How to get business credit with bad
personal credit? I know. I know. Everybody tells you it cannot be done. Well, I'm
here to tell you it actually can be done and I'm going to tell you how to get it
done. Let's go. Okay, I'm going to give you the cheat code
so that you can get $10,000 in just a matter of months. I'm going to
share with you all of my dirty little secrets so that you can get business
credit fast. And I'm going to tell you my actual story so you can see exactly what
I did right and I'm going to also tell you a couple of things that I did wrong so
you don't make those same mistakes. Let's first talk about business credit versus
personal credit. Because obviously, there is a big difference and I need you to
understand the 2 before I can tell you actually how to get the business credit.
So first, let me tell you personal credits. Many of you are familiar with
FICO scores and you're familiar with TransUnion and Experian and Equifax.
Those are the three credit bureau agencies that report your credit. And
they really have absolutely nothing to do with business credit because there
are 2 separate entities. In fact, there's actually entire business credit
agency that does not exist in the world of personal credit. And that agency is
called Dun & Bradstreet, okay? So, again, on the personal side, you
have Equifax, TransUnion and Experian. Those are the three credit bureaus that
report for your personal credit. But on the business side, you also have Experian
and Equifax. But the big, big company that most people use and that really gets
used and they've been around for hundreds of years it's Dun &
Bradstreet. And there is a big difference between your personal credit and your
business credit. Again, with your personal credit, they are looking at your trade
lines and they are looking really big at how you use your credit cards and things
like that. Especially your credit cards. So, I'll give you a really major
difference between personal credit and business credit. And this is so important
as so many people do not understand this. In the business credit model, like just
say a credit card. A personal credit card versus a business credit card. A personal
credit card, if you have like a thousand dollar limit and you spend $1,000 on that credit card, even if you make all of the monthly payments and you
are doing really well paying the payments, your credit score is going to
go to crap. Because you have used most of the utilization on that card. Your
credit utilization is 100%. If you have $1,000 on the
credit card and you use $1,000, you used 100% of
that credit line and your credit score will tank. They just penalize you on the
personal credit side for doing things like that. But on the business credit
side is a business credit card. Say you get one $4,000 which is
another big difference. That is a really small line on the business side. On personal credit, that's fine. But on the business side, they usually give you
more. They give you higher limits usually. That's the first big thing. But then when
you use the credit card, they do not penalize you for maxing it out the same
way that they do with personal credit. So, say you get a credit card and it's a $1,000 we'll use that same example and you charge a $1,000 on the business side when they report it. As long as you are making the
payments, they are going to be like, "Yay, good job, business. You are able to pay your
debts." They care about how you manage your
debts. But on the personal side, they care that you are not really using your debt.
They really want you to be very careful. They care about things about debt ratio.
Just just a totally different world. And some of the things that you do on the
personal side, you're literally rewarded for on the
business side. So, the business side has so much more to offer. So, again, if you
feel bad because you have bad personal credit, I'm here to tell you do not feel
bad. We have a solution for you. Now that you understand the difference between
personal credit and business credit, let's get into how you build your
business credit. Because again, if you have bad personal credit, we're not even
going to worry about that. We are just going to ignore that and we're going to just start
talking about how to get some good business credit bills so you don't even
care about your bad personal credit. Well, not for right now anyway. So, let's
talk about what you need. These are the must-haves. In order to really start
building your business credit, you have to have your business registered with
whatever state you're in, okay? So, if you don't have an LLC or you don't have your
S corp or your C Corp or your DBA or whatever you don't have, you don't have
your business registered then you need to have your business registered. That is
clear-cut step one, okay? Name your business and then get a business right.
Get your business registered. The next thing: Once you do that the next steps
are super easy. Most of them are free. You want to get an EIN number with IRS.gov.
