Compound Profit Blog

Building commercial credit is a absolute must for many businesses to grease the wheels of commerce both inside and outside their industry. However, especially for those businesses just getting started on the road to commercial finance, building commercial credit can be a daunting task without the aid of a partner company specifically geared to help with that goal.

Here are some of the ways that a commercial credit building company can help to build the business credit of a company more quickly than a company could do on its own.

1. Combining accounts.

A commercial credit building company will combine the many smaller accounts of start up and small businesses into one large account to present to a financial institution, which is much more appropriately designed for loans of a large size. Presenting many loans as a group will alleviate much of the risk of the financial institution, as the credit company will often offer added incentives for principal repayment should one of the loans default.

What this does for the small company is get them loans that they simply could not get on their own, giving them the opportunity to build a credit history with even a small or short term loan.
 

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Most aspiring business owners are turned down by the lack of funding; most times, they have tried their best to save the needed money, but they didn’t manage to raise enough funds. Fortunately, there are several financing options at their disposal; this article will go through the most important ones.

Before I begin, though, let’s think at this process from the lenders’ point of view. As you can imagine, the lenders will be interested in learning as much as possible about your business’ history; this makes it easier for them to decide if they should invest their precious financial resources in your company or not. Having a good business credit score will help a great deal; nevertheless, if you had some credit-related problems at some point in the past, make sure to bring them to the lenders’ attention, letting them know how you got into that and out of it – don’t let them discover your mistakes, but tell them in advance about your mistakes!

Another key factor is your cash flow management experience; the lender will definitely want to make sure that you are able to cover all the monthly expenses and also take care of the additional debt. In fact, if your business is profitable, putting up some collateral is definitely a good idea, because it motivates the lenders and reduces their risk in case you default.

So what are the main financing sources that are available today? The banks were doing a great job helping the small business owners to get financing until a few years ago, when they have decided to avoid risk by all means, inventing tight rules and regulations. Another option is the government, which works with the traditional lenders through the Small Business Administration (SBA) loans, reducing the lenders’ risk in case that you are unable to repay the loan. There are various SBA loan types out there, because they were designed for various needs: companies that lack collateral, need the money fast, want to get the funds without going through a lot of paperwork, and so on.

You can also get financing through venture capital, funding from companies that are looking for profitable businesses in which they can invest their money. A related financing option comes from angel investors, individuals who are always trying to make a good investment. Nevertheless, with these types of funding, you are going to be forced to give away equity (and thus lose total control over your company) most of the time.

Finally, you can get financing from the alternative financing companies, who offer a variety of financing options for small business owners, no matter if they have managed to put up some collateral or not, no matter if their business credit history looks good or not, etc. Compound Profit can offer business funding options with interest rates that start at 0% (this is not a typo!) to the business owners, so contact us for a 100% free consultation.

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Many small business owners use business credit cards because they want to improve their credit ratings. It’s a wise choice, because some cards such as MerchantCard offer immediate access to significant amounts of money, without needing personal guarantees, fixed payments or collateral. And with careful budget planning, the business owners can keep the costs under control and build a strong business credit at the same time.

Having a good business score is the key to obtaining loans for your small business, no matter if you need them for additional inventory, working capital, business growth, and so on; nevertheless, building up business credit is a time consuming process that involves a lot of paperwork.

First of all, you need to register your business, either as an LLC or as a corporation. Then, you will have to prepare your business license documents, your financial statements, some good references (if you’ve got them) and so on. Please note that you need to have a “real” business address in order to register your business as an independent entity; a simple P.O. Box won’t be accepted.

The following step is to register your business with the major credit agencies, commercial entities that ensure a good business climate by keeping track of the companies’ credit scores; having a valid credit report from one or more of these agencies is practically mandatory if you plan to go to the bank for a loan.

Another thing to consider is the strength of your business; the banks like financial stability and if you’ve got the documents to prove it, you have increased your chances to get the needed loan quite a bit. Paying your bills promptly is another key factor when it comes to building a good business credit score; failing to do that will decrease your credit score for sure.

