Blog – Whitsett & Whitsett https://whitsettandwhitsett.com Creative Financing Sun, 12 May 2019 19:40:34 +0000 en-US hourly 1 https://wordpress.org/?v=5.4.1 https://whitsettandwhitsett.com/wp-content/uploads/2019/03/hTTLNv-_400x400-50x50.jpg Blog – Whitsett & Whitsett https://whitsettandwhitsett.com 32 32 The Business Finance Suite & What it Means for Your Business! https://whitsettandwhitsett.com/the-business-finance-suite-what-it-means-for-your-business/ https://whitsettandwhitsett.com/the-business-finance-suite-what-it-means-for-your-business/#respond Sun, 12 May 2019 19:40:33 +0000 https://whitsettandwhitsett.com/?p=3397 There are over 2,100 lenders and 400 direct lenders and over 30 core funding programs available to you through the finance suite. There are actually more funding and business credit sources available than anywhere else, giving the best chance of getting approved for the most amount of money. Check out some of the many business

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There are over 2,100 lenders and 400 direct lenders and over 30 core funding programs available to you through the finance suite. There are actually more funding and business credit sources available than anywhere else, giving the best chance of getting approved for the most amount of money. Check out some of the many business credit accounts you can get through the finance suite, without a personal guarantee or credit check:
Staples
Office Depot
Shell
Home Depot
Wal-Mart
Costco
Amazon
Dell
Lowes
Sears
BP
Chevron Speedway
Sam’s Club
Visa
MasterCard
And More!

The finance suite is the only system in the world that combines business credit AND financing. You can build your business credit quickly with certified advisors providing concierge servicing, and you can insure your business is setup credibly before you apply by gaining access to our 20 point credibility test, which is only available in the finance suite. You can also get approved with the largest supply of vendor credit anywhere on the planet and get money IMMEDIATELY! Get approved for real store credit at stores you are buying supplies from now to run your business within 30-90 days, and do it without using your personal credit or guarantee. Get approved for Visa, MasterCard, and Amex CASH credit cards with MUCH higher limits and more spending power than with consumer credit cards within 4-6 months total time, regardless of personal credit quality. Underwriting guidelines on ALL sources… know you’ll get approved before you even apply. Over 30 funding programs are available for you, even if you lack collateral, credit, or cash flow. High probability of getting funding with over 2,000 lending sources, get approved even when banks say “no”. We even develop your finance blueprint, your game plan to get current and future funding. Get your own Finance Officer for five years. Now getting money is only a phone call away, access every legitimate funding program that exists, and get the best terms available! You also receive ongoing training, education, and alerts when new funding options roll-out industry wide, as well as getting access to entrepreneur and business credit weekly webinar access (help when you need it).
You will also gain access to entrepreneur and business credit emails each week with invaluable tips and tools such as:

● Business credit knowledge builder video series.
● Full customer support to help with any questions about getting and improving your business credit whenever you have them.

Contact us today to get access to your own finance suite and easily and quickly get money and credit for your business!

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HOW TO GET YOUR DUNS NUMBER WITH DUN & BRADSTREET https://whitsettandwhitsett.com/how-to-get-your-duns-number-with-dun-bradstreet/ https://whitsettandwhitsett.com/how-to-get-your-duns-number-with-dun-bradstreet/#respond Sun, 12 May 2019 19:37:52 +0000 https://whitsettandwhitsett.com/?p=3394 There are 3 main business credit reporting agencies in the United States, Dun & Bradstreet, Experian and Equifax Commercial. These are the reporting agencies your EIN credit is reported to. Dun & Bradstreet, often called D&B, is the biggest business credit reporting agency, as it is 10X larger than Experian or Equifax. They provide information

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There are 3 main business credit reporting agencies in the United States, Dun &
Bradstreet, Experian and Equifax Commercial. These are the reporting agencies
your EIN credit is reported to.
Dun & Bradstreet, often called D&B, is the biggest business credit reporting agency,
as it is 10X larger than Experian or Equifax. They provide information on
businesses and corporations for use in credit decisions worldwide and publicly
traded company (DNB) on NYSE, headquarters in Short Hills New Jersey.
D&B roots track all the way back to 1841, with the formation of the Mercantile
Agency in New York. This was 50 years before the first consumer agency Equifax
was born. In 1933, the Mercantile Agency joined with R.G. Dun & Company and
became known as Dun and Bradstreet.
Four US Presidents were former employees of Mercantile Agency, which later
became D&B. They are Abraham Lincoln, Ulysses S. Grant, Grover Cleveland and
William McKinley. All of which worked as credit reporters in the company.
There are a couple of steps you’ll need to take to setup your business first, before
you get setup with D&B. The very first step is to setup your business entity! You can
build credit with any entity. But you’ll want to consider either a corporation or LLC
to help reduce your liability in the business itself.
With Sole Proprietors and Partnerships, you ARE the business, your one and the
same. In those cases, you’ll always be liable for what happens in your business.
With Corporations and LLCs, you and the business are separate from each other,
making it easier to also separate your liability.
You can setup your entity by visiting your Secretary of State website. Search for the
name you want to ensure it’s not already taken then follow the steps to setup a new
for-profit or non-profit business. Fees vary by state, but the setup process usually
only takes 15 minutes or less to complete.
Next, visit the IRS website to get your Employer ID Number or EIN. Do NOT pay for
your EIN… it’s completely free. There are companies who try to look official and
help you get your EIN, but at the end of the process they charge you a fee. Don’t be
fooled, you don’t need to pay.
Business credit reporting agencies like D&B get data from many different places.
These may include: utility companies, landlord, companies that help setup new
businesses, insurance and benefit providers and many others. If the reporting
agencies know you exist, you can have a low credit score even if you have no credit.

