documents like receipts and cancelled checks. Never mail the originals. Always mail copies and retain the originals.

Fixing credit report mistakes also means you specifically spell out any charges you challenge. Make your dispute letter as crystal clear as possible. Be specific about the problems with your report. Use certified mail so that you will have proof that you mailed in your dispute.

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

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

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

Disputing Charges with Your Creditors

Much like you disputed the charges to the reporting agency, you may also need to dispute them to the creditor itself. Again, you will need to make your case in writing and enclose copies of any proof of payment. Be specific about what you are disputing.

Fix Business Credit: 2- Understand Your Scores

Understanding your scores is a great way to start to fix business credit. This way, you spend your time on activities which are most likely to help you. That is, you can get the best bang for your buck. Even in a recession, fixing business credit scores is easier if you understand your scores in the first place.

Dun & Bradstreet’s PAYDEX Business Credit Score

A PAYDEX Score from Dun & Bradstreet ranges from 0 to 100. This score has a basis in payment information which is on report to the agency. Or it is on report to data-gathering firms partnering with the CRA. https://creditreports.dnb.com/m/business-glossary/paydex-score.html

D & B uses this data, along with a credit score and Financial Stress Score, so as to advise just how much credit a lending institution should extend to your company.

Getting a PAYDEX Score

To get a PAYDEX score, you must file for a D-U-N-S number by using Dun & Bradstreet’s site. The number is at no cost. Plus the CRA will need to have reports of your payments with four or more merchants.

Your firm’s PAYDEX score reveals if your payments are usually made promptly or in advance of schedule. As you might expect, a higher number is better.

PAYDEX Score Details

The scores break down as follows:

80 – 100: A low risk of late payments
50 – 79: A medium risk of late payments
0 – 49: A high risk of late payments

D&B Business Credit Scores

Your company’s credit score ranges from 1 to 5. 1 is the best score. This matches your firm with other companies with similar payment histories. The score demonstrates just how usually those business often tend to pay immediately.

This information can actually assist loan providers to acknowledge your business’s standing. But it does not really reflect all of the payment documents from your business.

Financial Stress Score

The Financial Stress Score also runs from 1 to 5. It matches your company with various other business sharing comparable financial and business characteristics.

These resemblances are in areas such as size or amount of time in business. This score shows how often those businesses have a tendency to pay on schedule. As before, 1 is the very best score. This score is a more thorough examination of the business landscape, versus an evaluation of your company’s actual payment history.

An awesome PAYDEX score for your business is 80 – 100.

Experian Credit Scores

Experian’s scoring system is called Intelliscore Plus. http://www.experian.com/business-information/credit-risk-management.html

What is the Intelliscore Plus Credit Score?

The Intelliscore Plus credit score is a statistically based credit-risk analysis. The key function of Intelliscore Plus is to aid companies, investors, and possible future loan providers make wise judgments about who they should or should not do business with.

Like an auto dealer uses a consumer’s FICO score to quickly figure out just how much of a credit risk a potential customer might be, the Intelliscore Plus credit score can provide understanding on just how much of a credit risk a company or business owner may be.

Intelliscore Plus Credit Score Range

The Intelliscore ratings vary from 1 to 100. So the higher your rating, the lower your risk class. The chart below details each Intelliscore Plus credit score range as well as its associated meaning.

Score Range/Risk Class

76 – 100 Low
51 – 752 Low – Medium
26 – 503 Medium
11 – 254 High – Medium
1 – 105 High

Computing an Intelliscore Plus Credit Score

In the credit world, Intelliscore Plus is considered one of the most trusted tools in successfully forecasting risk. Among the ways Intelliscore Plus maintains this claim to fame is by acknowledging the major variables that reveal if a firm is likely to pay their debts.

Though there are over 800 industrial and owner variables constituting an Intelliscore Plus credit score, the variables can be broken down into these essential factors:

Payment History

The bureaus call this recency yet in the real world, it’s nothing more than your current payment status. This includes the number of times your accounts become delinquent, the number of accounts that are currently overdue, and your overall trade balance.

Frequency

Just like payment history, frequency accounts for the quantity of times your accounts have been sent out to collections, the amount of liens as well as judgments you may have, and any bankruptcies connecting with your business or personal accounts.

Frequency can likewise consist of information associating with your payment patterns. Were you regularly slow or late with payment? Did you start paying expenses late, yet over time, quit doing so? These elements will certainly all be considered.

Monetary

This particular aspect focuses on exactly how you use credit. As an example, just how much of your readily available credit is presently in operation? Do you have a high ratio of overdue balance in contrast with your credit limits?

If you will start a company or are fairly new to this game, the listing above may seem a bit overwhelming. If you haven’t begun or do not have a lengthy history of business-based deals, exactly how will Intelliscore Plus rate you?

Intelliscore Plus handles these scenarios by using a blended model to develop your score. This suggests that they consider your personal credit score when determining your business’s credit score.

Find out why so many companies are using our proven methods to improve their business credit scores, even during a recession.

Equifax Business Credit Scores

The Equifax Credit Risk Score comes from a model which they use to place specific risks. Equifax uses these information in its computations, consisting of the depth of the credit information Experian can get the length of your small business’s credit history, as well as your business’s payment delinquency history. http://www.equifax.com/business/equifax-risk-score

http://www.equifax.com/assets/USCIS/efx-00178_efx_risk_score.pdf

http://www.equifax.com/assets/USCIS/efx-00164-9-13_efx_bni.pdf

Equifax then segments some 5 different scorecards with each other, by using statistical analysis. In order to improve their accuracy, Equifax recommends combining their Credit Risk Score with their proprietary Equifax Bankruptcy Navigator Index.

The Bankruptcy Navigator Index helps forecast the likelihood of your company going bankrupt in the next 24 months. Equifax bases its predictive model on over 270 million separate accounts.

Equifax shows three separate business determinations on its commercial credit reports. These are the Equifax Payment Index, your company’s Credit Risk Score, and its Business Failure Score.

Equifax Payment Index

Comparable to the PAYDEX rating, Equifax’s Payment Index, which has its measurement on a range of 100, demonstrates how many of your company’s payments were made punctually. These consist of both data from credit companies and vendors.

However it’s not implied to anticipate future behavior. That is what the other two ratings are for.

Equifax Credit Risk Score

Equifax’s Credit Risk Score assesses how likely it is your business will come to be drastically delinquent on payments. Scores range from 101 to 992, and they review:

Available credit limit on revolving credit accounts, e. g. credit cards
Your business’s size
Evidence of any type of non-financial transactions (e. g. vendor billings) which are delinquent or were on charge off for two or more billing cycles
Length of time since the opening of the earliest financial account

Find out why so many companies are using our proven methods to improve their business credit scores, even during a recession.

Equifax Business Failure Score

Finally, Equifax’s Business Failure Score takes a look at the risk of your small business closing. It ranges from 1,000 to 1,600, reviewing these aspects:

Total balance to total current credit limit average utilization in the previous three months
How much time since the opening of the oldest financial account
Your company’s worst payment status on all trades in the previous 24 months
Documentation of any non-financial transactions (e. g. vendor billings) which are overdue or have gotten on cost off for two or more billing cycles.

Equifax Scoring Analysis

For the credit risk as well as business failure scores, a rating of 0 means bankruptcy.

An outstanding Equifax score for your firm is as follows:

Payment Index 0 – 10
Credit Score 892 – 992
Business Failure Score 1400 – 1600

FICO Business Credit Scores

FICO uses its SBSS (Small Business Scoring Service) Score to incorporate consumer bureau, monetary, application, and business bureau information. FICO then validates their SBSS models for purchases such as Credit line transactions, Term Loans, and Commercial Card obligations which go up to $1 million. Their idea is to evaluate how your business repays all kinds of loans. http://www.fico.com/en/node/8140?file=6045

Business credit providers make use of the FICO SBSS score as a device to make a decision whether they should authorize a loan to your small business at all.

The SBA employs this score as well, to authorize or approve company loans. It has a basis in your company and consumer credit history and not simply your company’s financial health.

The score factors in the examination of the risks inherent in your company’s credit applications. With SBSS, lending institutions make their determinations in a matter of hours, as opposed to days. Lenders are more confident in their lending judgments, and your business gets swifter decisions on your loan applications.

The SBA’s Participation

The FICO Small Business Score or SBSS score is the main figure that the SBA considers while establishing to approve a loan, especially when it involves the SBA’s 7(a) loans.

Computing a FICO SBSS Score

The FICO SBSS Score reveals the likelihood or possibility of you, the candidate, covering your month-to-month bills promptly. The score runs from 0 to 300. A higher score means reduced risks and typically creates more favorable credit terms. The score comes from your company and personal history of credit use along with your business’s financial data. Variables also involve your company’s age, as well as its years or complete time in business.

As of 2014, all SBA 7(a) loans must go through a business credit score pre-screen, as well as for SBA loans, you might perhaps not get an approval if you had a score less than 140. However the cutoff was generally set to 160, and frequently, a score under 160 meant a rejection. A lot of lending institutions will only approve scores above 160 or 180, to lend as much as $1 million. However a score lower than 160 or 180 can still qualify you for a smaller sized loan.

