Business Credit, also called “Corporate Credit”, is the credit that is obtained in a Business Name with business credit the Business builds its own credit profile and credit score linked to the business EIN number… not the owner’s social security number and with an established credit profile and score, the business will then qualify for credit.
In this case, the credit is in the business name and based on the business’s ability to pay, not the business owners. Since the business qualifies for the credit, when done right business credit is obtained with no personal credit check required from the business owner. And, the business owner isn’t personally liable for the credit the business obtains.
EVERY successful business can obtain a business credit. This is how the largest privately and publicly owned companies obtain credit and capital to grow…without the CEO or owner needing to personally guarantee the credit and financing but even startups can obtain the same type of credit… it’s just about understanding the proper steps.
Business credit provides a lot of exceptional benefits. For one, a credit profile can be built for a business that is completely separate from the business owner’s personal credit profile. This gives business owners DOUBLE the borrowing power as they have both Personal and Business credit profiles built.
Also, business credit can be built quickly! Business credit scores are based only on how the business pays its bill. First, a business must get approved for Initial credit, usually from VENDORS, once credit is approved, the business uses the credit to make purchases. Once invoiced, if the business pays the invoice quickly it IMMEDIATELY is issued a HIGH credit score.
Vendor credit accounts can be obtained IMMEDIATELY. High-limit revolving store accounts can be obtained within 60 days. Fleet and cash credit can be obtained within 120 days and auto vehicle financing can be obtained within 6 months or less.