@Creditera #SmallBizLove SMALL BUSINESS WORKSHOP
Small Business Credit Workshop
Aug 03, 2015
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@Creditera#SmallBizLove
SMALL BUSINESS WORKSHOP
Tim Graczewski Vice President, Strategy & Business Development
Presented by
Business has credit scores too 32715
@Creditera#SmallBizLove
Why business credit
MATTERS Get financing and credit Lower costs
Save time.
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Where do credit scores come from
Personal & Business@Creditera#SmallBizLove
The National Credit Bureaus
COMMERCIAL BUREAU
SCORE PROVIDER
0 -‐ 49
50 -‐ 79
80 -‐ 100
Low
Medium
High
Many different scores. (Too many?)
300 - 850
Personal Credit
0 - 100
Business Credit
0 - 300
350 - 850
VantageScore
Intelliscore
SBSS
Paydex
Register your business as a legal entity
RPublic records Info is sent by lenders
and business creditors
Reporting lines - How bureaus populate business reports
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Business Credit Score
Utilization
Business Data
Payment History
Length of History
What Are Your Credit Factors?
Debt to Income
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Do youhave a
thin file?
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Major differences between personal and business credit
Difference in scores 1No 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
Business Credit
Government & Enterprise Contracts
Business Financing
Trade Credit (Suppliers & Vendors)
Insurance Rates
How is Business Credit Used
Potential Business Partners
Business Credit Cards
Customer Trust
EquipmentLeasing
Commercial Real Estate
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Insufficient financing: 2nd most common reason for business failure- SBA
Most small business owners rely solely on personal funds and credit for financing
Business credit andgetting financing
72%GET DENIED!
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Business credit andgetting financing
Business credit andgetting financing
A business can access10 to 100 times
more credit than a consumer
A business will use credit at 10 times the rate of a consumer
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Protect yourself!
How to build your credit profile
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
Establish credit lines for your business • Open business credit card
• Get your key vendors/suppliers reporting
Get a DUNS number (optional)63
1
2
4
5
Separate business from personalBusiness bank account - ensure contact details match business reports
1
Charge business expenses to your business
• Company credit cards
• Use accounting software
2
Business insurance3
Build business credit4 @Creditera#SmallBizLove
How to build your credit profile
How to build your credit profile
No thin files!2
Pay early if you can. Never be late
4Check regularly1• Dispute if necessary
Make sure credit and trade lines are reported
3
• Get at least 4
Plan your future5
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@Creditera#SmallBizLove
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