Build Business Credit with EIN

hello everyone and welcome to our weekly our our webinar today that we're going to be going over how to build credit for your EIN that is not linked to your SSN I'm glad you're able to make it today we're going to dive in we're going to talk about business trade we're going to talk about how your company can build its own credit profile and score that is completely independent and not linked in any which way or form to your actual personal credit score so we're going to dive in we're going to dissect that I set this process we're going to talk about what business credit is the benefits I always like to start my webinars jumping into a little bit of that and then we're going to jump in and look at the actual steps where you're actually able to do this for yourself so Before we jump in too far and get started let me first introduce myself my name is ty crandall I'm actually the director of business services here at credit suite what I do is help companies offer business credit to their companies so you probably heard about me before or seen some of my stuff if you at all research business credit I'm all over the place in social media and I'm on radio interviews all the time and TV and I've got books and yada yada yada so I'm everywhere when it comes to business credit bottom line is I know something about the topic I personally oversee multiple divisions where we've helped thousands and thousands of clients build business credit it's what we do so in today's webinar what I'm going to do is teach you how to do the same thing there's no pitch at the end there's no sale at the end you won't hear me sell anything during this webinar the whole purpose is just to teach you how to do this process whether you're doing it for yourself whether you're doing it for your customers at the end of this webinar you're going to exactly how you can build credit for an EIN number that is not linked to your social security number so let's go ahead and jump in and get started first of all let me talk a little bit about what business credit dance I always like to start my webinars this way because 90% of the population does not know what business credit is they're not familiar with what this is so what we're talking about today is we're talking about business credit also known as corporate credit this is credit that is linked to your EIN it is credit that is established in so for your actual corporation for your company okay now this credit is business credit that is built based on the businesses qualifying criteria so what's happening is the business itself builds its own credit profile and score not the business owner and this business credit profile and score is not linked to the business owners so with an established credit profile score the business can then qualify for credit in reality a business can qualify for really similar credit that want your use to qualifying for on the consumer side okay a can qualify for credit cards you can qualify for loans for credit lines even for Auto vehicle financing for mortgages business credit can be used to qualify the same as consumer credits used to qualify for those things now this credit is again in the business name and it's based on the build business abilities to pay so what we're talking about here is a business paying it's built not the actual business owners let me give you a huge example Bill Gates okay when Bill Gates those two get credit for his company they don't make him personally guarantee it they don't obviously pull his personal credit he's built his credit to a point established to credit for that company enough where the credit for Microsoft can stand on its own so when that company goes in to apply for financing it's the company's CIN it's the company's established business credit that is used to determine whether it gets approved and the amount of credit it gets approved or not the actual business owners okay but here's the tricky part most people listen to that you might say well wait I of course that's Microsoft no no every company can do the same thing see that's where people get tripped up people think that this credit that only is linked to the company and not the individual is just for really big companies Facebook Microsoft Google but that's not the case at all those companies just have CFOs they have financial people that are smart enough to understand business credit and build the credit of the company ok the same thing can be done even with a one-person shop even if they're working from home can still build that corporate credit can still build the business credit that's based on the business's ability to pay again not the business owner so what's happening here since the business itself qualifies for credit then in some cases I say you're but in reality in most cases there is no personal credit check required from the business owner one of the real beauties of what corporate credit is one of the beauties of what business credit is one of the beauties of building credit linked to an EIN is that when you build credit linked to your EIN there's no reason for them to pull your social security number they don't ever look at your personal credit to actually of determined to actually determine your approval to determine how much you're actually approved for hopefully I had a volume issue in a mute issue so hopefully I didn't affect anybody there but when it comes to business credit you're talking about again credit that is based on the business's ability to pay not the actual business owners so if you think about it you've never went in and applied for consumer credit before and then tell you they have to pull your business credit to improve you right I'd be weird imagine going in to get a car loan and then go well sir there's one more thing we need to do we need to pull your business credit to see if you're going to qualify for this car loan you look at them and go back we're why would you pull my business credit I'm buying a car for myself well guys it's the same thing in the business world there's no reason for them to pull your personal credit when your credits built for your business so that again is one of the beauties of business credit is that when it's bill the business qualifies for the credit so the personal credits never even looked at now the business can then again as I said use its credit or credit card store credit cards for Visa MasterCard American Express cards can qualify for loans lines of credit really the business can qualify the exact same kind of financing that you're familiar with being able to qualify for on the consumer side so what's the benefits there's a long list of benefits in the corporate world but before I get into them let me say this is what I got in business for you know when I was young kid I thought and the sauce of getting business you have this idea and then you start the business and then people give you money and you become really rich and successful right well then you get in business and a lot of people quickly realize that's not the case even though you have a business they're asking for your social security number you're putting up your personal guarantee but in reality that absolutely is the case you can start a business use other people's money to grow the business when you know how to do it the right way that's the benefit of business credit it's also one of the benefits of being a business owner so let's dive in and dissect that a little bit more get to a little bit more of the specific benefits so what we're talking about here is a credit profile that's built for a business that's completely separate from the business owners personal credit profile what do I mean by that simple you don't even put your social on the application that's what I mean I mean your business applies you leave the social security number field blank and they don't even pull your credit they don't even look at your credit when issue you approval it's again credit completely linked to your business so what happens here is it gives you double the borrowing power now you're in an environment where you have staples credit card for to grade on the personal side and now you have a staples credit card for $2,000 on the business side so now that you literally have two credit profiles to use you have double the borrowing power you can build your personal credit