How To Get Business Credit With Bad Personal Credit [2021 Step By Step]
DJ Intro Josh Van Horn Live from Columbus, Ohio this is the Get Business Credit YouTube channel with your host, Josh Van Horn. Subscribe now and hit the bell notification right now to stay up to date as soon as we release new business credit gems. Take it over, Josh. - Hey, what's up YouTube. It's Josh with with the Get Business Credit YouTube channel.
In today's video, we're gonna be going over how to get business credit when you have bad personal credit. I get that question all the time. So that's what we're gonna be going over in today's video. Also, this video isn't a hundred percent just about if you have bad personal credit. Even if you are brand new business or you're wanting to start your own business this video may be beneficial for you 'cause I break down all the steps from A to Z on the foundation of building your business credit. So before I get into that, if you could, please, if you're not already a subscriber, please hit that subscribe button and make sure you turn the bell and notification on.
I'd really appreciate it. It helps our channel grow and get out to a wider audience. So without further ado, let's get into it.
Like I said, the topic is how to get business credit with bad personal credit. So here we go. Sorry, I made this slide here.
So like I said, how to build business credit with bad personal credit. Welcome to the Get Business Credit YouTube channel. Can I get business credit with bad credit? Answer is yes.
So this is basically the steps and contents that I'm gonna be breaking down over this video. Hopefully it won't be too long, but there's a lot I got jam packed into this video. So the first topic that we're gonna be going over is the business name, pick and decide the new business name. And then the business address, decide what address you'll use.
I'll give you guys options for each of these steps. The business registration with the secretary of state, whether that be LLC, Inc, S Corp or C Corp, getting your EIN from the IRS, that's your employee identification number also known as your federal tax ID number. Your business phone, like a dedicated phone number for your new business and to be getting listed in the 401 business directory. Opening up your business checking account.
I'll give you some options on that as well. And then online business presence. This is very important because a lot of the vendor credit lines, especially the newer ones starter vendors, they will actually look up your information online to see if everything matches and to see if they wanna extend your credit or not.
Eighth, file or get your DUNS number, Dun & Bradstreet number as well as the profiles with the other business credit bureaus, Experian, Equifax, and Creditsafe and starter vendors. So next is how to name your business. So I've had issues with some of my subscribers that picked either a generic name or a name that isn't so brandable. So that's kind of what this step is all about. So your business name and your state search. The state search isn't that important unless you have a name in mind, that's gonna be, say like, either rentals or Coca-Cola or something like that.
You really don't have to worry about that, especially if you're just a simple new business. So first things first, you wanna pick a brandable name and you need to think, even if you're a brand new business and a month from now you're only gonna be earning say $1 a month you wanna think about if you're gonna be earning a million dollars a month, an exit strategy. Say you're gonna scale the company one year, six months or five years down the line you wanna have a good brandable name that you could sell the company possibly.
So like it says here, and I wrote this all together. So I'm gonna be basically reading this to you guys and giving you guys some informal advice as well. So pick and decide on a business name that you like and that is unique enough. Stay away from high-risk words included in your business name, like the word capital, investments, coaching, loans, financial, real estate, and consulting. Also stay away from names that could be trademarked like I said before, anything that's like Coca-Cola spelled a certain name or GoDaddy spelled a little bit different. So that's what you wanna stay kind of away from.
But you also don't wanna have something like, off the top of my head, something like that somebody can't pronounce easily or something that doesn't look or sound professional. Believe it or not, there's people out there that have, I'm not even gonna say the names, but inappropriate names mixed in their business name or have numbers in their business name. Keep it simple because when you're trying to get business credit down the line, you're gonna run into issues if you have hyphens or you used numbers, things like that. So you wanna stay away from that.
Next is pick your business address. And I'm telling you guys to do this before you actually register your business with the secretary of state because you don't wanna have to go back later and update all your addresses and information later with the secretary of state. You wanna do that all beforehand. So the business address.
So you can get a virtual business address if you're just starting off and you don't have the capital to have an actual physical retail location or warehouse or office. So like I noted down here, if you do not have physical retail, office or warehouse address for your business, then you can use a virtual business address. However, some virtual address service and locations you wanna stay away from. I've made several other videos about how to find those particular ones that you wanna stay away from such as like iPostal and a few others, UPS stores, FedEx stores.
