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IVD Business Credit

e-book series 4 pages

Copyright 2009…Industry View Daily. All Rights Reserved.


Unauthorized duplication a violation of applicable laws.
Mystery of Business Credit
If you don't know the answer to any of the questions below, you are among thousands of business
owners who are lost in the maze of how to build business credit. At Industry View Daily we can
provide you with the answers.

• Who are the two largest business credit bureaus?


• What rights does a business owner have for incorrect information on a credit report?
• What are the business credit scores?
• What do business lenders look at?
• Where do you find companies that grant credit?
• How do you get a company to grant credit?
• Which companies report to the business credit bureaus?
• What credit card companies do not require personal guarantees?

The Advantages of Having a Business Credit Profile


Just by building a business credit profile you will be able to limit the use of your personal guarantee
and build business credit regardless of your personal credit history.
1. You will have more cash for the business.
2. You will have convenience in purchasing.
3. You will have protection of your personal assets from that of the business.
4. You will limit your personal liability from the business.
5. You will have no need for personal credit checks.
6. You will have the ability to purchase vehicles with no personal guarantees.
7. You will have the ability to purchase equipment, computers and more with your
business credit.
8. You will be preparing your business for future lending needs.

Separating You from Your Business


You can separate your personal liability and protect your personal assets from that of the business
by simply incorporating your entity. It is possible to build a business credit profile for a sole
proprietorship or partnership, however you are still responsible for all of the company’s debt. We
recommend building your business credit as a corporation or limited liability company.

Other advantages of a corporation are:


Separation between you and your business.
Limited liability of the owners and officers.
Lower tax liability.
100% tax deductible insurance.
100% reimbursable medical expenses.
Corporate image.
Ability to raise capital and build credit faster.
Reduced risk of audit, as a small corporation.
Stock ownership - easier to transfer assets.
Protect of your personal assets.

Biggest Advantage of Having Business Credit


The biggest advantage of having a good business credit profile is saving money. By obtaining a
more favorable credit score you will lower the interest you pay on loans and leases. For example:

Average or No Credit Score Good Credit Score


Loan Amount $50,000 $50,000
Length of Loan 10 Years 10 Years
Interest Rate 11% 8%
Payment $689.34 $606.64
Total Paid $82,720.80 $72,796.80

Amount saved by having favorable credit: $9,924.00


Business Credit Agencies

There are two principle business credit reporting agencies in the United States that lenders and
financial institutions rely on for information to grant credit, D&B®* and Experian Business.

D&B®* Facts
Over 150 million businesses are registered with D&B®*.
The credit profile created by D&B®* uses information provided by the business owners and vendors of the business.
Grants a PAYDEX® score to businesses based on payment experiences of the business.
Issues a D-U-N-S® Rating based on the financial statements of the business.
Has a high risk status that will destroy a company’s ability to obtain credit.

Experian Business Facts


Over 14 million businesses are registered with Experian.
The credit profile created by Experian uses information provided by vendors only.
Experian grants an Intelliscore based on payment experiences.
Experian is one of the three largest personal credit bureaus.

Business Credit Scores

Business credit scores from D&B®* and Experian are the primary criteria that lenders and financial
institutions utilize when determining your business’ ability to obtain credit.

PAYDEX® Score*
Paydex scores range from 0 to 100.
A Paydex score of 75+ is considered good.
Paydex scores are based on payment experiences reported by vendors.
Paydex scores require at least 5 trade references who report to D&B®* .

INTELLISCORE
Intelliscores range from 0 to 100.
An Intelliscore of 75+ is considered good.
Intelliscores are based on payment experiences reported by vendors
Intelliscores require at least 2 trade references who report to Experian

D-U-N-S® Rating*
Various rating schedules.
Based on employee size and financial statements.
Also takes into account payment history.

IVD Credit...

Our information will prepare your business to obtain credit, loans or leases.

The Goal:
…All lenders and credit bureau requirements of a business will be reviewed and put in place.
…Create a new credit profile without creating a new identity.
…Save money by bettering your credit score and lowering interest rates.
…Obtain a favorable Credit Score of 75+* based on your companies payment experiences.
…Obtaining a Credit Rating.
…Developing a credit profile.
…Apply for 3-5 business retail credit cards with no personal guarantees.
…Provide resources for vehicle leases, equipment financing or loans under the corporation's
name.
…To keep your business out of the No Credit, High Risk status.

The IVD Business Credit Series


Our Business Credit Series will help you to determine if any "High Risk" areas need to be looked at.
Show you how to apply for and obtain a Business Credit Profile.
Walk you through the 7 exact steps to properly build your credit profile.
Make sure that you avoid all the common mistakes that cause companies to become "red-flagged".
Provide vendors and convince them to report to the credit bureaus.
Provide list of companies that offer products and services on credit without the need for a personal
guarantee or any previous credit history and report payment experiences to build your credit profile.
Assist clients in developing Credit Scores of 75* or higher based on payment history with trade
references.
Apply for 3-5 new retail business credit cards that do not require a personal guarantee.
Give you the latest banking resources for both good personal credit and no personal guarantee situations.
Give you the latest banking resources for both good personal credit and no personal guarantee
situations.
Will assist with establishing a credit rating based on company financials.
Assist in finding financing and additional credit required by your business.
This process takes only 90 - 120 days to complete.

Here are some of the APPROVAL’s that some of our clients have
received!
$40K LOC, $19K Credit Line, Staples $2k, Office Depot $4k, Sears Commercial $6500, Amazon $2k,
Target $4k, Comp. Lease $25k, Home Depot Expo $4k, Dell $5k, Dell $10k, Arco $500, Home Depot
$7500, Home Depot $4k, MC $5k, Kinko’s $500, Visa Business $12k, Sunoco $3k, Sam's Club $3k,
Wal-Mart $2500, Business MC $10k, Lowe's $10k, Union 76 $3k, Biz MC $4k, Biz MC $10k, Biz MC
$6k, $12K LOC, Business Auto Leases.. (2) Ford Excursions, 05' BMW 5-series, 05' Cargo Van, (3)
05' Ford Pickups, $10.7k micro loan, $21k Biz Loan.