profile and use it for all of the money and the credit that you've always used it for you can also build this corporate credit profile and use that corporate credit profile to obtain even more credit and money that you didn't have access to before easily doubling your borrowing ability now business credit scores are based on only whether the business pays its bills on time so business can obtain a credit much faster using their business credit profile versus their personal credit profile let me give you a quick run down a time frame here in the consumer world to get a FICO score you need trade minds with history of six months period so you first started your credit profile it took at least six months for you to first get a credit score okay it takes most people years of discipline borrowing to get good scores because good scores are based on your mix of credit history and your length of credit your mix of credit and the length of credit history and your inquiries there's so many factors on the consumer score world it takes years and years to get a really good solid score but in the business world those are business scores are based only on how the business pays its bills so all you have to do is get credit have reports pay the bills on time and you immediately have a good score and you can have your first score in 30 to 90 days so with something that takes you months and years in the consumer world to do with the business growth you can do in a matter of 90 days or even less pay approval limits on business credit are also much much higher than personal credit accounts per SBA I think they give the best analysis when they say that credit cards in the business world are approved that ten to a hundred times the limit of the consumer rule Wow so I guess it was a little off because earlier I said you could get a staples credit card for two thousand in the consumer side and get one the business world for two grand realistically what would happen is if you had a two thousand dollar consumer credit card with staples now then in the business world you probably get three four thousand dollar limit so your limits in the business world whether it be on a regular Visa Card whether it be on a loan whether it be on a store credit card are significantly higher as much as hundred times higher than in the considerable again that statistic doesn't come from me that comes from SBA themselves so another benefit of business credit one of the main benefits is that when done correctly there's no personal credit check it can also be obtained regardless of personal credit quality now people hear this they get skeptical but again doesn't it make sense if somebody looks at the credit for your corporation and they see ten trade lines accounts pages agreed a good credit score then they're going to approve you for credit it's as simple as that there's no reason for them to look at your personal credit now a lot of people get confused here because they don't I look I went to Staples and I applied for staples with business credit card and they didn't give it to me business credit doesn't work well let me tell you a lot of people experience that they usually mess up in two ways first of all they put their social security number on the application and if you want real business credit you have to believe the social security number blank and secondly they go to places like staples and try to start their initial credit well guess what staples won't approve you for initial credit in the consumer room or the business world which mean if you didn't have a personal credit report built and you went into staples and said give me credit they wouldn't give you credit but if you went into staples you have two secured credit cards reporting on your personal credit profile staples would give you a car what's the same thing in the business world if you go to Staples initially they're not going to approve you for initial credit but if you have two or three trade lines you went to Staples and left your social security number blank bingo now they'll approve you for actual business credit without the personal guarantee and without the personal credit check the key is to leave the social security number field blank and to have some initial credit reporting which I'm going to teach how to do in this webinar so you have the initial trade lines for them to approve you so another benefit of business credit is most business credit be obtained without the owner taking on the personal liability or guarantee this means in the case of the full the business owners personal assets can't be pursued man people are Snowbowl on this topic they think that because their debit card or credit card has their business name that they're not personally liable and let me assure you it's a hundred percent bogus okay almost everything most people have for their business they sign as a guarantor they sign as a signer it's linked to their social even though it has the business name on it they're still personally liable the only way you ever get money without the liability is when your business credits established they go to pull your credit you leave the social security number blank and they link it to your EIN if you have it follow those chain of events then you do not have credit without a personal guarantee well you don't get in business to fail right you're going to be highly highly successful but statistically 95 percent of business owners do fail and the problem there is that if you were then what happens is they come after your home they come out your bank accounts they come after all your personal assets now I did a presentation a couple months ago with the credit boot camp I stood on stage went over some of this material got off stage one of the first persons that came up to me was a collections agency was in tears tears she said ty you're so right she said I'll be honest with ya when people default the business room that very first thing we do when you suck all the money we can suck out of that business as we go after the personal assets and she goes honestly it makes me feel horrible to have to go after and take people's personal assets for things they did years ago in their business but that's the reality that's exactly how we do it you're spot on guys that's the reality of how life is okay something happens to your business which over the last few years we've all seen shifts in the economy they come after the personal asset and they can wipe you out and they will absolutely try to do so this is the benefit of business credit when business credits link to your corporation they can't come after you you're not personally liable for the debt so they can come after your banker they can come after your couple your corporation okay then they can never touch your personal assets that's one of the biggest and most important benefits of business credit and one of the reasons even people with excellent personal credit should still build credit that's not linked to them personally and let's be honest everybody does this right people get in business okay they start a business they have an idea they start funding it using their credit cards their savings account their family and friends money almost everybody it's how they start a business and then you get in so deep that's just how you do business you max out your credit cards you use the money in your accounts and a lot of people get very very bad trouble that way that's not the way things should be from the very inception of your company you could build credit for that company and start getting credit and using credit to grow the company the credit for the company not linked to you personally it's the best most responsible way to do it and the only way you really protect your personal life with your personal assets your family's assets okay so another benefit of business credits when a business owners applies for financing their business credit is reviewed and not having business credit establish who get owner decline for financing hi let me tell you you might not even think about this but I assure you when you go into a bank and you apply for money for your company the first thing they do is all your business credit now you don't know that to be honest most people don't know that one of our senior business advisor that helps coach our business credit customers she was a trainer