Craze Magazine 2009
SOME TIPS ON BUILDING BUSINESS CREDIT
By Carl Agard
You can get the perfect business credit score separated from your personal credit score in as little as 120 days. Millionaires are doing this every day. For each of your company, you can have trade lines with different creditors with none of it affecting your FICO score.
With business credit, you can apply and receive accounts for the following:
Store Credit Cards (Lowe’s, Home Depot, Staples, etc)
By Carl Agard
You can get the perfect business credit score separated from your personal credit score in as little as 120 days. Millionaires are doing this every day. For each of your company, you can have trade lines with different creditors with none of it affecting your FICO score.
With business credit, you can apply and receive accounts for the following:
Store Credit Cards (Lowe’s, Home Depot, Staples, etc)
Vendor Lines of Credit
Computer Leases
Auto Leases
Business Equipment
Business Loans (SBA)
Business Lines of Credit
First, you would want to have a business entity that will allow the liability of the company separated from you individually such as an incorporation or LLC. A sole proprietorship will not allow that. Acquire a tax identification number for your company. When you apply for any type of business credit, the tax identification number will be used instead of your social security number.
For new businesses within two years, or existing businesses with very little credit, you will still need a personal guarantor to go on the application. The creditor will use the guarantor’s credit score to determine credit worthiness.
There are two business credit reporting agencies that lenders and financial institutions rely on for information to grant credit. The two credit agencies are D&B and Experian.
Over 70 million businesses are registered with D & B which uses the information provided by the owners and vendors. D & B will give a Paydex score based on the payment history of the company. D & B will also give a DUNS rating based on the financials of the company. A high risk score will hurt the borrowing ability of the company. With scores ranging from 0-100, anything over 75 is a good score for a company to have. You need at least 4-5 trade lines to report on D & B.
Another reporting agency is Experian who uses an Intelliscore. Experian is already one of the three main personal credit reporting agencies along with Equifax and Transunion. Over 14 million companies are registered with Experian. Their credit score ranges from 0-100 as well with anything over 75 as a good score. You need at least two trade lines to report to Experian.
It does not make sense to own a business and do not understand how to build your business credit and improve your Paydex and Intelliscore. It’s like buying a home or a car and not knowing your FICO score. Why use your personal credit to finance your business when you don’t need to.
Matter of fact, some business credit cards were easier to get than a personal credit card. So I suggest, after you get incorporated and get your tax identification number, start working to build your business credit by applying for credit. And don’t forget to register on D & B and Experian.
Carl Agard has created over ten successful business ventures from the age of 16. From owning a hot dog stand as a teenager, to now operating real estate and publishing companies, Carl has a wealth of knowledge in entrepreneurship. He published Getting the Real out of Starting a Business to teach business owners on how to build wealth through entrepreneurship.
For more information about Getting the Real out of Starting a Business, you can go on his website http://www.carlagard.com/
Computer Leases
Auto Leases
Business Equipment
Business Loans (SBA)
Business Lines of Credit
First, you would want to have a business entity that will allow the liability of the company separated from you individually such as an incorporation or LLC. A sole proprietorship will not allow that. Acquire a tax identification number for your company. When you apply for any type of business credit, the tax identification number will be used instead of your social security number.
For new businesses within two years, or existing businesses with very little credit, you will still need a personal guarantor to go on the application. The creditor will use the guarantor’s credit score to determine credit worthiness.
There are two business credit reporting agencies that lenders and financial institutions rely on for information to grant credit. The two credit agencies are D&B and Experian.
Over 70 million businesses are registered with D & B which uses the information provided by the owners and vendors. D & B will give a Paydex score based on the payment history of the company. D & B will also give a DUNS rating based on the financials of the company. A high risk score will hurt the borrowing ability of the company. With scores ranging from 0-100, anything over 75 is a good score for a company to have. You need at least 4-5 trade lines to report on D & B.
Another reporting agency is Experian who uses an Intelliscore. Experian is already one of the three main personal credit reporting agencies along with Equifax and Transunion. Over 14 million companies are registered with Experian. Their credit score ranges from 0-100 as well with anything over 75 as a good score. You need at least two trade lines to report to Experian.
It does not make sense to own a business and do not understand how to build your business credit and improve your Paydex and Intelliscore. It’s like buying a home or a car and not knowing your FICO score. Why use your personal credit to finance your business when you don’t need to.
Matter of fact, some business credit cards were easier to get than a personal credit card. So I suggest, after you get incorporated and get your tax identification number, start working to build your business credit by applying for credit. And don’t forget to register on D & B and Experian.
Carl Agard has created over ten successful business ventures from the age of 16. From owning a hot dog stand as a teenager, to now operating real estate and publishing companies, Carl has a wealth of knowledge in entrepreneurship. He published Getting the Real out of Starting a Business to teach business owners on how to build wealth through entrepreneurship.
For more information about Getting the Real out of Starting a Business, you can go on his website http://www.carlagard.com/
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