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Business Credit and Loan Short Video Power Points for YouTube Videos

A business loan can be obtained to start or grow a business. Loans are typically issued by banks, alternative lenders, and private investors. Business loans can be obtained based on your business strengths.

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Business Credit and Loan Short Video Power Points for YouTube Videos

  1. 1. Business LoanBusiness Loan
  2. 2. Business Loan • A business loan can be obtained to start or grow a business • Loans are typically issued by banks, alternative lenders, and private investors • Business loans can be obtained based on your business strengths
  3. 3. Business Loan • Conventional banks, which include the big banks like Wells Fargo, Bank of America, and Chase, issue bank loans that are guaranteed by SBA • This means if the borrower defaults, SBA covers up to 90% of the bank’s loss • These are the hardest loans to qualify for because you’ll need good financials, credit, and collateral
  4. 4. Business Loan • Over 90% of business loans issued today come from alternative lenders and private investors • These loans are much easier to qualify for versus conventional bank loans • All you’ll need is one strength, not a nearly perfect business to get approved
  5. 5. Business Loan • A business strength for alternative lending typically includes one of the following: – Good personal credit, or a guarantor who has good personal credit – Some type of collateral such as equipment, inventory, a 401k or stocks, account receivables – Consistent cash flow of 10k monthly or more
  6. 6. Business Loan • If you have one of those strengths, you can typically get approved for a business loan • The rates and terms you get approved for will be based on your risk • Factors that can determine your risk include – Time in business – Quality of your financials – Credit quality – Industry
  7. 7. Business LoanBusiness Loan
  8. 8. Business LoansBusiness Loans
  9. 9. Business Loans… What You Should Know • Most people go to their conventional bank when they need a business loan • But the Department of Revenue reported last year that over 98% of business financing is NOT coming from the big banks • Almost all business loans are now coming from Alternative Lenders Get Money for Your Business Now… www.CreditSuite.com/getfunding
  10. 10. Business Loans… What You Should Know • Unlike with conventional banks, alternative lenders have MUCH easier qualification requirements • So you can often get approved with an alternative lending source when you can’t with your bank… • … And even when you think there’s NO WAY you’ll get approved
  11. 11. Business Loans… What You Should Know • Alternative lending options now mean you can get approved for a business loan even if: • You have REALLY bad personal credit • You have no business credit • You don’t have any types of collateral • You are just starting a business • You don’t have tax returns… or your returns aren’t good • You have limited or no cash flow
  12. 12. Business Loans… What You Should Know • The key to getting approved is to know what lenders are looking for to issue you an approval • This way, you can meet their requirements before you apply • And you need to know what types of financing is available so you’ll know what to apply for
  13. 13. Business Loans… What You Should Know • There are 3 main types of alternative business loans • CASH FLOW-based loans are loans you can secure based on your cash flow • To get approved your cash flow should be: – Consistent – Over $10,000 monthly • And, you’ll need to be in business 12 months or longer
  14. 14. Business Loans… What You Should Know • CREDIT-based financing can get you up to $150,000 in unsecured financing • You can get 0% rates for 6-18 months • And, this credit reports to the business reporting agencies • You can get approved as a startup • This is no-doc financing
  15. 15. Business Loans… What You Should Know • To get approved you’ll need a consumer credit score of 685 or higher • You can also use a guarantor who has good credit • You should have low inquiries, and good revolving credit utilization
  16. 16. Business Loans… What You Should Know • COLLATERAL-based financing may work for you if you have some type of collateral • You can get low rates, and approvals are based only on the value and quality of your collateral • Acceptable collateral includes: – Account receivables and purchase orders – 401k, IRA, stocks, and bonds – Inventory – Equipment
  17. 17. Business LoansBusiness Loans
  18. 18. Business Loans for aBusiness Loans for a Small CompanySmall Company
  19. 19. Business Loans for a Small Company • There are A LOT of different funding options for small companies • Some of these funding programs will work even if you’re a startup • There is also funding available if you have consumer credit issues, or have no collateral
  20. 20. Business Loans for a Small Company • CASH FLOW loans are loans you can secure based on your cash flow • To get approved your cash flow should be: – Consistent – Over $10,000 monthly – And you should have a positive ending bank balance each month • And, you’ll need to be in business 12 months or longer… in most cases
  21. 21. Business Loans for a Small Company • CREDIT financing can get you up to $150,000 in unsecured financing • You can get 0% rates for 6-18 months • And, this credit reports to the business reporting agencies • You can get approved as a startup • This is no-doc financing
  22. 22. Business Loans for a Small Company • To get approved you’ll need a consumer credit score of 685 or higher • You can also use a guarantor who has good credit • You should have low inquiries, and good revolving credit utilization
  23. 23. Business Loans for a Small Company • COLLATERAL financing may work for you if you have some type of collateral • You can get low rates, and approvals are based only on the value and quality of your collateral • Acceptable collateral includes: – Account receivables and purchase orders – 401k, IRA, stocks, and bonds – Inventory – Equipment
  24. 24. Business Loans for aBusiness Loans for a Small CompanySmall Company
  25. 25. How to Get Business LoansHow to Get Business Loans with Bad Creditwith Bad Credit
  26. 26. Bad Credit Business Loans • There are many different types of business loans you can get approved for… even with bad credit • If you have credit issues, avoid: – Conventional bank loans – Unsecured financing – Business credit cards that require your SSN
  27. 27. Bad Credit Business Loans • Business loans are obtained based on your business strength • The easiest type of business loan you can get approved for is called CASH FLOW financing • With this type of financing, you can get approved only on how you manage your business bank account
  28. 28. Cash Flow Financing • You can get approved if you’ve been in business one year or longer • You’ll also need to show 6 months of business bank statements, showing that you have more than $10,000 in monthly deposits • Your bank account should also: – Have positive ending balances at the end of each month – Consistent deposits – Less than 10 NSFs
  29. 29. Cash Flow Financing • You can get approved for as much as 10-12% of your annual revenue • Rates vary based on risk • Many lenders lend as low as a 500 credit score • With good bank account management, some lenders won’t even look at personal credit
  30. 30. Asset-Based Financing • If you have some type of collateral you can get low-rate financing based on the quality of your collateral • Acceptable collateral includes: – Account receivables and purchase orders – 401k, IRA, stocks, and bonds – Inventory – Equipment • Personal credit quality does NOT matter
  31. 31. Bad Credit Business Loans • Business credit is a MUST for any business owner with credit issue • When you build your EIN credit, that can be used to qualify you instead of your consumer credit, or to offset your consumer credit • Plus you can use your business credit to get large credit lines such as $10,000-$50,000 credit cards… in multiples, and store credit cards with high limits • Building your business credit gives you a lendable strength
  32. 32. How to Get Business LoansHow to Get Business Loans with Bad Creditwith Bad Credit
  33. 33. Business Loans ProcessBusiness Loans Process
  34. 34. Business Loan Process • Most business loans you apply for will follow the same underwriting process • To start the process you must first find a lender who will lend you money • Conventional banks will require good credit, good financials, and collateral • If you don’t have all of these, consider an alternative lending solution
  35. 35. Business Loan Process • Alternative lenders focus on one lendable strength • Your main lendable strengths will include one of these three: – Good consumer credit – Collateral – Consistent cash flow
  36. 36. Business Loan Process • Once you know what your strength is, you can then find a lender, or broker, who can help you process your loan • The first thing that will be required is your loan application • Applications are different for all lending sources
  37. 37. Business Loan Process • Most applications will ask you for: – Your business name and address – Your website and email address – Your phone number and other contact details – Your name – Your SSN and your business EIN – Your D-U-N-S number… in some cases – Your revenue – Time in business – Info on other outstanding loans
  38. 38. Business Loan Process • Once you submit your application, you’ll typically be called from a representative from the lender, or the broker • This is the front-facing representative, usually equivalent to a sales person • On your initial call the rep will verify what’s on your application, talk more about your wants and needs, and talk with you about possible qualification
  39. 39. Business Loan Process • Sometimes your credit will have been reviewed, and sometimes it won’t • Your rep will ask you for verification of your revenue or collateral • Once this is supplied, your loan will be sent to underwriting • Underwriting process can take 1 day, or months depending on the type of loan