at Wells Fargo one of the biggest producing small business loan people at Wells Fargo eventually promoted to a trainer as a small business loan originator she had no idea business credit was ever cold until she became a trainer so most people in the banks when you walk in to see him don't even know that they're pulling the underwriting is flowing business credit but they do and the law says they don't have to disclose to you that they do so you don't get any fancy letter in the mail that says hey hey I pulled your credit report and our decision to lend you money was based on this information nope there is no such loan the concern in the business world that dictate they have to send you that letter so they don't so what happens is you go apply for business financing they pull your business credit you're either denied or you get approved for worse terms and you never even know your business credit was a factor but I promise you it is when you apply for money in the business world one the first things they do is pull your business credit and if your business credit is not established you're either going to get denied or you're going to get approved for significantly less money and worse terms that you would have if your business credits established think about it look if you go to get money on the consumer side the first thing they do is pull your consumer credit report right then they terms they lend you money whether or not your fruits based on that credit no different the business world lots based on this so having it is the difference between getting approved you're getting denied and it also determines the kind of terms you're actually receive okay and there are no regulations again that require lenders that notify the business owner for the reason of denial so most never even know this so now let's talk about how to build business credit here I am it's not linked to your social security number we spent the first 20 minutes here talking about what business credit is the benefits why you'd want to do it why it makes so much sense why corporate credit in my opinion the greatest thing since sliced bread now let's talk about how you actually do it okay so there are several steps to actually building business credit first thing you need to do is the first thing where most people fail is in building business credit build but the problem is when you apply for business credit with your corporate CIN the lender doesn't know if you're a one-man shop or a 50 person office and a high-rise in Tampa for they don't know so here's the secret they look at certain things on your application to try to determine the type of candidate you are and determine whether they're going to approve you or how much they're going to approve you for so getting a proof of business credit starts before you even apply as a matter of fact some of the most crucial things you need to do with business credit happen before you ever start applying for credit the most important things and it's building business credibility you must be credible in the lenders mind and a business starts building your credit profile exactly the same as a consumer actually does once they built this actual credibility so the first thing you're going to do to build an actual credit profile is no different than in the consumer side right you have no credit profile you get a proof of new credit reports the business uses the credit pays its bills your credit profile is established you continue to use the credit you get more and more Craig it's exactly the same as the consumer side there but in the business world the first thing you need to do is you need to make sure you're credible because there's going to look for a lot of information on your application to figure out who you are that on the consumer side they really can't do so the perception of these lenders have is literally crucial durability to get approved for business credit and before applying you have to ensure that you meet or exceed these lender standard guidelines it is lending standard guidelines now what we do is we call this internally a 20-point credibility checklist there's a twenty specific points of data that any creditor looks at on your application to determine if you should be approved on the type of terms you should be approved for now one of the first things they look at is your business name it's important that your exact legal business being used including DBAs on all of your documents on your bank statements on your licensing on your corporation papers in 401 everywhere it has to be exactly the same as your corporation papers now this seems very basic but I can tell you from our business advisers that spent years in the banking industry surprisingly they will tell you that one of the biggest reasons small business owners got denied for money was that the lender went looked for the corporation online and they couldn't find them they typed in the information at four one one they typed in the information in Google they looked around and they couldn't find the company so they denied the deal and as one of our business advisors commonly says look they're not going to go dig it around to try to find her info if they look at the name on the corporation and they can't find it you're going to get denied a video it's one of the biggest reasons for denial so you need to make sure that you're a full corporation name including DBAs is listed everywhere corporation papers bank statements it's what you put on the application it's what you put on your licensing for one one it needs to be listed the exact same everywhere so the lender can easily find you corporate entities now here is what's cool about business credit you can do business credit corporate credit for any entity it doesn't matter whether you're a c-corp an S corp or sole proprietorship it doesn't matter now you need to know what these entity types really mean you want to sit down with your accountant and go through the hash that out because a lot of corporation types by default mean that you're liable a sole proprietorship a partnership the way that these work your corporation makes a profit the profits carry over to your personal taxes and you're paying for them on the personal side so literally you will always be liable for your business debts with so profits and partnerships I'm not saying they're bad entities at all I'm just saying you need to know that all credit you ever obtain under those entities you'll always be liable for it's just what the entity is okay but if you use a corporation or LLC you're not personally liable so again you can build credit corporate credit under any entity you just need to know what these entities mean regarding liability and not just do what your account says to do a lot counts don't know about business credit so when you start talking about personal liability it's a gray area they don't even know you're talking about so you need to protect yourself and you need to know that sole proprietorship a partnership these you will always be personally liable for whereas with a Sierra C Corp or LLC you're not personally liable okay an EIN everybody has to have any i if you don't know what an EIN it's your social security number for your business so simple is that your social security number in the United States is the way our government knows you exist an EIN number in the United States is the way outcome our government knows your corporation exist first thing you have to do whenever you get incorporated then what do you link open a bank account without this you have to have an EIN okay now this is important because you're going to learn here in a minute that there's a lot of sources for business credit that you can get approved for initially that will approve you for credit only if you have an EIN and or one one listed only if you have those two things they'll give you money okay so it's very important you at least have those things you have to have an EIN number to get business credit to even be a legitimate corporation one of the first things you have to do is going to be asked for in every single application okay and again it's usually over your bank account a lot of different other purposes that you use actual tax ID numbers for so take the amount of time to verify that your EIN matches everything also okay we've seen clients me personally I've done it where I