Fast Business Credit

04/07/2020

Beyond SBA and Payroll Protection. Learn how to financially protect your business after the loans are no longer available. https://www.nvinc.com/coronavirus-financial-survival-strategies/

03/17/2020

A great place to check for SBA support for businesses during the coronavirus pandemic. https://disasterloan.sba.gov/ela/Declarations/Index.

Also, it is recommended if your business is in a position for a line of credit or loan to get that now before your sales drop in 2-3 months and you may not be in a position for any time of financing.
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03/06/2020

[Coronavirus Update] 5 Reasons to Build Business Credit

The coronavirus has made a major financial impact to our stock market and the impact on small businesses globally is yet to come.

In Las Vegas yesterday the school district has announced all out of state and international field trips to be cancelled, casino stocks sank 10-15% on the first case, events are being cancelled left and right, and this is only the beginning.

The impact may be similar to the 2008 financial crisis. I believe there is always opportunity (besides just hand sanitizer and toilet paper sales) and you will want to position your business, or a new business service where there is a need.

If your sales are still doing well and your business has not felt the financial impact, this is the ideal time to consider a financial backup for your business. This may involved a line of credit from the bank or another business credit card liked to your entity. A cash advance may work but also is the most expensive money.

If you wait 3-6 months from now and your sales are down substantially the banks likely will not want to lend you money.

Here are some additional steps to build business credit for your business which will also help you financially. You may have already taking some steps over the years to build a business credit profile. If not, these points will be some important reminders.

Building business credit is a MUST in today’s coronavirus damaged economic environment. Do not get thrown off by the term “credit” and think of debt only.

Business credit is very different than personal credit. The reality is that most businesses are off on their sales projections and underestimate their business expenses, a double whammy that quickly leads to problems.

Developing a cushion in your cash flow is key to business success. There are many reasons to build a strong business credit profile, other than just supporting your cash flow. Those reasons include:

1. Separating your personal and business credit. If you have strong personal credit, you want to minimize any damage to that credit caused by your business. If you have a low personal credit score, this is an opportunity to build good business credit.

2. The credibility and fundability of your business. Building business credit is just like being 17 again, with no personal credit, and receiving your first MasterCard® with a $500 limit. You will use and build credit to access more. The key is to manage credit. Banks are now looking to how many vendors you have reporting as a key barometer to determine if they should lend to you.

3. Make sure your business does NOT look financially naked. If someone checks your company out in the business credit bureaus, what will they see? Anything? You may check out a business at these two links: Corporate Experian® and Corporate Equifax® Each one will want you to buy a report on your company or a company you are considering investing in or becoming a partner.

One item to look for is how many vendors are reporting on your business? Two or less sends a message that you may not be very stable. Sounds easy? Well, only about 10% of vendors that grant credit actually report to business credit bureaus.

4. A business credit profile is being built on your company without your knowledge. Yes, that is correct. The business credit bureaus reach out to the secretary of state to pull information on a newly formed entity. It really makes sense to make sure the business credit files are built accurately, because they are a lot harder to update than personal credit.

5. Helping your business gain access to more cash lines of credit after a strong business credit bureau has been developed.

You will want to also develop a strong business credit score with Dun & Bradstreet. Once you have three or more vendors reporting, you will have an 80 score out of 100. You will want to obtain a Duns number.

Go to this link to get one for your business. You can get one for free or pay their fee of $229 and get one in 5 days. https://www.dnb.com/duns-number.html

Need one-on-one support? Go to our link below to learn more about scheduling a strategy session to discuss your financial situation and your best options. ttps://www.nvinc.com/service/strategy-session-with-scott-letourneau/

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Establish your business, get noticed and control your story in the global marketplace.

01/02/2020

Here is the formula to help your business get more funding in 2020! credit

12/27/2019

Incorporate your business in 2020 and protect your personal credit. Build business credit instead under the name of your entity and EIN. Go here to our sister brand for support: https://www.nvinc.com/

12/04/2019

Are you looking to finally separate your personal and business credit and form an entity going into 2020? If so, what is the best time to form your entity, now or in January? Our sister brand, NCP's blog post will help clarify your best option:

Incorporate in 2019 and avoid a schedule C for 2020. Learn the steps to avoid a short year tax return and start with a complete formation.

09/30/2019

[New LLC Formation Tips] Your Business Credit Profile

[New LLC Formation Tips] Your Business Credit Profile

When you look to form a new LLC or corporation for a business, the more creditworthy your entity appears to others, including leads, clients, vendors, and joint venture partners, the more profits your business will generate. We realize that accessing more clients and customers to grow your business is critical.

Does your business look CREDITWORTHY when someone checks it out? Does anything show up, or very little, at the business credit bureaus, including Dun & Bradstreet®, Business Experian®, and Business Equifax®? Even if you have had your business for 5, 10 or 14 years, the odds maybe your business still does not look creditworthy. Check out your own company for FREE.

