Consumer Credit Vs Business Credit
Consumer credit is tricky. If you use too much, you are penalized. If you use too little, you are penalized. If you ask for credit, you are penalized. Paying it back early will often result in it not being added as a positive event. Miss a payment? You’re screwed for 2 years. Buying a car? Mortgage? Credit card? Each one has their own scoring system designed to charge you the most interest possible. Once you figure out the game, then they limit you to how fast you can get new credit! It’s such a convoluted game.
Business credit on the other hand is pretty simple. The more you use it, the bigger your lines get. The more you ask for, the more you get. The faster you pay it back the better your rating is. Simple, easy!
How to Get Business Credit
Business credit, like personal credit looks for certain indicators of actual business operation. Here are some of the factors that are checked:
- Dunn and Bradstreet Score
- Secretary of State Information
- Real Business Address
- Website
- Dedicated Business Phone and Listings
- IRS Information
- Officer Information
- Officer information credit scores
If you do not have the right things setup (and the right way), you will be denied business credit. However, if you understand how to setup business credit huge lines are possible without a personal guarantee even.
Want Assistance Getting Business Credit?
We recommend Ty Cohen’s system. It allows us to get six figures of credit and really opened our eyes to the business world.