Business Credit Card Funding

In today’s post we’re going to cover everything you need to know about business credit card funding. This funding program is by far one of the easiest and fastest ways to obtain cash credit for a startup or existing business.

That’s quite a bold statement but we’re going to back up that claim in this post. Where else can you get up to $150k in unsecured credit for a business with no documentation, no personal credit reporting, plus build your business credit reports.

If you’re new to this type of funding let’s first cover what business credit card funding is. Business credit card funding is a service that acquires business credit cards under the name of the business, using the personal guarantee of the applicant.

The business credit cards obtained under our funding program only report to the business credit reporting agencies. This enables you to get access to working capital, establish a credit file for the business while protecting your personal credit at the same time.

So, let’s start with the first question most people ask.

Who is Business Credit Card Funding For?

If you answer ‘yes’ to any of the following, business credit card funding may be for you.

• Do you want to separate your business and personal expenses?
• Do you want access to working capital at any time, to use anywhere and for any business purpose?
• Do you want to protect your personal credit?
• Do you want to build your business credit?
• Do you want access to revolving sources of cash & credit?

At the end of the day, whether you’re a startup or existing business, this funding is a fast, easy and truly hassle-free way to get access to business lines of credit.

Since this is a no doc program, you don’t have to supply lots of documentation such as financials, tax returns, bank statements, etc.  All you need is the articles of incorporation, EIN letter and driver’s license to start the funding process.

Why Business Credit Card Funding?

Here are 5 reasons why business credit card funding is such a popular funding program.

Reason #1 – Cards issued do not report to your personal credit reports

This ‘dividing line’ between personal and business credit cards must be established at the credit reporting level in order to legitimize true personal and business credit separation.

The best business credit cards should only report to business credit reporting agencies. Although there are over 500 business credit cards in the marketplace less than 100 report to business credit reporting agencies.

The business credit cards issued to your company under this program do not report to your personal credit reports.  So, any debt you carry on your business cards do not impact your personal credit utilization or FICO® scores.

Reason #2 – Cards issued report to business credit reporting agencies

The cards issued under the company’s EIN report to business credit agencies such as Experian Commercial.  Typically, clients receive 4-5 cards which results in 4-5 positive tradelines reporting to the company’s credit file.

If the business does not have a credit file, this program establishes one. In addition, since there are 4-5 cards reporting, this also establishes a business credit rating for the company.

Here’s an example:

After going through the funding process this client receives 4 business credit cards with combined credit limits of $80k. Let’s say the cards issued were as follows:

1^st Business Credit Card $10k Limit Reporting (revolving)

2^nd Business Credit Card $15k Limit Reporting (revolving)

3^rd Business Credit Card $25k Limit Reporting (revolving)

4^th Business Credit Card $30k Limit Reporting (revolving)

In this example, in less than 30 days the business now has 4 business credit cards with $80k in credit limits. In addition, the company has 4 tradelines with $80k in bank issued credit reporting to its business credit report.

Reason #3 – Maximize Credit Limit Approvals

If you want to ensure that you get the highest credit limits possible for your business it’s essential to be strategic in your approach. The following five factors are what make our business credit card funding process so effective.

1. The List of Banks Selected
2. The Order of Banks to Apply
3. Timing between Application Submissions
4. Personal Credit Optimization
5. Business Factors

Reason #4 – Avoid Automatic Declines

There are only several big banks (Chase, Capital One, Bank of America, Elan, Citi, Barclays, Amex) but there are hundreds of cards across these big banks with different underwriting criteria across those cards.

There are over 100 banks/issuers alone under Elan which is the biggest underwriter.  Apart from the big banks, there are hundreds of other banks if you count credit unions and regional banks.

Certain banks will auto decline you if they see a recent inquiry from other specific banks. This is why the order and timing in how we apply through our business credit card funding program is so effective.

Reason #5 Access to Working Capital

Having access to working capital is crucial at every stage of a company’s life-cycle. Whether it’s to cover unforeseen expenses or fund expansion costs – having enough can make all the difference.

Some of the benefits include but are not limited to the following:

• Revolving source of credit (purchases, transfers, cash)
• Cash liquidation service
• Access to a preset credit limit
• You can borrow against your credit line whenever you need it, repay it, and use it again.
• Can maintain a revolving balance or pay it off
• Can pay a minimum monthly payment

What Do You Need for Business Credit Card Funding?

When you structure your business as a corporation or limited liability company it becomes recognized as a separate legal entity with the ability to enter into contracts.

Your company gets issued an Employer Identification Number (EIN) which is used to identify your business entity to the IRS, banks, lenders, suppliers, vendors and other businesses.

Your EIN is also used to create a credit file for the business with business credit reporting agencies such as Dun & Bradstreet, Equifax Small Business & Experian Commercial.

Think of your company’s EIN as the social security number for the business.

