1 The Greatest Business Mystery Solved! 1 by Mark Kane
2 The Greatest Business Mystery Solved! 2 The Greatest Business Mystery Solved! by Mark Kane, Credit Wise Advisors Where do you go when the bank says, NO? How to get $25,000, $50,000 or even $250,000 to fund your business (even if you don t have perfect credit). Stop! Turn off your cell phone. Quit tweeting and texting for the next 4 minutes. Grab a cup of coffee. Shut the door so there are no distractions. This is that important! Because I m about to reveal to you the greatest secret to getting as much as $25,000, $50,000 or even $250,000 to fund your business even when the bank says NO! and if you don t have perfect credit. I have to warn you though Don t pay attention to the credit card companies. Forget everything you ve heard. You can actually hurt your chances of getting the financing you need if you follow their advice. It s true. Why? Because they re more concerned about raking in record profit margins and reaping huge bonuses! They don t care about your business.
3 The Greatest Business Mystery Solved! 3 Credit cards companies want you to keep piling up debt on your high-interest personal credit and hold you personally liable for your expenses. Do you think they really care if it takes you 10, 20 or 30 years to pay it back? Or if lowering your spending limit for no good reason has affected your business? Or if your personal credit is destroyed while you try to build the business of your dreams? Of course not. Not when it means more money for them! And let s not leave out the banks. Business lending is at all-time lows. Think they re interested in taking a risk, however small it may be? The secret my lawyers & accountants didn t even know about Finally revealed right here! But there s a little known secret that most small and mid-size business owners don t know about. Heck, even most credit card companies don t advertise it. I didn t even know about it until recently and I ve been running businesses for the last 20 years! Accountants I ve used for years weren t aware of it. Lawyers who I ve paid up to $700 an hour didn t know about it. But I m about to reveal it to you right now and it won t cost you a penny I m not going to make you read every word of this report or make you jump through hoops to get Business credit is perfect if you are: Just starting a business It s critical for newer businesses to have access to credit and capital and not rely on a personal guarantee. The sooner you get started, the better. Have an existing business Even if you ve been in business 10 years and don t have a business credit profile, you can optimize your current credit profile to get the funding your business needs fast! Buying a business or franchise First, you should form a new entity for the purchase. We can help with that. Then, you ll want to establish strong business credit so once your sale closes, you re ready to jump in.
4 The Greatest Business Mystery Solved! 4 the secret. I know you re busy so I m going to give it to you right now and then explain how to make this secret work for you. Here it is: You can get access to business credit. Usually reserved for large corporations, we ve developed a 7-step process for small and mid-size business owners to get the credit they need without a personal guarantee. Mystery solved! We re so confident that we guarantee you ll get the business credit you need if you follow our Business Building Credit System. That s right! We guarantee it. More about that in a moment Whether you re just starting a business, have an existing business or if you re buying a business or franchise, you can now access business credit. Business owner with POOR credit gets $77k funding; security deposit waived Credit Score: 499 Homeowner: YES Equipment: 1999 Hyundai 450 Excavator Equipment Cost: $77, Security Deposit: NONE Amount Funded: $77, Additional collateral: 1999 CAT 963 Loader with $80,000. Comments: This client had a low credit score due to a history of late and slow pays. The client also had a very small amount of cashon-hand, limiting his ability to put down a security deposit. Due to the strength of the collateral, he was approved without requiring any security deposit. Don t have perfect personal credit? No problem. It doesn t even matter if you have less than perfect personal credit. You can still get business financing. That s right. You no longer have to rely on your personal credit to finance your business. You can rebuild your personal credit and create a business credit profile to get the funding you need to grow your business.
5 The Greatest Business Mystery Solved! 5 Imagine not relying on just personal credit cards to finance your marketing, purchase inventory or pay for expenses sleep easier every night knowing one misstep won t cost you your family s home and get access to much needed capital so you can expand. That s a dream come true for many business owners I work with, especially right now. Does this sound familiar? We re very sorry to inform you that your credit limit has been reduced due to current economic conditions blah, blah, blah! Take one client we re working with right now. Mike owns a dozen wireless phone stores. This is his most recent venture after successfully running other businesses for more than 30 years. And just like he s always done, he financed his inventory with his American Express card. Every month he bought $50,000 worth of inventory, sold it and paid it off before the end of the month. But just a few months ago, his purchase was declined. American Express reduced his credit limit from $50,000 to $30,000 without any notice not because of anything he had done. I didn t know I could do this. Are you telling me that I could have been building business credit and I may still be able to get business credit? Mike, owner of 12 wireless phone stores, who had financed his $50,000 inventory with personal credit until his limit was slashed to just $10,000.