Another little known method that allows you to improve your credit score is the usage of credit lines, which in some cases offer easier payment conditions; no matter if you go this route or not, make sure that you take care of your payments as promptly as possible, without ignoring any of your debts, not even the minor ones. Do this and you will be on your way to improve your credit score, thus giving your small business a great chance to access loans from the banks and allowing it to grow quickly.

Compound Profit offers a very affordable business credit builder program that simplifies this process, bringing it down to only 120 days and offers guaranteed results – or your will get a full refund! Contact us for your complimentary consultation; our highly trained Profit Advisors offer 100% free advice.

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Most small business owners start their businesses using their personal savings, personal credit cards and even loans from family members and / or friends. It’s a good move, because having access to the needed funds is crucial when it comes to starting and growing your business. Sadly, as the time goes by, the owners continue to support their business using their personal assets, and thus put their families at risk.

Most times, the business owner doesn’t know too many things about building business credit, so he / she goes straight to the bank, hoping to get a reasonable business loan with a low interest rate without having too much trouble. Unfortunately, this is one of the worst ideas, especially when you’ve just started a business, because the banks aren’t willing to take any risks these days. As an example, even though SBA claims that its qualifying standards are flexible, they will still require several things from you:

- A personal financial statement. This is the most important document for the bank; if it isn’t looking very good you won’t have too many chances to get a business loan.

- A business profile document: a paper that describes your business, the number of years you’ve been in business, the number of employees, the annual income, profits or losses during the last few years, etc;

- A paper that specifies how much money you would need, how you are going to spend it, the type of loan you’re interested in and how much money you expect to earn in order to repay the business loan.

- A description of the collateral that you are offering in order to secure the loan. This might include money, property and / or equity.

How does having a good business credit score help the small business owners? Many people aren’t aware of this, but using a good business credit builder program opens the door to several opportunities:

- Get a business credit profile under your business name, separating it from your personal credit profile;

- Elliminate the usage of personal credit for business purposes.

- Get access to loans, leases, credit cards and the opportunity to win contracts with major clients;

- Inform all the major business credit bureaus (Dun & Bradstreet, Experian, and Nexus Lexus) automatically about your constantly growing business credit score;

- Get approved for business lines of credit with low interest rates.

Now that we’ve got this out of the way, choosing an inexpensive, proven business credit builder program would be a wise move – don’t you think?

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What are the key ingredients for running a successful small business? Most specialists in the business financing industry would say that you need:

- Good cash flow;

- Positive business credit.

While the cash flow problem can be fixed easily through working capital factoring (selling your invoices to a factor at a 1...3% discount, thus getting the cash for your receivables in 1-2 days), building business credit appears to be a much more complicated task.

But why would a business owner need to build a solid business credit? Here’s just one of the important reasons: many businesses have a big growth potential, but can’t acquire the needed funds because they don’t have a good business credit value. And with low credit scores, you can say good bye to that bank line of credit or equipment financing deal that would have had the power to propel your business, helping it reach a new development stage.

Unfortunately, many times the business owners will try to support their business through the usage of their personal assets or credit cards, but soon they end up discovering that their personal credit is both limited and not available for commercial purposes. These days, more than ever, the credit card companies cap their credit lines and / or raise their rates, making the owner pay them more and more money. The end result of this is predictable: most business owners will destroy both their business credit and their personal credit, risking their family’s future.

A good business credit builder program will help you separate your business credit from personal credit once and for all; this will allow you to get approved credit from all the major companies that report to the bureaus on a regular basis. We at Compound Profit will also monitor your constantly growing credit rating, helping you build great credit step by step, if you choose to use our business credit builder service.

Start growing your business credit today! You won’t need any personal guarantees and you’ll get access not only to credit lines, but also to cash that can be invested in your company as you desire. We have taken the long, painful process of building positive business credit, compressing it from 2... 5 years down to half a year (or so). Discover more advantage by accessing our business credit builder. Getting loans, leases and lines of credit without using any of your personal assets has never been easier.

