corporatecashcredit18-blog

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Establishing A Business Credit Paydex Score

Maybe you are wondering why many businesspeople talk about establishing a business credit Paydex Score. If you do not understand why they are concerned about this issue, keep reading.

 In these days, creating and keeping a good business credit record is indispensable, especially for a business in its early stages. Start-up companies and small firms often need financing to overcome difficult times and to grow. Investments in promising projects and in working capital are two common examples of funding.

 Nevertheless, getting business credit is not an easy endeavor when your company is not big enough or does not have a marvelous credit history to show.

 In the following paragraphs, you will find useful information for establishing a business credit Paydex Score.

 1.    What is a Business Credit Paydex Score?

 The Paydex Score was created by Dun & Bradstreet. This is a US company pioneer in the provision of financial and commercial data. It has a database of millions of companies operating in hundreds of cities around the world.

 This Score allows individuals and companies to know how well a company has paid its debts, based on an impartial judgment.  It is basically a measure of the company`s creditworthiness.  The Paydex Score indicates how well the company fulfilled its obligations with suppliers during the past 12 months, through a dollar-weighted formula. This means that the larger invoices weigh heavier for the score than the smaller ones. The score takes data from every payable that a firm had over the past 12 months and the number of days before or after the due date in which such payments were made. The due date is the result of the “agreed time.” If the supplier proposes a net-30 credit and the client agrees, this denotes that every invoice should be fully paid within 30 days, no more than that.  

 When the Score is calculated, the result is always a positive number between 0 and 100. When the Score results in less than 20, it indicates that the payments were made on average over 120 days past due; a Score between 20 and 40 indicates that the payments were made in average 60 - 120 days past due; between 40 and 70 means 15 - 60 days past due; 80 means perfectly on terms; and between 80 and 100 means that the company pays 1 – 30 days sooner than terms. The shorter the time between the agreed time and the payment, the higher the Paydex Score.

 A company should have a Paydex Score over 75. This indicates that payments are made almost always on time and, when delayed, the days past due are few. In general, a Score under 75 is not well perceived by potential lenders. If you plan to ask for a business loan, you have to make efforts toward achieving an 80 Paydex Score.  

  2.    Before establishing a business credit Paydex Score

 There are some steps to take before establishing a business credit Paydex Score. This will save you from unnecessary costs and wasted time:

 ●       Separate business from personal credit. Owners of small businesses often prefer to use their own credit to finance the company. However, this delays the company from building its credit history.

 First, you have to be sure that you are using the appropriate legal entity. Sole proprietorships and general partnerships do not allow the separation between owner and firm. For separation, you must choose either a Limited Liability Corporation (LLC) or a corporation (S-corporation or C-corporation). An LLC can be suitable for small and medium-sized businesses because it allows owners to enjoy a good combination of protection from liabilities and flexibility.

 ●       Open a bank account for your business. It is necessary to have a bank account uniquely for your business. Although sometimes the business owner wants to simplify processes with a single account for both personal and business use, it is better to make this step from the beginning.  

 ●       Obtain a phone line for your business. Your company must have at least one phone line dedicated to it. No matter how much you will use this number for your operations, it is necessary to have a business phone line. This will help you when you apply for business credit.

 3.    Obtain your Data Universal Numbering System

 You have to obtain your Data Universal Numbering System or DUNS. This is a nine-digit code given by Dun & Bradstreet that will belong only to your company. You can apply for the DUNS through their company`s website. The DUNS numbers are widely used in the business world as a company identifier, especially in the United States. Moreover, it is currently a kind of standard identification thanks to the size and quality of Dun & Bradstreet`s database, in which a broad range of company information is available.

 Open a business credit file at Dun & Bradstreet and your business`s transactions will be recorded there. Other entities will be able to check how good your credit record is.

 4.    Start establishing a business credit Paydex Score

 We recommend starting with tradelines offered by some large retail stores, like OfficeMax, for office supplies. This is an easy way to begin creating a credit record. You will need some office supplies so do not purchase them in cash.

 Also, ask for credit from vendors and suppliers and extend it when possible. Of course, be sure that you will have enough money to pay all debts on time. And be careful about your financial situation. Do not agree to terms that you think are too difficult to meet. In this stage of establishing a business credit Paydex Score, the most important priority is to build creditworthiness.

 Once you have business credit, plan your cash flow to pay on time or even earlier. For example, if a provider gives you 30-day credit, make efforts to pay before the due date. This will support an 80 Paydex Score.

 The Score requires at least four payment experiences, so you have to guarantee this minimum requirement. If obtaining this number of experiences will be hard for your company due to its size or its business model, you can use a business credit card to generate enough data that will be reported for your score.

 This article was written for Grand Teton Professionals for CorporateCashCredit. If your business is small or mid-size and has urgent need of funds, you cannot wait for several months of preparation to improve your business credit record. Please contact us at support@corporatecashcredit.com to receive real solutions to your needs. For Media Relations, please contact Misty.Burrell@GrandTetonProfessionals.com.

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How to Apply for Business Credit

In their early stages, companies are likely to lack the financial resources to develop their plans. Start-up and small firms frequently require funding for financing their business. Perhaps they have to overcome some unexpected expense or invest in a new expansion project. You might be in a situation when your small business needs to get corporate credit but you simply cannot get it. Due to your short or inexistent credit history, you could be in a hurry because obtaining business credit has been difficult. Whatever your particular case is, you’ll want to know how to apply for business credit.

Please read the following recommendations to learn how to apply for business credit. These simple steps are useful if you follow them as suggested below.

 1.    Plan your credit requirements and analyze why you’re going to apply for business credit

 Your credit needs should be linked to your business operation and financial strategy. Before starting to apply for credits and to commit to future payments, you must define your operational and investment plan. Forecast your resources and budget to identify when the money will be really needed, and analyze the possible ways of funding those needs. You should know if the money would be used in two or ten months and the approximate amount of required funds. It is not appropriate to apply for business credit without having coherent short-term and medium-term plans.

 2.    Before you apply for business credit

 You have to be properly prepared for your first credit applications in order to avoid rejections from lenders and wasted time and effort. Every application requires some time and money so it is useful to minimize the risk of mistakes.  

 ●       Have a separated business credit history. No matter the size of your business now, this will be important in the future. You will get corporate credit at some point in your business’s existence. In order to do that, you have to build a separated business credit history. This means a record not linked to your personal history.

Certainly, sometimes it’s easier for the owner to use his or her personal credit card to make some of the initial purchases, like the computer and the first supplies. But very soon, define a plan to make a separation and stick to it. This will benefit your future financial activities.

You have to begin your process with an appropriate legal entity. Sole proprietorships and general partnerships do not allow for separation between owner and firm. The owner has to choose either a Limited Liability Corporation (LLC) or a corporation (S-corporation or C-corporation). An LLC can be suitable for small and medium-sized businesses because it allows owners to enjoy a good combination of protection from liabilities and flexibility.  

 ●       Obtain the EIN (or federal tax identification number). The Employer Identification Number (EIN) is a unique number assigned to your legal entity. The EIN is required for many procedures such as hiring employees, paying taxes, and opening a bank account. You will need it for your regular operations and it will be a requirement to get corporate credit. You can obtain the EIN directly with the Internal Revenue Service (IRS), free of charge.

 ●       Open a bank account. Having a formal business includes the use of a bank account unique for the firm. Sometimes the owner takes advantage of his or her personal account to make some transactions, but this practice is not sustainable. Since the commencing, avoid informal and cash payments despite the size of your operations.  

 ●       Contract a phone line service. Your company must have at least one phone line dedicated to it. No matter how much you use this number for your operations, it is necessary to have a business phone line. This will help you when you apply for business credit.

 ●       Be present in credit reporting agencies. Open a business credit file at the main credit reporting bureaus. Your business should be in Experian, Dun & Bradstreet, and Equifax. This is a very important step because your business`s transactions will be recorded there and other entities will be able to check how good a payer you are. Without these credit files, lending institutions and commercial partners will find difficulties in knowing your credit history.

