How to Build a Business Credit Line in 3 Days

Introduction

• Aim: Obtain business funding in the business's name, potentially without personal guarantee.
• Process: Step-by-step guide to building a business credit line quickly.

Understanding Business Credit vs. Personal Credit

• Personal Credit
  • Based on credit reports from TransUnion, Equifax, and Experian.
  • Reports include trade lines like credit cards, mortgages, car loans, student loans.
  • Good personal credit score: Over 700.
• Business Credit
  • Separate from personal credit.
  • Reports from credit bureaus: Experian Business, Equifax Business, Dun & Bradstreet.
  • Only accounts in the business's name are reported.

Steps to Building Business Credit

Step 1: Set Up Your Business

• Business Setup
  • Get a business license or registration.
  • Choose between an LLC, C Corp, or S Corp.
  • Register with the state's Secretary of State.
• Important Actions
  • Obtain an EIN (Employer Identification Number) from IRS.gov.
  • Acquire a professional phone number, email, and website.

Step 2: Open a Business Checking Account

• Requirements
  • Need a business license and EIN.
  • Deposit money (e.g., $500-$1000) into the business account.
• Bank Selection
  • Avoid largest banks like Bank of America, Wells Fargo, Citi, Chase.
  • Prefer mid-sized banks like Regions Bank, BB&T, Bank of Ozark, PNC Bank.

Additional Tips

• Accessing Funds
  • Use North One bank for easier access to funds and connect with payment processors like PayPal and Square.
  • Obtain business credit cards and lines of credit without affecting personal credit score.
• Timing
  • Don’t wait until the business is in need to secure credit.
  • Secure credit using business projections.

Conclusion

• Implementing these steps allows securing a business credit line rapidly.
• Additional resources: Videos and links provided, e.g., North One bank for further assistance.

• Call to Action: Like, subscribe, and check out provided resources for further success.