On the previous post I mentioned how you can start building business credit right away by having your everyday expenses like web hosting, phone services and printing reported on your profile. If the companies you’re doing business with are not reporting your payment history you can use a business credit builder product at DNB that will get the job done.

You can also start corporate credit accounts with companies like Verizon, Quill, Accurate Office Supply, Best Buy, Fed Ex and many others. You will need to provide your EIN number when you open an account and some companies will request your Dun & Bradstreet number. Remember, not all companies that you start business credit with will report your payment history.

Also, each company has its own credit approval guidelines and minimum requirements for business start up credit. For example, Accurate Office Supply offers a net 30 account with no personal guarantee but requires your business to have a minimum of three trade references and one bank reference.

So if your goal is building a strong business credit file then you will either need to select companies that report to the business credit bureaus or use the dun & bradstreet credit builder product to have your trade references added yourself.

You can also take advantage of companies that provide you a business credit supplier directory like the Business Credit Insiders Circle.

Business Credit Blog » Business Credit » Start Business Credit – start up credit for small business

Start up Business Credit Cards

While trade credit with companies like Quill and Fed Ex can help your business fund its short term needs cash credit is much more preferable. The mistake that most business owners make is applying for a business credit card that requires a personal credit check as well as a personal guarantee.

These types of cards are a glorified version of a personal credit card because the charges and debt your business incurs all report on your personal credit reports. Furthermore if you default on any outstanding debt incurred on the card then you are personally liable for that debt.

So you’re probably wondering how a start up company like yours can obtain a business credit card with no personal credit check or personal guarantee. For starters I suggest a secured business credit card for establishing business credit. After several months of solid payment history you can request an unsecured credit line increase.

In addition you may want to consider a business debit card from the bank that services your business checking account. Even though this doesn’t start corporate credit for your company it does help establish bank credit.

You should always take advantage of these types of products offered at your bank. Some banks like Comerica, Key Bank and Associated Bank have its business credit card issued through Élan Financial Services. Élan’s underwriting guidelines for business credit cards require a personal credit check for approval but your company’s revolving debt and payment experience do not report to your personal credit reports. A big plus for your personal debt to credit limit ratios!

As you can see even start ups can start building business credit with everyday expenses, corporate credit accounts, a secured business credit card, a business debit card and business credit cards.

To your business credit success!

Business Credit Resources

» Business Credit Seminar

» Business Credit Insiders Circle

» Business Credit Blog

 To access business credit insider secrets, premium vendors, leasing companies, business credit cards, and lenders that report to all the major business credit bureaus become a member of my Business Credit Insider’s Circle. Submit your name and email below for details and receive a free audio seminar ($597 value) =>

Marco Carbajo is a business credit specialist, author, speaker, and founder of the Business Credit Insider’s Circle. He is a weekly columnist for Dun & Bradstreet Small Business Solutions, a business credit blogger for All Business & American Express Small Business and author of “Eight Steps to Ultimate Business Credit” and “How to Build Business Credit with No Personal Guarantee.” His articles and blogs have also been featured in Business Week, The Washington Post, The San Francisco Tribune, Scotsman Guide, Alltop, Entrepreneur Connect, and Active Rain.

Start Building Business Credit

You can start building business credit rather quickly by applying for vendor credit lines. There are companies that are willing to extend credit to your business with no personal credit check or guarantee. Even if your company has no credit history you can get approved but expect limited terms and low credit limits initially.

The benefit to building business credit using vendor credit lines is that it will provide your business with thousands of dollars in products it needs and allow it to pay the invoices at a later date. This helps you conserve cash flow for more critical short term needs your business may have.

Another benefit is vendors report your positive payment experience to the business credit bureaus. The more vendors you establish credit lines and payment experience with the stronger the business credit profile you will build. This alone can positively impact the size of the credit limit recommendation for your business which is determined by the business credit bureaus and publicly disclosed on your file.

However, one of the biggest mistakes made by small business owners is assuming that every vendor reports their payment history. Currently there are over 500,000 vendors who extend lines of credit to businesses but less than 6,000 report your payment experience.