  40. 40. Business Loan Process • You will be asked for additional details during this time that the underwriters needs to approve your loan • Once you’ve supplied all requested documents, you’ll then get approved or denied • If approved, your rep will present you with your terms, often in the form of a term sheet
  41. 41. Business Loan Process • If you agree to the terms, you’ll be asked to sign the term sheet • Once you sign, the lender may do one final round of due diligence checks for things like ensuring your rent is up-to-date • After you pass this final hurdle, your deal will fund and money will be delivered to you
  42. 42. Business Loans ProcessBusiness Loans Process
  43. 43. Business Loans BrokerBusiness Loans Broker
  44. 44. Business Loan Brokers • A business loan broker is someone who works with business owners, helping them secure business loans with banks or other lending institutions • The broker serves as a “middle-man”, working between a borrower and lender
  45. 45. Business Loan Brokers • A broker’s job is to know and understand the business loan landscape, to know what types of loans are available for borrowers • Their job is also to know the lenders that offer each type of available financing, and to know their individual loan approval requirements
  46. 46. Business Loan Brokers • With this knowledge, a broker can work with borrowers to explain their possible loan options, and explain the terms they may receive • Once a borrower requests that a broker move forward with a loan, the broker will locate the lending source who can offer the best financing terms
  47. 47. Business Loan Brokers • The broker will work with the borrower to get a completed application, and any supporting income documents the lender may need • The broker then works to submit that loan to the bank or lending institution • The broker then works with their rep at the lending institution to get the deal approved
  48. 48. Business Loan Brokers • The broker’s rep works with underwriting to secure loan approval • That loan approval is then provided to the broker, and the broker presents and explains the terms and specifics to the borrower • The broker many continue to negotiate with the lender to get the absolute best terms
  49. 49. Business Loan Brokers • Once the terms are accepted, the broker supplies the signed documents to the lender • They then work with their rep to get the deal through the final due diligence stage • And, the broker sees the loan all the way through the process until the deal funds
  50. 50. Business Loan Brokers • In most cases, the broker is paid by the lender once the deal funds • The payment varies based on the loan type, amount of fees the borrower pays, and other factors • Some brokers also charge the borrower a separate fee upfront, or when a deal closes
  51. 51. Business Loan Brokers • To find the best broker, find one that works with the most amount of lenders and loan programs • Also, find one with experience • Work with brokers that close more loans so they can help you get the best terms • And, be aware that many brokers do not charge you additional fees • It is always risky paying upfront fees in case your deal doesn’t close
  52. 52. Business Loans BrokerBusiness Loans Broker
  53. 53. Business LoansBusiness Loans for Womenfor Women
  54. 54. Small Business Loans for Women • Women owned businesses account for more than 40% of all privately held firms • As many businesses that are owned by women, many still struggle to obtain business financing
  55. 55. Small Business Loans for Women • Cash flow financing is a great loan program for women, if you’ve been in business one year or longer and have $10,000 in monthly revenue • Unsecured financing is available for women entrepreneurs up to $150,000 • You can get approved if you have good personal credit, and get 0% intro rates for 6-18 months… even as a startup
  56. 56. Small Business Loans for Women • Collateral-based financing offers women low rate financing • Personal credit quality and revenue don’t determine your approval • Some acceptable collateral includes: – Account receivables and purchase orders – 401k, IRA, stocks, and bonds – Inventory – Equipment
  57. 57. Small Business Loans for Women • SBA offers some great loan programs including their 7(a) loan for working capital • To get approved you’ll need: – 3 years of business and personal tax returns – Good personal, business, and bank credit – Collateral for 50-70% of what you’re borrowing
  58. 58. Small Business Loans for Women • If you have good personal credit and tax returns for 2 years that show a profit, alternative lenders have programs that may work • You can be approved with rates of 7% or lower • Lenders will want to see some type of profit on your tax returns
  59. 59. Small Business Loans for Women • SBA offers some phenomenal resources for women business owners • SBA’s Office of Women’s Business Ownership, answers questions on the Women’s Business Center program or other services for women • SBA’s Women’s Business Centers, SBA’s national network of over 100 educational centers assist women in starting and growing small businesses • SBA’s Women-Owned Federal Contracting Program, levels the playing field for women competing for federal contracting opportunities.
  60. 60. Small Business Loans for Women • There are also many associations that can help women entrepreneurs obtain funding: • Association of Women's Business Centers (AWBC) • National Association of Women in Construction • National Association of Women in Real Estate Businesses (NAWRB) • National Association of Women's Business Owners (NAWBO) • National Women's Business Council (NWBC) • U.S. Women's Chamber of Commerce (USWCC) • WEConnect International • Women's Business Enterprise National Council (WBENC) • Women Impacting Public Policy (WIPP) • Women's Presidents' Organization (WPO)
  61. 61. Business LoansBusiness Loans for Womenfor Women
  62. 62. Business LoansBusiness Loans for Veteransfor Veterans
  63. 63. Business Loans for Veterans • Cash flow financing is a great loan program for women, if you’ve been in business one year or longer and have $10,000 in monthly revenue • Unsecured financing is available for women entrepreneurs up to $150,000 • You can get approved if you have good personal credit, and get 0% intro rates for 6-18 months… even as a startup
  64. 64. Business Loans for Veterans • Collateral-based financing offers women low rate financing • Personal credit quality and revenue don’t determine your approval • Some acceptable collateral includes: – Account receivables and purchase orders – 401k, IRA, stocks, and bonds – Inventory – Equipment
  65. 65. Business Loans for Veterans • SBA offers some great loan programs including their 7(a) loan for working capital • To get approved you’ll need: – 3 years of business and personal tax returns – Good personal, business, and bank credit – Collateral for 50-70% of what you’re borrowing
  66. 66. Small Business Loans for Women • If you have good personal credit and tax returns for 2 years that show a profit, alternative lenders have programs that may work • You can be approved with rates of 7% or lower • Lenders will want to see some type of profit on your tax returns
  67. 67. Small Business Loans for Veterans • SBA Express program is a great loan program for veterans • You can get approved for a loan up to $350k • Get rates of 4.5-6.5% • Get a line-of-credit good for 7 years • No collateral required up to 25k
  68. 68. Small Business Loans for Veterans • Patriot Express • Loans up to $500k • No collateral required up to 350k • Rates 2.25-4.75 over prime rate • Veterans, service-disabled veterans, active duty, reservists, current spouses of any of these, widowed spouse of service person who passed away during service
  69. 69. Small Business Loan Resources for Veterans • Office of Veterans Business Development, offers a number of programs and services to support and empower aspiring and existing veteran entrepreneurs and military spouses. SBA provides training and mentorship, access to capital, preparation for opportunities in federal procurement, and cultivation of connections within commercial supply chains and disaster relief assistance. • Boots to Business, the two-step entrepreneurial program offered by the SBA on military installations around the world as a training track of the Department of Defense (DOD) Transition Assistance Program (TAP). • Boots to Business|Reboot, extends the entrepreneurship training offered in TAP on military installations to veterans of all eras in their communities.
  70. 70. Small Business Loan Resources for Veterans • Veterans Women Igniting the Spirit of Entrepreneurship (V- WISE), an SBA funded program provided by the Institute for Veterans and Military Families which includes online training, a conference that harnesses the unique esprit de corps of women veterans and female military spouses, and follow-on mentoring through a community of partners. • The National Center for Veterans Institute for Procurement, extends the entrepreneurship training offered in TAP on military installations to veterans of all eras in their communities. • Veterans Business Outreach Center (VBOC), provides entrepreneurial development services such as business training, counseling and mentoring for eligible veterans owning or considering starting a small business.
  71. 71. Small Business Loan Resources for Veterans • Leveraging Information and Networks to Access Capital (LINC), online matchmaking service, connects small business owners with nonprofit lenders that offer free financial advice and specialize in microlending, smaller loans (SBA Community Advantage program), and real estate financing (SBA 504 loan program). • SBA Veterans Advantage, Guarantees loans approved to businesses owned by veterans or military spouses during fiscal year 2017 (October 1, 2016 through September 30, 2017) will receive the benefit of its regular guaranty fee reduced by 50%, when the loan is over $150,000.
  72. 72. Small Business Loan Resources for Veterans • SBA Veteran’s Entrepreneurship Act of 2015, Reduces the upfront borrower fee to zero dollars for eligible veterans and military spouses for SBA Express loans up to $350,000. • Military Reservist Economic Injury Disaster Loan Program (MREIDL), provides loans up to $2 million to eligible small businesses to cover operating costs that cannot be met due to the loss of an essential employee called to active duty in the Reserves or National Guard.
