ASSETPROFILE GROUP, LLC

CORPORATE CREDIT

BUILD CORPORATE CREDIT

WHAT’S NEXT?

MAKE YOUR COMPANY ELIGIBLE FOR FUNDING. CHECKLIST:

INSTRUCTIONAL VIDEOS

INSTRUCTIONAL VIDEOS TO BUILD BUSINESS CREDIT

HOW TO OPEN BANK A ACCOUNT FOR YOUR COMPANY.

HOW TO FOREIGN FILE YOUR COMPANY

SET UP YOUR BUSINESS ADDRESS, FAX AND PHONE TO BUILD BUSINESS CREDIT

HOW TO BUILD BUSINESS CREDIT TO APPLY FOR A BANK LOAN

WHERE DO YOU APPLY FOR BUSINESS CREDIT? EXAMPLES?

CREDIT LINE HYBRIDS.

NEVADA CORPORATIONS & NEVADA LLC’S

Credit Lind Hybrid Program

The Credit Lind Hybrid program is an alternative lending source for businesses which is far easier to qualify for than other traditional and alternative lending programs and can be a tremendous asset to your business for several reasons. You can get a SIX FIGURE credit line at zero% interest even if you have a startup business, have no cash flow or collateral, have credit issues, and if your business is in a high-risk industry. You can get a credit line hybrid even if you don’t qualify for any other kind of business financing.
working capital
With a credit line hybrid, you can get up to $150,000 in “working capital,” which means you can use it for any purpose. Approval is determined by the highest credit limit you have on your credit report at the time of application. Typically, you can get a credit line hybrid for five to eight times that amount. It’s unsecured, so no collateral is required.
hybrid credit lind programs

documentation

No documentation, such as bank statements, income verification, or tax returns, is needed. You will get the funds at 0% interest for six to eighteen months.

credit lending programs
financing

hybrid of credit cards

This type of financing is a hybrid of credit cards and credit lines. With credit cards you can get a 0% rate, and with credit cards, you can get cash out. With the credit line hybrid, you have access to both these features simultaneously. In addition to this, you’re also building business credit in the process, which is a huge benefit. You can get five to eight lines; many of these report to business credit reporting agencies. And the more accounts on your business credit report, the more fundability the business will attain.

FICO score of 680+

good personal credit

There is only one main criterion for approval: good personal credit (FICO score of 680+). Ideally, your usage-to-limit ratio should be less than 40% and you should have fewer than six inquiries on your credit report. If this is not the case, you can still get funding, just for a lower amount. Alternately, you can get approval with a guarantor. Even with poor credit, you can be approved if a family member is willing to be a guarantor. Because credit line hybrids only report to business credit reporting agencies, there is no risk to the guarantor’s personal credit score.
Funding for any Business

funding

The credit line hybrid program can be a tremendous source of funding for any business, especially for those who do not meet the qualifications for traditional or other alternative funding sources. Credit line hybrids allow your business to obtain the funding it needs for growth and success while assisting you with building necessary business credit in the process.

THE FICO SBSS SCORE.

Small Business Scoring Service

FICO SBSS

The FICO SBSS (Small Business Scoring Service) score is a business credit score issued by FICO to give lenders a more accurate way of determining the risk of business credit applicants. It brings different credit scoring criteria together into one and is calculated as lenders want it to be calculated. Your FICO SBSS score may differ among lenders because the information is customized to each lender’s standard of criteria.
fico small business score providers
high fico sbss score
scores ranging from 0 to 300

high FICO SBSS score

SBSS, with scores ranging from 0 to 300, takes both consumer (personal) AND commercial (business) credit into account. Most lenders give more weight to business credit, so without business credit, you can’t even get a SBSS score. You need to establish and maintain business credit with Equifax, Experian, and Dun & Bradstreet. With a high business credit score you have the best chance for a high FICO SBSS score. The better your consumer and business credit scores are, the higher the SBSS score will be.