The formula for the FICO SBSS Score is as follows:

The last year of PAYDEX scores from Dun & Bradstreet
Amounts and types of any judgements against your firm
The amounts and kinds of any liens against your business’s real or personal property.
Your company’s available resources
Your company’s profit
And other, less distinct monetary information

If you have no record of company credit and had a small or quick time in your business, then the possible highest FICO SBSS score you can perhaps expect is 140.

Find out why so many companies are using our proven methods to improve their business credit scores, even during a recession.

Usage and Sorts of SBSS Model Lenders

A FICO SBSS rating includes the choice to opt for particular models which are market-specific for enhanced and much better decision making. For instance, one model is an agricultural leasing and lending model. Another model was made especially for Canada. Additionally, the insights of the SBSS score provide support for the SBRI (Small Business Risk Insight, from Dun & Bradstreet) and the SBFE (Small Business Financial Exchange) data databases.

Confirming the SBSS models is necessary for credit lines, commercial cards, as well as term loans of as much as one million dollars. If you are requesting one million dollars or less from bank financing, then there are chances that your SBSS score will be under review.

The Kind of Information in the Score

The SBSS offers the credit issuers of businesses various information blends to guarantee that they can evaluate your company’s credit risks. For instance, a particular issuer of credit can choose only to examine a principle proprietor’s application information, or the credit provider can select to include one or multiple business bureaus’ data.

Or the credit issuer can only decide to prioritize one aspect over another. This intelligent score originates from various business bureaus on an automated basis, in any type of order or whatever priority the issuer of the credit likes. For that reason, if the loan provider selects the score of Dun & Bradstreet’s PAYDEX as its default, the SBSS will pull that set of information.

SBSS Credit Offer Index: Exactly How It Works and Why It Is Important

The Credit Index is an element of the FICO SBSS Credit Score for your business, made to help credit issuers understand your capacity. It works as the standards against all the businesses with similar profiles.

The SBSS Credit Offer Index includes economic application info, business credit bureau documents, and credit bureau information for consumer. It gives a percentile ranking of the present versus other smaller sized businesses with identical or comparable attributes and total requested money from all those companies.

The Updated SBSS

Reporting agencies like D&B power the newer FICO SBSS Score model. The SBFE information may be used to anticipate charge-offs, bankruptcy, or three plus cycles overdue or delinquency over a duration of two years.

SBA Credit Scoring

The SBA’s tool has a basis in FICO. Their idea is to accelerate their credit choices for loan approvals. The tool uses several data sources and over one hundred combinations of business and consumer analytical models. They use a designated cutoff. https://www.sba.gov/offices/district/mo/st-louis/resources/small-business-loan-credit-scoring

Their total stats on their over $60 billion profile show that companies with scores at, or over the assigned cut-off will have very good payment history. So when you fix business credit, you might just want to fix your personal credit as well.

Fix Business Credit: 3 – Improve Your Payment History

Fixing credit issues means you need to fix bad habits and not repeat them. Mostly importantly, this means paying your bills on time and as completely as possible. A bonus to paying on time and in full means you pay considerably less interest on your debts.

Your payment patterns and history are a driving force in your overall credit score. Over time, paying your invoices on schedule will help establish your company as one that pays their financial obligations. This will inevitably help push your score up as well as show other firms you are a low risk.

Fix Business Credit: Bonus – Keep Your Debt-to-Income Ratio in Check

The more debt you have on your plate, the more invoices you have, and the less disposable income you have. If your total debt approaches or surpasses your income level, then you’re probably to be seen as high-risk.

Keep your financial obligations in check and consistently pay them off to keep a healthy balance between what you make and what you owe.

Fix Business Credit: Bonus – Use Your Credit

Keeping your financial obligations low remains sound recommendations. Still, opening and sensibly capitalizing on business credit accounts can help you increase your available credit and fix business credit.

Bonus – Improve Your Personal Credit Score, Too

Why is your personal credit score important to your business credit score? Your personal credit is fair game when it pertains to your Intelliscore Plus score.

Running a company is difficult work, but don’t let your individual finances suffer. Stay on top of your personal monthly bills. Also, stay clear of unnecessary credit inquiries. And avoid compromising your personal credit for company demands.

Fix Business Credit: Takeaways

Check your business credit scores and stay on top of your bills. Dispute errors and monitor your profiles so you’re never caught unawares.

The post 3 Ways to Fix Business Credit in a Recession appeared first on Credit Suite.

Empower Your Business with 0 Interest Business Credit Cards in a Recession

Get Epic 0 Interest Business Credit Cards in a Recession

Do you know how to get 0 interest business credit cards in a recession? We break down the many choices out there to show you the best corporate credit cards with 0% interest.

Even during the time of the novel coronavirus, it’s still possible to get good business credit cards. You do not have to settle!

Per the SBA, corporate credit card limits are often 10 – 100 times that of personal cards! This means you can get a lot more cash with business credit.

And this also means you can have personal credit cards at retail stores, and now have a second card at the same shops for your company. And you will not need collateral, cash flow, or financials to get small business credit.

0 Interest Business Credit Cards in a Recession: Benefits

Features vary, so make certain to pick the perk you prefer from this selection of possibilities.

0 Interest Business Credit Cards in a Recession – Pay Nothing!

Blue Business® Plus Credit Card from American Express

Check out the Blue Business® Plus Credit Card from American Express. It has no yearly fee. There is a 0% introductory APR for the initial one year. After that, the APR is a variable 14.74 – 20.74%.

Get double Membership Rewards® points on day to day business purchases like office supplies or client dinners for the first $50,000 spent each year. Get 1 point per dollar afterwards.

You will need great to excellent credit scores to qualify.

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

American Express® Blue Business Cash Card

Also have a look at the American Express® Blue Business Cash Card. Note: the American Express® Blue Business Cash Card is identical to the Blue Business® Plus Credit Card from American Express. But its rewards are in cash as opposed to points.

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

It has no annual fee. There is a 0% introductory APR for the initial one year. Afterwards, the APR is a variable 14.74 – 20.74%.

You will need great to superb credit to qualify.

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

Alternatives to 0 Interest Business Credit Cards in a Recession: Outstanding Business Credit Cards with No Annual Fee

No Yearly Fee/Flat Rate Cash Back

Ink Business Unlimited℠ Credit Card

Take a look at the Ink Business Unlimited℠ Credit Card. Beyond no yearly fee, get an introductory 0% APR for the first twelve months. After that, the APR is a variable 14.74 – 20.74%.

You can earn unlimited 1.5% Cash Back rewards on every purchase made for your small business. And get $500 bonus cash back after spending $3,000 in the initial three months from account opening. You can redeem your rewards for cash back, gift cards, travel and more via Chase Ultimate Rewards®. You will need exceptional credit to get approval for this card.

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

Check out how our reliable process will help your business get the best business credit cards, even during a recession.

Alternatives to 0 Interest Business Credit Cards in a Recession: Dependable Credit Cards for Fair to Poor Credit, Not Calling for a Personal Guarantee

Brex Card for Startups

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

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

However, they do not accept every industry.

Likewise, there are some industries they will not work with, and others where they want more paperwork. For a list, go here: https://brex.com/legal/prohibited_activities/.

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

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

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

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

Check out how our reliable process will help your business get the best business credit cards, even during a recession.

Alternatives to 0 Interest Business Credit Cards in a Recession: Irresistible Cards for Jackpot Rewards That Never Expire

Capital One® Spark® Cash Select for Business

Check out the Capital One® Spark® Cash Select for Business. It has no annual fee. You can get 1.5% cash back on every purchase. There is no limit on the cash back you can get. Also earn a one-time $200 cash bonus once you spend $3,000 on purchases in the initial three months. Rewards never expire.

Pay a 0% introductory APR for 9 months. Then pay 14.49% – 22.49% variable APR after that.

You will need great to superb credit to qualify.

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

Alternatives to 0 Interest Business Credit Cards in a Recession: Terrific Cards for Cash Back

Flat-Rate Rewards

Capital One ® Spark® Cash for Business

Check out the Capital One® Spark® Cash for Business. It has an introductory $0 yearly fee for the first year. After that, this card costs $95 annually. There is no introductory APR deal. The regular APR is a variable 18.49%.

You can get a $500 one-time cash bonus after spending $4,000 in the first three months from account opening. Get unlimited 2% cash back. Redeem at any time without minimums.

You will need great to excellent credit to qualify.

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

Flat-Rate Rewards and No Yearly Fee

Discover it® Business Card

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

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

You can download transactions| easily to Quicken, QuickBooks, and Excel. Keep in mind: you will need good to exceptional credit to get this card.

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

Bonus Categories

Ink Business Cash℠ Credit Card

Take a look at the Ink Business Cash℠ Credit Card. It has no annual fee. There is a 0% introductory APR for the first one year. Afterwards, the APR is a variable 14.74 – 20.74%. You can get a $500 one-time cash bonus after spending $3,000 in the initial 3 months from account opening.

