The 5 C's of Business Credit

It's the most common question business owners ask their banker:

"What are you looking for from me and my business if I need to borrow?"
While each lending situation a bank reviews is unique, most banks utilize some variation of  "The Five C's of Credit" when making credit decisions - Character, Capacity, Capital, Conditions, and Collateral.

 Character

Banks want to put their money with clients who have the best credentials and references. The way you treat your employees and customers, the way you take responsibility, your timeliness in fulfilling obligations - that's character.

Capacity

What is your company's borrowing history and track record of repayment. How much debt can your company handle? Will you be able to honor the obligation and repay the debt? There are numerous financial benchmarks such as debt and liquidity ratios that banks use before advancing funds.

Capital

How well capitalized is your company? How much money have you invested in the business? Banks want to see that you have a financial commitment; that you have put yourself at risk in the company.

Conditions

What are the current economic conditions and how does your company fit in? If your business is sensitive to economic downturns, the bank wants to know that you are good at managing productivity and expenses.

Collateral

While cash flow will nearly always be the primary source of repayment of a loan, bankers look at what they call a secondary source of repayment. Collateral represents assets that the company pledges as an alternate repayment source for the loan. Hard assets. Most collateral is in the form of real estate and office or manufacturing equipment. Your accounts receivable and inventory can also be pledged as collateral. Unless you're a business with a proven payments track record, you will almost always be required to pledge collateral.- PNC

Our team of business credit experts can assist you the small business owner with meeting these requirement to obtain funding for your operations. Give us a call at 1-888-821-6408 ext 2 and one of our business credit experts will assist you.

Al,
alplouis@gmail.com
twitter.com/alplouisea

Business Credit and Asset Protection

I find it to be very interesting that a lot of small business owners have no idea what their business credit files look like. Many don't even know what's reporting on their business credit files. And most don't even have a business credit established.

At Business Credit America we realize that there need to assist small business owners, Entrepreneurs and self employed individuals with building business credit. We also provide a lot of free DIY information for those individuals who prefer perform the services themselves. We have a team of business credit experts who are the best in the business.

Services currently offered are.

• INCORPORATION OF THE BUSINESS (LLC OR C-CORPORATION
• EIN NUMBER (TAX ID)(CUSTOMER MUST GET THE EIN#)
• DUN AND BRADSTREET NUMBER(CUSTOMER MUST GET THE DUNS#)
• Corporate Kit with Stock Certificates
• PROJECTED FINANCIALS
• GOVERNMENT REGISTRATION- ORCA, CCR, SBA, AND MBA
• CORPORATE REGISTRATION- INDEXING, BACK LINKING, CATALOGING IN 60 PLUS DIRECTORIES
• PUBLIC FILINGS (UCC)
•  STATIC WEB PAGE- HOME PAGE, ABOUT PAGE, CONTACT PAGE, PLUS FREE HOSTING AND DOMAIN NAME FOR ONE
• CUSTOM LOGO 

Be sure visit our site at businesscreditamerica.com for pricing and additional services. We offer life time membership to Business Credit America. . Give us a call at

1-888-821-6408X2

We look forward to assisting you.

 Al, 

 

Get approved for Business Credit

I read a post in a small business forum the other day and the member could understand why he was getting denied for business credit. He said that he had been in business for a a year and that he had an 80 paydex score. He applied to Office Depot, Staples, Lowes and they all denied his request for business credit.

This is a typical case where a small business owner who's building business credit does not have the knowledge or education on the steps to build business credit. Before you can began to build business credit you need to have a complete business credit file. I will list the steps below.

1. Your business need to be listing in all the major online search engine sites like Google, Yahoo, and Bing. These are the major site that most creditors lenders will use to verify your business information. 411 listing is also important. Creditors will do a 411 check to verify your phone number in the directory to get information about your company. Get listed!

2. Have you checked your business credit file with the D&B, Experian and Equifax. The 3 major business credit bureaus. Sometimes the information that they have on about your company is inaccurate and that will cause your application for credit to get denied. Phone numbers, age of company, address and SIC code information maybe be reporting inaccurate. Get a copy of your business credit file, review it and make the necessary corrections as you see fit.

3. Have you submitted your financials to D&B? This is a major step in the process of building your business credit file. This process must be done before applying for business credit. This step will give you a favorable credit rating with d&b.

4. Are you familiar with public filings and how they can be used to strategically add trade lines to your business credit file?  A UCC-1 filing can greatly enhance your business credit score and rating.Not many small business owners know what a UCC is or how it works. Filing one and completing the process is a must for those seeking business credit.

These are just some of the steps that need to be completed before you can began to apply for business credit. As lending standards tighten up you need to make sure that your business credit file is fool proof. Gboogie America is the leader in business credit education. Now where on the internet will you find our proven methods for building business credit and how to obtain unlimited amounts on business credit.

Click the link below to get your copy of the ultimate business credit e-book. Or if you prefer to one of our business credit experts work on your file, click on the Business Credit America link for additional information.  

Al,
Business Credit Consultant
twitter.com/alplouisea
alplouis@gmail.com

http://www.tradebit.com/filedetail.php/126427810

http://www.businesscreditamerica.com/

Dun and Bradstreet Business Credit File

 Did you know that  a Financial Statement can be used to strategically build business credit. Business owners who are building business credit aren't aware of the important step early on in the process. In fact, submitting your financial statement to Dun & Bradstreet should be at the top of the list in terms of building business credit.





Many start out building business credit with out submitting financials to d&b, this in effect causes their company to get denied for credit. As a result, they're ask to pre pay orders before they can be approved for a net 30 account. Dun and Bradstreet uses the business financials along with other factors to give the company a rating. If you are looking to quickly build business credit then it would be advisable to submit those financials as soon as possible. Not submitting financials to d&b would delay the process of building business credit. You need to have a clear and complete business credit  file with Dun and Brad street to effectively get the desired results when building business credit.

Lenders and creditors alike will always check with Dun and Brad street to review your business credit file to gauge your company's financial experiences. Consult with your accountant to have financials prepared and  submitted to d&b.

 You can get more information about building business credit by clicking the link below. The business credit e-book will teach you how to build a fool proof business credit file.
http://www.tradebit.com/filedetail.php/126427810

Al,
Business Credit Consultant/ Enrolled Agent
alplouis@gmail.com
 https://twitter.com/alplouisea
http://www.alplouisea.blogspot.com