SBA lenders

SBA lenders, which offer the longest-term financing with the lowest rates and payments, require at least a score of 140-160 to qualify for their programs. Knowing and controlling the score will help you maximize your business’s fundability, which ensures business growth and success.

business credit

Be sure to consider other factors that affect and drive business credit, such as length of time in business, number of employees, and profit and kind of revenue the business generates. Collections, lawsuits, and judgments on public records will have deleterious effects on your credit.

credit portfolios

By building solid personal and business credit portfolios, you can attain an excellent FICO SBSS score, which will afford your business many more funding opportunities, especially when utilizing traditional lenders such as SBA.

THE PROCESS OF BUILDING BUSINESS CREDIT.

solid business credit portfolio

good personal credit

In addition to good personal (consumer) credit, a solid business (commercial) credit portfolio gives your business greater borrowing ability. In order to get business credit, you must have one of the 3 Cs – Credit, Collateral, Cash Flow. A business with little to no accounts on its business credit reporting portfolio will be issued a failing credit score, causing it to be construed either as unestablished or facing imminent bankruptcy by lenders, which makes it nearly impossible to get funding. The more accounts that are listed on a business credit report, the higher the recommendation that business will get for credit.
business credit
It is a continuous undertaking that requires constant attention; you must keep building upon its foundation and fortify it as the business expands and becomes increasingly lucrative.
build personal credit portfolio
business credit portfolio

Building a business credit portfolio normally takes years, but it is possible to accelerate this process through determination and tenacity.

Develop a Business Credit Portfolio

Follow this seven-step process to develop a business credit portfolio and maximize your business’s ability to obtain the funding necessary for its growth and success:
portfolio for business funding

1. FUNDABILITY
Begin building a foundation of fundability by setting up the business properly: name, address, phone/411, EIN, NAICS code, web site, e-mail, business license, and business bank account. Make sure this data is consistent everywhere. Inconsistencies with the business data will significantly undermine your ability to obtain funding. For example, if the business name/address on the credit application doesn’t match that listed with the Secretary of State, the lender will consider the application fraudulent and immediately issue a denial.

2. ESTABLISH BUSINESS CREDIT REPORTS
ESTABLISH BUSINESS CREDIT REPORTS with Equifax, Experian, and Dun & Bradstreet.

3. BEGIN BUILDING BUSINESS CREDIT – TIER 1 ACCOUNTS
Open accounts with “starter vendors” that you are certain report to the business credit reporting agencies mentioned in step 2. (Otherwise, you’re wasting your time with non-reporting accounts that do not build credit.) Consistently pay these accounts early or on time to establish a business credit foundation.

4. MONITOR REPORTS

Get credit monitoring to determine how many accounts you’ve amassed on your business credit report. Be sure to check it regularly. Also monitor your business’s value as it grows so you can determine how investors will perceive its solvency and creditworthiness.

5. TIER 2 ACCOUNTS

Once you’ve established five Tier 1 accounts, begin to establish retail credit from places like Staples, Lowe’s, Walmart, Amazon, etc. Use these to purchase supplies and materials for your business. Pay on these accounts early or on time as well. This will strengthen your business credit portfolio.

6. TIER 3 ACCOUNTS

After eight accounts appear on your business credit report, open fleet credit accounts with Sunoco, BP, Chevron, etc. Utilize these cards to purchase gasoline. Paying these accounts timely will further fortify your business credit.

7. TIER 4 ACCOUNTS

With fourteen accounts on the business credit report, your business will have built enough credit to qualify for bank credit, such as VISA, Mastercard, and American Express. This type of credit is the most difficult to get, and it gives your business optimal spending power for the materials, equipment and supplies it needs to grow and succeed without sacrificing or restricting cash flow.

expound business credit portfolio

Continue to further expound on the business credit portfolio you’ve built. Use your business credit as leverage to get the best rates and terms for other financing, such as business loans and lines of credit from either traditional or alternative financing sources. A solid business credit portfolio is a tremendous asset which will maximize your business’s fundability and chances for success.
enhance business credit portfolio

AUTHORIZED USERS AND COSIGNERS.

