Business Credit Top 10 To Dos

7/28/2019 Business Credit Top 10 To Dos

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Top 10Things You Must Know

To Get Business Credit


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Copyright 2012. GrowBiz Credit. Unauthorized Reproduction is Prohibited.www.growbizcredit.com

Way To Go!

THE WONDERFUL WORLD OF BEING BOSS

So now that you have decided what you want to do and have taken the courageouslyawesome step of going into business for yourself, you must be commended. Manydream about doing it, but never get around to doing it. Now, if you still are on the fenceabout starting a business, I say just go for it. Nothing ventured, nothing gained.

When doing business, there are many things you must do to make sure your company issuccessful. Offering the right product and services, finding customers, marketing and soon. In addition, everyone understands it takes money to make money, but it is notalways easy to find it, especially for business needs. This is where business credit helpsbig time.

Business credit is a resource that can help grow your business and also see you throughchallenges that are sure to come along the way. The problem is most small businessowners dont really understand it and there is not much clear information out here aboutobtaining business credit. We are changing that with our Biz Credit 1-2-3 Program. Wemake it simple and easy to learn how business credit works and of course, how to get it.

To get the most out of this report we suggest that you read it through from beginning toend to get a good understanding of what business credit is all about. Promise, it wontbore you. Im sure you are pretty excited about getting money for your business, so feelfree to dive right in.

I wish you continued success.

Derrick Noble
http://www.growbizcredit.com/http://www.growbizcredit.com/http://www.growbizcredit.com/


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Table of

Contents

TOP 10 THINGS YOU MUST KNOW PAGE

1. Business Credit Defined 4

2. Business Credit is Important 5

3. No Personal Guarantee 6

4. Business Compliance 7

5. Dealing with Banks 8

6. Dun & Bradstreet 9

PAYDEX Table 10

7. Experian & Equifax 11

8. Where Do I Get Credit 12

9. What's On Your Report 13

10. Avoiding Costly Mistakes 14

11. The Best Time To Start Building Credit (Important Extra) 15

Next Steps 16


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Business Credit

Defined

WHAT IT IS BUSINESS CREDIT?

If you are business owner or about to start a business, you probably have heard ofbusiness credit, but you may not be able to tell anyone exactly what it is if you wereasked to do so. If not, thats okay. Thats what we are here for.

Business credit is simply credit obtained to be used by a business entity. It is issued inthe name of the company and approvals can be based solely on the strength of thebusiness credit. This form of business credit is known as Corporate Credit in which thebusiness organization is solely responsible for the business debts. We will discuss thatmore in depth later.

On the other hand, an officer or company representative may be asked to personallyguarantee (PG) a business debt, which means if the business debts are delinquent andgo bad, then the guarantor is personally responsible and their personal credit rating andpossibly assets may be affected. When you PG a business credit account it does notusually show on your personal credit, unless you become seriously delinquent or default.

According to the SBA, one of the top reasons for business failure is lack of capital.Having credit readily available improves the odds of your business being a success andgrowing into the future. With our proven Biz Credit 1-2-3 Program you can make thishappen for your company.


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Business Credit

Is Important

WHY BUSINESS CREDIT IS IMPORTANT

As stated earlier, one of the primary reasons small businesses fail according to the SBAis lack of capital. Having it can make all the difference in the world.

Here are just a few advantages of having credit for your business:

Obtain working capital, goods and services for operating expenses and expansionneeds. Most business credit providers expect you to have business credit.

Preserve business cash flow and personal funds. Protect personal credit rating.

Separate personal and business expenses and debts. Eliminate or reduce personalguarantees and protect personal assets from business debts and obligations.

Business credit allows you to maintain and track business expenses for goodfinancial record keeping.

Establish business credibility in the eyes of creditors, suppliers, and peers.

Improve funding success and receive better rates and terms.

Obtain credit cards, lines of credit, vendor accounts, vehicles, loans and leases,even without a Personal Guarantee.

Business credit does not appear on your personal credit, thus keeping Debt-to-Credit

(DTC) ratios low. This helps to keep personal credit scores high.


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No Personal

Guarantee

BUSINESS CREDIT WITHOUT PERSONAL LIABILITY

One of the best things about obtaining business credit for your company is that itspossible to obtain credit without having to personally guarantee a debt. For instance,when you provide a personal guarantee business credit and the business is unable topay, you are liable for the debt. While providing a personal guarantee is sometimesunavoidable, it is usually best to provide it only when necessary.

On the other hand, not providing a personal guarantee for business credit means thebusiness debt is solely based on your companys ability to pay. This is also is known asNo Personal Guarantee (No PG), Corporate Only, or Corporate Liability. Corporate Onlycredit is most ideal for every business owner since you are not personally responsible forbusiness debts and obligations.

