A walkthtough on how to get money and credit for a brand new business.

1. How to Get Money and Credit
for a Brand New Business

2. Ty Crandall
Director of Business Services
(877) 600-2487
ty@creditsuite.com
www.CreditSuite.com/BusinessCredit

3. Money and Credit IS Available
• There are many forms of
business financing available
for small business owners
• There is a massive
abundance of business credit
that is also available for small
businesses
• This money just isn’t available
at most conventional banks

4. Bank Funding
• Most business owners go to their bank when they
need money
• But banks mostly deal with SBA loans which require 2
years in tax returns to qualify
• SBA loans only account for <2% of all business
funding in the USA, Department of Revenue

5. Bank Funding
• Due to tax return requirements, no business can
even apply unless they have been in business for
2-3 years
• Plus to get approved EVERYTHING on the
personal and business side must be perfect
• Some banks might give you a credit card, but the
limit is 1/5 of what you could get through the right
sources

6. Bank Funding
• Big banks are just not the best source of money for a new
business
• Still, most business owners only know to go to their bank
when they need money
• 89% of applications taken at those banks are then turned
down
• So people then believe there is no solution, but there ARE
plenty of awesome ways to get $$$

7. Collateral Based Financing for
Brand New Businesses

8. Collateral Based Financing
• Account receivable Financing, get 80% of
receivables advanced in 24 hours, rates under
2% regardless of credit
• Securities Financing, get up to 90% of stock value
with rates of 3%
• 401k Financing, get up to 100% of value of 401k
at rates of 5% or less

9. Collateral Based Financing
• Inventory Financing, get 50% of inventory value
with rates less than 5%
• Equipment Sale-Leaseback, get up to 50% of
equipment value, rates of 5-20%
• Commercial Real Estate, get up
to 65% cash-out, rates of 5%
and up, good credit needed

10. Collateral Based Financing
• Book of Business Financing, for insurance agents
only, get up to 120% of surrender value, 3-10
year loan, rates of 5% or higher
• Sign/ Wrap Financing, get money to purchase
wraps and signs, 5-15% rates
• Equipment Financing, get up to 100% financing
less 2 months of payments, rates of 5% +
• Rehab Financing, get 100%
of money to buy and rehab
property, after-repair value
must be under 65%, rates of
8% +

11. Unsecured Credit Cards
Good Personal
• Approval amounts from $10,000 to
$150,000
• No consumer reporting, some
business reporting
• Excellent personal credit with open
revolving credit
• Low inquires less than 2 in 6 months
• Utilization under 30%

12. Unsecured Credit Cards
Good Personal
• Approval amounts equal to current limit
• Get approved for 5 cards giving you 5 times as
much as a bank will issue
• 0-25% APR, 0% for 6-18 ,months, 9% success
fee
• Report to business credit reporting agencies
• Personal Guarantors accepted

13. Personal Unsecured Credit Cards
• Get approved for 5 cards giving you 5
times as much as a bank will issue
• 0-25% APR, 0% for 6-18 ,months, 12%
success fee
• Report to personal reporting agencies

14. Personal Unsecured Credit Cards
• 680 credit score or higher to qualify
• Utilization under 60%
• Less than 5 inquiries to get approved
• Personal Guarantors accepted

15. Business Credit for
Brand New Businesses

16. Business Credit
• Business Credit is credit that is obtained in
a Business Name and linked to the
business EIN NOT the owner’s personal
credit
• The Business builds its own credit profile
and credit score to qualify for credit

17. Business Credit
• 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

18. Business 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

19. 3 Types of Business
Credit Accounts
• Vendor Credit, starter credit for a brand
new business
• Almost ANY business can be approved
• You do NOT need a “shelf” corporation
for approval
• Laughlin and Associates, Quill and
Reliable Office Supplies, Uline will
approve new businesses

20. Store Credit
• Once you have 5 payment experiences
using vendor accounts you can secure store
credit cards
• Most major retailers offer store credit
including Staples and Office Depot, Lowes
and Home Depot, Walmart and Sam’s Club,
Target, Best Buy, Amazon.com, Apple, Dell,
and most others

21. Cash Credit
• Once you have 10 payment experiences you can
secure store cash credit cards you can use
anywhere
• Get approved for Visa, MasterCard, Discover, and
American Express credit with limits of $5,000-
10,000
• Usually takes 4-6 months to reach this level with
building business credit

22. Business 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

23. Business 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

24. Business Credit Building
– The business starts with no credit profile
– The business gets approved for new vendor credit
that reports to the business credit reporting agencies
– The business uses the credit and pays the bill timely
– A positive business credit profile is
established
– As the business continues using the
credit and pays bills timely it will qualify
for more credit
A business starts building a brand new credit
profile much the same as a consumer does

25. Step 1- Build Business Credibility
• The perception lenders,
vendors, and creditors have
of your business is critical to
your ability to build strong
business credit.
• Before applying for business
credit a business must insure
it meets or exceeds all lender
credibility standards

26. Business Name
• It is very important that you use your exact
business legal name
• Your full business name should include any
recorded DBA filing you will be using
• Insure your business name is exactly the
same on your corporation papers, licenses,
and bank statements

27. VERY Important
• File your corporation and get your EIN
• Get your phone listed with 411 (List
Yourself)
• These two items are ESSENTIAL to get
approved for initial business credit

28. Business Address
• Business Address
– Must be a real brick-and-mortar building
– Deliverable physical address
– Cannot be a home address
– Cannot be a PO Box
– Cannot be a UPS address
• Some lenders will not approve and fund
unless this criteria is met

29. Perception is EVERYTHING
• You should have a toll free phone number
• You should have a fax number
• You need a professional email address,
like name@yourcompany.com
• You should have a nice looking,
professional website

30. Licensing
• Insure you have proper licenses
– State
– City
– County
• Make sure your address is correct on
all licenses

31. Business Listings
Take the time to verify that main agencies
(State, IRS, Bank, and 411 national directory)
have your business listed the same way and
with your Exact Legal Name.

