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Foolproof: The Case for Business Credit Building Programs

Janet Gershen-Siegel
February 4, 2018
business credit building programs Credit Suite

Business Credit Building Programs

What do you think of business credit building programs? Business credit building programs are just terrific. Here’s why.

Building business credit means that your company gets opportunities you never felt you would. You can get all new equipment, bid on realty, and deal with the company payroll. And you can do so even when times are a bit lean. This is specifically helpful in seasonal business enterprises, where you can go for months with simply minimal sales.

As a result of this, you need to work on growing your business credit. Boost and maintain your scores and you will have these opportunities. Do not, and either you do not get these chances, or they will cost you a lot more. And no business owner wants that. You ought to know what affects your business credit before you can make it better.

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Business Credit Building Programs: Credit History Length Matters

This is basically the length of time your company has been using business credit. Obviously newer small businesses will have short credit histories. Though there is not so much you can particularly do about that, do not stress. Credit reporting agencies will also look at your personal credit score and your very own history of payments.

If your own personal credit is good, and in particular if you have a fairly lengthy credit history, then your individual credit can come to the rescue of your business. That is, you did not just get your first credit card a short time ago.

Naturally the converse is also right. So, if your consumer credit history is bad, then it will have an effect on your corporate credit scores until your small business and consumer credit can be split.


Business Credit Building Programs: Your Payment History is Important

Overdue payments will impact your business credit score for a good seven years. If you pay your company (and personal) debts off, as speedily as possible and as completely as possible, then guess what happens? You can make a very real difference when it concerns your credit scores.

See to it to pay in a timely manner and you will experience the rewards of punctuality. Payment history matters more than anything else.

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Business Credit Building Programs: Your Personal Credit can bear upon Your Business Creditbiz credit building program Credit Suite

Are you having a bad business year? Then it could wind up on your personal credit score. And in the event that your business has not been around for too long, it will directly affect your business credit. However, you can separate the two by taking measures to separate them.

As an example, you can credit cards solely for your small business, or you open up business checking accounts and other bank accounts (or even get a business loan). Then the credit reporting agencies will start to treat your individual and company credit on an individual basis. Also, ensure to incorporate, or at the very least file a DBA (doing business as) status.

You can also take care of your company’s statements with your business credit card or checking account. And make sure it is the business’s name on the bill and not yours.

Business Credit Building Programs: The Credit Reporting Bureaus Can Just Plain Get It Wrong

Just like every organization around, credit reporting agencies like Equifax and Experian are only as good as their records. If your company’s name is like another’s, or your name is a lot like another small business owner’s, there can possibly be some errors. So keep an eye on those reports, and your business report at Dun & Bradstreet, PAYDEX. Remain on top of these reports and question charges with records and crystal clear communications. Do not just let them stay wrong! You can correct this!

And while you’re at, it you should also be overseeing the credit reporting bureau which solely handles individual and not company credit. So, that is TransUnion. If you do not know how to pull a credit report, do not fret. It’s easy.

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Business Credit Building Programs: The Method

How Small Business Credit Builder Programs Work

Let’s investigate unsecured business credit as a way to establish company credit. These will report to business CRAs, not individual CRAs. You do not need proof of cash flow or collateral. There is no time in business requirement. Only pay on what you owe, not like a loan.

You can typically get a 0% introductory rate (usually 6 to 18 months). This is ideal for startup businesses and high-risk industries. It is how business credit builder programs work.

The Main Concept

A lender works on your behalf to secure credit cards for you. The business is neither a loan provider nor a card issuer. Instead they operate as experts in getting credit cards. And they work to apply to get you the most credit they can obtain.

Virtually all the time, their tactics to get you credit result in much more than you could get on your own. This is because they go for multiple cards for you.

Get Terrific Credit Cards

They work to get you two kinds of cards. The first is personal cards, which report to consumer credit reporting agencies. And the second is small business credit cards, which do not report to consumer CRAs.


Credit is acquired with no security, assets, or collateral. 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.

With a 650 you will get just personal cards. But with a 680 credit score, you will get both business and personal cards.


Having many cards creates competition; get your limits raised typically within six months or less from initial approval. You can get approvals to $150,000 per entity, such as a corporation. Most lenders do not offer or advertise this.

You will get cash, and build business credit, too. Within 3 to 4 months, use your newly developed company credit to get even more money.


Here’s how to qualify for unsecured business credit. You need high quality credit with no derogatory reporting. This means: no bankruptcies, ever, on the report, but you might get an approval with bankruptcy, if not on report.

Any judgments and tax liens must be paid off. You can have no credit counseling, and no overdue payments in the last 12 months. You can have no active outstanding collections in unpaid status, less than $500 may be okay. And you can have no foreclosures or late mortgage payments.

You need to have at least one bank card with a three-year history or $3,000 limit. If there is no car loan or mortgage, then you will need two bank cards.

Balance/Limit Ratios

They consider your balance/ limit ratios on existing revolving accounts. The lower the ratio, the higher the amount of the approval. A 30% ratio is a requirement. This looks at overall percentage, and individual percentage on each account.

Credit inquiries are a big factor tying into approval. More than six inquires in six months will be excessive. Lenders do not wish to see the person is applying for new credit, especially no other revolving accounts.

Guarantors Welcome

Use a guarantor or a credit partner to boost the numbers; frequently these people want a piece of the business in exchange for their assistance. Creditors want to know you’ll pay them back. Most sources will charge 9 to 12% success-based fees. Only pay the fee off what you secure.


Pay an average of 10% on the amount you borrow. Lenders on all loan programs charge fees; you certainly pay 5% or more even on an SBA loan. But this program, like most others including the SBA, will “roll-in” your fee. So you do not pay up front. Once you get your cards, the fee is charged; this is one invoice per card.

A Word to the Wise

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

Business Credit Building Programs: Takeaways

Once you understand what has an effect on your small business credit score, you are that much nearer to creating enhanced business credit. Business credit building programs can help. And learn more here and get started toward building business credit, too.

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