Business Credit

Building Business Credit for Small Business

You are here: Home / Archives for Business Credit

Business Structures to Avoid for Building Business Credit

By

Business EntityI get asked this question quite often and thought I would clear the air on what business entity selection is best for building business credit.  This step by far is the most important because it’s the foundation of your business credit.  Not to mention all the other important areas that entity selection affects such as taxes, liability, asset protection and so on.

 

As a business owner, you have four real choices when it comes to business structures for building business credit, and two bad choices:

 

    * C Corporation

    * S Corporation

    * Limited Liability Company

    * Limited Partnership

    * Sole Proprietorship

    * General Partnership

 

You can learn more about your four good choices by listening to my FREE Business Corporations Seminar.

 

CLICK HERE to listen

 

To learn why Sole Proprietorships and General Partnerships are so dangerous to you and your family, read on.

 

A Sole Proprietorship is bad…

 

Have you heard the saying “You get what you pay for?” Well, you normally don’t pay anything to start either a Sole Proprietorship or a General Partnership. Of course you don’t get anything, either. Unless you count the following as valuable business assets:

 

    * Lots of personal liability

    * No protection from your business creditors

    * An increased risk of being audited

    * Problems with valuation for a subsequent sale of the business

 

The reason for this lack of protection is because neither of these structures is considered a separate legal structure. Instead, they are considered personal extensions of you, if you are operating as a Sole Proprietorship, or you and your partners, if you’re operating as a General Partnership.

 

And, because these business types are considered personal extensions of you, you don’t have any protection from them.

 

But a General Partnership is Downright Ugly!

 

It gets even worse if you are operating with a partner as a General Partnership. That’s because not only are you responsible for all debts and agreements you enter into in the name of your business, you’re also on the hook for all of your partner’s actions in the name of your business as well. This can be devastating if your partner is financially irresponsible, and, because either of you can bind the partnership; you have zero protection from your partner.

 

If You Don’t Choose a Good Entity, the Government Will Choose a Bad One for You!

 

If you’ve been doing business up to now without a business structure, both the IRS and your state government have defaulted your business into either a Sole Proprietorship or a General Partnership.

 

And that means you’re exposed.

 

Use a Proper Business Structure – If you want to build business credit and you want to protect yourself from personal liabilities.

 

CLICK HERE to join my business credit community today and discover what cash credit and financing opportunites you can obtain for your business entity. 

 

Remember – There is one thing stronger than all the armies in the world and that’s an idea whose time has come ~ Victor Hugo

 

 

To Your Success!

Marco Carbajo

About the Author

sp_image-435950341-1242740704.pjpegMarco Carbajo is a business credit specialist, author, speaker, and founder of the National Entrepreneur Club.  Click here to visit his blog and signup free to get strategies, resources, and credit building tips with blog updates, news, and more! To start building business credit join his business credit community today and Click Here.

Business Credit Help that Can Make or Break You

By

Business Credit Help

 

One of the mistakes that I see business owners make when attempting to build business credit is not paying attention to details. I want to provide you a business credit tip that can help improve your chances of getting approved for loans, credit cards, and  lines of credit for your business.

One small detail like choosing an SIC code in a high risk classification can mean your business being flagged as a high risk with the business credit bureaus. As a result every lender, creditor, or company that pulls your business credit report will see that you’re business is in a high risk classification.

As a result many lenders will automatically decline your application! In addition, Dun & Bradstreet will minimize the credit limit recommendation for your company on your DNB file which lenders take a close look at prior to extending credit to your business.

This short video will give you these high risk categories to stay away from so you can prevent your business from being placed in a high risk classification. If you haven’t selected an SIC code or NAICS code for your entity you will need to prior to setting up your Dun & Bradstreet file.

Don’t let a simple detail like this hurt your chances for obtaining the cash credit and financing your business needs and deserves.

Every business will at one point require an influx of cash in order to cover operating expenses, expansion costs, legal fees, inventory or a range of other items it may require in order to operate. 

Another major benefit for building business credit is you’re ability to have access to capital which provides the leverage you need to purchase additional income producing assets like other businesses, real estate, equipment and so on.

The worst mistake you can make is seeking funding when your business needs it most. Lenders extend cash credit lines to businesses that are not in high risk industries, don’t need the capital and have strong business credit ratings. Start digging your well before your business gets thirsty!

Ready to start building 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 premium vendors, business credit cards, 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 audio seminar ($597 value) => 

About the Author

Marco Carbajo is a business credit expert, author, speaker, and founder of the Business Credit Insiders Circle. A business credit builder system helping business owners establish business credit with no personal guarantee. He is a weekly columnist for Dun & Bradstreet Small Business Solutions, a business credit blogger for All Business & American Express Small Business and author of “Eight Steps to Ultimate Business Credit” and “How to Build Business Credit with No Personal Guarantee.” His articles and blogs have also been featured in Business Week, The Washington Post, The San Francisco Tribune, Scotsman Guide, Alltop, Entrepreneur Connect, and Active Rain. 