put the wrong corporation tax ID number on a document a bunch of times so make sure your tax ID number adds up on everything you have look this might be a little bit of legwork at the beginning but the purpose of this is to do this stuff once and never have to do it again do it once make sure your business is setup credibly make sure you meet these lending 20 credibility guideline checklist that lenders have then you never need to do it again so go through all your stuff and make sure everything has a tax ID number that your ID number is actually correct your business address it has to be a real brick and mortar building it has to be a deliverable physical address can't be a home address can't be a p.o box can't be a UPS address some lenders will not approve you since criteria smack so here's the deal okay I'm going to show you a solution called virtual addresses you could do here if you don't have a business address but you cannot on the application put a home address by any means I'm going to shine my apt I won't have time to show you but we even have the same check in our business finance suite that checks to see if the address is a home address or business address that lenders use there's a quick check they use the minute your address is entered in a field in their system they know immediately whether it's a P o box home address or business address don't use a UPS box don't use a USPS box if you use a peel box if you use a home address you're probably going to get it denied so don't do that instead if you don't have a real physical address then look for a virtual address solution okay here's some virtual address solutions an address only solution a virtual office a true office then there's all kinds of things you could do with virtual offices you can just get your mail there you can have a physical office you could come in and use it anytime um you can have an actual physical office you work in full time if you want a lot of things you can do with virtual addresses if you're working from home now don't put that home address on an application get a virtual address to use case you wonder how that works is pretty simple all you do is get your mail there so for example if I'm applying for business credit I don't know longer to use my home address I use my my literal mailing address at Tampa Florida if the lender looks at it they see that I'm in a high-rise building in Tampa Florida but the reality is I'm just renting that address that's how their virtual address actually works you have to have a dedicated phone number that's listed with for one one lenders will verify this in almost all cases okay you have badness now seems basic seems common sense it ain't I can tell you when I first got to finance me I was in business five years and I was not listed for one one and had no cool night so let's look at a real world scenario I go to apply for money I get turned down I'm turned down because I don't have a form on one listing and guess what I would have known the lender wouldn't tell me so I would get deny never have any clue that I was denied or why when the reality is because I wasn't listed in for 1/1 you gotta be listed before 1/1 it's one of the basic things beyond having an EIN number that almost all lenders look at ok and you can also have a local number or toll-free number linked to for one one just make sure that your main number is the number that's actually linked to for one one okay so let's talk more about phone numbers you should have a toll-free number look if you're not a pizza delivery company that only needs a local number you need a toll-free number it sets you aside as credible think about every big company has a toll-free number so you want to have a toll-free number on the application even if you're a single home-based business I mean you can go to ringcentral and get phone numbers very very very cheap very very very easy hey on top of getting phone numbers you also need to know you can't use a cell phone or a home phone if you do you'll get your business as flagged as an under status business with your bureaus so don't give a personal cell phone a residential home phone again don't ever sit back and go how will they ever know they know ok we have the exact same technological check in our finance suite customers enter their phone number and the system says this is a cell phone this is a home phone this is a business phone lenders use the exact same check they're going to know what it is so pay the $9.99 a month and get a RingCentral phone number that's a toll-free number to use it's so cheap so affordable to do just whatever you do never use a personal phone number or a cell phone number the same of the fax number of a lenders role you look at you as credible if you have a fax number you nowadays you can go to RingCentral get a toll-free number and fax number for less than 10 bucks a website ok you need to have a website you can't fill out an application for business credit not have a website it seems like to a lot of people a no-brainer but statistically over 50% of small business don't even have a website so it's actually more common than not that people don't have websites so they will research your company and its really best but they learn everything to you from you I always say this you need to control the conversation you need to control what they know about you the best way to do that to put the stuff online that you want them to see the same with your customers so you can go to GoDaddy now with a get a website pretty cheap you can use companies like the hire contract you can build your websites it's cheap and easy something you definitely definitely definitely want to do if you don't you can severely severely hurt your chances of getting approved for business credit and it's also important you have a company email address you need to have a professional email address it's not only professional but it helps your chances of getting a thumbs up with the lender okay so setting up a business email address again it's easy and inexpensive to do you can go to GoDaddy right now you can buy a domain for seven to ten dollars and with the domain dinner professionally nagas so it's very cheap to do you just go get your domain up business credit comm and then you'll get the email address this you know Joe at business credit com you can use okay I always use the same example don't use free services like Yahoo or hotmail okay there's nothing worse than you know lender seeing an application party check 2009 at as the email address this is a telltale sign of a small business versus a successful big business a successful big business when you see an email from them it's ty at or ty at GoDaddy calm it's the name of the company in the email I guess it's a professional email address so your email address really should be you know your name at your company comm not something like Yahoo or hotmail big successful companies half professional email addresses it's ridiculously cheap to do so make sure you get a website and a professional email address set up something like support at your company calm my email address is ty at credit suite comm professionally not gotta do something like that your business banking history is vital to whether or not the Bates businesses or banks approve you or not and the date you open the accounts today a lot of lenders consider you business have started so I hear a lot of people nowadays talk about shelf corporations hey ty I'm going to get shelf corporation well in my opinion there I'm going to say their scam but they're pretty much meaningless because the way we teach you to build business credit you don't really need a shelf corporation to do it it doesn't really give you any tremendous benefit to do that okay nowadays a lot of these companies look at with your bank account opened anyways to see when your corporation was open so if you buy an aged corporation it's two three four five years old it's kind of pointless if the lender looks the bank account open date is when you start it you're going to go ahead man I've got a five year old corporation they can say when did your bank account open you go last month they go now you got a one month old corporation so don't try to trick the lenders the bottom line is a lot of them are going to look at your bank account start date as when your corporation started so if your bank