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5 Common Misconceptions about Business Credit Builder programs

Most small business owners need loans from local banks, but they can’t get them because they don’t have an acceptable business credit score. Sadly, some of the small business owners will use their personal assets (most of the time their homes!) to secure the loans, or will use their personal credit cards in order to finance their businesses.

From my experience, most small business owners don’t have a good business credit score because they don’t know too many things about it or (even worse!) they have erroneous information about the business credit builder programs. Here are the most common misconceptions I’ve encountered so far:

1. Business credit builder programs are expensive. While this might be true for the business credit builders offered by most companies, our business credit builder will only cost $19.95 / month;

2.  They will affect your personal credit. Nothing could be more wrong than that; use our business credit builder program and you will separate business credit from personal credit once and for all;

3. You need some guarantees (personal checks or other personal guarantees) in order to build a good business credit score. Wrong again! In fact, while using our business credit builder you will be able to get vendor credit without touching your personal finances at all;

4. Good business credit scores will give access to lines of credit that only work with certain vendors. Quite the opposite, if I may say so: having a good business credit score will also give you access to cash that can be invested in your business as you desire.

5. Building business credit is a long, time-consuming process. That’s not true! Through our expertise, we have reduced the time needed to build great business credit from 2...5 years down to only 4...8 months!

I’ll let you multiply that with less than $20 / month and decide if it’s worth investing it in the future of your small business, using our highly acclaimed business credit builder. Did I mention the peace of mind that comes with knowing that your personal assets and your family are safe? And let’s not forget the added benefit of knowing that your small business will comply with the increasing number of rules and regulations.

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Small business owners: imagine that you need a small business loan from your local bank. What will you need to secure the loan? Your home? Your personal assets? It is always surprising to me the number of small businesses in Minnesota, no matter how long they’ve been around, do not have business credit. Small business owners are financing their business and securing credit through personal assets and never separating their personal credit from their business. Without help, there is really no way for small business owners to know the secrets of a business credit builder program.

The goal of every business owner should be to get your business strong enough that the business guarantees financing for itself. That means no more personal guarantees for business financing!

Answer the following questions:

- Did you sign a personal guarantee for your business credit card? (More than 95% of business cards require a personal guarantee.)

- Did you use (or are you still using) personal credit cards to finance your business?

- Do you have personal assets tied up in your business?

- Does the bank have a claim on equity in your home or other personal assets?

- Do you want your good, positive transactions to be reported to the credit bureaus?

If you answered yes to any of these questions, Compound Profit can help. We offer a business credit builder program that allows you as the business owner to take control of your future so you can separate your personal credit from your business credit forever!

Our program can help you qualify for lower financing rates on bank financing and equipment leasing and obtain better payment terms from suppliers. Don’t hesitate – call us today!

Compound Profit’s Business Credit Builder is available for a limited time for $19.95 per month. Don’t miss out on this opportunity to learn the secrets of building your business credit.  Enroll today!

Jeanine Hansen, owner of the Compound Profit Minnesota franchise, brings more than 20 years of financial experience behind her and has been instrumental in helping local companies get financing, especially when they can’t meet bank requirements. Compound Profit services include account receivable funding and purchase order factoring, equipment leasing, merchant line of credit and commercial credit builder. Hansen earned her MBA from the University of Minnesota Carlson School of Management and a BS in Business from St. Catherine University.

Jeanine Hansen, Regional Director, (877) 386-3716, ext. 216

jhansen@cprofit.com, http://www.cprofitmn.com

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1. Business Credit Builder Programs – overview

If you are interested in expanding your business, you might already know that getting business credit without using your personal credit as a guarantee is a tricky matter, especially if your credit score is lower than ideal or if you have been in business for only a few years.

Fortunately, there is hope: the corporate credit builder programs allow you to get business loans, even if your business credit score isn’t very good. And the good news doesn’t stop here: if you used to work on a 100% cash basis, a good corporate credit score will allow you to make use of lines of credits with most of your suppliers, thus freeing your operating capital.

