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Business Credit Builder Unlocks Corporate Credit for Small Business

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Business Credit BuilderBusiness Credit Builder

 
Have you been sitting on the fence when it comes to building business credit?

Are you confused on where to start?

Is it because you think it’s too difficult or takes too much time?

Building small business credit for a start-up or existing business can seem like it requires a great deal of time or appear difficult to do, but the good news is it doesn’t have to when you have access to a business credit building system.

Today’s post is a bit different because rather than cover the ‘Why’ I want to talk about the ‘How To’ when it comes to building business credit. The reality is one of the biggest roadblocks preventing entrepreneurs and small business owners from getting started is where to begin, what exact steps need to be taken, and where to find the best creditors, suppliers, and lenders.
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Top 10 Myths about Building Business Credit- Part 1

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Business Credit Building MythsBuilding Business Credit Myths

 

Building business credit is one of the greatest opportunities for small business owners. It provides our business with the ability to obtain financing for unforeseen expenses, operations, expansion costs and investments.

There’s so much going on with building corporate credit that there are several different fields devoted to servicing it, including business credit cards, small business loans, accounts receivable factoring, merchant account cash advance, business lines of credit, equipment financing, secured/unsecured loans and many others.

These types of financing have been around for a long time, so you’d think that by now we would know all there is to know about building small business credit. After years of studying and applying every aspect of it, there are still many facets of business credit that remain secretive. And because building business credit is complex, we tend to simplify information about how it works in order to make it more understandable.

This has resulted in many myths about establishing business credit. Let’s look at the 10 myths that have been circulating about business credit, beginning with, of all things, its starting line.

10: Sole proprietorships can establish business credit

A sole proprietorship is not considered a separate legal structure. Instead, it is considered a personal extension of you so you don’t have any protection from them. So every time you apply for credit for your business you will need to supply your social security number as the number that identifies your business.

As a result you are 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.

9: Using personal credit for business has no effect on the corporate veil

When you use your personal credit for the benefit or operation of your company it can lead to an “alter-ego” decision by regulatory or a financial organization, and a piercing of the corporate veil. This would directly endanger the owner’s personal assets and make the owner or owners directly liable for the penalties or repayment of any debts incurred by the business or corporation.

8: Obtain unlimited business credit for real estate investing

There are certain industries like real estate investing that are flagged as a high risk with the business credit bureaus. If you plan on investing in real estate then you will want to make sure that the company you are building corporate credit for is not “real estate investing”. Most banks will automatically turn you down because your company is operating in a high risk industry. You still will be able to invest in real estate but you may have to set up a business that does business development, business management, business consulting, marketing & advertising, training and development, etc. and then operate your real estate investing from a separate division of the company.

7: Credit repair is illegal and cannot be done.

False.  Consumers have every right to repair their own credit in accordance with the Fair Credit Reporting Act. If you choose to use a credit repair company be sure to verify their track record with the BBB. Also, if you are paying for the service before its rendered be sure the company is in compliance with the Credit Repair Organizations Act (CROA). *Non Profits and Credit Union Service Organizations (CUSO) are exempt from CROA.

 

Read part 2 of the  Top 10 Myths about Business Credit

 

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To access business credit insider secrets, premium vendors, leasing companies, business credit cards, and lenders that report to all the major business credit bureaus become a member of my Business Credit Insider’s Circle. Submit your name and email below for details and receive a free audio seminar ($597 value) =>

Marco CarbajoMarco Carbajo is a business credit specialist, author, speaker, and founder of the Business Credit Insiders Circle. 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.  

Business Credit Builder: Dun & Bradstreet Product Review Part 2

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Business Credit Builder

 

On the previous post I reviewed two business credit builder products at Dun & Bradstreet that were great for start-ups and companies that had a few trade experiences they wanted to add to their credit profile. In this post I’m going to cover two more advanced products that have received a makeover that’s definitely worth mentioning.

Now remember that obtaining a DUNs number does not cost anything to your company but receiving your number can take over 30 days if you choose the free route. However, you can obtain your DUNs number in less than 24 hours by either purchasing one of its business credit builder programs that I’ve reviewed or if you are a government contractor, government vendor, or grant recipient.

Let’s take a look at these business credit solutions and how they can help build company credit for your business.

DNBi Self Monitor Plus Inquiries

Price $799

This product is similar to the DNBi Self Monitor Basic except that it allows you to submit up to 24 references over a period of 3 months for a total of 12 payment experiences to be added. The basic version allows you only a total of 4 payment experiences to be added. They provide this extra cushion just in case they are unable to contact one of your references for payment experience verification.

In addition you have the ability to track the inquiries that others are making into your business credit file. This is a great way to make sure you are up to speed on the latest information that vendors, banks, suppliers and customers are seeing and an effective way to determine if your business is generating the positive interest it needs in the marketplace.

If you choose to purchase this product then most likely they will waive the DUNs File Creator fee so don’t hesitate to request it. This product is ideal for you if you already have existing trade references that you want to add plus closely monitor the activity and inquiries on your file.
Some other product features include:

• Key D&B scores & ratings including D&B Rating, Financial Stress Score, Commercial Credit Score and Supplier Evaluation Risk Rating.
• Comprehensive overview of payment history including D&B’s PAYDEX
• D&B’s Credit Limit Recommendation
• Financial performance including Key business ratios that measure financial strength.
• An overview of public filings including Suits, Liens, Judgments and UCC filings.
• Notification (alerts) when significant changes occur within your credit file.
• Easy-to-use web-based interface

* Tip – there are business credit builder companies like the Business Credit Insiders Circle that provide access to vendors, suppliers, business credit cards and companies that report to DNB for building small business credit.
DNBi Self Monitor Premium

Price $1,399

This product is the grand daddy of DNBs business credit solutions. In my opinion it’s a big upgrade to DNBi Self Monitor Plus Inquiries product because it allows you to submit up to 200 references over a period of 6 months for a total of 100 payment experiences to be added. The ‘Plus Inquiries’ version allows a total of 12 payment experiences to be added. That’s 88 additional references you can add with this product and 6 months time frame to do it.
Some of my members who have been in business for years and have just now realized they needed to build a business credit history found this product to be a no brainer. Since they already had long standing relationships with many companies they quickly had the ability to add dozens of trade experiences to their files and create a paydex score of 80+ in a matter of weeks!

*Tip – there are credit builder companies like BCIC that report your payments to a business credt bureau. Not only do they give you access to vendors, suppliers, business credit cards and companies that report to DNB but they also help you build business credit history too!

If you decide to purchase one of these DNB products or need some guidance regarding the status of your DNB report then call Dun & Bradstreet at 866-203-3151.

I hope that you found these product reviews to be helpful to you in getting started in building small business credit for your company.

 

To access business credit insider secrets, premium vendors, leasing companies, business credit cards, and lenders that report to all the major business credit bureaus become a member of my Business Credit Insider’s Circle. Submit your name and email below for details and receive a free audio seminar ($597 value) =>

 

sp_image-435950341-1242740704.pjpegMarco Carbajo is a business credit specialist, author, speaker, and founder of the Business Credit Insider’s Circle. He is 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.  
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