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

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

You will need superb credit to receive this card.

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

Boosted Cash Back Categories

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

Take a look at the Bank of America® Business Advantage Cash Rewards MasterCard® credit card. Get an 0% introductory APR for the initial 9 billing cycles of the account. After that, the APR is 13.74% – 23.74% variable. There is no yearly fee. You can get a $300 statement credit offer.

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

You will need excellent credit scores to qualify.

Find it here: https://promo.bankofamerica.com/smallbusinesscards2/

Alternatives to 0 Interest Business Credit Cards in a Recession: Flexible Financing Credit Cards

The Plum Card® from American Express

Check out the Plum Card® from American Express. It has an introductory yearly fee of $0 for the first year. Afterwards, pay $250 annually.

Get a 1.5% early pay discount cash back bonus when you pay within 10 days. You can take up to 60 days to pay without interest when you pay the minimum due by the payment due date.

You will need excellent to superb credit to qualify.

Find it here: https://creditcard.americanexpress.com/d/the-plum-card-business-charge-card/

Check out how our reliable process will help your business get the best business credit cards, even during a recession.

Alternatives to 0 Interest Business Credit Cards in a Recession: Secure Business Credit Cards for Fair Credit

Capital One® Spark® Classic for Business

Take a look at the Capital One® Spark® Classic for Business. It has no annual fee. There is no introductory APR offer. The regular APR is a variable 24.49%. You can earn unlimited 1% cash back on every purchase for your company, without any minimum to redeem.

While this card is within reach if you have average credit, beware of the APR. Yet if you can pay on time, and completely, then it’s a good deal.

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

Alternatives to 0 Interest Business Credit Cards in a Recession: Company Credit Cards for Extravagant Travel Points

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

For no yearly fee while still getting travel rewards, take a look at this card from Bank of America. It has no annual fee and a 0% introductory APR for purchases during the first 9 billing cycles. Afterwards, its regular APR is 13.74 – 23.74% variable.

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

Earn unlimited 1.5 points for every $1 you spend on all purchases, everywhere, every time. And this is regardless of how much you spend.

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

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

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

Your Best 0 Interest Business Credit Cards in a Recession and More

Your absolute best 0 interest business credit cards in a recession will hinge upon your credit history and scores. Just you can determine which features you want and need, so make sure to do your research. And, as always, make certain to build business credit in the recommended order for the best, fastest benefits.

The post Empower Your Business with 0 Interest Business Credit Cards in a Recession appeared first on Credit Suite.

Check Out Our Fundation Group LLC Recession Funding Review and Make Your Best Business Financing Decision Today

Will Our Fundation Group LLC Recession Funding Review Help Satisfy Your Need for Business Funding? We Put It to the Test

Fundation Group LLC is one of many lending companies online. They provide term loans and lines of credit. Foundation confirmed the information we found about them online. We look at the specifics and drill down into the details. So check out our Fundation Group LLC recession funding review.

Fundation Group LLC Recession Funding Review: Background

Fundation Group LLC is located online here: http://www.fundation.com/. Their physical address is located in Reston, VA. Plus you can call them at: (888) 390-0064. So their contact page is here: https://fundation.com/about/.

Their capital base has come from Goldman Sachs; Garrison Investment Group; and Midcap Financial, LLC.

Fundation Group LLC Recession Funding Review: Term Loans

Funding as soon as one business day. Up to $500,000 is available; terms go up to 4 years. Payments are twice per month. No specific collateral is needed. They want a personal guarantee. Fundation will take out a UCC-1 blanket lien for most borrowers.

They do not seem to have a time in business requirement anymore. Fundation also does not seem to have an annual revenue or personal credit requirement anymore.

Fundation Group LLC Recession Funding Review: Fees

Rates are risk-based; the higher the risk, the higher the rate.

Interest rates are not listed; they will be determined based on several factors. There are no prepayment fees.

Cost of Loans

Several factors are considered when Fundation decides on the cost of a loan. These factors include time in business and seasonality. They also include financial metrics. So these metrics include profit margin and amount of debt.

Fundation Group LLC Recession Funding Review: Lines of Credit

Up to $150,000 is available. The new balance after each draw is amortized in equal installments over 18 months. Payments are monthly. No specific collateral is needed. They want a personal guarantee. Fundation will take out a UCC-1 blanket lien for most borrowers.

They do not seem to have a time in business requirement anymore. Fundation also does not seem to have an annual revenue or personal credit requirement anymore.

Fundation Group LLC Recession Funding Review: Fees

There are no prepayment fees. Just pay the outstanding balance plus accrued interest if you prepay
your loan or line of credit.

Keep your business protected with our professional business credit monitoring. It’s a worthwhile investment, saving you money even during a recession.

Fundation Group LLC Recession Funding Review: Advantages

Advantages include no apparent time in business requirement. Their maximum loan amount is fairly high.

Fundation Group LLC Recession Funding Review: Disadvantages

Disadvantages are they want personal guarantees for pretty much everything and will take out a UCC blanket lien.

A Fantastic Alternative – Establishing Business Credit

Business credit is credit in a small business’s name. It doesn’t attach to an owner’s individual credit, not even when the owner is a sole proprietor and the solitary employee of the small business.

As such, a business owner’s business and individual credit scores can be very different.

The Advantages

Because business credit is distinct from personal, it helps to protect a small business owner’s personal assets, in case of a lawsuit or business bankruptcy.

Also, with two distinct credit scores, a small business owner can get two different cards from the same merchant. This effectively doubles buying power.

Another benefit is that even startup ventures can do this. Visiting a bank for a business loan can be a formula for disappointment. But building small business credit, when done right, is a plan for success.

Personal credit scores depend upon payments but also other factors like credit utilization percentages.

But for small business credit, the scores actually only depend on whether a business pays its invoices punctually.

The Process

Establishing company credit is a process, and it does not occur without effort. A company has to actively work to establish company credit.

However, it can be done readily and quickly, and it is much quicker than establishing consumer credit scores.

Vendors are a big aspect of this process.

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

Business Fundability

A company must be fundable to credit issuers and vendors.

For that reason, a company will need a professional-looking web site and e-mail address. And it needs to have site hosting from a company like GoDaddy.

And, company phone and fax numbers must have a listing on ListYourself.net.

In addition, the company telephone number should be toll-free (800 exchange or the equivalent).

A small business will also need a bank account devoted strictly to it, and it needs to have all of the licenses essential for operation.

Licenses

These licenses all must be in the perfect, appropriate name of the company. And they must 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. It’s a worthwhile investment, saving you money even during a recession.

Dealing with the Internal Revenue Service

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

A company can get started as a sole proprietor. But they will most likely wish to switch to a kind of corporation or an LLC.

This is in order to minimize risk. And it will make best use of tax benefits.

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

Sole Proprietors Take Note

If you operate a company as a sole proprietor, then at least be sure to file for a DBA. This is ‘doing business as’ status.

If you do not, then your personal name is the same as the small business name. Therefore, you can end up being directly responsible for all small business debts.

Plus, according to the Internal Revenue Service, by having this arrangement there is a 1 in 7 probability of an IRS audit. There is a 1 in 50 probability for corporations! Prevent confusion and noticeably reduce the chances of an IRS audit at the same time.

Setting off the Business Credit Reporting Process

Begin at the D&B web site and obtain a totally free D-U-N-S number. A D-U-N-S number is how D&B gets a business into 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 websites 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 will have something to report on.

Vendor Credit

First you must build trade lines that report. This is also referred to as vendor credit. 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 retail and cash credit.

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

But first off, what is trade credit? These trade lines are credit issuers who will give you initial credit when you have none now. Terms are often Net 30, rather than revolving.

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

Keep your business protected with our professional business credit monitoring. It’s a worthwhile investment, saving you money even during a recession.

Retail Credit

Once there are 3 or more vendor trade accounts reporting to at least one of the CRAs, then move onto retail credit. These are companies like Office Depot and Staples.

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

Fleet Credit

Are there more accounts reporting? Then move to fleet credit. These are companies like BP and Conoco. Use this credit to buy fuel, and to fix and maintain vehicles. Just use your SSN and date of birth on these applications for verification purposes. For credit checks and guarantees, make sure to apply using the company’s EIN.

Cash Credit

Have you been sensibly handling the credit you’ve up to this point? Then progress to more universal cash credit. These are companies such as Visa and MasterCard. Just use your SSN and date of birth on these applications for verification purposes. For credit checks and guarantees, use your EIN instead.

These are frequently MasterCard credit cards. If you have more trade accounts reporting, then these are doable.

Monitor Your Business Credit

Know what is happening with your credit. Make certain it is being reported and deal with any mistakes ASAP. Get in the practice of taking a look at credit reports. Dig into the particulars, not just the scores.

We can help you monitor business credit at Experian and D&B for 90% less.

Update Your Data

Update the details if there are inaccuracies or the details is incomplete.

