How many times have you filled out business credit applications, and had to use your personal credit to get approval? Did you know that businesses have a credit report all of their own?
This week on Intrepid Entrepreneur, Ty Crandall of Credit Suite is sharing the secret to applying for and building your business’ credit, and how to keep your personal credit out of it.
He’s explaining how to get your business ready to apply for credit, and where to go first to build this credit. I’ll give you a hint: it’s not the bank. We’re also digging into the benefits of working on business credit instead of personal credit. As Ty says, “Anybody can bootstrap a business, it just takes longer.”
There’s so much important, practical business information in this episode, so get ready to take notes on this one!
Bravery in Business Quote
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- Ty Crandall, owner of Credit Suite, a company that helps entrepreneurs build a credit report for their business.
- People don’t realize that their business have credit and a credit score because no one talks about it or teaches them how to start building this credit.
- A lot of businesses qualify for financing, but don’t know where to get it since bank loans are often the most rigorous to obtain.
- Anybody can pull your business credit report without permission. For personal credit, people need permission but business information is public.
- It doesn’t take much time to get your business credit started. But it takes more time to build your credit, fill out applications, etc. Just like personal credit, business credit grows and changes with the business.
- If you have the business credit, you won’t need to ensure your business’ finances with your personal credit, but can rely on the company’s EIN and credit score to get financing. It’s a great way to protect your individual finances.
- Business credit can speed up the start time of your company, because it gives you access to more funding and makes your business more credible. You can finance everything with your own credit, but it takes longer.
- Crowdfunding can require a lot of money upfront. A lot of successful crowdfunding drives come into it with a lot of backers and financial support and are using the campaign as more of a PR event.
Steps to Building Business Credit
- Get your business credible on paper. Need: website, email address, address, phone number, specific to your business even if you work from home. Make sure every line on an application
- Go to “secret” vendor sources that will give credit to your business. They will give you credit even when you have none, and will report it to business credit reporting agencies so you can start building your credit. Take that to major businesses/retailers to apply for business credit cards.
- Start leaving out your SSN on applications. Leave that blank so that they will have to start pulling your business’ EIN to check business credit instead of personal credit.
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