How to Build Credit for Your EIN #

 

Business Credit

Business Credit is credit that is obtained in a Business Name

With business credit the Business builds its own credit profile and credit score

With an established credit profile and score, the business will then qualify for credit

 

 

 

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Business 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, in some cases there is no personal credit check required from the business owner

 

Business Credit Benefits

A credit profile can 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

 

 

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Business Credit Benefits

Business credit scores are based only on whether the business pays its bills on time

A business owner can obtain credit much faster using their business credit profile versus their personal credit profile

 

Are based on 5 factors

Payment History                35%

Utilization                    30%

Length of Credit History            15%

Accumulation of New Credit        10%

Credit Mix                    10%

Personal Credit Scores

 

Business Credit Benefits

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

 

Business Credit Benefits

When done correctly Business Credit can be built without a personal credit check

Business credit can quickly be obtained regardless of personal credit quality

And there is no personal credit reporting of business accounts

 

 

Business Credit Benefits

Most business credit can be obtained without the owner taking on personal liability

This means in case of default, the business owner’s personal assets can’t be pursued  

 

 

Business Credit Benefits

When a business owner applies for financing, their business credit IS reviewed

Not having business credit established will get an owner DECLINED for financing

 

 

 

There are no regulations that require the lenders notify the business owner for their reason for denial, so most never know

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Business Credit Benefits

ANYONE can pull your business credit reports without your permission

Clients, prospects, potential buyers, even competitors can see YOUR business info.

This means they can see…

Payment history

High credit limits

Employees and revenue

Past payment performance

And much more

 

 

 

 

Business Credit Benefits

Almost any business can get business credit as long as it has an EIN number and entity setup

You don’t need collateral

You don’t need financials

You can be a startup

You just need to know the proper building steps

 

 

 

 

 

 

Business Credit Building

The business starts with no credit profile

The business gets approved for new credit that reports to the business credit reporting agencies

The business uses the credit and pays the bill timely

A positive business credit profile is established

As the business continues using the credit and pays bills timely it will qualify for more credit

A business starts building a brand new credit profile much the same as a consumer does

 

 

Build Business Credibility

The perception lenders, vendors, and creditors have of your business is critical to your ability to build strong business credit.

Before applying for business credit a business must insure it meets or exceeds all lender credibility standards