So when you start building your business credit file you want to be sure to select vendors that report. You can verify this by inquiring with a vendor that you plan to apply with. Be sure to ask what business credit agency they report to and how often they report.

One of my favorite aspects to vendor credit lines is the minimal qualifications required for approval. In many cases an application only requires your business contact information, Federal Tax ID#, Dun & Bradstreet#, authorized name and signature and not your social security number or personal guarantee.

The specific vendors requesting only this information will pull a business credit report to base their approval which makes obtaining vendor credit lines much easier and more convenient compared to credit cards or loans. A prime example of one of these types of vendors is a company called Quill.

Quill offers a net 30 account and reports to Dun and Bradstreet.  Best of all they report your payment history every 30 days. For small orders you can start building business credit if your business has a listing on the 411 directories and a working website. New businesses can start out with smaller limits that will increase when you pay on time every month.

I also encourage every one of my client’s to join my Business Credit Insider’s Circle. As a member they gain access to all the information, sources, videos, audios, and content not available to the general public. In addition each month we report their membership payments to Dun and Bradstreet!

As you can see vendor credit provides a way to showcase your business’s ability to properly handle its financial obligations, face scrutiny, and show responsibility while maintaining a reasonable debt to income ratio. So start building business credit today and avoid the use of your personal credit and guarantee.

To access business credit insider secrets, premium vendors, leasing companies, business credit cards, and lenders that report to all the major business credit bureaus become a member of my Business Credit Insider’s Circle. Submit your name and email below for details and receive a free audio seminar ($597 value) =>

 Marco Carbajo is a business credit specialist, author, speaker, and founder of the Business Credit Insider’s Circle. He is a weekly columnist for Dun & Bradstreet Small Business Solutions, a business credit blogger for All Business & American Express Small Business and author of “Eight Steps to Ultimate Business Credit” and “How to Build Business Credit with No Personal Guarantee.” His articles and blogs have also been featured in The Scotsman Guide, Alltop, Entrepreneur Connect, and Active Rain.  

Start Business Credit: Entity Selection

I get asked this question quite often and thought I would clear the air on what business entity selection is best when you start building business credit.  This step by far is the most important because it’s the foundation for what you will be building your business credit upon.  Not to mention all the other important areas that entity selection affects such as taxes, liability, asset protection and so on.

 When a client comes to me for advice on selecting the best business structure, the first questions are:

 What Does Your Business Do?

I ask this to get you into the best structure for taxes. How your income is taxed depends on the type of income your business earns. If your income is earned through passive sources – rent, portfolio income, etc., it will be taxed differently than if your business provides a product or a service that you sell.

Where Do You Live?

I ask this question because where you live can make a difference to the kind of business structure you form. Some states charge more for one type of structure over another. Knowing where a client lives allows my entity specialist to choose the most economic structure.

How Much Does Your Business Earn?

This question again relates to taxes, and is specifically geared towards someone who receives “earned” income (that’s income from selling a product or providing a service). There’s an income threshold we look at – once your income surpasses it, it’s time to rethink your options.

Taxation is a Critical Factor!

Did you notice that all three of those questions are related to taxes? That’s the secret lesson to take away here. All business structures will work in all situations. The secret is knowing which business structure best matches your income and tax situation so you keep more of what you earn.

The mistake I see so many business owners make is selecting the wrong entity structure for their company. They get anxious about building their profile with the business credit bureaus and think that one type of entity is better than all the rest. There is no cookie cutter approach to entity selection because every business is different. Don’t take any shortcuts in this step because it can cost you big time.

As a business owner, you have four real choices when it comes to business structures and two bad choices:

    * C Corporation

    * S Corporation

    * Limited Liability Company

    * Limited Partnership

    * Sole Proprietorship

    * General Partnership

Business Credit Blog » Business Credit » Start Business Credit – entity selection for business credit
 

Sole Proprietor and General Partnership

To learn why Sole Proprietorships and General Partnerships are so dangerous to you and your family, read on.

