Building Business Credit for Small Business
Tired of putting your personal guarantee on those credit applications?
I’m sure you realize the whole purpose behind the PG is to ensure that if your business fails to repay the debt then you as an owner assumes personal responsibility.
While the majority of creditors add this extra level of protection to minimize the risk of loan defaults not all types of commercial credit sources require it.
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What’s the #1 reason to build business credit with no personal guarantee? 
For starters you’ll finally stop putting your personal credit and assets at risk when securing the financing you need for your business.
Secondly, you can expect to qualify for much larger amounts of financing since businesses have 10 to 100 time’s greater credit capacity than individuals.
So are you ready to get started?
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Did you know that you can obtain 10 to 100 times greater financing as a creditworthy business then you could using your personal credit? More importantly would you prefer to stop putting your personal credit and assets at risk every time your company needs capital?
If so, then watch my short video recording with Dun and Bradstreet covering the following question:
How do I obtain business credit wihout a personal guarantee?
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After presenting to REIA of Macomb last week it was clear to me that building business credit was a HOT topic for real estate investors. It was interesting to find that small business owners and real estate investors have similiar questions when it comes to business credit.
As a result of the economic downturn many find themselves being faced with less than perfect credit. While credit repair companies are springing up all over the country there are few like United Credit that can truly deliver.
But in the meantime can you start building business credit with bad personal credit?
Absolutely!
There are vendors, suppliers, leasing companies, and even cash credit issuers that will extend credit to your business solely based on your businesses credit rating. In order for you to obtain cash credit without a personal guarantee first requires you to start establishing strong business credit with vendors & suppliers.
The key is identifying which vendors & suppliers offer the following:
If this part leaves you scratching your head don’t worry we have all this work already done for you if you’re interested. As long as you understand the fact that cash credit without a personal guarantee can only happen once you have established a strong business credit profile.
Here’s a quick comparison on personal credit vs. business credit.
As you can see there are HUGE differences and the one in particular that should get you really excited is the unlimited amount of business credit files you can establish!
For a complete list of our preferred business credit sources join my business credit community today!
Remember – Abundance is not something we acquire. It is something we tune into. ~ Wayne Dyer
To Your Success!
Marco Carbajo
About the Author
Marco Carbajo is a business credit specialist, author, speaker, and founder of http://www.startbusinesscredit.com . Want to learn more about how to build business credit and obtain unlimited financing for your business? Claim Marco’s popular FREE business credit seminar ($597 Value), available by simply submitting your email below =>
While small business credit card usage is on the rise according to the 2009 Small Business Credit Card Survey the majority of all small business owners fail to understand the importance of what’s in the fine print.
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.
I hope to provide you with some insight into business credit cards and what you should pay close attention to when applying.
First, you should be aware that there are over 500 business credit cards available in the marketplace but less than 70 report your payment history to the business credit bureaus.
In addition, there are less than 40 business credit cards that will extend cash credit cards to your business without a personal guarantee.
Here are my ‘Top 4 Types of Business Credit Card Applications’ you should know about
The Business Credit Card Wannabe
This business credit card is by far the worst and in my opinion very misleading. It doesn’t matter how much fluff or creative sales copy is used by these particular companies what matters is what’ in the fine print! In a nutshell this business credit card application is nothing more than a glorified personal credit card.
How to identify?
The application requires your personal information, social security number, and business name only. No Tax ID# or Duns# is required.
Disadvantages
Personally liable for all debt
All charges and debts are reported on personal credit files
Impacts personal debt to credit limit ratios
The Business Credit Card Poser
This business credit card is doing its best to be a true business credit card but it doesn’t quite make the grade. In a nutshell this card still requires a personal guarantee but what makes it appealing is the payment history and credit card balance are solely reported to the businesses credit reports not personal.
How to identify?
The application requires your business information, Fed Tax ID#, Duns#, personal information and social security number.
Disadvantages
Personally liable for all debt if the business defaults
The True Business Credit Card
This is the real deal business credit card and what truly represents what every business owner should have. A card that is tied to the business and completely separate from personal credit. This card is the best of both worlds! The payment history and balances report solely on the business credit reports and there is no personal guarantee keeping the liability strictly tied to the business.
How to identify?
The application requires your business information, Fed Tax ID#, Duns#, personal information but no personal social security number. (No personal guarantee)
Disadvantages
NONE
*Keep in mind there are also business credit cards that allow you to apply with business information only and no personal credit check. However, if you’re business credit scores and files are not strong enough they may require a personal guarantee for approval. I call this the ‘Two Faced Business Credit Card’.
Looking to rebuild 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’.
