False beliefs about credit

  • People get business funding all the time with bad credit: Not entirely true: Lenders foucs on 3 areas of your application: Cash, Credit and Collateral. If you have subpar credit, they will see if you meet the cash revenure requirements or if you have a considerable amount of collateral to securitize the loan or LOC. Also , alternative Funding options are availabe as well.

  • Having good personal credit is overrated if you have an EIN: Not true: Just as a SSN Identified doesn't automatically qualify you for funding. Building business credit is intentional!

  • You Can Get a business loan without any credit history: Not true: If you have no credit history (personal or business), most lenders will be hesitant to approve a loan. You may need to build some credit first or explore alternative finacing like crowdfunding, grants, or revenue-based loans.

  • A business credit card doesn't affect personal credit: Not True: Some business credit cards report activity to personal credit bureaus ( especially if you're a sole proprietor or have personally guaranteed the card.) If you miss payments, it could hurt your personal credit.

  • Using personal credit for business is always bad: Not True: Many entrepeneurs use personal credit cards or personal loans for startup capital. While risky, it can be a viable option, just be careful about mixing finances (comingling), which can hurt both your personal and business credit.

Credit Score

Credit score allows you general admission. Credit report allows you VIP access! Credit Report matters more when Securing business Funding.

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Let me Explain

Personal Credit Scores range from 300 - 850 depending on the scoring odel used (vantage, Fico, Etc..)
* In 2025, most lenders standards are 680+ for business loans and lines of credit. More importantly, the score range depends on how well you have managed the 5 personal credit factors.
Vantage Scoring Model

  • 300 - 499 = bad
  • 500 - 600 = poor
  • 601 - 660 = fair
  • 661 - 780 = good
  • 781 - 850 = excellent

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5 Factors that make up personal credit

  1. Payment History 35%
  2. Credit Utilization 30%
  3. Length of Credit History 15%
  4. Credit Mix 10%
  5. New Credit/Inquries 10%

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Factor #1 Payment history

  • Lenders want to know one thing: Can they trust you to pay them back on time?
  • Out of 850 it makes up 297.5 (35%)
  • Lenders want to see a consistent history of on time payments
  • Late payments, charge-offs, or accounts in collections will crush your score.
  • Even one missed payment can drop your score by 50+ points.
  • Solution: Set up auto pay or reminders so you never miss a payment

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Factor #2 Credit Utilization

  • How much of your available credit are you using ?
  • Out of 850 it makes up 255 (30%)
  • This is your credit card balances vs your credit limits (expressed as a percentage) example - If you use $900 of a $1000 credit card limit, you are at 90% utilzation and if you use $100 of the $1000 youre at 10% utilization.
  • Rule of Thumb: Keep your utilization below 20% (under 10% is even better for 2025 standards)
  • Solution: Pay down your balances and ask for credit limit increases to keep utilization low.

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Factor #3 Length of Credit History

  • Lenders prefer people with a long, stable credit history
  • Out of 850 it makes up 127.15 (15%)
  • The longer your accounts have been open, the better your score
  • Beware: Consoildation loans closing old accounts hurts your score because it lowers your average account age.
  • Solution: Keep old credit cards open, even if you don't use them

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Factor #4 Credit Mix

  • Do you have a mix of different credit types?
  • Out of 850 it makes up 85 (10%)
  • Having both revolving credit (credit cards, lines of credit) and installment loans (auto loans, mortgages, personal loans) shows lenders you can manage different types of debt
  • A healthy mix helps boost your score over time.
  • Solution: If you only have credit cards, consider adding a small personal loan or secured loan to improve your mix

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Factor #5 New Credit / Inquiries

  • Are you applying for to much credit at once?
  • Out of 850 it makes up 85 (10%)
  • Every time you apply for credit, a hard inquiry appears on your report unless it's a soft inquiry pull. However, if you like the terms you will need a hard inquiry to accept the terms.
  • Too many inquires in a short period can make you look desperate for credit, which lowers your score
  • Hard inquiries stay on your report for two years, but only impact your score for about 6 - 12 months
  • Solution: Limit new credit applications and only apply when necessary

Master these 5 factors

You'll build and maintain an excellent credit score, unlock higher limits, lower interest rates, and more financial freedom.

