In this video, we're going to go over setting up your business for credit.
OK, so business credit here and being able to set up your business in the right way so that actual
lenders take you serious.
OK, so let's go ahead and jump in here.
You can get access to business credit using your home address.
It's not necessary that you need to go out there and, you know, go and get actual business address.
However, there's going to be some things you want to keep in mind here that you're staying consistent
with.
So, for example, make sure that you have the same address with your bank and then your business bank
account and that your business and your bank address match up.
So if you're going to have a home address, make sure you have the same home address on your business
bank account, OK?
And it's recommended to get personal accounts with these lending institutions.
Right.
Especially like Chase, Bank of America, Key Bank.
Right.
Wells Fargo, these big lending institutions.
Right.
Because it really sets up a relationship from the very beginning.
Right.
And it's not 100 percent necessary, but it definitely shows that you're looking to establish a relationship
and that can hold some weight.
And so here's a step by step for Mack's business credit.
OK, so what you want to do is you want to go to include dot com.
This is what I recommend.
You can register an entity, LLC s corporation, and then get an iron from the IRS.
Or you can have inquietude do that for you.
Open up a business bank account at a local branch or you can do it online.
And one of these different online banks, you can literally just go to Google type in business bank
account and then you want to establish a business address and a phone number and then you want to apply
for a business.
No, this is the number one business credit agency.
You know, pretty much if a lending institution is looking to offer and extend a particular line of
credit, they're going to go off the business credit, OK?
They're going to check your Dunns information.
They're going to check your corporate Experian, and we'll get into the business credit agencies in
the next video.
But this is pretty much just showing you what you want to do to set up a foundation for business credit,
OK?
And then you want to get a business credit card.
So the big thing here is when you're establishing business credit, you're doing this or that.
Your business can hold all the weight for you having to use your personal credit and have a personal
guarantee.
Right.
Because when the business holds all the weight, you are essentially using the business's credit.
Right.
Background to actually be able to guarantee the loan.
So for whatever reason, if the business defaults on the loans, you're not personally liable.
Right, to businesses.
And so there's three different business credit agencies.
There's DMB, Dun Dun Bradstreet, corporate Experian and then corporate Equifax.
And so ideally, you want to have between an 80 and 100 paid that score in between a 76 to 100 and tell
a score from Experian.
Experian is where all your credit cards are going to be showing.
That's where actually once you get a credit card through leveraging your personal credit for your business,
that's where your actual cards are going to be reporting and they're not going to be reporting.
As far as the factor of, hey, you have used all of your credit, right?
Because remember, the amount that you're using on the business side isn't as important or really important
at all when it comes to your business, because it's measured differently.
You're obviously has a business going to be using your credit that is extended to you to grow your business.
Right.
So big difference there.
And then, according to Bank of America, a strong business credit profile follows the five three two
rule where you have five active accounts, three credit accounts and two paid accounts in full.
OK, so you really want to take that into consideration to start building up your business credit and
to make sure that you're able to down the line, be able to get extended credit lines where you're not
having to leverage your personal credit because you're going to be personally liable at that point.
Right.
So that's going to be here for setting up your business for business credit.
Right.
If you want to get that corporate credit, you want to get those lines of credit.
This is what you really want to do here.
You want to set it up to look like an actual real business.
Right.
But this isn't necessarily going to be necessary 100 percent if you're just looking to get business
credit or leveraging your own personal credit report and your credit scores.
OK, so that's going to be here for this one.
And we'll see you on the next one.