How to Work with a Commercial Credit Builder

Have you ever wondered if there’s a good commercial credit builder out there, and how it works? Do you know why a corporate credit builder is a good idea?

Our Credit Line Hybrid: Working Directly With a Commercial Credit Builder

With this form of business financing, you partner with a lender who focuses on securing business credit cards. This is a very unusual, very few know of program which few lending sources offer. They can in most cases get you more approvals that you can get on your own.

This is because they are familiar with the sources to apply for, the order to apply, and can time their applications so the credit card issuers won’t refuse you for the other credit card inquiries. Multiple credit cards generate competition, and this means they will raise your limits, in most cases within 6 months or fewer of initial approval.

This, in essence, is what it means to work with a commercial credit builder.

Approvals with a Commercial Credit Builder

So approvals can go up to $150,000 per entity like a corporation. Not only will you get cash, but you build your business credit also so within three to four months, you can then use your new business credit to get even more money.

Details

You will get credit with no security, assets, or collateral. But the lender has no collateral to collect in case of default. Because there is no collateral, and they don’t look or care about your cash flow, the only thing that matters is your personal credit.

Like with anything, there are HUGE benefits in working with a source who specializes in this area. The results will be much better than if you attempt to go at it by yourself.

Qualifications

You will have to have excellent personal credit right now.

Guarantors Welcome

Use a guarantor or a credit partner in order to boost the numbers. Often these people want a piece of the business in trade for their assistance. Creditors want to know you’ll pay them back.

Fees for a Commercial Credit Builder

All lenders within this space charge a 9 to 15% success based fee and you only pay the cost off of what you secure. Bear in mind, you get a lot of added rewards and more money with this program than you’d get on your own, which is why there’s a fee, the same as all other lending programs.

You can get approval making use of a guarantor and you can even use various guarantors to get even more money. There are also other credit cards you can get making use of this very same program but these credit cards only report to the consumer reporting agencies, not the business reporting agencies. They are consumer credit cards versus business credit cards.

Benefits of Working with a Commercial Credit Builder

They offer similar benefits including 0% intro APRs but they’re much easier to qualify for.

With all previous credit cards above, you must have good consumer credit in order to get approval but what happens if your personal credit is not good, and you do not have a guarantor?

This is the time when building business credit makes a great deal of sense even when you have good personal credit. As setting up your company credit helps you get even more money.

A Word to the Wise

Responsible credit management is a must. Always use credit responsibly! Don’t borrow more than you can pay back. Keep an eye on balances and deadlines for payments. Paying on time and in full does more to raise scores than virtually anything else.

Unsecured Business Credit Cards

Most of these credit cards will report to the consumer credit reporting agencies. They all need a personal guarantee from you. You can get approval normally for one credit card at the most as they stop approving you when you have two or more inquiries on your report.

Most credit card providers feature business credit cards including Capital One, Chase, and American Express. These have rates much like consumer rates and limits are also similar.

Some of them report will to the consumer reporting agencies. And some will report to the business bureaus. Approval requirements resemble consumer credit card accounts.

Inquiries

Ordinarily, when you apply for a credit card you put an inquiry on your consumer report. When other lenders see these, they won’t approve you for more credit since they do not know how much other new credit you have recently obtained.

So they’ll only approve you if you have fewer than two inquiries on your report within the most recent six months. Any more will get you declined. Here’s where working with a commercial credit builder comes in handy.

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Establishing Business Credit

Business credit is credit in a business name, in association with the business’s EIN number, and not the owner’s Social Security Number. When undertaken correctly, you can acquire company credit without a personal credit check and no personal guarantee. This is something many other credit cards can’t deliver.

You can get four types of company credit cards. First is vendor credit, which offers net 30 terms in order to set up a business credit profile. Then is retail credit, where you will get credit cards with high limits at most establishments.

Next is fleet credit.  This is credit to fuel, service, and maintain business vehicles. And then there’s cash credit, which includes Visa, MasterCard, and American Express credit cards that you can use anywhere. You can get these without any credit check or guarantee. Limits are usually $5,000 to $10,000 to get started, and can exceed $50,000.

Make Your Work with a Commercial Credit Builder Really Count: Build Business Credit with On-Time Payments to Private Investors and Alternative Lenders

Private investors and alternative lenders also grant credit lines. These are easier to qualify for than conventional SBA loans. They also necessitate much less documentation for approval. These alternative SBA credit lines typically require good personal credit for approval.

Unlike with SBA, many of them don’t need good bank or business credit approval. Most of these sorts of programs call for two years’ of tax returns. Tax returns will need to show a profit. Rates can vary from 7% or more and loan amounts range from $25,000 into the millions. Loan amounts are often based upon the revenues and/or profits on tax returns. At times lenders may ask for other financials including a profit and loss statement, balance sheets, and income statements.

Takeaways

Your business can get credit cards and financing with a commercial credit builder, if you know where to look. Learn more here and get started toward building business credit.