Corporate Credit
AN AMPLE SUPPLY OF CAPITALCapital = Money  Your Money   Tends to be limited   Intrudes on Personal Life needs and desire...
• Business Credit – Is also known as Trade Credit or Corporate  Credit• Trade Credit is the single largest source of lendi...
PERSONAL CREDIT PROFILE           BUSINESS CREDIT PROFILE  • FICO/Beacon                     • Paydex/Intelliscore  • Scor...
Factors Affecting Score CompilationPERSONAL SCORE                   BUSINESS SCORE•   35% Payment History          •   100...
Two-thirds of new employer firms survive at least two years, and abouthalf survive at least four years.Major factors in a ...
Business credit can be built with any business entity, including asole-proprietorship or partnership, however a Corporatio...
Why is Business Credit so Widely Used?              So Widely Misunderstood?                 So Hard to Achieve?     No La...
•   Credit reporting agencies are serving you  •   Good credit is built automatically  •   No news is good news  •   Good ...
(Small Business Advocacy Stats)• 23.7 million business in the United States in 2003• 99.7% are small businesses less then ...
In any ONE Minute There are:251   Suits/Liens/Judgments Filed246   Telephone Number Changes58    Address Changes81    Offi...
You and a Corporate EntityYou as a Sole Prop                                       CREDIT                            CREDI...
W2-Individual           Sole Prop Entity          Corporate EntityPersonal Credit Only    Personal & Business       Person...
The „Braking Factor‟Personal Credit                                                 GROWTH TARGETCurve                    ...
•   Reduces the need for personal credit checks•   Reduces the need for personal guarantees•   Access to lines of credit f...
What Business Credit Can Do For You           FROM THIS                                                         TO THIS• N...
• Don‟t “buy” good credit  • Don‟t only rely on personal credit  • Don‟t start without being in complianceWHEN TO ESTABLIS...
• Be in ComplianceBUILDING BUSINESS CREDIT • Establish lines of credit •   Build trade references & payment history •   Ge...
• The following are ways to establish a Business Credit Profile:• How:    Business credit profiles can be built without t...
Continued• How:    You can try to work directly with each business credit bureau     to obtain a score and profile,• Prob...
Continued• How:    You may use your personal credit to obtain credit for your     business with companies who report to t...
• Work with National Business Support Services, LLC, a separate  company from the credit bureaus that will work for you an...
Credit Builder Program!         Computer Line of Credit -------- $25,000         Equipment Lease ------------------ $15,00...
FIRST: We Made Sure They Were IN COMPLIANCETier 1 Credit:   Smaller lines of Trade Credit                 • No Personal Gu...
• The Business Credit Builder is for those companies who have a  need to establish their business credit profile and obtai...
DeliverablesDetailed Research Report for compliance and problem areasCredit Profiles with the Major Business Credit Bureau...
• START TODAY  – USE OTHER PEOPLES MONEY TO GROW YOUR BUSINESS  – Obtain the education needed to grow your business• CONTA...
Nevada Business Solutions Group, LLC5550 Painted Mirage Road, Ste 320Las Vegas, NV 89149(Office) 702.818.1705(Fax) 702.818...
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Building Corporate Credit

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Corporate Credit Building
NBSG, LLC provides a range of credit services developed with the entrepreneur and small to medium size business in mind. We help business owners build their business credit.

• Setup a Business Entity
• Obtain a Tax ID Number (EIN)
• Establish a Business Bank Account
• Register with Business Credit Bureaus
• Establish Business Credit History

www.nevadabusinesssolutions.com

Published in: Business, Economy & Finance
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Building Corporate Credit

