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Build Business Credit FAST – No Personal Guarantee Needed

Build Business Credit FAST – No Personal Guarantee Needed


if you have terrible credit and you’re
wanting to get into real estate investing stick around in this video I’m
going to show you how to get around that hey what’s up everybody this is Sam Kwak
one of the Kwak Brothers real estate investor and in this video I’m going to
show you guys how to get around having terrible credit by building business
credit for real estate investing now before we do be sure to hit the
subscribe button as well as hit the bow icon so that you get notified in our
future video releases now if you have terrible personal credit and you’re
wanting to get into real estate investing there is a way around it other
than just owner financing there is a concept called business credit which is
entirely separate from your personal credit and a lot of people don’t know
about business credit because it’s not mainstream yet it is fairly new and
there’s not a whole lot of conversation that takes place about business credit
so in this video I’m gonna show you guys how to establish business credit the
most fast way possible so that you can start getting business credit cards
business loans without even using personal guarantee now what’s really
nice about business credit like I said is it’s separate from your personal
credit so what you do on your business credit side won’t affect you on the
personal credit side whatever you do on the personal credit side doesn’t
necessarily affect your business credit side so you can keep those two credit
profile differently and I’m gonna show you guys how to do that now when it
comes to your personal credit you got five big factors that affects your
personal credit score specifically your FICO score the first one being your
payment history are you paying on time your utilization how much of your credit
are you using new credit credit mix as well as your overall age of your credit
so those are the big five factors that drive your personal credit now when it
comes to business credit the main big factor is are you paying on time okay so
a lot of people think well I don’t want to max out my business credit card it’s
gonna hurt my business card well not necessarily what will hurt your business
credit is not paying on time and late on your payments so what’s separate what’s
different with your business credit is you don’t have necessarily those big
five what really matters in your business credit side is are you paying
on time now of course to take advantage of
getting a business credit is that you have to have a legitimate business you
can’t just you know have a fake business and build a fake business credit you
know it doesn’t work that way so you gotta have a real business whether you
have a landscaping business a internet marketing business roasted investment
business it has to be a business that you actually have and you’re actually
running and you’re actually making money from it the next thing you’re gonna have
to have when building a business credit is have a business website a business
phone number and an optional of fast number now when it comes to your
business website it has to reflect exactly what you do so if you own a
landscaping business you got obviously this website has to be about landscaping
if you own an internet marketing business you have to highlight the fact
that you do have an internet marketing business on your website now as far as
your phone number you can have a separate phone number such as a Google
Voice number or a sideline number or if you have a legitimate office number make
sure you have a separate phone number that is not your personal cell phone
number now this is an optional and it does help is having a fax number and
this is optional but it does help and it gives you an extra credibility point
knowing that you actually have a legitimate fast number for your business
now quick note on the phone number is that you do have to register the phone
number with four one one so once you establish your business phone and phone
line that is separate from your personal phone line be sure you go to four one
one and register your phone number and your company name so that it’ll be on
the public directory so you got your phone number your website and your FAFSA
Murr established the next step to do is get a Duns number at dun and bradstreet
number Donna Bradstreet is a company it’s an organization that reports your
business credit to the other creditors it’s very similar to Equifax Experian
and TransUnion except dun and Bradstreet specifically focuses on business so you
need to get a Duns number which is kind of like a social security number that’s
unique to your business and getting this number is absolutely free although you
could be misled to pay for an expedited service or other third-party services
that you need to pay for you do not need to pay for it done Duns numbers are free
you can get it for free it takes about two to three weeks to establish and get
a number deliver to you by email so make sure you get the number
not skip this step it’s very important that you have a Duns number before we
move to the next step so once you have a Duns number your EIN
your website phone over all established and ready to go the next thing you’re
gonna want to do is start establishing the net 30 accounts now net 30 is simply
a concept where you purchase something and you pay back for that purchase
within 30 days so let’s say you went and bought a bunch of paper from a company
and if they give you a net 30 account you have 30 days to pay for those papers
otherwise you’ll be late and of course you’re gonna go and attempt to collect
from yes so what you’re gonna want to do is start establishing these accounts and
you want at least three to five of these accounts being reported on your dun &
bradstreet credit report and you want to have at least three months of reporting
to see a paid X score of 80 so we’ll pay that score is your business credit score
and it is specific to dun & bradstreet so you want to have at least 80 in your
paid X score and to establish that you gotta have at least three months of
