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Business Credit and Unsecured Credit

Business credit is a great way to get money as approvals are not based on personal credit. Business credit reports usually get started with a few vendor accounts who will initially offer credit. Initial accounts create tradelines and a credit profile and score are established. The company’s new profile and score are used to get credit. Newly obtained credit is based on the company’s credit per the EIN, not the owner’s credit based on the SSN. Personal credit doesn’t matter as the credit linked to the EIN is used for approval. When you use vendors to build your initial credit, you can then leave your SSN off of the application and can apply for business credit based solely on your EIN at most retail stores. Plus, you can get cash credit also, like high-limit cards with MasterCard and Visa. But building business credit all starts with vendor accounts. Without them, you won’t be able to start your credit profile initially, and that profile being established is the key to getting cash and store credit cards for your business. Once you find the vendors you want to apply for, apply, and use your credit, it takes 


about 1-3 months for those accounts to report to the business bureaus. Once those accounts are reported a business credit profile and score are then established, and that can be used for you to get store credit cards next. Once you have about 10 payment experiences reporting, you can then start to get cash credit like Visa and MasterCard accounts. Payment experience is the reporting of an account to one business bureau. So if an account reports to two bureaus, it would actually count as two payment experiences. You can get approved for vendor accounts right away that offer credit on Net 30 terms. Once you use those accounts they are reported, which takes about 30-90 days. At that point, in only 90 days or less, you can use your newly established credit to start to get high-limit store credit cards. Then in about 30-90 days longer you can be approved for $5,000-10,000 limit cash credit cards that you can use almost anywhere. Due to this fast building and approval time, business credit makes a lot of sense for credit challenged entrepreneurs. Unsecured credit requires no collateral, but it DOES require good credit. But if you have credit issues you can still get approved if you have a good credit partner, or someone who will sign as a guarantor who does have good credit. The guarantor is then liable for the business debt in case that account defaults. Approval amounts range from $10,000 to $150,000.Card limits are equal to what the signer has on their credit now. These accounts do report to the business bureaus in most cases, so they also help build your business credit and they are NOT reported on the guarantor’s personal credit report. Your guarantor will need excellent personal credit to qualify.


Luckily for us entrepreneurs, there are actually A LOT of different viable financing options, even if you have challenged personal credit. The key is to know where NOT to look, and not waste your time… and to know where TO look, places that will approve you based on your strengths. If you do have personal or business collateral as we discussed, you might qualify for financing right now. If you have cash flow of more than $10,000 monthly, you might qualify for cash-flow based financing right now. If you have a partner, or other party who will sign as a guarantor, you have yet another good funding option available with unsecured financing. And even if you have no collateral, no cash flow, no guarantor, and bad credit… business credit is still an easy and fast way to get your hands on money.


We hope this helps you get one step closer to getting money to build the company of your dreams. We offer all of these financing options and more, so if we can be of help please let us know through [email protected] or 321-430-6828.


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