  73. 73. Business LoansBusiness Loans for Veteransfor Veterans
  74. 74. Business Credit LinesBusiness Credit Lines
  75. 75. Business Credit Lines • A credit line, or line of credit (LOC), is an agreement between a financial institution or private investor that establishes a maximum loan balance that a borrower can access • A borrower can access funds from their line of credit anytime, as long as they don’t exceed the maximum set in the agreement, and as long as they meet any other requirements of the finance institution or investor such as making timely payments Get Approved Now…www.CreditSuite.com/GetFunding
  76. 76.  Credit lines provide many unique advantages to borrowers including flexibility  Borrowers can use their line of credit and only pay interest on what they use, unlike loans where they pay interest on the full amount borrowed  Credit lines can be re-used, so as you acquire a balance and pay that balance off, you can use that available credit again, and again Business Credit Lines Free Consultation…www.CreditSuite.com/Consult
  77. 77. • Credit lines are revolving accounts similar to credit cards, and contrast other forms of financing such as installment loans • In many cases, lines of credit are unsecured, much the same as credit cards are • There are some credit lines that are secured, and therefore easier to qualify for Business Credit Lines Get Approved Now…www.CreditSuite.com/GetFunding
  78. 78.  Credit lines are the most commonly requested loan type in the business world  Even though they are very popular, true credit lines are rare, and hard to find  Many are also very tough to qualify for requiring good credit, good time in business, and good financials  But there are other credit cards and lines that few know about that are available for startups, bad credit, and even if you have no financials Business Credit Lines
  79. 79. Conventional Credit Lines • Most credit line types that most business owners think of come from conventional banks • Conventional banks use SBA loans as their primary loan product for small business owners • This is because SBA insures as much as 90% of the loan in the case of default • These credit lines are the hardest to qualify for because you must qualify with SBA and the bank Free Consultation…www.CreditSuite.com/Consult
  80. 80. • There are two main types of SBA loans you can typically secure • One type is called CAPLines • There are actually 5 types of CAPLines that can work for your business • You can also secure a lower loan amount faster using the SBA Express program • Most of these programs offer BOTH loans and revolving lines of credit Conventional Credit Lines Free Consultation…www.CreditSuite.com/Consult
  81. 81. • There are also credit lines that are available through alternative lenders • Inventory financing, this is a credit line you can obtain using your existing inventory as collateral • Cash flow financing, this is a credit lines where you are using your existing cash flow to qualify • Securities based financing, with this type of financing you are using stocks and bonds to qualify Conventional Credit Lines Free Consultation…www.CreditSuite.com/Consult
  82. 82. Business Credit LinesBusiness Credit Lines
  83. 83. Business Credit LineBusiness Credit Line
  84. 84. • There are two main types of SBA credit lines you can typically secure • One type is called CAPLines • There are actually 5 types of CAPLines that can work for your business • You can also secure a lower loan amount faster using the SBA Express program • Most of these programs offer BOTH loans and revolving lines of credit Conventional Credit Lines Free Consultation…www.CreditSuite.com/Consult
  85. 85. • From SBA… “CAPLines is the umbrella program under which SBA helps business owners meet short-term and cyclical working capital needs” • Loan amounts are available up to $5 million • Loan qualification requirements are the same as with other SBA programs Conventional Credit Lines Get Approved Now…www.CreditSuite.com/GetFunding
  86. 86. SBA CAPLines • Seasonal Line- Advances against anticipated inventory and accounts receivables. Designed to help seasonal businesses. Loan or revolving are available • Contract Line- Finances the direct labor and material cost associated with performing assignable contracts. Loan or revolving are available
  87. 87. Builders Line- Designed for general contractors or builders constructing or renovating commercial or residential buildings. Used to finance direct labor- and material costs, where the building project serves as the collateral. Loan or revolving are available SBA CAPLines Get Approved Now…www.CreditSuite.com/GetFunding
  88. 88. Standard Asset-Based Line- For businesses unable to meet credit standards associated with long-term credit. Financing for cyclical growth, recurring and/or short-term needs. Repayment comes from converting short-term assets into cash. Businesses continually draw from the LOC, based on existing assets, and repay as their cash cycle dictates. This line generally is used by businesses that provide credit to other businesses. SBA CAPLines
  89. 89. Small Asset-Based Line- Asset-based revolving line of credit of up to $200,000. This line has It operates like a standard asset-based line except that some of the stricter servicing requirements are waived, providing the business can consistently show repayment ability from cash flow for the full amount. SBA CAPLines Get Approved Now…www.CreditSuite.com/GetFunding
  90. 90. SBA Express • The SBA Express program offers access to a credit line for well-qualified borrowers • You can get approved for up to $350,000 • Interest rates vary, with SBA allowing banks to charge as much as 6.5% over their base rate • Loans over $25,000 will require collateral Get Approved Now…www.CreditSuite.com/GetFunding
  91. 91. • There are also credit lines that are available through alternative lenders • Inventory financing, this is a credit line you can obtain using your existing inventory as collateral • Cash flow financing, this is a credit lines where you are using your existing cash flow to qualify • Securities based financing, with this type of financing you are using stocks and bonds to qualify Conventional Credit Lines Free Consultation…www.CreditSuite.com/Consult
  92. 92. Business Credit LineBusiness Credit Line
  93. 93. Business Loans ExplainedBusiness Loans Explained
  94. 94. Business Loans for Veterans • Cash flow financing is a great loan program for women, if you’ve been in business one year or longer and have $10,000 in monthly revenue • Unsecured financing is available for women entrepreneurs up to $150,000 • You can get approved if you have good personal credit, and get 0% intro rates for 6-18 months… even as a startup
  95. 95. Account Receivable Factoring • Up to 80% of receivables is forwarded • 1 year in business required • Must be receivables from another business • Rates of 1.25-5%
  96. 96. Securities Based Lines of Credit • 70-90% LTV • Rates as low as 1.6% • Working capital line-of-credit • Challenged personal credit
  97. 97. Inventory Loans • Minimum inventory loan amount: $150,000 • General loan to value (cost): 50%; thus, inventory value would have to be $300,000 plus • No lumped together inventory, like office equipment • Example is a factory or retail store
  98. 98. PO Financing • $5,000+ • Up to 95% of your existing purchase orders • Letters of Credit
  99. 99. Equipment Financing • Major equipment only • Lender won’t combine a bunch of small equipment • 1st and last month’s payments required • Loans up to $2 million
  100. 100. 401k Financing • 401k or IRAs can be used • Up to 100% financing • Rates usually less than 5% • Steps – A new corporation is formed – A retirement plan is created allowing for investment into the corporation – Funds are rolled over into the new plan – The new plan purchases stock in corporation and holds it – Corporation is debt free and cash rich
  101. 101. Business Credit • Business credit is a brilliant solution for startup businesses • You can get initial vendor credit immediately • You can get store credit at places like Best Buy, Walmart, Amazon, and Dell within 90 days or less • And you can get cash credit of $10,000-50,000 within 6 months or less
  102. 102. Business Loans ExplainedBusiness Loans Explained
  103. 103. Business Credit for Real EstateBusiness Credit for Real Estate
  104. 104. Business Credit for Real Estate • Most lenders view real estate as a high risk industry • As a result, many investors find it difficult to obtain financing to start and grow • As hard as it is for investors to obtain capital, business credit as a brilliant solution because there are no restrictions for real estate investors
  105. 105. Business Credit for Real Estate • There are a couple of ways investors can obtain capital through business credit • The first way is to build credit for your EIN that’s not linked to your SSN • This method requires a little more time to obtain, but there are no consumer credit, collateral, or cash flow requirements for approval
  106. 106. Obtain Vendor Accounts Quickly • To get started, use vendors to obtain your initial credit • Uline, Quill, and Seton are a few vendors who will give you credit when you have none now • Keep in mind, if you have no credit now some companies like Quill or Uline might require you place 2-3 orders first before they give you credit • Get approved, buy $50 or more at each source on your credit, and pay your bill on time
  107. 107. Get Store Accounts • Monitor your business credit reports, it will take about 30-90 days for your initial accounts to report • Once you have 5 accounts reporting to the business agencies, start applying for store credit cards… most other retail stores offer business credit accounts you can apply for
  108. 108. Obtain Cash Accounts • Once you have 10-15 accounts reporting to the business agencies, start applying for fleet and cash credit • Initial approval limits are typically $10,000- $40,000 • And, there are many ways you can take cash out to use for real estate purchases
  109. 109. Do NOT Do This… • Don’t put your SSN on the application • Don’t skip steps and apply for cash or store credit too early • Don’t apply unless your business is setup credibly
  110. 110. Unsecured Business Financing • Unsecured Business Financing, or UBF, is another way you can use business credit to purchase real estate • With UBF, you work with a financer who specializes in securing business credit cards • This is a VERY rare, very little know about program that few lending sources offer
  111. 111. Unsecured Business Financing • They can usually get you 3-5 times the approvals that you can get on your own • This is because they know the sources to apply for, the order to apply, and can time their applications so the card issuers won’t decline you for the other card inquiries
  112. 112. Unsecured Business Financing • The result of their services is that you usually get up to 5 cards that mimic the credit limits of your highest limit accounts now • Multiple cards create competition, and this means you can get your limits raised typically within 6 months or less of your initial approval
  113. 113. Unsecured Business Financing • The lender can also get you low intro rates, typically 0% for 6-18 months • Approvals can go up to $150,000 per entity such as a corporation • Approvals usually range from $2,000-50,000 • You’ll usually get 3-5 cards, so that means you can get up to 5 times that of your highest credit limit accounts now
  114. 114. Unsecured Business Financing • You must have excellent personal credit now, preferably 700 + scores… the same as with all business credit cards • You shouldn’t have ANY derogatory credit reported to get approved • You must also have open revolving credit on your consumer reports now • You’ll need to have 2 inquiries or less in the last 6 months reported
