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Building Business Credit for Small Business

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Business Credit Building Made Easy: Free Blueprint for SMBs

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Business Credit Building

Building a creditworthy business is essential for small business owners today. As you know the strength of your FICO® score impacts your ability to acquire personal credit. But did you know the FICO® SBSS Score, Paydex® Score, Experian Business Credit Score℠ and Equifax Business Credit Risk Score℠ impacts your ability to obtain business credit? business credit building

“Just as your personal credit has a big impact on your financial health, your business credit can help you get competitive business loan rates and terms from potential suppliers,” says Marc Kirshbaum, president of Experian’s Business Information Solutions group.

Now the task of building credit for your business doesn’t have to be a long drawn out process. Instead you can take a proven and systematic approach containing a series of steps in order to establish a creditworthy business. Jeff Stibel, CEO of Dun & Bradstreet Credibility Corp. says, “Today, it takes a very proactive approach to building a strong credit score for your business.”
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How to Get Business Credit Cards Without Personal Guarantees

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Business Credit Cards Without Personal Guarantees

Are you surprised that in your search for business credit cards, everywhere you look a personal guarantee is required?

Why is it that the majority of lenders, banks and credit card issuers require a personal guarantor? business credit cards without personal guarantees

Bottom line it’s all about minimizing risk.

Let’s look at it from a bank’s perspective. A personal guarantor (also referred to as a co-signor) provides a level of security that in case the business fails to repay; the guarantor (business owner or credit partner) will guarantee repayment.  In a way, a personal guarantor is like collateral because the guarantor is the pledged security as opposed to hard assets such as real estate, stocks, bonds, equipment, etc.
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Make a Simple Profit and Loss Statement: Knowing Numbers

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Simple Profit and Loss Statement

Do the majority of small businesses fail because of lack of capital?

According to Bloomberg, 8 out of 10 entrepreneurs who start businesses fail within the first 18 months. That’s a whopping 80%!

But why? What can you learn from all of those failing companies that you can apply to your own business so you can improve your chances of success? profit and loss statement

Let me be the first to say that one of the main reasons businesses fail is because they run out of cash.  So having access to business credit lines and funding sources is an essential component to long lasting success but it’s not the only thing that’s important.

Another key ingredient is knowing your numbers.

In a recent article that I wrote for the SBA titled the ‘5 Pillars of Small Business Success’, I went over the importance of having a profitable business model. Without nailing down your numbers your business can end up on the chopping block.  Bill Gates co- founder of Microsoft says “Know your numbers; it is a fundamental precept of business.”
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Net 30 Business Credit Accounts Are Online Everywhere, Choose Wisely

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Net 30 Business Credit Accounts

Don’t apply for net 30 accounts for your business until you read this post.

Now I know you can easily search on Google to find business credit accounts online; in particular net 30 accounts, but the reality is not all the results you see will truly help build up your business credit reports. net 30 business credit accounts

Let me be the first to say that the net 30 business accounts you obtain should be from vendors and suppliers that offer products and/or services that your business can actually use. It makes no sense to apply for credit with a vendor that has no products your company needs.

Just the other day a business owner told me that he didn’t have an extra $300 a month to spend on products to build his company’s credit. I told him that he was totally missing the point of building credit for his business. It’s not about going out and buying stuff you don’t need so you can establish trade-lines. Instead, it’s about getting credit that your company already uses or could use to build and grow.
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