Fix Your Business Credit

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

Disputes

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

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

A Word about Building Business Credit

Always use credit responsibly! Don’t borrow beyond what you can pay off. Track balances and deadlines for repayments. Paying punctually and fully will do more to boost business credit scores than pretty much anything else.

Building business credit pays. Great business credit scores help a business get loans. Your credit issuer knows the business can pay its financial obligations. They know the company is bona fide.

The business’s EIN attaches to high scores and loan providers won’t feel the need to demand a personal guarantee.

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

Fundation Group LLC Recession Funding Review: Upshot

A company needing higher amounts will likely do better with Fundation. But there are negatives.

Entrepreneurs will find they have to give up a personal guarantee and, on top of that, have a UCC blanket lien held by Fundation. A company that fails and ends up going out of business could be particularly harsh for an entrepreneur – so companies which are unsure of the chances of their success would do well to seek out other types of funding, where they either hand over a personal guarantee or a UCC blanket lien but not both.

And finally, as with every other lending program, whether online or offline, always remember to read the fine print and do the math. Go over the details with a fine-toothed comb, and decide whether this option will be good for you and your company. In addition, consider alternative financing options that go beyond lending, including building business credit, in order to best decide how to get the money you need to help your business grow.

The post Check Out Our Fundation Group LLC Recession Funding Review and Make Your Best Business Financing Decision Today appeared first on Credit Suite.

Bad Credit in a Recession? You can get Business Cards and Build Credit

Do you have bad credit in a recession? You can get business cards and build credit – so don’t worry. Yes, even in a bad economy. And this is true no matter what happens with COVID-19.

Don’t Let Bad Credit in a Recession Get You Down

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

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

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

Credit Card Benefits

Benefits can vary. So, make certain to pick the perk you like from this choice of options.

Bad Credit in a Recession? Get Trustworthy Credit Cards for Fair to Poor Credit, Not Calling for a Personal Guarantee

Brex Card for Startups

Check out the Brex Card for Startups. It has no yearly fee.

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

Nonetheless, they do not accept every industry.

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

To determine creditworthiness, Brex checks a business’s cash balance, spending patterns, and investors.

You can get 7x points on rideshare. Get 4x on Brex Travel. Likewise, get triple points on restaurants. And get double points on recurring software payments. Get 1x points on everything else.

You can have bad credit scores (even a 300 FICO) to qualify.

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

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

Bad Credit in a Recession? Get Corporate Credit Cards for Fair Credit Scores

Capital One® Spark® Classic for Business

Take a look at the Capital One® Spark® Classic for Business. It has no annual fee. There is no introductory APR offer. The regular APR is a variable 24.49%. You can get unlimited 1% cash back on every purchase for your company, with no minimum to redeem.

While this card is within reach if you have fair credit scores, beware of the APR. However if you can pay on time, and in full, then it is a bargain.

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

Exceptional Business Credit Cards with Flexible Financing Credit Cards – Check Out Your Options!

The Plum Card® from American Express

Have a look at the Plum Card® from American Express. It has an introductory yearly fee of $0 for the first year. Afterwards, pay $250 per year.

Get a 1.5% early pay discount cash back bonus when you pay within 10 days. You can take up to 60 days to pay without interest when you pay the minimum due by the payment due date.

You will need good to superb credit scores to qualify.

Find it here: https://creditcard.americanexpress.com/d/the-plum-card-business-charge-card/

Bad Credit in a Recession? Get Company Credit Cards with Jackpot Rewards That Never Expire

Capital One® Spark® Cash Select for Business

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

Pay a 0% introductory APR for 9 months. Then pay 14.49% – 22.49% variable APR afterwards.

You will need great to outstanding credit scores to qualify.

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

Bad Credit in a Recession? Get Business Credit Cards with a 0% Introductory APR – Pay Zero!

Blue Business® Plus Credit Card from American Express

Have a look at the Blue Business® Plus Credit Card from American Express. It has no annual fee. There is a 0% introductory APR for the first year. Afterwards, the APR is a variable 14.74 – 20.74%.

Get double Membership Rewards® points on day to day business purchases like office supplies or client dinners for the initial $50,000 spent annually. Get 1 point per dollar afterwards.

You will need good to outstanding credit scores to qualify.

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

American Express® Blue Business Cash Card

Also take a look at the American Express® Blue Business Cash Card. Note: the American Express® Blue Business Cash Card is identical to the Blue Business® Plus Credit Card from American Express. But its rewards are in cash rather than points.

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

It has no annual fee. There is a 0% introductory APR for the first year. After that, the APR is a variable 14.74 – 20.74%.

You will need good to superb credit scores to qualify.

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

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

Bad Credit in a Recession? Get Terrific Cards for Cash Back

Flat-Rate Rewards

Capital One ® Spark® Cash for Business

Take a look at the Capital One® Spark® Cash for Business. It has an introductory $0 annual fee for the initial year. Afterwards, this card costs $95 each year. There is no introductory APR offer. The regular APR is a variable 18.49%.

You can get a $500 one-time cash bonus after spending $4,000 in the initial three months from account opening. Get unlimited 2% cash back. Redeem any time with no minimums.

You will need good to excellent credit to qualify.

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

Flat-Rate Rewards and No Yearly Cost

Discover it® Business Card

Have a look at the Discover it® Business Card. It has no annual fee. There is an introductory APR of 0% on purchases for year. After that the regular APR is a variable 14.49 – 22.49%.

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

You can download transactions| easily to Quicken, QuickBooks, and Excel. Note: you will need great to outstanding credit to get approval for this card.

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

Bonus Categories

Ink Business Cash℠ Credit Card

Take a look at the Ink Business Cash℠ Credit Card. It has no yearly fee. There is a 0% introductory APR for the initial year. Afterwards, the APR is a variable 14.74 – 20.74%. You can get a $500 one-time cash bonus after spending $3,000 in the first three months from account opening.

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

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

You will need superb credit scores to get approval for this card.

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

Boosted Cash Back Categories

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

Check out the Bank of America® Business Advantage Cash Rewards MasterCard® credit card. Get an 0% introductory APR for the first 9 billing cycles of the account. After that, the APR is 13.74% – 23.74% variable. There is no yearly fee. You can get a $300 statement credit offer.

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

You will need outstanding credit scores to qualify.

Find it here: https://promo.bankofamerica.com/smallbusinesscards2/

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

Bad Credit in a Recession? Get Company Credit Cards for Luxurious Travel Points

Flat-rate Travel Rewards

Capital One® Spark® Miles for Business

Take a look at the Capital One® Spark® Miles for Business. It has an introductory annual fee of $0 for the first year, which after that rises to $95. The regular APR is 18.49%, variable due to the prime rate. There is no introductory annual percentage rate. Pay no transfer fees. Late fees go up to $39.

This card is wonderful for travel if your costs don’t fall into basic bonus categories. You can get unlimited double miles on all purchases, without any limits. Earn 5x miles on rental cars and hotels if you book with Capital One Travel.

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

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

Bonus Travel Categories with a Sign-Up Offer

Ink Business Preferred℠ Credit Card

For a great sign-up offer and bonus categories, check out the Ink Business Preferred℠ Credit Card.

Pay an annual fee of $95. Regular APR is 17.49 – 22.49%, variable. There is no introductory APR offer.

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

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

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

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

No Yearly Fee

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

For no yearly fee while still getting travel rewards, have a look at this card from Bank of America. It has no annual fee and a 0% introductory APR for purchases during the first 9 billing cycles. After that, its regular APR is 13.74 – 23.74% variable.

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

Get unlimited 1.5 points for every $1 you spend on all purchases, everywhere, every time. And this is despite how much you spend.

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

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

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

Hotel Credit Card

Marriott Bonvoy Business™ American Express® Card

Have a look at the Marriott Bonvoy Business™ Card from American Express. It has a yearly fee of $125. There is no introductory APR offer. The regular APR is a variable 17.24 – 26.24%. You will need great to superb credit scores to get this card.

Points

You can get 75,000 Marriott Bonvoy points after using your card to make purchases of $3,000 in the initial 3 months. Get 6x the points for qualified purchases at participating Marriott Bonvoy hotels. You can get 4x the points at United States restaurants and filling stations. And you can get 4x the points on wireless telephone services purchased directly from American service providers and on American purchases for shipping.

Get double points on all other qualified purchases.

Rewards

Plus, you get a free night every year after your card anniversary. And you can get one more free night after you spend $60,000 on your card in a calendar year.

You get Marriott Bonvoy Silver Elite status with your Card. Plus, spend $35,000 on eligible purchases in a calendar year and get an upgrade to Marriott Bonvoy Gold Elite status through the end of the next calendar year.

Also, each calendar year you can get credit for 15 nights towards the next level of Marriott Bonvoy Elite status.

Find it here: https://creditcard.americanexpress.com/d/bonvoy-business/

The Perfect Business Credit Cards for You (Even With Bad Credit in a Recession)

Your absolute best business credit cards hinge on your credit history and scores, even if you have bad credit in a recession.

Only you can select which features you want and need. So be sure to do your homework. What is excellent for you could be disastrous for another person.