 3.    Apply and use small credit lines

 Maybe you are aware that you will have to get corporate credit in the near future to fund a big project. Nevertheless, a small business without a good credit score is not likely to receive a large loan. In this regard, it is useful to start getting business credit cards and opening trade lines with vendors and suppliers. This step will guarantee the building of a credit record. Of course, you have to pay on time or even early in order to keep an excellent score.

Negotiate convenient credit terms with your providers and clients. Extend as much as possible the credit with your suppliers and reduce the payment time with your clients.

Be careful when using credit cards. Do not get more corporate credit than you will be able to pay off. Being too indebted is a risk because you could get into default and hurt your credit record.

Lending institutions provide loans and credit lines according to the borrower`s credit record. If you show that you are a low-risk borrower they will give you money at low-interest rates and relaxed terms. In the opposite extreme, if you seem a risky borrower, they are likely to deny any loan or charge you with high costs. That is why building and maintaining an excellent credit record from the beginning is indispensable for financing a business.

4. Apply for the business credit you need

 Check what your credit score is before going to a big credit lender. Every time you ask for credit, an inquiry will appear in your record because your potential lender will review your file. Those hard inquiries will affect your score so do not make too many applications during a short time period.

If you find some negative issues in your report, ask for advice from an expert. A professional will be able to help you quickly. Repair your credit before any important application.

When conditions are favorable, apply for business credit in line with your funding needs. A positive answer from the lender will be highly probable if you take this step after following our suggestions.

 This article was written for Grand Teton Professionals for CorporateCashCredit. If your business is small or mid-size and has urgent need of funds, you cannot wait for several months of preparation to improve your business credit record. Please contact us at support@corporatecashcredit.com to receive real solutions to your needs. For Media Relations, please contact Misty.Burrell@GrandTetonProfessionals.com

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Unsecured Business Loans Help Build Corporate Credit Quickly

Regardless of what your company does, there comes a time when financial assistance is necessary. Many businesses, at one time or another, deal with cash flow challenges. Most of those challenges are due to a lack of adequate funds for everyday expenses, payroll, supply acquisition, and expansion goals. One popular option for such requirements is opening a revolving line of credit. In fact, well-timed and properly managed unsecured business loans can provide all the money a company needs while also helping to build corporate credit quickly.

Ways Unsecured Business Loans Help A Company

Put simply, a revolving business credit line is defined as a monetary offering from a bank or merchant with a specified amount of always-available credit for an undetermined amount of time. It’s typically given to companies that have worked hard to build business credit quickly, or at the very least maintained the good corporate credit they already have. The debt is paid via monthly installments, but the money can always be borrowed again once the lender has been fully repaid.

With this type of funding option, there is usually no predetermined monthly payment amount. However, interest accumulates and is capitalized upon like any other form of credit. The spending limit can be used repeatedly as long as payments are made on time and the limit is never exceeded. Meanwhile, responsible use of unsecured business loans like that can boost your corporate credit rating significantly.

In fact, revolving business lines of unsecured credit can benefit your company in several ways, including but not limited to the following:

1.     You Get More Flexible Payment Terms To Help Build Corporate Credit Quickly

Traditional loan terms often require a predetermined monthly payment structure. For some businesses, such an arrangement can be very challenging to manage. Alternatively, unsecured business loans offer more flexible payment terms. With this type of credit line, a business can have a slow month and pay only the minimum amount due without going into default. Such a convenient procedure can help build corporate credit quickly by preventing negative marks from showing up on your credit report.

2.     You Keep Your Personal and Business Credit Separate

Many business owners who need extra cash flow face the challenge of keeping their personal and business credit separated. This is especially true for a company that hasn’t yet built enough corporate credit to get approved for a loan. Fortunately, revolving unsecured business loans enable companies to streamline and manage their expenses more effortlessly. Since the credit line is dedicated solely to the business, any mishaps in your personal finances don’t bleed over to affect your company. The same is true with any hiccups in your business’s finances, as they won’t directly affect your personal accounts.

NOTE: This is the case as long as you are not the sole proprietor of the company.

3.     You Have Direct Access to Money on Demand

Unlike traditional secured loan for businesses, revolving unsecured business loans give you the ability to access funds when you need it (or even sometimes before). This cuts back on the amount of money you spend cleaning up financial messes and making up for missed opportunities. Because of the cyclical nature of most businesses, being able to borrow enough money to take care of short-term needs is important but often difficult. Accessing money on demand can keep your company running smoothly and thus will help you build corporate credit quickly and easily.

4.     Your Usage Options Are Flexible

A secured, closed-end loan is usually good only for expenses that are planned or particular. However, a revolving line of credit allows you to freely decide what you want to spend your money on, whether that be daily expenses, company updates, or travel. Because the loan can be used for whatever purpose you deem necessary, you thereby gain the flexibility to meet short-term goals, keep your corporate credit intact, and move towards greater success. Having money on demand and plenty of spending options allows you to take your mind off of money and focus on bigger and better things, like establishing yourself in the industry.

The Importance of Getting the Best Unsecured Business Loans

Having access to a reliable source of revolving credit is a vital part of running a successful business. Keep in mind, however, that not all forms of financing are the same. Have your corporate credit analyzed to find out what would work best for your company. If all else fails, enroll in an 80 Paydex program to get approved for the money you need.

Businesses need to establishing favorable ratings with all the major credit reporting agencies (Dun and Bradstreet, Experian, Equifax, and TransUnion). By using the best-suited line of revolving credit for your business, it’s much easier to build corporate credit quickly because you’ll be able to maintain a positive payment history that appears on your company’s credit report.

Creditworthiness is the main factor used by underwriters to determine a company’s eligibility for unsecured business loans. Proper acquisition and execution of the loan terms can help you obtain future financial assistance. For good measure, never apply for a business line of credit until you’re absolutely sure you will get approved. If you’re unsure where you stand, hire a credit repair company, or purchase a shelf corporation to extend the age of your business and make it more attractive to lenders.

Comparing Unsecured Business Loans

Keep in mind that not all business lines of credit are created equally. Some will have better terms than others, so be sure to consider your options carefully before deciding. While unsecured business loans typically have higher interest rates than secured options, your company will not be forced to risk valuable property as collateral if you default on a payment.

Most banks and lenders want borrowers to have good credit and plenty of age before they’ll extend a loan, so do your best to build corporate credit quickly so you don’t miss opportunities to grow your business. If you already have an unsecured line of credit for your business, use it wisely so you can get more money in the future as it’s needed.

This article was written for Grand Teton Professionals for Corporate Cash Credit. For Credit Repair Solutions and Support, please contact us at 203-528-0587 or email us at Support@CorporateCashCredit.com. For Media Relations, please contact Misty.Burrell@GrandTetonProfessionals.com

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What You Need to Know about Using an 80 Paydex Program

To utilize all that an 80 Paydex program has to offer, it’s important to first understand what the Paydex is (and isn’t) and how to use the score to your advantage when applying for business credit. A company’s Paydex rating is an essential part of funding the business, especially where loans and credit cards are concerned. A poor score can result in low funds and frustration, to say the least.

Paydex is a term used by business and creditors to describe the numerical score granted to a business by Dun and Bradstreet. It represents the promptness with which that business repays lenders, suppliers, and vendors for goods and services. Similar to a consumer’s FICO score, a business’s Paydex rating is used primarily for commercial purposes to determine a borrower’s creditworthiness.

When you apply for business credit, underwriters examine the applicant’s Paydex score to determine whether they’re a risk to the lender or not. Low scores are indicative of irresponsible financial habits or relatively low industry relevance. For companies needing fast funding, a less than ideal Paydex score can wreak havoc on goals and costly plans. Therefore, enrolling in an 80 Paydex program may be the wisest decision for many businesses.

How Does an 80 Paydex Program Work?

In order to be seriously considered by lenders, your company needs to show at least four payment experiences on its credit file. Those experiences must be reported to Dun and Bradstreet, so private or under-the-table exchanges won’t count. Since the Paydex is a unique dollar-weighted numerical indicator of how well your business pays its bills, you want plenty of payment experiences to show up.