account isn't open yet get it open right away and you might want to avoid shelf corporations for this reason because most lenders are going to know when you open anyways by looking at your actual bank account okay so another thing is that you want to have a high account balance in your bank account to have a good bank rating having a good bank rating is essential for approval I don't have enough time to jump into bank ratings a lot today that's a whole nother webinar I could spend an hour on that topic I already have and an hour topic before but what I can tell you is this banks have their own internal credit bureau credit scoring system that you don't know about it's called a bank rating and it rates you based on how you manage your business bank account typically it's based on the balance you keep in your bank account and to have a five rating or a high five rating which is the top bank rating you can get you should have about ten thousand dollars at your bank account if you have less than seven thousand dollars in your bank account on average your bank rating is lower it's harder to get money so something you need to at least know a lot of people come in they have no money in their bank account they know business credit belt they go try to get business financing and they get turned down to go I don't know why I got turned down what do you mean you don't know why you got turned down you have no business credit though and a crappy bank rating everything they look at you're no good in that's why you don't get approved so know what a bank rating is and manage your bank account responsibly don't get us any NSF's if you can avoid it keep the highest balance in your bank account you can those things definitely help you in applying for business financing down the road so try to keep at least a balance of 10,000 or higher for a high five bank rating okay beyond that you also want to make sure that you have the proper licensing for your company one of the biggest mistakes that we see business owners have is that they have licensing and their company information doesn't match their other records even worse is companies that don't have a necessary licensing look you've got to have the state the county the city the government licensing that you need you can't be a plumber out there doing illegal contracting work when you're not licensed for example you need to be licensed they're going to want to see that you're licensed and bonded if required if you're not running legitimate business you don't have the credentials the licensing the bonding that you need you can easily get turned down matter of fact complete side topic I got to tell you a story one of our clients that's a reseller just signed up a month ago because he was trying to get a bond for his business and he was denied a bond because of his business credit boom away guy never heard of business credit besides hearing you talk about it okay he comes in his bond is denied for business credit he calls me in a panic it's his tie I went in he enrolls as a reseller gets his own finance suite we fixed the issue with his help he helped him fix the issue then he turns around and gets the spot so complete a bit of a side topic but it's important to note that you can be even denied for bonding nowadays if your business credits have line another reason you want to build the business credit on the topic we're on now you want to make sure your name is consistent on all the licensing everything adds up so you can the lender can find you when they go to search and it makes it easier to get you approved okay so state business filings county filing city licenses IRS filings all need to be done only to be listed correctly okay and also again as I said take the time to make sure that your listing on all documents IRS bank for one one every bill power bill electric bill are all the same it's one of the best and easiest things you could do to ensure that you can stay the best chance of getting actual business financing so the next thing you want to do now that you made sure your business setup credibly and again you'll get a playback of this webinar so if you miss some of this don't worry I know I talk fast I power packed these webinars with information okay no don't waste any time but as a result I move pretty fast as you can see you get a lot of information in a short period so I'm going to send you a playback to this webinar if you registered you'll get a playback tomorrow you'll be able to come back and stop the video and listen and write stuff down so if you're not getting all this don't worry you'll get a playback so now that you've made sure your business setup credibly now you need to get your business credit reports because let's be real I mean you're going to be building your business credit you need to see your reports to see what's going on so there's three ways you can get your reports there's three different reporting agencies one is you can go to experience you have to write this down the smart business reports calm you can go in and type in Experian business credit reports and you could get them there are about 49 to 99 bucks a month they'll tell you how many trade Minds you have you have a score sign Experian credit profile all these type of things someone to know if you're using our finance suite to build your business credit or if you're a reseller and you get your own finance suite to build your business credit this is free for our clients but anywhere else for the world you got to pay it's about forty nine to ninety nine bucks a month you can also go to Equifax comm small business to get your Equifax reports it's there not a lot of stuff reports to Equifax so if I'm building my own business credit I'm not pulling Equifax I would monitor dun & bradstreet possibly experience no real reason to monitor Equifax but if you do find creditors that report to Equifax in the business side you should get with them because not a lot of creditors report to Equifax and it's about a hundred bucks for a full report with them if you want to get your Duns number or get your actual credit report for dun bradstreet the first thing you need to do is get your actual Duns number okay if you're not sure what a Duns number is your Duns number is dun & bradstreet code to identify your business it's used worldwide the United States government the Australian Government uses a lot of trade organizations use it it's kind of like your EIN for the world anybody can see your Duns number even if anywhere in Australia and know what the okay so that's actually what it is it's a very first step to actually getting approved with dun bradstreet so you want to go ahead and go to the abhidhamma make sure you get your guns number registered and also make sure if you want to get credit monitoring that you get it it's about three hundred and seven hundred bucks for the Duns number but just so you know if you build business credit lam showing you today you do not need to pay for that Duns number or that credit profile although DMV will try to charge you and they charge about fifty to one hundred bucks a month for their actual credit monitoring which is their self monitoring platform about thirty nine to ninety-nine bucks a month okay so the next step in building business credit and this is the step right here I'm going to slow down a little bit load because what happens is this is where people get stuck so I'm going to I'm going to walk you through I'm gonna be very real and explain to you how the business credit building really starts because again this right here is one of the fundamental places where I see people get stuff and this is it this is where everybody good stuff so to start building business credit it started really the same as a credit report consumer credit report it's with small credit cards now in the vendor in the business world you're approved for these small credit cards to help build your initial credit report and these credit cards are called vendor credit now think about back in the day when you first started your consumer credit report the very first time you ever got credit it was probably either some kind of credit to somebody co-signed for you on maybe a car or a credit card or something else or it was some kind of very small limit or in most cases secured credit card that's how most people build credit consumer credit they