Here is what you need:

• Separate legal entity (Corporation, LLC, etc.)
• Company must be in good standing
• Employer Identification Number (EIN)
• Business Contact Information
• Business Bank Account

How Much Business Credit Card Funding Can I Get?

There are 4 main factors that impact how much funding you can acquire with our business credit card funding program. Let’s break them down in detail.

1) Personal Credit Scores – You will need a minimum of 680+ credit scores which is simply a benchmark indicator. If you don’t know your scores the first step is to order your credit report with scores for $1 at http://creditreportengine.com

It’s important to realize there are many different types of credit scores. The FICO® Score and the FICO® Bankcard Score is the most widely used. Sites such as Credit Karma, Credit Sesame & CreditWise use the Vantage Score. The vantage score is a credit scoring model created by the consumer credit agencies to compete with FICO®.

Here is a breakdown of risk factors related to personal credit scores.

• 680 – 739 Tier 3 (9% probability of delinquency)
• 740 – 799 Tier 2 (1% probability of delinquency)
• 800 – 850 Tier 1 (Less than 1% probability of delinquency)

If your credit scores are below 680 than consider using a business credit partner.

2) Overall Credit Report – Below is a list of all the factors in your credit report that impact your pre-qualification review.

• Length of credit history (Limited = less than 2 yrs.)
• Types of accounts (mortgage, installment, revolving, etc.)
• Number of active accounts (Ideal 12+ active)
• Payment history
• Recently opened accounts
• Unpaid collections (must be paid)
• Hard inquiries (ideal less than 2 past 12 months)

3) Credit Card Accounts – How you manage your personal credit card accounts help bank card issuers determine how you are most likely going to manage your business credit cards. Let’s break down the most important credit card factors on your personal report that impact your business credit card funding projection.

• Primary accounts (AUs do not play a factor)
• Size of active credit card limits ($2500 min on 1 card)
• Card issuers
• Types of cards (Store, Co-Branded, Credit Card, Charge)
• Age of accounts
• Credit card utilization (individual and overall)
• Active credit cards (how many)
• Largest credit limit (Primary/Age/Issuer)

4) The Business – The factors listed below are taken into consideration during pre-qualification.

• Age of business
• Existing bank relationships
• Applicant on original docs
• Out of state business

Be sure to check out our Top 10 Factors When Applying for Business Credit Cards where we go into depth on these business factors.

Business Credit Card Funding Mistakes to Avoid

Below is a list of the most common mistakes made that you will want to avoid. Remember, there is no shortcut to building up your personal credit to qualify for business credit card funding. That’s why we do offer personal funding for applicants who may have too thin of a credit file to participate in business credit card funding.

• Authorized User Accounts
• Jewelry Club Credit Cards
• Buying Tradelines – When you buy a tradeline, you don’t know the person. You pay them money for the access. Buying tradelines may be viewed as deceptive by lenders and credit reporting agencies, and could even put you in danger of committing bank fraud.
• Excessive inquiries
• Unpaid collection

Business Credit Card Funding Overview

• Receive 4-5 Business Credit Cards issued to the Business (only 14-20 days)
• $25,000 to $150,000 in combined credit limits
• 0% Intro APR for 6-15 months (depending on bank)
• Annual APR rates (9.9 -19.9%)
• Minimum monthly payments from 1-1.5%
• Reports only to business credit reporting agencies
• Establishes business credit file (Experian Commercial, Equifax Small Business)
• Establishes 4-5 business accounts reporting on your business credit report
• Establish 4-5 banking relationships
• Establishes a business credit score for your business

*Add’l service – cash liquidation service only available to our clients – Ability to pull 100% cash out (no cash advance rates)

How to Start the Pre-Qualification Process

Step 1: Order Your Credit Report => http://creditreportengine.com

Step 2: Download Your Report in PDF format (use print to PDF)

Step 3: Complete the Pre-Qualification Form and Upload Your Credit Report => http://businessfundingreview.com

*Pre-Qualification review takes 24/48 hours. You will be contacted via phone with business credit limit projections and next steps. Funding process takes 14-20 days.

Ready to build your business credit? Become a member of my Business Credit Insiders Circle and gain access to a proven step-by-step business credit building system. A system that provides you access to vendor lines of credit, fleet cards, business credit cards with and without a PG, funding sources and lenders that report to all the major business credit bureaus. Submit your name and email below for details and receive a free business credit building audio seminar ($497 value) =>

To Your Success in Business and in Life!

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About the author

Marco Carbajo is a business credit expert, author, speaker, and founder of the Business Credit Insiders Circle. He is a business credit blogger for Dun and Bradstreet Credibility Corp, the SBA.gov Community, Business.com, About.com and All Business.com. His articles and blog; Business Credit Blogger.com, have been featured in ‘Fox Small Business’, ‘American Express Small Business’, ‘Business Week’, ‘The Washington Post’, ‘The New York Times’, ‘The San Francisco Tribune’, ‘Alltop’, and ‘Entrepreneur Connect’.