A Sole Proprietorship is bad…

Have you heard the saying “You get what you pay for?” Well, you normally don’t pay anything to start either a Sole Proprietorship or a General Partnership. Of course you don’t get anything, either. Unless you count the following as valuable business assets:

    * Lots of personal liability

    * No protection from your business creditors

    * An increased risk of being audited

    * Problems with valuation for a subsequent sale of the business

The reason for this lack of protection is because neither of these structures is considered a separate legal structure. Instead, they are considered personal extensions of you, if you are operating as a Sole Proprietorship, or you and your partners, if you’re operating as a General Partnership.

And, because these business types are considered personal extensions of you, you don’t have any protection from them.

But a General Partnership is Downright Ugly!

It gets even worse if you are operating with a partner as a General Partnership. That’s because not only are you responsible for all debts and agreements you enter into in the name of your business, you’re also on the hook for all of your partner’s actions in the name of your business as well. This can be devastating if your partner is financially irresponsible, and, because either of you can bind the partnership; you have zero protection from your partner.

If You Don’t Choose a Good Entity, the Government Will Choose a Bad One for You!

If you’ve been doing business up to now without a business structure, both the IRS and your state government have defaulted your business into either a Sole Proprietorship or a General Partnership.

And that means you’re exposed.

Select the proper business structure  and incorporate your company if you want to start business credit and you want to protect yourself from personal liabilities. So if you already decided on the right entity structure then the next step is incorporating your business.

If you already have an existing entity set up then the next key step is obtaining a federal Tax ID.

Business Credit Resources

» Business Credit Seminar

» Business Credit Insiders Circle

» Business Credit Blog

Are you ready to incorporate and start building business credit? Become a member of my Business Credit Insiders Circle and gain access to a proven step-by-step business credit building system.

To Your Success!

Marco Carbajo

About the Author

Marco Carbajo is a business credit specialist, author, speaker, and founder of the Business Credit Insider’s Circle. Want to learn more about how you can become a member and gain access to Marco’s business credit secrets, sources, and information on how to obtain unlimited financing for your business without a personal guarantee? Claim his FREE ‘Eight Steps To Ultimate Business Credit Without a Personal Guarantee’ audio seminar ($597 Value), for a limited time by submitting your name and email below =>

Business Credit Ratings

There’s been quite a stir on the integration of FICO® 08 which is the credit scoring system used by the majority of lenders to determine a consumer’s credit worthiness. Similar to your personal credit ratings, businesses and corporations also have business credit ratings that potential lenders use to determine its credit worthiness.

Unlike a personal credit rating, there is no designated standard for determining the credit worthiness of businesses. However, the main tool used to determine and establish company credit ratings is D&B’s PAYDEX system.

Where a personal FICO® score is based only on credit history that includes information on how much a person borrows and how well they repay loans, a credit rating for a business takes into consideration company size as determined by assets and number of employees.

Where personal credit ratings are based on financial information provided by credit card companies, retail establishments, and financial institutions, a business credit report and rating is determined by information supplied by the business owner and gathered from vendors, suppliers, and other trade accounts.

For this reason, potential lenders may be different from one another in their evaluation of a business’ credit history by emphasizing certain qualifications more than others.

Like most industries, there is a specialized language involved with business credit reports and ratings.

The following is a list of some of the most common concepts and terms as well as their definitions:

Average High Credit / Highest Credit

In order to put a business’s credit in perspective, these are based on the total amount of credit owed as compared to the industry as a whole.

Business in Good Standing

Includes any problems with the business overall.

Commercial Credit Score

A D&B prediction regarding the chances of an account becoming severely delinquent within one year.

Comprehensive Report

This is a combination of several D&B business credit reports that paints a more complete picture of the company’s credit history. It includes the results of the PAYDEX analysis, a company’s credit score and Financial Stress class, as well as any public filings or liens, the business’s history and operations (including when it filed for incorporation, annual financial statements, facilities, affiliations, and number of employees).

