Tom Mckenzie – Two Tips For Building Commercial Credit
Two Tips For Building Commercial Credit
There is an increasing need for commercial credit especially since the banks are slowly increasing lending. Commercial Credit is the process of using only the business Tax ID Number or Articles of Incorporation in place of a personal guarantor.
During the 90’s commercial credit was as common as traditional credit, but only for those in the know. For years corporation have enjoy the ability to buy items in the business name without using the personal credit of the CEO or Board Members. This system works well as long as the organization is financially solvent, and can pay all invoices as scheduled.
Commercial credit can be a valuable asset for small business owners because of its ability to separate their personal credit from the business expenses. One of the major challenges for small business owners is how to get the items they need without overextending their personal credit. Another benefit of commercial credit is it allows small business owners to count installments payments from commercial accounts as business expenses at tax time.
Listed below are two accounts that you can apply for today using only your tax id number and articles of incorporation. If you pay these accounts before the bill is actually due then both of them will report the payments to Experian. Once you’re in Experian then the Doors of Credit will open to your business.
Two Business Credit Accounts You Can Open Today
AT&T Cell Phone Account – AT&T has a new initiative that is very welcoming to small business owners if you need Blackberry’s from your staff. All that is required as of the date of this article (today’s date June 25, 2010, their policies are subject to change) is your TIN and Articles of Incorporation. I can’t stress how important it is to pay this account on time, it can work wonders for your rating in Experian.
Chevron Gas Card Account– Chevron loves small business owners, especially companies with multiple vehicles. No personal guarantor is required for established business, however they prefer if you use over 00 worth of fuel charges per month. This is another commercial account that can get you into Experian, which is the only credit bureau that matters for commercial credit.
Please keep in mind that there is no need to pay a company to get you commercial credit, and having a DUN’s number is overrated. I have found that most of these companies over charge for something you can do yourself, so get started building your commercial credit on your own.
16 Real Answers to Your Business Credit Questions Ilya Bodner Initial Underwriting
Ilya Bodner is a successful entrepreneur and owner of Initial Underwiting Group, an organization that underwrites business loans for owners that are ready to start up or expand a small business. In a recent interview, Mr. Bodner answered some of the most frequently asked questions that are on the minds of business owners when they need financing and commercial loans.
How did you get involved in business credit?
I needed to raise money for my first business venture; being young and just out of college my personal credit could not support 0,000 loan. I found out about Dun & Bradstreet and spent 3 years carefully learning its methods and lenders that use that information.
Why did you decide to help small businesses obtain loans?
I got 0k for my own business through the use of business credit, realized that a lot of business owners don’t know about business credit and decided to cater to the demand.
What is the worst mistake you see small business owners make?
Being undercapitalized – Worst mistake is not to plan for unpredicted expenses, loose projections, and shift in demand; which all contributes to increased spending and lowered sales.
Do you think it is fine for new business owners to borrow money from people they know?
No, I don’t think it is fine to borrow from people you know – If you undercapitalize, you tend to go to friends and family for immediate money. Otherwise, borrowing with caution and enough reserves to pay back in case of total loss, is the only acceptable method of borrowing from your loved ones.
Do you see a trend in why small business owners get rejected for loans?
High Risk – the lenders see a small business owner as a renegade who may or may not pay back the loan + interest. 3 out of 4 businesses don’t survive; and the small percentage of small businesses that do survive end up defaulting at some point.
Is there a way to apply for a business loan without revealing your personal credit history?
Yes, some banks offer business credit based programs.
In your experience do you see business owners without business credit, get lines of credit and business credit cards?
Yes, they take the steps to establish a strong business credit profile and go to the right lenders.
Can a business owner apply for a business loan if they declared bankruptcy sometime in the past?
Yes, only if a strong business credit profile already exists. Apply with a lender that offers business credit-based financing.
How should one establish business credit when just starting out?
Establish a legal entity with an EIN number first. Then, apply for a Dun & Bradstreet number and an Experian report – both are free. Lastly, sway 6 vendors to report payment history (this part is tricky if you don’t have the leisure of time).
Do your business credit habits automatically get submitted to the business credit reporting agencies?