Keep in mind, however, that the Paydex score is Dun and Bradstreet’s own business credit scoring system. Experian has its own as well, known as Intelliscore. Equifax uses the Small Business Credit Risk Score to determine a business’s creditworthiness. Together, underwriters use those scores to decide whether a company will use their loan money or line of credit responsibly. Therefore, a Paydex score is only a small portion of the funding eligibility pie.

Unlike a consumer’s FICO score that is measured on a range between 400 and 900, a Paydex is measured on a range of 1 to 100. Therefore, an 80 Paydex is considered favorable and less risky to most creditors. An 80 Paydex program is designed to help a business achieve the necessary number of payment experiences to achieve an adequate corporate credit score so they can confidently apply for business credit.

Will an 80 Paydex Program Help You Apply for Business Credit?

When it comes to the Paydex, a score of 80 or better is considered very good and often looked at favorably by the other reporting bureaus despite the fact that they use their own scoring systems. An 80+ Paydex score is similar to having a 720 personal credit score through FICO. It may not be perfect, but it will most likely get you approved for the money you need.

With the help of a good credit building and repair company, an 80 Paydex program can make a big difference in the number of financial prospects afforded to your business. While many suppliers and lenders use Paydex scores throughout the credit-granting process, there are several other factors that play into the ultimate decision. Those factors include but are not always limited to the following:

·         Your company’s payment history

·         The age of your company’s open and active accounts

·         The types of accounts utilized by your company

·         The highest credit limits available

·         Your company’s debt to credit limit ratios

·         The Dun and Bradstreet credit limit recommendations

Before you apply for business credit, it’s vital that you know how your company measures up against those important factors. For example, you can have four or more positive trade experiences reporting on your Dun and Bradstreet file with $500 as the highest possible credit limit on every account and you’d still most likely have an 80+ Paydex. This is because Dun and Bradstreet’s rating system only requires a minimum of four payment experiences. However, if all four of those experiences have relatively small limits then your business probably won’t qualify for significant loans or lines of credit.

Furthermore, a company that has payment experiences listed only with Dun and Bradstreet is the equivalent of having just one credit file with a single credit reporting agency. Thus, it’s important to use a good 80 Paydex program that reports to all relevant agencies. Just like having a credit file with only Equifax or TransUnion will limit your prospects, so too will having a credit file with only DNB. Lenders simply won’t have enough information to determine your business’s creditworthiness regardless of your overall Paydex score.

What’s the Best 80 Paydex Program Available?

To apply for business credit with confidence and success, it’s vital that your company demonstrate a complete credit picture. You’ll need to have a credit profile that’s well-managed and established with DNB plus all three of the primary credit reporting agencies. In other words, simply having an 80 Paydex does not mean lenders will throw money at you.

An effective 80 Paydex program will help you achieve a high Paydex score within 45 days or so, but they will do so by working on the other factors listed above which ultimately determine the size, flexibility, and frequency of the lines of credit your business qualifies for. Quickly generating a legitimate 80 Paydex score will enable your company to qualify for several net 30 or net 60 accounts with vendors. Still, you shouldn’t expect extra large credit limits until your company has had time to prove itself with a solid repayment track record. In some cases, however, diligent and well-connected credit preparation companies have been able to get their clients approved for significant lines of credit before they achieve an 80 Paydex.

This article was written for Grand Teton Professionals for Corporate Cash Credit. For Credit Repair Solutions and Support, please contact us at 203-528-0587 or email us at Support@CorporateCashCredit.com. For Media Relations, please contact Misty.Burrell@GrandTetonProfessionals.com

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The 7 best ways of financing a business

Perhaps you’re the owner of a small business and are wondering what the best ways of financing a business are. Or you’re starting a new business and need financing to go forward with your great plans. Or maybe you’re the Finance Manager of a mid-size company and want to apply the financing strategy that increases the company value the most.

Perhaps your needs are to improve current operations, or you want to expand the production capacity of your business for future market growth. In any case, you know that your decisions about financing a business have consequences not only for the company's short-term financial situation, but for its future too.

Every choice has both associated benefits and costs. That is why you should look for financing only when there is a good reason to do so. If you are not sure that your motivation is sound, we suggest taking another look at your plans and ideas as a way to come up with alternative strategies. 

If you know for certain that financing is required, read the following paragraphs to learn about the best ways of financing a business. 

 1.    Find Internal Resources When Financing A Business. You might think that this is not a way of financing a business. Nevertheless, try to improve your cash flow through internal resources as much as possible. Any other way of financing a business could bring either a cost or a restriction, or maybe both. If you raise capital, your ownership will be spread. If you take on debt, you will have to pay interest. That is why your first endeavor should be to cut unnecessary expenses, increase your sales, or raise the price if possible. Analyze if that new asset is really needed at the moment to expand your operations or if that office remodeling is a convenient project under the current circumstances.

 2.    Improved terms from suppliers and customers. As an owner or top financial executive, you have to make the effort to improve your business’s cash flow as much as possible. Here’s a smart way of financing a business that gives cash without cost: renegotiate terms with your main suppliers and customers, who are your regular commercial partners. Perhaps a longer term of credit is possible with some of your vendors. Or maybe some few good clients agree to pay you earlier than expected or even to pay in advance the delivery.

 3.    Support from relatives and friends. Like most of the people, you probably have some close friends and family that have financial resources and trust you. It is easier for you to present your ideas and business plans for financing a business to people that have known you for a long time. Additionally, you’re likely to receive their money with very soft conditions. Maybe they will not charge any interest if the term is short. Or maybe the interest will be lower when compared to other possible sources. Anyway, do not forget that this group of individuals is a potential way of financing a business with preferential terms.

 4.    Federal government funding. There are several ways of financing a business through programs managed by the US Federal Government. However, these funds are given under specific government policies. Your business has to fit the particular requirements demanded by the program. There are a variety of start-up and small business loans available, so you have to search all possibilities and analyze if you can be one of the eligible businesses. Government terms are always better than conditions granted by traditional loan options. Some agency tools are the Small Business Administration (SBA) and the Small Business Lending Fund (SBLF), among many others.

 5.    Funds from your retirement plan. Depending on your age and funds accumulated in your retirement account, this can be a good way of financing a business. This money is yours and you simply have to follow the legal steps required to withdraw the funds. The only cost is related to the paperwork and to the exchange of future money for money now. Of course, this means that you really believe in your business project. It is, however, a risky decision because you will end up with no money if your company does not go very well.

 6.    Bank loan. This is a traditional way of financing a business but it is also an expensive option for a start-up or small company. If your credit score is nonexistent or poor when asking for a small business loan, the lender could demand a high-interest rate or a large down payment. The financial institution is trying to protect its money because you do not have a good credit history to back the loan. The interest is deducted from your business’s taxable income, and therefore is a benefit related to having debt. However, you have to be aware that the interest is a disbursement that will limit your cash flow every month. Additionally, failing in your payments will hurt your ability to get credit in the future, so it is important to pay on time. Go for a small business loan only if you think that you can obtain good credit terms and when less expensive ways of financing a business are not available.

 7.    Angel investor. It is possible to attract an investor with a lot of money for financing a business, but not as easy as it sounds. Your idea has to compete with many other projects across the country and even the world. This investor also has to trust you because he or she does not want to lose the money. Before searching for your angel investor, make efforts to improve your business strategies. Make excellent presentations of your ideas and plans and ask for advice in the fields you haven’t mastered. If you are young, maybe having an experienced adviser is a good idea. Remember, this new investor will own your business so be sure you want to share your company with someone else.

 There are many other ways of financing a business but they can be very expensive or risky for you. Be cautious about compromising your cash flow too much when you are starting out.