And, as always, be sure to develop credit in the recommended order for the best, quickest benefits. The COVID-19 situation will not last forever.

The post Bad Credit in a Recession? You can get Business Cards and Build Credit appeared first on Credit Suite.

Six Ways to Creatively Fund a Startup Without Using Equity During a Recession Cycle

Creative Recession Cycle Funding For New Businesses

As an entrepreneur, raising money for your new startup business can seem hard to execute. You’ve probably seen dozens of competition funds out there, so you have chances to secure funding. Ultimately, you want funding for your startup to come from investors. But getting investors can be impossible for a new startup. Recession cycle funding for startups can happen.

Using your equity might seem like the best idea to fund your business as you wait for investors to come. Most new startup business owners, fall prey to taking out the equity to fund the business before the revenue starts rolling in. You don’t have to take out equity to fund your startup. It’s not necessary. The success of your business solely comes from decisions you make as the business owner.

Here are some ways to creatively make money for your new startup without taking out of your equity.

Recession Era Funding

The number of United States financial institutions as well as thrifts has been decreasing progressively for a quarter of a century. This is from consolidation in the marketplace along with deregulation in the 1990s, decreasing barriers to interstate banking. See: https://www.fundera.com/blog/happened-americas-small-businesses-financial-crisis-six-years-start-crisis-look-back-10-charts

Assets focused in ever‐larger financial institutions is problematic for small business proprietors. Big banks are a lot less likely to make small loans. Economic recessions mean banks become extra mindful with lending. The good news is, business credit does not depend on financial institutions.

Recession Cycle Funding: Crowdfunding

Use Kickstarter. There’s a method to the madness in using Kickstart to fund your startup. First, do your research before pitching your idea to Kickstarter. Find out if there’s another project they have approved like your startup. So if they deny your idea, refer to similar projects they have approved. And when you ask for money from Kickstarter, be realistic and ask for money to help you survive for a few months. Don’t forget to spread the word to your friends and family asking them to help fund your start up.

Recession Cycle Funding: Bootstrap

Put your Money in First. When you first start out, tap into your own saving accounts, home equity, retirement accounts, etc. This might seem a bit risky, but you should invest in your own startup venture before you expect other investors to put money into it. Most investors will want to see the owners of the business have invested some of their own cash in the business to show confidence.

But there can be some issues with bootstrapping your business.

Still, here are some ways to bootstrap to build more financial resources.

Share and Save on Services and Equipment

Share office services and equipment. You’ll probably need to get a co-work space where you can share the office space and equipment with other business owners. This will help you cut the cost of renting an office space and paying the high monthly rent.

Use the computers and servers you have. Don’t go out and buy new equipment when you start your startup. Use the computers, software, and desks, etc., you already have. Don’t spend extra money renting new equipment.

Recession Cycle Funding: Grants

Pursue non-dilutive capital. Look for government grants to get more money for your startup. Cities and states have grant programs offering low-interest rates on loans. Having access to these resources give startups the ability to qualify for large sums of money.

Recession Cycle Funding: Startup Business Credit Cards

Business credit cards can be a great way to get a startup off the ground.

We looked at a number of business credit cards, and did the research for you. So here are our picks.

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

You can get a lot more money with business credit. And you can still have personal credit cards at stores. So you would now have an added card at the same stores for your company.

You don’t need collateral, cash flow, or financials to get business credit. This is still true during a recession cycle.

Benefits can vary. So, make certain to choose the benefit you would prefer from this assortment of alternatives.

Dependable Credit Cards for Fair to Poor Credit, Not Calling for a Personal Guarantee

Brex Card for Startups

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

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

Nonetheless, they do not accept every industry.

Likewise, there are some industries they will not work with, as well as others where they want added documentation. For a list, go here: https://brex.com/legal/prohibited_activities/.

To determine creditworthiness, Brex checks a business’s cash balance, spending patterns, and investors.

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

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

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

Secure Business Credit Cards for Fair Credit

Capital One® Spark® Classic for Business

Take a look at the Capital One® Spark® Classic for Business. It has no yearly fee. There is no introductory APR offer. The regular APR is a variable 24.49%. You can earn unlimited 1% cash back on every purchase for your company, without any minimum to redeem.

While this card is within reach if you have fair credit scores, beware of the APR. But if you can pay on schedule, and in full, then it’s a bargain.

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

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

Exceptional Business Credit Cards with No Yearly Fee

No Yearly Fee/Flat Rate Cash Back

Ink Business Unlimited℠ Credit Card

Check out the Ink Business Unlimited℠ Credit Card. Past no yearly fee, get an introductory 0% APR for the first one year. After that, the APR is a variable 14.74 – 20.74%.

You can get unlimited 1.5% Cash Back rewards on every purchase made for your company. And get $500 bonus cash back after spending $3,000 in the first 3 months from account opening. You can redeem your rewards for cash back, gift cards, travel and more through Chase Ultimate Rewards®. You will need excellent credit to get approval for this card.

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

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

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

Blue Business® Plus Credit Card from American Express

Take a look at the Blue Business® Plus Credit Card from American Express. It has no yearly fee. There is a 0% introductory APR for the first 12 months. After that, the APR is a variable 14.74 – 20.74%.

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

You will need great to outstanding credit scores to qualify.

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

American Express® Blue Business Cash Card

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

It has no yearly fee. There is a 0% introductory APR for the first one year. Afterwards, the APR is a variable 14.74 – 20.74%.

You will need good to excellent credit scores to qualify.

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

Terrific Cards for Cash Back

Flat-Rate Rewards

Capital One ® Spark® Cash for Business

Check out the Capital One® Spark® Cash for Business. It has an introductory $0 yearly fee for the first year. After that, this card costs $95 each year. There is no introductory APR deal. The regular APR is a variable 18.49%.

You can get a $500 one-time cash bonus after spending $4,000 in the initial three months from account opening. Get unlimited 2% cash back. Redeem at any time without minimums.

You will need great to excellent credit scores to qualify.

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

Flat-Rate Rewards and No Yearly Cost

Discover it® Business Card

Check out the Discover it® Business Card. It has no annual fee. There is an introductory APR of 0% on purchases for 12 months. After that the regular APR is a variable 14.49 – 22.49%.

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

You can download transactions| quickly to Quicken, QuickBooks, and Excel. Note: you will need great to superb credit to receive this card.

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

Bonus Categories

Ink Business Cash℠ Credit Card

Take a look at the Ink Business Cash℠ Credit Card. It has no annual fee. There is a 0% introductory APR for the first year. After that, the APR is a variable 14.74 – 20.74%. You can get a $500 one-time cash bonus after spending $3,000 in the initial 3 months from account opening.

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

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

You will need superb credit to get approval for this card.

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

Boosted Cash Back Categories

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

Take a look at the Bank of America® Business Advantage Cash Rewards MasterCard® credit card. Get an 0% introductory APR for the first 9 billing cycles of the account. Afterwards, the APR is 13.74% – 23.74% variable. There is no yearly fee. You can get a $300 statement credit offer.

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

You will need outstanding credit scores to qualify.

Find it here: https://promo.bankofamerica.com/smallbusinesscards2/

Flexible Financing Credit Cards – Take A Look at Your Alternatives!

The Plum Card® from American Express

Check out the Plum Card® from American Express. It has an introductory yearly fee of $0 for the first year. Afterwards, pay $250 per year.

Get a 1.5% early pay discount cash back bonus when you pay within 10 days. You can take up to 60 days to pay without interest when you pay the minimum due by the payment due date.

You will need good to exceptional credit scores to qualify.

Find it here: https://creditcard.americanexpress.com/d/the-plum-card-business-charge-card/

Unbeatable Cards for Jackpot Rewards That Never Expire

Capital One® Spark® Cash Select for Business

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

Pay a 0% introductory APR for 9 months. Then pay 14.49% – 22.49% variable APR afterwards.

You will need good to outstanding credit to qualify.

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

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

The Recession Cycle Funding for You

Your absolute best business credit cards hinge on your credit history and scores.

Only you can pick which features you want and need. So be sure to do your homework. What is outstanding for you could be catastrophic for somebody else.

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

Recession Cycle Funding: Takeaways

Raising money during a recession cycle might feel a little overwhelming. It takes time to build up funds to start a new business. But you don’t have to feel you have to use your equity to fund your new business. There are so many other ways you can find money to help your business grow. Don’t get focused on making quick money. Think about the long-term growth of your company, and how your decisions today will affect its finances in the future. Develop a plan to find money from different resources before using company equity. And yes, you can even do this during a recession cycle.

The post Six Ways to Creatively Fund a Startup Without Using Equity During a Recession Cycle appeared first on Credit Suite.

It’s Science-backed With Our Foolproof Research: How to Build a Business Credit Score in a Recession

We Smuggled Out Hidden Information on How to Build a Business Credit Score in a Recession

Our research dynamos can teach YOU how to build a business credit score in a recession! The economy doesn’t have to be perfect to build business credit quickly and effectively.

Building better business credit means that your small business attains opportunities you never assumed it would.

