Our Philosophy
Our philosophy is the think like the BANK. We think like the credit grantors!!! Developing corporate, banking relationships and thinking like the BANK-LOAN APPROVALS
We base our decision on the same decision that a bank will make in granting you a loan. We want to put your company in a position to get immediate access to capital for your business needs. We look through the eyes of a BANKER.
Bankers look at several things when granting a business credit. Here are a few items
-personal credit scores of the company owners(anyone tells you otherwise either represents MICROSOFT or is lying to you)
- CORPORATE CREDIT-Can this business pay us back? Have they paid other creditors back?
- Type of business-Laundromat, pizza shop, car wash etc...banks lend money to corporations that can make money.
- Type of corporate structure-LLC, S-corps, C-Corps etc....
TREAT YOUR PERSONAL CREDIT LIKE GOLD.
No matter what anyone else tells you, your personal credit will always be evaluated when applying for any type of business financing. The better your personal score, the less your business credit is looked at. The worse your personal credit score is the more the bank will look at your business credit score. The failure of business owners to separate their personal credit from the business credit by increasing their personal revolving debt ratios, which lowers their FICO scores, raises their rates and will close all doors to any business loan.
Personal Guarantees
The better your personal FICO scores the less chance of a personal guarantee. The better your business credit score, the less chance of that personal guarantee as well.
Building corporate credit is a process that should be established over time. The older the business, the more options the business will have to build credit and obtain loans and leases without the use of personal guarantees. It is not easy to do this, but it can be done – and we can help you. The first step to a great corporate credit rating is to start building the business credit today.
Our programs can shorten the average time it takes to build corporate credit from 3 to 4 years to ONLY 9-12 months!
We will be able to separate your credit from your business’ credit – even if you have a startup company or you have just incorporated.
What is Business Credit and How Does It Work?
Dun & Bradstreet (D&B) is the leading “business credit” reporting agency in the U.S. When lenders and suppliers consider your application for a loan, lease or credit terms, they will usually look at your D&B Report…and the first thing they will look at on this report is your Paydex score. The Paydex score is a numerical measure of your business’ creditworthiness that is calculated based on your trade references’ reports to D&B of how your company has paid its bills over the past year. A high score on Paydex’ 1 to 100 scale indicates that your company pays its bills on time. To obtain approval for financing you generally need a Paydex score of 75 or greater.
Ideally, your business should have at least 5 trade references (i.e. vendors that extend credit to your business) that have given you a credit account and reported a favorable credit history to D&B. Our corporate credit program will help you get these trade references in order to build up your favorable credit history.
Advantage of Having a Business Credit Profile
Just by building a business credit profile you will be able to limit the use of your personal guarantee and build business credit regardless of your personal credit history.
The following is a list of conveniences and advantages you will have available because of your Business Credit profile.
- You will have more cash for the business
- Convenience in purchasing
- Protection of your personal assets from that of the business
- Limit your personal liability from the business
- No need for personal credit checks
- Purchase vehicles with no personal guarantees
- Purchase equipment, computers and more with your business credit
- Preparing your business for future lending needs
