Apex Corporate Credit

11/08/2019

Today's small business funding tip. Contact Apex Corporate Credit for your free consultation on how we can help you procure funding grow your business,

2. Three Business Credit Myths Debunked

A lot of people don’t understand the consumer credit system, and many more don’t understand the business credit system. Today I’m going to cover a couple of common business credit “myths”, and explain the truth that can be learned from them.

Myth #1: Business Credit is Just Like Personal Credit

This sounds like it ought to be true, but it just isn’t. Sure, the credit systems are similar. However, there are some very major differences that can seriously affect your business. For starters, the consumer credit system has, both in court and in congressional testimony, been demonstrated to be fairly anti-consumer. The system works against consumers in many cases, is prone to errors, and tends to resist the correction of any errors by consumers or their advocates. (In one example, even after a credit bureau was sued and lost in court, they continued to refuse for months to remove the incorrect information from the person’s credit reports.) The business credit system is quite different. It is not anti-business (or anti-consumer), it is less prone to errors, and when there are legitimate errors, they are generally easier to get corrected.
Myth #2: It Doesn’t Hurt To Use Personal Credit In Place of Business Credit

This is a problematic way of thinking that can lead to big problems down the road. Using personal credit for business purposes puts your personal credit at risk for the sake of your business. By using personal credit for business, you limit the resources available to you personally and to your business, and the end result could be disastrous. Imagine when your business credit needs exceed your personal credit capacity--and when YOU need to use your personal credit and can’t because it’s been tied up by your business. No matter how you spin it, in the end using your personal credit for business is a bad idea.

Myth #3: Business Credit and Personal Credit Are In No Way Related

While using your personal credit for business use is a bad idea, we can’t exactly separate business credit and personal credit completely. In many cases, especially when starting out with business credit, an owner of the company will be required to provide a “personal guarantee” for the business credit loan or line of credit. When providing a personal guarantee, the company extending credit will not only check your business credit, but will check your personal credit history. While the business account won’t show up on your personal credit report, the personal guarantee could eventually affect your personal credit in the event that the business fails to meet its obligations. Obviously, you should aim to avoid that scenario (and certainly can) by careful planning and smart use of business credit.

About the Author

Roderick Simmons is the CEO of Apex Corporate Credit, LLC

At Apex Corporate Credit,LLC; we specialize in helping business owners establish excellent business credit scores and then leverage those scores to access cash and credit for their businesses.

Roderick Simmons is also the mastermind behind the release of the exclusive Business Funding Suite. The Business Credit and Funding Suite is the leading business cash and credit access system in the world today.

For more information on business credit scoring and business credit, visit

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11/05/2019

Are you a small business and need money to grow? Apex Corporate Credit can help you. Today's business credit update.

1. The Dun and Bradstreet Paydex Business Credit Score

The main credit score used in the business world is known as a Paydex score provided by Dun and Bradstreet.

This number assess a business’s lending risk much the same as a consumer credit score reflects a consumer’s individual credit risk.

Paydex is essentially the business equivalent of your personal credit score.

The exact definition from Dunn & Bradstreet, or D&B is: The D&B PAYDEX® Score is D&B’s unique dollar-weighted numerical indicator of how a firm paid its bills over the past year, based on trade experiences reported to D&B by various vendors.

There are many BIG differences from a business Paydex credit score and an individual FICO consumer credit score.

Consumer FICO credit scores range from 350-850. The Paydex Score ranges from 0-100 with 100 being the highest score you can obtain.

Individual credit scores are calculated based on a number of factors.

The Paydex score is calculated based on only one single factor; whether a business makes prompt payments to its suppliers and creditors within the agreed upon terms of payment.

Most lenders and suppliers are looking for a score of 70 and higher. Having a score of 80 and above is very good.

Here is a breakdown of how the Paydex credit score is calculated: Payment Expectation
Expect payment may come early 100
Payments generally come within early payment discount period 90
Payment is prompt 80
Payment comes 14 days beyond terms 70
Payment comes 21 days beyond terms 60
Payment comes 30 days beyond terms 50
Payment comes 60 days beyond terms 40
Payment comes 90 days beyond terms 30
Payment comes 120 days beyond terms 20
Unavailable UN

If you own a business, your Paydex score is essential in establishing new credit and continuing to build credit limits exceeding $100,000.

It only takes 60 days to establish a positive Paydex credit score. To start you will first want to apply for a DUNS Number, a nine digit business identifying number, with Dun and Bradstreet.

Once your DUNS number is established you will next want to find a merchant who will extend you credit and then report that credit to Dun and Bradstreet.

Once you have positive business credit report to Dun and Bradstreet you will have a positive Paydex score established.

You will want to then apply for more business credit and use it regularly. Make sure you pay all payments back early to raise your scores to 80 or higher.

You can easily and quickly establish a positive Paydex credit score.

As you continue to pay your bills timely your scores will continue to raise giving you the ability to qualify for credit in your business name.

About the Author

Roderick Simmons is currently the CEO of Apex Corporate Credit

At Apex Corporate Credit, we specialize in helping business owners establish excellent business credit scores and then leverage those scores to access cash and credit for their businesses.

Roderick Simmons is also the mastermind behind the release of the exclusive Business Funding Suite. The Business Credit and Funding Suite is the leading business cash and credit access system in the world today.

For more information on business credit scoring and business credit, visit

www.apexcorporatecredit.com

09/24/2019

Most lenders issuing loans and credit lines will require tax returns on top of P&L statements and bank statements to verify your income. Your tax returns must show good profits, the amount you show will determine the amount of money you are approved for.

09/24/2019

You must show increasing profits from year-to-year, not declining profits. Declining profits are a sign of trouble, and most lenders will RUN away from any deal where the applicant has revenues or profits declining from year-to-year.

09/24/2019

No matter what you’re told… personal credit ALWAYS matters… unless it isn’t being looked at. For example, when applying for business credit you can use your EIN to get approved and leave your SSN off the application.

09/24/2019

All other funding types including advances look at and care about your personal credit. YES, you can get approved for cash flow financing and merchant advances with bad credit but your repayment terms won’t be nearly as favorable then if you had good personal credit.

09/24/2019

SBA loans, conventional loans, most other long term loans, and credit lines do require good personal credit for approval in most cases. Collateral and asset type based financing doesn’t care about personal credit as much. This is if financing only looks at collateral for approval, not financing where collateral is required for approval.

09/24/2019

Alternative lending is much easier to secure than conventional loans and you can usually get approved and funded much faster also. The terms typically aren’t as favorable as conventional financing, but you can often get approved when your bank would tell you “no”

09/24/2019

There are group alternative lending into 3 categories, credit, collateral, and cash flow. We have discussed several funding types that are available based on your credit. Some use your business credit for approval while others use your personal credit for approval.

09/24/2019

Per the Bureau of Labor and Statistics, 1 out of 5 businesses fail within their first year of operation and within 5 years nearly 50% will have closed their doors. In 15 years, 75% of businesses will have closed down… for good. Most businesses do fail… making the business lending space VERY risky.

09/24/2019

With secured financing, the lender would just take back the asset that was pledged as collateral. This helps them quickly get back part of their loss. Since the risk isn’t as high with secured financing, borrowers can often get really good interest rates… as low as 2-5%.

09/24/2019

Most consumer credit starts with secured credit cards or an account that has a wellestablished co-signer but co-signed accounts and secured accounts really aren’t popular or widely used in the business world. Most business credit starts with VENDOR accounts instead.