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Thomas J. Kane

Build Business Credit

Over 65% of all business owners use credit for business purchases. But only 50% of those cards are actually in the business’ name.

If you are like many small business owners who are still using personal credit to finance your business, you may want to rethink your financing strategy. While many small business owners may have trouble getting financing if they’re a new business or have bad credit, financing your company through personal credit can lead to financial disaster down the road. When you finance your company via personal credit you are risking quite a lot because you are assuming total liability and if your company is ever sued or goes under, you are stuck with the financial burden and may lose personal assets while also severely damaging your personal credit.

Building Business Credit

Many people are either somewhat or very familiar with building their personal credit and credit score but many small business owners do not know how or have not bothered to start building business credit which is an integral part of running a successful business. Building business credit is extremely important for a successful business, especially a start-up. Using a business credit account to finance your business will limit personal risk while providing additional financing opportunities as well as helping to build long-term trust and credibility with financial institutions.

Businesses can obtain 10 to 100 times greater financing than an individual.

Before you can start building your business credit you must first verify all of your corporate records, state filings, and required business licenses are accurate and up-to-date. You will also want to get your company’s phone number listed in the 411 directory, that way a supplier or lender can complete every aspect of its verification during the underwriting process. Once you’ve met these requirements you can start applying for business credit and can start building business credit worthiness which will lead to better financing options and easier access to business loans.

What is Business Credit?

Business credit is credit that is obtained in the name of a business. But one key thing we need to understand about business credit is that it is NOT built on the same credit system personal credit.

Why Do You Need business Credit?

Business credit is an important tool for any business and can be extremely useful for obtaining funding and maximizing a business owner’s borrowing power.

Who Are We?

Our Business Credit Development Coaching System has been designed to help business owners establish and grow a business credit profile with the largest providers of business credit information in order to secure new funding opportunities for your business.

Our program was built to help small to medium sized businesses accelerate the process of creating business credit, establishing relationships with trade credit ventures, and gaining access to lending options, all while separating and protecting your personal credit file.

Why Choose Us?

Access to Funding

By establishing Business Credit business can access new funding sources and ensure cash flow.

Secure the Best Financing Options

Most small businesses loan decisions under $90,000 happen automatically, relying only on your business credit file.

The Best Business Credit Terms

For companies with weak business credit scores, banks may increase loan interest rates by 7%.

Peace of Mind

Protect your personal assets and reduce your personal liability by creating a separate corporate entity and business credit.

Business Credit Ratings

Business credit ratings are similar to your personal credit score and are how lenders determine a business’s credit worthiness.

Business credit ratings are tracked by several business credit bureaus, including:

  • Equifax Business
  • Experian Business
  • Business Credit USA

But the one credit bureau that holds the most sway over affecting a business’s overall credit score is Dun & Bradstreet, also known as D&B. D&B is the most widely accepted and trusted tracking agency for business credit scores in the United States.

What Business Credit Can Be Used For

Business credit can be used for a variety of things, such as office supplies, marketing material, computers, commercial real estate and other expenses related to running a business. This can be especially useful for start-ups or companies who’s demand is so high that they can’t afford additional supply to meet the demand due to limited cash on hand. Many businesses who have built a solid business credit rating can also rely on business funding in the case of an emergency or temporary decrease in business.

The primary business funding options include the following:

  • Commercial Real Estate
  • Unsecured Credit
  • Private Equity
  • Revenue Lending
  • Rehab Financing
  • Sign Financing

While there may be a number of available financing options available for businesses, it can sometimes be difficult to determine which are best for your business. It can also be difficult to get started and many new business owners run into difficulty getting approved for business financing due to incomplete forms, business information, or because of improperly applying for financing. For assistance with business credit building, repair, or applying for financing, Credit Absolute can provide assistance throughout the process.