Check with D&B to see if they have a record setup for you now. It’s FREE and easy
to do this! You can go directly to D&B’s website to check iUpdate for your business
to see if you’re setup with D&B, Experian, or Equifax… all for FREE.
If you pull up a record for your business with the reporting agencies, before you
take another step you should consider pulling your actual reports. To do this, you’ll
need to enroll for credit monitoring. In doing so, you’ll see if you have any credit
reporting. You’ll also see if you have scores. And if you have negative items on your
report, you can dispute those through iUpdate or through monitoring.
If your search with D&B doesn’t show you have your D-U-N-S number, you’ll want to
get it setup.
The D-U-N-S number is a nine-digit number issued by Dun & Bradstreet and
assigned to each business location in the D&B database, each having a unique,
separate, and distinct operation for the purpose. Every business must first have a D-
U-N-S number before Dun & Bradstreet will assign a Paydex business credit score.
The DUNS number is the preferred method worldwide of identifying businesses.
Unlike national Employment Identification Number (EIN), a D-U-N-S number may
be issued to any business worldwide.
It is used by many foreign governments including the US and Australia, European
Commission, and even the United Nations. More than 50 global, industry, and trade
associations recognize, recommend, or require DUNS.
When you actually start applying for credit you should consider using some type of
business address or virtual address but setting up your entity and your D-U-N-S will
require a physical address of some kind, you can’t use a virtual address. And even
though you can obtain real business credit without supplying your SSN. Most
business bank accounts may require one to be opened.
You can search for your DUNS through the link at www.dandb.com/free-duns-
number. During the DUNS setup process you’ll be asked for A LOT of information.
If you select that you’re a government contractor, you’ll get your DUNS in about 1-2
weeks. If you don’t pay D&B anything and aren’t a contractor, it can take up to 30
days to get your number.
The entire process will take about 10-15 minutes. Once you’re done, D&B will
email you, and reps will also start to call and email you to upsell you to the D&B
Credit Builder program.
With Dun & Bradstreet there are 3 ways to start building your business credit. The
first way is by using their Credit Builder program https://www.dandb.com/credit-
builder/. This runs $159 monthly (April 2017), or they’ll also often offer you a one-

time fee you can also pay. They will offer to setup your D-U-N-S for you if you
purchase, without you needing to wait 30 days to get it by mail.
With Credit Builder you also get…Access to your D&B scores and ratings, can add
positive payment experiences to your report, get alerts when others inquire into
your business and see how your company compares to others in your industry.
With Credit Builder D&B allows you to add trade accounts you already have that
aren’t currently reporting to your D&B reports. These accounts then show as trade
lines helping you build your profile and score. This might be something to consider
if you have a lot of accounts you pay now that can qualify and aren’t currently
reporting.
Keep in mind, this service is only to add accounts to your D&B reports, not
Equifax or Experian which many credit issuers and lenders use. Also, D&B isn’t
helping you access new credit, only helping you add existing credit to your reports.
Also keep in mind, many types of accounts cannot be added to your D&B using this
Credit Builder Service, https://www.dandb.com/glossary/trade-references/. From
https://www.dandb.com/glossary/trade-references/, “D&B works together with
thousands of nationwide vendors that report payment experiences on a regular
basis. These data providers have requested to remain anonymous and cannot be
added by a customer for trade reference.
Some types of companies do not respond to D&B’s requests for information within a
reasonable time frame. D&B will make 6 attempts to contact a company that has
been selected to provide trade reference, and will accept inbound references at any
time. However, a customer may resubmit references at any time, after which D&B
will make 6 more attempts.
Certain companies have proven, over time, to be less trustworthy. Accordingly, D&B
has identified certain characteristics associated with companies and maintains
policies related to the eligibility of that company to provide a reference.”
From https://www.dandb.com/glossary/trade-references/, “The following kinds of
trade references are amongst those that are not accepted by D&B. Payments that
have not yet been made but are anticipated, payments to businesses that have
shared principals or some other type of legal ownership relationship, financial
services: banks, credit unions, and insurance, bank references, utilities and gas
companies, credit card companies, landlords, virtual offices credit counseling or
registered agents, international companies, and businesses with an unknown SIC“.
So, before you buy, think about the accounts you may have who might report… Such
as your CRM or other types of software or other accounts that aren’t restricted. Also
keep in mind, getting D&B on the phone with your service provider isn’t always
easy… and very well can take time.

