Real Estate ImprovementSadaf Naz2023-03-15T11:20:11+00:00
Business Credit for Real Estate Improvement and Development
Business Credit for Real Estate Improvement and Development
What We Will Cover In This Article:
How you can immediately get business credit that’s linked to your EIN not your SSN even if you are a startup or have bad personal credit.
Then immediately start using it to get the credit you want and need from major sources like Walmart, Amazon, Staples, Apple, Lowes, Ford, Best Buy, Visa, MasterCard, Amex, and more
How you can access loans even when banks say no and even as a startup, with credit challenges, or if you lack collateral.
How to make money offering business credit and financing.
Will This Work For You?
Business credit is the only financial solution you can get regardless of cash flow, collateral, or credit
This means that ANY business can obtain it, even startups
What is Business Credit?
Business Credit is credit that is obtained in a Business Name
With business credit , the business builds its own credit profile and credit score for its EIN number.
This credit is in the business name and is based on the business’s ability to pay, not the business owners.
The business qualifies for high limit revolving store credit cards like Office Depot, Home Depot, Sam’s Club, Costco, Dell, BP, Walmart, Master Card, Visa, Amex, and auto loans.
The business becomes more lendable, providing easy access to credit lines and loans.
Business Credit Benefits
Has no effect on your personal credit and no adverse impact on your consumer scores.
Not based on consumer credit quality, get approved even with bad credit.
No personal guarantee is supplied, you’re not personally liable for your business debts.
Business credit is fast to build, get credit immediately after this webinar (4-6 months to complete the process)
Anyone can see your business reports: prospects, competitors, potential buyers of your business, and investors.
Greater borrowing ability, once you have both consumer and commercial credit.
Limits are 10-100 times higher than consumer credit (per SBA)
Get approved even when you can’t get a bank loan or alternate financing, even as a startup.
Access to loans and credit lines means you can fund your business using your profits to grow.
You can get business credit as long as you have a business in the USA.
You can build business credit for multiple businesses.
You can get business credit even as a non-profit.
You don’t have to buy bogus tradelines or shelf-cops.
Business credit quality determines:
If you will get approved for a business loan
How much you will get approved for
The terms you will pay
You can be denied financing based on business credit quality, even if you have no business credit established.
You can be issued a failing score for your business, even if you have no credit reporting, because you appear unestablished or possibly on the verge of filing bankruptcy.
Even with one account reporting, you can go from a failing score to a great score to become more lendable.
As you continue to grow your credit the business reporting agencies recommend you for more and more money, helping you get higher approvals on business credit cards, loans, and credit lines.
Step 1: Build Business Credibility
Lenders and credit issuers have a secret, unpublished set of approval standards you must meet to get approved.
If you meet these standards you get automated approvals.
If you don’t meet these standards, you will typically get denied when you apply.
You must set up your business credibly before getting credit and financing.
Set up your entity, preferably a corporation or LLC.
Stay away from business names that indicate that you’re high risk.
Get your free EIN number from the IRS.
Get the licensing you need to operate legally.
Make sure all online listing have the same information as what is on your application, the details must be congruent.
Have a professional email address and website.
Do not use Yahoo or Gmail.
Have a business address.
Virtual or home address can also work.
Do not use a PO Box or UPS Address.
Have a 411 business phone number .
Toll free number.
Step 2: Business Credit Reports
Get set up with the business reporting agencies by first seeing if you have a profile established with them.
Dun & Backstreet
Get your DUNS Number with Dun & Backstreet
Build Business Credit
A DUNS number and Paydex score are just the beginning of starting to build business credit
Fix inaccuracies and derogatory items
Step 3: Get Initial Credit
Just like with consumer credit, you can’t get credit for your business unless you have an initial business credit profile and score established.
There are three ways you can get initial tradelines added to your business reports’
The first way to to pay $1,500-$2,000 for D&B’s Credit Builder.
Only builds your D&B credit
Most trades cannot be added
If you gave good personal credit now, you can secure up to $150,00 in unsecured, no DOC, 0% financing for your business, even as a startup.
This comes in the form of five business credit cards (with cash-out capability) that report to the business reporting agencies but do require a personal guarantee.
These accounts give you five tradelines with high limits.
Vendors usually offer Net 30 terms.
You will need to find vendors who do not report to business agencies and who will approve you with no prior credit.
Five of these accounts must be reporting before you can get revolving store credit.
Starter vendors are very hard to find because 97% of trade vendors don’t report to the business reporting agencies.
You can get initial business credit with start vendors who will give you initial credit even if you have no credit, no score, or no trade lines now.
Some starter vendors include:
Wells Fargo Secured Card
Step 4: Get Revolving Credit
With five reported accounts you can start to get revolving accounts with limits 10-100 times higher than consumer credit without a personal guarantee.
These include store credit cards with most major retailers, as well as fleet credit.
Step 5: Get Cash Credit
Ten Reported Accounts
With ten reported accounts you can start to get revolving cash credit accounts with limits 10-100 times higher than consumer credit and auto vehicle financing without a personal guarantee.
According to the Bureau of Labor and Statistics, more than half of businesses will fail in 5 years or less. In addition, 82% of business failures are due to issues with cash flow, 90% of business owners agree that loans are not easily available, and 51% of small business owners worry weekly about capital.