6 The Greatest Business Mystery Solved! 6 The only response he got went something like this: We re very sorry to inform you that your credit limit has been reduced due to current economic conditions blah, blah, blah! So he had to scramble to find other ways to finance his inventory. A short while later his $30,000 inventory purchase declined. Why? Because his credit limit was reduced to $20,000. Then his credit was squeezed again to $10,000. Just like you said, I was able to get 3 business credit cards that came with only my business name on them. I love it when I use them and the cashier asks for my ID. They always look surprised that there is no person s name on the card. - D. Howard. It gets worse. As his credit is getting squeezed American Express is reporting to the other credit bureaus that his credit is being reduced so they also follow suit. Meanwhile, the amount of debt as a percentage of his total available credit or what s called his debt utilization rate increases. This is one of the most important indicators creditors look at when evaluating a credit score and Mike s personal score was dropping like a brick. When he came to us, we immediately showed him how he could separate his business credit from his personal credit and his first reaction was, I didn t know I could do this. Are you telling me that I could have been building business credit and may still be able to get business credit? The answer is, Yes! We re working with him to help him open other lines of business credit that s NOT personally guaranteed so he can eventually expand his business. Right now, the word expansion is not in his vocabulary. Right now, it s survival.
7 The Greatest Business Mystery Solved! 7 You really can get the funding you need without putting your personal credit at risk. I ll show you how in just a moment. But first I think it s important that you know a bit more about me. My name is Mark Kane and along with my wife, Vivian, we own Credit Wise Advisors a firm that specializes in helping business owners turnaround their credit and get the funding they need to finance their businesses without sacrificing their personal credit. If you re like me you probably thought business credit wasn t even an option. As a small business owner, I personally guaranteed everything because I thought that s the way it was done. I even prided myself on how well I did it while growing my Internet marketing business. I started with a $5,000 line of credit on my American Express and I played the 30-day float. Over time, I was regularly spending $300,000 on my card every month! If anything went wrong the expenses would have crushed me. I didn t have that kind of money to cover the costs! Fortunately, I was lucky enough to avoid disaster. The question that still haunts me to this day Are you willing to give me your home if you fail? Then I got into online micro lending giving small loans to consumers. But to fund the business, I needed $1 million in financing and the only way I could get financing was through a lender. I ll never forget the loan officer asking me this question
8 The Greatest Business Mystery Solved! 8 Are you willing to give me your home, if you fail? What was I going to say? I had to say yes. What choice did I have? I can t tell you how many times I woke up at 2 or 3 o clock in the morning with the sheets soaking wet because I was sweating over whether I could make that What do you say to your children when they ask, Why can t we go on vacation like everyone else? Why can t I go to camp with my friends like last year? Can I have new shoes? month s payment thinking about what if What if our marketing doesn t work this month? What if we were off in our projections? What if something happens in the market we have no control over? I don t mind telling you I was nervous. You probably feel it too some nights. It s tough. And it s especially tough knowing that if things do fall apart it s not just the business that will fail. Your business is your baby. That s tough enough to think about losing. But to lose the roof over your head too? And risk your family s income? Client increases credit line by $1 million Type of Company: Packaging Challenge: Client had a revolving credit line for 11 years, but bank was unable to increase credit line as needed. Result: Client received a subordination from a bank and was able to increase its line of credit by $1 million. What do you say to your children when they ask, Why can t we go on vacation like everyone else? Why can t I go to camp with my friends like last year? Can I have new shoes? Every question is like a knife that cuts into you.
