Build Business Credit

With a Helping Hand

From Credit Suite

45% of business owners aren’t aware that business credit even exists. Nearly half of the business owners in this country are unaware of business credit. So don’t be ashamed if you fall into this category, we’re here to guide you and give you the helping hand you need to build business credit.

"Save Up To $2,000"

What is Business Credit?

No better place to start than the definition. Business credit is a measure of how financially credible your business is in the eyes of financial institutions. It isn’t the measure but it is one measure that is easy to navigate with the right tools. When you establish business credit, you’re able to take out loans and credit cards without any personal guarantee or leverage on your personal credit. Like personal credit, business credit is linked to a 9 digit number. This number being your EIN or Employer Identification Number. The tax ID you receive when registering your business with the IRS.

Business credit scores are structured differently than personal credit. ExB and D&B both go from 0-100 and EqB ranges 101-992. 80-100 is great credit for ExB and D&B, 50-80 is medium and 0-50 is bad. As for EqB, 600 is when you start to have good credit. 300-600 is fine credit and below 300 is bad credit. When you’re done working through our Business Credit Enhancement Program, you end up with 3 good credit scores that allow you to get approval for Amex cards and $50,00 lines of revolving credit.

Who Monitors Business Credit?

Similar to personal credit there are 3 different business credit bureaus. You have Equifax Business, Experian Business, and Dun & Bradstreet. More than likely you’re already familiar with the first 2, but the third bureau is the most important one. EqB and ExB automatically when the IRS issues your EIN. D&B however, does not give you what’s known as a D-U-N-S number, unless you apply. It’s something they might try and charge you for but you don’t have to pay for their credit builder in order to get your D-U-N-S number. After you apply it takes about 30 days to receive your D-U-N-S number. Once you do you’ll be fully registered with all 3 credit bureaus and ready to start building your business credit.

What Can I Use Business Credit For?

We briefly touched on start up cost but let’s dig into that deeper and figure out what those costs can be.

Equipment

The first start up cost you want to look at is equipment. Depending on your business you can spend anywhere from $10,000-$125,000 on equipment. You may not need new equipment right away, you may have old equipment you already own that you can use to get by. Eventually you’re going to want to go top of the line and business credit is a great way to do that. When buying equipment you’re going to want to future proof. This means purchasing things like storage that’s larger than necessary or processors that have too much power. This will allow you to use the same equipment for longer as updates and upgrades come available.

Website Design

Obviously a large start up cost that we focus on is website design. The average landing page designed by a professional is $300. Our websites range anywhere from $300 and $20,000, $5,000 on average. We focus on helping people so we only change as much as we absolutely have to. You’ll find that our service is above the rest and still significantly lower than the average Wix Partner. We also offer payment agreements which are perfect for building business credit. Consistent, long term spending is exactly what the credit bureaus like to see. They also make our site much more affordable. Our website management costs can be anywhere from $75 to $150 per month. Each plan includes some sort of Wix Premium plan.

Administration Costs

Next start up cost we want to look at is office/admin costs. This can be anywhere from $10-$1,000 a month per employee. It used to be a lot higher but after the 2020 pandemic remote work became the norm. Now it’s safer, cheaper, and economical to work from home. You can use services like Zoom and Slack to stay connected and communicate with your team.

Inventory

Now let’s look at inventory, which should take up 15% to 30% of your budget.  If you have a distribution kind of business like a pharmacist or candy shop, you’re able to sell as much as you're able to buy. For these businesses, having any extra capital means more profits. That’s the kind of business that’s perfect for a revolving line of credit that you’re able to use over and over again as fast as you're able to pay it back.

SEO

Another start up cost is SEO, which can cost between $300 and $1,200 a month. SEO is not built overnight. It can take anywhere from 6 months to 2 years to have the right SEO established. This can include SEO Monitoring, Backlink Outreach, Content Creation and more. All of this is necessary if you want consistent organic traffic.

Digital Marketing

You also want to look at marketing cost which should be around 10% of your start up budget. Unless you already have clients or a consistent lead funnel, marketing is crucial while you build SEO. Digital marketing is a great way to hit your target demographic. Are you a B2B business? LinkedIn is perfect for you. Are you looking to reach you her clients? Head over to Instagram. Older? Facebook. Not sure what your target demographic is? TikTok has everyone. If you’re trying to make quick sales or connect with businesses from the start, digital marketing should be a priority.

