Liz Bay Consulting, LLC 147 Prince Street Brooklyn NY, 11201 p. 347.772.0943 www.lizbayconsulting.com lizbayinfo@gmail.com

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 greater 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

The business can use its credit to qualify for revolving store credit cards like Staples, Lowes, Sam’s Club, Costco, BP, Wal-Mart, even MasterCard, Visa, and AMEX

The business can also qualify for credit lines and loans

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 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.

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

Some sources will approve business owners without the owner taking on personal liability

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

• 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

• There are over 20 credibility points that are necessary for a business to have a strong, credible foundation

• Business Name • Corporate Entities • Employment Identification Number • Business Address • 411 • Phone Number (land line) • 1-800 Number

• Fax Number • Email (No gmail, yahoo or hotmail) • Website • Bank Account • Business Licensing • Business Listing • And More…

Business Credit reports are offered by Experian, Dun & Bradstreet, and Equifax

You will first want to get a copy of your business credit reports to see what is being reported

• A business credit report can be started much the same as a consumer report commonly is, with small credit cards

• The business can be approved for small credit cards to help them build an initial credit profile

• These types of initial cards in the business world are commonly referred to as “vendor credit”

• A vendor line of credit is when a company (vendor) extends a line of credit to your business on "Net 15, 30, 60 or 90" day terms.

You can get products and services for your business needs and defer the payment on those for 30 days, thereby easing cash flow

When your first Net 30 account reports your "tradeline" to Dun & Bradstreet, the DUNS system will automatically activate your file if it isn't already. This is also true for Experian and Equifax.

You need to have a total of at least five (5) Net 30 day pay accounts reporting.

It typically takes 3 cycles of "Net" accounts reporting to build credit scores

REMEMBER - You must be patient and allow time for the vendors' reporting cycles to get into the reporting systems

Radio Shack

Reports to D&B and Experian

They will pull a business credit report to see how your business had paid bills in the past

If there isn't enough data on the business credit report, they will ask for bank and trade references

You must be in business at least 2 years

D&B number required and credit references

Payment Terms: Net 30

Call 1-800-442-7221 to get an application. Fill it out and fax back it back to 817-415-3909

Laughlin Associates

Laughlin Associates will approve any business that is listed in 411 and has a business bank account and EIN number

They will report all payments to Experian

It takes up to 30-60 days for you tradeline to show up on your credit report from the date of purchase

Low monthly payment reports as Net 30

• After you have established 5 tradelines you will be able to start getting approved for revolving business credit accounts

• A revolving credit account is one that allows you to pay a "minimum due" per month and not the full outstanding balance

• These accounts normally report to Experian, D&B and sometimes Equifax

• Because of how they report, these accounts will help build your business credit on a larger scale than just the Net 30 day vendors alone

Most Merchants and major retailers do offer business credit, they just don’t advertise it

There is no benefit to the merchant to promote credit with no personal liability if the business owner is willing to take on that liability

So they don’t promote their business credit cards and regularly ask for a SSN

• Reports To: D&B and Experian

• Staples will verify 411 directory while your on hold

• EIN Required • They will check that your

business credit files are open with D&B and Experian.

• They also check to see if your business name and address matches your 411 listing

• Payment Terms: Revolving

• Reports To: D&B

• Dell regularly approves for $10k with Paydex of 75 or above with D&B

• You shouldn’t apply unless you have been in business at least 6 months

• They will sometimes check personal credit Payment Terms: Revolving

For a strong credit profile insure you have 10 accounts reporting

Insure you get approved for at least one account with a $10,000 high limit

With 10 reported accounts and a 10k high limit account you can continue building your business credit

Liz Bay Consulting , LLC 147 Prince Street Brooklyn NY, 11201 Email: lizbayinfo@gmail.com Phone: 347.772.0943