Business Credit

[Sam T.]

Is anyone using business credit to fund their deals? looking for some information about this. I have done hard money deals in the past but i would like to get more info on this, any help would be great!

[Stanley Whigham]

To fund real estate deals you need unsecured business lines of credit.  If you have a corporation or llc over 2yrs old, high levels of unsecured lines of credit can be obtained with a strong Dun and Bradstreet Paydex Score, Credit Profile and a "low 5" business bank rating.

Here is what you do:

1) Establish a strong internet presence for your company by listing it on at least 15 sites-- Facebook, LinkedIn, Twitter, Scoop It, Bing, Manta, 411, Google+, Google Places, etc.

2) In addition to your business checking account, open an expense and savings account in the same bank.  Purchase a certificate of deposit and borrow against it (now you have a secured loan ).

3) Make regular deposits for 90 days to establish a favorable bank rating.

4) Add higher level trade references to Dun and Bradstreet to provide depth to your Paydex Score (net 30s are usually lower amounts; you'll need higher approvals from your trade references-- 2k to 4k).

5) Upload your company financials to Dun and Bradstreet to complete your file and create a strong credit profile.

6) After 90 days apply for unsecured lines of credit.  Here is why you'll be approved:

  * a bank has already loaned your business money (secured loan); Dun and Bradstreet, Experian Business and Equifax Business have all reported your loan(s).  The secret is to pay back and repeat the secured loan at least 3 times in the 90 day period.

  * the added trade references will add credit profile depth, as will uploading your financials

  * your deposit activity and use of bank products (cd) shows ability to repay

  * bank rating is formed after 90 days of deposit activity