Mystery of Business Credit

If you don't know the answer to any of the questions below, you are among thousands of business owners who are lost in the maze of how to build business credit. We can provide you the answers to the mystery.
Who are the two largest business credit bureaus? What rights does a business owner have for incorrect information on a credit report? What are the business credit scores? What do business lenders look at? Where do you find companies that grant credit? How do you get a company to grant credit? Which companies report to the business credit bureaus? What credit card companies do not require personal guarantees?

Advantages of Having A Business Credit Profile

Just by building a business credit profile you will be able to limit the use of your personal guarantee and build business credit regardless of your personal credit history.
You will have more cash for the business.  Convenience in purchasing.  Protection of your personal assets from that of the business.  Limit your personal liability from the business.  No need for personal credit checks.  Purchase vehicles with no personal guarantees.   Purchase equipment, computers and more with your business credit.  Preparing your business for future lending needs

Separating You From Your Business

You can separate your personal liability and protect your personal assets from that of the business just by incorporating. It is possible to build a business credit profile for a sole proprietorship or partnership however you are still responsible for all the debts of the company. We recommend building your business credit as a corporation or limited liability company. Other advantages of a corporation are:
Separates you from your business.  Limited liability of the owners and officers. Lower tax liability.  100% tax deductible insurance.  Reimburse 100% of medical expenses.  Corporate image.  Raise capital and build credit faster.  Lower your audit risk as a small corporation.  Stock ownership - easier to transfer assets.  Protect Your Personal Assets

Biggest Advantage of Having Business Credit

The biggest advantage of having a good business credit profile is saving money. By obtaining a more favorable credit score you will lower the interest you pay on loans and leases. For example:

 

Average or No Credit Score Good Credit Score Loan Amount $50,000 $50,000 Length of Loan 10 years 10 years Interest Rate 11% 8% Payment $689.34 $606.64 Total Paid $82,720.80 $72,796.80

Total Savings For Having Good Credit $9,924.00

There are two business credit reporting agencies in the United States that lenders and financial institutions rely on for information to grant credit. The two credit agencies are D&B and Experian.

D&B

	Over 70 million businesses are registered with D&B
	The credit profile created by D&B uses information provided by the business owners and vendors of the business
	Grants a PAYDEX score to businesses based on payment experiences of the business
	Issues a DUNS Rating based on the financial statements of the business
	Has a High Risk status for company's that will destroy a company's ability to obtain credit

Experian Business

	Over 14 million businesses are registered with Experian
	The credit profile created by Experian uses information provided by vendors only
	Grants an Intelliscore based on payment experiences
	Is one of the three largest personal credit bureaus

Business Credit Scores

The business credit scores with D&B and Experian are what the lenders and financial institutions look for to determine credit.

PAYDEX Score

	Score ranges from 0 to 100
	A score of 75+ is good
	Based on payment experiences reported by vendors
	Need 5 trade references who report to D&B

Intelliscore

	Score ranges from 0 to 100
	A score of 75+ is good
	Based on payment experiences reported by vendors
	Need 2 trade references who report to Experian

DUNS Rating

	Various rating schedules
	Based on employee size and financial statements
	Also takes into account payment history

The Business Credit Co-op

Our service will prepare your business to obtain credit, loans or leases.

The Goal of the program:

	All lenders and credit bureau requirements of a business will be reviewed and put in place
	Create a new credit profile without creating a new identity
	Save money by bettering your credit score and lowering interest rates
	Obtain a favorable Credit Score of 75+ based on your companies payment experiences
	Assistance in obtaining a Credit Rating
	Assist in developing a credit profile
	Provide a list of companies that will extend credit with no personal guarantee and previous credit history and will report all payment experiences to credit bureaus
	Provide The Business Credit Co-op Resource Center, which includes, list of credit card companies, vendors, banks, lenders and more
	Apply for 3-5 business retail credit cards with no personal guarantees
	Provide resources for vehicle leases, equipment financing or loans under the corporation's name
	To keep your business out of the No Credit, High Risk status

The Fastrack Business Credit Program & Co-op

The cost to join the Business Credit Co-op is $199.00 for a limited time.

The steps your business will go through with the service is:

	Investigate the business to determine if any "High Risk" areas need to be looked at
	Apply for and obtain a credit profile
	Provide vendors and get them to report to the credit bureaus
	Provide list of companies that offer products and services on credit without the need for a personal guarantee or any previous credit history, and also report payment experiences to build the profile.
	Assist clients in developing Credit Scores of 75 or better based on payment history with trade references
	Apply for 3-5 new retail business credit cards that do not require a personal guarantee
	Assist with establishing a Credit rating based on company financials
	Assist in finding financing and additional credit required by your business
	Process takes only 90 - 120 days to complete
	The Business Credit Co-op works with you and your company throughout the Credit Building process
	Email Newsletter bi-monthly
	Process reports bi-monthly mailer

Ready to get Started?

Copyright © 2002 The Business Credit Co-op 
Last modified: January 08, 2008