Purchase Real Estate with Business Credit

Business credit is credit under a company’s EIN which means NO PG-NO PERSONAL GURANTEE with your PERSONAL CREDIT. It has no association with the owner’s Social Security number. It is separate from personal credit.

This is credit in the business’s name and it is based on the business’s ability to pay. Make sure you are purchasing income producing assets so you can repay the loan quickly.

If you are just starting out you may want to start by building credit with NET 30 Business Accounts. Do your research to find companies that offer Net 30 Business Accounts that report to all 3 Business Credit Bureaus’s. A good one to start with is https://business.ecredable.com/. This may get expensive because of fees and purchases needed to build but it is well worth it to establish Business credit for your LLC, S-Corp or C-Corp. Always pay within 2 days or under to get the highest score on Net 30 terms and YOU MUST REMEMBER to CHECK NET 30 when it is time to pay on the website otherwise they won’t report it to the Business Credit bureau’s.

There are Business loans, Business lines of credit and Business credit cards that require a PG-PERSONAL GURANTEE WITH YOUR PERSONAL CREDIT. Some companies do a SOFT PULL or a HARD PULL. A HARD PULL will make your PERSONAL CREDIT SCORE DROP. A SOFT PULL WILL NOT! Make sure you ASK BEFORE YOU APPLY!

Make sure your personal credit is in tact in case you apply for Business Credit products that need a PG-PERSONAL GURANTEE WITH YOUR PERSONAL CREDIT. Make sure to show good payment history and with a FICO CREDIT SCORE of 680 and above.

Always make sure you know the loan repayment terms and how much your payment will be each month and the length of the payments in years. Some can get expensive and you can deny them and look for something you can afford to repay monthly.

Main Business credit Bureau’s are: Dun and Bradstreet, Business Experian and Business Equifax. There are more but they are not commonly used. The ones listed above are frequently used.

Start by making a business profile with Dun and Bradstrteet at https://www.dnb.com/ and to get a Duns #number for your business.

Dun & Bradstreet’s PAYDEX SCORE-Aim for 80 or higher (Range 0-100)

Experian Intelliscore Plus- Aim for 80 or higher( Range 0-100)

Equifax Credit Risk Score- Aim for 637 or higher (Range 101-992)

You can monitor your scores performance using Nav.com or another platform and they do charge a monthly plan fee. I recommend getting the (Business Boost or Business Loan Builder) to help you start building Business credit!

Accounts can take up to 120 days (4 months ) to report when you first start so be patient and if you are wondering when then pick up the phone and call them!

The Elect Property Investments, LLC

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OFFICE: 1-833-533-5328 or 1(833) 53E-LECT

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