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In 2025, having Good to Excellent Personal Credit is a non-negotiable to Secure Business Funding, especially without High-Level Cash Revenue or Substantial Collateral.

Artificial Intelligence

AI has made it easier than ever in 2025 to obtain Great Personal Credit with less effort.

Old way to repair your personal credit

  • Pull your credit reports from all 3 bureaus: transunion, experian and equifax
  • Identify all errors & negative items
  • Write & Mail Dispute Letters (over and over again)
  • Wait and wait some more (Stall tactics from bureaus)
  • Deal with collection agencies(who play dirty)
  • Most people give up after the first couple rounds of disputes, which is exactly what the credit bureaus want to happen!
  • Pay a credit repair company thousands of dollars!

New way to repair your personal credit



  • Use AI-powered tools that instantly scan your credit report, flagging errors, negative items, and high-impact issues in seconds

  • AI-generated legal-grade dispute letters that force bureaus to respond

  • Send disputes electronically for faster processing

  • Use legal loopholes to remove collections, charge-offs, and late payments

  • Add postive accounts instantly: credit-builder accounts and authorized user (AU) tradelines

  • Best of all: DIY rather than paying a credit repair company thousands of $$$

    •

Realistically...

How long does the process take to achieve Good to Excellent credit?

30 days to 6 months on average using AI

Once completed, what kind of business funding options are available for me?

  • Purchase Order Financing
  • Commercial Vehicle Financing
  • Commercial Real Estate Financing
  • Inventory Financing
  • SBA loans
  • Term Loans
  • Business Lines of Credit
  • Startup Unsecured business credit cards
  • Plus more !

My favorite type of business funding.... Unsecured business credit cards!

Here's why :

  1. Easy for startup business
  2. Less than month in business
  3. No Documentation verification
  4. No income verification
  5. 700+ credit score for high limits
  6. Typically 0% interest (6,9,12,15,18 months)
  7. May easily use a guarantor to qualify
  8. Only reports to the business credit profile
  9. Limit increase every 3-6 months
  10. Can apply and get approved for multiple cards!

What is the alternative to having good personal credit?

6-7 figues in revenue or collateral. Other than that, there is No Alternative!

Stretch Your Vision
What would having access to 50k - 100k
of business funding do for your business?

  • Expand Geographically (statewide/Nationwide)

  • Hire Employees(more employees)

  • Marketing Campaign(more leads)

  • Brand Awareness Campaign(more publicity)

  • Bookkeeping & Accounting(more accountability)

For the Life of your Business

Properly structure your business to secure business funding.

Recap of part 1: How to improve personal credit to secure business funding in 2025

Part 2: The cornerstones of funding

How to properly structure your business to secure business funding.

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Over 80% of entrepreneurs have deficiencies in thier business structure preventing funding

1. Data from the US Census Bureau showed a recored-breaking 5,481,437 new business started in 2023.
2. On average, there are 4.7 million business started every year
3. According to the Bureau of Labor Statistics, nearly 50% of business shut down within the first five years. Within ten years, 65% have failed. Only 25% of new business survive to the 15-year mark.
#1 Reason for failure: A lack of capital, cash flow and funding.

Don't Die .......... Expand!!!

Barriers to proper business structure

  • Business credit is not regulated in the same way as consumer credit so there is less transparency.
  • You may not find out the exact reason for a denial
  • Most entrepeneurs are not willing to put in the work to know the details
  • The devil is in the details
  • The goal post is always moving

Big ten ?

Most business Owners think I'm referring to what type of entity such as: LLC, C-Corp or S-Corp. In face, I'm referring to the big ten.

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The Big Ten

  1. AOO or AOI & EIN
  2. Business Prinicipal Address
  3. Business Phone Number
  4. Congruency (AOO or AOI & EIN)
  5. Business Bank Account
  6. Business Domain, Website & Email
  7. NAICS Code
  8. DUNS#
  9. Business Visibility
  10. Business License

Big ten description

  1. AOO or AOI & EIN- LLC, C-Corporation or S-Corporation. These business types give you protection, legal separation, and tax benefits. Additionally, immediately register your business with the IRS to receive your EIN (Form CP-575).

