3 steps to improve your business credit report: establish, build & monitor
TRANSCRIPT
Kabbage Kam Webinars#KabbageKam
3 Steps to Improve Your Business Credit Report:Establish, Build & Monitor
Featuring Speaker From:
•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
Tim GraczewskiVice PresidentStrategy & Business DevelopmentCreditera
Business has credit scores too
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Why business credit
MATTERS
Where do credit scores come from
The National Credit Bureaus
COMMERCIAL BUREAU
SCORE PROVIDER
Personal & Business
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
Reporting lines - How bureaus populate business reports
Register your businessas a legal entity
R
Public records Info is sent by lendersand business creditors
What are your credit factors?
Business Credit Score
Utilization
Business Data
Payment History
Length of History
Debt to Income
Factors that impact business credit
Do you have a thin file?
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
Why you should care about your business credit
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)
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!
Business credit and getting financing
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
Protect Yourself!
Get instant alerts via email or text
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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3
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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
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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
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