If you DO have good personal credit now, or a personal guarantor, you can
shortcut your business credit building process with all 3 reporting agencies. With
UBF, you work with a funding source that specializes in securing business credit
cards. This is a VERY rare, very little known about program that few lending
sources offer.
They can usually get you 3-5 times the approvals that you can get on your own.
Individual approvals usually range from $2,000-50,000. Approvals can go up to
$150,000 per entity such as a corporation.
With UBF they actually get you 3-5 business credit cards that report only to the
business credit reporting agencies. This is HUGE, something most banks and card
issuers don’t offer or advertise. The lender can also get you low intro rates, typically
0% for 6-18 months and they’ll also get you the best cards for points, meaning you
get the best rewards.
You must have excellent personal credit now, preferably 685 + scores… the same as
with all business credit cards. You shouldn’t have ANY derogatory credit reported to
get approved. You must also have open revolving credit on your consumer reports
now. You’ll need to have 5 inquiries or less in the last 6 months reported and you
can also use a guarantor.
All lenders in this space charge a 9-15% success based fee. You only pay the fee off
of what you secure. Remember, you get a ton of extra benefits and about 3-5 times
more money with this program than you’d get on your own… which is why there’s a
fee… the same as all other lending programs. You can get approved using a
guarantor. You can even use multiple guarantors to get even more money.
You can also build business credit using NEW accounts, instead of adding existing
accounts to your D&B profile. There are many benefits of building business credit
this way you don’t need to buy Credit Builder, you don’t need good credit, cash
flow, or collateral, you’re building your business credit AND getting real useable
credit at the same time and you’re building credit with all 3 reporting agencies.
Vendors are companies who will offer you credit, even if you have none now, and
report to the business reporting agencies. They will offer you Net 30 terms
usually… meaning you have 30 days to pay off what you borrow in full. Some will
offer Net 10, 15, 20, 30, or 45 days and you can get approved even as a startup.
Before you apply for vendor accounts, you should setup your business credibly first.
Credit issuers and lenders have a “secret” set of requirements you must meet to get
approved. These requirements are to determine if your business is legit and
“credible”. You must insure you meet these requirements BEFORE applying for any
type of credit.

You must have a website and professional email address… Not a Gmail or AOL type
email. You must have a BUSINESS phone #… Not a mobile or home phone. You
should have a toll-free # and fax #. Your phone needs to be listed with 411 and you
should be listed online, and all of your listings the same. You need a real business
address or virtual address… or a home address, not a P.O. box, or UPS address.
Make sure you obtain all necessary licensing needed for your industry and state.
You should be listed online, and all of your listings should be the same.
Some vendors to start with who report to D&B and will approve you with no
existing credit include Seton, Quill, Gemplers, and Uline. For REAL business credit
linked to your EIN not your SSN… don’t put your SSN on the application.
D&B will want you to have 2-3 of these types of accounts to activate your profile and
score. You do NOT need to pay D&B to have your profile activated. You just need to
find items you want to buy, apply for credit, use that credit, pay the bill timely.
You should have 5 payment experiences to start applying for store credit. Most
major retail stores offer EIN only business credit including, Staples and Office Depot,
Lowes and Home Depot, BP and Chevron, Best Buy, Apple, and Dell, Walmart,
Costco, and Sam’s Club and most others.
With 10 total payment experiences you can start to secure fleet and cash credit
cards based on your EIN only. And you’ll have a much better chance of getting loans
and credit lines. In some cases you can even obtain lending such as auto leasing
without a personal guarantee.
Just like with consumer credit, building your business credit is a never-ending
process. The more credit you apply for the more you get… and the more you use
that credit the higher your limits become. Also keep in mind, ALL lenders review
business credit when applying for business loans… even high-risk lenders.
The main credit score used in the business world is known as a Paydex score,
provided by Dun and Bradstreet. From D&B… “The D&B PAYDEX® Score is D&B’s
unique dollar-weighted numerical indicator of how a firm paid its bills over the past
year, based on trade experiences reported to D&B by various vendors.”
The Paydex score ranges from 0-100, with 100 being the best score a business can
obtain. A score of 80 or higher is considered “good” or healthy credit. A business can
obtain a good business Paydex credit score by ensuring payments are made
promptly to suppliers and vendors.
Business credit scores are based only on whether the business pays its bills on
time:
Expect payment may come early 100
Payments comes within early discount period 90