  115. 115. Unsecured Business Financing • You can get approved using a guarantor • You can even use multiple guarantors to get even more money
  116. 116. Business Credit for Real EstateBusiness Credit for Real Estate
  117. 117. How to Get a SBA LoanHow to Get a SBA Loan
  118. 118. SBA Qualification Details • SBA loans offer some of the best terms available in the business financing world • It’s important to note, SBA insures loans in the case you default, they actually don’t issue loans themselves • SBA loans are offered through many sources including loan brokers, and through most large conventional banks • To get approved there are many things you’ll need Get Approved Now…www.CreditSuite.com/GetFunding
  119. 119. SBA Qualification Details • To get approved you’ll need:  Good personal and business credit… SBA states you should not have any “blemishes” on your report  Good bank credit… An acceptable bank score requires you have at least $10,000 in your account over the last 90 days Get Approved Now…www.CreditSuite.com/GetFunding
  120. 120. • A resume showing you have industry experience • A well put together business plan • 3 years of business and personal tax returns… your business returns should show a profit • Current balance sheet and income statement… showing you have the funds to repay the loan SBA Qualification Details Free Consultation…www.CreditSuite.com/Consult
  121. 121. • To get approved you’ll need: • Account receivables… if you have them • Collateral to offset the risk… usually all business assets will be taken as collateral, and some personal assets including your home. It’s not uncommon to need collateral equal to 50% or more of the loan amount SBA Qualification Details
  122. 122. SBA Qualification Details • Articles of incorporation • Business licenses • Contracts with all 3rd parties • Lease Get Approved Now…www.CreditSuite.com/GetFunding
  123. 123. SBA Qualification Details • SBA’s approval requirements require: – You operate a for profit business – That you be “small” or not dominant in your space – Do business in the United States – Have reasonable invested equity – Use other financial resources, including personal assets, before seeking help – Show you have a need for a loan – Use the funds for a business purpose – Not be delinquent on government debts now
  124. 124. How to Get a SBA LoanHow to Get a SBA Loan
  125. 125. How to Get a Business LoanHow to Get a Business Loan
  126. 126. How to Get a Business Loan • A business loan can be obtained to start or grow a business • Loans are typically issued by banks, alternative lenders, and private investors • Business loans can be obtained based on your business strengths
  127. 127. How to Get a Business Loan • Conventional banks, which include the big banks like Wells Fargo, Bank of America, and Chase, issue bank loans that are guaranteed by SBA • This means if the borrower defaults, SBA covers up to 90% of the bank’s loss • These are the hardest loans to qualify for because you’ll need good financials, credit, and collateral
  128. 128. How to Get a Business Loan • Over 90% of business loans issued today come from alternative lenders and private investors • These loans are much easier to qualify for versus conventional bank loans • All you’ll need is one strength, not a nearly perfect business to get approved
  129. 129. How to Get a Business Loan • A business strength for alternative lending typically includes one of the following: – Good personal credit, or a guarantor who has good personal credit – Some type of collateral such as equipment, inventory, a 401k or stocks, account receivables – Consistent cash flow of 10k monthly or more
  130. 130. How to Get a Business Loan • If you have good personal credit, you can get approved with a simple consumer credit report review • If you have cash flow that’s consistent, you can be approved with a review of 6-months of bank statements • If you have collateral, you can get approved with a review of your assets
  131. 131. How to Get a Business Loan • If you do have good personal credit, collateral, and financials, your bank is the best place to secure a conventional SBA loan • If you have only one strength such as collateral, cash flow, or good credit, work with an alternative lender that offers that type of financing • Loan brokers also offer access to multiple funding options
  132. 132. How to Get a Business LoanHow to Get a Business Loan
  133. 133. How to Get a Small Business LoanHow to Get a Small Business Loan
  134. 134. How to Get a Small Business Loan • Most people go to their conventional bank when they need a business loan • But the Department of Revenue reported last year that over 98% of business financing is NOT coming from the big banks • Almost all business loans are now coming from Alternative Lenders Get Money for Your Business Now… www.CreditSuite.com/getfunding
  135. 135. How to Get a Small Business Loan • Unlike with conventional banks, alternative lenders have MUCH easier qualification requirements • So you can often get approved with an alternative lending source when you can’t with your bank… • … And even when you think there’s NO WAY you’ll get approved
  136. 136. How to Get a Small Business Loan • Alternative lending options now mean you can get approved for a business loan even if: • You have REALLY bad personal credit • You have no business credit • You don’t have any types of collateral • You are just starting a business • You don’t have tax returns… or your returns aren’t good • You have limited or no cash flow
  137. 137. How to Get a Small Business Loan • The key to getting approved is to know what lenders are looking for to issue you an approval • This way, you can meet their requirements before you apply • And you need to know what types of financing is available so you’ll know what to apply for
  138. 138. How to Get a Small Business Loan • There are 3 main types of alternative business loans • CASH FLOW-based loans are loans you can secure based on your cash flow • To get approved your cash flow should be: – Consistent – Over $10,000 monthly • And, you’ll need to be in business 12 months or longer
  139. 139. How to Get a Small Business Loan • CREDIT-based financing can get you up to $150,000 in unsecured financing • You can get 0% rates for 6-18 months • And, this credit reports to the business reporting agencies • You can get approved as a startup • This is no-doc financing
  140. 140. How to Get a Small Business Loan • To get approved you’ll need a consumer credit score of 685 or higher • You can also use a guarantor who has good credit • You should have low inquiries, and good revolving credit utilization
  141. 141. How to Get a Small Business Loan • COLLATERAL-based financing may work for you if you have some type of collateral • You can get low rates, and approvals are based only on the value and quality of your collateral • Acceptable collateral includes: – Account receivables and purchase orders – 401k, IRA, stocks, and bonds – Inventory – Equipment
  142. 142. How to Get a Small Business LoanHow to Get a Small Business Loan
  143. 143. How to Get a Business LoanHow to Get a Business Loan with Bad Creditwith Bad Credit
  144. 144. Business Financing Based on Strengths • This massive amount of available financing is available to you based on your business strengths • So as long as you have a strength to offset your weakness of having bad credit, you can be approved • This is often called compensating factors
  145. 145. Revenue Based Lending and Merchant Advances • One strength your business may have is consistent cash flow • With this strength, you can get approved with a review of 6 months of your business bank statements • If you manage your bank account responsibly and have been in business for one year, you can get approved regardless of personal credit
  146. 146. Revenue Based Lending and Merchant Advances • You can be approved for as much as 10-12% of your annual revenue • You can get funding in as little as 72 hours… sometimes even less • You won’t need any collateral or tax returns for approval
  147. 147. Account Receivable Factoring • Up to 80% of receivables is forwarded • 1 year in business required • Must be receivables from another business • Rates of 1.25-5%
  148. 148. Inventory Loans • You can get low-rate financing using your inventory to qualify • Get a working capital credit line • You’ll need about 500k in inventory to get approved • No collateral requirements
  149. 149. Equipment Financing • You can use equipment you own free and clear to get approved for financing, even with bad credit • You’ll need the first and last month’s payments • Loans up to $2 million
  150. 150. 401k and Securities Financing • 401k or IRAs can be used to get approved for as much as 100% of your 401k value • You can get a low-rate loan of 5% or less • There are no collateral or cash flow requirements • You can also use stocks and bonds to qualify • Get approved for as much as 90% of the value of your stocks and bonds
  151. 151. Equity Financing • You exchange a percentage of ownership in your business for financing • Much like on the TV show Shark Tank • Credit is NOT an issue • Equity investors are looking for a tested and proven concept –Sales really help approval
  152. 152. Crowd Funding • There are lots of sites for crowd funding • This type of funding gathers money from a “crowd”, or a lot of people instead of one big investor • If the crowd likes your idea, they may donate money to your project • Much of crowd funding doesn’t need to be paid back • Many investors are people you know
  153. 153. Business Credit • Not based on personal credit • Starts with a few vendor accounts who will initially offer credit • Initial accounts create trade-lines and a credit profile and score are established • The company’s new profile and score are used to get credit
  154. 154. Business Credit • Newly obtained credit is based on the company’s credit per the EIN, not the owners credit based on the SSN • Personal credit doesn’t matter as the credit linked to the EIN is used for approval
  155. 155. How to Get a Business LoanHow to Get a Business Loan with Bad Creditwith Bad Credit
  156. 156. How to Start a BusinessHow to Start a Business
  157. 157. How to Start a Business • The first step in starting a business is to select what industry you want to be in, or the product or service you want to sell • Brainstorm and come up with MULTIPLE ideas • Choose something you have a passion for as running a business will take A LOT of your time
  158. 158. How to Start a Business • The most successful and profitable businesses solve BIG problems • Choose a business that solves a problem AND relieves people or business’s pain • The bigger the problem you solve, the more relief from pain you provide, the more successful you’ll be
  159. 159. How to Start a Business • Once you know what your business will be, next it’s time to setup your actual company • To do this think of a name for your business that’s catch, possibly short, easy to spell, and that the domain is available for • Use Go Daddy to search for the domain, and consider only going with a company name that has a domain available • Also, try and make sure your name doesn’t reflect you’re in one of those high-risk industries
  160. 160. How to Start a Business • Once you know the domain is available, next check to see if the company name is available in your state • You can do this by searching in Google for “Secretary of State MY STATE” • You can then easily search for the company name.