   This article was written for Grand Teton Professionals for CorporateCashCredit, if your business is small or mid-size and has urgent need of funds, you simply cannot wait for several months of preparation to improve your business credit record. Please contact us at support@corporatecashcredit.com. For Media Relations, please contact Misty.Burrell@GrandTetonProfessionals.com

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3 Tips to Build Corporate Credit Fast

Start-up and small businesses often require credit to survive or grow. Financing through credit is a common way to get funding when a company is in its early stages. However, it is generally a period where most of the lenders find that the business’s credit record is nonexistent or too poor to offer credit to. Under such a scenario, the owners and top manager wonder how to build corporate credit fast.

 Maybe you know that you will require cash to finance working capital, or you need to invest in a team, technology or other business expenses. No matter your specific reasoning, you probably cannot wait for months or even years to get corporate credit. You need it soon, and you need it from a source that you can trust.  

 If you think that obtaining business credit is too complex because you do not have a business credit record yet, please keep reading the following 3 steps to know how to build corporate credit fast.

 1.    Prepare your business to build corporate credit fast.

 ●       Separate the business from your personal credit history. Some people tend to start a business without making a legal distinction from their personal situation. However, in order to build corporate credit fast, it is important to begin with a separation between the legal entity of the business and your personal record. Sole proprietorships and general partnerships do not allow that separation. The owner should choose either a Limited Liability Corporation (LLC) or a corporation (S-corporation or C-corporation). For small and medium-sized businesses, a common choice is the LLC thanks to its numerous advantages over other types of legal entities. The LLC structure allows owners to enjoy a good combination of protection from liabilities and more flexibility to affect the operational and financial life of the firm. After this legal step, it is possible to work on the business’s credit record without worrying about the owner`s credit history.

 ●       Get the federal tax identification number (EIN). This is a unique number that is assigned to your business entity. The Employer Identification Number (EIN) is also known as the Federal Tax Identification Number. It is used for many procedures such as hiring employees, paying taxes, and opening a bank account. In short, your company must obtain an EIN, and you can do it directly with the Internal Revenue Service (IRS), free of charge.

 ●       Open a bank account. This sounds obvious but it is a necessary initial task in order to build a corporate credit fast. Avoid informal or cash payments despite the size of your operations when you are commencing. Use a business bank account for all your transactions rather than your personal account and prepare to get corporate credit.

 ●       Set up a phone line for your business. Sometimes the owner uses his or her personal phone to make all commercial deals as a way to simplify the processes at the beginning of the business’s life. Avoid this mistake. You will need a business number to build business credit quickly. The line has to be dedicated to your company.

 ●       Open a business credit file. Use the main credit reporting bureaus, including Experian, Dun & Bradstreet and Equifax. Open a credit file for your business with each of them. Other entities (banks and other lenders) interested in your creditworthiness will ask for your scores from those agencies so you have to be ready for that eventuality.

 2.    Start small to build corporate credit fast

 These actions are useful if you want to build business credit quickly.

 ●       Get business credit cards. Apply for business credit cards that only report to business credit reporting agencies. They are issued in the company`s name, and this credit record will help the process to get corporate credit in the near future.

 ●       Open trade lines with suppliers. Ask your regular providers for credit lines. Most of them make few requirements. You can start with large stores such as OfficeMax or Home Depot and later try to negotiate credit terms with your main suppliers. They will probably give you 30-day credit but you can try to get longer terms. This will help you build business credit quickly because it will give you more cash to pay other debts.

  Use the credit and pay on time to build     corporate credit fast

 ●       Once you have some open credit lines, start using them. Of course, it is recommended that you use only the credit you really need, especially if you have to pay high interest rates. Analyze your business’s real requirements related to assets, inventory, and technical support. Identify which of them can be solved through taking on debt and then use the credit lines according to those criteria.

 ●       Only use credit that you can easily repay. Analyze your cash flow. Do not stress your finance with interest payments that will position your business at risk of default. Be extremely cautious and only choose the credit amount that you are sure the company can pay on time, no matter the business scenario that takes place in the future. This is a necessary condition to build business credit quickly.

 ●       Pay on time or earlier. Be very careful with the date of your payments at this stage because you are trying to build business credit quickly. It is particularly important to pay all your debts on time or even earlier. Any bad performance will be tracked and will affect your reputation as a payer.

 These suggestions explain how to build corporate credit fast. They are useful no matter what specific trouble that your business is facing. If you are ready to start a business, they will help you from the beginning to reduce the chances of delays. If you already have spent months or years operating a firm, these recommendations are valid too.

This article was written for Grand Teton Professionals for CorporateCashCredit. If your business is small or mid-size and has urgent need of funds, you simply cannot wait for several months of preparation to improve your business credit record. Please contact us at support@corporatecashcredit.com. For Media Relations, please contact Misty.Burrell@GrandTetonProfessionals.com

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7 Ways to Build Business Credit Quickly

Businesses don’t start out with perfect credit scores. That’s why it’s so important to build corporate credit and to do it as quickly as possible. Companies without adequate credit ratings find it very difficult to conduct business in this economy.

Unfortunately, building business credit is not an easy task. The process is often long and slow, involving months, or even years, of demonstrating steadfast financial responsibility. To build corporate credit quickly, it takes some industry knowledge and a well-planned strategy. In addition, it’s always a good idea to apply for financing before your business is in dire need of money. Lenders tend to favor situations wherein the company requesting credit is not overextended or financially unstable. However, without good credit, that time may never come.

Even under less than ideal conditions, it’s still possible to get adequate financing. Still, it never stops being important to build corporate credit along the way. So, while your credit scores build naturally, work on becoming more attractive to lenders by using the following tips and tricks:

1.      Get Registered with the Right People To Build Business Credit Quickly

By registering your company with major business credit reporting agencies, your credit history will grow substantially. Dun and Bradstreet (DUNS) registration is very important, but so is registering with Experian, Equifax, and TransUnion. Usually, registration is free and can be done quickly online. Be sure you have your corporation’s Employer Identification Number (EIN) ready to go before you start. Each respective website will require that information. Keep in mind that neglecting to register with the major credit reporting agencies means there is no official track record of your business credit utilization behavior.

2.      Maintain a Positive Banking History To Build Corporate Credit Quickly

Do your best to maintain a good-looking banking history if possible. This includes keeping consistent balance averages, making regular deposits, and having zero “insufficient funds” reports on your account. This sort of behavior bodes well for you, especially when you start trying to qualify for a business loan. In the meantime, speak with the branch manager to discuss all your options regarding business credit cards and lines of credit you may be eligible for right now. Having a diverse credit portfolio is ideal, but only if you can manage it properly.

3.      Streamline Your Billing Cycles To Help Build Business Credit Quickly

It may be helpful for you to make your regular billing cycles line up. Simply request that your suppliers change your billing cycle to match up with the others. Afterward, be sure to register the new billing cycle with the major credit reporting agencies. Under a well-organized billing cycle, you receive the supplies you need and then pay for them 30-60 days later. Many vendors actually like doing this for their clients. That’s because it helps them demonstrate consistent revenues and build corporate credit of their own more quickly.

4.      Apply for Business Lines of Credit

When you apply for corporate credit cards and small business loans, you not only diversify your credit profile, you also create a credit history that can help you build corporate legitimacy through responsible use and timely payments. Work with a team of knowledgeable professionals to determine which lenders in your area are most likely to qualify you for financing. This saves you time and prevents frustration, not to mention saves your credit report from having too many hard inquiries on it.

5.      Use Your Business Credit Cards Correctly

Simply having credit cards and getting approved for small business loans is only half the battle. Using them correctly is a great way to build business credit quickly. Make purchases with your credit cards regularly and always pay back what you owe on time. Simply paying the minimum balance is fine, but it will improve your creditworthiness a lot more if you pay the balance in full when you get the statement. Consistent credit card repayments and small business loan installments help to establish quick credit histories that get better with time.

6.      List Your Utilities in Your Business’s Name To Help Build Corporate Credit Quickly

A significant number of open, revolving credit accounts on your profile will work in your favor, especially if you pay the balance on time and in full each month. For example, by registering your phone or utilities under your business name and EIN, you establish a positive credit utilization pattern that makes your scores grow more quickly. In fact, you can do the same thing with vehicles, property leases, and equipment to get the same result.