9 The Greatest Business Mystery Solved! 9 Perhaps you ve been in that situation. Or perhaps you ve even waken up in the middle of the night scared that you won t be able to make your payments. Your mind races with thoughts of losing your family, your home, your car and everything you worked so hard to earn. Fortunately, it doesn t have to be that way. We can help you rebuild your personal credit and separate your business credit. So if anything were to happen to the business your personal credit is protected. We work with small and mid-size business owners just like you so you can get the credit you need using a 7-step process We ll work with you every the step of the way to: 1. Improve your personal credit. 2. Set the foundation for building business credit. 3. Optimize your banking assets and revenue to maximize your fundability 4. Get set up with all 3 business credit reporting agencies. 5. Establish vendor credit. 6. Create national revolving credit card accounts. 7. Get a bank loan that you can use to access cash and improve your business credit rating. And as a reader of this special report, you re entitled to ONE complimentary consultation. We ll show you how to get started so you can finally begin to get the financing you need without putting your personal credit at risk! How is business credit different from personal credit? Good question. For most people, business credit is a mystery. Credit profiles are created by 3 business credit bureaus about every business using the business
10 The Greatest Business Mystery Solved! 10 name, address and federal tax identification number (FIN) or the employer identification number (EIN) that you get from the IRS. Other creditors rely on your business credit profile to determine if they want to grant you credit and how much credit they ll give. The Big 3 among the major business credit bureaus are: 1. Dun & Bradstreet 2. Experian Business 3. Equifax Business The information provided to the bureaus is completely voluntary. No business is required to send it in so the bureaus may never receive all or even any information about your business credit transactions. You could go for years racking up business credit without any of it being reported to the bureaus unless you know how the system works! Business credit scores range from 0 to 100 with 75 or more considered an excellent rating. Personal credit scores, on the other hand, range from 300 to 850 with a score of 720 or higher considered excellent. Most creditors want to see a score of at least 680! Understanding the difference between personal credit scores and business credit scores What s a good personal credit score? (based on a scale from 0 850) Excellent Good What s a good business credit score? (based on a scale from 0 100) Excellent
11 The Greatest Business Mystery Solved! 11 WARNING! Your score is based on more than just whether you pay your bills on time. It can also be affected by the amount of available credit, the length of time you ve had a credit profile, the number of inquiries made on your credit profile and more. And the big mistake I see business owners make is that they use their personal information to apply for credit, leases and loans they re going to use in their business. This drives down their personal credit score! Let me explain. The average consumer gets just one inquiry per year and has 11 credit obligations (7 credit cards and 4 installment loans). Business owners are not your average consumer. Myth #1: To get business credit I first need excellent personal credit. Fact: Although lenders will look at a business owner s personal credit, you don t need perfect personal credit to get started. That s why we work with clients to help them build their personal score while at the same time build their business credit profile. They carry both business and personal credit. This usually doubles the number of inquiries, which reduces their score. They also carry higher balances, which reduces their available credit and their score even more. Meanwhile, they never build their business score that could help them access much needed business credit in the future.
12 The Greatest Business Mystery Solved! 12 Myth #2: My American Myth: Express Business Card gives me access to business credit. Fact: Although it may say Business on the card, your name under the business name tells creditors it s personally guaranteed by you. Unfortunately, it s still considered personal credit. So how do I get started? Step 1: It all starts with you! The first place to begin is with your personal credit. Many lenders look not only at the business ability to repay a business loan, they will look at the individual business owner s credit profile applying for the loan. Don t get frustrated! I m a business owner myself and I understand what it s like to try to build a business and until recently I ve done it ALL with personal credit. You do what you have to do, right? I understand that. Do you think I had perfect credit? Absolutely not! Most business owners don t. That s why we specialize in first helping business owners restore their personal credit scores. It s often easier than you think. In fact, a recent CNN report showed that 95% of all credit reports have errors and at least one-third of those errors are detrimental enough to be denied additional credit. We see it all the time! Most credit profiles are inaccurate. And many consumers and business owners are denied credit through no fault of their own. No wonder business owners are having troubles getting the credit they need! It doesn t have to be that way. We work with business owners to fix those errors. We audit your personal credit profile (don t worry, we do all the work!) and go
13 The Greatest Business Mystery Solved! 13 through it line by line and make sure everything is accurate according to your rights under the Fair Credit Reporting Act. We also show you how to separate your business expenses from your personal credit. This reduces the debt ratio and begins to turnaround your personal credit score while at the same time building your business credit. In many cases, we begin to see personal credit scores begin to turnaround in less than 60 days! At the same time, we can also build your business credit. How do I go about building business credit? The key is to establish good business credit scores with all three business credit bureaus. How? Find vendors, suppliers and credit card companies Myth #3: If I get turned down that can give you a little credit I ll just keep trying other without using your personal credit creditors until someone score as the basis. eventually says yes. The next step is to have them report your business payment history to the credit bureaus. Next, you must complete all the basic lender approval requirements. Just about every lender works with a checklist of about 20 items each one is required. Fact: Persistence is usually an admirable trait, but not when applying for credit. Every application counts as an inquiry. And after the 3 rd one most creditors won t even consider an application for at least 90 days! Some of them are very simple things like you must have a business license and a dedicated phone line listed under the legal business name with 411 directory assistance. If you re missing just one of these 20 items, however, your loan is automatically denied.