HOW TO GET NO PG CREDIT

You probably are wondering where can I get credit without a personal guarantee andhow to go about doing it? There are many creditors and vendors that issue creditwithout a personal guarantee or even a personal credit check. We offer an extensive listof places to obtain No PG credit and the best way to go about getting it in ourBiz Credit 1-2-3 Program.

With our program, we show you what creditors to approach and how to do it, so youdont make mistakes like many entrepreneurs do in the beginning.
http://www.growbizcredit.com/http://www.growbizcredit.com/


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Business

Compliance

BEFORE YOU START BUILDING BUSINESS CREDIT

It can be exciting thinking about receiving all the credit you need for your company, but itis always important to have a plan and do things correctly before you go down the road.It is important to make sure your business is in compliance in the corporate world. Notdoing so can cause red flags.

If you are already in business, you will want to make sure you are structured properly.Corporations and LLCs are often the preferred entity types. I go into which type hasserved us best and why in our Biz Credit 1-2-3 Program. Also, when deciding on acorporate structure, you may wish to consult with a CPA or attorney as business needs

may vary from one company to the next.

Another thing to be aware of is making sure all the company information matches up thesame everywhere it is found. Business credit bureaus and lenders have hundreds ofautomated checks they perform to make sure your business is up to par. You need aphone, proper licenses and the list goes on. Is your business ready to pass the test?

We cover all the requirements you need to meet in Biz Credit 1-2-3 to make sure youpass all tests with flying colors. If you fail, it could prevent you from ever gettingfinancing under your business. With our program, you can keep that from happening.


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Dealing WithBanks

HOW THE BANKS OPERATE

Getting the credit you need for your business can be stressful if you are not prepared togive the bank what it wants. The first important reference you will need is to open up abusiness checking account when you start your business. But what other things arebanks and vendors looking for when considering you for credit?

Lenders have as many as 20 checklist items they go down when considering yourapplication for approval.

As sample of items examined include:

411 Listing Dun & Bradstreet Credit Rating Dun& Bradstreet PAYDEX Score Experian Intelliscore Equifax Commercial Score Sufficient Bank Account Balance Rating Having least (5)Trade References

Being unprepared in any of the above areas can lead to a decline. Furthermore, if yourbusiness credit is not strong, you may be asked to provide financials, tax returns, andpersonal financial statements, including assets used for collateral.

However, with good business credit established, your approval is often based on yourbusiness and not you personally. Our Biz Credit 1-2-3 program shows you how to

provide the banks what they want so you can get what you need.


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Dun &

Bradstreet

UNDERSTANDING THE BUSINESS CREDIT BUREAUS

To help you understand the world of business credit, what better way to start than tointroduce the three main business credit bureaus who help creditors decide if yourbusiness is creditworthy. We will start with the bureau most are familiar with.

DUN & BRADSTREET

Dun & Bradstreet (D&B) is the oldest, largest, and most recognized business creditbureau. D&B issues this unique 9 digit number called a D-U-N-S Number that identifiesyour business. You will need it to apply for credit and government contracts.

D&Bs credit rating system uses several methods it uses to establish your overall creditprofile, but one of the most familiar ways is the PAYDEX Score. It basically shows howquickly you pay your bills. It is similar to the personal credit in this aspect.

If you pay promptly before your due date then you can achieve an 80 PAYDEX which isexcellent. Anything over 75 is considered good. The scale ranges from 1-100. This is

just one aspect of having a good D&B profile, but this is a good place to start and a morefamiliar score. You will need to understand other key elements which we explain in ourBiz Credit 1-2-3 Program.


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PAYDEX Chart

Heres an example of one of the more well-known business credit scoring systems, take

a look at D&Bs PAYDEX Table. You want to achieve at least an 80 PAYDEX which isexcellent, but it is possible to score higher.

Take a look:

D&B PAYDEX Table:100 Anticipate90 Discount80 Prompt70 15 days beyond terms60 22 days beyond terms50 30 days beyond terms40 60 days beyond terms30 90 days beyond terms20 120 days beyond termsUN Unavailable


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1

Experian &Equifax

EXPERIAN BUSINESS

Experian is another important bureau that provides business credit scoring. Experianprovides a report of the total percentage of on time and late payments made by acompany. Payments are broken down into current payments, 1-30 days late, 31-60 dayslate, 61-90 days late, and 91+ days late. With this information they generate what iscalled an Intelliscore based on a scale of 1-100. A good score to aim for is 90 onExperian Business. This can be achieved in a reasonable amount of time with the rightreporting creditors. For example, you need a good Experian Score for many Citibankbacked creditors and to obtain cash credit.

EQUIFAX COMMERCIAL

Equifax is the newest business credit agency, but they are proving to be very importantto your overall business credit efforts. Equifax has developed the Small Business CreditRisk Score. This evaluation is based on a combination of reported financial transactions,including banking, leases, trade accounts, public records, as well as the demographicsof the business. The Financial Services Credit Risk Score assigns a score from 101-992.The higher the score the lower risk of delinquency. A 650 or higher score is good.