  1. 1. Corporate Credit
  2. 2. AN AMPLE SUPPLY OF CAPITALCapital = Money Your Money  Tends to be limited  Intrudes on Personal Life needs and desires  Risks Loss of previous successes Other People’s Money  Wider sources and deeper pockets  Ability to separate Personal and Business Life BUSINESS CREDIT = OTHER PEOPLE‟S MONEY BUSINESS CREDIT = TIME TO TURN INVOICES TO CASH BUSINESS CREDIT = ABILITY TO HANDLE THE UNEXPECTED
  3. 3. • Business Credit – Is also known as Trade Credit or Corporate Credit• Trade Credit is the single largest source of lending in the entire world, even more then banks loan to businesses• Trade Credit is when one business sells a product or service on credit terms to another business• Why would so many businesses extend credit terms?  It allows them to sell more goods and services  Their clients want credit  Their clients need credit
  4. 4. PERSONAL CREDIT PROFILE BUSINESS CREDIT PROFILE • FICO/Beacon • Paydex/Intelliscore • Scores from 350-850 • Scores from 0-100 • Credit score determines • Credit score determines  Loan/lease approvals  Loan/lease approval  Interest rates  Interest rates  Insurance rates  Credibility of business • Three major credit bureaus • Four major credit bureaus • Tracked by S.S.N. • Track by E.I.N./Name/Address • Consumer Protection Laws • No State/Fed Regulation • PRIVACY • NO PRIVACY
  5. 5. Factors Affecting Score CompilationPERSONAL SCORE BUSINESS SCORE• 35% Payment History • 100% Payment History• 30% Balances Owed • Not all vendors Report• 15% Length Of Time • VERY Interpretive by Bureau• 10% Types of Credit • „High Risk‟ & „No Credit‟ Lists• 10% New Credit  # Recently Opened  # Recent Inquiries  Time since recent Open  Time since last Inquiry
  6. 6. Two-thirds of new employer firms survive at least two years, and abouthalf survive at least four years.Major factors in a firm‟s remaining open include:• An ample supply of capital• The owner‟s education• Large enough to have employees• The owner’s reason for starting the firm in the first place, such as freedom for family life or wanting to be one’s own bossSources: Business Success: Factors Leading to Surviving and Closing Successfully by Brian Headd, Center for Economic Studies, U.S. Bureau of the Census, Working Paper #CES-WP-01-01, January 2001; Advocacy-funded research by Richard J. Boden (Research Summary #204)
  7. 7. Business credit can be built with any business entity, including asole-proprietorship or partnership, however a Corporation or LLCis recommended. • Corporation or LLC - many individuals incorporate to separate their personal and business liability • When the owners or officers apply for credit, many times they provide a personal guarantee which now links them personally, defeating the purpose of the corporate structure in the first place • By having a business credit profile and score, there will be many opportunities in which no personal guarantee is required
  8. 8. Why is Business Credit so Widely Used? So Widely Misunderstood? So Hard to Achieve? No Laws Protecting the Business‟ Rights from inaccurate information on the credit report• Lack of information provided by business and the government• Must research who are companies that offer credit• Must research who the companies are that report trade experiences• Must research companies who don’t require a personal guarantee• Must research companies that don’t require a personal credit check• It can take hundreds of hours of research to find all this
  9. 9. • Credit reporting agencies are serving you • Good credit is built automatically • No news is good news • Good personal credit = Good business creditWHAT IF NO CREDIT? • Costly • Limits options • Limits growth • Puts personal assets at risk • Forces you to deal in cash • Increases likelihood of failure
  10. 10. (Small Business Advocacy Stats)• 23.7 million business in the United States in 2003• 99.7% are small businesses less then 500 employees• 572,900 new companies were formed in 2003• 584,800 business closed in 2003 a drop of 11,900• 1.08 new businesses are formed every minute• 1.2 businesses fail every minute• A change of share ownership occurs every 6 minutes• A company changes control every 15 minutes
  11. 11. In any ONE Minute There are:251 Suits/Liens/Judgments Filed246 Telephone Number Changes58 Address Changes81 Officer Changes41 New Business Openings11 Name Changes7 BankruptciesThis Volume of Activity is vulnerable to MISTAKES: • Wrong names on Applications • Clerical Errors • Wrong or Misread SSN, EIN • Payments Applied to Wrong Vendor/Business
  12. 12. You and a Corporate EntityYou as a Sole Prop CREDIT CREDIT CREDITPersonal Business Business Personal Life & Life & Life & Life & Assets Assets Assets Assets LIABILITY LIABILITY LIABILITYRISKY & LIMITING SAFE, SECURE, FLEXIBLE & EXPANDABLE
  13. 13. W2-Individual Sole Prop Entity Corporate EntityPersonal Credit Only Personal & Business Personal & Business Credit NOT Separated Credit SeparatedAvg. Statistics Apply Avg. Statistics NO Avg. Statistics Apply Longer Apply To Personal Credit Business Creates: Business Credit Stats - More Inquiries Apply To Business - Higher Balances - More Late Pays - Less Available CreditCredit Score Control Personal Credit Score Personal Credit Control Out Of Control/Drop Biz Qualified For Credit
  14. 14. The „Braking Factor‟Personal Credit GROWTH TARGETCurve STEADY STATE Personal Credit Brake Applied Personal Credit No Longer Supports Business Credit NeedsRevenue Curve More Inquires = Lower Score Higher balances = Lower Score Less Available Credit = Lower Score Late Payments = Lower Score
  15. 15. • Reduces the need for personal credit checks• Reduces the need for personal guarantees• Access to lines of credit for business expansion• Increase your monthly cash flow• Save money by lowering the interest you pay• Prepare for current and future lending needs• Save time with major convenience of purchasing with open lines of credit instead of cash• Establish a business image and credibility• Greatly increase your ability to succeed long term• Achieve compliance with the business credit market• Peace of Mind, knowing business creditors cannot attach your personal assets• Get Personal Credit back to averages for higher score• Separate Personal and Business Credit