You wanna stay away from those. Like MailBox, et cetera, Mail Pack, ones like that. A great option is Opus Virtual Business address package. It's $99 per month.
With my code, you can get a hundred dollars off the first month set up. So I'll take you over to what that looks like. So it's a partner page we have directly with Opus. The great thing about it is you get your virtual business address for $99 per month, you get a live receptionist answering the calls during normal business hours, nine to five.
So they handle all that. They issue you your own company phone number, your company fax number, voicemails are converted into email. So they'll go to your email. You get two voicemail boxes. Your faxes are converted into emails as well.
And then they have premium call transfer where they can forward their calls, patch the cost directly to you say your cell phone. And the extra report, this $99 monthly payment to CreditSafe, which is one of the business credit bureaus. So real quick, like I said, you'll get a hundred dollars off the setup fee if you use my link. It's promo code GBC100. Use this link and you'll get a hundred dollars off.
I'm not saying you have to do this or not. I'll show you another cheaper option, but this one's pretty much saves you a lot of time because it's an all in one package. So after you go to my page and you go through to the website here you'll see everything that's included in it. But you wanna go to the premium locations, view all premium locations. And let's just say, for instance, you're in, I don't know let's pick, I'm just trying to see here one that a lot of you guys are based out of.
Let's just say Alabama. So you can see how these are 4,000 Eagle Point Corporate Drive. That's a good one. And then there's 202 Government Street Mobile, Alabama. And then right here, there's another one, 216 8th Street. This one you wanna stay away from because you can see that even though it's a premium location, you can see it's like a street mall location.
So what we would do is just go over to copy that address over to Google, look up that address and see. You can see it says LoopNet, which is fine. And you'll see Exchange 202. This is the coworking space for that location. So that's fine.
That's a location that's gonna be suitable for what you're trying to achieve. But then if you go to other ones, you can actually see that are retail locations. Let's see here like this one, even though it's a premium location, I still advise to stay away from an address like this just because it does not look like an actual corporate office location. So if you go on like street view on Google, you can kind of see it doesn't really look very appealing versus those other locations.
So that's pretty much the point. I made two other videos about this, breaking it down. But anyways, I think you guys get the gist of things.
This is definitely all one solution. And keep in mind, say you're in some city that is say an hour away from Birmingham, Alabama. It's okay to still have this location in Birmingham, Alabama, even if you're an hour away, that's fine. It doesn't make a difference 'cause they can forward all the mail to you directly, physically or scan it open and you'll be able to get your mail that way or you can go pick it up once a week or once a month, whatever you wanna do. So I'm gonna get back to the presentation here.
Like I said, that's $99 a month. That comes with a phone, live receptionist, everything all in one. And they get you listed in the 401 business directory. All that's very important because when you're building business credit up, what happened here? When you're building business credit up, you wanna be able to show that you have an actual physical location. The other option is Anytime MailBox. It's a little bit cheaper.
So again, this one is not as good of an option, but you can still go after this option. Let's just say Jacksonville, Florida. So you can see they have one that's $63 a month, which is quite high and then they have a one for 12.99 a month. And you can see what I'm talking about. This is not probably a great location because the address is a suite number 104, and then it'll be dash a MailBox. So, I'll just show you real quick.
So you can see, it says Goin' Postal, Jacksonville. This is something you wanna stay away from because that's like a Mail Pack facility. You do not want that type of address at all. That's why it's 12.99.
It's like a MailBox, et cetera. Basically a post office box. And you're probably gonna get denied a bank account and you're not gonna have good luck building business credit up because that's gonna be flagged versus they have other ones like I said, that are more expensive and those more expensive ones are suitable. Let's see like this other one here. Yeah, so this one's fine because see it's LionShare coworking space.
That's the address. So that's not a big deal. Something like this would be fine and it's 20 bucks a month and you can actually go in, you pay that 19.99 a month you'll get your own address and stuff with a MailBox number or your suite number.