start with very small limit cards most of them are secured cards in the business world you start building business credit with vendor accounts vendor accounts are where it all starts so a vendor account or small credit accounts that you can get that will initially be reported the business credit reporting agencies and help you build your initial business credit now these are accounts that are paid back over 15 30 or 60 or 90 day terms they're called net 30 60 90 or 90 dates okay that means that you can purchase an item and you can pay them back over 30 60 90 days so most of these accounts are net 30 type of accounts so what that means is it means that you need to pay the whole balance off within 30 days or less so let's say you go and you get a credit account for 500 bucks and you put $300 worth of charges on well with the revolving credit account you could pay 25 50 bucks a month to pay off that full 300 bucks in the business world you'd have in the net 30 range if you're getting net 30 accounts that means in 30 days you have to pay off the whole $300 balance now so that's what a net 30 account is means you have 30 days to pay off the whole balance that you put on there they're not revolving don't worry all business credit accounts aren't like this only your starter accounts are so again if you buy something for 300 bucks okay and you put $300 on your net 30 account you got to pay off the full three hundred bucks within the first 30 days that's what net 30 accounts actually mean now you can get products and services that end defer the payment for 30 days so this helps your cash flow a lot so if you get good vendor accounts that are companies you want to do business with well this could really help you because what happens is you know you're getting accounts delaying your payment for 30 days well that's a good thing okay another thing is some vendors will approve your company for net 30 accounts upon verification as little as an EIN or one one so here's the beauty of business credit you just need to get some vendor accounts that initially will rapport only looking at your EIN and for one one listing if you can find that which I'm going to show you in a minute some then you're already well on your way to building this credit because once you build these accounts then you have trade lines and you have a profile but you have a store that you can go into staples and places like that start getting credit so you have to remember as I said earlier you cannot apply with the social security number ever stop immediately when you apply for credit with a social security number you're going to guarantee it that's what it means leave the social security number off the application some wonders will request it even insist they have to have it do not put it on the application okay and when your first trade lines or to dun and bradstreet the Duns number well our dun system will actually automatically activate your credit profile listen if you apply for dubbing Bradstreet's credit monitoring or maybe already done in Bradstreet credibility is going to call you and try to sell you crap you don't need okay that's the reality what happened and what they're going to do is they're going to sell you a seven or eight hundred hour package for your Duns number and activation of your credit profile its bonus the reality is dun & bradstreet will give you your Duns number at no cost they have to do ok your credit profile will be activated automatically when you get a few vendor accounts for 40 it has to you don't ever have to pay them to start your credit report I'll try to convince you to do so it's very important that you know that they will activate your credit profile when you have your first vendor accounts so you need to have a total of about five of these type of accounts reporting some vendors will require an initial prepaid order before they approve you okay and these vendors do not necessarily need to serve a hundred percent of the purpose of your business purposes look here's the reality over 90% of business credit trade vendors don't report that's why most people don't have business credit because the companies you do business with right now they don't report you see in the consumer world that's normal if you went to get a chase credit card you would expect them to report if they did report you'd be mad you call and the business world 90% of vendors don't report it's not the norm the norm is that people don't report so most of the companies that you do business with don't report that to the reporting agencies is why you don't have business credit okay that also means it's hard to find the sources that do initially report meaning you might have to find sources than buy products from them that you normally would buy it's the one sacrifice when you're building business credit I'll show you what I mean in just a minute we take a little bit of a deeper look at some of these accounts so some tips once you get the vendor account spam on time remember that's what your business credit score is based on and be patient it could take 30 to 90 days for those accounts to initial report okay and also keep in mind most retailers do offer business credit they just don't promote it because there's no benefit for them promoting that they can offer you no liability through willing to sign on the dotted line and give them your social security number so staples Home Depot Lowe's Apple Target Walmart Costco Sam's Club BP shell all of these companies offer business credit you probably Macy's Nordstrom's budget rental car FedEx most people just don't know about it so keep in mind once your business credits bill okay you can absolutely build this kind of credit without the personal liability without the personal guarantee it's available most merchants and most retailers even though they don't promote it so Before we jump in actually I'm going to go in go through the rest of the slides and I'm going to actually show you some real-world vendor accounts and revolving accounts we could get so once you've built those actual vendor trade lines three or four five now you can come in and start building revolving credit cards looks good slips be honest that's what you want right you want a four thousand dollar revolving Staples card you want a five thousand dollar apples card you want a ten thousand dollar Visa Card well once you have five initial trade lines built then you can start moving into actual revolving accounts and revolving accounts our business owner you can use for you know any purpose you could put five hundred bucks on them and take twenty five bucks a month until it's paid off just like any other revolving credit card that's already used to so revolving account approvals will begin coming from the stores okay means so you're not going to just immediately start getting Visa MasterCard Discover credit you're going to start getting Apple and in Walmart at and Target and staples and Shell okay store cards first and then you'll get into Visa cards MasterCard American Express Discover type credit card takes about six months to get in total building time to get from no credit profile to getting to Visa MasterCard American Express type cards okay and most the words will not approve a business owner for business credit unless the owner has an established credit profile score just like in the consumer world you heard me say earlier you can't go into Staples and have no credit they give you the initial credit you have to start with some vendor accounts first start with some vendor accounts then move the store credit okay and vendor accounts must be used first to establish that profile before you can get the the store it usually takes up to 90 days we're talking about a little bit earlier so once you have a total of 10 accounts reporting on the credit then you can start applying for Visa MasterCard American Express type credit approval limits will be equivalent to the highest credit limit account on the business credit report just like consumer so the goal is to build five initial trade lines get the highest credit limit account you can at a place like Dell they give $10,000 limit cards all the time so now you have a ten thousand dollar limit Dell credit card now when you go to get a Visa Card they look at your approvals they look at your limits they mimic your highest limit so if you got a ten thousand