You can get new equipment, bid on real property, and deal with the company payroll. And you can do so even when times are a bit lean. This is specifically helpful in holiday businesses, where you can go for calendar months with simply negligible sales.

Because of this, you ought to tackle building your company credit. Enhance and maintain your scores and you will have these possibilities. Do not, and either you do not get these opportunities, or they will cost you a lot more. And no company owner wants that.

So you need to know what affects your business credit before you can make it better.

How to Build a Business Credit Score in a Recession: Credit History Length Is Vital

This is essentially the length of time your business has been using business credit. Obviously newer businesses will have short credit histories. While there is not too much you can particularly do about that, do not despair.

Credit reporting agencies will also consider your personal credit score and your own history of payments. If your consumer credit is good, and particularly if you have a fairly extensive credit history, then your individual credit can come to the rescue of your company.

So that is, you did not just get your first credit card recently.

Normally the converse is also right. Hence if your individual credit history is poor, then it will have a bearing on your business credit scores. And it will do so until your small business and personal credit can be split up.

How to Build a Business Credit Score in a Recession: Don’t Allow Your Credit Utilization Rate to Harm Your Small business

Your credit utilization rate is just the amount of cash you have on credit. So it is then divided by your total available credit. Lenders in general do not wish to see this exceed 30%. Hence for every $100 in credit, do not borrow more than $30 of that.

If this percent is climbing, you’ll have to spend down and pay off your debts prior to borrowing more.

How to Build a Business Credit Score in a Recession: Your Payment History Truly Matters

Late repayments will affect your company credit score for a good seven years. If you pay your company debts off, as fast as possible, then you can make a very real difference when it relates to your credit scores.

Ensure that you pay promptly. And you will enjoy the rewards of promptness.

Learn more here and get started toward building business credit attached to your company’s EIN and not your SSN. Get money even in a recession!

How to Build a Business Credit Score in a Recession: Your Personal Credit Can Bear upon Your Business Credit

A substandard business year could end up on your personal credit score. And in case your business has not been around for too long, it will directly influence your company credit.

But don’t worry, you can separate them easily. Do so by taking measures to unlink them.

For instance, get credit cards exclusively for your firm. Or open business checking accounts and other bank accounts (or perhaps get a business loan). And then the credit reporting bureaus will begin to address your personal and small business credit independently.

Also, make sure to incorporate. Or at least file a DBA (doing business as) status. You can also pay for your company’s debts with your firm credit card or checking account. And make certain it is the company’s full name on the bill and not your own.

How to Build a Business Credit Score in a Recession: The Credit Reporting Bureaus Can Just Plain Get It Wrong

Just like each organization out there, credit reporting agencies like Equifax and Experian are only as good as their information. If your firm’s name is like another’s, there can possibly be some errors.

So check those reports, and your company report at Dun & Bradstreet, PAYDEX. Remain on top of these reports and contest charges with documentation and clear communications. Do not just let them stay incorrect! You can fix this!

And while you’re at, it you should also be overseeing the credit reporting agency which solely handles personal and not business credit, TransUnion. If you do not know how to pull a credit report, do not fret. It’s easy.

An Alternative – Business Credit!

Business credit is credit in a small business’s name. It doesn’t attach to an owner’s consumer credit, not even if the owner is a sole proprietor and the only employee of the company. Consequently, a business owner’s business and consumer credit scores can be very different.

The Benefits

Since small business credit is independent from individual, it helps to secure a business owner’s personal assets, in the event of a lawsuit or business bankruptcy. Also, with two separate credit scores, a small business owner can get two different cards from the same merchant. This effectively doubles buying power.

Another advantage is that even new ventures can do this. Visiting a bank for a business loan can be a recipe for disappointment. But building business credit, when done the right way, is a plan for success.

Personal credit scores depend upon payments but also additional factors like credit usage percentages. But for business credit, the scores truly only hinge on whether a company pays its bills on time.

Learn more here and get started toward building business credit attached to your company’s EIN and not your SSN. Get money even in a recession!

The Process

Growing business credit is a process, and it does not happen automatically. A business needs to actively work to establish business credit. Nevertheless, it can be done easily and quickly, and it is much more rapid than establishing personal credit scores.

Merchants are a big part of this process.

Doing the steps out of order will result in repetitive denials. No one can start at the top with company credit. For instance, you can’t start with store or cash credit from your bank. If you do you’ll get a rejection 100% of the time.

Business Fundability

A business has to be genuine to lenders and merchants. For that reason, a business will need a professional-looking web site and email address, with site hosting bought from a merchant such as GoDaddy.

And company telephone and fax numbers ought to have a listing on ListYourself.net.

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

A business will also need a bank account dedicated solely to it, and it has to have all of the licenses essential for running. These licenses all have to be in the correct, correct name of the small business, with the same business address and phone numbers.

So bear in mind that this means not just state licenses, but possibly also city licenses.

Learn more here and get started toward building business credit attached to your company’s EIN and not your SSN. Get money even in a recession!

Dealing with the Internal Revenue Service

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

A company can get started as a sole proprietor. But they will more than likely wish to change to a kind of corporation or partnership to decrease risk and maximize tax benefits.

A business entity will matter when it comes to taxes and liability in case of a lawsuit. A sole proprietorship means the entrepreneur is it when it comes to liability and taxes. No one else is responsible.

If you operate a small business as a sole proprietor, then at the very least be sure to file for a DBA (‘doing business as’) status.

If you do not, then your personal name is the same as the business name. As a result, you can wind up being directly responsible for all company debts.

Additionally, according to the IRS, by having this structure there is a 1 in 7 possibility of an IRS audit. There is a 1 in 50 chance for corporations! Steer clear of confusion and significantly decrease the chances of an IRS audit at the same time.

Starting Off the Business Credit Reporting Process

Begin at the D&B website and get a cost-free DUNS number. A DUNS number is how D&B gets a company in their system, to produce a PAYDEX score. If there is no DUNS number, then there is no record and no PAYDEX score.

Once in D&B’s system, search Equifax and Experian’s websites for the company. You can do this here. If there is a record with them, check it for correctness and completeness. If there are no records with them, go to the next step in the process.

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

Trade Lines

First you must establish trade lines that report. This is also called vendor accounts. 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 start getting revolving store and cash credit.

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

But first off, what is trade credit? These trade lines are credit issuers who will give you initial credit when you have none now. Terms are commonly Net 30, instead of revolving.

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

Details

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

To kick off your business credit profile the right way, you should get approval for vendor accounts that report to the business credit reporting bureaus. As soon as 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.

Not every vendor can help like true starter credit can. These are vendors that will grant an 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.

But you may have to apply more than one time to these vendors, and you may need to purchase some things you don’t need, to confirm you are responsible and will pay promptly. Consider giving nonessential things to charitable organizations.

Revolving Store Credit

Once there are 3 or more vendor trade accounts reporting to at least one of the CRAs, progress to revolving store credit. These are service providers such as Office Depot and Staples.

Use the small business’s EIN on these credit applications.

Fleet Credit

Are there more accounts reporting? Then move onto fleet credit. These are businesses like BP and Conoco. Use this credit to purchase fuel, and to repair and take care of vehicles. Make sure to apply using the small business’s EIN.

Cash Credit

Have you been sensibly handling the credit you’ve gotten up to this point? Then move onto more universal cash credit. Keep your SSN off these applications; use your EIN instead.

These are usually MasterCard credit cards. If you have more trade accounts reporting, then these are feasible.

Monitor Your Business Credit

Know what is happening with your credit. Make sure it is being reported and deal with 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 and D&B for 90% less. Update the information if there are errors or the info is incomplete.

Disputing Errors

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

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

Disputing credit report mistakes also means you specifically spell out any charges you challenge. Make your dispute letter as clear as possible. Be specific about the problems with your report. Use certified mail so that you will have proof that you mailed in your dispute.

A Word about Building Business Credit

Always use credit sensibly! Don’t borrow more than what you can pay off. Keep an eye on balances and deadlines for repayments. Paying in a timely manner and in full will do more to raise business credit scores than pretty much anything else.

Establishing business credit pays. Great business credit scores help a business get loans. Your lending institution knows the business can pay its debts. They know the business is bona fide.

The small business’s EIN attaches to high scores, and lending institutions won’t feel the need to demand a personal guarantee.

How to Build a Business Credit Score in a Recession: The Takeaways

Once you find out what influences your small business credit score, you are that much nearer to being able to build a business credit in a recession.

Learn more here and get started on how to build a business credit score in a recession.

The post It’s Science-backed With Our Foolproof Research: How to Build a Business Credit Score in a Recession appeared first on Credit Suite.

Brutal! 5 Ways You Can Get Denied for a Business Loan in a Recession –Your Banker Won’t Tell You About These!

We Smuggled out these Secrets: The 5 Ways You Can Get Denied for a Business Loan in a Recession – Your Banker Will Never Tell You About These

Did you know there are 5 ways you can get denied for a business loan in a recession? And let’s face it, your banker won’t tell you about ANY of them. It is, unfortunately, pretty easy to get a bank loan denial. This is particularly true in recessions. Bank loan money is always tighter.