Your company will appear financially naked to vendors, banks, joint venture partners… if you have 2 or fewer trade lines of credit reporting to your company. Go to the URLs below to check out your company now:

Business Experian®: Go to this link: https://sbcr.experian.com/pdp.aspx…

Business Equifax®: Go to this link:
https://sb.econsumer.equifax.com/bizdi…/companySearch.ehtml…

How did your business score? If the entity applied for business credit, whether vendor or cash lines of credit, would it be approved or rejected? Do you know the items to have in place before you should ever do that?

These are important questions for a brand new business and even a seasoned business to answer and improve if you don't have positive results.

Experian business credit reports from SmartBusinessReports. Get your business credit report before you hire companies. Searching our business database is free. SmartBusinessReports lets you choose from a range of business credit reports

09/12/2019

5 Simple Steps to Build Business Credit.

Building business credit is a MUST in today’s economic environment. Do not get thrown off by the term “credit” and think of debt only. Business credit is very different than personal credit. The reality is that most businesses are off on their sales projections and underestimate their business expenses, a double whammy that quickly leads to problems. Developing a cushion in your cash flow is key to business success. There are many reasons, other than just supporting your cash flow. Those reasons include:

1. Separating your personal and business credit. If you have strong personal credit, you want to minimize any damage to that credit caused by your business. If you have bad personal credit, this is an opportunity to build good business credit.
2. The creditability and fundability of your business. Building business credit is just like being 17 again, with no personal credit, and receiving your first MasterCard® with a $500 limit. You will use and build credit to access more. The key is to manage credit. Banks are now looking to how many vendors you have reported as a key barometer to determine if they should lend to you.
3. Does your business look financially naked? If someone checks your company out in the business credit bureaus, two of them can be checked for free: Corporate Experian® and Corporate Equifax® (go to http://budurl.com/BizCheck1 and http://budurl.com/BizCheck2). How many vendors are reporting on your business? Two or less sends a message that you may not be very stable. Sounds easy? Well, only about 10% of vendors that grant credit actually report to business credit bureaus.
4. A business credit profile is being built on your company without your knowledge. Yes, that is correct. The business credit bureaus reach out to the secretary of state to pull information on a newly formed entity. It really makes sense to make sure the business credit files are built accurately because they are a lot harder to update than personal credit.
5. Helping your business gain access to more cash lines of credit after a strong business credit bureau has been developed.

Let us share with you the 5 simple steps to build business credit.

Step 1: Incorporate and establish business credit or debit card or secure credit card. The incorporating part is easy because we have done that for you. When you opened a bank account, you should have received your business debit card. You may not have applied for a business credit card. The benefit of that is the debt will be linked to the EIN number of the LLC, not to your personal SSN. Even though the business credit card is personally guaranteed, the debt will not show up on your personal credit report, which is huge. You need to know the bank’s criteria before you apply. Ask them what your personal credit score has to be and what personal credit bureaus they pull your score from.

Find out what your personal revolving debt levels need to be. If you have any major derogatory items, like a BK or foreclosure, you will be automatically rejected by the banks. Finally, some banks will require that you are in business for one or two years before they will let you apply for a business credit card! I know, that sounds crazy.

It is 95% based upon your personal credit score anyway. You may want to look around and ask different banks what options there are. Not all banks require you to open a bank account to apply for a business credit card. Here is another resource for many different types of business credit cards: www.creditcards.com

Step 2. Build a business credit profile with the business credit bureaus. Dun & Bradstreet® requires you to pay their fee to build your profile. Caution: You must make sure your entity is in compliance before you build a profile. That includes having a separate business phone number, a business license, a real email (not a free one) and a list of officers/managers filed with the Secretary of State office, everything to prove the entity is a separate, legal, operating business. If you make an error in the compliance area and the file is built, the entity may be “red-flagged” and very difficult to switch. Corporate Experian® and Corporate Equifax® are built when vendors start reporting.

Step 3. Find vendors that report. There are over 50,000 vendors that grant vendor lines of credit and less than 10% actually report to the business credit bureaus. Vendors like Office Max®, Home Depot® and Staples® will report. The reporting is what builds the business credit profiles.

Step 4: Use the vendor accounts and pay the bills on time. Once you open a vendor account, you have to use the vendor credit, whether a gas card or office supply credit card. When you receive the bill, make sure you pay it within the terms that are provided. This may sound simple, but so many do not implement the tools once they have them in place!

Step 5: Focusing on business revenues…gives you more options. Once the foundation is built properly, the goal is to build revenue in your business. That will give you opportunities, after 9 months to one year, for cash financing in the form of a merchant account cash advance (on credit card sales), a cash advance on overall sales, equipment financing, an SBA loan and, after one year, perhaps an unsecured line of credit. The only one that may provide financing upfront, with no revenue, is an SBA loan. Typically, your personal credit score has to be over 680, with no major derogatory items and must include a 2-year business plan and your resume (to see if you have experience in the field you selected) and your business may see some results with the SBA. Crowdfunding and micro-lending are other popular options when it comes to receiving money for growing your business.