Payment is prompt 80
Payment comes 14 days beyond terms 70
Payment comes 21 days beyond terms 60
Payment comes 30 days beyond terms 50
Payment comes 60 days beyond terms 40
Payment comes 90 days beyond terms 30
Payment comes 120 days beyond terms 20
Unavailable UN

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Using Personal Credit to Finance Your Business? https://whitsettandwhitsett.com/using-personal-credit-to-finance-your-business/ https://whitsettandwhitsett.com/using-personal-credit-to-finance-your-business/#respond Sun, 12 May 2019 19:35:29 +0000 https://whitsettandwhitsett.com/?p=3391 The hands-down biggest and most common mistake entrepreneurs make is using personal credit to finance their businesses. Common examples include: ● Paying for business expenses with your personal credit cards ● Obtaining personal loans to finance your business expenses If you’ve used one or more of these financing methods to fund your entrepreneurial ventures, I’m

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The hands-down biggest and most common mistake entrepreneurs make is using personal credit
to finance their businesses.

Common examples include:


● Paying for business expenses with your personal credit cards
● Obtaining personal loans to finance your business expenses


If you’ve used one or more of these financing methods to fund your entrepreneurial ventures, I’m
not surprised. Shockingly, many business-start-up experts recommend these methods for
funding new businesses. Their advice is well-intentioned… but nonetheless incredibly
dangerous. The reason for not using your personal credit for business purposes is simple: You
WILL destroy your personal credit. It’s inevitable.

By using your valuable personal credit for business expenses, you run the risk of:


● Lowering your personal credit score.
When you personally guarantee business-related financing, the lender will require a personal
credit check. Every time an inquiry into your credit history is made, your personal credit score
takes a hit. The lower your score drops, the harder it is to secure financing… especially financing
with the most favorable terms.
The more credit you have personally guaranteed for your business, the higher your debt-to-
income ratio soars … and the less that lenders will be willing to give you for personal use.
Signing that loan for your business could prevent you from getting a mortgage on the new house
you plan to buy a year from now.


● Losing everything.


When you use your personal resources or credit to finance a business, you chain your financial
security to your company’s success. If the company fails, you’ll be left holding the bag… and
your personal finances will sink along with your business! You will never recoup the “loan” you
took from your retirement account to get your business launched. Creditors will be calling you
for payment. If things get bad enough, you may even have to declare bankruptcy. To protect
your financial security, don’t use your personal credit to finance your business activities.
Instead, take action to secure credit in your company’s name – WITHOUT Risking Your
Personal Assets, Lowering Your Personal Credit Score, and eventually, without a personal
guarantee. To protect your financial security, don’t use your personal credit to finance your
business activities. Instead, take action to secure credit in your company’s name – WITHOUT Risking Your Personal Assets, Lowering Your Personal Credit Score, and eventually, without a personal guarantee.

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You Probably Didn’t Know You Could Negotiate About This! https://whitsettandwhitsett.com/negotiate-for-a-lower-apr/ https://whitsettandwhitsett.com/negotiate-for-a-lower-apr/#respond Thu, 25 Apr 2019 20:08:00 +0000 https://whitsettandwhitsett.com/?p=3387 Most people know you shouldn’t pay the sticker price on a car and that it’s important to negotiate a job offer, but did you know you can call your credit card company and negotiate for a lower APR? You could be paying way more than you need to without even realizing it. Credit Card Rates

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Most people know you shouldn’t pay the sticker price on a car and that it’s important to negotiate a job offer, but did you know you can call your credit card company and negotiate for a lower APR? You could be paying way more than you need to without even realizing it.

Credit Card Rates & Fees

The high interest rates that come along with most cards can make it hard to claw your way out of debt. However, you do have some options as you work to pay off your balance.

How to Negotiate This

Call your credit card company and explain that you’ve been stretching to make the monthly payments and need to reduce the interest rate somehow. Explain that it would be convenient for you to stay with them and keep the balance on their card, but that you’re considering other cards with lower interest rates. Then ask them if they can reduce the interest rate on your current account.

Be sure to convey that you’re a good existing customer, but you’re having a hard time making the payments with your current rate. Be courteous but clear: You want them to lower your rate, or you’ll consider transferring your balance to a different card with a better rate and closing your account with them. Most companies would rather keep an existing customer than lose them to a competitor.

If you pay off your balance in full each month and don’t have any credit card debt, but you use a card with an annual fee, you can also try to negotiate that fee. Many rewards cards have a fee that can range anywhere from $30 per year to thousands, depending on the rewards. If you’re interested in the perks but can’t stomach the annual fee — or if you had the fee waived in an introductory period but are now facing paying the full amount — call and ask if the fee can be waived or reduced.