Bad Credit Business Loan – Top 5 Solutions

By

Bad Credit Business LoanDuring tough economic times many business owners are faced dealing with tough personal credit challenges.  As a result they have to resort to applying for bad credit business loans just to keep their businesses afloat regardless of the interest rate being charged.

 

Hard money lenders have no problem charging outrageous fees and interest rates for taking on the risk but there are alternatives to bad credit business loans.

 

Here are my Top 5 Solutions to Bad Credit Business Loans

 

Accounts Receivable Factoring

 Factoring is a form of finance used to finance commercial, consumer, and government accounts receivable. Typically, businesses factor their accounts receivable to improve and accelerate their cash flow. Businesses that factor their invoices (accounts receivable) sell their invoices to a factoring company, usually for anywhere between 95 to 99 cents on the dollar.

 

 Business Cash Advance

 An alternative to a traditional bad credit business loan, you can receive advance cash based off your future credit card sales (Visa, MasterCard, American Express, Discover, and Debit Cards). There are no personal guarantees or collateral attached to the business advance. This allows you to have the working capital you need within 3 business days or less. There are no restrictions on how to use the money allowing you to grow your business hassle free.

 

 Business Asset Liquidation

While liquidation usually means you’re closing your business forever this can be a viable strategy to raise capital without actually closing your business. You may have equipment that you no longer use or other assets that can be sold off that can generate substantial capital for your business.

 

Personal Credit Restoration 

It’s not a shame to have bad credit because everyone at one time goes through challenges but it is a shame to keep it. Start repairing your bad credit immediately by either fixing it yourself or enrolling in a solid, reputable, and legal credit repair service.

 

Increase Credit Scores

In addition to credit restoration another strategy for solving a bad credit challenge is in improving your debt to credit utilization. You accomplish this by establishing higher credit limits with lower balances typically below 30%. When you have larger credit limits on personal and business credit reports new lenders that you apply to will tend to extend even larger credit lines.

 

Bad credit business loans do exist but before you decide to commit be sure to consider these options. If you do choose to apply or you are already in a high interest rate loan because of bad credit be sure to start restoring your personal credit. Once you improve your credit you can apply for a loan and obtain a much better rate. This will allow you to pay off the high interest rate loan and saving you thousands in interest.

 

Remember – Improve your business, your life, your relationships, your finances and your health. When you do the whole world improves. ~ Mark Victor Hansen

 

Instead of jeopardizing your personal credit and assets every time your company requires financing, you can use the business’ credit rating to secure the financing you need with even more favorable terms and lower interest rates.

 

Start your business credit today!

 

To Your Success!

Marco Carbajo

About the Author

sp_image-435950341-1242740704.pjpegMarco Carbajo is a business credit specialist, author, speaker, and founder of the National Entrepreneur Club.  Click here to visit his blog and signup free to get strategies, resources, and credit building tips with blog updates, news, and more! To start building business credit join his business credit community today and Click Here.

Start Business Credit : Top 10 Reasons Why

By

Corporation picEntrepreneurs and small business owners who have a separate legal entity for their business have a unique opportunity that no other individual or sole proprietor has.

 

It’s the opportunity to start business credit by establishing a business credit profile that is completely separate from a personal credit profile. 

 

The main problem still facing today’s small business owner is fewer than 10 percent know about or truly understand how business credit is established and tracked-and how it affects their lives and businesses.

 

Statistics even show that over 65% off all small businesses use credit cards on a regular basis; but the problem is less than half of those credit cards are actually in the business name. The others continue to use the owner’s personal credit cards for business transactions.

 

Here’s what others are saying about the importance of starting business credit:

 

“The longer you delay establishing business credit,
the longer you delay taking advantage of business loans.”

~ Wells Fargo Bank

 

“You should differentiate your personal credit from your business credit.”

~ Entrepreneur Magazine

 

“Before you apply, you should examine your business credit reports.”

~ Inc Magazine

 

 

One of the key advantages of having business credit is instead of putting your personal credit and assets at risk every time your company requires financing you would now be in a position to secure the financing you need with your businesses’ credit.

 

Here is the ‘Top 10 Reasons Why You Should Start Business Credit Now.’

 

  1. Any debt you accumulate for the business would only report to your business credit file not your personal credit file.
  2. Eliminate the co-mingling of funds–and this includes the “co-mingling” of credit profiles so you won’t jeopardize the protection of the corporate veil.
  3. Protect you and your family from personal liability when you get approved solely on your businesses’ credit file.
  4. Improve your personal debt to credit limit ratios by transferring the balances of business debt used with your personal credit to your business credit.
  5. Eliminate personal liability you have on your existing business debt by balance transfer from personal credit to your business credit.
  6. Increase your personal credit limit availability for you and your family.
  7. Improve the appearance of your businesses’ funding capacity and stability.
  8. Eliminate inquiries on personal credit when applying for business financing.
  9. Increase your businesses’ ability to obtain cash credit 10 to 100 times greater then you can obtain personally.
  10. Last but not least you SAVE MONEY! For example, an individual might pay up to 13% interest on a $100,000 line of credit whereas a business could qualify for an interest rate of 7%. That would save you almost $40,000 in interest alone.