And then you can go in there and actually work if you needed to. You just have to pay that LionShare co-work space an extra fee, but it's an optional. So it's very important to pick an address before you file with the secretary of state, because you want everything only to be able to do at one time and to have to update it later. Now, if you already have your address, retail location, great, or warehouse, office, whatever, that's fine too. But if you have a home address and say, you're a plumber you could use your home address but a lot of people don't wanna put their home address on the internet.
So that's the option. I'll have a link to all this in the description below. Next is the business formation. So just to point out, I'm not a lawyer or a tax professional. So please seek the advice from them if you're unsure on what type of business structure you're gonna form.
The most common one is LLC, limited liability company, C Corp and S Corp. So most of the time people file LLCs. It's simple, pretty much most states you can do online. You don't need to hire anybody to do it. Although I have a link for Swyft Filings LLC.
They're pretty reasonable on pricing and they take care of everything for you. So business formation is necessary early step when starting a business, whether you're a registering a simple single member LLC, incorporating a C Corp, a S Corp. How your business is formed will determine the personal liability of the founders, how taxes are paid and other important details. The most common and easy formation is a single member LLC. File your business with your secretary of state. And it can usually be done online and completed same day or within a couple of days.
So like in the State of Ohio, I formed almost six or seven C Corps and one S Corp and four LLCs. If you pay an extra like $45 it's like same day registration. Like within a couple of hours it's formed and everything. I'm not saying that's gonna be the case with every state. Some states can take a week or two. Every state's different and what they require, how easy it is like Ohio's LLC.
It's like a two page form. It's very simple to fill out. It's unnecessary to hire like LegalZoom or somebody like that. But like I said, I don't know every state.
But if you're unsure after you've checked out your local state and you're unsure how to fill it out, you can go to Swyft Filings. They're pretty reasonable. So you pick your entity types, you just say, LLC, and you could say, let's just say Florida, or let's just say Georgia, because there's a lot of people that are Georgia that are our viewers here.
So they have the basic package is $49 plus state fees. And that basically gets you your basic, pretty much everything basic that you need. Never obtain a federal tax ID with the company's. It's not necessary because it's free and it's easy to do.
It takes five minutes. I'll show you in a minute how to do that. But you can see here, the state filing fee with Georgia's a hundred dollars. If you want this companies with filings that do everything for you and prepare everything for you, then it's total of 3.99. They charge 2.99 and you get everything done for you. It doesn't say on this one how long it actually takes.
But like I said, every state is different. So check out that if you're unsure. Let's see here.
Next one is, get your business EIN, which is your federal tax ID number. This will set you apart from your personal social security number. So like I said, think about this.
If you have bad or troubling past personal credit, well say TransUnion, Equifax and Experian are the three personal credit bureaus. And you get issued your social security number when you're born. Well, when you start a business, you file for just like your personal, but you get your EIN, which is also a nine digit employer identification number, EIN, that's for any business. It doesn't matter if it's a one man or one woman shop you still need to get your EIN number. So it's a unique number.
And like I said, it's similar to a social security number but that's what separates the identity from your personal, social and your business identity. You wanna separate those. It's very easy to get that. You just go to this, it goes right to the website, the irs.gov.
And it's pretty self-explanatory. I'm not getting into all that during this, but it's super easy. It takes five, 10 minutes to do.
And like I said, let's see here. Also, like I said, I'm not a lawyer, I'm a tax professional. So please seek advice if you're unsure about filling that form out. But it's pretty easy. Next is business phone number. So if you opted to do something like the Opus Virtual Office, it will come with the phone number are ready, your business phone number.
So you don't have to worry about that. You can kind of skip this particular section. But if not, I'm just gonna read this anyway. So you'll need a dedicated business phone number that you'll use for everything. Meaning like all of your business credit applications.
That phone number is gonna be attached to all the business credit bureaus as well. So you'll need that, like I said if you got the Opus package for 99 a month, then you'll have your number already. But if you choose not to go that route, then you can pick some other services such as like these VoIP phone services. I have a list of them here.