If the answer to that query is no, ask for bonus perks or points instead. Again, it’s much more cost-effective for these companies to keep an existing customer than to recruit new ones, and they’ll do a lot to keep you happy.

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What to Look for in a Savings Account https://whitsettandwhitsett.com/what-to-look-for-in-a-savings-account/ https://whitsettandwhitsett.com/what-to-look-for-in-a-savings-account/#respond Thu, 25 Apr 2019 19:56:03 +0000 https://whitsettandwhitsett.com/?p=3383 What to Look for in a Savings Account There are so many savings account bells and whistles! At the core, here are the five things you need to consider when looking at a savings account: Stability Fees Accessibility Interest Income Service Let’s tackle these issues one by one here! Stability: Look for FDIC Insurance The

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What to Look for in a Savings Account

There are so many savings account bells and whistles! At the core, here are the five things you need to consider when looking at a savings account:

  • Stability
  • Fees
  • Accessibility
  • Interest Income
  • Service

Let’s tackle these issues one by one here!

Stability: Look for FDIC Insurance

The first thing to look for in a savings account is FDIC protection. This ensures that your money will be available to you, even if your bank fails. If you choose a credit union, look for National Credit Union Administration insurance, which is similar to the insurance offered by the FDIC.

Fees: How Low Can You Go?

These days, there are so many fee-free options available that you really shouldn’t be paying for a savings account at all. But, if you do choose one with conditional fees, find out if you meet the requirements necessary for getting those fees waived. Even fees as small as a few bucks a month will wear away at your savings, month after month, time after time.

Accessibility: Get Your Money When You Need It!

Sure, you might find a bank that offers outstanding interest and no fees. But if it takes a week to transfer money from that bank to your checking account, it’s not a good place to store your emergency fund! Generally speaking, the more likely you are to need the money at a moment’s notice, the easier it should be to access your money. You may not want to have all your savings linked to your checking account, as that can cause unnecessary temptation to overspend.

The bottom line here is that you might need different levels of accessibility for different accounts. Maybe half your emergency fund is at a bank in town so that you can withdraw cash without ATM fees whenever you need it for example, while storing the rest of it at an online bank with a good interest rate. It’ll take a couple of days to get your money, but not usually more than that. And then you can store savings for particular things like your next car somewhere that you can access the money within three to five days.

Interest Income: Higher Isn’t Always Better!

Remember, this type of savings account is not for investing. And in today’s environment, you shouldn’t expect to find an account with stellar interest rates. The differences between banks are pretty small too, so you shouldn’t choose based on this factor alone. With that said, earning a bit of interest can offset some of what you’d otherwise lose to inflation. So do look at interest rates, especially when choosing a bank for longer-term, higher-balance savings that will earn more over time. But, of course, be sure to balance any increases in interest against potential increases in fees, which can quickly erode that extra interest income.

Customer Service and Tools: Look at Reviews

When evaluating customer service, there are two important factors to consider. The best banks offer all account maintenance and transfers through a professional, reliable, and easy-to-navigate website. Secondly, live customer service representatives should be knowledgeable, helpful, and available.

Good customer service is essential for a bank. If you have trouble logging in online and need your money, you need to be able to get someone on the phone to fix the problem. Check around for customer service reviews for the banks you’re considering. Then, be sure to take a look at additional tools that you might find helpful. These days many banks have apps for managing your money, take check deposits from your phone, or have financial advice available for free. These aren’t make-or-break features for most customers, but can be the icing on the cake!
Once you’ve gotten through all of these steps, you should be able to find a savings account–or two or three!–that meets your particular needs.

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Can Any Business Get Business Credit? https://whitsettandwhitsett.com/can-any-business-get-business-credit/ https://whitsettandwhitsett.com/can-any-business-get-business-credit/#respond Sun, 07 Apr 2019 16:25:32 +0000 https://whitsettandwhitsett.com/?p=3364 Can Any Business Get Business Credit? Yes! Almost any business can get business credit as long as it has an EIN number and entity setup. You won’t need any collateral, and you don’t need financials, you can even be a startup. Personal credit quality won’t matter and you just need to arm yourself with the

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Can Any Business Get Business Credit?

Yes! Almost any business can get business credit as long as it has an EIN number and entity setup. You won’t need any collateral, and you don’t need financials, you can even be a startup. Personal credit quality won’t matter and you just need to arm yourself with the proper building steps.

Now here’s a heads up. ANYONE can pull your business credit reports without your permission. Clients, prospects, potential buyers, and even competitors can see your business information. This means they can see your payment history, high credit limits, employees and revenue, pasty payment performance and so much more. ALL lenders and credit issuers will also review your business credit reports to determine if you’ll be approved or denied, and the rates and terms you’ll pay to see how much you will get approved for.

