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www.Cash4Impact.com, narrated Powerpoint presentation, Why and How to Build Business Credit, discusses why business owners should completely separate their personal and business credit. It then explains how to build the business credit. [email protected], 404-642-0509
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Business View
The Whys
Example
Statement
The Hows (3)
Getting Started
TheResourcefulCEO
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Building Business Building Business CreditCredit
Building Business Building Business CreditCredit
Separate Yourself from Your Business: Build Business Credit
1. Approach
2. The Whys
3. Example
4. The Hows
Business View
The Whys
Example
Statement
The Hows (3)
Getting Started
TheResourcefulCEO
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Financing PerspectiveFinancing Perspective Innovative Approach
Financing PerspectiveFinancing Perspective Innovative Approach View Your Business As
• A marketable asset• A source of long-term wealth• A creator of jobs• A source of investment income
– Yourself– Others who believe
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Business View
The Whys
Example
Statement
The Hows (3)
Getting Started
TheResourcefulCEO
Business Cash Flow & Business Cash Flow & Business CreditBusiness Credit
Business Cash Flow & Business Cash Flow & Business CreditBusiness Credit
• Cash flow is lifeblood of business. Cash comes from:
• Operations (sales – expenses)• Investing (selling assets)• Financing (banks, investors, etc.)
– Need credit for most financing
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Business View
The Whys
Example
Statement
The Hows (3)
Getting Started
TheResourcefulCEO
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Example IExample IExample IExample I
Scenario:• Your business was doing well.• Largest customer filed for bankruptcy.• Cash flow plummets.• Personal guarantees called upon.• Lose salary from business.
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Business View
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Example IIExample IIExample IIExample II
Scenario (less serious):• Company encountered recession-related
difficulties.• Want to negotiate better terms.• Business sole guarantor? Negotiate. Owner
also guarantor? Negotiation less likely.• (Remember, strong banking relationships
ALWAYS help.)
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Business View
The Whys
Example
Statement
The Hows (3)
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The WhysThe WhysWhy Build Business CreditWhy Build Business Credit
The WhysThe WhysWhy Build Business CreditWhy Build Business Credit
• Position your company as a standalone, saleable asset independent of you as owner.
• Shelter your personal assets from a business downturn, failure, or bankruptcy.
• Stronger negotiating position with banks.• Business credit inquiries, etc. can drag
down owner’s personal credit profile.
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Business View
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Example
Statement
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Wells Fargo StatementWells Fargo StatementWells Fargo StatementWells Fargo Statement
“The longer you delay establishing business credit, the longer you delay taking advantage of business loans.”
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Business View
The Whys
Example
Statement
The Hows (3)
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Seven Steps to Building Seven Steps to Building CreditCredit
The Hows The Hows
Seven Steps to Building Seven Steps to Building CreditCredit
The Hows The Hows1. Register with D&B (Dun &
Bradstreet).
2. Obtain credit cards from Staples, Office Depot, Home Depot, etc.
• Use them regularly and wisely.
3. Ensure your vendors & suppliers report your credit line to D&B.
• If you don’t have a credit line, get one.
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Business View
The Whys
Example
Statement
The Hows (3)
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Seven Steps to Building Seven Steps to Building CreditCredit
The Hows The Hows
Seven Steps to Building Seven Steps to Building CreditCredit
The Hows The Hows 4. Make sure ALL business loans are
under the business’ tax id.• Even loans based on your credit or
guaranteed by the owner.
5. Check D&B report quarterly, but no less than annually.
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Business View
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Example
Statement
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Seven Steps to Building Seven Steps to Building CreditCredit
The HowsThe Hows
Seven Steps to Building Seven Steps to Building CreditCredit
The HowsThe Hows6. Pay suppliers within specified terms.
• Make sure suppliers/vendors report to D&B and Experian.
• If they don’t report, request a Letter of Payment History and submit to D&B.
7. Provide reviewed or audited financial statements to D&B.
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Business View
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Additional Information:Solving the Capital
Equation: Financing Solutions for Small Businesses
Available on Amazon
Getting StartedGetting StartedGetting StartedGetting Started
Business View
The Whys
Example
Statement
The Hows (3)
Getting Started
TheResourcefulCEO
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Thank You!
Tiffany C. Wright
Follow my blog,
Small Business Finance Forum: http://www.Cash4Impact.com
The Resourceful CEO
Toca Family Business Services
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