NEVADA CORPORATIONS & NEVADA LLC’S

business owner’s credit

When a business owner’s credit is insufficient to obtain business credit on their own, an authorized user or cosigner may be utilized for this purpose. But which is better, an authorized user or a cosigner? It depends upon your goal. Do you need to access funding, or to access a credit account and build business credit simultaneously? Is your business new? Is it lacking collateral?
business account
The benefit to this is that you can get funding using someone else’s credit if your own is lackluster. Nowadays, an authorized user doesn’t even use the account; their purpose is to assist the applicant with getting approval and improving their overall credit profile.
authorized users and cosigners

authorized user

An authorized user is an individual added to a business account (normally a credit card, tradeline, or line of credit) belonging to someone else, and thus is given authorization to use the account.

personal credit

FICO

With FICO (personal credit), 80% of the score is made up of payment history (35%), utilization (30%), and length of credit (15%), so an authorized user can experience improvements to their own personal credit, which leads to them being able to open additional accounts. Serving as an authorized user on a consumer account will not help an individual build business credit, however. The payments report to the account holder’s personal credit, and any benefits the authorized user receive will be to personal credit.

personal credit planning
tradelines caveat

TRADELINES

Here is a caveat regarding tradelines: Businesses will sell tradelines to companies claiming they’ll be able to get accounts rapidly that report to business credit and will build the business credit score quickly. However, this really does not work because creditors will look at how long those tradelines have been in existence and will discover that you bought them from a company.

PURCHASE TRADELINE

When you purchase a tradeline, you’re paying to become an authorized user on someone else’s account, known as piggybacking, which is considered a deceptive practice. It doesn’t indicate the creditworthiness of the business. You will reap no benefit from this at all because you don’t even have access to the account, and it is considered fraud.

STOLEN IDENTITIES

Some companies selling tradelines use stolen identities, so by buying tradelines you could be piggybacking from someone who is unaware of this, or even a deceased individual. Lenders and credit reporting agencies know all the tricks and will scrutinize new authorized user accounts.

Dun & Bradstreet

When Dun & Bradstreet discovers you purchased a tradeline, your business credit portfolio will be flagged. You will lose whatever business credit you gained and will have to begin the credit building process over again. You will also be out the money you spent purchasing the tradelines. It is prudent to avoid tradelines altogether.

Authorized users

Authorized users in the personal credit world are perfectly legitimate, however. Someone with great credit can allow an authorized user to improve their own personal credit score. For example, a parent with good established credit can allow their young adult child to serve as an authorized user, and the child will benefit from the parent’s payment history, length of credit, and credit utilization.
Cosigner or Guarantor

cosigner

A cosigner, or guarantor, is an individual who signs on to a credit account they do not own, thereby essentially agreeing to pay the debt if the owner does not. A business cosigner is typically associated with the business.

A cosigner helps a business owner to get a business credit card or line of credit for which they would not otherwise qualify, because the lender is assured that the cosigner will pay if the business owner doesn’t. Cosigners simultaneously allow a business owner to get funding and build personal credit. However, this will not help build business credit unless that account reports to business credit reporting agencies.

utilizing a cosigner

The practice of utilizing a cosigner should only be a steppingstone for business credit building. If the account reports to business credit reporting agencies in your business’s name, then your business credit score will benefit. In this way, a cosigner is a legitimate means to attain approval for business accounts. This practice is NOT considered deceptive. It can help build a strong business credit profile, thereby placing you in a better position to get funding without a personal guarantee, eliminating the future need for a cosigner altogether. At this point, the business will be able to obtain funding on its own merits and creditworthiness.
Valid Alternative is to use Credit Partners

valid alternative

A valid alternative is to use credit partners, business partners possessing strong credit which allow a business to get credit approvals based upon their creditworthiness. Often, these report to business credit reporting agencies, and the business receives the benefit.
There are benefits to utilizing authorized users and cosigners to assist with obtaining business or personal credit. Which you choose ultimately depends on the goals you endeavor to achieve.

business partners right alternative