In simple terms, business credit is credit in your business’ name and linked to its EIN and not the business owner(s) social security number(s). Business credit is similar to personal credit; however, the credit is established in the business’s name, builds its own credit profile and score, and represents your business’s ability to borrow money from authorized lenders, based on its past actions. With an established credit profile, on-time payment history and score, the business will qualify for additional credit and funding from the business creditor and financial institutions. More importantly, since the business qualifies for the credit, in some cases there is no personal guarantee (PG) or credit check required from the business owner(s). A personal guarantee (PG) is an unsecured written promise from a business owner and/or business executive guaranteeing payment on an equipment lease or loan in the event the business does not pay. Since it is unsecured, a personal guarantee is not tied to a specific asset.

Business credit is ideal for entrepreneurs, small business owners, and nonprofit leaders just launching their business, as well as, established businesses and organizations.  It can be vital for companies that do not have collateral required by the Small Business Administration loans. It’s also perfect for businesses with very little cash flow to verify, no tax returns, or don’t want to verify business information. There are many advantages to building business credit that is not connected to your social security number. First, your business can establish a credit profile that is completely separate from the business owner’s consumer credit profile. This gives business owners DOUBLE the borrowing power as they have both consumer and business credit profiles established.

Most creditors and vendors will check your business credit report before making critical decisions about your business. That evaluation criterion is based heavily on the applicant’s business credit score. Your ability to establish a sound credit profile and score will allow business credit grantors to evaluate the creditworthiness to determine whether or not to issue credit. The more established the business credit profile, the more options the business will have to obtain credit, loans, and leases without the use of personal guarantees. It is not easy to do this, but yet it is not impossible.

By not having an established business credit profile and score will get an owner DECLINED for credit and financing. Please be advised that there are no federal regulations that require the lenders notify the business owner for their reason for denial, so most never know.

When your business credit and profile is established correctly, it can be built without a personal credit check. Business credit can quickly be obtained regardless of personal credit quality. Additionally, most business credit can be obtained without the owner taking on personal liability or a personal guarantee. This means in case of default, the business owner’s personal assets cannot be pursued.

Your business can use its established credit profile and scores to qualify for revolving store credit cards like Amazon, Staples, Lowes, Sam’s Club, Costco, BP, Wal-Mart, even MasterCard, Visa, and American Express. In addition, your business could also qualify for credit lines and loans.  Borrowing responsibility can help you build the business you have dreamed about.

There are two major credit-reporting agencies for businesses and two minor credit reporting agencies:

• Dun & Bradstreet at dnb.com·
• Experian Business Credit Services at experian.com
• Equifax at equifax.com
• FICO Small Business Scoring Service

Note: Most creditors utilize Dun & Bradstreet & Experian. There are many others out there, but they are not utilized as much as D&B and Experian.

A Paydex score is for business credit what a FICO score is for personal credit. A Paydex score determines the credit worthiness of your business. In comparison, having a Paydex score of 75 is like having a FICO score of 750. What I have also discovered is that it is not uncommon for a business to be listed with Dun & Bradstreet and not know it. You may already have business credit and a Paydex score and not even know it.

Note: DO NOT apply for these business credit cards until you have followed each step in our Master Course. Otherwise, you will get denied and it will damage your credit report. 

In 2022, there are several lenders that offer corporate/purchase cards for all types of organizations. Usually the lenders will pull D&B or Equifax to see what you qualify for and whether they will set up net terms for you. The cards listed below can be obtained without a credit check, some will ask for social security number but that’s to verify identity. (For Fleetcor Mastercards, to bypass a personal guarantee, contact a sales representative)

Comdata Universal MasterCard

Emburse Corporate MasterCard

Wex Corporate MasterCard

Blackbaud Purchase Card

You will receive 15 additional credit card lenders once you have signed up for our Master Course. We will help you get approved once you are ready. 

Warning: DO NOT apply for these business loans & lines of credit until you have followed each step in our Master Course. Otherwise, you will get denied and it will damage your credit report.

Here is the list of banks you should apply at. We will help you to get approved when you are ready:

http://www.comerica.com

http://www.ingdirect.com

http://www.affinitybank.com

You will receive access to 11 additional lenders once you have taken your course.