7.      Buy a Seasoned Tradeline To Help Build Corporate Credit Quickly

The acquisition of a high-quality seasoned tradeline through a reputable dealer can help boost your business credit rating very quickly. It’s important, however, for you to buy one that best suits your unique credit situation. Have your credit profile examined and analyzed by an expert to find the most effective option and be sure to contact the credit reporting agencies afterward to ensure the addition is being utilized correctly.

Additional Corporate Credit Building Tips

Work hard to avoid any derogatory marks on your business credit report. Remember that it is much more difficult to build a positive credit rating than it is to ruin it with poor financial choices. Conversely, it’s much easier to maintain a good credit rating than it is to fix it once it’s damaged.

Although some of the steps mentioned above won’t provide you with immediate results, they will increase the speed at which your credit scores grow. Working with a professional financial services team can help you devise a long-term plan to build corporate credit quickly and keep it where it needs to be. In the meantime, avoid credit offers that ask for a personal guarantor, as those types of loans use your personal credit report and do nothing to help establish your business credit.

 This article was written for Grand Teton Professionals for Corporate Cash Credit. For Credit Repair Solutions and Support, please contact us at 203-528-0587 or email us at Support@CorporateCashCredit.com. For Media Relations, please contact Misty.Burrell@GrandTetonProfessionals.com

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5 Best Reasons To Get A Business Loan

Business loans are given to companies to finance projects and kick-start new ventures. Credit is often a good strategy to initiate operations and grow. Indeed, getting a business loan is a common financial method for companies who want to engage in activities that are supposed to generate positive returns in the future.

Of course, business loans come with an associated cost—which is the interest rate applicable to it. That is why you should apply for a loan only when there is a good reason to do so. If you are not sure that your motivation is solid, we suggest taking another look at your plans and ideas as a way to find a less costly strategy to get them up and running. Will this loan significantly change your business for better or worse? How quickly can you pay it off? These are all questions you should ask yourself before considering going into debt as a viable option.

Let us help you in making that decision by taking a look at 5 good reasons to get a business loan.

Reason #1: You need to build credit history for the future.

If your business doesn’t have credit history, it is an excellent idea to start building its credit. This will facilitate the task of asking for a business loan in the future, when you will probably need it the most. Obviously, you should start with something small and manageable, so you can learn the basics of borrowing money, along with its ups and downs.

This way, you will be able to always pay on time, which will help you in creating a solid credit history that will portray you as an excellent borrower. Getting a small business loan will also provide you with a financial relationship with a lender that could be really valuable when you aim for large-scale financing.

Reason #2: Your current assets are limiting your growth potential.

Depending on the particular activity your company has developed, you can require more or fewer assets to operate and grow.

Businesses that are capital-intensive are those in which the activity is heavily dependent on capital assets, such is the case with machinery or vehicles. If you find that you’re losing out on new clients because your equipment is already being fully exploited, such as, if all of your production lines are working 24/7, you should consider getting a loan to purchase more equipment that will allow you to expand.

In this case, if you were to get a business loan, you would have the ability to purchase the additional assets required to increase your production volume that will expand your capacity to fulfill that existing demand.

Nevertheless, be cautious about any investment decision made through loans. Not all assets are investments that should be acquired through credit. The new acquisition should guarantee growth and enough profits to justify and repay the loan timely. For example, new expensive machinery that would pay for itself in five years should not be financed with a 2-year loan, as the cash flow coming from it will not be sufficient to cover the installments in a timely manner.

Reason #3: Your business requires additional space to operate.

If the volume of products or services that your company provides has grown and you now lack the space to serve your customers or to store the goods, it’s time to consider expanding. Many companies study this possibility by either establishing additional stores or facilities in order to reach a larger customer base.

If you don’t have the money to finance the physical expansion, you should apply for a business loan if the project contributes to the overall growth of your revenue and profits.

We recommend that you carefully evaluate the appropriate amount of money to ask for because you have to make sure that the expansion will provide positive results over the long-term. Any additional investment or expense must be more than compensated by those additional inflows.

Reason #4: You need additional inventory.

Most businesses deal with some kind of inventory. It can either be physical goods that you sell directly to your clients or it could be other types of products that are associated with the service you deliver.

Keeping up with the demand is not always easy because your cash availability is often dependent on your cash cycle. If your company is not in a position to make large purchases but you see an unserved portion of demand out there, using the resources coming from a business loan can help you reach those potential customers.

If your business operates seasonally and you have to stock up when sales are not common enough to justify the increase, you should consider a loan only if you know you’ll make your money back within the loan. Under such scenarios, getting a business loan is usually a good call.

Reason #5: You want to take advantage of an incredible opportunity.

If you have found a very attractive business opportunity and you think it would be a waste to miss it, but you don’t have enough financial resources to complete the deal, a loan may be a good option. An example of this might be a contract that will be allocated to your firm, but you have to spend a lot of money on expensive equipment before the project starts providing income. Obviously, you must forecast all your expected revenues and costs, including the interest rate of the loan in order to guarantee that getting a business loan would be a good idea.

Despite the specific details of the business loan, you have to be aware that going into debt can be costly if lenders evaluate your company as a high-risk entity. In general, interest rates and down payments increase for borrowers with poor or non-existent credit history. In this sense, we highly recommend that you build a solid credit history before you apply for a large business loan.

If you have an urgent need for funds but a poor credit history, you can contact us at CorporateCashCredit.com where we will help your business increase credibility with lenders by improving your business's paydex score which will eventually lead to approval for funding.

During the 45-day process of obtaining your 80 Paydex Score on Dun & Bradstreet, we help you make 4 or more credit payments to put toward building your score. We will help you make charges and then pay those charges off before the due dates. Once your Paydex reaches a score of 80, we will start the funding process through several rounds of financing that will be carried out through our network of allied lenders who are standing by to approve you for funding our network of allied lenders.

APPLY NOW for a free analysis and give us the opportunity to help you! We are happy to offer up our expertise for your business to help you achieve all your financial goals.

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What is a Paydex Score and How Can I Achieve a High Score?

Businesses require credit on an ongoing basis. Borrowed funds can be employed to invest and expand operations in order to increase the size and profitability of the company. You might think that only firms with bad performance borrow money but the reality is that most of the successful corporations in the world need external funds to grow.

Certainly, funding can be a great idea when the firm has solid plans to allocate the money and make it productive. However, obtaining these funds may become somewhat challenging if lenders estimate your default risk is high. In general, interest rates and down payments increase as the borrower shows a poor credit history. If yours is not too favorable, lenders will simply conclude that such behavior will repeat in the future. That is why showing a low-risk profile becomes an important goal for companies looking for funds.

How can you measure a company’s creditworthiness? In order to support an impartial judgment about how reliable a company is in terms of fulfilling its financial commitments, Dun & Bradstreet created the Paydex Score.

Dun & Bradstreet is a US company that has pioneered the provision of financial and commercial data related to millions of companies operating in hundreds of cities around the world. In the following article, we will explain what the Paydex Score actually is and how you can increase yours.

What is the Paydex Score?

The Paydex Score is an indicator of how well a company has fulfilled its obligations with its suppliers and lenders during the past year. This score measures the creditworthiness or, in other words, the timeliness of payments made to vendors and providers through a dollar-weighted formula. Larger invoices weigh heavier on the score than smaller ones. The score takes data from every payable account a firm had over the past 12 months and the number of days before or after the due date in which such payments were made. The due date is the result of the “agreed time”. If the supplier proposes a net-30 credit and the client agrees, this denotes that all invoices should be fully paid within 30 days.

The result of a Paydex Score is always a positive number between 0 and 100 and the ranges are interpreted as follows: a score under 20 means payments come over 120 days past due; between 20 and 40 means they come 60-120 days past due; between 40 and 70 means 15-60 days past due; an 80 score means they come perfectly on terms; and a score between 80 and 100 means the company pays 1 – 30 days sooner than terms. The shorter the time between the agreed time and the date of the disbursement the higher the Paydex Score.