32. Business Credit Reports
• It’s an exceptional idea to pull your reports
with D&B and Experian to check your trade
lines, score, and profile BEFORE applying
• Trying to get approved with existing bad credit
presents unique, additional approval
challenges
• Review your report and dispute derogatory
items first BEFORE applying for initial credit

33. Step 2- Obtain Business Credit
Reports
• Use Creditera
• Here’s our link with a BIG discount
www.CreditSuite.com/businessreports
• $29.99 monthly
• Get D&B and Experian Business
• AND get Transunion and Experian personal
• EXCLUSIVE spot for Business FICO score

34. Step 3- Obtain Vendor Accounts
FIRST
• A business credit report can be
started much the same as a
consumer report commonly is, with
small credit cards
• The business can be approved for
small credit cards to help them build
an initial credit profile
• These types of initial cards in the
business world are commonly
referred to as “vendor credit”

35. Vendor Accounts
• A vendor line of credit is when a company (vendor)
extends a line of credit to your business on "Net 15,
30, 60 or 90" day terms.
• This means that you can purchase their products or
services up to a maximum dollar amount and you have
15, 30, 60 or 90 days to pay the bill in full.
• So if you're set-up on Net 30 terms and were to
purchase $300 worth of goods today, then that $300 is
due within the next 30 days.

36. Vendor Accounts
• You can get products and
services for your business needs
and defer the payment on those
for 30 days, thereby easing cash
flow
• And some vendors will approve
your company for Net 30
payment terms upon verification
of as little as an EIN number
and 411 listing

37. Do NOT Apply Using Your SSN
• Always apply first without using
your SSN.
• Some vendors will request it and
some will even tell you on the phone they
need to have it, but submit first without it
• Many don’t even know you can get approved
without it

38. Do NOT Apply Using Your SSN
• Most credit issuers will approve you
without your SSN if your EIN credit is
strong enough
• If your EIN credit is not good enough, you
might be declined and they then might ask
for your SSN
• No matter what ANY credit
representatives tell you, credit
CAN be obtained based on your
EIN only

39. STARTER Vendor Accounts
• You must start a business credit profile and
score with starter vendors
• Starter vendors are ones who will give you
initial credit even if you have no credit, no
score, or no trade lines now
• Most stores like Staples will NOT give you
initial starter credit, so DON’T even try
applying

40. True STARTER Vendors
• Laughlin Associates
• Deal with corporate setup and compliance
• Report to Experian
• Only 411 listing and EIN required
• Reports in 30-60 days
• Net 30 Terms

41. True STARTER Vendors
• Creditera
• Business and personal credit monitoring
• Report to Experian and D&B
• NO approval requirements
• Reports in 180 days
• Net 30 Terms

42. True STARTER Vendors
• Quill Office Supplies
• Office, packaging, and cleaning supplies
• Report to D&B
• Must place initial order first unless D&B score is
established
– Usually they’ll put you on a 90 day prepayment
schedule
– If you order items each month for 3 months, they
typically approve you for a Net 30 Account

43. True STARTER Vendors
• Gempler’s
• Work supplies and products
• Report to D&B
• Place initial order over $50 and select
“Invoice me” option
– They will pull credit
– If not approved, pre-pay for order and keep
purchasing and choosing “invoice me” option
until approved for Net 30 account

44. True STARTER Vendors
• Reliable Office Supplies
• Office supplies and promotional products
• Report to D&B, Experian and Equifax
• Place initial order, then request your order be
invoiced or billed to your company
– They will pull your credit
– If not approved, keep ordering and requesting to be
invoiced or billed
– The more orders you place the better your chance
of approval for Net 30 terms

45. True STARTER Vendors
• Uline Shipping Supplies
• Shipping, packing, and industrial supplies
• Report to D&B
• You must have your DUNS number
• They will ask for 2 references and bank
reference
• First few orders might need to be pre-paid
to initially get approved for Net 30 terms

46. Obtain Revolving Accounts
• After 5 trade lines are established using
vendor accounts, obtaining revolving
accounts is the next step
• Revolving accounts are cards a business
owner can use and not be required to pay
the full balance owed each month

47. Obtain Revolving Accounts
• Most stores will NOT approve a business owner for
business credit unless the owner has an
established credit profile and score, just like in the
consumer world
• Vendor accounts must be used first to establish a
profile and score, then store credit can be obtained
• It usually takes only 90 days or less to establish a
score and profile with trade lines

48. Cash Credit
• Get approved for Visa,
MasterCard, Discover, and AMEX
cards with limits of $5k-10k
• 10 payment experiences needed
• Dell is notorious for issuing higher
limits, so apply for them only after
getting approved for other
revolving store cards
• Limits equal to highest store credit
card on report

49. Learn more about business credit at
www.CreditSuite.com
Ty Crandall
877-600-2487
ty@creditsuite.com
www.CreditSuite.com/BusinessCredit