Use a corporate credit builder program to get working capital for your business. Here are just a few advantages when using Compound Profit’s Corporate Credit Builder program:

- Pay only $19.95 per month and get all the advantages that come with the much more expensive corporate credit builder programs: obtain business credit, credit cards, leases, line of credits and capital for your business fast! Our corporate credit builder program allows you to build strong commercial credit in only a few months;

- Get actual cash for your business (not just lines of credit with specific stores or vendors) and spend it the way you want to;

- Build your corporate credit profile without putting yourself and / or your family at risk;

- Benefit from tax deductions;

- Get financing and equipment leasing with lower rates and better terms. Get better prices from your suppliers;

- Get peace of mind knowing that your company is compliant with all the laws and regulations.

Most (if not all) companies will need to establish a good business credit score sooner or later; therefore, it is a wise decision to start using a corporate credit builder program today, before the actual need arises. And if you have been in business for several years, you have great chances to get big loans and leases without using any personal guarantees.

No matter what your personal credit score value is, our Corporate Credit Builder program can help you get the business credit you need, without affecting your personal credit or forcing you to use other guarantees. Don’t use your personal credit to finance your business; check out our powerful, inexpensive Business Credit Builder program today.

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MerchantCard is the first and only Ongoing Access to Cash Card that provides immediate funds to business owners whenever they need it.  There is no traditional personal guarantee and because this is not a loan, there is no fixed payment schedule or collateral required.


- Over 95% of applicants are approved;
- Approvals are based on sales volume, not personal credit;
- Account availability ranges from $1,000 to $250,000 per location;
- New businesses qualify for instant access of $1,000;
- Funds can be accessed anywhere credit cards are accepted, at any ATM or transferred to any bank account;
- Simple and Automatic payback process through future sales;
- Availability increases every time payments are made;
- MerchantCard is Your Ongoing Access to Cash.

Along with a MerchantCard, you will be set up with a merchant account to facilitate the payback process, while enabling your business to accept credit cards as a form of payment.  If you already accept credit cards, your rates and fees will remain the same while MerchantCard will provide you with the financing and security you need to grow and support your business.       

MerchantCard is essential for every business owner who wants to build business credit by reporting positive payback to Dun & Bradstreet, Experian, and Nexus Lexus. We highly recommend that you apply for one now – here’s why:
- Reports only positive payments (Not Availability) to: D&B, Experian and Lexus Nexus.
- Having a MerchantCard will not affect your ability to get a loan or another credit card;
- It can be used worldwide, at any location that accepts VISA / MasterCard or any ATM;
- Simple approval process for availability of $1,000 - $250,000 per location;
- Approval is based on your monthly sales volume, not personal credit.

New and  Existing Businesses? Good or Bad Credit? If your business can use Ongoing Access to Cash (similar to a Line of Credit), a MerchantCard is for you! Apply here for your MerchantCard.

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Most small business owners need business credit, and most of them choose to support their business credit using personal guarantees, thus negating the protections afforded by incorporating.

A good Commercial Credit Builder Program allows you to create a separate credit rating for your company, leaving your personal credit exposure limited to your personal debts. You can get business credit from the right companies who report consistently; in addition to that, the top financing companies will monitor your growing credit rating and will help you do the right things in order to make your business credit soar.

A great Commercial Credit Builder Program will help you obtain business credit, corporate credit cards, loans, leases and alternative financing for your business, without using personal credit checks or personal guarantees, in 4 to 8 months.

The key benefits of using a great commercial credit builder program:
- Separates Personal Credit from Business Credit forever;
- Improves your chances to get financing and equipment leasing with lower rates and better terms, as well as better pricing from suppliers;
- Allows you to acquire Vendor Credit without personal credit checks or guarantees;
- Helps you receive better payment terms like 30, 60, 90 day financing and get corporate vehicle financing;
- Builds Personal Liability Protection back into your business structure;
- Helps you obtain lines of credit and capital to operate your business;
- Makes sure that your company is compliant with all local, state and federal laws and regulations.

For a limited time, Compound Profit offers your business all these great services (and more!) for the discounted price of $19.95 / month. Check out our Commercial Credit Builder Program - many business owners are already using it successfully.

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