Business Credit Without a Personal Guarantee

Personal Credit vs. Business Credit

Now I found out that there were two types of credit lines. There were personal credit lines that is credit lines established in my name and Social Security number. And there were business credit lines that were you know, credit lines established in my company name and my company’s tax ID number. So I want to compare and contrast a few factors when you apply for credit lines under your name versus when you apply for credit lines under your business. And those factors are your credit score, credit inquiries, unsecured debt reported on your personal credit report. This is very important. I’m going to discuss this further in just a few minutes. And finally, the credit limits.

So let’s now talk about those factors when you apply for a personal credit line. Okay? A lot of you applied for credit cards so you know what I’m about to explain to you. But basically, they decide whether they’re going to approve you based on a few factors. The first is how you pay your bills. Okay? If you pay your bills on time, your credit score stays high. If you’re late or you default, your credit score drops a lot.

Credit inquiries

Every single time you apply for a lending product, a credit card or mortgage, an auto loan, you name it. The banks pulls a copy of your credit report and when they pull a copy of your credit report, it’s called a credit inquiry. And every single credit inquiry lowers your score a few points. Now a few points may not seem like a lot but a lot of the applications or a lot of inquires times a little equals a lot because a lot times a little equals a lot.

Finally, unsecured debt reported on your personal credit report. When you get a personal credit line and you start to use that credit line, as soon as your balance is 50% of your credit limit, your credit score is going to drop about 30 points per account. So if you have a credit card and the credit limit is $50,000.00, as soon as your balance exceeds $2,500.00, you’re going to see your credit score drop about 30 points, and when it gets to the maxed out, when it hits 5,000, it’s going to drop about 60 points. So imagine having three credit card accounts and your score drops between 30 to 60 points per account, and you can see how quickly personal credit cards or personal credit lines could kill your credit score.

Credit limits

When you get approved for a credit card, most people get approved on average between $1,000.00 and $5,000.00 as initial credit card limit. Now some of you who have longer credit histories and have higher credit limits that you served that the banks can see, they may give you higher credit limits initially but for most people, the average is between one to five thousand dollars.

Now, let’s compare those same factors when you apply for a business credit line. Okay? And again, business credit lines I like a lot because they’re quick, they’re inexpensive and most importantly they put me in control. They’re quick because I can access the credit cards or the credit lines under a business. As soon as I can grab a check from the credit line, deposit it in my account and the check clears. They’re inexpensive because most of the credit lines are at 0% interest and the few that have an interest rate you know usually range no more than 10%. But most important again they give me control. I have access to the money when I need it and I can use it how I want to use it.

So let’s now go back to those same factors that we just spoke about when you apply for a personal credit line and let’s talk about how it applies when you apply for a business credit line. First of all, you can set up a separate credit file for your company. That’s separate and apart from your personal credit file. So if you have late payments and bankruptcies and judgments and you name it, none of that will appear on your business credit report because your business credit report is how your business pays its bills, not how you paid your bills. And when you apply for a business credit line, the banks are going to pull a copy of your business credit report.

Now guess how many points a business credit inquiry affects your credit score. Zero. That’s right. I said zero. And in this context, zero is a good number. The other thing which is very key to understand is the unsecured credit lines that you get do not appear on your personal credit report. So there’s no way that your personal credit rating is ever going to come down one point when you get a business credit card or a business credit line because these credit lines do not appear on your personal credit report. This is key to understand. This is very key to understand. You can aggregate a lot of credit because your credit score is never affected when you get any business credit lines whether you get one line or two lines or 20.

Finally, the credit limits. Most of your credit lines are going to get between $10,000.00 and $50,000.00 per account which is obviously a lot more than one to five thousand on a personal credit line.

So let’s use a theoretical example of this. Let’s say that you go to five banks and you apply for credit lines under your name personally. And let’s say you get approved for 5,000 at each bank that you go to. So you get a total credit limits that you can use of $25,000.00. But now let’s look at the consequences to your personal credit score as a result of these five approvals. First you’re going to have five inquiries so your credit score is going to drop about 20 points. And let’s just assume that you don’t max your credit cards out but you maybe you know, use them up to 50% of your limits. Again, you have a $5,000.00 limit per account so each account goes up to 2,500. Your score is going to drop 150 points. So in total, your credit score is going to drop 170 points as a result of getting five approvals at 5,000 each.