You'd wanna stay away from like Google Voice, your personal cell phone numbers. Ones like that are if not near impossible to get listed with the national business directory assistance. Reason why that's important to get listed in the national business directory assistance is like Synchrony Bank, which is an underwriter for a lot of the business store credit cards. And like the Amazon Lowe's, they're gonna wanna check that. They'll actually check that, their algorithm system will check if you're listed or not.
So if you're not listed, you're gonna have a tough time getting approved for some. I'm not saying that's guaranteed, but save yourself a headache and just do this the right way. So listyourself.net is where you can actually list your business yourself.
It doesn't cost anything at all. Individual or personal or business listing. And you're just gonna click on that.
You're gonna put in your new business phone number, make sure you hit the business part, where it says business, your company name and your information there as well. All the business information, ad listing, it's free. It doesn't cost anything.
Let me step back one spot real quick. During the formation of your LLC or your C Corp or S Corp, you're gonna get asked what type of business you're in. So it's something called SIC Code, SIC Code. So if your business is say marketing business, you just go to siccode.com
and look up what your SIC Code is. This is an industrial type code attached to your business credit profile with Experian, Equifax, Creditsafe, and Dun & Bradstreet. So this one is 8742. But there's another code also NAICS Code. So you would do that as well. And every state's different.
Some states asked for these codes, some states do not. So marketing consulting services would be 541613. So that's what you're gonna put on the application. So I just wanted to point that out before I forgot.
So back to the phone services. So you have a few different options. Like I said, you don't wanna use your personal cell phone or Google Voice or any of those free numbers or those numbers that cost like a dollar or $2 a month. You don't wanna go that route because they're gonna be basically blacklisted for getting into the directories. So you can go to Nextiva.
It's a company that's been around a long time. They deal with huge companies and one man, one woman shop. I've been with them personally for, since I think 2009, they have an app you can download. Apple or Android, Google Play Store.
You can use the phone directly like a soft phone as an app. Theirs starts at 18.95 per month and you get unlimited calling, unlimited internet fax, free and local toll free number and 24 hour customer support. Okay, so use the link in the description below if you wanna sign up with them. They're probably the best I would say, go with them overall.
Or you can go to the other one is mightycall.com. It's basically the same type service as Nextiva. They offer a little bit more features, they give you a free trial. Their basic is 29.99 and you get actually a thousand minutes per month. Unlimited users.
If I had to pick between the two, I would say Nextiva. Nextiva actually has a lot more options than MightyCall has. But MightyCall, they give you seven days free trial. But you don't wanna get phone numbers and update them and change them later. You really wanna decide on one and just use that one.
Or you can go to phone.com. Here's the link as well. phone.com offers, using my link you get 20% off for the first three months. And like I said, it's basically the same as the other VoIP, voice over IP phone.
This one you only get 300 minutes per month and it's 12.99 per month. You have one phone number and you can actually do your texting on it as well. And you got the mobile web app, just like anything else you can download their app as well and just use it just like that as well. So that's an option as well. Anyways, I think you guys get the gist of things on that. Next, you would get your business bank account.
So after you've already got your secretary of state documents back, all that's approved and everything, you got those documents, that's when you're gonna move on to getting your business bank account, business checking account set up. So with this, you're gonna need to, you can either go through your local bank, say, if you deal with Chase or PNC or Bank of America, whatever it may be, that's an option, personal preference. If you wanna bank with them, you can bank with them. Some of these bigger banks they tend to not approve new business accounts. If you're a brand new business, especially if you're a certain type of high-risk type business. So I listed some that I personally bank with and they're easy to get approved with, especially if you've been listed in the past with say, check systems or you have bad personal credit because some of these banks they will actually pull through LexisNexis even though they're not giving you credit, but you're opening up a business bank account.
So they wanna see if you're gonna be high risk for them or not. So if you've had any of those troubled issues in the past, you can go through say Radius Bank, NOVA bank, Hatch Business Checking, or Mercury. Those are four great ones.
I actually deal with three of those banks. So check those out. Radius is a very big bank.
I do a lot of banking with them. Let's see here. Next would be your business email and website. So your business online presence.