Credit Score Class

This is part of the D&B assessment that gauges payment habits to determine how likely it is that a potential account will be delinquent in the next 12 months. The scoring can range from 1 to 5 with 1 being the score assigned for the lowest risk and 5 for the highest.

Financial Stress Score

This is part of the D&B assessment that analyzes the Financial Stress that a business is experiencing in order to predict how likely it is that a business will fail in the next 12 months.

PAYDEX

This is D&B’s primary assessment that analyzes how likely it is that a company will make its future payments on time.  An 80 paydex score for a business can be compared to having a 720 personal credit score.

Sample business credit reports:

Dun & Bradstreet business information report sample

Dun & Bradstreet enhanced comprehensive report sample

Dun & Bradstreet Credit eValuator Plus Report sample

Corporate Experian Business Credit Score Report sample

Small Business Equifax Commercial Credit Report sample

To order business credit reports:

Dun & Bradstreet (D&B)

Equifax Small Business Enterprise

Experian SmartBusinessReports^TM

Every business will at one point require an influx of cash in order to cover operating expenses, expansion costs, legal fees, inventory or a range of other items the business may require in order to operate. The worst mistake you can make is seeking funding when your business needs it most. Lenders extend cash credit lines to businesses that don’t need the capital and have strong business credit ratings. Start digging your well before your business gets thirsty!

Are you ready to start building your business ratings? Become a member of my Business Credit Insiders Circle and gain access to a proven step by step business credit building system. A system that provides you access to premium vendors, business credit cards, funding sources and lenders that report to all the major business credit bureaus. Submit your name and email below for details and receive a free audio seminar ($597 value) => 

About the Author

Marco Carbajo is a business credit expert, author, speaker, and founder of the Business Credit Insiders Circle. A business credit solutions membership helping business owners build small business credit. He is a weekly columnist for Dun & Bradstreet Small Business Solutions, a business credit blogger for All Business & American Express Small Business and author of “Eight Steps to Ultimate Business Credit” and “How to Build Business Credit with No Personal Guarantee.” His articles and blogs have also been featured in Business Week, The Washington Post, The San Francisco Tribune, Scotsman Guide, Alltop, Entrepreneur Connect, and Active Rain. 

A business Federal Tax ID number (also called an EIN number) is mandatory, because without one, your corporation will be useless. Your Tax ID number will be the number that identifies your business and information. It’s just like how your Social Security number will identify who you are for your personal credit.

Once you have incorporated your business now you’re ready to apply for an EIN. If you chose to use my personal entity specialist then this would all be taken care of for you.

If you already have a corporation or LLC but do not have a Federal Tax ID number than you will need to apply for one.

For more information be sure to check out the FAQ section on Employer ID Numbers.

If you have had a corporation for some time but never have obtained a tax ID number don’t worry. Tax ID numbers are not generated in a numerical fashion and there is no way for a lender to determine when your tax ID was obtained and compare it to the start of your business.

This is also important to know for shelf corporations if you are planning on using one. After you have obtained your tax ID number for business you’ll also be ready to open a small business bank account.

If you’re serious about building business credit without a personal guarantee then you will have to complete these two steps before you can move forward:

1. Incorporate your business
2. Obtain a Federal Tax ID#

What type of business structure do you have?

Ready to start building business credit for your corporation? Become a member of my Business Credit Insiders Circle and gain access to a proven step-by-step business credit building system? A system that provides you access to premium vendors, business credit cards, funding sources and lenders that report to all the major business credit bureaus. Submit your name and email below for details and receive a free audio seminar ($597 value) => 

About the Author

Marco Carbajo is a business credit expert, author, speaker, and founder of the Business Credit Insiders Circle. A business credit builder system providing business credit information for business owners. He is a weekly columnist for Dun & Bradstreet Small Business Solutions, a business credit blogger for All Business & American Express Small Business and author of “Eight Steps to Ultimate Business Credit” and “How to Build Business Credit with No Personal Guarantee.” His articles and blogs have also been featured in Business Week, The Washington Post, The San Francisco Tribune, Scotsman Guide, Alltop, Entrepreneur Connect, and Active Rain. 