payment history with your three to five net 30 accounts now with the net 30
count so you can get those through different companies such as Uline quill
there are other companies that will offer in that 30 now when you go and
shop around for these net 30 counts and when you go in and research creditors be
sure you call them ask him hey do you report your net 30 accounts and payment
to dun & bradstreet now if they don’t report there’s no point of establish
that net 30 account so work with a merchant /a a store or retail store that
does report your net 30 into dun & bradstreet so that you guys will get
that pay that score up and going now once you have your paid a score of 80 or
higher you can start going after the bigger fish in terms of merchants and
vendors and creditors so you can start going after gas cards certain retail
stores certain national chain that you can go after to get store specific cards
so what I did is I wouldn’t establish three to five net 30 counts and then
what I remember is I went and got a credit card from different gas stations
that are local to me and they do report to
you know different credit bureaus especially dun & bradstreet and then
after I started establishing credit with the gas cards and gas store gas station
specific cards then I started getting store specific cards from Staples Lowe’s
places like Office Depot office max and once I have those established again
there’s there’s a pattern to this you’re gonna want them reporting for at least
three months okay and then you’re gonna escalate to the more the bigger and
mainstream change such as Best Buy Walmart some of the more bigger chains
that you can tackle on all the way to the point if you continue this trend and
established business credit you know one foot on top of the other you’re gonna
find yourself to be able to qualify for bigger business credit cards with you
know banks you’re gonna be able to get business not a credit even auto loans
that don’t require personal guarantee from you so once you have your business
credit established this way you can start tackling and bigger credit cards
pickle alone higher living credit cards this is the benefit this is the power of
establishing business credit a lot of times if you do it the right way you can
get away establishing business credit and accounts without your personal
guarantee or without using your personal credit now I’m gonna give you guys a
brief list of what not to do when building business credit the first thing
is do not rush the process don’t go off and skip steps don’t go after the big
credit card companies right off the bat follow those steps right get your net 30
accounts have it established have your paid F score of 80 in an Escalade you
know step by step don’t go and skip all the way to the end because once you
messed it up there’s no read to you there’s no restart there’s no
quote-unquote respawn back to step 1 you can’t fix your mistake so be sure to
follow the steps don’t rush the process because once you do there’s no do-over
so be sure to follow steps now the another thing you should not be doing is
buying shelf corporation which I believe to be is legal and fraudulent you should
not be doing it now what shelf corporations are it’s basically people
getting corporations and doing nothing with it waiting couple years into the
corporation ages and then start building business
on top of it or selling it to another individual for them to build business
credit now obviously this is fraudulent this is legal and the reason why people
do this is to show that the company their business the corporation has been
around for a longer period of time and really you know it hasn’t been it’s not
been active it’s been dormant it hasn’t been doing anything obviously this will
be lying to the creditors as well as the banks and lenders so you should not be
doing this you should be starting your business credit organically the right
way a legal way ethically and you don’t want it again don’t rush the process
don’t try to take shortcuts this is not the best way to do it so don’t go off
and buy a shelf corporation I think it’s terrible and I think it’s straight-up
illegal so you should not be doing it now along the process if you sense
anything that’s shady or if you get any other advice that tells you hey you
should be doing this and in your gut feeling it feels weird it’s not ethical
it’s not you know it doesn’t sound legal then chances are it’s not now of course
you do want to do your research and you want to make sure you understand the law
and the process but if it sounds shady to you and if you’re feeling you’re
taking shortcut the wrong way or an unethical way then don’t do it
take the pause that you need and research what’s going on before you make
the decision to move forward or to not move forward so don’t rush a process
don’t buy shelf corporations if it sounds shady chances are it is so to
give you a recap and a summary of how to build your business credit the first
step is get your EIN your employer identification number next establish
your separate business phone line your website as well as an optional fast
number get your Duns number establish wait two to three weeks to get your free
Duns number get your net 30 accounts established for three months of payment
history and start escalating into bigger retail stores and creditors to the point
where you can now attack all the biggest fish you know different bank cards auto
loans high limit line of credit those things are definitely possible through
building business credit so if you found this video to be valuable be sure to hit
the subscribe button as well as hit the bell icon to get notified in our future
videos and the next video that you guys must must watch is how to buy your first
rental property without using your own money or credit that videos right here
you click on that video watch that video and I’ll see you guys in the next video

Comments (4)

  1. Any questions regarding to building your business credit? Anything that we missed? Comment your questions down below!

  2. You should have an address for the business that is not your resident, you didn't mention

  3. Do you recommend secured credit card

Comment here