Payroll

Finally let’s talk about payroll. Big or small, everyone who works for your business (even you) needs to be on payroll. It’s going to save you from a headache at tax time, allow you to price yourself properly, and allow you to save easier. Payroll should typically be 25% to 50% of your start up cost. In this economy, the worker had more bargaining power than ever, so you want to make sure you’re paying a livable wage. The average cost to have an employee and pay for all of their benefits is their annual salary plus  $20,000. That should give you an idea of what the monthly and yearly cost of each employee should be.

Why Should I Build Business Credit?

You always want to keep business and personal life separate, that includes credit. Beyond that there are many reasons to build a business credit.

 

  • Bad Personal Credit

  • Diversifying your Financial Portfolio

  • Get Approved for Larger Amounts

  • Prepare for a Rainy Day

  • Acquire Start Up Capital

 

There are so many more reasons but let’s run through the numbers of a few of these examples. Bad Personal Credit; as we already said personal and business credit are completely separate. If you have bad or no credit then it might be more cost effective and less time consuming to build business credit. Get Approved for Larger Amounts; with business credit you’re able to get approval for loans and LOC that are 3-10 times higher than personal credit. This is because you’re using your business as proof of history to improve your credibility. Personal credit is focused solely on you and what you’ve done. Finally, Acquire Start Up Capital; 30% of small business owners seek credit cards as a means of start up cost. 37% of millennial start up founders use business credit cards as a means of start up capital. That’s because business credit is easy to build, quick to get started, and less risky because it has no effect on your personal finances or assets.

When Should I Start Building Business Credit?

As soon as possible! That being said, it may not be possible for 6 months. If you’re looking to use business credit for large revolving LOC’s then you’ll need to have at least 6 months worth of business bank statements. If you’re looking to build something long term then immediately register for your D-U-N-S number and get to work right away. If you’re ready to start you can apply now for our Business Credit Enhancement Program. If you’re curious about what the program is first please keep reading.

How Do I Build Business Credit?

There are a lot of programs out there that can cost upwards of $8,000, and most of them only improve one or two of your scores. You can learn from an influencer but most of those classes are cash grabs that just give you a few seminar recordings and expect you to figure out the rest. That’s why we looked for business credit programs that offered an affordable option for small businesses, only worked with financial institutions that reported to all 3 credit bureaus, and offered fast and frequent customer support. That’s why we partnered with Credit Suite.

Credit Suite offers a comprehensive business credit building program and top rated customer service. The kind people at Credit Suite focus on your business, so much so that they’ll call you every day to offer help if you need it. Typically their program costs $3,000-$6,000. But thanks to our partnership with them, we’re able to analyze small businesses and offer them this same program in a way that makes sense for their individual case. We can save you up to $2,000 if your business qualifies. 

 

  • Get Approved for HIGH-Limit Revolving Credit Cards in Your Business Name with No Personal Guarantee

  • Access the Largest Supply of Business Credit Sources to Get Vendor, Store, Fleet, and Cash Credit Linked to Your EIN and Not Your SSN

  • Receive Concierge Coaching and Servicing with Your Own Business Credit Advisors Who Help You Easily Navigate the Corporate Credit Building Process

  • Enjoy Our Core and Partner Programs with Affordable and Customizable Payment Plans

  • Get Your Business Credit Profile Quickly Setup and Activated with D&B, Experian, and Equifax Commercial Saving You Time and Money

  • Corporate Compliance Review to Ensure Your Business Exceeds Credit Issuer and Lender Credibility Standards to Get Automated Approvals

  • Get Business Credit and Financing through Your Own Finance Suite and Enjoy the Experience in English or Spanish

  • Monitor Your Business Credit with D&B, Business Equifax, and Experian Commercial in Real Time through Credit Monitoring Integration Powered by Nav

 

How Do I Ensure Long Term Success?

Well you not only have the people at Credit Suite, you also have us. They’ll come to you with new opportunities and programs you can take advantage of. The main thing you need to do in order to build business credit, spend business credit. We have more ideas than you can imagine. Ways that you can market and grow your business. This kind of consistent spend and pay back is how you grow fast. We make sure you aren’t spending needlessly. Our expertise allows you to spend in a solid way that guarantees growth.

Where Do I Start?

Start by filling out our Business Credit Enhancement Program Application to see how much you can save. Once that’s filled out our financial experts will look over all of your paperwork and determine what kind of price we are able to offer you. Whatever it is it will be cheaper than the current cost of Credit Suites current price. Our goal is to save you as much money as possible to ensure long term success. Click the button to the left or go to helpinghandcreatives.com/business-credit to fill out an application.