BUSINESS CREDIT BUREAU SUMMARY

With our Biz Credit 1-2-3 Program, you will understand how the bureaus work and how

to build and increase your business credit scores with all three agencies.


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Where Do I Get

Credit?

MANY BUSINESS CREDIT PROVIDERS

No matter what industry you are in, you can greatly benefit from business credit.Whether you need office supplies, equipment, advertising, loans, leases, or credit lines,business credit can help you get what your business needs to grow. Most lenders thatissue personal credit provide business credit as well. We provide a well-compiled list ofthem to you in Biz Credit 1-2-3.

MAKE SURE YOUR PAYMENTS COUNT

If you desire to build your business credit the fastest, it is important to obtain credit from

creditors and vendors who consistently report to the business credit bureaus. It isestimated that there are 400,000 creditors and vendors that grant business credit but asfew as 500 actually report. This is key.

Doing business with the ones that report your good payment history, is crucial when youare first getting started. Because we have built many companies over the years, weknow which vendors and creditors report to get your business credit jump started.

Our well researched No Personal Guarantee List is included in our Biz Credit 1-2-3Program. We also show you the best vendors to start your building credit with and whowill report your payment history. These key vendors are critical in putting your businesscredit efforts on solid foundation from the very start.


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Whats On Your

Report?

WHATS ON YOUR BUSINESS CREDIT REPORT?

It may surprise you that most business owners do not know what their current businesscredit reports reveal. If this is you, then dont worry. You are not alone. Business credithas been somewhat of a mystery for a long time, but we are helping to change that.

It is not difficult to obtain your business credit reports from D&B, Equifax Commercialand Experian Business. You may be asked to pay a small fee to obtain your reports inthe range of $29-$59, but there are sometimes ways to get this information for free.

Your business credit reports contains:

Credit Ratings & Scores Suits, liens, or judgments on your business Score Changes Financial Statement Changes Any significant changes affecting your business

Once you obtain your reports, you will be able to see where your company stands. Thisis the first step. Each business credit bureau has there own style of report, so it isimportant to know whats on all of the three main bureaus.

If you do not have a business credit report establish yet, then thats perfectly okay. OurBiz Credit 1-2-3 Program can help you start one up.


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Avoiding Costly

Mistakes

DONT FALL IN THE SHORTCUT TRAP

Sometimes I am asked, How can I get $50,000 line of credit now? The question is notunreasonable except there is a slight problem. You just started a business a month agoand do not even have the basics down when it comes to building corporate credit. I think$50,000 is a ways off, dont you?

Now this is not meant to discourage anyone, because with the right steps and effort youcan build a lot of credit for your company. Even start-ups, but this all brings me to thepoint of not doing anything unwise to kill your credit efforts.

One unwise thing that people like to try in effort to speed up the credit building process isbuying trade lines or trade references. For a price, some companies will sell andreport trade lines and credit history for services or goods you have never received. Thisis fraud, so dont do it.

If your company is found out by D&B or potential creditors, your entire company can getred flagged. Once that happens, there is no fixing it. Ive seen it happen. Not pretty.You can lose time, money, and all your company credit youve worked hard for.

So the wisest thing to do is follow the simple step-by-step in Biz Credit 1-2-3 and buildyour corporate credit the right way the fastest. You will be glad you did down the road.


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The Best Time

To Start

DONT WAIT OR IT MAY BE TOO LATE

There is a common saying that banks do not lend to you when you really need credit, butwhen you dont. Truer words have never been spoken.

Banks and credit granting vendors want your business for sure, but they also want tominimize risk. With that being said, they prefer granting credit to companies they believewill repay the debt on time. Having a strong business credit history makes it easier forthem to say Yes.

Therefore, it is critical that you start building business credit now and dont put it off.Now, I can hear some of you saying I need credit now and I dont have time to buildbusiness credit. Trust me, I really understand where you are coming from.

However, I submit to you that if you do not start to build it now, where will you be in sixmonths down the road and have not done anything to build credit? I think you know theanswer to that.

Again, nothing ventured. Nothing gained. There is no time like the present to start. OurBiz Credit 1-2-3 Program puts you in the driver seat to get the credit your businessneeds.


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Next Steps

GET STARTED NOW

We offer the most concise information on business credit on the market and break everything down for you. Building business credit is not rocket science and we provide you aclear roadmap to follow with our Biz Credit 1-2-3 Program.

Dont worry. No fluff here. Biz Credit 1-2-3 is packed with solid, practical, and easy-to-follow steps to obtain all the business credit you want. Furthermore, the price isridiculously affordable for what we offer. We should really raise it. Most chargethousands for the tips and strategies we provide. However, you wont have to payanywhere near that with Biz Credit 1-2-3.

Now is the time to take action and start building the business credit your company needsto make more money and grow. Order Biz Credit 1-2-3 and start right away!
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Documents

Business Credit Top 10 To Dos