And not everyone knows how it happens. So read on, and learn the secrets!

A Look at Bank Credit vs. Business Credit

Before going any further, do you know the difference between bank credit and business credit? Business credit is the full and complete amount of money that your small business can get from creditors. This includes leasing companies. It is also suppliers, under what’s called vendor credit.

Bank credit is the full amount of borrowing capacity which a small business can get from the banking system only.

What are Bank Credit Scores?

Even during a recession, a small business can get more business credit quickly, so long as it has two things.

One, it must have at least one bank reference. And two, it has to have an average daily account balance of at least $10,000. And that has to be for the most recent three month time period.

This set up will yield a bank rating of a Low-5. And that means it is an Adjusted Debt Balance of from $5,000 to $30,000.

Lower Ratings

A lower rating, like a High-4, or balance of $7,000 to $9,999 will not necessarily reject the small business’s loan application. However, it will slow down the approval process (in a recession, it could grind to a screeching halt). And a Low-5, we know, is far more likely to be necessary for an approval.

A bank credit rating is the average minimum balance a company maintains in a business bank account over a three month long period.

Hence a $10,000 balance will rate as a Low-5. And a $5,000 balance will rate as a Mid-4. By the same token, a $999 balance will rate as a High-3, etc.

A small business’s chief goal should always be to maintain a minimum Low-5 bank rating. So that means an average $10,000 balance. And they will need to do so for at least three months.

This is because, without at least a Low-5 rating, the majority of banks will operate under the assumption that the business has little to no ability to repay a loan or a business line of credit.

But here is one thing to keep in mind. You will never actually see this number. The bank will just keep this number in its back pocket.

Check out our professional research on bank ratings, the little-known reason why you will – or won’t – get a bank loan for your business during a recession.

The Rating Ranges

The numbers work out to the following ranges:

High-5 – account balance of $70,000 to $99,999
Mid-5 –$40,000 to $69,999
Low-5 –$10,000 to $39,000 (your small business needs this level bank score or better to get loans)
High-4 – $7,000 to 9,999
Mid-4 – $4,000 to $6,999
Low-4 – $1,000 to $-3,999

Bank Credit Problems that can Get Your Business a Denial

There are several ways to get a denial when you want a business loan. Here are the top five.

#1 Way You Can Get Denied for a Business Loan in a Recession

You’ll get a denial if you don’t maintain a minimum balance for at least three months. Since every bank credit cycle is based on the previous three months, a continually seesawing balance should damage your bank credit.

How You Can Fix It

So, what is the remedy? Keep cash in your account, by any means you can. This can be tough in a recession, but it is not impossible.

#2 Way You Can Get Denied for a Business Loan in a Recession

Looking to get a denial? Then don’t bother to assure that your business bank accounts are reported exactly the same way all of your business records are. And they would also have to be with the exact same physical address and phone number.

Sow confusion in this area by changing one and not another, or not correcting an error if there is one. And use a post office box!

Wrong.

How You Can Fix It

So, what is the remedy? Keep your records consistent. Copy and paste whatever you can. Do not chance it by retyping. And as for your location, if you do not want or need a physical office, go with a virtual one. We particularly like Regus and Alliance.

Can’t find any virtual office space nearby or within your budget? Then talk to other area business owners. And find out who they work with.

Check out our professional research on bank ratings, the little-known reason why you will – or won’t – get a bank loan for your business during a recession.

#3 Way You Can Get Denied for a Business Loan in a Recession

To go along with #2, you’ll get a denial if you don’t keep consistent, congruent records. That is, to make sure that every credit agency and trade credit vendor, every record keeper, lists the business name and address the exact same way.

These include record keepers for financial records, income tax, web addresses and e-mail addresses, directory assistance, etc.

No lender is going to stop to consider all of the ways that a business might be listed. That will not happen when they look into the business’ creditworthiness.

Therefore, if they are unable to find what they need easily, they will just deny the application. Or your carefully cultivated credit won’t report to the business credit reporting agencies. So if you want a denial, make sure your records are a mess!

No. Don’t do this.

How You Can Fix It

So, what is the remedy? Again, keep your records as consistent as possible. And if you need to hire someone to help you with this, then be sure to do so. It will be well worth it to get some peace of mind this area.

#4 Way You Can Get Denied for a Business Loan in a Recession

This one happens if you never manage your bank account responsibly. It means that your small business should not avoid writing non-sufficient funds (NSF) checks at all costs.

NSFs will decimate bank ratings.

Non-sufficient-funds checks are something which no business can afford to let happen.

But balancing checkbooks and accounts is so dull anyway. And you’ve got enough money without even making sure, right?

Wrong!

How You Can Fix It

So, what is the remedy? Carefully balance your books and make sure you have enough funds for your transactions.

So this might mean you hire someone with a bookkeeping or accounting background to help you. And that’s a great idea!

Beyond taking care of your business bank accounts, such an employee should be able to help you with the tax implications of pretty much everything that you do. All businesses will have to pay taxes. There are no exceptions to this rule! So why not legally and ethically pay less?

Check out our professional research on bank ratings, the little-known reason why you will – or won’t – get a bank loan for your business during a recession.

#5 Way You Can Get Denied for a Business Loan in a Recession

To add to #4, you’ll get a denial if you don’t add overdraft protection to your bank account as soon as possible, in order to avoid NSFs. But why bother thinking ahead or planning for the future? Everything is going to be great forever, right?

Wrong.

How You Can Fix It

So, what is the remedy? Overdraft protection is a valuable feature. So make sure you can get it. That might mean going to a bank that isn’t right around the corner from you. Or it might mean maintaining a specific minimum balance.

And if it does, then that’s even better. You’ll kill two birds with one stone and also address #1, above.

Bonus: #6 Way You Can Get Denied for a Business Loan in a Recession

Want to get a denial? Then don’t let your business show a positive cash flow. A positive free cash flow is the amount of revenue left over after your company has paid all of its expenses.

So if you really want to get a loan denial from your bank credit, go ahead and treat yourself. And buy whatever’s expensive for your business. And make sure your expenses outstrip your profits.

Because doesn’t every factory deserve plush carpeting in the loading dock?

Wrong.

How You Can Fix It

So, what is the remedy? The cash coming in and leaving your company’s bank account should reflect a positive free cash flow.

When an account shows a positive cash flow it indicates your business is generating more revenue than is used to run the company. That means the bank will feel your business can pay its bills.

Can’t afford to add a lot at a time? That’s okay – long as you are adding something.

In a recession, it’s obviously harder to keep adding to a business bank account. Just … try.

Bonus: #7 Way You Can Get Denied for a Business Loan in a Recession

Banks are highly motivated to lend to a business with consistent deposits. And a business owner must also make regular deposits. So this is in order to maintain a positive bank rating.

The business owner must make a lot of consistent deposits, more than the withdrawals they are making. This is the best way to have and maintain a good bank rating.

If they can do that, then they will have a good bank credit score.

But consistency is the hobgoblin of little minds, right?

Hence depositing whatever, whenever has got to be the best way to handle your company’s bank deposits, right?

Wrong.

How You Can Fix It

So, what is the remedy? Consistency! Showing your bank is dependably and regularly adding funds will go a long way to assuring your bank that your business is credible.

And it’ll assure them that if they loan you money, that you’ll be able to pay them back.

And you’ll maintain your ethics and do so.

There are Many Ways You Can Get Denied for a Business Loan in a Recession

Yes, you can wreck your bank credit these five seven ways. So don’t! If you wreck your bank credit, then you may as well throw in the towel. And in a recession, you just plain can’t afford that.

This is because you’ll also tank your business. And no one wants to see that happen.

Particularly now, in the age of COVID-19, you need to help your business in any way you can.

The post Brutal! 5 Ways You Can Get Denied for a Business Loan in a Recession –Your Banker Won’t Tell You About These! appeared first on Credit Suite.

Brutal! 5 Ways You Can Get Denied for a Business Loan in a Recession –Your Banker Won’t Tell You About These!

Need a business loan in a recession? Beyond the SBA’s PPP program, you should also be looking at lenders outside the SBA’s purview. And you need to make it easier for them to approve your application. We Smuggled out these Secrets: The 5 Ways You Can Get Denied for a Business Loan in a Recession … Continue reading Brutal! 5 Ways You Can Get Denied for a Business Loan in a Recession –Your Banker Won’t Tell You About These!

How Does Your Garden Grow? Best Business Line of Credit in a Recession

The COVID-19 pandemic caught the world by surprise and turned the economy upside down. If you are a business trying to make it during this time, we can help. The Federal government has approved funding through The CARES Act, including the Paycheck Protection Plan. In addition, many states and local organizations are offering their own COVID-19 relief options. Beyond that, we can help you find the best business line of credit in a recession.

A Business Line of Credit is Like Miracle Grow for Your Business

A business line of credit can be an incredible tool for your business, even in a recession. You don’t want just any line of credit however. You want the best one for your business needs.