That's very important because some of these underwriters when you're building up business credit, if you just have your secretary of state documents and that's it, and you try to get vendor credit, you're gonna have a hard time getting vendor credit if you don't have a customized professional email address. So say your company name is ABC Enterprises. You don't wanna get a Gmail or Yahoo like email@example.com or @yahoo.com. So you want a professional email address. They're gonna be looking at that a hundred percent when you're trying to get vendor credit and business credit.
So you can get a company like Namecheap, I've been dealing with them. They're the second largest registerer in the world. They have hosting as well and they have a free website builder and they're the cheapest domain registerer out there.
So you can go over to namecheap.com. Try to always get a .com or a .net as a domain. So you just pick the domain, search your domain like I said, you just say abccompanyoollc.
I'm just using that as an example. Then you're gonna search. It's available at 88 per year. If you use that code as well, like here with my link, you'll get a discount. I think it's like $3 something right now. And then they also have hosting.
So the hosting, let's see here. So the private hosting will actually come with your own private email as well. $14 per year. So you get like 14 bucks a year.
So it's a little bit over a dollar a month. And with that, you get your free, you get your free email addresses like it says here, you can host up to three websites as well. I'm not gonna get into too much details on that.
I think you guys get the point of that. They have a free website builder, but you can hire someone like on Fiverr pretty cheap 50 bucks to make you a custom website. So that's like I said, very important because underwriters such as like U-Line, they report to the business credit bureaus, but they also will look up your website and everything and make sure you're a legitimate company before they're gonna give you credit. So you wanna get that set up.
After you got your website set up, or even if just a one-page website, that's fine for now. You can build it out later. Then you wanna go to google.com business
and that's to create your Google business account. It's free. So that's gonna be your listing with Google like it shows here. So when somebody, a creditor looks up, say U-Line looks up ABC Business LLC in your city, it's gonna come up and show and that's free. It doesn't cost anything. Then you wanna go to Bing Places, which is Microsoft.
You wanna add your business location with them as well. And these are all free. It doesn't cost anything. As well as like Yelp. And then you can go to also this one, BrightLocal, and they'll do everything for you for a fee.
It's like two or $3 per listing and there's like over a hundred directories you can pick. So like I said, I'll have all that in the description below. And this file I'll also include for you guys to go back and go through the steps.
But the most important is getting your online presence because a lot of vendors will decline you business credit if they don't see that you're active, especially online. Also, you wanna set up your Facebook business account. That's free as well. You just create a Facebook business page. Next is Dun & Bradstreet. Get a Dun & Bradstreet number.
So Dun & Bradstreet is one of the four business credit bureaus. So what is a DUNS number? The Dun & Bradstreet D-U-N-S number's a unique nine digit identificator for businesses. One of the four business credit reporting bureaus. So that's different than your EIN number. The EIN number is issued by the government, and then there's numbers issued for that EIN number through these individual business credit bureaus. So there's Dun & Bradstreet, there's Equifax business, Experian business, and there's Creditsafe.
There's no TransUnion for business. So the other major business credit bureaus are just as important as Dun & Brandstreet. However, your business profiles with Experian business, Equifax business and Creditsafe will be generated as soon as the data aggregators, such as like LexisNexis pulls the new secretary of state filings in your state and they search that data and then they basically are selling that new data to Experian, Equifax business and Creditsafe.
So that would generate your profile with Experian and Equifax because you can't create your own right off the bat when you're a brand new business, or when you create a, say you get a net 30 account with U-Line and there's no account set up or no business profile set up with Experian business for your new business. Then when they report their new trade payment, it's gonna generate you your new Experian profile. So as far as your DUNS number, you can get it through this link here and that's a standard way and it takes anywhere from a couple of days up to 30 days for Dun & Bradstreet to issue your number. Or you can go to this other link which is fedgov.dnb.com/webform. This you'll get your Dun & Bradstreet number issued within like usually 24 hours.
Go with this route if you plan on ever applying for say business grants or business contracts, or you wanna bid on anything through the business, government contracts. So you can just use this method to go and get it that much quicker. Next is a starter vendor tradelines, net 30 vendor tradelines.
SO before you can go after high level business credit lines, you need to establish basic business tradelines that report to the business credit bureaus. So all the reporting agencies will have your data and your file. Often, these are referred as net 30 vendors, net 30 accounts.