  161. 161. How to Start a Business • If the name is available, follow the steps in your SOS website to setup a new entity • You’ll need to choose from profit or non-profit • You’ll need to choose an entity type • Consider a LLC or S-Corporation • Prices vary based on state • Start and complete the process, it only takes 5-10 minutes
  162. 162. How to Start a Business • Congratulations, you now have your own business! • Your next step is to get your EIN, which is how our IRS recognizes your company • This is FREE to get at irs.gov
  163. 163. Getting a New Bank Account • Your final step of setting up your new business is to setup your bank account the right way to ensure it’s easy for you to get credit and loans in the future • Your company name needs to match your entity paperwork • Your company address also needs to be the same • Make sure your EIN number is also the same on your bank account as it is on your EIN paperwork
  164. 164. How to Start a BusinessHow to Start a Business
  165. 165. How to Start a Business OnlineHow to Start a Business Online
  166. 166. How to Start a Business Online • The first steps to setup an online business include: – Selecting what products or services you want to sell – Choosing your business name – Setting up your entity with your Secretary of State – Getting your EIN from www.irs.gov – Setting up your business bank account
  167. 167. Setting Up Your Business • Setup your website next • You can do this cheaply using a company like www.templatemonster.com then use www.upwork.com to hire a contractor to put up your website • You’ll need the website template you buy from Monster, the content for each page, the domain, and the hosting which you can get from Go Daddy • Also get the professional email address
  168. 168. Setting Up Your Business • You’ll need to get a phone number from a place like Ring Central  Get a toll-free number  Get a fax number  List your phone number with 411, List Yourself can help (only need this before you apply for credit and financing) • Get a business address from a place like https://ipostal1.com/ or http://www.regus.com/
  169. 169. Setting Up Your Business • Get any licensing you’ll need from your county and for your industry • Make sure that your business name, address, etc. is the same on all of your documents • Get your logo using www.fiverr.com or www.99designs.com • Write out a short description of your company and what you do, with a call-to-action… such as visiting your website
  170. 170. Setting Up Your Business • Setup your business online congruently with free listings:  https://www.google.com/business  https://www.bingplaces.com/  https://smallbusiness.yahoo.com/local-listings • There are HUNDREDS of other free places you may consider… • Go to www.youtube.com/creditsuite and search for “Get Your Business “Listed” Correctly to Meet Credit Issuer & Lender Credibility Approval Standards”
  171. 171. Setting Up Your Business • Setup your social media channels  Facebook business page  Twitter  LinkedIn company page, and your individual profile  YouTube  Instagram • Consider buying some subscribers from www.Fiverr.com • Obtain a merchant account to accept credit cards http://www.creditsuite.com/merchant
  172. 172. Formulate Your Plan • Write down even a basic Business Plan that outlines clearly where you’re going and the plan you’re going to take to get there • Once you have a Mission Statement, then you can develop a basic plan of attack • This should be a Massive Action Plan, or your MAP to get to your end goal • With these things you’ll know where you’re going, and how to get their… basically you’ll have your Strategy
  173. 173. Access Capital • Make sure that getting access to money is one of the first things you strategize about! • After all, it’s one of the most common reasons for business failure per SBA • Start building your business credit RIGHT AWAY… it can supply you the startup capital you need • And you can get it regardless of other factors such as personal credit
  174. 174. Access Capital • Getting vendor credit immediately, store credit within 90 days, and cash credit within 120 days is essential to your success • You can then use that credit to grow your company… instead of relying on personal funds or profits alone • And, if you have collateral, cash flow, or good credit, that opens up even more funding options for you • You will need money to grow, and if your only source is personal money and credit or cash flow, you’re looking to grow at a snail’s pace
  175. 175. Access Capital • Even as a startup you can get business loans • If you have good personal credit or a guarantor who does, you can qualify for up to $150,000 in 0% unsecured financing • If you have a 401k or stocks or a partner who does you can qualify for 5% loans and credit lines • You can also get money to make purchases such as equipment
  176. 176. How to Start a Business OnlineHow to Start a Business Online
  177. 177. How to Fund and Grow Your BusinessHow to Fund and Grow Your Business
  178. 178. Access Capital • Make sure that getting access to money is one of the first things you strategize about when starting your business • After all, it’s one of the most common reasons for business failure per SBA • Start building your business credit RIGHT AWAY… it can supply you the startup capital you need • And you can get it regardless of other factors such as personal credit
  179. 179. Access Capital • Getting vendor credit immediately, store credit within 90 days, and cash credit within 120 days is essential to your success • You can then use that credit to grow your company… instead of relying on personal funds or profits alone • And, if you have collateral, cash flow, or good credit, that opens up even more funding options for you • You will need money to grow, and if your only source is personal money and credit or cash flow, you’re looking to grow at a snail’s pace
  180. 180. Access Capital • Even as a startup you can get business loans • If you have good personal credit or a guarantor who does, you can qualify for up to $150,000 in 0% unsecured financing • If you have a 401k or stocks or a partner who does you can qualify for 5% loans and credit lines • You can also get money to make purchases such as equipment
  181. 181. Marketing Your Business • To grow your business, your initial priority should be to start making sales • This should happen within your network first • Start promoting your social media channels and website to your friends and family • Ask them for their business, and who else they may know • You may even want to setup an affiliate program to pay them for referrals
  182. 182. Marketing Your New Business • Also consider local marketing as well such as going to homes or businesses door-to-door • And look into networking events you can go to such as Chamber of Commerce or BNI • There are many other smaller ones in your area probably available as well • Maybe even start your own if you have a lot of connections
  183. 183. Marketing Your New Business • Connections are key when you start out • So try to think about who you may know that’s a “connector” • Ask your friends and family as well • Even a few connectors can help you make a lot of sales early
  184. 184. Marketing • The BEST way to market and sell is using Free Information Theory • Basically, you teach and educate how people can get the results your product and service delivers • If you are selling tax services, start educating on how people can file their own taxes, what they should know, etc. • Teach people ALL that you know using free channels like Facebook, YouTube, and Twitter • And make great use of LIVE channels such as YouTube LIVE, Periscope, and Facebook LIVE
  185. 185. Marketing • When you teach and educate you build a loyal tribe • Many of those will use your free info and better their lives, and be your best testimonials • Many others will pay you for your services because they want to work with you • When you sell this way people want to do business with you versus you trying to “sell” them on why they should • They see you as a credible expert and trust and rapport is built making the sale much easier
  186. 186. Marketing • The key to success is CONTENT • Having this means you’ll have long-term success, or face possible failure without it • To get content, host a webinar every-other-week • Put that webinar on YouTube and Vimeo, as well as other free hosting sites • Make your video into an automated webinar • Create emails and social media posts out of it • Turn it into blog posts and free reports and guides
  187. 187. Marketing • Create articles and use www.Fiverr.com to distribute them • Make smaller videos out of your larger video and spread them out • Make a podcast out of your recording • And promote all of this in your email drip sequence we’ll talk about later as well as your social media channel
  188. 188. Marketing • Use free distribution channels to distribute your content  Social media  Online educational courses • This will not net you instant sales • But this will build your following, and within 6-12 months you’ll see EXPLOSIVE growth • To make this work you MUST have a good sales funnel