What is vendor credit?

Vendor credit is sometimes referred to as trade credit. This type of credit is extended from one trader to another of the purchase of goods and services. Trade credit facilitates the purchase of supplies without immediate payment and is often used by business organizations as a sources of short-term financing.

Trade credit is the largest use of capital for a majority of business-to-business sellers in the United States. For example, Walmart, the largest retailer in the world, has used trade credit as a larger source of capital than bank borrowing. Trade credit for Walmart is 8 times the amount of capital invested by shareholders and is actually the second largest source of capital for Walmart, with retained earnings being their largest.

Trade Credit is usually offered with terms

including Net 1, Net 15, Net 30, and Net 60. These forms of trade credit specify that the net amount is expected to be paid in full and received by seller within that 10, 15, 30, or 60 day time period.
The word net in this sense means “total after all discounts”. An example includes a company such as Quill letting you purchase items on a Net 30 term. You make the purchase using your credit, and are given an invoice with Net 30 terms.
This means you have 30 days from the day the services are rendered or your items are shipped to pay your balance in full, minus any discounts. So, if you purchased $100 worth of office supplies, you need to pay back the $100 within 30 days of your items being shipped.

What do I need to know legally speaking?

Legally speaking, net 30 means that you as the buyer will pay the seller on or before the 30th calendar day (including weekends and holidays) of when the goods were dispatched by the seller, or the services were fully rendered. Transit time is included when counting the days.


If you pay after that 30-day period, you’ll typically be charged interest for not meeting the terms. If you pay late, you’ll also damage your business credit scores if the account reports to a business reporting agency.


Net 30 terms are the most popular form of trade credit. Net 10 and Net 15 terms are widely used as well, especially with contractors and service-oriented businesses. Net 60 terms are not as common due to the longer pay-back term, but are sometimes issued.


Trade credit is VERY popular in the United States but, of the millions of vendors who issue credit, over 97% of them do not report to the business credit reporting agencies. When using trade credit to build your business credit profile, it’s essential you find vendors that will give you credit without a personal credit check and report your credit to the BUSINESS credit reporting agencies.

Stay tuned for next week’s blog as we dive into the first steps to using trade credit and vendors to build your business credit!

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How To Start Building Business Credit https://whitsettandwhitsett.com/how-to-start-building-business-credit/ https://whitsettandwhitsett.com/how-to-start-building-business-credit/#respond Fri, 05 Apr 2019 21:26:08 +0000 https://whitsettandwhitsett.com/?p=3358 Are you a new business looking to start building business credit for your future endeavors? We’re here to break it down for you and we hope that by using our resources you gain a better understanding of what Business Credit means, what it is, and how you can obtain and more importantly maintain a great

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Are you a new business looking to start building business credit for your future endeavors? We’re here to break it down for you and we hope that by using our resources you gain a better understanding of what Business Credit means, what it is, and how you can obtain and more importantly maintain a great credit score!

Business Credit, is also referred to as Corporate Credit.

Corporate Credit is obtained in a Business Name with business credit the Business builds its own credit profile and credit score linked to the business EIN number… not the owner’s SSN, and with an established credit profile and score, the business will then qualify for credit.

This credit is in the business name and based on the business’s ability to pay, not the business owners. Since the business qualifies for the credit, when done right business credit is obtained with no personal credit check required from the business owner. And, the business owner isn’t personally liable for the credit the business obtains.

EVERY highly successful business has business credit.

This is how the largest privately and publicly owned companies obtain credit and capital to grow.  Without the CEO or owner needing to personally guarantee the credit and financing but even startups can obtain the same type of credit… it’s just about understanding the proper steps!

Business credit provides a lot of exclusively unique benefits. For one, a credit profile can be built for a business that is completely separate from the business owner’s personal credit profile. This gives business owners DOUBLE the borrowing power as they have both Personal and Business credit profiles built. 

Business credit can actually be built quickly, as business credit scores are based only on how the business pays its bills.

A business must first get approved for Initial credit, usually from VENDORS. Once credit is approved, the business uses the credit to make purchases. Once invoiced, if the business pays the invoice quickly it IMMEDIATELY is issued a HIGH credit score.

Vendor credit accounts can be obtained IMMEDIATELY.

High-limit revolving store accounts can be obtained within 60 days. Fleet and cash credit can be obtained within 120 days and auto vehicle financing can be obtained within 6 months or less.

When it comes to credit, businesses have a much greater need for higher CAPACITY than a consumer does.  This is why approval limits are much higher on business accounts versus personal accounts. Per SBA, credit limits on business cards are usually 10-100 times higher than consumer credit.