Business Credit with No Personal Guarantee

Building small business credit has incredible advantages including obtaining cash credit cards with no personal guarantee. Two of the most common questions I’ve been getting lately is…

Are no personal guarantee businesss credit cards still available in the marketplace?

 and…

How do I go about finding who offers no personal guarantee cash credit cards for businesses?

That’s the magical question but before you get some answers you need to know that in order for you to obtain cash credit cards with no personal guarantee you will need to have an established business credit profile with a DNB paydex of 80 or greater plus 7-10 trade lines (vendor credit) reporting credit lines ranging from $2k and greater.

The video below will share with you the three ways to obtain Small Business Credit with No Personal Guarantee credit cards for your business. Don’t be confused with no personal guarantee vendor credit because that’s very easy to obtain. Cash credit is what most if not all business owners are seeking to obtain greater amounts of especially these days.

If you plan to apply for a business credit card prior to building business credit pay close attention to what information the application requires. It must require your Federal Tax ID, Dun and Bradstreet number, and may require a personal credit check. It’s always a good idea to verify with the credit card issuer how they report your payment history. If the answer is your personal credit file then it’s not a true business credit card.

True business credit cards offer three main benefits:

1. Payment history is solely reported to the business credit bureaus
2. No personal guarantee which shields you and your family from liability
3. Separation of Personal Credit and Business Credit eliminates the co mingling of funds & credit profiles

What type of small business credit are you looking for? 

To your Business Credit Success!

To access business credit insider secrets, premium vendors, leasing companies, business credit cards, and lenders that report to all the major business credit bureaus become a member of my Business Credit Insiders Circle. Submit your name and email below for details and receive a free audio seminar ($597 value) =>

About the Author

Marco Carbajo is a business credit specialist, author, speaker, and founder of the Start Business Credit.com.  He is a weekly columnist for Dun & Bradstreet Small Business Solutions, a business credit blogger for All Business & American Express Small Business and author of “Eight Steps to Ultimate Business Credit” and “How to Build Business Credit with No Personal Guarantee.” His articles and blogs have also been featured in Business Week, The Washington Post, The San Francisco Tribune, Scotsman Guide, Alltop, Entrepreneur Connect, and Active Rain.  

Unfortunately times have changed for business credit for small business and what has become a shocking reality to many are the ramifications of what the co mingling of personal credit files for business financing has resulted in.

Many small business owners who have followed the traditional route of personally guaranteeing each and every credit card, credit line, or loan for business have come to realize that they have put their personal assets and family at risk! 

 
The single greatest challenge during these tough economic times facing small business in America is adapting to change. Less than ten percent of business owners in America know how to truly separate their personal credit from business credit let alone understand how to set up a business credit profile an establish a good rating.

 
So what is business credit?

It’s the ability to obtain financing under the name of your business entity without using your personal credit or personal guarantee. Business credit should be separate and based on the corporation’s credit worthiness not yours! Recently Entrepreneur Magazine was quoted as saying “You should differentiate your personal credit from your business credit.”

If you own a separate legal entity for your business than you have a unique opportunity that no other individual or sole proprietor has. It’s the ability to establish a business credit profile that is completely separate from a personal credit profile.

If you think you’re business is just making it fine despite the current economic times and you don’t need the credit think again! The reality is that your business will at one point require an influx of cash in order to cover unforeseen operating expenses, development, expansion, legal fees, inventory or a range of other items that a business may require in order to grow.

One of the key advantages of having business credit is instead of putting your personal credit and assets at risk every time your company requires financing you would now be in a position to secure the financing you need with your businesses’ credit. Some other benefits you can expect include:
 
…any debt you accumulate for the business would only report to your business credit file not your personal credit file.

…eliminating the co-mingling of funds–and this includes the “co-mingling” of credit profiles so you won’t jeopardize the protection of the corporate veil.

…protecting you and your family from personal liability when you get approved solely on your businesses’ credit file.

…improving your personal debt to credit limit ratios by transferring the balances of business debt used with your personal credit to your business credit.
 
