How To Build Business Credit Fast
How To Build Business Credit Fast
How to build my business credit fast? Are you ready to build business credit quickly so that you can have all of the funding that you want and need for your business? Well, you are definitely on the right track. I'm going to tell you exactly how to do it with no fluff so that you can get all the funding that you need asap. Let's go.
I'm going to share with you the quick and easy three-step process to building business credit fast. I'm going to share with you the biggest secret that my student taught me about building credit as a newbie in today's environment.
And last but not least, I'm going to share with you the biggest track and biggest mistake that you can make when you're building your business credit and how to avoid it. So, let's first talk about business credit versus personal credit because there are some major differences. Business credit is much different from personal credit.
As you already know with your business credit, you have three different bureaus. You have Experian, you have Equifax and you have Transunion. But when it comes to personal credit, it is very much different. They are looking at how well you pay back your debts and what your debt ratio is.
So, if you have trade lines on your personal credit, you will notice that they are reporting all of your credit cards, all of your mortgages, maybe you have some student loans, and maybe even have a car note. And all of the trade lines will be there based on the types of trade lines that you have. Whether it be revolving accounts or installment accounts.
And they also look to see what your mix of credit is, how long you've had those credit trade lines and how well you've been paying them. And they will give you a fico score based on this algorithm with a mix of all of those things that I just mentioned. But when it comes to personal credit, what you really need to know and the very important part is, they will hurt your credit or you can lose points as you start to use your personal credit cards.
So, when we're talking about building a business, it's actually very difficult and sometimes very detrimental to your personal credit when you start using personal credit cards to fund your business. And this is why you're going to want to use business credit. Business credit also has three different bureaus.
Equifax Business
They have Experian business, they have Equifax business and they have Dun and Bradstreet. Dun and Bradstreet is the number 1 credit reporting agency for businesses. And this is the juggernaut. They've been around doing it the longest and this is what you will hear mostly talked about when we talk about business credit. So, let me share with you how you can get yours going. So, the important thing with business credit is to start now.
Starting now will actually get you ahead of the game and it's probably one of the biggest mistakes that i made in my own business and one of the things that slowed me down a bit because I did not learn about and start on my business credit sooner. Please don't make that same mistake.
So, let me tell you my story really quickly and how you can avoid some of the mistakes that I made. So, as many of you know, I started as a real estate investor. I was in my parents' basement, dejected and sad around 2009.
I started investing in real estate in 2002-2003 but I had no idea what I was doing. I was flipping houses with a job. So, along comes 2008-2009, the market crashes and I pretty much lost everything. Ended up in bankruptcy with multiple foreclosures and back in my parents' basement.
What a disaster?
So, from there, from my parents' basement, I actually found a coach that taught me some things about real estate investing that changed my life. He taught me wholesaling and then I went to fixing and flipping.
Eventually, I started getting rental properties and I eventually quit my job because I had enough rental properties and income from those rental properties to replace my income. But along the way as I was doing all this real estate investing, I never built my business credit. I was kind of a disaster with that.
So, I never really got into it. I had a business license, of course. I had an EIN number but I was missing out on hundreds of thousands of dollars in business funding. And now today, I have millions of dollars in business funding. And that was a mistake because I could have had that a long time ago.
And I literally could have quit my job a lot sooner had I known the things that I'm going to teach you next. So, let's talk about how to build business credit fast. The first thing that you want to do is actually set up the business. Because you're watching this video, it lets me know that you are smart and on the right track.
You know about business credit, at least you've heard of it. So, make sure that you go through these steps really quickly because you can actually start building your business credit and get business funding without actually making profits in your business yet. The first thing that you want to do is set up your business. You're going to need to name your business, get an LLC or an S corp or a C corp.
EIN Number
Essentially, register your business with the secretary of state so that they can find you. Go ahead and get your EIN number which stands for employer identification number. And this is completely free if you go to irs.gov. And the important thing about the EIN number is it will be your business' social security, almost. It's how the IRS will identify you as a business.
And it's what you can use so you can start getting away from personal credit and into business credit. You will really start using your EIN for everything using the information that I'm going to teach you. You also want to set up your phone number for business, not just your cell phone. You want to get a business phone number. Super cheap. I'll give you some links below. You also want to set up a business email.
Again not mememe@gmail.com but a real business email such as noelle@abcproperties.com. Just using that as an example. And then finally, you want to get a business checking account. Once you have this done, you are going to be 10 steps ahead of most businesses. Because now, you can go ahead and get your Dun and Bradstreet number and get a business profile for your credit setup.