14 The Greatest Business Mystery Solved! 14 WARNING! strikes and you re out! Unfortunately, this is no game. Let s face it. Creditors are looking for any reason possible to deny loans. It used to be that one out of every 10 business loan applications was approved. Today, the figure is as low as 1 out of every 100 and most of those denials are due to not complying with one of the 20 requirements on the checklist. I m sure you ve heard the expression, 3 strikes and you re out. Same is true when applying for credit. Every time you resubmit your application because you re missing something from that checklist counts as another strike. Any more than three and you won t even be considered for a loan for at least 90 days! That s why it s so important to begin with the foundation for building business credit. Most business owners on their own skip this step and pretty soon it s 1 2 and 3 strikes you re out! Step 2: Build the Foundation We begin by first looking at your setup structure starting with the name of your business. Even if you are already incorporated or have been in business for a while, we need to check to see if your business conflicts with other businesses or if it could potentially cause Trademark infringement. Here are just the first 4 steps in that process: 1. Credit name search with Dun and Bradstreet. Check to see if any businesses with the same or very similar names are listed with Dun and Bradstreet (D&B). To use D&B s Find a Company search Click Here. Your business name should already be listed with D&B and it must be unique.
15 The Greatest Business Mystery Solved! National name search with Knowx.com. Make sure your name does not conflict with other businesses nationwide using The cost is $65 but it s well worth it. The same service is free for our clients. 3. Trademark infringement name search. Check with the U.S. Trademark office to make sure your business name will not cause trademark infringement. You can do that for free when you Click Here. 4. Finally, you need to search online directories to see if your business is listed correctly, or even listed at all. If your business shows-up, make sure all the information is correct. If it doesn t show-up, be sure to create a free business listing with the Superpages directory. You also need to check whether your business is listed in the 411 directory assistance, whether you have a toll-free number, whether all agencies list your business exactly the same and much, much more. Step 3: Your Business Fundability Myth #4: I just need to shop for the right bank that wants my business. Fact: Changing banks may actually do you more damage. Creditors want to see a banking history and the longer the history, the better off you ll be. Don t bother looking up fundability in the dictionary. It s not there. Fundability is a phrase coined by our business partner to describe how a business measures up in relation to the entire business lending and investing community. It s not just about your business credit. It includes several key components that determine how your overall business is seen by lenders, investors, insurers, suppliers, and more. Basically, we know that your business was worth the risk for you, but is it worth the risk for them?
16 The Greatest Business Mystery Solved! 16 The answer will increasingly be YES! as your business fundability grows. And with our network of 164 lenders in the United States, Canada and Great Britain we can get you the funding you need even when the bank says, NO! You see, we re doing more than just helping you build strong business credit. We are improving the overall health of your business while greatly increasing your ability to succeed. One of the best methods to do that is called factoring, in which you get cash for your receivables. This is a great way to increase cash flow that most business owners don t even know exists. It s not a loan.