Here are some recent approvals:
Apple $7,500 and $12,500
Universal Fleet $4,500
Tractor Supply $5,000
BP $8,000
Fuelman Fleet $16,000
Exxon $15,000
Office Depot $15,000
Costco $20,000
Sears $15,000
Best Buy $40,000
RJS Fleet $40,000

When done correctly, Business Credit can be built without a personal credit check, and without putting your SSN on an application. 

With inquiries on your report, business credit can quickly be obtained regardless of personal credit quality, and there is no personal credit reporting of business accounts Utilization won’t affect your consumer FICO score.

Most business credit can be obtained without the owner taking on personal liability, or a personal guarantee.

This means in case of default, the business owner’s personal assets can’t be pursued, this also increases the value of your company and gives you a competitive advantage.

Start building a better business today by giving us a call or reaching out to us via our contact form https://whitsettandwhitsett.com/business-credit-restoration/.

We look forward to hearing from you!

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Choosing the Right Financing! https://whitsettandwhitsett.com/3350-2/ https://whitsettandwhitsett.com/3350-2/#respond Wed, 27 Mar 2019 20:08:24 +0000 https://whitsettandwhitsett.com/?p=3350 Choosing the Right Financing! There are a lot of different financing options available today. There are so many options that you might not be sure where to start. Let’s dive into some of the available options you have to see what works best. Most business owners try to first apply for financing at their bank

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Choosing the Right Financing!

There are a lot of different financing options available today. There are so many options that you might not be sure where to start. Let’s dive into some of the available options you have to see what works best. Most business owners try to first apply for financing at their bank but according to the Department of Revenue, only about 1.1% of all business funding comes from conventional banks such as SBA loans. Your bank can help you with credit lines and loans, but you MUST have financials and good credit for approval. If you Google “SBA loan approval checklist” you will find this page: https://www.sba.gov/content/.  This list is all that you will need for conventional loan approval.  MOST business financing that happens today comes from alternative lenders, NOT the big banks. These are lenders who have carved out “niches” in the business funding world.  They typically focus on only one aspect of your business to make a lending decision.  If that one area of your business is strong, you can get approved even if you are weak in other areas. This is very different from SBA loans that look at the whole picture. Alternative lending is much easier to secure than conventional loans and you can usually get approved and funded much faster also. The terms typically aren’t as favorable as conventional financing, but you can often get approved when your bank would tell you “no”. We like to group alternative lending into 3 categories.  Credit, Collateral, and Cash Flow. We have discussed several funding types that are available based on your credit. Some use your business credit for approval while others use your personal credit for approval.  You can’t go into your bank and get multiple business or personal cards, but there are lenders who focus on this type of financing only, and can get you multiple high limit business credit cards that report to the business reporting agencies and have great incentives such as low intro rates.  Remember, you must have good personal or business credit to be approved and you can be approved even if you are a startup. Collateral based lenders are also called asset based lenders. They can approve you for money even if you have bad credit, and in many cases if you just opened your business. The key is you need acceptable collateral to get approved. Acceptable collateral includes 401k and stocks, inventory, equipment, real estate, a book-of-business (insurance agents only), a car lot inventory, purchase orders and account receivables (if from another business), commercial signs and graphic wraps, and other viable types of business collateral. Vehicles are depreciating assets and typically won’t qualify.  Rates and terms on collateral based funding are VERY good, sometimes better than conventional loans, and it’s not uncommon to get rates of 5% or less, even with bad credit. If you default, the lender just takes your collateral, so the risk isn’t as high as with other types of business funding. Most advances are forms of cash flow based financing. This is the fastest and easiest money you can get your hands on and you can get approved with bad credit and no collateral, but you will need to show bank statements that prove you have over $10,000 in monthly deposits and at least six monthly transactions. You can usually get as much as 12% of your annual revenues advanced to you. These are cash advances so the rates are not great, ranging from 8-45% depending on risk and you will usually be approved for a 6-18 month payback.  Once you prove yourself with your first advance, terms get MUCH better on future advances. This is why we find that over 70% of those who get their first advance come back and get more money ongoing! There is A LOT of money available for business owners, more now than there has ever been in the past. You just need to know what type of financing to go after, once you know that you can more easily find what you need.

Click Here to learn more about getting financing for your business.

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3 Types of Credit Your Lenders ARE Looking At! https://whitsettandwhitsett.com/3-types-of-credit-your-lenders-are-looking-at%ef%bb%bf/ https://whitsettandwhitsett.com/3-types-of-credit-your-lenders-are-looking-at%ef%bb%bf/#respond Mon, 11 Mar 2019 15:16:20 +0000 https://whitsettandwhitsett.com/?p=3341 When you apply for business financing there is actually three types of credit that are reviewed for your approval. No matter what you are told, personal credit ALWAYS matters… unless it isn’t being looked at. For example, when you are applying for business credit you can use your EIN to get approved and leave your

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When you apply for business financing there is actually three types of credit that are reviewed for your approval. No matter what you are told, personal credit ALWAYS matters… unless it isn’t being

looked at. For example, when you are applying for business credit you can use your EIN to get approved and leave your SSN off the application. When you do this, your personal credit isn’t even looked at, nor is it used for the lending decision. This is about the only exception in the business funding space.

