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Friday, July 08 2016

When establishing business credit, there are actually three types of credit you can get: vendor credit, starter accounts that offer Net 30 terms, store credit, revolving credit cards available in retail stores, and cash credit, revolving credit cards such as Visa and MasterCard that card issuers or banks approve you for.

The biggest mistake entrepreneurs make when building business credit is that they try to apply for store or cash credit first, and skip vendor credit.

But stores and banks will NOT approve a business owner for credit until their EIN credit profile and score are established. If you try to apply for store or cash credit without an established business credit profile and score, you’ll be denied… 100% of the time.

You must get approved with vendors first who offer Net 30 terms. Then after you use those accounts and pay your bills the accounts will get reported to the business credit reporting agencies.

Then and only then will you have an established business credit profile and score. Once your business credit’s established, you can start to get approved for store revolving credit next.

You should seek out vendors who will approve a business for credit, even if none is established yet. There are actually many vendor sources who are well known for this: Uline, Quill, Reliable, and Laughlin and Associates, just to name a few.

To start business credit, you first should get approved for accounts with these vendors.

Some will require you purchase their products first and some will have you make three orders and pay before they’ll issue you a line-of-credit. But all of the sources I listed will approve a brand new business, even if you have no credit now.

You’ll want to insure you have a total of five payment experiences reported before you even think of applying for store credit. A payment experience is the reporting of an account to a business reporting agency.

So Quill, for example, reports to both D&B and Experian that means that one account will count as two payment experiences. Laughlin only reports to Experian, counting as one payment experience.

Once you have five payment experiences reporting, next you can start to secure revolving store credit cards for your EIN.

KEEP IN MIND, all applications will ask for your SSN but you do NOT need to provide your SSN on the application. If you do supply your SSN, they WILL pull your personal credit… and if it’s bad you’ll get denied.

When you leave the SSN field blank, they’ll pull your business credit. And once they see that you have business credit established and at least five payment experiences reporting, then you’ll start to get approved for store credit.

Most major retailers do offer business credit as well as consumer credit. Staples, Office Depot, Home Depot, Lowes, Target, Walmart, Costco, Sam’s Club, Radio Shack, Best Buy, BP, Chevron, Amazon, Shell, and most other stores offer business credit.

Some sources like Home Depot might have more stringent approval requirements and want to see big revenue and three years in business for approval of no personal-guarantee credit. But most sources don’t have these requirements, if you have business credit established.

WARNING!!! Do NOT put your SSN on the application. Do NOT apply for revolving store credit without having at least five payment experiences reporting to the business credit reporting agencies. If you do either of these, you’ll be denied or you’ll have to give them your personal guarantee.

Once you have a total of 10 payment experiences reported to the business bureaus, then you can start to get cash credit cards. Cash cards are those issued by Visa, MasterCard, even AMEX, and are cards you can use anywhere, not just cards you can only use in one store.

It’s recommended that at least one of your 10 payment experiences has a high limit of $10,000 or more before applying for cash credit. Dell is a revolving store source who regularly approves business owners with established business credit for an account with a limit of $10,000 or more.

Key Bank and Home Depot are two sources that offer revolving cash credit cards you can use most anywhere, many banks offer these also. Just keep in mind, before applying you MUST have at least 10 payment experiences… and one account should have a limit of $10,000 or higher.

When you follow these steps, your business can have an established business credit profile and score.

This profile and score can then be used to get you credit in your business name, regardless of your personal credit, and without a personal guarantee.

Then you’ll want to continue building business credit, applying and getting more credit, using that credit, and getting approved for higher, and higher credit limits 
Call us today so that we can assist you in building business credit and helping you obtain capital for your new or existing business.

Posted by: Kevin Foster AT 02:19 pm   |  Permalink   |  0 Comments  |  Email
Sunday, June 19 2016

Commercial signage can be expensive. To have a company install a sign in front of your business, especially a lighted sign, can cost tens-of-thousands-of-dollars. 

Commercial Signage Financing is available for all types of commercial signage including Monument, Pylon, Pole, Neon, and Channel Letter Signs.

With commercial signage financing you can put an elegant and bold sign in front of your business to attract more clients and make them stand out.

Business owners can qualify even if they are a new business as they don't need financials. Plus, a business owner can qualify for large signs, even multiple signs with commercial sign financing.

You as the business owner can gain critical visibility and gain a competitive edge with no worries of tying up capital.

Businesses can get approved for signage financing up to $50,000 and the interest is tax deductible. Plus, approvals happen quickly, typically in 48 hours or less.

And with terms as long as 4 years, you can purchase the sign you need with affordable monthly payments.

 

Commercial Signage Financing is one of many financing programs available for you through the TRW Business Credit Suite. 