17 The Greatest Business Mystery Solved! 17 It s not based on your ability to pay or even your debt-to-income ratio. It s based on your customers ability to pay what they owe. You get your cash in hours! We can also help you get your equipment financed Need financing for your facilities? No problem
18 The Greatest Business Mystery Solved! 18 One of the major components lenders look at is your bank account. Everything in business lending and business credit starts from the day you open your business bank account. Your business banking history is vital to your future success of getting a business loan. WARNING! DO NOT MOVE BANKS. The longer your banking history is the better. Step 4: Get set up with all 3 credit reporting agencies Like anything else, there s a right way and a wrong to build business credit. Our system walks you through the process of building strong business credit scores with the Big 3 among business credit reporting agencies. For example, many businesses set up as sole proprietors or partnerships and operate for years under the mistaken assumption that they have business credit. Wrong! The mistaken assumption is fostered, in part, by the business credit reporting agencies because they give a sole proprietor a credit file and even assign business credit scores. Myth #5: I already have a Paydex score with Dun & Bradstreet so I have built business credit. So why isn t it reported as business credit? Because all loans and credit lines extended by lenders, banks, business credit card holders, etc. are tied directly to sole proprietor or partner personally. You could be doing business, but you re not truly a separate business. Fact: It s true D&B is a valuable part of the equation to building business credit, but they only represent one-third of the task. Experian and Equifax are of equal value and they serve different markets.
19 The Greatest Business Mystery Solved! 19 The solution? In order to build business credit scores separate from you personally, your business must either be incorporation (INC or S- Corp) or a limited liability company (LLC). Now, when you build business credit scores, the loans and lines you receive are not tied to your social security number and will not report on your personal credit profile. It s also important to understand which credit agencies will best serve your financing needs. If your goal is to obtain loans or lines from a bank then Equifax may be the most important component of your credit building process. Equifax operates the Small Business Financial Exchange where banks share business data between themselves. So, if you do not build strong business credit scores with Equifax, you may be eliminating your chances for true bank financing. Many business credit card providers, leasing companies, vendors and even commercial landlords rely heavily upon Experian BIS (Smart Business Reports). Here are just a few success stories Deal: Start-up franchise Type of Company: Butcher shop (TX) Funding: $424,000 Deal: Acquisition Type of Company: Gas station (NC) Funding: $2.1 million Deal: Acquisition Type of Company: Animal control (TX) Funding: $1.2 million Deal: Acquisition Type of Company: Pet kennel (NC) Funding: $600,000 Deal: Start-up franchise Type of Company: Jungle play center (NJ) Funding: $544,000 Deal: Acquisition Type of Company: Gas station (LA) Funding: $420,000 Deal: Acquisition Type of Company: Liquor store (FL) Funding: $565,000 Deal: Refinance & Real estate purchase Type of Company: Franchise hotel (TX) Funding: $1.8 million Deal: Acquisition Type of Company: Donut franchise (NC) Funding: $750,000
20 The Greatest Business Mystery Solved! 20 Building business credit is not complete without having a strong Experian Smart Business profile and score. Step 5: Establish Vendor Credit Vendor credit or trade lines are among the fastest and easiest ways to establish business credit. A vendor line of credit is when a company (vendor) extends a line of credit to your business on Net 30, 60 or 90 day terms. This means you can purchase their products or services up to a maximum dollar amount and you have 30, 60 or 90 days to pay the bill in full. So if you purchase $500 worth of goods today, then that $500 is due within the next 30 days without interest. It s a terrific way to ease cash flow and begin reporting to the business credit bureaus. When your first Net 30 account reports your trade line to Dun and Bradstreet, the DUNS system will automatically activate your file and your number if it isn t already. WARNING! There are more than 500,000 vendors that extend business credit, but only 1.2% of them report to the national business credit reporting agencies. We ll show you which vendors report that you ll want to select. The goal is to have at least five Net 30 accounts opened and reporting. They don t have to serve 100% of your needs initially. Later, once your scores are built, you can add better vendors as you need them. Don t worry, we ll help you.