All other funding types including advances look at and care about your personal credit. YES, you can get approved for cash flow financing and merchant advances with bad credit, but your repayment terms won’t be nearly as favorable then if you had good personal credit.

SBA loans, conventional loans, most other long term loans, and credit lines do require good personal credit for approval in most cases. Collateral and asset type based financing doesn’t care about personal credit as much. This is if financing only looks at collateral for approval, not financing where collateral is required for approval.

There is no FCRA in the business world, so lenders will never disclose to you that they actually pull your business credit when you apply for business financing, except they DO pull your business credit!

Just think, you are applying for money for your business, and your business has its own credit profile and score. So, of course they will want to see how the business pays its bills on top of how you do as the owner. Not having established business credit makes you look like a rookie, a startup, a “non-established” business. This will lead to denial so insure you have at least 5-10 reported accounts, and that you are paying them as you have agreed to.

You actually have three types of credit: Personal Credit, Business Credit and BankCredit. All three should be good to give you the best chance of approval. Your bank rating is mostly based on the amount of money you keep in your bank account over the last 90 days. High 5, account balance of $70,000-99,999, Mid 5, account balance of $40,000-69,999, Low 5, balance of $10,000-39,000, High 4, 7,000-9,999, Mid 4, 4,000-6,999 and Low 4, 1,000-3,999.

Call today to learn more about getting financing for your business.

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5 Quick and Easy Ways To Build Business Credit! https://whitsettandwhitsett.com/5-quick-and-easy-ways-to-build-business-credit/ https://whitsettandwhitsett.com/5-quick-and-easy-ways-to-build-business-credit/#respond Fri, 01 Mar 2019 19:05:05 +0000 https://whitsettandwhitsett.com/?p=3313 1. Take care of your personal credit first. It might seem strange, but personal credit can really help you build business credit faster. If you take care of your personal credit, the process of building your business credit will be easier. 2. Build credit and apply for credit before you need it. This is one

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1. Take care of your personal credit first. It might seem strange, but personal credit can really help you build business credit faster. If you take care of your personal credit, the process of building your business credit will be easier.

2. Build credit and apply for credit before you need it. This is one mistake that many businesses make. They wait until they really need credit to worry
about getting credit. And guess when it is most difficult to get approved for
business credit? When you really need it! You need to think like the story of
Noah’s Ark… and start building your boat even though everything is sunny
and bright right now. Build business credit and apply for business credit
before you need it. Someday you’ll be glad you did!

3. Use the credit you do have. You can’t effectively build credit if you don’t use what credit you do have.  Use your credit, and use it responsibly. This will mean making charges on any business credit cards, and paying them off in a timely manner. It will mean using vendor credit accounts from places like Quill to buy basic supplies each month, and paying those charges off early.  Working in this way from the very start is the best way to build the best business credit profile for the long haul.

4. Build relationships with local banks, and diversify among lenders. There are two very important things that few businesses consider when building business credit: First, RELATIONSHIPS with local banks are extremely important. Second, the “banks” part should always be plural. Let us explain, building a relationship with a local bank is smart because many local banks aim to attract local businesses.  They often have perks and products that other large banks won’t have. But the flip side of this is that local banks of all sizes (large and small) will change periodically. Their products will change, their policies will change, their loan terms will change, and when that change comes, it is important for you to have built other relationships with other banks… just in case you need them. One recommended strategy is to utilize different types of banks for different types of business accounts. You may have a business checking account at one bank, a business savings account at another, and you may have a small line of credit with yet another. Spreading out your business accounts like this can allow you to build valuable relationships with multiple banks, and will give you the best options when you eventually need a bank loan for your business.

5. Don’t forget that there are other options out there. When you are building business credit, and especially when you are shopping for larger loans, consider some of the viable alternatives: Prosper.com, Kickstarter.com, private lenders, investors, and more. How can these things help you “build” credit?  For one, they will keep some credit off of your business credit report, and that can actually be good in some cases, especially when just starting out. Secondly they can be an alternative source of funds when the traditional sources are too slow or too limited. Thirdly, they can be a source of references when applying for bank loans or other larger credit sources in the future. In all of these cases, the key is really to take action and “do something” now. You’ve got to take care of your personal credit. You need to START NOW and build business credit. You need to — USE your business credit. You need to BUILD RELATIONSHIPS. You need to actively seek funding for your business. All of these steps ultimately boil down to one thing: ACTION! So take action, and take positive steps to build your business credit today. 

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