No – Reporting can be done by all; however, automatic reporting is done by only a few vendors and lenders.
Is it easy to get financing once you have a business credit profile?
Nothing is easy in the current state of our credit-crunched lending sector. By having business credit a business is open to more lending options.
Is the SBA the only resource for small business loans?
Not anymore – more and more banks offer business credit based financing.
Will the current situation in the banking industry and the economy affect a new business owner’s ability to get a loan?
Yes, for those that don’t have business credit.
Will a business owner be expected to pay high fees when they apply for business-credit based financing?
No, these are the same banks and the same lending guidelines – pulling business credit reports, not personal credit scores.
Can a business owner, without business credit, get lines of credit and business credit cards?
Yes, take the steps to establish a strong business credit profile and go to the right lenders.
Any tips for all of us who are looking for loans to expand, start, or restructure our business?
Just like you take the time to go to an accountant for tax advice and preparation (regardless if it is your first year of operation or tenth year), spend some time with a business professional to prepare and take advice on strong business credit.
Over the course of the last 5 years as an entrepreneur I have successfully launched, managed, and sold off several businesses. Each organization started has added some value to my understanding of the business world today. My philosophy has been that 9 things out of 10 that I try will fail, but that golden one is always worth the battle. In my experience that has proven to be the case and my successful businesses still operate today under the management of those whom I have sold off to. The latest project is Initial Underwriting Group, a corporation comprised of two concepts: 1) business credit building and 2) business loan underwriting.
Get 0000 to 0000 in cash and UNSECURED new business lines of credit by following a 4-step system. Dear Entrepreneur I want to introduce you to an amazing credit system that taught me where to get huge unsecured lines of credit. This guide shows you where to get 0000 to 0000 in cash and UNSECURED new business lines of credit by following a 4-step system. An unsecured business line of credit is the easiest short cut to getting money that you will ever find. You will learn how to get money in the name of a business using any registered business entity, and stop using your personal name and social security number to apply for business credit. The secret to successfully getting large amounts of business credit is to use stated income applications to qualify for money from many different lenders. This system will show you exactly how to properly complete the stated income application process at each of the national lenders on my lenders list. Business lines of credit come in the form of multi-year loans, convenient checks and business credit cards that offer cash advances that can be used anywhere. Get the complete guide with workbook, lenders list, CD set and everything you need to get the money at: businesscapitaltoday.com This system has helped me tremendously, that’s why I want to share what I’ve learned with you. Video Rating: 3 / 5
CreditCardAssist.com offers a free service to help guide small business owners on the best use of business credit cards.
(PRWEB) April 28, 2006 — More and more, Americans are starting their own small businesses. In fact, small businesses offer more new jobs each year than any other business type. Yet, most small business owners are unaware of the many options available to them when it comes to financing the start up costs of their business. CreditCardAssist.com, one of the leading online credit card comparison online companies, helps to guide small business owners through the maze of business credit cards ( www.creditcardassist.com/business/creditcards.html ) by providing them with comprehensive information on business credit cards and recommendations on how to find the one best suited for their needs and the future of their business.
Business credit cards are cards designed specifically with the needs of business owners in mind. Many of these cards offer discounts that can be helpful to small business owners, such as discounted travel, reduced entertainment costs, and special offers at office supply stores. In addition, there are a number of business credit cards available that also offer cash back or rewards programs. These special programs are also geared toward the business owner by offering rewards that are attractive to business owners.
CreditCardAssist.com maintains that one of the greatest draws of a business credit card is the help it gives the business owner in bookkeeping. Business credit cards provide itemized statements to the cardholder, which can be monthly, quarterly, or annually. These statements specify what items were purchased and some itemized statements even place the purchases into categories such as “travel” and “entertainment,” which makes it easier for the cardholder or business owner when filing taxes.
Despite the perks of business credit cards, CreditCardAssist.com advocates being careful when selecting a card. According to the site, some of these cards can have high interest rates that can be costly if the balance is not paid in full at the end of each billing cycle. In addition, the benefits of each business credit card are not the same. Therefore, the site encourages business owners to thoroughly research and compare business credit cards in order to select the ideal card most suited to the business’ needs. A business owner that does not travel frequently, for example, would have little use for a business credit card that provides airline miles rewards.