21 The Greatest Business Mystery Solved! 21 4 tips to building vendor credit: 1. There should be enough vendors to choose from so that if one or two insist on opening an active credit file first, move on to another. 2. Always apply first without using your SSN. Some vendors will request it and some will even tell you on the phone they have to have it. Submit first without it and use only your EIN. 3. If a vendor asks you to place an initial prepaid order first, get that order out of the way fast and move on to having a Net 30 account opened. 4. Pay your vendor accounts as close to Net 15 days as possible. The quicker you pay them the better your business credit scores will be. Be patient and allow time for the vendors reporting cycles to get into the system and begin impacting your business credit scores. It usually takes 90 to 120 days to build business credit scores because it typically takes three cycles of Net accounts reporting to build credit scores. It simply cannot be done faster. And anyone who tells you it can is not being honest with you. Unfortunately we see claims all the time from advertisers who say they can build business credit in 30 or 60 days but that just isn t the truth. We wish it was faster. But it usually takes 90 to 120 days while the accounts are reported. Step 6: Create national revolving credit accounts Do not pass Go unless steps 1 to 5 are completed To build business credit you need to obtain 3 revolving business credit card accounts. These accounts report to the business credit agencies in different ways and carry more weight than the vendor credit accounts. A revolving credit account is simply one that allows you to pay a minimum due per month and not the full outstanding balance. These accounts are another terrific
22 The Greatest Business Mystery Solved! 22 tool to ease cash flow. They normally report to Experian and sometimes to D&B and Equifax. Bet you didn t know this: there are more 500 business credit card issuers, but only 40 award credit without a personal guarantee! We give them to you so you can avoid the hassle and frustration while building your business credit. Because of how they report, these accounts will help build your business credit on a larger scale than just the Net 30 day vendors alone. WARNING! There s no point in applying for revolving credit accounts if you haven t done steps 1 through 5. Why? Because you ll most likely get declined. These accounts will be checking to see that your business credit foundation is set and that your business credit files are open. They may also check your bank rating, look to see if you have some open vendor lines of credit and, in many cases, they will want to see that your D&B file is open. Tip: It doesn t matter which revolving credit card accounts you open and make purchases with. We have a great selection of companies offering office supplies, building supplies, fuel and we have accounts from major retail and specialty providers. The key is to begin establishing the accounts. Step 7: Get a bank loan that you can use to access cash and improve your business credit rating. Getting bank credit makes your business more credible in the eyes of almost all other lenders. It s similar to the day you personally get approved for a home loan. It s the day, and the event, that makes ALL other lenders take notice and puts you on their credit map.
23 The Greatest Business Mystery Solved! 23 However, too many business owners think that obtaining a bank loan is an impossible dream. Well, it isn t. Our Business Credit Building System has a proven method for obtaining your first business bank loan. We even provide a list of the banks that have worked with thousands of other members. IMPORTANT: Do not let your balances exceed 30% of your available credit. Anything above that will negatively impact your credit score. Here s another secret I bet you ve never heard before: credit card providers do not report your available credit limit, so most lenders assume your available credit limit is your highest reported balance. That means when you first receive a business credit card you need to run it up to its limit (not over) and after you receive your first bill, and then pay it down to the 30% level. Going forward you need to maintain a balance of around 30% or less to optimize your business credit score. We can help you with that too. Which brings me to final point You now have two choices: 1. Continue to beg & borrow with your personal credit OR 2. Get the business credit you need with our proven Business Credit Building System that can generate $25,000, $50,000 or even $250,000. To me and many of our clients the choice is clear. Imagine, not having to rely on your personal credit cards any longer no longer risking your family s future and finally sleeping easier every night knowing that your business credit is separate from your personal credit. Just as importantly, you can finally get the funding you need and not be at the mercy of credit card companies that can cut your credit for no reason at all!
24 The Greatest Business Mystery Solved! 24 What do you have to lose? Call us TODAY for a FREE Confidential, No-Obligation Consultation Call Toll-FREE As a reader of this special report, you re entitled to a FREE consultation. We ll show you how we can help you repair your personal credit and build your business credit so you can get the funding you need. Whether you re a new business owner or a veteran business owner and you want to separate your personal credit from your business credit, we can help. We re so confident that our Business Credit Building System works that we even make this incredible promise You have absolutely nothing to lose with our No-Risk, Money-Back Guarantee That s right. We either put up or shut up. All the risk is on us with our 100% Money-Back Guarantee that says: If you follow our Business Credit Building System and don t get 5 vendor lines of credit, 3 business credit cards and 1 bank loan, we will give you your money back. No questions asked. What could be more fair than that? Call us NOW at for your FREE Consultation Find out what we can do for you. Your call is confidential and there s absolutely no obligation. You have nothing to lose. I look forward to taking your call, Mark Kane, President & CEO Credit Wise Advisor