You want to go ahead and get an email, you want to get a phone number. You want
to get a business website. Again, make your whole business. And the funny
part about it is it really does not take very long. I have students that are able
to put their whole business together in a matter of days, okay? And in some cases,
it's not even days as hours depending on what state you're in. Because there are
certain states where you can just go online and fill out all the paper to
register your business. And some states, there's a delay you have to wait a few
days. So, if you are in certain states, you can get all of this done in a matter of
hours and you can have an established business already set up that you can get
credit to. And the great thing about it is when you do this, the business becomes
its own entity, okay? You as a person with your social security number,
you're an entity, you're recognize as a thing. But if you create a business like
I have, my business is in its own entity. It's almost like it's a separate person.
It can borrow money, it can pay debts and again, it can even die. So, the great thing
about it is this is something that you can duplicate over and over again.
Once you have one Social Security number, it's kind of illegal to get another one.
But if you have a business and you set it up and you get business credit, you
can repeat that step. And I literally have students that have 2 or 3
businesses and they have millions of dollars in funding just by repeating
what I'm teaching you. You just do it one time and they duplicate the process.
Let's get to the next step. The next step it's so easy. Because this is how you can
actually get business credit. This is some people that will literally lend you
money. You with bad credit, they will lend you money. They will lend your business
money. And some of those companies right now are PayPal, Square and Kabbage. And
that's cabbage with a K. Those 3 companies right now are what we call
subprime lenders in a sense because they are lending startup companies companies
that are not 2 years old. Companies where the owner of the business does not
have great personal credit. They are lending you money, okay? And the key to
this is you have to have transactions with them, okay? So, once you set up your
PayPal business and your Square business account and your Kabbage account, again,
this all has to be business. Because some of them they'll ask you if you want to
set up a person or if you want to set up a business profile. And you want to set
up a business profile which is actually why I told you to do that other stuff
before. Because if you don't have the business EIN
number and all the stuff then you're not going to have anything to fill in. But it's
super easy to get those things done and it's super easy to apply and start
opening up those accounts. Once you have... And I'll just give an example. Because I
just had a student. Let me tell you what they did. So, they started their business
probably about 6 months ago, okay? This guy. And he is really works full-time. So,
it's not like he had tons of time or tons of money. But he had personal credit
that really was not good. And I was telling him, "It's okay if you have bad
credit. Don't worry about that. I used to have bad credit. I don't care. You can fix
that. That's not like a permanent stamp "bad credit". You do not have bad credit
for your whole life. You don't have to. It's up to you."
So, he's like, "Are you sure?" And we worked through this.
So, what he did was what I just told you you ain't got a business license and he
set it up with PayPal. And then he was able to do some partnerships with a few
people were he's able to send them some invoices, they paid his invoices and so
he was able to create some transactions in his business. And again, you don't need
a lot of transactions. PayPal just wants to see that you're using their service.
And I'm going to tell you why because it's kind of funny. So, they make money off of
you. That's the big secret to this. So, for
example, when you set up your business account with PayPal and you start using
and sending invoices, every time someone pays one of your invoices, they are going
to charge a fee, okay? So, just giving you a raw example.
You send out a PayPal invoice to somebody and it's 4-5 hundred
dollars. You're probably only going to get like $490 or
whatever. I think their fee is like 3%. So, you're going to not get the
whole 500. PayPal gets money every single time that someone pays with
a credit card. And that's how they make their money. But do not feel ashamed
about that. Do not get mad about that. That is okay. Because they have done an
awesome thing. And again, at the time of this recording,
they are literally they have lots and lots of money. This company... PayPal owns
eBay. Remember PayPal used to be owned by Elon Musk. It's actually a very, very
cash heavy company. They have a lot of money. So, they actually were very smart.
And what they started to do is they started to lend that money back to the
people that were using the service. So, if you are one of those people and you start
using their service after 3 months, literally three months, they sent my
student a loan, a working capital loan. They have 2 different types on that.