  189. 189. Marketing • A good sales funnel offers quality information through a drip sequence every few days • This is more information that gives you credibility and builds trust and rapport • Your email sequence should have written emails, videos, webinars, and more • Once created, your main marketing goal is to get leads into your sequence
  190. 190. How to Fund and Grow Your BusinessHow to Fund and Grow Your Business
  191. 191. Corporate Credit
  192. 192. Corporate Credit • Corporate credit is in the business name and based on the business’s ability to pay, not the business owners • Since the business qualifies for the credit, in some cases there is no personal credit check required from the business owner Grab Your Free Guide on Building Business Credit www.CreditSuite.com/EIN
  193. 193. Corporate Credit • The business can use its credit to qualify for revolving store credit cards like Staples, Lowes, Sam’s Club, Costco, BP, Wal-Mart, even MasterCard, Visa, and AMEX • The business can also qualify for credit lines and loans Grab Your Free Guide on Building Business Credit www.CreditSuite.com/EIN
  194. 194. Corporate Credit Benefits • A credit profile can be built for a business that is completely separate from the business owner’s personal credit profile • This gives business owners DOUBLE the borrowing power as they have both Personal and Business credit profiles built Grab Your Free Guide on Building Business Credit www.CreditSuite.com/EIN
  195. 195. Corporate Credit Benefits • Business credit scores are based only on whether the business pays its bills on time • A business owner can obtain credit much faster using their business credit profile versus their personal credit profile Grab Your Free Guide on Building Business Credit www.CreditSuite.com/EIN
  196. 196. Corporate Credit Benefits • Approval limits are much higher on business accounts versus personal accounts • Per SBA, credit limits on business cards are usually 10-100 times higher than consumer credit Grab Your Free Guide on Building Business Credit www.CreditSuite.com/EIN
  197. 197. Corporate Credit Benefits • When done correctly Business Credit can be built without a personal credit check • Business credit can quickly be obtained regardless of personal credit quality • And there is no personal credit reporting of business accounts Grab Your Free Guide on Building Business Credit www.CreditSuite.com/EIN
  198. 198. Corporate Credit Benefits • Most business credit can be obtained without the owner taking on personal liability, or a personal guarantee • This means in case of default, the business owner’s personal assets can’t be pursued Grab Your Free Guide on Building Business Credit www.CreditSuite.com/EIN
  199. 199. Corporate Credit Benefits • Corporate credit quality determines – If you’ll be approved for a business loan – How much you’ll be approved for – The terms you’ll be approved for • It’s important to know that ANYONE can pull and review your business credit reports – Lenders and credit issuers – Customers and clients – Competitors – Potential investors
  200. 200. Corporate Credit Benefits • This means they can see… – Payment history – High credit limits – Employees and revenue – Past payment performance – And much more Grab Your Free Guide on Building Business Credit www.CreditSuite.com/EIN
  201. 201. Business Credit Benefits • Almost any business can get business credit as long as it has an EIN number and entity setup • You don’t need collateral • You don’t need financials • You can be a startup • You just need to know the proper building steps Grab Your Free Guide on Building Business Credit www.CreditSuite.com/EIN
  202. 202. Corporate Credit
  203. 203. Corporate Credit Building
  204. 204. Obtain Vendor Accounts Quickly • Right now, as soon as you are done with this video, check out Uline, Quill, and Seton and apply for credit • Keep in mind, if you have no credit now some companies like Quill or Uline might require you place 2-3 orders first before they give you credit • Get approved, buy $50 or more at each source on your credit, and pay your bill on time Grab Your Free Guide on Building Business Credit www.CreditSuite.com/EIN
  205. 205. Get Store Accounts • Monitor your business credit reports, it will take about 30-90 days for your initial accounts to report • Once you have 5 accounts reporting to the business agencies, start applying for store credit cards… most other retail stores offer business credit accounts you can apply for Grab Your Free Guide on Building Business Credit www.CreditSuite.com/EIN
  206. 206. Obtain Cash and Fleet Accounts • Once you have 10-15 accounts reporting to the business agencies, start applying for cash credit, fleet credit, and auto financing • Home Depot has a great cash credit card, and so do many banks • Initial approval limits are typically $5,000- 10,000 Grab Your Free Guide on Building Business Credit www.CreditSuite.com/EIN
  207. 207. Do NOT Do This… • Don’t put your SSN on the application when building corporate credit • Don’t skip steps and apply for cash or store credit too early • Don’t apply unless your business is setup credibly Grab Your Free Guide on Building Business Credit www.CreditSuite.com/EIN
  208. 208. Corporate Credit Building
  209. 209. How to Build Business Credit
  210. 210. How to Build Business Credit • Make sure you have your business setup – Entity – EIN – Bank account • Make sure you’re setup credibly – Address – Phone, 411 listing – Website and email – Licensing – Congruent listings online
  211. 211. Get Your Credit Reports • Business credit reports are offered through Dun & Bradstreet, Experian and Equifax Commercial • Visit www.creditsuite.com/reports to do a FREE search to see if you’re listed now • Gert your FREE D-U-N-S number with D&B Grab Your Free Guide on Building Business Credit www.CreditSuite.com/EIN
  212. 212. Obtain Vendor Accounts • Get your initial tradelines, credit score, and credit profile with the BUSINESS reporting agencies by securing vendor accounts • These are accounts with net 30 type terms • Get approved with sources who will give you credit, even if you have no credit now • Try Uline, Quill, Seton and a few others… you should have 5 accounts setup Grab Your Free Guide on Building Business Credit www.CreditSuite.com/EIN
  213. 213. Obtain Store Accounts • Once you have 5 accounts reporting to the business agencies, start applying for store credit cards for your business • Leave your SSN off of the application • Amazon, Best Buy, Dell, BP, and most other retail stores offer business credit accounts you can apply for Grab Your Free Guide on Building Business Credit www.CreditSuite.com/EIN
  214. 214. Obtain Cash Accounts • Once you have 10 accounts reporting to the business agencies, start applying cash and fleet credit • Visa and MasterCard offer cash business credit cards • There are many fleet cards including Wex, Universal, Fuelman, and many others Grab Your Free Guide on Building Business Credit www.CreditSuite.com/EIN
  215. 215. How to Build Business Credit
  216. 216. Dun & Bradstreet Number
  217. 217. Dun Bradstreet Number • Dun and Bradstreet (D&B) is the largest business credit reporting agency with over 220 million records on file worldwide • The first step in getting setup with D&B is to setup your Dun & Bradstreet Number, or your D-U-N-S number Grab Your Free Guide on Building Business Credit www.CreditSuite.com/EIN
  218. 218. Are You Setup with D&B Now? • Check with D&B to see if they have a record setup for you now. • It’s FREE and easy to do this! • You can go directly to D&B’s website to check iUpdate for your business • Or, visit www.creditsuite.com/reports to see if you’re setup with D&B, Experian, or Equifax… all for FREE
  219. 219. Are You Setup with D&B Now? • If you pull up a record for your business with the reporting agencies, before you take another step you should consider pulling your actual reports • To do this, you’ll need to enroll for credit monitoring • In doing so, you’ll see if you have any credit reporting • You’ll also see if you have scores • And if you have negative items on your report, you can dispute those through iUpdate or through monitoring Grab Your Free Guide on Building Business Credit www.CreditSuite.com/EIN
  220. 220. Setup Your D-U-N-S… for FREE • If your search with D&B doesn’t show you have your D-U-N-S number, you’ll want to get it setup • In 1963, the introduction of the Data Universal Numbering System or D-U-N-S helped bring business information into the computer age • Today D&B maintains a database of over 213 million companies globally Grab Your Free Guide on Building Business Credit www.CreditSuite.com/EIN
  221. 221. D-U-N-S Number • The D-U-N-S number is a nine-digit number issued by Dun & Bradstreet and assigned to each business location in the D&B database, each having a unique, separate, and distinct operation for the purpose • Every business must first have a D-U-N-S number before Dun & Bradstreet will assign a Paydex business credit score
  222. 222. D-U-N-S Number • The DUNS number is the preferred method worldwide of identifying businesses • Unlike national Employment Identification Number (EIN), a D-U-N-S number may be issued to any business worldwide • It is used by many foreign governments including the US and Australia, European Commission, and even the United Nations • More than 50 global, industry, and trade associations recognize, recommend, or require DUNS
