All Forum Posts by: Stanley Whigham

The fastest way to build business credit today is to bypass vendor credit and go directly to the banks-- unsecured business lines of credit. In 90 - 120 days business owners can obtain $100k in unsecured business lines of credit.

Follow these simple steps:

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) Establish a business checking account at 2 banks (with a 700 credit each will offer a business credit card.

3) Make regular deposits into your business checking account 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 (business credit cards); Dun and Bradstreet, Experian Business and Equifax Business have all reported your business credit cards.

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

* your deposit activity and use of bank products (business credit cards) shows ability to repay

* bank rating is formed after 90 days of deposit activity 

The fastest way to build business credit today is to bypass vendor credit and go directly to the banks-- unsecured business lines of credit. In 90 - 120 days business owners can obtain $100k to $250k in unsecured business lines of credit themselves.

Follow these simple steps:

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) Establish a business checking account at 2 banks (with a 700 credit each will offer a business credit card.

3) Make regular deposits into your business checking account 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 (business credit cards); Dun and Bradstreet, Experian Business and Equifax Business have all reported your business credit cards.

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

* your deposit activity and use of bank products (business credit cards) shows ability to repay

* bank rating is formed after 90 days of deposit activity 

The fastest way to build business credit today is to bypass vendor credit and go directly to the banks-- unsecured business lines of credit. In 90 - 120 days business owners can obtain $100k to $250k in unsecured business lines of credit themselves.

Follow these simple steps:

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) Establish a business checking account at 2 banks (with a 700 credit each will offer a business credit card.

3) Make regular deposits into your business checking account 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 (business credit cards); Dun and Bradstreet, Experian Business and Equifax Business have all reported your business credit cards. 

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

* your deposit activity and use of bank products (business credit cards) shows ability to   repay

* bank rating is formed after 90 days of deposit activity 

If you have good personal credit, the easiest way to get a business credit card is to make sure you have formed an LLC for asset / liability protections. Next, you should open a business checking account with a bank. Banks will check out the address of your business and look to see if there is some online presence (listings with Manta, Bing, Google+, etc). If your credit score is good, your business address isn't in your home and you have some presence online the bank should offer you a business credit card. Once you get approved, the next easiest business credit card to obtain is the COSTCO Amex business card.

1. Costco Busines AMEX (go to Costco w/ biz checkbook, EIN# and llc docs)

2. CitiBusiness (open biz acct w/ Citibank and apply)

3. Bank of America Platinum Plus (open acct w/BoA and apply)

4. Chase Ink Business (open acct w/Chase and apply)

5. Capital One Spark Business 

The only reason some people purchase Dun and Bradstreet's Credit Builder product is to allow them to add trade references to their credit profile.  This can speed up obtaining a Paydex score (need 3 tradelines reporting to D&B).  They offer a cheaper product called the Credit Builder Plus for $99 per month.  Purchasing it for a few months will also speed up the reporting of your tradelines, because D&B is known for holding up your tradelines from reporting-- in hopes of you responding to their annoying phone calls. Another reason for purchasing this product is to allow you to look at your credit file as often as you like in "iupdate",  without getting your file flagged.  If you look at your file more than a couple times a month, you can get "red-flagged" because D&B thinks you could be a "scammer" who is trying to build business credit and then default after obtaining cash credit cards and lines of credit.

The steps I outlined above are what's needed to score high enough to obtain a business loan approval through the FICO Small Business Scoring Service (SBSS) model.  II've been a commercial loan underwriter for the Small Business Administration (SBA) for many years. This business credit scoring model is used by virtually all banks to evaluate business loans and unsecured lines of credit under a million dollars.  Its primary purpose is to pre-screen commercial loans and unsecured business lines of credit for faster approvals.  To get an SBA loan guarantee the minimum SBSS score is 140, but most banks will not make loans, even SBA guaranteed ones, to businesses with a score below 160. The steps I've outlined above will prepare a business to score over 160 on the SBSS scoring model, ensuring the business will be approved for funding.  The FICO SBSS score range is from 0 – 300. According to FICO’s website, their SBSS models are validated for “term loan, line of credit transactions, and commercial card obligations up to $1 million”.

The business owner’s personal credit history can account for 50 – 90% of the score, the businesses credit score is up to 40%, and the financials of the company can be up to 10% of the score.   

To purchase real estate with business credit, you need to form a "funding entity".  Because lenders decide which industries are the most "lendable" and real estate companies are still out-of-favor since the downturn of 2008, real estate funding vehicles should be Corporations or LLCs in favorable industries.  Your goal is to get unsecured business lines of credit.

Start-ups face the problem of a business with no age. Lenders look for a minimum of 2yrs in business when approving unsecured lines of credit. Fortunately, many business owners were doing business out of their "garages" as sole proprietors long before incorporating or forming their llc. When forming your business credit profile, it is important to register with SAM and notify the IRS of your sole proprietor experience. Dun and Bradstreet obtains information from these federal agencies and will update your business credit profile to reflect this sole proprietor experience. Also, be sure to list your business on the web and include your total business experience in your profiles.

Take these steps:

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. If you have 700+ personal credit, the bank will offer you a business credit care and line of credit ($7,500 - $10,000 each).  These will be your initial business tradelines

3) Make regular deposits for 90 days to establish a favorable bank rating (use credit line to make deposits). 

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 large ($25,000 - $40,000) unsecured lines of credit.

@Manolo D. 

Here are the most effective ways to create a strong Dun and Bradstreet business credit profile:

• Submit financials (balance sheet and income statement) to Dun and

Bradstreet

• Purchase Dun and Bradstreet Credit Builder—to add 4 high limit

trade references (about $84 per month-- only until profile gets strong)

• Pursue minimum BB1 Business Credit Rating with Dun and Bradstreet (any lower limits access to higher unsecured lines of credit)

• Register in the System for Awards Management (SAM) for future gov.

contracts

• Optimize company’s business bank rating--need at least “low 5” bank

rating.

• These and other actions will allow you to qualify for high-limit Equifax Business /

Experian Business / Dun and Bradstreet tradelines

@Manolo D.     

1. CD should be at least $1,000. Goal is to pay off in 3 weeks (place proceeds from cd loan in another account and make a couple payments, then pay off the loan; do this 3 times, each time requesting a higher loan amount).

2. Deposits vary when doing business; goal is to reach a combined monthly deposit total (in all linked accounts) of $10,000. This may sound like a lot, but daily deposits of $300 plus throughout the month will easily add to this.

3. You need to add at least 3 trade references to get a paydex score. Use suppliers who have given you the highest credit approvals over a 12 month period.

The fastest way to build business credit today is to bypass vendor credit and go directly to the banks-- unsecured business lines of credit. In 90 days business owners can obtain $100k to $250k in unsecured business lines of credit themselves. 

Follow these simple steps:

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)  Purchase a certificate of deposit and borrow against it (now you have a secured loan ).

3) Make regular deposits into your business checking account 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