…increase your businesses’ ability to obtain cash credit 10 to 100 times greater than you can obtain personally.

…SAVING MONEY! For example, an individual might pay up to 13% interest on a $100,000 line of credit whereas a business could qualify for an interest rate of 7%. That would save you almost $40,000 in interest alone.

After the recent economic downturn small business owners like you are facing a new era when it comes to business financing. Banks, lenders, suppliers, leasing companies and others are making adjustments, adopting new rules, and facing new regulations in the lending arena.

Now more than ever you need to be pro active and establish a new level of financial preparation which includes establishing a strong business credit profile, a favorable business credit rating, and a solid bank rating. I encourage you to start building your business credit today and enjoy the benefits and peace of mind that comes with it!

To Your Success!

Marco Carbajo

About the Author

Marco Carbajo is a business credit specialist, author, speaker, and founder of http://www.startbusinesscredit.com . Want to learn more about how to build business credit and obtain unlimited financing for your business? Claim Marco’s popular FREE business credit seminar ($597 Value), available by simply submitting your email below =>

This leads me to ask you “What has business credit done for you lately?”

Statistics show that over 65% off all small businesses use credit cards on a regular basis; but the problem is less than half of those credit cards are actually in the business name.

The single greatest challenge facing small business owners is awareness. Less than ten percent of business owners in America know about let alone understand how business credit is established or how to even generate a business credit rating.

Business credit can do much more than personal credit can or ever should do for your business!

So what is business credit?

It’s the ability to obtain financing under the name of your business entity without using personal credit. Business credit should be separate and based on the corporation’s credit worthiness not yours! Recently Entrepreneur Magazine was quoted as saying “You should differentiate your personal credit from your business credit.”

Entrepreneurs and small business owners who have a separate legal entity for their business have a unique opportunity that no other individual or sole proprietor has. It’s the ability to establish a business credit profile that is completely separate from a personal credit profile.

If you think you’re business is doing just fine and you don’t need the credit think again! The reality is that every business will at one point require an influx of cash in order to cover unforeseen operating expenses, development, expansion, legal fees, inventory or a range of other items the business may require in order to grow. Adopting a ‘cash only’ strategy is a good plan but should never be the only plan.

After the recent economic downturn today’s small business owner is facing a new era when it comes to business financing. Banks, lenders, suppliers, leasing companies and others are making adjustments, adopting new rules, and facing new regulations in the lending arena.

Now more than ever you need to be pro active and establish a new level of financial preparation including a strong business credit profile, a favorable business credit rating, and a solid bank rating. Wells Fargo states “The longer you delay establishing business credit, the longer you delay taking advantage of business loans.”

One of the key advantages of having business credit is instead of putting your personal credit and assets at risk every time your company requires financing you would now be in a position to secure the financing you need with your businesses’ credit. Here are some other benefits of building business credit:

1. Any debt you accumulate for the business would only report to your business credit file not your personal credit file.

2. Eliminate the co-mingling of funds–and this includes the “co-mingling” of credit profiles so you won’t jeopardize the protection of the corporate veil.

3. Protect you and your family from personal liability when you get approved solely on your businesses’ credit file.

4. Improve your personal debt to credit limit ratios by transferring the balances of business debt used with your personal credit to your business credit.

5. Eliminate personal liability you have on your existing business debt by balance transfer from personal credit to your business credit.

6. Increase your personal credit limit availability for you and your family.

7. Increase your businesses’ ability to obtain cash credit 10 to 100 times greater than you can obtain personally.

8. Improve the appearance of your businesses’ funding capacity and stability.

9. Eliminate inquiries on personal credit when applying for business financing.

10. Last but not least you SAVE MONEY! For example, an individual might pay up to 13% interest on a $100,000 line of credit whereas a business could qualify for an interest rate of 7%. That would save you almost $40,000 in interest alone.

CLICK HERE to become a business credit member and discover what business credit can do for you!

To Your Success!

