What most bank don’t want you to know about business credit?

BUSINESS CREDIT SERVICE: https://getfundedprogram.com/business... APPLY FOR LOAN: https://getfundedprogram.com/ Sing up for Salesforce Business Analyst training: https://sfbatraining.com/ Business credit is the ability of a business to qualify for financing without having to use the owner’s personal credit. Businesses have credit reports and scores just like people do. Business credit bureaus Dun & Bradstreet, Experian, and Equifax all keep a record of debt payments and other credit information on businesses. When done properly, you can get business loans without supplying an SSN on the application. This means there is no credit check from the business owner for approval. This also means that anyone who has bad, even horrible personal credit can still get approval for business credit. Business credit reports to the business credit reporting agencies, not the consumer reporting agencies. As business credit is used it has no adverse impact on the owner’s consumer credit because it’s not reported to consumer agencies. This means using the account, even over 30%, won’t have any adverse impact on the personal credit scores. And there are no inquires on the personal credit when you apply for business credit as long as you don’t supply your SSN. 30% of your total consumer credit score is based on utilization, so if you use your personal credit to get credit cards for your business and if you use those cards you will lower your scores. Using more than 30% of your limit WILL result in a score decrease If your limit is $1,000, a balance above $300 lowers your scores. This means 40% of your total score is damaged just by applying and using the credit you get with your consumer scores. True business credit affects 0% of your score. 10% of your total consumer credit score is based on inquiries, so if you are using your personal credit to apply for business loans and credit, your scores will go down due to those inquiries.15 Those inquiries can stay on your credit for an extended period of time affecting your ability to borrow more money. And some unsecured business lending sources won’t lend you money if you have two inquiries or more on your personal credit reports within six months. But with business credit, the credit doesn’t report to the consumer agencies, so neither inquiries nor utilization have any effect on your consumer credit scores. This is one more reason every successful business has business credit. The main credit score used in the business world is known as a PAYDEX score provided by Dun and Bradstreet. This number assess a business’s lending risk much the same as a consumer credit score reflects a consumer’s individual credit risk. The exact definition from Dunn & Bradstreet, or D&B is: The D&B PAYDEX® Score is D&B’s unique dollar-weighted numerical indicator of how a firm paid its bills over the past year, based on trade experiences reported to D&B by various vendors. There are many BIG differences from a business PAYDEX credit score and an individual FICO credit score. Consumer FICO credit scores range from 350 to 850. The PAYDEX Score ranges from 0 to 100. 100 is the highest score you can get. Having a PAYDEX business score of 80 or higher is very good. It means prompt payments. Individual credit scores are calculated based on a number of factors. The PAYDEX score is calculated based on only one single factor, whether a business makes prompt payments to its suppliers and creditors within the agreed upon terms of payment.

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