  223. 223. Setting Up Your D-U-N-S • You can search for your DUNS through the link at www.creditsuite.com/reports • Or you can go to www.dandb.com/free-duns-number • During the DUNS setup process you’ll be asked for A LOT of information • If you select that you’re a government contractor, you’ll get your DUNS in about 1-2 weeks • If you don’t pay D&B anything and aren’t a contractor, it can take up to 30 days to get your DUNS Grab Your Free Guide on Building Business Credit www.CreditSuite.com/EIN
  224. 224. Setting Up Your D-U-N-S • Here’s what the process looks like to get your DUNS:
  225. 225. Setting Up Your D-U-N-S • The process to obtain your DUNS will require about 10- 15 minutes • Once you’re done, D&B will email you • Reps will also start to call and email you to upsell you to the D&B Credit Builder program
  226. 226. Dun & Bradstreet Number
  227. 227. Dun & Bradstreet Vendor Management
  228. 228. Dun & Bradstreet Vendor Management • This credit is in the business name and based on the business’s ability to pay, not the business owners • Since the business qualifies for the credit, in some cases there is no personal credit check required from the business owner Grab Your Free Guide on Building Business Credit www.CreditSuite.com/EIN
  229. 229. Trade Credit • Vendor credit is sometimes refereed to as trade credit • This type of credit is extended from one trader to another for the purchase of goods and services • Trade credit facilitates the purchase of supplies without immediate payment • Trade credit is often used by business organizations as a source of short-term financing Grab Your Free Guide on Building Business Credit www.CreditSuite.com/EIN
  230. 230. Trade Credit • Trade credit is the largest use of capital for a majority of business-to-business sellers in the United States • For example, Walmart, the largest retailer in the world, has used trade credit as a larger source of capital then bank borrowing • Trade credit for Walmart is 8 times the amount of capital invested by shareholders • Trade credit is the second largest source of capital for Walmart, retained earnings is the largest
  231. 231. Trade Credit • Trade Credit is usually offered with terms including: • Net 10 • Net 15 • Net 30 • Net 60 • These forms of trade credit specify that the net amount is expected to be paid in full and received by seller within that 10, 15, 30, or 60 day time period Grab Your Free Guide on Building Business Credit www.CreditSuite.com/EIN
  232. 232. Using Vendors to Build Business Credit • Trade credit is VERY popular in the United States • But, of the millions of vendors who issue credit, over 97% of them do not report to the business credit reporting agencies • When using trade credit to build your business credit profile, it’s essential you find vendors that: – Will give you credit without a personal credit check – Report your credit to the BUSINESS credit reporting agencies
  233. 233. Vendor Account Management • Once you have vendor accounts reported with Dun & Bradstreet, the key to management is paying your bills on time or early • 100% of your D&B Paydex score is based on your payment history • If you pay your bills as agreed, you’ll get a good score • The earlier you pay your bills, the higher your scores will be Grab Your Free Guide on Building Business Credit www.CreditSuite.com/EIN
  234. 234. Dun & Bradstreet’s Business Paydex Score Are based on Payment History –Expect payment may come early 100 –Payment is prompt 80 –Payment comes 14 days beyond terms 70 –Payment comes 21 days beyond terms 60 –Payment comes 30 days beyond terms 50 –Payment comes 60 days beyond terms 40 –Payment comes 90 days beyond terms 30 –Payment comes 120 days beyond terms 20
  235. 235. Vendor Account Management • D&B’s Paydex score has an aspect known as weighted average • With the weighted average, the HIGHER the limits on your accounts, the more weight it has into your scores • So, when managing vendor accounts, make sure you pay the highest limit accounts first Grab Your Free Guide on Building Business Credit www.CreditSuite.com/EIN
  236. 236. Dun & Bradstreet Vendor Management
  237. 237. Experian Business Credit
  238. 238. Experian Business • Experian focuses on providing quality data and analytics to businesses to help them better assess risk • They possess a massive consumer and commercial database that they manage to help businesses obtain the best and most up- to-date information • Experian is the 2nd largest business reporting agency behind Dun & Bradstreet Grab Your Free Guide on Building Business Credit www.CreditSuite.com/EIN
  239. 239. A typical Experian business credit report will include… • A company’s registration and ownership details • Trading addresses • How quickly the business is paying its bills • A credit risk score • Court judgments • History of financial performance
  240. 240. A typical Experian business credit report will include… • Business Background Information • Company Financial Information • Credit Score and Risk Factors • Banking, Trade, and Collection History • Liens, Judgments, and Bankruptcies • Uniform Commercial Code Filings
  241. 241. Experian’s Intelliscore • Experian’s most recent score system is known as Intelliscore Plus, which they boast of as the next level in credit scoring • This method was released in 2008 • Intelliscore Plus takes into account hundreds of variables to offer a business score between 0-100, with 100 being the highest Grab Your Free Guide on Building Business Credit www.CreditSuite.com/EIN
  242. 242. Experian’s Intelliscore Breakdown • Historical Behavior 5-10 • Age, Industry, Size 5-10 • Credit Utilization 10-15% • Derogatory items 10-15% • Payments, Balances 50-60% Grab Your Free Guide on Building Business Credit www.CreditSuite.com/EIN
  243. 243. Experian’s Business Credit • 85% of Experian’s business score is based on payment history • So, they key to building business credit with Experian is to get accounts that report to them, and pay those accounts as agreed or early • Grab Your Free Guide on Building Business Credit www.CreditSuite.com/EIN
  244. 244. Experian’s Business Credit • Start with vendor accounts at places like Unline, Quill, and Seton • Once you have 3-5 accounts reporting with Experian, start applying for store credit next… leaving your SSN off the application • With about 10-15 accounts reporting across all reporting agencies, you can get fleet and cash credit, and start qualifying for loans Grab Your Free Guide on Building Business Credit www.CreditSuite.com/EIN
  245. 245. Experian Business Credit
  246. 246. CPN Number
  247. 247. What is a CPN? • A credit privacy number or credit profile number, CPN, SCN, or Secondary Credit Number, is a nine- digit ID that can be used as an identifier in cases where you need privacy • Like a SSN, a person can only have one CPN • It’s used as a unique identifier for your financial transactions and lets lenders and credit reporting agencies keep an eye on your borrowing history
  248. 248. What is a CPN? • A CPN is mostly used in cases where someone requires extreme privacy • For that reason, it’s popular among elected officials, celebrities and people in witness protection Grab Your Free Guide on Building Business Credit www.CreditSuite.com/EIN
  249. 249. Why Use a CPN • The theory is if you give lenders a different nine-digit number, they won’t be able to find your legitimate credit reports • And if they can’t find your legitimately lousy credit reports, they’ll approve your applications and start reporting the account information to the credit bureaus using the CPN, thus establishing a new credit report for you that is not connected to your legitimate credit report
  250. 250. Why Use a CPN • The supportive argument is that you’re not required to give a lender your Social Security number (SSN) when applying for credit, which is 100% true • You can certainly choose to withhold any identifying information from your lenders, but they can also choose to deny your application as a result. • What you CAN’T do legally is miss-represent your SSN
  251. 251. Why Use a CPN • If you choose to withhold your SSN from a lender and you wanted to not become a criminal, you’d have to go no further than leaving the SSN box empty • If you chose to place one of these CPNs (or another fake nine-digit number) in the SSN field, you will have just committed a Federal crime • In fact, according to the Federal Trade Commission lying on a credit application and misrepresenting your SSN are both Federal crimes
  252. 252. CPN Fraud • You cannot use a CPN in place of your SSN… it’s actually FRAUD!!! • And you can face being charged with ID theft, if the SSN was stolen
  253. 253. CPN Summary • CPN do exist, and are legal • But their intent is for specific situations that warrant privacy • CPNs can NOT legally be used in place of a SSN, for any purpose including the application of credit • In doing so you are lying on a credit application and misrepresenting your SSN… both of which are Federal crimes Grab Your Free Guide on Building Business Credit www.CreditSuite.com/EIN
  254. 254. CPN Number
  255. 255. CPN
