WE POSSESS THE ABILITIES AND THE KNOW HOW FOR ALL YOUR BUSINESS NEEDS

Building a business takes capital. You can use your personal funds and credit to accomplish your dreams, but why would you if you don’t have to?

Our Business Credit Builder program helps you start and grow your business without using your own funds or personal credit.

We provide you with an easy step-by-step system to build business credit and the full assistance of our certified business credit coaching team. Plus we provide you the only system where you can actually monitor your business credit reports and business credit building in real time.

There are three paths a business can travel.

• • One path leads to a bridge that is out. On this path, the business fails, which often leads to the loss of personal savings, credit and relationships. 50% of businesses end up here within the first five years.
  • Another is the path to nowhere. It creates just a long hour, low paying job. 90% of those who survive into year six find themselves on this path. This path makes the business difficult to sell when it’s time to exit because new buyers typically aren’t interested in buying long hour, low paying jobs.
  • The last path is the success path. On this path, the business generates excellent cash flow and works toward great exit reward.

The Success System identifies issues known to pull businesses off the success path while offering instructions and recommendations to getting your business on the success path and staying there.

What path are you on now and which path do you want to be on?

Business Success can be about the business’s bankability. Is your business bankable?

In order to answer that question? You first need to know what the term bankable means. Think of becoming bankable as completing four legs of an unfinished table. Your business is bankable when the four legs of the table are complete.

• • Leg one is completing all lender compliance items. These are a series of 20 items that the lender‘s computer will check to see if your business has completed them all.
  • Leg two is acquiring business credit tradelines. Your business credit reports must show at least ten (10) reporting tradelines. These are accounts they have with vendors or lenders that report how their business pays its bills. Just like trade lines on their personal credit reports, business credit, trade lines report every single month. If you pay early on time or late.
  • Leg three is having strong business credit scores. Your business must have credit scores of 70 or above to be considered strong to a lender. The higher their score is, the more likely you are to pay on time.
  • Leg four is having a good business bank rating. Banks assign every business a rating based on the average daily account balance of your business bank account. This indicates the business’s ability to pay their bills. Your goal is to maintain at least a low five (L5) bank rating.

Let‘s look at why:

Lenders Sell Loan Paper – What this means is that almost all lenders bundle and sell their loan portfolios to investors in the secondary market. In order to get the most profit they can, they seek to show investors that the loans in those portfolios are “conforming” or all of a similar nature and that they are all of a similar risk. In the risk category they want to show that their loans fall within a low risk of known default analytics. To do that they use Lender Compliance items.

Compliance Items – A few examples are anything lenders can quickly scan to see if your client falls in any category of prior loan defaulting businesses, such as; operating a business from a residential address, not having a website, using a free email account, not NAP validating and about 20 more.

Keeping Costs Down – Now imagine you are a lender that is looking at millions of loan applications each year where running a business and personal credit report on each might cost you $10 or $20 per applicant. What if you found a way to eliminate up to 80% of those applicants based on available free database scans that would then save you 10 or 20 million dollars a year? That is exactly what Lender Compliance does.

Instant Scans – Free database APIs are available that let a lender‘s underwriting computer scan; bank ratings, NAP validation, address listing, phone types, UCC, Trademark, SIC, web scores, basic business credit, and more. This allows lenders to build risk model algorithms to instantly spot high versus low risk applicants without having to spend a dime to do so.

Passing Compliance – Performing the free Success Scan does the same thing a lender‘s underwriting algorithm is going to scan for and allows you, to know exactly what needs to be done so you will pass Lender Compliance.

The Next Level – In many cases the only way you will make it to the next level of a lender‘s underwriting approval process is by having all their Lender Compliance items turned to a “Green Check” in your Success System. This gets you at least past the free gatekeeper where now credit, revenue, business industry, etc. become the consideration items for your approval.

Over 90% of small businesses do not currently pass Lender Compliance!

• • Step One – Access To Capital
    The first step in the live coaching process is to determine your ability to reach the goal of becoming bankable. Becoming bankable requires having access to working capital either from existing resources or from a pre-qualified funding program. There are many steps in the becoming bankable process that require capital for things such as; establishing a low 5 bank rating, paying for an entity, having a physical business location, optimizing web presence, obtaining business credit lines, and many more. Without access to capital it is very unlikely you will become bankable.