  2. Business Principal Address- Brick & Mortar preferred. If not, acceptable substitution is a Virtual Office Address within your local area (if possible). No PO Box (only use a mailing address)

  3. Business Phone Number- Toll Free 800 number for credibility and legitimacy. Business Cell is secondary, not primary.

  4. Congruency (AOO or AOI & EIN)- Make sure Articles of Organization or Incorporation and EIN Doucument from IRS (CP-575) reflect the exact same Business Name & Address.

  5. Business Bank Account- Open a Business Checking Account and begin building Bank Rating Score by executing consistent deposits and withdrawls.

  6. Business Domain, Website, & Email- Professional Domain and Website that accurately reflects the business name, services offered, and contact information. Prefessional Email that reflects the correct format such as your personal initials, name, or simply info@yourcompany.com

  7. NAICS Code- North American industry Classification System - Used by businesses and the government to classify industries. More importantly, your NAICS code is essential for funding opportunities. Broken down into High RIsk, Low Risk, and Restrictive codes.

  8. DUNS#- It is a 9-digit unique number assigned to businesses by DUN & Bradstreet (D&B). It's used to verify business credit, apply for government contracts, secure funding, partnerships, e.....

  9. Business Visibility- Posting your business on Google, Social Media platforms (Facebook, Instagram, Linkedin, etc.) and the National 411 Directory to be visible to potenial customers and other businesses is great visibility.

  10. Business License- Lastly, go up to your local City Hall and apply for a Business License. It's the most cost-effective, fastest, and simplest thing you can do to establish amazing credibility for your company. I received my business license same day I applied!

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Structuring the Big 10 properly, in the right sequence, and recording promptly will result in success!!

Big 10 Sequence

  1. Business Prinicipal Address
  2. Business Phone Number
  3. Business Domain, Website, & Email
  4. NAICS Code
  5. AOO or AOI & EIN
  6. Congruency (AOO or AOI & EIN)
  7. Business Bank Account
  8. DUNS#
  9. Business Visibility
  10. Business License

Big 10 Recording

  • There is an important saying in Real Estate: If it's not recorded it didn't happen!

  • In Real Estate, No funds are transferred until all documents are recorded to the proper channels and verified. In the same way, all business structure changes must be recorded to secure business funding!

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What kind of business funding options are avaiable for me?

  • Purchase Order Financing
  • Commercial Vehicle financing
  • Commercial real estate financing
  • Inventory financing
  • Equipment Financing
  • SBA Loans
  • Term Loans
  • Business Lines Credit
  • Startup Unsecured Business Credit Cards

Good to Excellent credit with proper business structure. Not an exhaustive list.

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Unsecured business credit cards (0% APR)

Here's why:

  • Easy for StartUp Business
  • Personal Credit Driven
  • No Documentation verification
  • No income verification(projected income)
  • 700+ credit score for High Limits
  • Typically 0% intrest (6,9,12,15,18 months)
  • May easily use guarantor credit to quailfy
  • Only reports to the business credit profile
  • Limit increase every 3-6 months
  • Can apply and get approved for multiple cards!

Recap of Part 2: How to properly Structure Your Business To Secure Business Funding

Biggest Barriers to Building Business Credit???

Lack of Awareness!!!

"A significant number of small business owners are unaware of business credit. For instance, a survey revealed that 45% of small business owners did not know they had a business credit score, and 72% were unaware of where to find information on thier business credtit score." -SBA

Biggest Barriers to Building Credit???

Time and Resource Constraints

As Entrepreneurs, we wear many hats and often focus on immediate needs like sales, marketing campaigns, product or service development , or hiring. Sense building business credit is a long-term financial strategy, it gets put on the back burner.

Biggest Barriers to Building Credit???

Fear of Misunderstanding of Credit

A debt-averse mindset causes some business owners to avoid loans or credit lines altogether, which means they miss out on growth opportunities.

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Just the Facts

  1. Business credit is separate from personal credit- Business can establish their own credit profiles using their Employer Identification Number (EIN), separate from the owners's Social Security Number (SSN).

