If Building Business Credit
is so Effective,
Why isn’t Everyone Doing it?
Practically every business owner needs a loan at some point in their business career.
Building business credit is a surefire way to qualify for business loans.
So then, why isn’t everyone doing it?
Regretfully, most don’t understand how building business credit will benefit them in the future.
Many who do understand, may not be willing to go through the tedious process.
I’m here to tell you that it’s no walk in the park. It requires…
- Strict attention to detail
- A commitment to pay all business creditors early (not just on time) and
- Willingness to complete each phase, step and task to completion
How about you? Are you willing to go through the process? We can walk through this together…
Well, how much time does it take to build personal credit?
It really depends on the individual, and on how quickly they take the appropriate steps, right?
The same applies here. But it actually takes even longer. Why?
Well, when you start to build your personal credit, you already have a social security number, address, and a phone number to put on your credit applications.
But, to build business credit, you have to establish these all important credentials for the business first.
Hence, the first phase of the business building process is doing just that – Establishing the profile of the business. The profile will include things like the…
- Corporate address
- Phone number
- Fax number
- EIN number
- Business license(s)
- Duns number, and
To complete all of the phases, steps and tasks it can take a solid 6 months to 1 year.
Strict attention to detail
Each phase, step and task of the process requires strict attention to detail. It’s because business credit bureaus and lenders alike examine the profile with precise accuracy.
If they find anything wrong or inconsistent, they penalize you even possibly to the point of blacklisting!
Let’s say for example, that you happen to have your corporate address listed a little differently with the state than with a creditor.
You use an abbreviation with one of them like St. instead of Street or Ste. instead of Suite. Yes, you could be penalized for something so small.
So, strict attention to detail is a requirement when building business credit.
Commitment to pay all of your creditors early (not just on time)
Just like with personal credit, the primary way to build business credit is by paying your creditors on time. But there are some differences between building business credit and personal credit…
With personal credit, you have laws to protect you. As a result, if a creditor reports inaccurate information, you have the right to make disputes.
You can even expect the bureaus to respond within 30 days because if they don’t the entry can be completely deleted from your report.
Not so with Business credit.
Laws such as the "Fair Credit Reporting Act" stop with the consumer. There are no laws to protect your business credit profile.
If anything negative is reported on your business credit report, it can be near impossible to repair the damage.
With that in mind, it’s best to avoid any negatives on your report by simply paying all of your creditors
on time early.
You see, with personal credit, nothing negative is reported until you are at least 30 day late on a payment.
The business credit bureaus, however, actually track if you’re paying your bills late, on time, or early.
And of course...
You get the best business credit ratings when you pay EARLY!
Willingness to complete each phase, step and task to completion
There are 3 Phases to the business credit building process. They are…
- 1. Establishing your Business Credit Profile
- 2. Establishing your profile with the major business credit bureaus and
- 3. Building your reputation with the appropriate creditors at the appropriate time.
Each phase comes with it’s own list of corresponding steps and tasks.
Most business owners are naturally more interested in building their business than in the tedious process of building their credit scores.
To these visionaries, the entire process can seem to be nothing short of over-whelming and maybe even burdensome.
But for anyone who wants to consistently enjoy these benefits…
- qualifying for high balance unsecured business loans
- with the lowest possible interest rates and
- without personal guarantees
Building business credit is simply a requirement!
So then, the real questions becomes,
Are you willing to do what it takes to build your business credit?
I hope you are. Because it will certainly mean success for you and your business financing needs.
Why not get your very own...
Free E-Book "Unlimited Business Financing Without a Personal Guarantee!"
It will help you to determine if building business credit is right for you.
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