Working capital and they have a loan builder. They sent him you know
application after three months and he got $10,000 in his business's name, no
personal guarantee. So, this is very easy stuff to do. And again, he had a very low
credit score. I know for a fact it is less than 600 because I saw for
myself. So, this is not something that is hard to do. It is pretty easy. You just
got to get it done. Alright, I'm going to give you another secret because that
was amazing. And again, how a student just got $10,000. And I'm going to
give you another one. My student just got 1,500. And this was just 3 days ago,
okay? Since it's super easy too. Have you heard of secured savings accounts? Well,
you can get a loan, it's called a secured loan against your savings account. So,
when you go to open up your business checking account, make sure you open up a
business savings account if you can. And in many cases, so say for example, you
have just $1,000. Maybe you have it in a 401K, you have it saved. Put
it in that savings account and then they will loan you that money back, okay? And
they pretty much do not care about your credit score. So, it's called a secured
savings loan. They do this with savings accounts. Some companies some banks do it
with checking accounts. Not all but almost all of them doing with savings
accounts. And many companies like credit unions also do them against CDs.
So, if you don't... Your major banks like Wells Fargo and Chase and Bank of
America, they'll do it against the savings accounts. And trust me, I
literally have gotten them. I actually have 2 right now.
Because if you ever need to boost up your own credit, this is a way to boost
up your own credit. Because it's an installment loan. That is the amazing
thing. So, I'm not going to get into all of the different types of loans that there
are. But remember, there's credit cards which is unsecured. There's installment
loans like your car note. And they all have a different value. Installment loans
actually are really good for your credit. And this is the easy way to get one with
bad credit. I literally had a student, he put $1,500 into the
savings account and then he got a loan in the business'
name for $1,500. Because again, they'll lend you the same money back. So
again, gives it to them, he signs a loan. He has to pay them I think $80 per month. And then they hand him back the $1,500. And now I was reporting
on his credit report. Boom. And this is the easy one. I've talked about this one a
lot. This is vendor credit, okay? So, another quick way to build business
credit and when you have a bad personal credit is to go ahead and get some
vendor accounts. But the key to this is they need to report to the credit
bureaus, okay? So, just because someone will say, "Alright. You know you could
pay me in 30 days..." Or say for example, you're going to have some t-shirts printed
up. And you're going to use this company. They're going to print up some t-shirts and
they'll say, "Okay, you can pay me in 30 days or you pay me in 60 days." That's
great because they did extend you credit. But it really is great if they report to
the credit bureau. Because you want credit for everything you do. Because
you're going to try to get this business credit built up quickly. And so, here's
what I recommend: There's 3 companies out there that I know for a fact report
to Dun & Bradstreet and they give money to startups. I have students that are
getting vendor credit from them on day one where they're like, "Okay,
here's a net 30." And just giving it to them immediately, okay? And that is Uline
Quill, Grainger, okay? Those are like my top 3. I know all three of those
companies report to Dun and Bradstreet. You could do a just a small purchase it
has to be at least $50 to for them to report. And it can even be a cash
transaction. So, even if they won't extend you credit, they will still report that
transaction to the credit bureaus. And it really works. Okay, guys? This is amazing
and this will help you build your credit really fast. And then once you get those
credit trade lines to report, you can just go to the next level and start
getting gas cars like Chevron, Texaco those fleet cars. They'll give
those out pretty easily. And then Amazon and Walmart and a few other ones are
like right behind it. And sky is the limit. Then I have also have students that'll
king after they do those 3 rounds, probably the to get to the third round
probably takes about three to 6 months. Again, because this is what bad credit,
alright? So, if you have a good credit, this doesn't take as long. But we're
talking about crap credit, low credit scores. If you're going to take it, it's
going to take you 3 or 6 months to get to this next level where they're
giving you those chases and those other things without a personal
guarantee, okay? So... Becusae that's what you want. The great thing about business
credit is you can get it with a personal guarantee but that usually requires good
personal credit. And that's what you've probably all heard about where
everybody's like, "Oh, you need good credit." No, you don't. Some places do not require
a personal guarantee. You just have to go about it the right way and already have
some trade lines. Alright, guys. I'm going to tell you to go ahead and watch a
video that I'm a call How Business Credit Scores Work. I need you to watch
that in conjunction with this video. It is so important you know are giving you
all this information. I want you guys to be successful. Noelle loves all of
you and wants you to be successful. So, I'm getting you free information. And I
want to make sure that you do these things. So, make sure that you watch that
video --How A business Credit Score Works? I'll put a link to it below so you can
go ahead and watch that video.
