Business Loans Uncovered by Enhanced Business Solutions - HTML preview

Chapter six

EBS has helped many clients build business credit and now we want to help you by sharing this step by step guide.

Before I close I would like to go over a few last things that I think is very important in building business credit successfully also in maintaining a great BC score.

1. Managing the build process (for a faster build)

1. Maintaining a great score.
2. The follow through (statistics)

Managing the build process (for a faster build)

When you are applying for and obtaining credit that you may not need or want in the very beginning use this system.

Find something to buy that’s not to expensive make one or two on time payments, then pay these type accounts off and ultimately close accounts once your profile is well established.

Now that you have a established profile and a paydex score of 75 or better start applying for the things you really need, major credit cards and reach out to those suppliers you need as well and set up business accounts with 30 –90 day terms.

Pay bills on time – and understand other factors that influence your credit rating. In order to improve your commercial credit scores and build a positive payment history, the most important thing to do is pay your bills on time.

Maintaining a great score

Be very careful not to overextend your business, and use any line of credit judiciously. While payment behavior is important, credit ratings are based on multiple factors. D&B, for example, maintains 150 factors that go into a credit rating, such as industry, revenues and number of employees.

Monitor your business credit file. According to D&B, the credit score of about one in three businesses declines over just a three-month period. By monitoring your business credit file, you will be aware of any change in your ratings before it affects your relationships with customers, suppliers and financial institutions.

Monitor your customers’ and vendors’ credit. Monitoring credit reports that provide a clear and complete picture of the credit standing of your customers can help you to determine how much credit, and on what terms, you should extend

The follow through (statistics)

According to the Small Business Administration – The SBA – close to 66% of small businesses will survive their first 2 years.

What that means is that only about one-third of total businesses will fail during the first 2 years.

The SBA also tells you that about 50% of businesses fail during the first year in business.

This is a much better number than the 9 out of 10 failures that some claim.

Regardless of who you believe when you start a business there is a good chance that you will fail. Your job as an entrepreneur is to maximize your chances to succeed in business.

One of the main reason business fail is they can’t pay their bills. When you run out of cash your business has failed.

You can make profit predictions all day long, but the only thing that helps you pay your bills is cash.

92% of Businesses Do Not Qualify for Traditional Financing Why do businesses tend to go to banks, try to get SBA loans, or try to obtain traditional financing before they take five simple steps to not only increase the likelihood of getting approved, but also to lower their interest rates?

The answer is simple: a lack of understanding of business credit. The result is predictable – 92% of businesses do not qualify for traditional financing – so almost all businesses that apply for traditional financing will get rejected.

Based on my own experience only two out of ten of my clients that have elected to build business credit for themselves have been successful.

The reason for only a 20% success rate is commitment, making the time and following through. Earlier I said that I have help many clients build business credit, well really it hast to be thousands. I have been helping companies since 1999 and can tell you now that building business credit isn’t hard you just have to be consistent.

If you follow this guide and are consistent you can build $50,000 - $100,000 or more in business credit in the next six months or less.

We use this same system for our clients. With our six month program they have seen more than $100k in lines of credit by the end of the program, you can to.

I want you the user to know that I tried very hard to do three thing when putting this guide together.

1. Make sure it was complete
2. Easy to use
3. Make it Credible

The first two things I believe I accomplished because of the time and thought I put in it’s preparation.

The third (Credibility) was done by using credible sources such as SBA.com, FindLaw, Nav.com, Equifax, Experian and Dun & Brad Street, FoxBusiness, freepik.com and others.

I wanted to show you the user how important business credit is when growing your business and I didn’t just want it to come from me.

The reputable companies used in part to create this guide, successful businesses have been doing business with them, in some cases for decades. You should now be convinced that business credit is a necessity for your business growth.

EBS has now given you the tools to truly grow your business with Business Credit 101. Soon you will have the resources needed to ensure that you are prepared for whatever comes up.

Remember if your day to day operations of running your business is simply to much for you to build true business credit properly and you need someone to do the heavy lifting for you give us a call we would love to help.

Enhanced Business Solutions

 888-591-4988