This is part two of two in the series of Building Credit Solutions for Small Business.  Figuring out how the banks work and how credit scores work are just part of the battle.

• Want to Build Business Credit?
• Did You Know You Can Build a Strong Corporate Credit Rating!
• Do you want powerful, legitimate strategies for building strong business credit so your business can borrow with success?

If you charge on your personal credit cards for your business it will make your personal credit score go down because the utilization or debt ratio goes up and that is 30% of your score.   With business credit the scoring model is different.  It doesn’t matter if you max out all your business lines of credit.  In fact it is the opposite with business credit, as long as you pay your bills on time, the more you use the more you get.

Mistakes that happen during the business credit process.

A big mistake that a lot of business owners make is using their own personal money to finance the business.  Right away it will lower your personal credit score and it will also lower the amount of credit you have available personally.  If your business fails your personal assets also fail.

Besides protecting you personally, business credit will allow you to borrow more money with better terms than if you borrowed it personally.  Banks are not lending money so easily to individuals.  In fact 95% of business owners are being declined for a personal loan.  Personal credit card limits are being lowered.

Once you have your corporation set up properly you have to make sure that you are building business credit the right way, the way lenders require for approval.  It is very important to do it the right way otherwise you can run the risk of being put on a high risk or no credit risk.   90% of businesses that try to do it without a system get put on this list.

Next we walk you through getting all 3 business credit files open with credit history reporting.  Through our system, you will be able to see your progress in real time.  It will show you your score and how many trade lines are reporting.

We will show you how to achieve an excellent Paydex score.  Corporate credit runs 1 – 100.  A Paydex score of 80 or better is Excellent.  This score is based on a percentage comparison with other companies and how payments have been handled in the past year.

Therefore, once you have your business profile set up then you are ready to add positive trade lines.

You don’t have to use your social security number to get business credit.

We show you how to obtain 5 vendor lines of credit without using your social security number.  This is what we call 1st tier credit.  There are 500,000 vendors but most of them don’t report.  In fact 6,000 report and 1,000 of those do not attach it to your personal credit.  We will give you through our program the one’s that don’t attach it to your personal credit.

Once you have established the 5 vendor trade lines then you are ready for the 2nd tier credit that is 3 business credit cards without using your social security number.  There are 500 business credit cards but less than 200 reports to business credit.  50 of those credit cards report with no -personal guarantees.  We will show you how to get at least 3 business credit cards without the personal guarantee.

The way you know if your business credit card is not personally guaranteed is if you look at your credit card and it has your business name plus your name on it then you are personally guaranteeing it.  If you don’t pay it will show up on your personal credit.

Next week, we will talk about the lifetime relationships that can develop during the business credit process.  If you need to know where to go when the banks say no, call Credit Wise Advisors at 888.456.9223.  We can help.

If you need help building business credit or funding solutions, contact us today. We can be reached at 888.456.9223. We are offering a FREE e-book, just for visiting our site! Learn how to get $25,000 or even $250,000 to fund your business.

Tags: build business credit, building business credit, building credit solutions for small business, Business Credit, business lines of credit, vendor lines of credit. business credit cards