We can help business clients obtain money and credit for their business by offering them the TRW Business Credit Suite of services. Let us know how we can help. 

Posted by: Kevin Foster AT 10:20 am   |  Permalink   |  0 Comments  |  Email
Thursday, May 19 2016

In a statement issued on Monday, May 9, 2016, Jessica Rich, Director of the Federal Trade Commission's (FTC) Bureau of Consumer Protection, warned the industry that debt collection agencies that fail to live up to their obligations under the Fair Credit Reporting Act (FCRA) "can expect to hear from the FTC." Director Rich's comments came as part of an announcement by the FTC that it had filed a complaint and proposed order against a Texas-based debt collection agency for having deficient policies and procedures related to borrower credit reporting. Through its proposed order, the FTC has clarified its expectations for what credit reporting policies and procedures debt collection agencies should have in order to avoid or withstand regulatory scrutiny.

The FTC’s complaint alleged that the collection agency failed to follow the requirements of the FCRA’s Furnisher Rule, which regulates entities that report information to consumer reporting agencies, commonly referred to as credit bureaus. Specifically, the FTC found that the collection agency did not have adequate policies and procedures in place to handle consumer disputes regarding information the agency provided to credit reporting agencies. The FTC also found that the collection agency did not have adequate policies and procedures requiring that notice be provided to consumers of the outcomes of investigations about disputed information, and that in numerous instances, consumers were not informed whether information they disputed had been corrected. Additionally, the FTC found that while the collection agency had written policies regarding how disputes were to be handled, employees were not adequately trained on those policies.

Under the terms of the settlement agreement, the collection agency is required to pay a civil penalty of $72,000, and will be required to put in place policies and procedures that comply with the requirements of the FCRA. The FTC's action is part of its "Operation Collection Protection," an ongoing federal, state and local enforcement action initiated in 2015 against debt collectors allegedly violating the Fair Debt Collection Practices Act, the FCRA, and other consumer protection laws.

Through its proposed order, the FTC clarified what types of policies and procedures a debt collection agency must have if the agency reports consumer information to consumer reporting agencies, also referred to as CRAs. Those policies and procedures include:

  • policies to ensure information provided to CRAs is accurate
  • policies regarding how consumer disputes are handled, in order to ensure consistent treatment of consumer disputes
  • policies that ensure a reasonable investigation of all documents relevant to the dispute, and that any required investigations are conducted within the time limit imposed by the FCRA
  • policies regarding what information is communicated to consumers after disputes are investigated or, in the alternative, if the dispute is deemed to be "frivolous"
  • policies regarding what information is communicated to CRAs if an investigation determines the information reported was inaccurate
  • a policy concerning periodic audits of how the agency has handled consumer disputes that, in turn, enables the agency to update and adjust policies in place to be effective and current
  • appropriate document retention policies

In its announcement, the FTC stressed that employees must be adequately trained on all policies and procedures. The FTC also noted that all policies and procedures must be appropriate for the size and nature of the collection operations, and be able to address any compliance risks associated with technology used by the collection agency.

Debt collection agencies are not required to report consumer information to consumer reporting agencies. Those that do, however, should take great care in ensuring they have rigorous compliance mechanisms in place to govern that furnishers' reporting and other obligations under the FCRA are met. Both the FTC and the CFPB have conducted numerous enforcement actions in this area recently in response to high numbers of consumer complaints about debt collectors submitted to each agency.

Posted by: Kevin Foster AT 02:26 pm   |  Permalink   |  0 Comments  |  Email
Wednesday, July 22 2015

A lot of people don't understand the consumer credit system, and many more don't understand the business credit system. Today I'm going to cover a couple of common business credit "myths", and explain the truth that can be learned from them.

Myth #1: Business Credit is Just Like Personal Credit

This sounds like it ought to be true, but it just isn't. Sure, the credit systems are similar. However, there are some very major differences that can seriously affect your business. For starters, the consumer credit system has, both in court and in congressional testimony, been demonstrated to be fairly anti-consumer.


The system works against consumers in many cases, is prone to errors, and tends to resist the correction of any errors by consumers or their advocates. (In one example, even after a credit bureau was sued and lost in court, they continued to refuse for months to remove the incorrect information from the person's credit reports.)


The business credit system is quite different. It is not anti-business (or anti-consumer), it is less prone to errors, and when there are legitimate errors, they are generally easier to get corrected.

Myth #2: It Doesn't Hurt To Use Personal Credit In Place of Business Credit

This is a problematic way of thinking that can lead to big problems down the road. Using personal credit for business purposes puts your personal credit at risk for the sake of your business.


By using personal credit for business, you limit the resources available to you personally and to your business, and the end result could be disastrous.


