Last updated 3 years ago
The #1 Reason Businesses FAIL is Lack of Cash Flow.
Does your Business have the Proper Lines of Trade Credit and Cash Lines Established?
Are You Losing Business Because of a Weak (or no) Business Credit Profile?
One of the main reasons you incorporated or formed an LLC was to separate your business assets from your personal assets. This will help you limit your liability and have a better marketing advantage when it comes to joint ventures (the fastest way to grow your business-especially host beneficiary relationships).
The key is to separate for success. The biggest mistake we see is many entrepreneurs invest all their money to separate their personal and business assets but NEVER separate their personal and business credit (at least not properly).
Four Critical Reasons to Separate Business Credit (in your entity) from Your Personal Credit:
1. It is how your business will be evaluated for business and joint ventures. You may be losing clients, bids, vendors and joint ventures without even knowing about it. Why? The best way to check out a company’s financials is to invest $60-$150 with Dun and Bradstreet® to pull a report. This will tell you everything you need to know about someone’s business. Most of you will NOT like what you will see on a report of a joint venture company or key vendor. FYI, an 80 Paydex score will not cut it.
In fact, I would strongly recommend you pull a report on your own company. Go to http://budurl.com/DnBCreditReport for the options, you may be shocked as to what you see (or don’t see)!
How do You Feel Standing Financially Naked in Front of Your Customers? Now it may be time to fix that and put your “financial clothes” on.
Look at it this way; how does someone check out your company and what you say about it? Does your story add up? Can someone simply call the bank to pull your last three months of bank statements? No, that will not happen. Can someone call the IRS and ask to see your last three years tax returns to see if the numbers add up to the “story” you are painting about your successful company? Absolutely not.
The best option that one can do to “check you out” is to invest the $60-$150 at D&B® and pull a report on your company. Company’s right this very minute are losing millions in revenues because JV partners, clients, vendors, and potential customers are deciding NOT to do business because of a very weak looking D&B® report. Actually, now your business should have a strong business credit profile with Corporate Experian® and Business Equifax® in addition to D&B®. It is not only about separating your personal and business credit and securing access to more vendor and cash lines of credit, this is vital to any business success.
2. Whether you like it or not, Corporate Experian® is NOW creating profiles on companies through the SOS’s database on new filings. This means a profile is being created and you do not know what it will say to your potential customers (unless you know how to develop it properly).
3. Develop vendor lines of credit to protect your cash flow AND put your business in a better position to secure CASH LINES of credit to grow your business. As you know the banks have raised the bar dramatically on what is required to secure a bank line of credit. One key component is the amount of vendor credit granted to your business-not just an 80 Paydex score.
4. You will protect your personal credit (whether it is good or bad) from your new business. If your personal credit is strong, you will want to minimize personal guarantees with vendors that may jeopardize your personal credit plus develop cash lines of credit in the name of the entity under the EIN number (yes, it is personally guaranteed but the debt will not show up in your personal credit bureaus-which will help protect your personal credit score.
If you have a bad personal credit score, you MUST develop your business credit profile to put the business in a position to qualify for credit on its own.
The Biggest Mistake? Waiting to develop your business credit profile until you need the vendor or cash lines of credit. If your business is doing well and you feel you do NOT need the credit that is the best time to develop it.
This is what George Ross; the attorney for Donald Trump told me when I asked him the best time to develop relationships with banks. Develop the credit before you need it.
Are you an International Owner of a U.S. Company? What are your options? Will our program help you? Call and find out the options and adjusted fees for your U.S. Cash Mach
Avoid being financial naked…call NCP at 1-888-627-7007 and ask about our NEWLY UPDATED, Ultimate Business Credit Builder System with our Better than 100% Money Back Guarantee and our updated Ultimate Business Credit Builder System.
About the Author:
Scott Letourneau is the founder and CEO of Nevada Corporate Planners, Inc., Fast Business Credit, Inc. & The Top 5% Club. Over the past 14 years NCP has assisted more than 5,500 business owners form LLCs and corporations to get their business off to a fast start to profits™!
Questions? Call NCP at 1-888-627-7007 or 1-702-367-7373 if you are internationally based looking for establish a U.S. company. www.nvinc.com or www.FastBusinessCredit.com
Last updated 4 years ago
If you’re preparing to open your first business, you may have several questions about business credit. To learn more about building business credit for your company, review the following financial tips:
Business Credit Scores
While many people assume that business credit is similar to personal credit, there are several important differences that may affect how you run your business. If you are just beginning a business, don’t apply for credit personally. Business credit may lower your personal score, so establish your company credit by applying for credit from another business. By loaning or accepting a loan from another company, you create a transaction report for business credit bureaus. Information from this credit report is submitted to the IRS, creating a unique profile for your business.