Now imagine if you go to a sixth bank or a seventh bank, you think you’re going to get approved? Probably not. Most likely not because when your score drops 170 points, no bank is going to approve you for any more credit cards for quite a long time.

Now, let’s change one variable. Let’s say you go to those same banks and you apply for the same product. You apply for a credit line except the only difference is you apply for a credit line under your business. Now let’s say you get approved for $50,000.00 at each bank that you applied for a credit line so at the end of the day, you wind up with $250,000.00 in business credit lines. Now let’s look at the consequences of your credit score from this. First you’re going to pull your business credit inquiries so it’s going to reduce your credit score zero points. And because these credit lines do not appear on your personal credit report, your personal credit score will drop zero points. So the net effect is you get $250,000.00 in credit lines under your business as opposed to 25,000 personally, and your credit score drops zero points under your business as opposed to 170 points personally. So if you need to get more money and you go to a sixth bank or a seventh bank or a tenth bank, you’re going to get approved just like you got approved for the first five. Why? Because your personal credit rating has not suffered at all as a result of getting these first five lines in this example.

Does BCA lend or broker money?
No. We coach and train you to get business credit on behalf of your company.

How does your program work?
We coach and train you to get business credit on behalf of your company using a “No-Documentation” approach i.e. without having to rely on tax returns and similar documents. Our monthly coaching and training program is $197/mo and consists of access to written and audio lessons, two group coaching calls per week, and unlimited email support via our Support Ticket system.

How long does it take to get business credit?
It takes our clients 3 – 6 months to get business credit. However, most clients are NOT serious business owners and are looking for a “get rich quick scheme” and thus quit our program before they can get any business credit.

We offer add-on and upgrade services as well to our monthly $197/mo coaching program. You can get more information on our additional services by registering above.

What are the terms of your coaching program?
When you sign up for our coaching program, you pay $6.97 for the shipping and handling of the Free CD.

You agree to a 30 day free trial of the monthly group coaching program in conjunction with ordering the Free CD. You agree to be be billed $197/mo after the 30 day free trial of the monthly group coaching program which includes online training and group coaching calls and that you can cancel at any time.

You get a “60-day money back guarantee” to get a full refund of the monthly group coaching fees if you are dissatisfied for any reason from the date of ordering the Free CD.

If you choose to request a refund in conjunction with the policy above, you agree to request a refund in writing.

How do we help you build a business credit profile with Dun & Bradstreet?

  • Business Entity Verification. We will make sure your current business is set up correctly for you to get approved for business credit. Don’t have a business? Don’t worry. If you don’t have a business, we will show help you set one up so we can get you approved for up to $30,000 of business credit in 30 days.
  • Business Credit Bureau Registration. We have clients that come to us all the time that tried to do this on their own. You should NOT call Dun & Bradstreet on your own because you will not properly register your company. Don’t cost yourself thousands of dollars and months of time. Let us get you set up with a DUNS number the right way the first time.
  • Business Vendor Accounts. We will research and get you approved with 4 – 7 vendors that will extend credit to your business and report your purchases to D&B so you can build your Paydex score. We will facilitate the purchases of products / services that will help you build a positive business credit history.
  • Business Office Listing. We will get your business properly listed online so that you have the proper professional presence that helps you to get approved for business credit.
  • Business PAYDEX Score. We will monitor the reporting of your vendor payment history to make sure you are building your PAYDEX Score to 80 (even if your personal FICO score stinks).
  • Business Credit Applications. We will identify 3 – 5 credit cards for you to apply to for your first round of applications. We will assist you with the application process all the way through approval.

Is the program “guaranteed”?
No. We cannot guarantee you will get business funding. However, we have a 60 day, 100% money back guarantee with our Monthly Coaching and Training program.

Can I get this business credit with little or no effort?
We coach and train you to get business credit on behalf of your company using a “No-Documentation” approach i.e. without using tax returns.

Bad credit is OK. Start-ups are OK. Serious business owners only.

It takes our clients 3 – 6 months to get business credit. However, most clients are NOT serious business owners and are looking for a “get rich quick scheme” and thus quit our program before they can get any business credit.

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