Imagine when your business credit needs exceed your personal credit capacity--and when YOU need to use your personal credit and can't because it's been tied up by your business. No matter how you spin it, in the end using your personal credit for business is a bad idea.

Myth #3: Business Credit and Personal Credit Are In No Way Related

While using your personal credit for business use is a bad idea, we can't exactly separate business credit and personal credit completely. In many cases, especially when starting out with business credit, an owner of the company will be required to provide a "personal guarantee" for the business credit loan or line of credit.


When providing a personal guarantee, the company extending credit will not only check your business credit, but will check your personal credit history. While the business account won't show up on your personal credit report, the personal guarantee could eventually affect your personal credit in the event that the business fails to meet its obligations.

Obviously, you should aim to avoid that scenario (and certainly can) by careful planning and smart use of business credit.

You can obtain money and credit for your business by using the TRW Business Finance Program, Let us know how we can help. 

Posted by: Kevin Foster AT 12:33 pm   |  Permalink   |  0 Comments  |  Email
Monday, June 01 2015

Obtaining credit for a business with no personal credit check and no personal guaranty is very appealing for my clients.

One might say this is the holy grail of owning a business, being able to obtain massive amount of funding using the business itself as collateral.

There are many steps to building an exceptional business credit profile. Each of these steps is essential in obtaining business credit with no personal guaranty.

Here are some of the steps you will want to take when building business credit...

1. Make sure you start by incorporating your business and make sure you obtain a Federal Tax ID#.

2. Insure you setup a business bank account and that the business name on their corporation papers is the same as on the business bank account.

3. Insure you have a business land-line number that is listed with 411.

4. Insure you have the proper businesses licenses for your business that you need in your state.

5. Set up a complete credit profile with Dun and Bradstreet

6. Make sure you pay business bills that report to the business credit reporting agencies ahead of the due date. The earlier they are paid, the higher your business credit scores will be.

7. Build solid payment history with many accounts being paid as-agreed or early each month. Building excellent business scores means you have many accounts reporting as paid-as-agreed. So obtain credit, then keep using your credit to build a solid profile.

8. Always monitor the business credit file. Keep an eye on your scores and the accounts that are reporting.

9. Establish a minimum 'low 5' bank rating by establishing and using your bank credit.

10. Open a small business credit line that reports on your business credit profile. Credit lines have high limits and reflect positively on your business reports.

11. Insure you establish a diversity of credit using multiple store and Visa, MasterCard, and Amex accounts.

12. Establish a well written business plan as many lenders will want to see this to approve you for funding.

I can help you obtain money and credit for your business by offering you the TRW Business Credit Finance Suite. 

Posted by: Kevin Foster AT 12:41 am   |  Permalink   |  0 Comments  |  Email
Monday, May 04 2015

unding and build the business credit for your business. 

With the TRW Business Credit System we can help you build business credit and quickly access funding for your business. 

There are over 2,100 funding sources and over 30 funding products available through the TRW Business Credit Funding Suite. Existing businesses, startup businesses, good credit business owners, and even bad credit business owners can qualify for funding through the system. 

You can qualify for merchant advances and merchant card credit. You also can qualify for purchase order and account receivable financing. Inventory financing, equipment financing, auto vehicle leasing, and much more.

The TRW Business Credit Funding Program gives you access to low/no-doc credit lines up to $150,000, SBA loans up to 12 million, secured credit lines up to $250,000, business revenue lending, commercial real estate financing, rehab financing for residential properties, and much more. 

You receive access to an online portal and a step-by-step system to build business credit and access funding. We even offer certified funding advisors and business credit coaches to help you with every aspect of funding and business credit building.

Posted by: Kevin Foster AT 12:32 pm   |  Permalink   |  0 Comments  |  Email
Monday, April 06 2015

The consumer credit dispute system was created to provide the consumer recourse when there is an inaccuracy on their credit report. The way the system has turned into an automated dispute process using systems like e-OSCAR and OCR is fundamentally flawed.

 

There are no real investigations, but rather an automated process of sending and receiving information between the financial institution and the credit reporting agencies. The process barely satisfies the FCRA regulations and frequently violates the law.

 

Now, here's the big zig to online disputing, that’s hidden beneath the surface - The credit reporting agencies seem to be quite intuitive at finding hidden profit centers. Just when you thought they had all the angles covered, the deep truth of online disputing is exposed.

 

When consumers dispute online, there are no interactions with the humans needed to facilitate the dispute process, not even low-priced, foreign outsourced labor that they commonly use. Online disputes are truly 100% automated by computer systems, and the credit reporting agencies still charge the data furnishers for the errors. With this method, their profit on disputes is nearly 100% - wow!