Business Credit Criteria
Like your personal credit score, your business credit report is defined by your company’s overall financial situation. Factors like how long you’ve had a business credit profile, the availability of credit card and bank funds and paying your bills on time all influence your business credit score.
Applying for Business Credit
When preparing to apply for business credit, speak with lenders about your options. Request that your lender does not use your personal credit information, such as your social security number or your name. Instead, ask about creating a business profile and submitting your financial information to the credit bureau to begin your business credit report. When applying for your company’s first loan or business lines of credit, be sure to have your company’s tax identification number readily accessible. You can apply for an employer identification number through the IRS before applying for a business loan.
Meeting Business Credit Requirements
In order to ensure that you create a good business credit report for your company, periodically check on the credit market’s requirements. Ensuring that your business is credit market approved involves making sure that your licenses and other paperwork are in order.
Establishing credit for your business is a crucial part of your overall professional success. It’s best to trust in the credit experts when going through this important process for your business. If you would like to learn more about securing business lines of credit for your business, call Fast Business Credit today at (702) 997-0426 or 1-888-471-7451.
Last updated 4 years ago
Are you considering taking out a business loan? If so, did you know that applying for a business loan from a bank could harm your business and your credit? Read through the following facts for more information as to why this is not the best idea for you or your business:
After being approved for a business loan with a large bank, you may lose your personal communication. Large banks often have automated systems and long wait times for customer assistance. By choosing a smaller, private lender for your business finances, you can become familiar with the employees and develop personal relationships with the individuals in charge of your business accounts. A private loan company can also offer more flexibility in the event of a crisis or tragedy.
Interest and Fees
Banks often have hidden fees associated with their business loans. While business funding is important, don’t settle for a bank’s high interest rates or expensive fees just to move forward with your business plan. Instead, seek out a lender that can offer you lower interest rates to help establish your business credit.
With the current state of the economy, it may be difficult to acquire proper business funding from large banks. Fortunately, the United States government recently increased the funding available for other lenders to finance small business endeavors.
Choosing a lender for your business is an important preliminary decision when establishing a company. To build good business credit and learn to identify the best business credit services, consult Fast Business Credit by calling (702) 997-0426.
Last updated 4 years ago
Once you’ve decided on a product or service for your company, it’s important to create a manageable business plan, which is essential for any successful business. When forming a successful business plan, you need to consider several factors, including financing, sales and credit. You can even simplify your business plan creation by downloading the Business Plan iPhone app today.
This Business Plan app equips you with everything you need to formulate an effective business plan. In addition to guidelines for creating a business plan, this app provides you with examples for each category of your business model. Once you’ve created your business plan, review the business checklists to ensure that every aspect of your project is planned completely.
Much of the Business Plan app’s focus is on financing. Financing is an important part of your business. Due to this fact, be sure to discuss your business financing options with your partners and establish good business credit for your company. To find out the best business strategy for you or to learn how you can effectively build business lines of credit, call Fast Business Credit today at 702-997-0426 or 1-888-471-7451.
Last updated 4 years ago
What are some of the other mistakes business owners make if they were going to do it themselves, in regards to a business license, phone number, and some of those things that they don’t know about?
Unfortunately, if you're not listed in the 411 directly then that business number is unverifiable to credit companies. A lot of people we deal with say they don’t have to be listed in 411 and that they don't need it. Let me be clear, you do need it.
If you're not listed in 411 or if your business address on your license is different than the address on file with the state then that will be noted.
Business ownership, if they have more than one answer to a question come from either businesses, a licensing department, state, company representative, or public information, a negative comment will be put on that credit file. There’s a number of things that people can do before they go to Dunn and Bradstreet, to make sure that they’re in corporate compliance and a number of things that they can do not properly that will get a negative comment put on that file.
For more information on increasing your business credit, read on! Increase Business Credit.
About The Author: Scott Letourneau is the CEO of Fast Business Credit, Inc. When it comes to securing cash and vendor lines of credit and avoiding costly mistakes his company is the authority. For further assistance regarding the development of business credit go to http://www.fastbusinesscredit.com/ or call FBC at 1-888-313-6333 or 702-977-5246.