  2. Good business credit helps secure better financing- A strong business credit profile can lead to higher credit limits, lowers interest rates, and better vendor terms.

  3. Business credit scores are tracked by separate bureaus- Major business credit bureaus include Dun & Bradstreet (D&B), Experian Business, and Equifax Business. Each has its own scoring system.

  4. Vendors and lenders report to business credit bureaus- Some (not all) suppliers, lenders, and credit card issuers report payment history to business credit agencies. In fact, less than 15% report to the business credit bureaus.

  5. You must actively build business credit- Unlike personal credit, business credit doesn't automatically build over time; it requires intentional setup and usage.

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Myths

  1. "Using your personal credit is enough for your business"- Relying solely on personal credit puts your assets at risk and limits your business's ability to grow independently. Personal credit only gets your foot in the door.

  2. "Corporate credit is useless! I don't need 10lbs of toliet paper in my garage!" "80% of what you need for your business can be used from corporate credit vendors."

  3. "If you've been in business for a while you most likely have good business credit-" Wrong!!!

  4. "You only need business credit if you're borrowing money-" Business credit affects insurance rates, lease terms, vendor relationships, potential partnerships, and overall credibility- even if you're not borrowing money.

  5. "Once established, business credit doesn't need monitoring"- Wrong. Just like personal credit, it can be affected by fraud or incorrect information, so it needs to be reviewed regularly.

Business Credit Terminology

  • Business Credit- A record of a business's ability to repay debts and obligations, tracked by credit bureaus and used by lenders and vendors.

  • Business Credit Bureaus- DUN & Bradstreet, Experian Business, and Equifax Business.

  • DUNS Number- A unique 9-digit identifer issued by Dun & Bradstreet (D&B), required to build business credit.

  • Vendor Credit / Net Terms (Net-30, Net-60, etc.)- Agreements allowing businesses to pay for goods or services within a set period after receiving them. These can help build business credit if reported.

  • Tradeline- A credit account listed on a businesses credit report, showing details like the lender, limit, payment history, and balance.

  • DBT- Stands for Days Beyond Terms. It indicates the amount of days the business is late to a business creditor. 3-5 DBT can have a serious affect on your business credit report.

  • Payment Experience- Refers to a recoreded transaction between your business and a vendor, supplier, lender, or creditor that reports to the business credit bureaus (Dun & Bradstreet, Commercial Experian, and Commercial Equifax).

  • Starter Credit- Designed to help new or small businesses begin building their credit profile without requiring a personal guarantee or existing credit history. These credit types are essential for laying the foundation of a strong business credit file.

How to build business credit... simply!

  1. Follow the BIG 10- formula I spoke about above

  2. Apply for Net-30 Vendor Accounts (trade credit)- These are accounts that allow your business to "buy now, pay later"- typically in 30 days (you use them daily or weekly already!).

  3. Secured Business Credit Cards- A credit card backed by a cash deposit- low risk for lenders and a great way to build a business credit record (you use a bank already!)

  4. Gas/Fuel Cards- Business fleet cards that report to business credit bureaus (you pay for gas already!).

  5. Credit Builder Programs- These are structured plans that help you establish tradelines and report to business credit bureaus (you spend $50 a month or more for Starbucks already!)

Experian Check

Run a search with Experian to see if your company is recognized and established.

smallbusiness.experian.com

a. Enter company name, city, state and one of 3 outcomes will appear:

i. There will be no result
ii. The company name and address appears
iii. The company name, address, and "with tradelines" appears

In 2025, Lenders are placing more emphasis on business credit profiles to lend money

3 Most Important Aspects of Building Business Credit:

  1. Apply for and Get Approved for as many Tradelines as possible: Over 14 tradelines is considered a robust business credit profile.
  2. Have as many Payment Experiences as possible to boost your credit score rapidly!
  3. Never be Late! (Remember, there is no 30, 60, 90-day late on the business side.)

Business Credit has 10 to 100 times greater credit capacity compared to personal credit. SBA.gov

The 3 Cornerstones to Business Funding

  1. Personal Credit & Report
  2. Business Structure
  3. Business Credit Score & Report