Building Business Credit in 2024

Introduction

• Presenter: Kelvin
• Topics: Financial Wellness, Mindset Therapy, Real Estate
• Aim: Steps to build business credit in 2024

Key Points

• Difference between business credit and corporate credit.
  • Business Credit: Line of credit extended to an individual on behalf of a business.
  • Corporate Credit: Line of credit extended to a business entity (EIN only or no PG).
• Importance: Building business credit to qualify for funding such as microloans, high-limit credit cards, etc.

Understanding No PG

• No PG (No Personal Guarantee):
  • Vendor does not check personal credit report.
  • Business holds responsibility for debt.

Recommendations for Building Business Credit

Net 30 Accounts

• Definition: Line of credit allowing 30 days to pay the invoice.
• Importance: Helps establish business credit.

Recommended Vendors

1. Nav Prime

   • Business credit monitoring service.
   • Costs $49.99/month.
   • Monitors scores from Experian, Equifax, and FICO Liquid score.

2. ULINE and Quill

   • Useful for purchasing business supplies like cleaning, retail, and shipping supplies.
   • Reports to Dun & Bradstreet and Experian.

3. eCredable Business Lift

   • Converts business expenses into reported credit trade lines.
   • Reports to multiple credit agencies.

Revolving Accounts

• Help improve Recommended Credit Limit (RCL).

Recommended Cards

1. Nav Prime Card

   • Corporate charge card linked to Nav Prime subscription.
   • No credit check required.

2. Bank of America Secured Business Credit Card

   • Requires a minimum $1,000 deposit.
   • Reports to Small Business Financial Exchange (SBFE).

3. Bill Spend and Expense Card (formerly Divvy Card)

   • Weekly automatic payments from business checking.
   • Reports to Experian.

4. Sam's Club MasterCard

   • EIN only application.
   • No personal guarantee required.

5. Home Depot Pro Card

   • Net 60 account with discount for early payment.
   • Reports to credit agencies.

6. Dell Business Credit Account

   • For purchasing technology essentials.
   • Reports to Dun & Bradstreet and Experian.

7. WEX Brand Fleet Network

   • Fuel network credit card.
   • Strategy: 'Exit application strategy' for no PG applications.

Final Recommendations

• Aim for 3 vendors reporting to major credit agencies with consistent on-time payments.
• Potential to move to Tier 2/3 within 3-6 months.

Additional Resources

• Green Scale Academy: Offers guidance on raising business capital and structuring for funding.
• Website: greenscaleacademy.com

Conclusion

• Importance of foundational accounts in building business credit.
• Encouragement to like, comment, and share the content to support entrepreneurship.

These notes summarize the video content, providing a comprehensive guide on building business credit in 2024. They serve as a resource for individuals looking to establish business credit effectively.