Lenders and suppliers prefer clients with a high Paydex Score, usually a number over 75. This indicates that payments are made almost always on time and, when delayed, the days past due are few.

If you are interested in knowing your business’ Paydex Score, you have to obtain your Data Universal Numbering System or DUNS as the first step. This is a nine-digit code given by Dun & Bradstreet that will belong only to your company. You can apply for the DUNS through the company’s website. Every DUNS indicates a unique number. The DUNS numbers are widely used in the business world as a business’ unique identifier, especially in the United States. Moreover, it is currently a kind of standard identification thanks to the size and quality of Dun & Bradstreet’s database, in which a broad range of company information is available.

Secondly, you must have open trade lines in order to build data related to your credits. Finally, the index will be calculated, and it will be available for companies interested in looking at your score.

In case your resulting Paydex Score is not as good as you want, you would need to make a plan to improve it. Definitely, making efforts to have a Paydex Score over 75 is an appropriate strategy before looking for borrowed funds.

How could you achieve a higher Paydex Score?

Here are a few practical tips to increase your Paydex Score.

1. You should do your best to pay earlier. You must manage your business credit wisely by paying on time and even pay large commitments a little bit earlier than expected.

The Score requires at least 4 payment experiences, so you have to comply with this minimum requirement. If obtaining this number of experiences will be hard for your company due to its size or its business model, you can use a business credit card to generate enough data that will be reported and incorporated on your score.

2. Another way to increase your Paydex Score is to negotiate longer terms with your vendors and suppliers. This way, you will be more likely to pay within the agreed terms.

Maybe you think that those recommendations are nice, but you want to obtain a higher Paydex Score very soon because you need funds urgently.

In that case, those advices are far from being a real solution.

If this is your situation, you can benefit from our services at CorporateCashCredit.com. Our service aims to boost your business’ credibility in order to get a higher Paydex Score, so you can get funded EASILY.

During the 45-day process of obtaining your 80 Paydex on Dun & Bradstreet, we will help you make 4 or more credit payment experiences that will help you in achieving an 80 Paydex Score. We will create charges for you to pay off before their due dates, so you can become credible in the eyes of lenders. Once your payments are reported and your Paydex exceeds 80, we can help you get funded through our network of allied lenders who are ready to work with all of our clients.

APPLY NOW for a free credit analysis and give us the opportunity to help you!

Get credible, get scored, and GET FUNDED at CorporateCashCredit.com

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The Easiest Way To Get Approved For Small Business Credit Cards

For easy approval small business credit cards and nice rewards, you have some card options that have it all. Business credit cards are very convenient as they increase your power to purchase for big spending, or even withdraw cash in an emergency by giving you more flexibility to carry up a balance. Small business credit cards are an extremely powerful financial tool. There are some credit cards, of course, that might be more appropriate for the needs of your business than others. All of them will contribute to your creditworthiness, which is always an issue if you are starting out or your business doesn’t have a sustained and solid track record. There are some things you should take into consideration when applying for a new business credit card.

How To Get Approved Easily for small business credit cards As a business owner, you might feel overwhelmed when applying for business credit cards after seeing all of the possible options. Each type of business credit card has its own various features, functions, and benefits, so you should evaluate what better fits your needs. Interest charges on business credit cards are similar to personal credit cards and you will incur charges if you start carrying a balance after billing cycles, so try to secure and maintain the lowest rate possible. Small business credit cards also come with annual fees, and even monthly fees, for charges that you might have to pay in exchange for the easy approval. It is particularly important to understand that credit limits are generally based on the strength of your business credit rating and your personal credit score which measure your creditworthiness as a client, but in the case of small business credit cards, you are able to qualify for larger credit limits. You should try to keep your personal credit report and score updated, error free, and your business credit rating the best you can so your business will be easily approved for bigger spending limits. Deletion Expert is a great way to take care of problems with your credit report. Business credit cards provide rewards or bonuses as incentives such as discount rates, car rental discounts, or travel rewards, even cash back is offered as awards based on a percentage of the purchases of your business. The idea is that lenders often compete to give better options to catch you, as a client, looking for a new business credit. Your first step must be to make an assessment of what you really need and make sure both your personal and business credit scores are able to fit your needs.

The advantage of small business credit cards vs. other loans As a business owner, it can be easier for you to get approved for small business credit cards than traditional cards, lines of credits from banks, or small business loans. In contrast, small business credit cards offer much more flexibility than common term loans—including several payment options during a billing cycle. Small business credit cards are not limited to fixed monthly payments, so they become an economic pillow when you face a financial emergency. Business credit cards allow you and your business to effortlessly handle online payments and transactions. Each report your business credit agency sends to credit bureaus is an excellent way to start establishing your business creditworthiness with a favorable credit file. This means you might also get offers for lines of credit or, possibly, reduced interest rates.

Unsecured small business credit cards for your company There are basically two types of credit cards for businesses—secured and unsecured small business credit cards. Your company or business is guaranteed approval because you pledge collateral, which is typically in the form of a cash deposit, with a secured credit card that actually secures the account. On the other hand, we really like and recommend unsecured credit cards for small businesses, for which, approval is based on the strength of your credit rating as business and personal credit as the guarantor of the company and the credit. Typically, a credit score above 680 is required for easy approval for small business credit cards and unsecured business credit cards.

Instant approval for small business credit card Applying online for a small business credit card is a convenient way to speed up the application process and get easy approval with a quick decision. An excellent FICO score is a plus for easy approval for small business credit cards if you have up at least 680 points. Several lenders and credit card issuers offer prepaid business credit cards which are secured credit cards if you have poor credit history, so you can get easy approval for small business credit cards with a fair or bad credit score. Remember that every business credit application you make means you will have a new inquiry on your credit report, so if you feel your credit score is damaged, just try a https://deletionexpert.com/ to get this done. We can help you leverage your credit score and report to the highest level even when you apply for our options of unsecured funding, like unsecured small business credit cards, with a quick application process and easy approval. Always keep in mind that credit risk is different with every credit card issuer in the easy approval for small business credit card process. Take your time to do your research so you can opt for the best terms and options that really fulfill your needs with the best interest rates, highest credit limits, and the ability to build your business creditworthiness with an easy approval for small business credit cards.

This article was written by GrandTetonProfessionals.com for CorporateCashCredit.com. For Sales and Support Please Contact us at 203-297-6090 or, email us at: Support@DeletionExpert.com. For Media Relations please contact Misty.Burrell@GrandTetonProfessionals.com

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How to Build Corporate Credit Fast Using an 80 Paydex Program

The corporation Dun and Bradstreet assigns a special credit score to a business called a Paydex. That score rates the likelihood of any given business to repay vendors, suppliers, and creditors in a timely manner. Unlike personal credit scores which range from 0 to 850, a Paydex score ranges from 0 to 100. The higher the number, the better your chances of getting an unsecured business line of credit to pay for expansions, employees, supplies, and other business-related expenses. By responsibly utilizing an 80 Paydex program, you essentially put your business in a low-risk category. An 80 or better score indicates that your payment history is timely and therefore has a decreased chance of being repaid late.

Understanding How the Paydex Is Used by Your Business

Your personal credit rating is used primarily to measure the financial hazard you present to lenders, or lack thereof. However, a Paydex score is used in several more ways. For example, it can affect the premiums and APRs that your business is required to pay on credit cards and bank loans. An 80 Paydex score lowers the interest rates charged to your company and puts your business in line to receive better unsecured funding products.

Another way that your Paydex score is used typically doesn’t apply to consumers, and that’s when it comes to borrowing from vendors. Vendors deliver goods and services before invoicing the business and then receive payment for those goods and services after the delivery. As a result, vendors must assume a certain level of risk that they won’t be paid. So, the Paydex score of a business is a useful metric for determining whether a client will leave a vendor hanging. Poor Paydex scores make suppliers naturally reluctant to do business, and may ultimately limit the size and scope of goods and services they’re willing to part with before being paid.