To help make the selection process easier, CreditCardAssist.com has created a comprehensive database that contains all the information consumers and small business owners need to compare business credit cards. The web is an outstanding place for consumers to learn more about fees and benefits associated with each specific business credit card. CreditCardAssist.com recommends comparing details such as APRs, annual fees, benefits, and special programs. In addition, the site also recommends that business owners thoughtfully consider the desired credit limit of the card. As the business grows, the cardholder will likely need a credit limit that can grow along with the business. Therefore, it is best to select a card capable of increasing the credit limit over time.
Los Angeles based CreditCardAssist.com is dedicated to providing consumers with the information necessary to make an educated choice from the many available business credit cards. For more information, visit the company’s Web site at www.creditcardassist.com
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Official website: www.redstaterockers.com Become a fan on Facebook www.facebook.com Support the cause, buy the single on iTunes: itunes.apple.com The RED STATE ROCKERS could possibly be the first conservative rock band in the United States of America. Based in Miami, the group was formed out of a revelation at the Tea Parties in April of 2009. The two founding members are brothers and small business owners, Mark (songwriter/bassist) and David Watson (lead vocals/drums). Both own and operate DM Records, a fifteen-year-old independent record label. We were really inspired watching the protesters at all the Tea Parties back in April. We started writing and recording songs soon after that event, as our way of making a statement, states Mark. The music could be described as energetic pop rock with an anthem feel. To start the buzz about the band, the group emailed leaked copies of their MP3 track to some of the most influential conservative bloggers in the country. The group has received many favorable reviews of their first single, No Socialism. As small business owners, the bailouts seem so unfair. Only big businesses received money from the government. It is small business that drives our economy. Most innovations and employment is created at the small business level. The government wants small businesses to bailout these large firms with our tax money. Many of the same banks we bailed out have frozen our small business credit lines, states Mark. This is the first time in …
Doug Flynn, CFP has 3 great tips for small business owners wondering where they can go to consolidate several business credit cards into one low-rate loan or credit card. The CNN Money Help Desk panel includes Doug Flynn, CFP and Donna Rosato from Money Magazine, with Stephanie Elam during CNN Newsroom. From March 2010.
www.NetWorthBusinessCapital.com Minnesota Business Loans Unsecured $50K to $250K Jeff Slaton Do You Need Money For – Purchase a Business – Inventory – Remodeling – Added Expenses – Advertising – Marketing – Improvements – Expansion Unsecured Business Lines of Credit is the answer. Without the right resources, connections and knowledge, business financing can seem like an impossibility Unsecured business lines of credit are one of the toughest parts of being a small business owner. How do you enhance your credit standing to get the money you need? How do you pay off your personal lines of credit so you can get the business loans you need? If you need business credit, we can help you As small business owners ourselves, we know how frustrating it can be to navigate the endless maze of business credit options. Thats why we specialize in matching you with the right lender for unsecured business financing. Why put your assets at risk if you dont have to Why deal with complicated loans that put your assets at risk when we can get your business approved with no collateral? You heard right. With our extensive and proprietary database of credit resources, we can get you between $50000 and $500000 in unsecured loans. Learn the facts behind business lines of credit and generous credit card lines No collateral Competitive Rates as low as 1 1/2% with our unique strategy Secure and Confidential FREE Consultation Quickly Achieve an 80 Paydex Score $50000 to $500000+ Available Get the …
wp.me Borrower Beware: Your company must have cash to grow. No surprise there, every business needs money to take care of overhead…Meet payroll…Pay for supplies…Grow…And to…Well…Stay in business. But how you acquire that money…And what you do to get it…Can have a grave impact…
wp.me Borrower Beware: Your company must have cash to grow. No surprise there, every business needs money to take care of overhead…Meet payroll…Pay for supplies…Grow…And to…Well…Stay in business. But how you acquire that money…And what you do to get it…Can have a grave impact…
Al-Yassa Al-Mahi helps build business credit and recommends small business owners to BIG IDEAS Small Businesses for the strategies and tools needed to grow a CASH RICH Business.
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