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Building Business Credit for Small 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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Prepaid Business Cards are Lifesavers for Small Businesses

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Prepaid Business Cards for Small Business

Are you worried about the potential misuse or abuse of a company credit card that you issue to employees?prepaid business cards

Unfortunately, credit card abuse among employees is not only a problem for small business owners. It’s a problem that major corporations and even government agencies are facing today. For years, our federal government has struggled to provide sufficient oversight over its government credit card programs resulting in widespread abuse.

Recently the Environmental Protection Agency has come under fire for a lack of oversight over its government charge cards. In March, the EPA’s IG said some of the agency’s employees had used their federal charge cards to buy personal items like gym memberships for themselves and family members, expensive dinners and DVDs.

The problem surrounding all of this company-issued credit card abuse is basically a lack of oversight and spending control. So what’s the solution?
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The FICO SBSS Business Score Revealed

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FICO SBSS Business Score

Do you know FICO® small business scores are being widely used today?

I’m guessing that you just did a double take when you saw that your business has a FICO® score. Although you’re probably no stranger to your own personal FICO® Scores, did you know that business scores issued by FICO® are nothing new? FICO SBSS Business Score

Hundreds of financial institutions use these scores when making small business credit decisions. Since 2003, the Small Business Administration (SBA) has used the Small Business Risk Portfolio Score in its 7(a) and 504 loans programs. It’s also used the FICO® SBSS score since 2007 for small business borrowers.

David Lightfoot, vice president of product management at FICO®, says “It gives small business credit grantors the strongest predictor of credit risk relative to other small business scores, enabling them to pursue profitable growth strategies, adapt quickly to changing market conditions and make more competitive offers to small business borrowers.”
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