The two types of funding are PG and No PG.
PG stands for Personal Guarantee, it means you will undergo a hard inquiry or personal credit check and be personally held liable for the credit if the business defaults. It won’t show on your personal unless the business defaults.
With A Personal Guarantee anyone can create an LLC, grab their EIN letters and begin applying for business credit cards and be approved right way with a personal.
If you can’t PG, you can add a partner such as a spouse, friend, family member, or find a business partner.
Otherwise, you’ll want to repair and optimize your personal credit until you can personally guarantee, as you’ll find no pg credit is very limited and often not useful.
Those with aged corporations can acquire business lines of credit and business loans with just undergoing a personal credit check as well with “No documentation lenders” which make up 10% or less of banks on average.
Building business credit can be done by getting the first 3 Tradelines to establish an 80 PAYDEX and along side atleast one tradeline reporting at $10k+ Can increase the funding limits and approvals but isn’t necessary.
You can skip building business credit entirely and still be approved for business credit cards solely based off your personal credit scores.
Building business credit can help open doors for no documentation business lines of credit at certain banks.
If you follow Each and Every Step I can guarantee that you will receive funding!
I can guarantee this process works, its worked for me and all of my clients. What I can’t guarantee is that YOU will do the work.
In Business Credit there are two types of business credit, No Personal Guarantee and Personal Guarantee. Personal Guarantee means using your personal credit or a business partners personal credit to qualify and guarantee the debt in case of default.
If you choose to not Personal Guarantee business credit, you’ll be stuck with retail cards, net 30 vendors and store cards.
There is only ONE Credit Card that is No PG and thats the Sam’s Club Master card which is 26% interest and while it can be used outside of Sam’s is pretty useless in my opinion at that interest rate.
PERSONAL CREDIT is the BRIDGE to REAL BUSINESS CREDIT. These business Credit Cards don’t report to your personal credit profile (Other Than TD Bank and Discover, avoid them.) but will if you default.
? 660+ FICO Score (As Low as 650 for some lenders)
? Credit Utilization of 50% or less per account
? 2 Accounts Reporting
? 1 Account with 2 years of age
? Less than 4 inquiries in the last 12 months
? Total Credit Limit of atleast $5,000 across all accounts
If you don’t meet these minimum requirements:
You can continue to build a business credit profile while simultaneously repairing your credit.
You can choose to repair your own credit with letters online or using our Credit Repair kit.
Keep in mind if you have more than 10 negative items it can take 4-6 rounds of FACTUAL disputing to remove all negative items.
If you want to hire a company ensure they are highly rated, they do unlimited factual disputes every month and they only send certified mail.
Fixing your credit can cost $500-$1000 depending how many negative items you have but thats a small price to pay to open the door to funding, savings on interest and insurance and so much more.