HOW TO BUILD BUSINESS CREDIT
HOW TO BUILD BUSINESS CREDIT
- Getting money for your business is difficult.
- According to the Bureau of Labor and Statistics, more than half of businesses will fail in five years or less.
- In addition, 82% of business failures are due to issues with cash flow (U.S. Bank Study)
- 90% of business owners agree that loans are not easily available (Small Business Majority)
- 51% of small business owners worry weekly about capital (Firmament Group Study 2017).
This Article Will Cover:
Exactly how to build business credit for you EIN that is not linked to your social security number, even after changed with COVID-19.
Beat The Banks
How to beat the banks and become fundable
How anyone can get business credit for their EIN
How to get high-limit revolving corporate cards
No Credit Check
How to get credit with no credit check or guarantee
How to get approved for up to $150,000 in credit lines, even as a startup business.
This Article Will Be Helpful To You If:
Looking For Money
You are looking for money to grow your business
You have been denied financing or credit or think you will be
You want the easiest and fastest way to get capital
You want your business to fund itself
You want the blueprint to get away from personal guarantees
Start Or Grow
You want the most money at the best terms to start or grow.
How to Succeed with Getting Money
Getting Business Credit
To succeed with getting the most business credit at the best terms, set up your business where it’s fundable by meeting business lender approval criteria before applying for loans.
Business Credit For EIN
Get business credit for your EIN that’s not linked to your SSN to become more lendable and easily access other capital you need.
Improve Your Fundability
Automated Instant Approval
Have you ever applied for a business credit card and gotten an automated instant approval? Lenders and credit issuers have an unpublished set of standards in their computer system that you must meet in order to get approved for business credit.
Fundable Your Business
How fundable your business is will determine if you get automated approvals, or denied.
Even if you are fundable, most business loans applications get denied because of potential fraud concerns, not because you don’t qualify.
Some fundability factors include:
- The type of business entity you have
- The type of phone number you use
- Business or cell phone
- If your business phone number is listed in certain directories
- The type of business address your business has
- The type of business licensing your business has
- The congruence of your records
- The types of business lending references you have
- Whether your bank account is set up
- The way your website and email are set up
- Numbers you have, such as your EIN, DUNS, and BIN.
Business Lenders combat fraud by matching your company and application details against other data they have from places such as:
- Dun & Bradstreet
- The Small Business Financial Exchange
LexisNexis Reports Include:
- Every home you’ve ever owned including value and sale prices
- Building materials for your home
- HOA info such as beds, baths, and roofing
- AC Units
- Deeds and mortgages
- Title companies
- Interest rates
- Loan amounts, terms, and loan types
- Every phone number and email you’ve ever had
- All licenses, firearms, mortgages, and violations
- Traffic tickets, felonies, misdemeanors, sex offender records
- Name variations
- Marriage and divorce records
- Every vehicle owned including VIN
- Every insurance policy you’ve ever had
- Every business you’ve been associated with
- Family information including children
- Loans and leases
- Aircraft and boat owner records
- Public records including bankruptcies, judgements, lawsuits
- Education information including degrees, schools, dates attended and graduated
- Military records
- Online marketing records, and short-term credit offer request records.
LexisNexis Reports Include
- When you get a home mortgage, car loan, or personal credit card, do you think lenders and credit issuers pull your credit?
- When your business applies for money your business credit is being used to determine if you’ll get approved, how much you may get approved for, and the rates and terms that you will pay.
- Get approved regardless of consumer credit quality.
- No personal guarantee is required, and there are no consumer credit inquiries or reporting.
- Credit limits 10-100 times consumer credit.
- Get credit quickly because scores are based on payment history.
- This establishes your credibility for lenders, suppliers, and credit issuers.
- Anyone can see your business credit reports. 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 one account reporting can change 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.
- Any business can qualify for business credit, including startups, non-profits, owners outside of the U.S, and people who own multiple businesses.
- Get approved even when you can’t get any type of loan or credit line, There are no cash flow requirements, no collateral is required, and there are no consumer credit requirements.
Initial Step to Build Credit for your EIN
Cras And Credit Issuers
In order to get initial business credit, credit must report to business CRAs and credit issuers must approve with no current credit.
Personal guarantee and non-personal guarantee are both available.
Use Credit Line Hybrid to Build EIN Credit
- Get $150,000 with Credit Line Hybrid to build EIN Credit.
- Credit Line Hybrid offers 0% rates and no DOC
- You are able to take cash out, and startups and credit partners are welcome.
- There are no collateral or cash flow requirements.
- Multiple cards can be approved, typically five to eight.
- Business and standard cards are available and funding is free roll-in.
Use Vendors to Build EIN Credit
- Use vendors with no personal guarantee, no terms such as Net 30, and no credit check.
- Some trade vendors do use minimum purchase, and you must use vendors who report
- Fundability is important to approval of a vendor.
- The best reporting agencies are
- Crown Office Supplies
- Laughlin & Associates
- Supply Works
- Fundability is very important for approval.
Steps to Build Credit for Your EIN
Build Credit For Your EIN
In order to build credit for your EIN, apply for the program that best fits with the number of accounts you are reporting.
More Accounts Reporting
With five or more accounts reporting, apply for Retail Credit; with eight or more accounts reporting, apply for Fleet Credit Tier; and with fourteen or more accounts reporting and a $10,000 high-limit, get Credit Cash Tier and auto financing.
Post- COVID-19, underwriting relationships have become very important.
Authorize Personal Guarantee
Don’t authorize personal guarantee or credit check, use the credit you get, pay bills early, get loans and credit lines that report, and watch employee numbers when filing annual reports.
Submit financials to D&B.
Step 2: Business Credit Reports
As an entrepreneur, you should be able to get the money you need, when you need it.
However, not knowing approval standards, not having business credit, and not being able to access all funding options in one place is holding you back.
Credit Suite’s Business Finance Suit helps you do all three to get the most of your money at the best terms.