We provide you the tools and resources to save money, get loans, and start a business, all while you stay comfortable in the knowledge that your personal credit is completely protected.
The primary advantage of owning a corporation is the ability to build a Corporate Credit Rating, which exists separately from your Personal Credit.
Both the Field of Credit Establishment and Consulting and general statistics show that the majority of small businesses will need to borrow money at some point. If your goal is to be a successful business leader, you’ll want to learn how to leverage other people’s money using Corporate Credit.
Why Establish Business Credit?
Through our consumer brands Business Credit Enhancement Programs, you will learn how to establish a Corporate Credit Rating that will allow you to:
What Is a Paydex Score?
initial step to comprehending Business Credit is to understand what a PayDex Score is. A PayDex score is like a FICO Score, however loan specialists use it to check whether a business is prompt in paying solicitations, as a rule in thirty day net term accounts.
Our consumer brands teach the clients a proven method for maintaining a PayDex Score of approximately eighty, which indicates that your business pays invoices before the thirty day term period. Lenders check PayDex Scores by requesting a Business Report from one of a very select number of companies that track and publish business information, such as Dun and Bradstreet.
Because so few companies track business information, unlike Personal Credit, it is important for a business to establish and report accurate business information and correct errors should they arise. Oversight on the part of the reporting companies can be astounding; they may not even have a Business Report for your company at all, and no lender will give money to a business without one. With a solid Paydex Score in place, a company can start building Corporate Credit.
What is business credit
This is the essential inquiry of everybody requesting information about our programs. Utilizing a simple, demonstrated technique, we will let you know how it functions and how it can offer assistance. But before that, you need to understand one fact: The more capital you have to start and grow your business, the more likely it is to succeed.
According to recent Census Bureau data, the latest credit crunch has steered more and more people away from using Personal Credit in favor of building Corporate Credit. People are beginning to realize that by owning a corporation and having Corporate Credit they could have leveraged other people’s money and prevented themselves from taking large losses.
One third of the general population has less than $5000 in their personal bank account but owe 1250% in debt for which they are fully liable. Banks say that they want to help small business owners, but they turn down an average of 97% of business loan applications. In order to receive credit for your business, you may have to use your personal assets, such as your car or home, as collateral. Even then, if you don’t have good Fico scores, you’ll likely be turned down, regardless.
Why build corporate?
The primary reason to build Corporate Credit is that doing so separates the owner’s Personal Credit and Business Credit. Typically, starting a business can require a person to delve heavily into Personal Credit, which can lead to a lack of emergency funds, a plummeting Fico Score, and a steadily rising Debt/Income ratio. In that event, no lender is likely to help.
Why Corporate Credit
Through our consumer brands programs, we build your company’s Paydex Score and establish Corporate Credit so that from day one start-up costs can be channeled through the business and leaves the owner’s funds relatively untouched, as the owner’s Personal Credit and the business’s Corporate Credit are considered separate entities.
Additionally, that separation negates the risk that lenders will require that the owner’s assets be tapped to guarantee financing. Having Corporate Credit can also save you money. Average Interest rates on loans are about 18%, but by having a Business Credit and Paydex Score, Interest rates can be reduced to about 10%.
The primary reason to build Corporate Credit is that doing so separates the owner’s Personal Credit and Business Credit. Typically, starting a business can require a person to delve heavily into Personal Credit, which can lead to a lack of emergency funds, a plummeting Fico Score, and a steadily rising Debt/Income ratio. In that event, no lender is likely to help.
Corporate Credit is limited to fully incorporated companies and LLC's. All other forms of business are barred from building credit. In Sole-Proprietorships and partnerships, while you may be “in business,” you are not “a business,” and that distinction is crucial in separating your Personal Credit from your Business Credit. If you don’t have a business entity (an LLC or Inc.), we can assist you in establishing both your business entity and your business financing.
Legacy Credit Solutions has partnered with these companies to offer business funding that requires no up-front cost
Our team is here for you. We're excited to start brainstorming ideas for business financing. Schedule your free initial consultation to chat with a credit experts, discuss ideas, and learn how our process works.