Marco Carbajo

About the Author

Marco Carbajo is a business credit specialist, author, speaker, and founder of http://www.startbusinesscredit.com . Want to learn more about how to build business credit and obtain unlimited financing for your business? Claim Marco’s popular FREE business credit seminar ($597 Value), available by simply submitting your email below =>

As a result of the economic downturn many find themselves being faced with less than perfect credit.  While credit repair companies are springing up all over the country there are few like United Credit that can truly deliver.

But in the meantime can you start building business credit with bad personal credit?

Absolutely!

There are vendors, suppliers, leasing companies, and even cash credit issuers that will extend credit to your business solely based on your businesses credit rating.  In order for you to obtain cash credit without a personal guarantee first requires you to start establishing strong business credit with vendors & suppliers.

The key is identifying which vendors & suppliers offer the following:

• Credit with no personal credit checks
• Credit with no personal guarantee
• Credit for start ups (great for new entities)
• Monthly payment reporting to business credit bureaus

If this part leaves you scratching your head don’t worry we have all this work already done for you if you’re interested. As long as you understand the fact that cash credit without a personal guarantee can only happen once you have established a strong business credit profile.

Here’s a quick comparison on personal credit vs. business credit.

As you can see there are HUGE differences and the one in particular that should get you really excited is the unlimited amount of business credit files you can establish! 

For a complete list of our preferred business credit sources join my business credit community today!

Remember – Abundance is not something we acquire. It is something we tune into. ~ Wayne Dyer

To Your Success!

Marco Carbajo

About the Author

Marco Carbajo is a business credit specialist, author, speaker, and founder of http://www.startbusinesscredit.com . Want to learn more about how to build business credit and obtain unlimited financing for your business? Claim Marco’s popular FREE business credit seminar ($597 Value), available by simply submitting your email below =>

Submit Your Email and Receive ‘8 Steps to Building Ultimate Business Credit’ audio FREE ($597 Value)

A business line of credit is typically revolving like a credit card and it has no fixed payment terms and is based on an adjustable market based interest rate. Some have a feature of only requiring monthly interest only payments to be made in order to keep the payments small while your business grows. In most cases you can elect to make the full monthly payment of both the principle and interest when you want to and can pay the full balance at any time without penalty prior to the maturity date.

The amount your business is able to receive from a business line of credit will depend on your business past gross annual revenues and projected annual cash flow.

HOT Tip: Most banks will not require business tax returns and profit and loss statements when you keep your credit line of request below $50k. 

A good test to see if your business will qualify is to examine your business bank rating to determine if there has been a sufficient average daily balance to adequately support the line of credit repayment. Typically a low 5 bank rating can grant you an approval so be sure to establish a good rating prior to applying.

Here’s what you need to apply for a business line of credit

Business Information

•Business name

•Business address (physical address, no P.O. Boxes)

•Business phone number

•Business fax number

•Business Taxpayer Identification Number(s) (TIN) or Social Security Number(s) (SSN)

•Business Duns Number

•Date the business was established

•Ownership type

•Number of owners

•Gross Annual revenue or sales

•Business banking account number(s) and balance(s)

Business Owner Information

•Name

•Home address

•Home phone number

•Social Security Number(s)

•Country of Citizenship if not United States

•Date of Birth

•Percentage of ownership

•Annual household income

•Personal savings and/or checking account number(s) and balance(s)

Contact Information

•Primary contact (must be an owner of the business)

•Primary contact phone number

•Primary contact email address 

One of my preferred banks for business lines of credit is Wells Fargo.

Other banks for business lines of credit that I recommend are:

Capital One

PNC

US Bank

For a complete list of our preferred lenders join my business credit community today!

Remember – Abundance is not something we acquire. It is something we tune into. ~ Wayne Dyer

To Your Success!

Marco Carbajo

About the Author

Marco Carbajo is a business credit specialist, author, speaker, and founder of http://www.startbusinesscredit.com . Want to learn more about how to build business credit and obtain unlimited financing for your business? Claim Marco’s popular FREE business credit seminar ($597 Value), available by simply submitting your email below =>

Submit Your Email and Receive ‘8 Steps to Building Ultimate Business Credit’ audio FREE ($597 Value)