The best way to Construct Enterprise Credit score FAST [WITHOUT a Personal Guarantee]
People always ask me, “How do you build business credit?” “Can you get approved for places like Target and Walmart without using your personal balance?” “Should You Be Using Business Loans At All?” Would you like to understand so that you can add these services to your existing credit repair business and generate new revenue streams? If you’ve ever asked these questions and think that business credit is a big mystery and you want to uncover the secrets of using it in your business, you’d better stick with it.
So the big question is how can we turn our passion for helping people with their credit into a successful business without borrowing, without spending a fortune, by pulling it out of nowhere so that we can help most people and anyway high can be profitable? That is the question, and this podcast will give you the answer. My name is Daniel Rosen and welcome to Credit Repair Business Secrets.
If you’ve heard my podcast before, you probably know that I believe in a bootstrapper mindset for building your business. And basically that means earning a little, spending a little. Earn a little more, spend a little more. And pretty soon you will become profitable without incurring a whole lot of debt. However, there is something to be said about understanding business credit and using it as a service so that you can help your customers when needed and use that knowledge to add another source of income to your existing business. That’s why, in this episode today, I’d like to help you understand the pros and cons of business credit, since business credit, as you may have already found out, is completely different from consumer credit with completely different rules. Here’s why this is important. There is really no way to fix business credit as fair credit reporting law only applies to consumer credit and not business credit. As you grow your business, you may find that many of your credit repair customers are also business owners or planning to start a business and they will turn to you for help. Finally, much like your customer’s personal loan, their business loan rating determines whether their company can be trusted to handle money. This is an incredibly important service and another way to increase your company’s sales. So here is what you need to know in order to add business credit as a service. First, think of business credit score as a measure of a company’s reputation. This means that it can affect your customer’s chances of future business relationships. If their business has bad credit, potential lenders or investors may not want to partner with them as it is considered a high risk. Even if your customer has a personal credit score of 850. They never want to take out a loan for their company on their personal name or social security number because they will then become personally responsible for the company’s debts. And this is an enormous burden. There’s a good chance your business will get into tough times at some point. If they cannot pay their business loans on time, if properly set up with no personal guarantee, it will not negatively affect their personal credit report or their personal credit score. Understand that creditors can go for personal assets when they use their personal loans to get the business loan. So you had to train your clients to build business loans and use their business loans instead of using their personal loans to help fund a business venture. The better the business credit, the more options your customers will have if their business has excellent business credit. Lenders are more likely to borrow and usually offer much lower interest rates and fees. This applies to merchant accounts, credit cards, insurance, and lines of credit that can act as a safety net. Let’s examine exactly how your customers would build a healthy business credit profile. First, form a legal entity such as a corporation or LLC. This is the very first step in building a business loan as it separates you from your business. You then apply for a tax ID or a tax ID and then open a commercial bank account. Next, register the business with Dun and Bradstreet, the largest business credit bureau in the United States. They offer both free and paid options, and you can decide which is best by visiting db.com. As soon as the company is registered, it receives a Paydex Score, which is the new Business Credit Score. Unlike your personal credit score, it is based on a scale of one to 100. Pay deck scores are very similar to consumer credit scores, but there are some key differences. Instead of reflecting your personal credit history, your Paydex score determines the creditworthiness of your company. In particular, it reflects how quickly your company pays your creditors and suppliers, and how good your payment history is. Lenders will check their pay deck scores to see if they are making loans to this company and their Paydex scores will show how reliably this company is meeting their debt requirements. Okay, and one tip to tell your customers who want to start over and get a solid Paydex score is to identify the providers first and make sure they are actually reporting to Dun and Bradstreet. There are quite a number of providers who offer you credit without a personal credit check. To name a few, you can try using office supplies for all of your office needs. Paper, ink pens and thousands of other items are available from quill. You will be approved and reported to Dun and Bradstreet, Staples and Office Depot accounts with no personal credit check and without your personal social security number. They also contact Dun and Bradstreet for any shipping supplies. Okay, they also report to Dun and Bradstreet and often give new businesses a line of credit even if you’re a brand new business with no existing business credit. For tools, try Granger outdoors. Wells Fargo also offers a secured business credit card that also reports to Dun and Bradstreet. Even Amazon has a Netto 30 account that new businesses can use to build their pay decks. Now, remember that when you open business accounts, make sure you are not adding them to your personal balance. And you can do this by simply leaving out your social security number. Just leave the field blank. If asked for OK, most providers will agree. When you fill out an application online now, your social security number is sometimes required. The only way to avoid this is to request a printed application that you can fill out manually and then mail it in. If the provider requires your social security number, do not apply. Okay go somewhere else. It is very important to keep your business and personal liabilities separate. Next, check out Dun and Bradstreet’s Credit Builder Program. It speeds up your DUNS number retrieval and allows you to monitor your business credit. Most importantly, you can add existing trade references to your Dun and Bradstreet. st report. Here’s the big part. Once you have five accounts reported to Dun and Bradstreet, you can now be approved for accounts with companies like Walmart, Sears, BestBuy, Dell, Apple, Sams Club, Lowes, Target, Costco, and even Chevron with no personal guarantee. or a consumer credit check. Now that you have a basic understanding of how your clients can start their business loans, here are some expert tips to help them build them really quickly. First of all, they need to actually use the business credit accounts so they don’t become inactive. If you don’t use them, the providers stop reporting. So try to make a purchase on each account every 30 to 60 days. Second, as opposed to personal credit history where your good Paydex score will be a little different as long as it pays before the due date. The faster you pay out the remaining balance, the better the impact of your Paydex score. So you want to pay your bills as soon as possible, preferably right away and well before the due date. And finally, to build your Paydex score even faster, to try to use the business accounts as much as possible and buy everything you can, with business credits, to pay your bills with your business line of credit, to pay for fuel, for Pay for groceries and all expenses that you would normally pay with your personal balance or cash. Instead, use your business credit accounts to build your Paydex score. Pretty cool right? Business credit building is nowhere near as difficult as it seems and now you can take advantage of this in your business by walking your customers through the process and helping them build their business credit profile as an additional service that you can offer. And if you’re just getting started and want me to hold your hand while you have your own credit repair business started in just a few weeks, I invite you to join our upcoming Credit Hero Challenge. We’ll have a new one in a few days. Grab your spot now at creditherochallenge.com. And if you value the things I share on this podcast, click below to subscribe. I don’t want you to miss any episodes. And if you listen to YouTube and feel nice, drop me a comment and give me a thumbs up because this is a new podcast and I can use any help I can get. And see you in the next episode. So change your life until then!
Would you like more trade secrets for credit repair? Then get a copy of my book, The Ultimate Guide to Start a Credit Repair Business. Get it for free at creditrepaircloud.com/freebook. In this book, I will share my 35 top secrets to removing items from credit reports and making them an amazing business that helps people, changes lives, and makes a good living. Get it for free at creditrepaircloud.com/freebook.