Knowing how to build corporate credit fast by establishing an attractive business credit Paydex score is the only way to succeed in this highly competitive economy. It’s important that you know what goes into a Paydex score. Additionally, it’s vital to be aware of how your business spending habits affect that.

How a Paydex Score Is Calculated

To get corporate credit and use it as intended, you must understand how a Paydex score is determined. Put simply, your score is calculated based on a history of trade references regarding your business. Instead of looking solely at your business’s history of financing from lenders, Dun and Bradstreet uses a company’s various payment histories with the vendors and suppliers it works with. As such, Dun and Bradstreet recommends that a business have at least four separate trade references on file to accurately calculate a Paydex score.

Although most trade references remain on a business credit report for quite some time, only those reported within the last 2 years are used to calculate a Paydex score. Therefore, it is often difficult for new businesses to establish corporate credit without a workable strategy. It is in a company’s best interest to maintain a consistent flow of trade references and have them reported in a timely manner. Unfortunately, credit card payments don’t count as a trade experience.

What Qualifies as a Trade Experience?

Businesses often face the challenge of locating enough vendors to meet the minimum trade experiences needed to receive a Paydex score. In fact, some smaller vendors don’t report their transactions to Duns and Bradstreet without provocation. This is generally the underlying issue for businesses in the service industry, because they don’t work with many suppliers. Tech startups have this problem as well, since they usually have very few outside needs. For businesses like that, finding trade experiences means knowing where to look.

One way to increase trade experience is to use accountants, lawyers, and landlords as references, but only if those relationships are billed through invoices and have relative payment terms. Additionally, setting up a business account with a major office supply store can help, as they usually report trade accounts directly to Dun and Bradstreet automatically. Then again, having plenty of trade experience won’t matter if you don’t have an active account with Dun and Bradstreet to begin with.

How to Get Your Paydex Score

To get a Paydex score at all, your business must be registered with Dun and Bradstreet with a valid DUNS number. Although DUNS numbers are assigned to each location of your business, your Paydex score is assigned to the headquarters. So, if your company has numerous offices that work with suppliers separately, you should always use the primary DUNS number with vendors. This will help you get a Paydex score by generating plenty of trade experience.

Tips to Improve Your Paydex Score Fast

Establishing a business credit Paydex score is only half the battle. You must know how to manage it and improve upon it when necessary. A Paydex rating is designed to measure a company’s financial responsiveness, so it’s vital to maintain high scores within the company as a whole. Businesses should negotiate longer payment terms with each vendor to increase the probability of on-time payments and ensure that the company’s trade experiences reflect positively on the Paydex.

Keep in mind also that only references from the past two years have a direct effect on your score. Recent trade experiences are thus more valuable and will have a greater impact. Furthermore, the relative size of each unsecured business line of credit weighs heavily on your overall rating. As such, payment histories on larger accounts will affect your Paydex more than the payment histories on small accounts. For example, paying a $20,000 bill late will affect your Paydex score a lot more than paying off a smaller $500 bill would. Choose your battles wisely or work with a team of professionals who can help you get your Paydex to 80 fast.

Moreover, understanding what each of the values on your Paydex score means is an important factor to properly managing and improving your rating. While businesses shouldn’t be concerned about having a perfect score, business owners should do everything within their power to adequately elevate their rating through a feasible 80 Paydex program. To get enough corporate credit to successfully run and improve your business, it’s vital that you set out to establish business credit as soon as possible.

 This article was written for Grand Teton Professionals for Corporate Cash Credit. For Credit Repair Solutions and Support, please contact us at 203-528-0587 or email us at Support@CorporateCashCredit.com. For Media Relations, please contact Misty.Burrell@GrandTetonProfessionals.com

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What To do Before You Apply for Business Credit

It’s important to properly establish business credit before you submit applications with lenders. Although unsecured business credit doesn’t require a co-signer or collateral, it’s still vital that you build up your corporate credit rating before applying for small business loans. Doing so helps in at least two main ways:

·         It allows you to maintain a credit history that is separate from your personal credit report.

·         It demonstrates a favorable separation between the business owners and the business itself.

When you build business credit quickly, you can enjoy the benefits of having a creditworthy enterprise without doing damage to your personal credit rating. Sometimes, finding the money to maintain and/or expand your business is difficult. Those who don’t have adequate corporate credit usually end up using their own money to suffice.

By having a business credit history that remains separated from your personal one, you thereby minimize the effect of any negative marks that one may have on the other. For instance, if you suffer a few financial setbacks on your personal credit report, they won’t impact your business credit as much if you have established a clear line between the two. The same is true about your business credit, as it won’t affect your personal report nearly as much if your business credit has already been well established.

There is an exception to the rule, however. If you’re operating the business under sole proprietorship or a general partnership, it’s essential that you demonstrate a separation between personal and business credit. Small business loans are difficult to come by when one or more of the sole proprietors is failing with their personal finances. Before you apply for business credit from any lender, consider using a business credit building program.

Keep your protective measure intact by consistently showing a clear separation between owners’ credit history and business credit history. Incorporated businesses and limited liability companies (LLCs) provide business owners with a form of protection for their personal assets. A good business credit building program can help you incorporate properly before the two reports get mixed.

6 Steps to Building Business Credit Quickly

There are several benefits to having good business credit aside from the ability to keep your personal credit separated. Favorable credit positions your company for better payment terms and lower interest rates on small business loans and corporate credit cards. It makes your company look more attractive to vendors and suppliers as well, reducing the number of times you need to repay for the goods and services required.

Once your good business credit has been built, be sure to monitor and protect it in the same way that you monitor and protect your personal credit. If getting a corporate credit card sounds like a good fit for your business, be sure to build business credit quickly to get the best deals. If you’re like many business owners and don’t know where to start, consider the following steps before you apply for secured or unsecured business credit:

1.      Before You Apply For Business Credit Incorporate Your Business

With sole proprietorships and general partnerships, the owner is legally the same as the business. Unfortunately, this can make credit history separation impossible and make it very difficult to build business credit quickly enough to operate the venture properly. By incorporating the business or by forming a simple LLC, it creates a business that is legally separated from the owners and makes it easier to apply for business credit. The best business credit building program can help you incorporate properly and in a timely manner.

2.      Before You Apply For Business Credit Establish a Business Bank Account

Opening a bank account that’s strictly for business expenses and income is important, just make sure it is opened with your business’s legal name. Once open, be sure to pay the financial obligations of your business from that account exclusively and never mix up your personal and business accounts. If you use an unsecured business credit card to pay for things related to your company, pay the bill using that account only. Keep records of your expenditures and deposits for tax purposes.

3.      Before You Apply For Business Credit Get a Federal Tax ID Number (EIN)

An EIN (or employer identification number) is basically just a social security number for your business. It’s required for all tax filings and is also needed to open a business bank account, especially if you’ve incorporated or formed an LLC. To properly comply with IRS mandates, most larger businesses need an EIN from their vendors to pay for goods and services. Furthermore, an EIN makes you look more established to potential creditors as well, not to mention it helps you build business credit quickly by instantly separating your personal credit report from your corporate one.

4.      Before You Apply For Business Credit Establish a Line of Credit with Vendors

When you work with at least 3 to 5 vendors to supply your business with its necessary accouterments, it creates credit for your company. However, when you create a line of credit for your company through a few of those vendors, it expedites the credit building process tremendously. Just make sure you pay bills in full and on time and see to it that each vendor reports your payments to the credit reporting agencies.

5.      Before You Apply For Business Make Sure You Are Paying ALL Your Bills on Time

Paying your bills in a timely manner is one of the best ways to boost your business credit scores quickly. Like your personal credit profile, late payments will negatively impact your business creditworthiness and make it difficult to get financing. On-time payments over a long period of time can increase your credit scores significantly.

However, if you fall on hard times, apply for business credit before you default on bills to protect the integrity of your enterprise. If your business is not in the position to get approved for small business loans, consider purchasing a credit-ready aged corporation to improve your chances and increase the amount of money you can get.