Not all businesses are the same, and not all lines of credit are best for all businesses. Different limits, rates, and terms work better for some than others. How do you ensure you are getting the best business line of credit in a recession?

What’s a Line of Credit?

It can help to get a quick rundown of exactly what a line of credit is. The most basic definition is that it is a revolving line of credit, similar to a credit card. You have a limit and continuous access to that limit while making payments only on the portion you use each month.

For example, if you have a $10,000 line of credit, you can use however much of those funds you need each month for whatever you want, unless your lender issues some sort of restriction. If you use $2,000, then when you get your statement your payment will be based on $2,000 plus the interest, rather than a payment plus interest on the entire credit line.

If you were to pay $1,000, then spend another $500, you would pay on the $1,500 balance the next month. Your payments change as your balance changes. Just like with a credit card.

Access is most typically granted through checks or a card connected to the line of credit account. Electronic draws and transfers are also popular.

Learn bank rating secrets with our free, sure-fire guide which can even help during a recession.

Line of Credit vs. Credit Cards

The question is always asked what the difference is between a line of credit and a credit card, and why is one better than the other? The truth is that in some cases, a credit card may be the better option. There is a choice to make based on several different factors.

The main difference between the two that most borrowers need to know is that a line of credit typically has a consistently lower interest rate. Also, there are no perks like 0% interest or cash back that you sometimes see with credit cards.

What Signifies the Best Business Line of Credit in a Recession?

The best business line of credit in a recession is going to be the one with the best rates and terms that your business can qualify for. That makes finding it a little more involved. You have to know where you stand and what various lenders offer and require.

It will take some leg work on your part to pull together the information needed for application. You will also need to understand that the best business line of credit in a recession may not come from the same place you would have gotten a business line of credit pre-recession. You might have better luck with online lenders or smaller banks over larger traditional banks during an economic downturn.

A Word of Warning

Before you apply for the best business line of credit in a recession, remember that balance is important. Recession times are by default, hard. A line of credit can ease some of the burden, but be careful not to let the credit line itself become a burden. Know your limits as far as what you can pay.

If you do not make payments on-time, you could end up with more trouble than you already had.

How to Find the Best Business Line of Credit in a Recession?

There are several steps to this process.

1. Why do you need a business line of credit in a recession?

Figuring this out could be the most vital step in finding the best business line of credit for your needs. You have to understand why you need a credit line in the first place. Here are some examples of how a business may use a line of credit.

Take advantage of a sale on inventory, raw materials, or supplies. This can reduce the cost of goods sold and consequently, increase the bottom line.
Purchase or repair minor equipment when needed. This would be like a new printer or laptop. It would not include items like an industrial oven or delivery truck. Larger equipment would best be purchased with an equipment loan.
Bridge temporary cash gaps or continuous, known cash gaps due to timing issues. An example of this would be several bills that are due at the beginning of the month when you know your largest contracts pay at the end of the month. The money is coming, but the bills come due before the money gets there. You can pay the bills with the line of credit, then pay off the line of credit when the contracts pay.

Another example of this is a seasonal line of credit for a business that does the majority of its sales during a certain time of the year. A florist does a large percentage of sales during Valentines day, so a seasonal line of credit can come in handy to bridge the cash gap during other times of the year.

2. Determine your options.

Shop around with various financial institutions to determine which ones offer the best business lines of credit in a recession. You will want to look at factors such as interest rate and credit limit in relation to what you need and can afford.

Check with various types of lenders to get a feel for which ones offer what you need. Check with larger commercial banks, small local institutions and credit unions, and alternative lenders such as those that operate exclusively online.

Pay specific attention to eligibility requirements to avoid wasting your time with those you do not qualify for.

Learn bank rating secrets with our free, sure-fire guide which can even help during a recession.

3. Know where you stand.

Your ability to get approval for the best business line of credit in a recession will be directly related to your business credit. Traditional banks pay more attention to personal credit, but they crack down a lot on lending when there is a recession. Non-traditional lenders may also consider income and cash flow. They may, in addition, rely heavily on your business credit score when making an approval decision about a line of credit.

A lower business credit score does not necessarily mean you can’t get approval. It could greatly affect your interest rate and credit limit however.

Consider signing up for a credit monitoring service that lets you keep tabs on your business credit and what is affecting it each month. The one offered by CreditSuite.com is easy to use and cost effective.

Once you have a handle on why you need a business line of credit, what is available, and what you may actually be eligible for, you can make a decision as to where you are going to apply and which product you are going to apply for.

Determining which of these lenders has the best business line of credit in a recession for you goes back to knowing what you need, who has it, and who will approve you for it.

When Is a Line of Credit Better than a Credit Card?

If you are going to need to make payments, a line of credit is a better option. The reason is pretty simple. The credit rate is almost always lower. The few exceptions are those cards that offer 0% APR for a short period of time.

If you are going to use a credit card to make regular purchases you intend to pay off immediately, that’s another story. Especially if you qualify for a card with perks such as cash back. In that case, you may find that you can benefit from using a credit card over a line of credit.

An example would be if you wanted to use your business credit card to make your monthly supplies purchase each month and then pay it off in the following month. You could take advantage of the cash back and reduce your overall cost.

To float a cash flow gap or make significant purchases that you will need to pay out over a short amount of time, a line of credit is almost always the best choice.

Where to Find the Best Business Line of Credit in a Recession

Some small businesses will have a hard time getting approval from a traditional lender due to poor credit or a lack of sufficient credit history. We found examples of what alternative lenders are offering currently. Keep in mind these offerings can change, so make sure to visit the lender and verify.

Kabbage

Kabbage offers a credit line of up to $150,000 with no credit score required. The catch is that the interest rate is between 32% and 108%. The business must have been in existence for at least one year and have revenue of at least $50,000.

The interest rate is very high. This is really only an option for those businesses that cannot get financing due to a low or nonexistent credit score and need funding immediately.

StreetShares

There is a credit line available here of up to $100,000. A business must have what they consider to have “reasonable credit.” It also must be in business for at least one year and have more than $25,000 in revenue. Repayment is weekly.

Due to the lower revenue requirement, this is a good option for smaller businesses with okay credit scores but lower annual revenue. Also, the interest rate minimum is lower, with the low end at 9%.

OnDeck

If you have a credit score of at least 600 you can get a credit line of up to $100,000 with OnDeck. There is a $20 per month maintenance fee and weekly repayment. The interest rate is a little higher here than with those that require a higher credit score minimum. It ranges from 13.99% to 39.99%.

Again, due to the higher interest rate, this should only be an option if you cannot meet the higher credit score requirement.

Lending Club

The credit line offered by lending club goes up to a limit of $300,000. It requires a credit score of 600. In addition, at least one year in business and at least $50,000 in revenue are necessary. The repayment term is 25 months, and they require collateral for limits over $100,000.

This is a good option for those that meet the requirement as there is a higher limit available with collateral, and the interest rate can go as low as 6.25%. The repayment terms are much friendlier as well.

Credit Line Hybrid: Another Option

A credit line hybrid is revolving, unsecured financing. It allows you to fund your business without putting up collateral, and you only pay back what you use. It even works for startups.

What are the Qualifications?

How hard is it to qualify? It’s probably easier than you think. You do need good personal credit. That is, your personal credit score should be at least 685. In addition, you can’t have any liens, judgments, bankruptcies or late payments. Also, in the past 6 months, you should have less than 5 credit inquiries, and you should have less than a 45% balance on all business and personal credit cards. It’s also preferred that you have established business credit as well as personal credit.

If you do not meet all of the requirements, all is not lost. You can take on a credit partner that meets each of these requirements. Many business owners work with a friend or relative to fund their business. If a relative or a friend meets all of these requirements, they can partner with you to allow you to tap into their credit to access funding.

Business Credit in a Recession

When you apply for the best business line of credit in a recession, consider using your business credit rather than personal credit. Some lenders will require you to use both. If you can get a credit line on your business credit only, that is best. If not, strong business credit can help negotiate better terms and rates.

Learn bank rating secrets with our free, sure-fire guide which can even help during a recession.

Not sure what business credit is, if you have it, or how to get it? Here’s a quick rundown. Business credit is similar to your personal FICO, but it is for your business only. It is not attached to your name or social security number, but rather to your business name and EIN.

The most commonly used business credit reporting agency is Dun & Bradstreet, but there are others. With Dun & Bradstreet however, you must have a DUNS number to have a record with them. If you do not have one, you don’t have a D&B business credit report.

You can get a free DUNS number on the D&B website. Before you do, your business must be incorporated. It also must have dedicated, separate contact information that is not your personal contact information. You can find out more about incorporation options and how to get a free EIN on the IRS website.

It is Possible to Find the Best Business Line of Credit in a Recession

A business line of credit is a great financing option. It offers flexibility that isn’t always available with a term loan. Interest rates are often better than those offered by business credit cards. With alternative lenders in the mix, a line of credit is an option for most small businesses even during a recession.

The post How Does Your Garden Grow? Best Business Line of Credit in a Recession appeared first on Credit Suite.