dollar Dell card guess what visa gives you ten grand Amex gives you 11 Discover gives you nine they all give you amounts pretty close to that 10 grand so you want to build high credit limits through your store accounts then you can get the highest Visa MasterCard American Express type limit accounts okay and then it's essential that you keep using a credit keep applying for more talk with credit providers to raise the credit limits I can tell you in our unsecured financing program that we see 70% more money secured by the client by what we call a negotiation process with the lenders 7 call negotiation process bottom line is is that whatever your initial approval limits are keep in mind you can go back to the lender negotiate those and sometimes get those 50 to 70 % higher just by negotiating after the fact okay also keep in mind that you have to keep this up this doesn't just stop people ask me all the time tight how long does it take me to build business credit and I say to them how long does it take you to build consumer credit think about it there's really no end in sight it never stops you continuously or building your credit but here's some timeframes you can get your initial net 30 accounts immediately you can start getting store credit accounts in about 90 days you're going to get Visa MasterCard American Express accounts in about six months total it'll give you a total starting point and then you want to keep using the credit and it kind of goes never-ending um beyond that so all that being said I'm not going to wrap this up yet what I'm going to do is I'm actually login to our actual business finance suite because I want to show you a couple things relating the business credibility now an off time to go through this with you today okay this is our actual turnkey system that our reseller sell to customers we're through it you can build your business credit in step one you go through that 20-point compliance checklist and we get them all kinds of cash financing and we put them in touch with a business credit reporting agencies and all those things but one of the reasons I want to open this up for you today is because I want to show you some actual net 30 vendors okay here's the challenge right here most people can't find vendors that initially report to help them build their business credit and here's your sacrifice you're going to have to do some business with some companies that you normally wouldn't do business with to get your initial two or three trade lines now it's not a real big sacrifice you can go to a place like will office supplies and you could buy office supplies now normally would you buy from quill probably not but who cares I mean really who cares go in here buy this looks good I scotch tape what here we go post-it notes for eight bucks buy post-it notes for eight dollars what you do is you follow the steps once you have it and again you know you got to get approved with quill you got to have them approve your business credit account so if you go to a place like quill then you can get a proof of business credit once you have a small credit line then you could just go in and buy one of these okay you want to buy one thing a post-it notes add it to your cart and buy it then in a week pay it off pay them to eight bucks back now in 30 to 90 days they're going to report that as a trade line and your business credit is going to start getting established now you might look at this and go like ty that seems weird should I buy $2,000 with the stuff no you shouldn't remember in the business credit scoring world all we care about is one thing do you pay your bill on time all we need you to do is go get a trade line pay it on time and then your business credits bill so although you might not go to quill usually to buy stuff do it in your first initially to get your business credit to get two or three trade lines the same thing with reliable office supplies or GIMP lers or your Uline shipping supplies a printer for you okay amstead printing these all brand new ones I haven't seen ITC Web Services again you can come back this video in their different time monopolize your marketplace all of these creditors that I'm showing you will approve you with just an EIN in for one one and I'm just showing you four five six seven eight nine ten eleven you need two or three so easily you can easily go set up some accounts with these companies buy a little bit of stuff pay it as agreed do it month after months for a few months and they're going to report to the business credit reporting agencies or trade lines will be established once you have two or three accounts established bingo now let's go shopping now you get all kinds of cool credit Radio Shack Best Buy we commonly get clients $1500 accounts at just because they have two or three accounts established so this is the kind of business credit you could build even once you have those two or three accounts established and you want to have about five of these net 30 kind of vendor type of accounts places like staples and FedEx remember staples won't approve you initially but if you got two or three trade lines at the places I just showed you now you could come into staples and staples would approve you for in that thirty account all of these here are net 30 accounts so once you build those net 30 accounts then in about 90 days once you have five then you can move into revolving credit and again you want to go to some starting sources to get your revolving sources Office Depot staples are some good ones shell tractor supply Home Depot all these are very good starting revolving accounts which mean if you have buy credit the lines established now you have a credit profile now you have a score now you have five trade lines they'll check your four one one they'll check your ein they'll approve you for a revolving account now you want to keep doing this until you get about ten revolving account so there's tons of them the issue this kind of credit business credit corporate credit Costco Walmart Apple okay Amazon Dell all these companies love Sears Henson's fascinating BP Chevron Sinclair Conoco X on almost every gas station all of these are visa master codes so even though you see Home Depot doesn't aim its Home Depot card means Iko issued it these are credit cards you could use anywhere so this is a $10,000 credit card $10,000 there's over 120 thousand dollars worth of credit just on this one page that we're looking at okay and again we make it easy for clients because we list the underwriting guidelines and all that stuff some of the stuff without this you're going to have to do celebra I'm not going to say this is easy we make it easy because list it all for you but if you're doing this on your own it's a little bit of legwork to figure out who will and won't approve you but once you get those 10 accounts then it's off to the races then you can start getting Visa MasterCard Discover type credit and and you're off you're off I mean at that point you've got an established credit profile you've got an established credit score and you know you're good to go you're good to go at that point so hopefully this helps you today you've learned everything you learn what business credit is the benefits why you build it you learn exactly the steps the building business credit how to make sure your company is setup credibly you actually saw eleven real sources that you could build your initial few credit sources with you saw another 50 70 sources we went through a people that will prove you four other vendor and business credit so it's good to go now you know exactly what's involved with building your business credit I don't have time for questions today because I am literally going into another webinar so if you have other questions send me an email ty at credit suite comm give me a ring at eight seven seven six hundred two four eight seven I'm going to another webinar don't have time to answer those now but I graciously will answer those to send me an email give me a call I answer any questions you have I hope you enjoyed this webinar on how you could build credit linked to your EIN that's not linked to your SSN and I hope now you know and I've absorbed the exact steps that are needed to do so if you have any other questions send an email or give me a call thanks everybody for taking the time to attend this webinar