  256. 256. What is a CPN? • A credit privacy number or credit profile number, CPN, SCN, or Secondary Credit Number, is a nine-digit ID that can be used as an identifier in cases where you need privacy • Like a SSN, a person can only have one CPN • A CPN cannot by used legally to apply for credit in place of a social security number Grab Your Free Guide on Building Business Credit www.CreditSuite.com/EIN
  257. 257. Why Use a CPN • If you chose to place one of these CPNs (or another fake nine-digit number) in the SSN field, you will have just committed a Federal crime • In fact, according to the Federal Trade Commission lying on a credit application and misrepresenting your SSN are both Federal crimes
  258. 258. CPN Fraud • Anyone can get a CPN for free • So don’t be fooled by anyone selling you a CPN, especially if they tell you it’s already “established” • In many of those cases, the CPN they are selling is actually a real person’s SSN, maybe a child or someone who is deceased • Tread lightly with anyone who is talking about you getting a new identity, that doesn’t really exist
  259. 259. CPN Fraud… What to Look For • The company tells you it’s perfectly legal to apply for credit using a CPN in place of your SSN • The company tells you to use an EIN to apply for personal credit • The company demands that you pay for a CPN • The company promises that you’ll no longer be associated with your old credit accounts
  260. 260. From Consumer FTC.Gov • Companies promising a “new credit identity” say they can help you hide bad credit history or bankruptcy for a fee. If you pay them, these companies will provide you with a nine-digit number that looks like a Social Security number. They may call it a CPN — a credit profile number or a credit privacy number • The credit repair companies may tell you to apply for credit using the CPN, rather than your own Social Security number. And they may lie and tell you that this process is legal. But it's a scam. These companies may be selling stolen Social Security numbers, often those taken from children. By using a stolen number as your own, the con artists will have involved you in identity theft • If you follow a credit repair company’s advice and commit fraud, you might find yourself in legal trouble. It’s a federal crime to: • lie on a credit or loan application • misrepresent your Social Security number • The bottom line is that if you use the number they sell you, you could face fines or time in prison
  261. 261. From TransUnion… • According to Cliff O’Neal, TransUnion’s spokesman, • “TransUnion does not use these so-called CPNs; we accept and report SSN as an identifier. TransUnion has checks and balances in its systems if someone attempts to use these numbers in place of their issued SSN. For example, we provide alerts designed to help creditors discover if the number provided in the SSN field on a credit application is not a valid SSN, or is an actual SSN of another consumer.”
  262. 262. From Equifax… • According to an Equifax spokesperson, • “Equifax does not issue or recognize CPNs as an acceptable form of personal identifiable information.” Grab Your Free Guide on Building Business Credit www.CreditSuite.com/EIN
  263. 263. From Experian… • According to Experian, • “Experian does not issue such a number (CPNs) and does not recognize them as valid. If a person uses a number other than their own Social Security number they may be at risk of committing fraud if that number is a valid Social Security number belonging to another individual.”
  264. 264. From the Social Security Administration… • During a 2011 Social Security Administration field hearing, Robert Feldt, Special Agent-in-Charge of the Social Security Administration Office of the Inspector General’s Dallas Field Division said, • “Numerous unscrupulous agencies and organizations are providing CPNs—also known as Credit Profile Numbers and Credit Protection Numbers—for a fee, as a method of creating a new, separate credit file for individuals with low credit scores, bankruptcy, and slow or late payments on their current credit record. Websites offering CPNs advertise a new credit file with the use of a CPN, at costs ranging from about $40 to as much as $3,500. Despite what many of these credit repair Websites imply, consumers should know that CPNs are not legal.”
  265. 265. From the FTC… • The Federal Trade Commission has also weighed in on the subject: • “Companies promising a ‘new credit identity’ say they can help you hide bad credit history or bankruptcy for a fee. If you pay them, these companies will provide you with a nine-digit number that looks like a Social Security number. They may call it a CPN — a credit profile number or a credit privacy number.” • Often, scammers purporting to be selling CPNs are selling stolen Social Security numbers instead, the FTC warns. Scammers often use Social Security numbers stolen from children for this purpose. And you could actually unwittingly be committing identity theft if you apply for credit using a stolen Social Security number
  266. 266. More From the FTC… • Promoting False Identification Numbers To Create A "New Credit Identity" Is Illegal: FTC • https://www.ftc.gov/news-events/press- releases/1999/10/credit-identity- defendants-settle-ftc-charges Grab Your Free Guide on Building Business Credit www.CreditSuite.com/EIN
  267. 267. CPN Summary • CPN do exist, and are legal • But their intent is for specific situations that warrant privacy • CPNs can NOT legally be used in place of a SSN, for any purpose including the application of credit • In doing so you are lying on a credit application and misrepresenting your SSN… both of which are Federal crimes
  268. 268. CPN
  269. 269. Shelf Corporation Funding
  270. 270. Shelf Corporations • A shelf corporation is a paper or shell corporation that is administratively formed and then "put on a shelf" for several years to age • The term "shelf" or "aged" only refers to the fact that the company has already been filed and is sitting "on a shelf" waiting to be purchased
  271. 271. Shelf Corporations • A Shelf Corporation is a company that was created years ago for the sole purpose of being sold in the future simply for the value of its age • A person forms a company and does nothing with the corporation other than file the annual reports and cover the annual fees • Once the corporation is a few years old it has a sort of value for the right person
  272. 272. Negatives of Shelf Corporations • Shelf corporations are not looked upon favorably by regulators, lenders, or the business reporting agencies • Many say they are unethical, borderline illegal, and some call them a fraud Grab Your Free Guide on Building Business Credit www.CreditSuite.com/EIN
  273. 273. Negatives of Shelf Corporations • From Dun & Bradstreet… • “It is unclear whether it is legal to use shelf corporations to access credit. It is clear, however, that this is a deceitful, unethical maneuver that serious entrepreneurs should avoid.”
  274. 274. Negatives of Shelf Corporations • "Shell and shelf companies…can be created domestically or in a foreign country. Shell and shelf companies are often formed by individuals and businesses to conduct legitimate transactions • However, they can be and have been used as vehicles for common financial crime schemes such as money laundering, fraudulent loans and fraudulent purchasing • By virtue of the ease of formation and the absence of ownership disclosure requirements, shell and shelf companies are an attractive vehicle for those seeking to conduct illicit activity." • FDIC Special Alert, April 24, 2009
  275. 275. Negatives of Shelf Corporations • Is this practice illegal?  • “Our conclusion was that it is clearly unethical and  possibly illegal. I understand that small business  owners are strapped for cash and unable to get loans,  but they should stay away from these things. If you  can’t get a loan from a bank, you need to look at other  options and maybe even close your doors. It’s a bad  time, but if you can’t secure capital with what your  company has in assets, liabilities, and cash flow, you  shouldn’t try to fool a financial institution.”   Businessweek 
  276. 276. Negatives of Shelf Corporations • Many lenders now look at the bank account start date as the corporation start date • Most shelf corporations don’t come with established bank accounts • Some shelf corporations have actual credit problems making it harder to get funding, not easier
  277. 277. Shelf Corporation Funding • ANY business can build business credit without needing a shelf corporation • Most credit issuers do not look at your time in business, they look at how many tradelines you have • You can build initial business credit using vendors like Uline, Quill, and Gemplers Grab Your Free Guide on Building Business Credit www.CreditSuite.com/EIN
  278. 278. Shelf Corporation Funding • With 5 accounts reported, you can get store credit • With 10-15 accounts reported, you can get fleet and cash credit • And you’ll have built a LEGITIMATE business credit report that won’t get flagged and shut down Grab Your Free Guide on Building Business Credit www.CreditSuite.com/EIN
  279. 279. Shelf Corporation Funding

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