6.      Before You Apply For Business Credit Get Your Business Listed

Having a legitimate, working business phone number and/or website is a good way to gain trust through market transparency. Whether you use a landline, cell phone, or VoIP, maintain a separate number for your business and get it listed under your business’s legal name. Have that number listed in a directory as well, and don’t forget about Yelp, Google, Bing, and other popular search engines that will make your business more easily located and increase its reputation with customers, creditors, and vendors.

The Final Verdict

To build business credit quickly and get approved for small business loans and other forms of unsecured business credit, look for a business credit building program that walks you through all the steps listed above.

 This article was written for Grand Teton Professionals for Corporate Cash Credit. For Credit Repair Solutions and Support, please contact us at 203-528-0587 or email us at Support@CorporateCashCredit.com. For Media Relations, please contact

Misty.Burrell@GrandTetonProfessionals.com

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6 Ways To Build Business Credit Quickly to Launch Your Company in the Best Direction

All businesses, big or small, require a funding source of some kind. Whether you get the money needed via a company savings account, a personal money stash, or small business loans, it’s still important to have a favorable credit score. However, due to the unpredictable nature of running a business, it’s not always easy to maintain a positive credit rating without a little help. Sadly, a negative or mismanaged credit profile can make financing a business very difficult.

Regardless of your current financial situation, being proactive about your company’s credit rating is extremely important. Since hindsight is 20/20, it makes perfect sense to get ahead of the game while you still can. Even if you have great credit, the right strategy can only make things better. Especially for budding businesses that have little to no corporate credit, using a business credit building program can make a significant difference in what your venture is worth.

To build business credit quickly and legitimately, a few effective strategies are often required. Unfortunately, few business owners know where to start. Aside from paying bills and vendors on time and requesting very little money from creditors, most companies rely solely on their earnings to cover expenses, expansions, and other incidentals. While that method may work for some, temporarily, it’s bound to eventually wane in effectiveness, especially as inflation and other monetary concerns takes a toll on the company.

The Top 6 Ways to Look Appealing to Creditors, Vendors, and Customers In Order To Build Business Credit Quickly

When running a business, your financial activity is always available to vendors, creditors, investors, customers, and stockholders alike. As such, any negative marks on your credit report may drive potential partners away. Furthermore, bad credit can make it impossible to get the unsecured corporate line of credit you need to succeed in your industry. Without proper funding, you could face foreclosure or worse.

To look as appealing as possible to those in charge of your loan eligibility and market relevance, it’s important to remember the following:

·         Apply with Lenders Offering Small Business Credit in Your Area.

Most lenders want to support local businesses, which can be both an advantage and disadvantage depending on how you look at it. When financing a business, it’s vital that you first apply with lenders in your own geographical area. This not only increases your chances of getting an approval for small business loans, but it may also help you build partnerships that could remain established throughout the life of your venture. The right business credit building program will introduce you to creditors who typically finance companies in your location.

·         Look for Lenders Who Are Approving Small Business Credit Applications

By applying only with willing creditors for an unsecured corporate line of credit, you reduce your risk of being denied, or worse, racking up too many hard inquiries on your report. Since inquiries can reduce your credit score, it’s perfectly reasonable to seek a business credit building program that has a team of experts who know which lenders are approving applications and which ones are less likely to vote yes on your behalf.

·         Have Your Inquiries Removed Afterwards

Regardless of your small business loan application success, it’s important to work towards removing the inquiries you obtain throughout the process. While doing so could require several weeks to complete, the best business credit building program will understand how essential it is to get this done as soon as possible. In fact, the sooner you have hard inquiries removed, the better your chances of achieving progressively higher loans each time you reapply.

·         Delete Any Fraudulent Activity on Your Credit Report

To look even more appealing to lenders, customers, investors, and vendors, allow the business credit building program experts to delete any fraudulent or questionable information from your report. While you may have to use another program to get this done, it will certainly make you more credit-ready. Be sure to have your credit report analyzed carefully to find out if this step is needed.

·         Obtain an 80 Paydex Score

Paydex is a Dun and Bradstreet (DUNS) term used to describe the numerical score given to a business as that business’s corporate credit score. It represents the promptness with which that business makes payments to creditors and vendors. Similar to consumer FICO scores, a Paydex is used primarily for commercial enterprises and determines creditworthiness. With the right business credit building program, you should be able to get approved for significant funding without reaching an 80 Paydex. However, that program should be designed to help you achieve an 80 Paydex eventually, at which time you should be able to reapply for more financing after removing the inquiries on your report.

·         Use Dedicated Small Business Credit and Funding Consultants

Regardless of how much you think you know about financing a business, it’s still imperative that you use knowledgeable coaches to help you navigate the complicated process of building business credit quickly. Credit and funding coaches can help you with several things, including but not limited to:

o   Finding useful trade credit lines

o   Helping you set up useful corporate accounts for those trade credit lines

o   Achieving an 80 Paydex as quickly as possible

o   Becoming approved by multiple lenders

o   Understanding how much funding you can get with each application

o   Completing the process of getting credit-ready

o   Removing hard inquiries from your report

o   Beginning the second (or third) round of financing

o   Assisting with creating a custom corporate identity kit

o   Developing a proven business and/or marketing plan, as well as a financial projections template

Reasons to Build Business Credit Quickly

To build business credit quickly, it’s important to get the process started as soon as possible. Get enrolled in a business credit building program immediately to gain the credit rating needed to obtain the small business loans you need to keep your company afloat, pay for expansions, buy the inventory requires for successful operations, or whatever else you may need.

The longer you wait to obtain an unsecured corporate line of credit, the harder it will be to fix the negative marks on your credit report. Don’t be afraid to ask questions if you’re unaware of how the process works. The right business credit building program will have a team of expert representatives that can help you understand what’s required and what’s to be expected from your efforts.

 This article was written for Grand Teton Professionals for Corporate Cash Credit. For Credit Repair Solutions and Support, please contact us at 203-528-0587 or email us at Support@CorporateCashCredit.com. For Media Relations, please contact Misty.Burrell@GrandTetonProfessionals.com

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Being able to build business credit fast is a real treat, especially when you have lofty goals which would otherwise take a lot of time to achieve. With CorporateCashCredit.com, it is easier than ever to build corporate credit quickly and without complication. Our standardized and proven approach succeeds each and every time, with the majority of our clients having the opportunity to complete the process within just 6 months.

Understanding How CorporateCashCredit.com Helps You Build Corporate Credit

So how have we been able to formulate such a feasible and effective plan when it comes to helping our clients achieve and 80 Paydex and build business credit fast? Well, the method is quite simple and is as follows:

Clients Let Us Build Corporate Credit Using a Concise Knowledge of Their Current Credit Rating

We start the process of helping clients build corporate credit by analyzing their present credit report. This gives all parties an extensive insight as to where any issues are while helping everyone understand the root cause for the impending plan-of-attack. One of our experts will look things over and begin setting clients up with the best options, including goods and services provided by our reputable sister companies.

Clients Allow Our Experts to Carry through with the Plan to Build Business Credit Fast

Once the plan is made, our team of professionals will begin to build business credit quicker than you might expect. The timeline will go as thus:

·         7 Days to Get Credit-Ready

·         45 Days to Achieve an 80 Paydex

·         First 21 Days of the 45-Day Paydex Period - Dedicated to Getting You Funded Ahead of Time

The next 128 days of the program consist of clients following through with a plan that looks something like this:

·         First 21 Days After 80 Paydex to Get More Funding

·         45 Days to Remove Credit Inquiries

·         Last 21 Days After Inquiry Removal to Get Financing and Useful Trade Credit Lines along the Way

Build Business Credit Fast with a Method that Works like a Charm

For more information on how CorporateCashCredit.com can help you build corporate credit quickly and legitimately through the use of well thought-out planning and strategic methodology, visit our website to speak to an agent. Use the Live Chat option for quick access to a representative or to begin the process right away.