41 thoughts on “Build Business Credit with EIN

  • Thank you so much for the information you shared in this video! Looks like it was posted a few years ago, but sure was helpful for me today. I have just one question regarding the signing on a business credit application. Should the business credit application be signed by you as a signer for the business including your professional role in the business: Example: Signed Company name by My Name, My role (owner)? Or does this matter at all? Thanks so much again for what you have shared. Also, I just agreed to pay D&B the $1,400 their credit builder program – I am on a payment plan with them and feel totally foolish now (after watching this video) because I already had a DUN number. Do you think they'll agree to cancel my subscription to their credit builder service? Eek!

  • SOOOOO…glad I can run a multimillion dollar international business from my phone while sitting on the couch watching Hogan's Heroes! No need for loans, debt, offices, employees(Yeesh 🙁 ), or ANY of this crap!

  • UBF is good BUT, if you don't have 2% of that outstanding balance, especially if it's over 25k, you are looking at, at least 500$ mnthly and up.. Soo if you don't have that type of income to pay these monthly payments then don't do it or jus keep it low. Real low, lol, maybe like less than 1000$ and pay it off before the 0% promotion ends .. I'm just sayin. 🙄

  • So should you get your business address, or virtual address, before you register your LLC and apply for EIN?

  • You’re a walking dead if you live in the US with a bad credit score, I was at 468 score few months ago after someone I trust put me in a deep shit that ruined my credit from 695 to 468… I came across an old friend last month who told me to contact a guy called Kevin who also got him an excellent credit score.. Amazingly I got 896 in just 4 working days, this guy is a beast of no nation, a very good and experienced computer guru. He told me he also can help people with funds on there PayPal, western union, bank account, credit card payment,bitcoin hack, cashapp. etc contact him on ([email protected] gm ail. com and WhatsApp him +1 407 735 6053

  • Can’t believe this video is actually free to watch lol I bet some people pay a whole bunch for someone to personal explain this to them like the same exact thing haha

  • I applied for my business liscence and sellers permit. Am i suppose to changed the address to a virtual office address? If so, how will i get my actual mail if i change it through the state?

  • When you say that your application should always include your full business name (XX Company LLC), does that include any names that aren't associated with the LLC but are doing business under the LLC. For example, I have my brand (puppy product brand name) and then I have my LLC (pet supply store LLC). Do I need to put the product brand name in the application or simply the main LLC name that is registered and is the official name of the business?

  • Virtual addresses are good, but they are not everywhere. The closet virtual address to me is 3-4 hours away from me.

  • Good video soooo how do I use my foreign grantor trust 98# do I use the w8ben to open the account since I don't have a SS hush hush lolllll

  • thank you so much for your time and information. you know your stuff. I am learning so much from you

  • Many charge much for information. They will give limited information. Basic common knowledge with a wealth of other irrelevant topics to make a buck steering clear of infusing the topics which should be covered to permit others to the world of what is truly required to commence or attempt business venture. The real deal is conducting research independently and networking with those who are already there in business to aid piloting you with the prime basics. Key to business credit personally and business wise

  • Hi, I greatly appreciate your video. You are very very informative, however, I have a question. I have 5 vendors reporting on my business credit profile on Dun and Bradstreet I then tried to go to Tier 2 with Amazon. I applied online, but the system wouldn't allow me to bypass the social security part. I also tried to apply for a fleet gas card, and again, they wouldn't allow me to go pass the social security part as if I have to put my social security number. How do I get around putting my social security number? I left it blank, but the system wouldn't allow me to go further with my social security number. Thank you for your reply.

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