3 steps to improve your business credit report: establish, build & monitor

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Kabbage Kam Webinars #KabbageKam 3 Steps to Improve Your Business Credit Report: Establish, Build & Monitor Featuring Speaker From:

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Page 1: 3 Steps to Improve Your Business Credit Report: Establish, Build & Monitor

Kabbage Kam Webinars#KabbageKam

3 Steps to Improve Your Business Credit Report:Establish, Build & Monitor

Featuring Speaker From:

Page 2: 3 Steps to Improve Your Business Credit Report: Establish, Build & Monitor

•Why business credit matters•Where do credit scores come from•What are your credit factors?•Business credit and getting financing•How to build your credit profile

Meet the speakers…

Andres ThomasCustomer SuccessKabbage, Inc.

MODERATOR• Q&A session

Tim GraczewskiVice PresidentStrategy & Business DevelopmentCreditera

Page 3: 3 Steps to Improve Your Business Credit Report: Establish, Build & Monitor

Tim GraczewskiVice PresidentStrategy & Business DevelopmentCreditera

Page 4: 3 Steps to Improve Your Business Credit Report: Establish, Build & Monitor

Business has credit scores too

32715

Page 5: 3 Steps to Improve Your Business Credit Report: Establish, Build & Monitor

Why business credit

MATTERS

Page 6: 3 Steps to Improve Your Business Credit Report: Establish, Build & Monitor

Where do credit scores come from

The National Credit Bureaus

COMMERCIAL BUREAU

SCORE PROVIDER

Personal & Business

Page 7: 3 Steps to Improve Your Business Credit Report: Establish, Build & Monitor

Many different scores. (Too many?)

0  -­‐ 49

50  -­‐ 79

80  -­‐ 100

Low

Medium

High

Personal Credit

0 - 100

Business Credit

0 - 300

350 - 850

VantageScore

Intelliscore

SBSS

Paydex

350 - 850

Page 8: 3 Steps to Improve Your Business Credit Report: Establish, Build & Monitor

Reporting lines - How bureaus populate business reports

Register your businessas a legal entity

R

Public records Info is sent by lendersand business creditors

Page 9: 3 Steps to Improve Your Business Credit Report: Establish, Build & Monitor

What are your credit factors?

Business Credit Score

Utilization

Business Data

Payment History

Length of History

Debt to Income

Page 10: 3 Steps to Improve Your Business Credit Report: Establish, Build & Monitor

Factors that impact business credit

Page 11: 3 Steps to Improve Your Business Credit Report: Establish, Build & Monitor
Page 12: 3 Steps to Improve Your Business Credit Report: Establish, Build & Monitor

Do you have a thin file?

Page 13: 3 Steps to Improve Your Business Credit Report: Establish, Build & Monitor

Major differences between personal and business credit

Difference in scores1No FCRA protection for business credit 2

3 Business reports are more likely to have errors

4 Payments

Page 14: 3 Steps to Improve Your Business Credit Report: Establish, Build & Monitor

Why you should care about your business credit

Page 15: 3 Steps to Improve Your Business Credit Report: Establish, Build & Monitor

How is business credit used

Business Credit

Government & Enterprise ContractsBusiness Financing

Insurance Rates

Potential Business Partners

Business Credit Cards

Customer Trust

EquipmentLeasing

Commercial Real Estate

Trade Credit (Suppliers & Vendors)

Page 16: 3 Steps to Improve Your Business Credit Report: Establish, Build & Monitor

Business credit and getting financing

Insufficient financing: 2nd most common reason for business failure- SBA

Most small business owners rely solely on personal funds and credit for financing

72%GET DENIED!

Page 17: 3 Steps to Improve Your Business Credit Report: Establish, Build & Monitor

Business credit and getting financing

Page 18: 3 Steps to Improve Your Business Credit Report: Establish, Build & Monitor

Business credit and getting financing

A business can access10 to 100 timesmore creditthan a consumer

A business will use credit at 10 times the rate of a

consumer

Page 19: 3 Steps to Improve Your Business Credit Report: Establish, Build & Monitor

Protect Yourself!

Page 20: 3 Steps to Improve Your Business Credit Report: Establish, Build & Monitor

Get instant alerts via email or text

Page 21: 3 Steps to Improve Your Business Credit Report: Establish, Build & Monitor

How to build your credit profile

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Get Set Up Correctly:

Get your current business and personal scores (2 min)

Incorporate your company (2 days)

Establish EIN (1 hour)

Open a business bank account

• Open business credit card• Get your key vendors/suppliers reporting

Get a DUNS number (optional)

Establish credit lines for your Business

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Page 22: 3 Steps to Improve Your Business Credit Report: Establish, Build & Monitor

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Separate business from personal

Business bank account - ensure contact details match business reports

Charge business expenses to your business• Company credit cards• Use accounting software

Business insurance

Build business credit

How to build your credit profile

Page 23: 3 Steps to Improve Your Business Credit Report: Establish, Build & Monitor

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Check regularly

No thin files!

• Dispute if necessary

Make sure credit and trade lines are reported • Get at least 4

Pay early if you can. Never be late

Plan your future

Business credit and getting financing

Page 24: 3 Steps to Improve Your Business Credit Report: Establish, Build & Monitor

Why we created

Page 25: 3 Steps to Improve Your Business Credit Report: Establish, Build & Monitor

Kabbage Kam Webinars#KabbageKam

Get Small Business Loans Content

Subscribe to Kabbage’s Blog:

Page 26: 3 Steps to Improve Your Business Credit Report: Establish, Build & Monitor

Kabbage Kam Webinars#KabbageKam

From @KabbageInc

Thank you!