So before you can go after all these business credit cards here, and I got all these within, say in the last since March until now. So like four months, three or four months, and I did it all on a new LLC that's only 10 months old. I did that to try to show you guys that even new company, brand new LLC, you can still get this. 90% of it's with no personal guarantee. Yeah, my personal credit's good, but getting all these accounts, 95% of them didn't even look at my personal credit and I didn't personally guarantee any of them.
This video is about the basic information about building your business credit up. Even if you have bad personal credit, don't let it discourage you from starting your business and building up business credit. The very first thing that I would suggest you to do after you've done those other steps, you wanna go to Nav Business, nav.com.
If you use my link, you'll get a slight discount. Where is it here? Yeah, Nav Business Boost. What that is is they have different ones.
They have a free business manager for 29.99 a month. Don't even do that because that's not gonna do anything for you. So you can either do the free or the Business Boost. Don't do the Business Loan Builder.
It's not necessary either and not worth the extra $10 a month. So I suggest you do the 39.99 a month. You'll get full business credit reports and scores from Dun & Bradstreet, Experian and Equifax.
You'll get your vantage personal scores with Experian and TransUnion personal, and you'll get 24/7 business and personal alerts. And let's see, all this is not really necessary. It's kind of nothing too important. But this is the most important part.
New build business credit with the tradeline reporting. I may need to say, they'll actually report this 39.99 monthly payment to all the business credit bureaus, especially if you don't have any in your brand new business, you wanna do this because this is the hands-down quickest, fastest way to build business credit. It can literally get your scores build up and get you approved for other vendor accounts. So when you're first starting off, don't expect you to get like a hundred thousand, $200,000 of no personal guarantee business credit right away.
It takes time. But I mean, it can be done even in 90 days or 180 days. It can be done.
So I suggest to get that right away. That's the most important. Then after that, you're gonna go to quill.com. To be able to trigger the net 30 account with Quill, you have to put at least $100 in your cart. So you have to order a hundred dollars worth of merchandise.
If you only have $99 in your cart, it's not gonna give you an option to pay by invoice. So you have to do a minimum of a hundred. Don't go crazy and do like 300 or 400, especially since you're a brand new business. Just do right about a hundred dollars, $120, somewhere around there. Order stuff that you actually use for your business. A printer, ink, or paper towels, coffee, they have the cheapest coffee as well.
I order from them religiously because their coffee's sure cheap for their Keurig coffee and they report to Dun & Bradstreet. And then you got U-Line, which most people know or have heard. U-Line, they will check your business website, they may ask you for a few questions and they could come back and say that you need to pre-pay a few orders before they're gonna give you a net 30 account. So when you first start off, I would only order somewhere around 50 to $75 worth of products.
And then select that you wanna be billed by invoice. And let's see here, where is it at? And then next is grainger.com. And Grainger is, you can buy first aid kits or they're more industrial supply, but it's another starter vendor. There's tons of other vendors that are out there that report to different bureaus. But these are the ones I just put out for suggestions. So at least you'll get the Nav Business biz reports to all of them every month or around the first week of every month.
And then, like I said, Quill reports to Dun & Bradstreet. People say they report to Experian, but it seems like recently they're not reporting to Experian. And then you got U-Line. U-Line reports very quick. Usually the first week of every month, they report also to Experian Business and Dun & Bradstreet.
Grainger reports to Dun & Bradstreet and Experian and they do quarterly reporting with Equifax Business. However, Grainger seems to be spotty on reporting. So you may have to do a couple orders before it actually starts reporting. Like I said, I can give you guys a list of 50 or a hundred other ones. You guys could watch my other videos that I break all these other ones down. But this video was more about how do you start building your business credit? How do you form your business from A to Z, the foundation and everything? This is how you do it.
This is how I got all this that quick. I've been doing this over 12 years. So I have over a hundred videos you guys can go back and watch. Anyways that's all for this video. If you guys have any questions at all, shoot me an email firstname.lastname@example.org.
Again, email@example.com or drop a comment in the comment section below. Appreciate your support. And if you liked this video, please hit the thumbs up. If you're not already a subscriber, please consider subscribing and turning the bell notification on. Till next time you guys take care.