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
Fuelman Fleet $16,000
Office Depot $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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