 

Some other benefits include:

 

  • Business credit cards have much higher limits than personal credit cards.
  • Having the larger cash lines available for unforeseen expenses like expansion, equipment, operations or fulfillment
  • Prevent the risk of damaging your personal credit
  • You can build business credit even if you have bad personal credit
  • Prevent the limits that lenders will impose on you for personal credit for you and your family’s needs
  • Reduce your tax burden and improve accounting

 

Still not convinced you need to start business credit?

 

CLICK HERE to listen to a free Business Credit Seminar ($597 Value)

 

Every business will at one point require an influx of cash in order to cover operating expenses, expansion costs, legal fees, inventory or a range of other items the business may require in order to operate. The worst mistake you can make is seeking funding when your business needs it most. Lenders extend cash credit lines to businesses that don’t need the capital. Start digging your well before your business gets thirsty!

 

If you ask any business owner how they financed their business start up the answers usually are:

  • Personal credit cards
  • Tapped into home equity line
  • Personal loan from the bank
  • Personal loan from family & friends
  • Private investors

One of the many risks that business owners face is using their personal assets as collateral or guarantee for business loans and financing. If the business owner defaults on a loan then, valuable items like a car, house, or bank account can be vulnerable to creditors’ claims.

 

Instead of jeopardizing your personal credit and assets every time your company requires financing, you can use the business’ credit rating to secure the financing you need with even more favorable terms and lower interest rates.

 

Start your business credit today!

 

To Your Success!

Marco Carbajo

About the Author

sp_image-435950341-1242740704.pjpegMarco Carbajo is a business credit specialist, author, speaker, and founder of the National Entrepreneur Club.  Click here to visit his blog and signup free to get strategies, resources, and credit building tips with blog updates, news, and more! To start building business credit join his business credit community today and Click Here.

 

 

 

  

Instant Business Credit :Getting Started

By

Instant Business Credit

 

Once you have an entity structure and obtained a Dun & Bradstreet number now it’s time to start building your business credit profile. One of the biggest mistakes made by entrepreneurs attempting to build instant business credit is applying for numerous vendor accounts.

While some may have a tendency to believe that the more the merrier is a sound strategy I tend to disagree. The reason is simply getting approved for vendor credit is one thing but what really matters is whether or not the vendor reports your payment history to the business credit bureaus.

There are over 500,000 vendors extending credit to businesses, but less than 6,000 of them report to the business credit bureaus! So to build your business credit you have to make sure you choose the right vendors to apply with.

Secondly, there are vendors who do report your payment history but only on a quarterly or even yearly basis. Time is of the essence so for establishing instant business credit you have to make sure the vendor you apply with also reports to the business credit bureaus on a monthly basis!

Here are some examples of instant business credit resources:

Instant Business Credit Vendor

Quill

Quill sells office supplies, cleaning supplies, packing and shipping supplies, school supplies, printing supplies, and more. From filing and storage to hand held computers, Quill has a wide range of discounted top name brand products.

Quill offers a net 30 account and reports to Dun and Bradstreet.  Best of all they report your payment history every 30 days. For small orders you can get approved with a listing on 411 directory and have a working website. New businesses can start out with smaller limits that will increase when you pay on time every month.

Instant Business Credit Membership

Business Credit Insiders Circle

BCIC is a business credit building membership for small business owners providing a step by step business credit builder system including vendor credit lines, business credit cards, funding sources and payment reporting.

BCIC offers a monthly membership account and reports to Dun and Bradstreet. Best of all they report your payment history every 30 days.

Instant Business Credit Card 

Visa® Business Platinum Card

Capital One by far provides the fastest response for business credit approval.  (60 seconds) This card is perfect for new or established business owners who want to build business credit history.

Capital One Small Business offers a 0% introductory APR on purchases until 2010 as well as balance transfers. There’s no annual fee and credit line approvals can be up to $10k.

While you can obtain instant business credit for your business the process of building a business credit profile and score does take some time.  As long as you keep your credit lines active and maintain a solid payment history with minimal balances (less than 30%) you can expect to see your credit lines increase over time.

New credit line approvals for your business will also be larger due to favorable business credit scores and existing credit line capacity.

Looking to access instant business credit with a step by step business credit building system? A system that provides you access to premium vendors, business credit cards, funding sources and lenders that report to all the major business credit bureaus? Become a member of my Business Credit Insiders Circle. Submit your name and email below for details and receive a free audio seminar ($597 value) =>

About the Author

sp_image-435950341-1242740704.pjpeg

Marco Carbajo is a business credit expert, author, speaker, and founder of the Business Credit Insiders Circle. A business credit building membership helping business owners in establishing business credit. He is a weekly columnist for Dun & Bradstreet Small Business Solutions, a business credit blogger for All Business & American Express Small Business and author of “Eight Steps to Ultimate Business Credit” and “How to Build Business Credit with No Personal Guarantee.” His articles and blogs have also been featured in Business Week, The Washington Post, The San Francisco Tribune, Scotsman Guide, Alltop, Entrepreneur Connect, and Active Rain. 

CATEGORIES

RECENT POSTS

CONNECT WITH US