Posted by: Kevin Foster AT 04:32 pm   |  Permalink   |  0 Comments  |  Email
Thursday, April 02 2015

You probably have personal credit scores established, and you are probably familiar with your scores at Equifax, Experian, and Trans Union.

But do you have a Paydex business credit score yet?

The main credit score used in the business world is known as a Paydex score provided by Dun and Bradstreet.

This number assess a business's lending risk much the same as a consumer credit score reflects a consumer's individual credit risk.

The exact definition from Dunn & Bradstreet, or D&B is: The D&B PAYDEX® Score is D&B's unique dollar-weighted numerical indicator of how a firm paid its bills over the past year, based on trade experiences reported to D&B by various vendors.

There are many BIG differences from a business Paydex credit score and an individual FICO credit score.

Consumer FICO credit scores range from 350-850. The Paydex Score ranges from 0-100 with 100 being the highest score you can obtain.

Having a Paydex business score of 80 or higher is very good, as scores below 70 are very bad.

Individual credit scores are calculated based on a number of factors. The Paydex score is calculated based on only one single factor; whether a business makes prompt payments to its suppliers and creditors within the agreed upon terms of payment.

For example, prompt payments will produce a Paydex score of 80. A 70 score reflects paying 15 days behind, 60 score is 22 days behind, a 30 score reflects paying 90 days behind, and a 20 Paydex reflects paying bills 120 days late.

If you own a business, your Paydex score is essential in establishing new credit and continuing to build credit limits exceeding $100,000.

Through the business credit and funding suite your clients can monitor their Paydex score as they build their business credit.

We can help business clients obtain money and credit for the business by offering our TRW Business Credit Building and Funding Solution.

Posted by: Kevin Foster AT 10:21 am   |  Permalink   |  0 Comments  |  Email
Saturday, March 21 2015

Brand new startup businesses with no financials qualify for credit cards and lines up to $100,000 or more through the business credit and funding suite.

There are NO financials required, the lender won't even look at monthly revenue.

For this program all that is needed is a 660 credit score or higher. Personal credit, and only personal credit is used to qualify unless the business has a well-established business credit profile already.

The lender is looking for really good personal credit on this program so the borrower shouldn't have any derogatory credit on their report.  You can even use someone as a Personal Guarantor who does have good credit if you have credit issues now. 

These are the best accounts in the country for new startup businesses and new franchises as you don't need any financials to qualify.

The credit cards and lines are revolving, and you can use it for any purpose. You will receive a debit card, even a checkbook so you can write from this account.

It only takes 2 weeks or less to close and have the money in your bank account. This is one of several credit line programs available through the TRW Business Funding Program.

If you are a Business Client we can help you obtain money and credit for your business by offering using our TRW Business Funding Program. Let us know how we can help.  

Posted by: Kevin Foster AT 12:58 am   |  Permalink   |  0 Comments  |  Email
Wednesday, March 18 2015

Did You Know that Business Owners can get money for their business quickly by borrowing against future credit card sales through merchant advances and merchant credit lines for their business.

These loans and credit lines use past and current credit card history to determine how much financing you can be approved for.

Money is advanced based on how much the business processes each month in credit card transactions.

Then a small portion of each future credit card sale goes towards paying back the merchant loan or credit line not interfering with cash and check receipts.

There are no fixed repayment amounts or terms which gives you as the business owner  flexibility when having a slow month.

One of the best benefits of merchant financing is that money can be received as soon as 24 hours after approval.

Another great benefit of merchant loans is the business owner doesn't have to have good credit to qualify. These loans leverage positive credit card processing history to get businesses approved, not personal credit scores.

There are some credit score restrictions, but in most cases a business owner can be approved with even below average personal credit scores.

And there is no personal guarantee required and no collateral is needed to qualify.

Merchant loans can be obtained up to $250,000. How much you will be approved for will be determined based on how much you process in credit card transactions each month.

Every business has its strengths and weaknesses.

If the business uses credit cards as a payment source, merchant financing can be the perfect way to obtain a lot of money in a short period of time.

This financing is available for businesses that process as low as $5,000 monthly in credit card transactions. And the higher the credit cards processed the higher amount of financing clients will be approved for.

There are no application fees and no out-of-pocket costs.

And fund scan be used  for almost any purpose including payroll, marketing, increase business inventory, pay taxes, pay rent, advertising, order supplies and equipment, expand their business and open an additional location, or use the funds for working capital.

Merchant Advance Loans are a great source of capital for any business and is one of many funding programs available for you and your clients through the Business Finance Suite.

TRW Credit Services can help obtain money and credit for your with the use of our TRW Business and Financing Suite. 

Posted by: Kevin Foster AT 02:04 pm   |  Permalink   |  0 Comments  |  Email

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