Build Credit For Your Business
Federal Tax ID Number
The Credit Strong business product allows you to build credit for your business using your EIN, instead of your SSN.
With a Credit Strong business credit builder account, you can quickly and easily build $10,000 of installment loan payment history. Credit Strong offers two business credit builder accounts with affordable monthly payments.
- Building up to 120 months of payment history for just $115 month, or
- Building up to 60 months of payment history for just $199 per month
Besides the fact that we are a division of an FDIC bank –
- It is the only product out in the market with a Financial Tradeline available for small businesses
- We report to most commercial credit bureaus
- Access to a 10K loan (from an FDIC Bank) with an easy underwriting process. Helps you build business credit using EIN
- Low payments and effective credit builder.
- All Small- Medium businesses that can benefit from lending, building relationships with vendors/governmental vendors, getting SBA loans, and vendor tradelines
- Businesses like – mechanics, agencies (advertisers, social media, personal coaching etc.), landscape, bakery shops, small restaurants, car services, transportation services, home care, daycare, cleaning services, and more!
The qualification process is straightforward and takes less than 7 minutes from start to end.
To qualify a business must:
- Have an EIN
- Not be in the agricultural industry
- Be a business entity (LLC, Partnership, Corporation) – charitable and nonprofit organizations do not qualify
- Have one owner or a main owner who owns 25% or more of the business, and no co-owners own more than 25%
- Be registered with the Secretary of State for at least 3 months before applying
- Have an applicant that can be identified as a person
Business line of credit (also known as business credit line) is a type of credit facility that businesses can get in order to fund short-term requirements such as operating expenses, payment to workers or equipment and even for debt consolidation. In the past, getting a business line of credit was difficult as banks did not view businesses as good debtors. As a matter of fact, they viewed them as high risk unsecured loans, which meant you had to provide collateral in the form of real property or assets such as inventory and raw materials. However with the advent of modern technology, many lenders are now willing to offer you business lines of credit and if you use them correctly, they can be extremely useful tools to help you expand your business and increase your profits.
Business lines of credit are different than personal credit scores. While personal credit scores are based on how well you have kept up with payments in the past, business credit scores are based on how well you have managed your finances in the past. That means that lenders require a much stricter credit process before they issue business credit scores to borrowers. They do this by assessing your payment history and your debt to income ratio. To obtain business credit scores, the lenders require you to disclose personal information as well such as your name, address, social security number, employer and tax information.
To begin on the right foot and learn how to build business credit, you must identify the current credit issues you face in your life. Begin by reviewing all of your outstanding accounts and prioritize the ones that are the most important to you. The next step is to review your payment history with each account to identify patterns such as too many late payments or other errors that may negatively impact your ability to obtain a new line of credit in the future. In addition, review your debt to income ratio for each of your accounts to ensure that you are not spending more than you make.
Your credit rating is an imperfect reflection of your financial situation, but it can be improved significantly if you take the necessary steps to improve your credit history. If you have poor credit, there are things you can do to prepare for what lies ahead. Begin by establishing a good budget and learning how to save money for emergencies. Next, start paying down large debts such as credit card balances and other high interest expenses, and work on building excellent business credit ratings by making all of your payments on time and in full.
Another critical element of how to build business credit score is obtaining the financing you need. Many lenders require a Dun & Bradstreet business credit report in order to evaluate your application for financing. The Dun & Bradstreet company have developed a scoring methodology, which considers both the borrower’s and lender’s credit history. Because of this comprehensive evaluation, potential lenders are more likely to provide you with money when you have a strong business credit report containing no missed payments or late fees.
An excellent business credit rating is only as good as the information contained in it. For this reason, a thorough review of your credit report is necessary in order to find out what items negatively affect your score. Review everything from your balance owed to the number of days past due to missing payments. Pay bills on time and in full to reduce the number of negative items. Review your mortgage, line of credit, and auto loan applications to ensure that the information reported is accurate. Errors in these applications could prevent you from obtaining business financing in the future.
If you want to obtain business financing, one of the best ways to achieve this goal is to have a strong business credit score. This will also attract more favorable terms and interest rates on any loans you are given. You should always work with a reliable broker when you want to obtain financing for your business. A qualified broker can evaluate your business finances, negotiate a reasonable loan term, and help you obtain the financing you need at the best terms possible.
Establishing business credit is an important step when you are first beginning your business. The steps above are just some of the steps needed to make this process easier. Working with a qualified broker can make the entire process seamless, but you will still need to do the other steps necessary. Your goal is to establish a long-term business relationship with the lender so you can receive the financing you need at attractive terms.