So now, let's talk about how to get that Dun and Bradstreet credit report going fast. Like I said, if you follow the steps that I just mentioned before, you will be able to get a free Dun and Bradstreet number just by going to dnb.com. Again, this is completely free. But you must have all of the things that I said. And you literally can get all of those things set up in a day depending on what state you're in, okay? The next thing once you go to Dun and Bradstreet and you apply for that number, they have a weird process.
They're going to mail you a code, okay? And they're going to mail it to the business address. And that's because they want to verify that that is truly a real business address. You don't want to use a P.O box and I don't recommend that you use your home address. However, if you have to go ahead and do it and you can change the address later.
The key is getting this done as soon as possible so you can start getting trade lines on that business credit report as soon as possible. Once you go ahead and you get that code in the mail, go back to Dun and Bradstreet, register your business and you're on your way. Now, I'm going to give you a quick tip. They're going to try to sell you something, okay?
They're going to offer you a service where they can build your business credit a lot faster. Again, you're an adult, you can do what you want. But take it from Noelle. I actually did pay the money to do that and I got zero results. Not saying anything negative about Dun and Bradstreet. I just did not find any success with that fast track thing that they gave you where you pay for expedited services where you can add your own business trade lines.
Businesses and Vendors
It just didn't work for me. I had a ton of businesses and vendors that I was already paying and I tried to add those trade lines to my report. So again, beware. It's something that they're going to offer to you. I don't necessarily recommend it but again, you're free to do as you choose and check it out if you want to. Now, it's time to start getting tradelines on your business credit.
Like I said, "I want you to do this fast." The first thing that you can do to completely get trade lines up there in a very quick way is start with vendor credit. Vendor credit is where they will offer you an invoice.
Essentially there are companies businesses that lend to businesses in a small way through a process that we call vendor credit. Those 3 companies that I recommend are Uline, Grainger and Quill. I have a whole video that I've made so I'm not going to get into all of how you do it really quickly.
I'll make sure to put a link below and you can check out that video as well. But those 3 companies I know for a fact all report to Dun and Bradstreet and they do it pretty quickly. You can even purchase things for your business which is what I recommend. You just have to spend at least $50. If you spend $50 and you have you set up a free business account, again, this is completely free.
They will offer you in many cases, where you can get those items, you buy their products you get them right now and you don't have to pay for them for 30, 60 or 90 days. We call this net 30s, if they give you 30 days. Net 60 if they give you 60 days or net 90 if they give you 90 days. In the beginning, when you first start, you may have to pay for cash. But that's okay. Even if you do a cash transaction, they will still report that to the business credit bureaus and you can start getting business trade lines quickly.
Last but not least, now that you have some vendor credit reporting, you can move on to store credit which is credit cards from stores such as Chevron gas station, Shell gas station. They offer fleet credit cards to new businesses. You can also get store credit at Walmart, Costco, Dell, and lots of other businesses.
Even Amazon offers business credit cards now to newer businesses. And then you'll be able to move on to cash credit cards like Citibank, Chase, American express, Capital one, etc, etc. Again, business credit cards not personal credit cards. These credit cards will not report on your personal credit report. They will report either to nowhere in some cases or to a business credit bureau.
The great thing about it is you can use those credit cards as you please without your personal credit score being affected up and down as you use them. It's amazing and it's life-changing for your business.
Imagine what you're going to be able to do in your business now that you have all of the money to fund your inventory, buy marketing, pay for ads and things of that nature. You can really grow your business quickly with business credit.
I'm a living example. Final step, the final, final step is go in and check your credit report. Yes, you are going to have to pay a small fee. I think at the time of me making this video, it's around $20 to check your Dun and Bradstreet business credit report. But you need to check to make sure that the tradelines are reporting.
If you are confident that they are reporting, you don't necessarily need to pay the money. But I strongly suggest pay the little bit of money and check out your credit report at least a few times a year to make sure that your trade lines are reporting and to see what your paydex score is. Dun and Bradstreet has what they call a paydex score.
And this is similar to their version of your fico score in the personal credit world. A paydex score over 80 is an awesome paydex score. And I have students that have gotten that credit score in a matter of months, okay? So, this is something that you can do.
It's being done every day and i want to make sure that you do it too because there are a ton of benefits. And this will unlock hundreds of thousands of dollars for you and your business and make sure that you're successful. Okay, guys. I have given you a full lesson. Hopefully,
I have not overloaded you with information because I want to make sure that you have all the information, all of the knowledge, all of the tools, and all of the resources that you need to be successful. I've literally created an entire free course for you also.
So, please check it out at noellesfreetraining.com. Again, that's noellesfreetraining.com. It's a full course that I've made just for you. This is Noelle. To your success.