  16. 16. What Business Credit Can Do For You FROM THIS TO THIS• No Business Credit HOW? • Available Biz Credit Lines• Burdened/Poor Personal Credit • Limited Personal Guarantees Build The Business• Not Able To Pay Yourself Credit Bridge with • Strengthened Cash Flow• Every $ In Goes OUT Again NBSS • Qualified For More Credit• Personal Assets On The Line • Personal Liability Reduced• Loans Declined • Sleeping Easier• NEED $ 1 2 3 4 • $s Remaining In Pocket Profile Basic Report & More $ Credit Score
  17. 17. • Don‟t “buy” good credit • Don‟t only rely on personal credit • Don‟t start without being in complianceWHEN TO ESTABLISH CREDIT? • Before your credit profile is created • Before you need it • Now!
  18. 18. • Be in ComplianceBUILDING BUSINESS CREDIT • Establish lines of credit • Build trade references & payment history • Get listed with the bureaus • Continue to work with vendors and up limits • Follow a structured program and work with the expertsCREDIT BUILDING TIMETABLE • Not easy, but possible to do on own • Need to start today • 3-4 year process (possibly never) • Our expertise accelerates the timetable to less than 1 year
  19. 19. • The following are ways to establish a Business Credit Profile:• How:  Business credit profiles can be built without trying, if you are willing to wait years for it to happen on it‟s own, however there is no guarantee you will ever have a score• Problem:  Business owners can operate their companies for years and never build a business credit profile or score - we have one client who set up his company 22 years ago and was still using his personal credit before coming to us  If you don‟t have the knowledge of how business credit is established and maintained you may never have it  DON‟T FAIL IN COMPLIANCE
  20. 20. Continued• How:  You can try to work directly with each business credit bureau to obtain a score and profile,• Problem:  DON‟T FAIL IN COMPLIANCE  If you have not prepared your business properly before going to the bureaus you can put your business in a HIGH RISK status  High risk is a status companies can be placed in with very little opportunity to get out  High risk will stop companies from granting your business credit and those who already have granted credit may cancel your account  Most bureaus will not work with you, they just want to sell credit reports
  21. 21. Continued• How:  You may use your personal credit to obtain credit for your business with companies who report to the credit bureaus• Problem:  DON‟T FAIL IN COMPLIANCE  This will start the process of building a business credit profile, yet you are still using your personal credit and have the possibility of lowering your personal credit score  You are still personally guaranteeing the debt  Once again if you have not prepared your business for the bureaus you may end up in high risk  There is also no guarantee the profile will ever provide a score
  22. 22. • Work with National Business Support Services, LLC, a separate company from the credit bureaus that will work for you and educate you on how the system works• Will verify and certify the business‟ requirements that lenders and credit bureaus require, in order to stay out of the no credit status• Will provide you with lists of businesses who will grant your business credit without the need for personal guarantees or credit checks• Will insure you develop and establish a business credit profile• Will list your business with several business credit bureaus and not just one• Will make sure you are in COMPLIANCE
  23. 23. Credit Builder Program! Computer Line of Credit -------- $25,000 Equipment Lease ------------------ $15,000 Hardware Store Credit Line ---- $15,000 Electronics Store Credit Card -- $7,500 Department Store Credit Card - $5,000 Printing Company Credit Line - $2,000 Office Supply Credit Card ------ $1,000 Corporate Gas Card -------------- $1,000 Auto Lease and Loans –Cadillac, Ford, BMW, Mercedes, Hummer, GM Trucks and more All Without Personal Guarantees or Personal Credit Checks
  24. 24. FIRST: We Made Sure They Were IN COMPLIANCETier 1 Credit: Smaller lines of Trade Credit • No Personal Guarantee • No Personal Credit Check • No Business Credit Check • Reports to Bureaus +ve and –ve ActivityTier 2 Credit: Larger lines of Trade Credit • No Personal Guarantee • No Personal Credit Check • WITH a Business Credit Check • Reports to BureausTier 3 Credit: Banks & lending Institutions • With a Personal Guarantee • With a Personal Credit Check • With a Business Credit Check • Reports to Bureaus
  25. 25. • The Business Credit Builder is for those companies who have a need to establish their business credit profile and obtain various lines of credit for their business• The goal of the program is to educate business owners and assist them in developing a business credit profile and trade credit with various companies around the country.
  26. 26. DeliverablesDetailed Research Report for compliance and problem areasCredit Profiles with the Major Business Credit BureausOpen Lines of Credit with Various CompaniesCalls from your Credit Coach to walk you through the steps of theCredit Building program• Access to our Business Resource Center online with  Complete status of your business in the credit builder program  Access to research and education materials
  27. 27. • START TODAY – USE OTHER PEOPLES MONEY TO GROW YOUR BUSINESS – Obtain the education needed to grow your business• CONTACT NBSS FOR A FREE CONSULTATION: – Review your Business Credit Situation and requirements – See where Business Credit would benefit your Business – Assess how your Personal Credit is being affected by your Business activities.
  28. 28. Nevada Business Solutions Group, LLC5550 Painted Mirage Road, Ste 320Las Vegas, NV 89149(Office) 702.818.1705(Fax) 702.818.1706info@nbsgllc.comwww.nevadabusinesssolutions.com

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