• • Step Two – Current Status Audit
    Once it is established that you have adequate access to capital, the next step is to complete an audit of your current status. This will include checking on your entity for its good standing, is the foreign corporation filing done, are prior taxes paid, is the legal name free of any trademark infringement, is your UCC file clear, what is in any existing business credit reports and a few more mission critical items.

• • Step Three – Finding The Right Bank
    Doing business with a local or regional bank that is small business lending friendly is a critical part of becoming bankable. With a national “mega” bank you will always be just a number. When you do business with a local or regional bank that has a lending portfolio which is heavily weighted with small business loans you will be valued. Those banks want to provide business loans, they want all your personal and business accounts, they want to provide their merchant processing and they report to the small business financial exchange which is critical to the goal of building a 160+ business FICO score and to becoming bankable.

• • Step Four – Completing Lender Compliance
    This step is simply turning all your RED Xs to GREEN Checks. It is not very complicated and can normally be completed within a week or two. Having any one of these items left undone may cause any specific lender’s algorithm to decline you so it is important that they all be completed.

• • Step Five – The Owner’s Credit
    Due to the fact that thirty-five percent (35%) of the business FICO score is made up of all the owners who have at least a twenty percent (20%) share in the business. This makes it vital that all those owners have at least a 600 personal FICO 8 score. The good news is that the process to become bankable takes a minimum of four (4) months which allows time to clean up and optimize the personal credit of those owners who need it. The first place the live coach will begin here is to integrate your personal credit reports into the Success System and then run a “Funding Range Report” that will detail exactly what needs to be addressed in order to optimize your credit the way business lenders want to see it.

• • Step Six – Web Presence Score
    In this age of available “micro-information” lenders are looking for more ways they can better determine the risk of a business default. Web Presence is now being increasingly used in those approval algorithms. The logic is that if a business cannot be found on Google, does not have a Google Business Profile, has two Stars, has an “F” Better Business Rating, does not “NAP” validate or has a total Web Presence Score of below 400 then it likelihood to fail is great and therefore it is highly likely to default on the loan.

• • Step Seven – Obtaining Business Credit
    While it is true that you need twelve (12) to Fifteen (15) total reporting business credit tradelines, it is also true that those tradelines must be for products and services you will use every month and those tradelines need to be of fairly substantial amounts. Having all $300 and $500 tradelines is not going to get to the goal of becoming bankable. By completing Steps One thru Six above first before seeking to obtain business credit reporting tradelines makes it far more likely you will be approved for much larger reporting amounts.

• • Step Eight – Building Credit Scores
    A key factor in building business credit scores is using them every month and paying them early. Unlike personal credit, business credit tradelines only report when they are used. Therefore, if you do not use a tradeline for a few months you will then create a reporting gap for those months. With personal credit reporting you have a thirty (30) day safety net where you can pay your debts late and not get reported as late. Business credit reports to the day with no safety net. Pay a debt one day late and get reported as one day late. On the other hand, business credit provides a score benefit for paying early. Pay ten (10) days early and get a score boost for paying early.

• • Step Nine – Low 5 Bank Rating
    At least twenty percent (20%) of your business FICO score will be the Bank Rating. Building and maintaining at least a “Low 5” rating is critical to showing the ability to debt service the potential loan approval. Building a Bank Rating takes a minimum of three (3) statement cycles and cannot be completed faster. Other factors in the banking relationship are things such as NSFs and what individuals or other entities have access to the business bank account. 

• • Step Ten – 160+ Business FICO
    Currently there are over ten thousand (10,000) business lenders that have moved solely to business FICO scoring in their underwriting algorithms. These are banks, credit unions, large fintech lenders, large leasing companies, the SBA, the GSA and more. This means you must develop and maintain business FICO scores of at least 160 in order to not immediately be declined. A 160+ business FICO score does not guarantee approval as most lenders will also look at other factors, but with bankable and SBA lending a below 160 score will most likely result in a decline.

• • Step Eleven – Months 5 thru 8 Monitoring
    In months one thru four the live coach will work at your pace to complete all the steps listed above. You are given step-by-step tasks to complete and access to set appointments to move on to the next set of tasks. The goal of becoming bankable can be reached within four months with that process not being able to be completed any faster. Of course if you take longer to complete the tasks then becoming bankable also takes longer. And if you never complete the tasks then your goal of becoming bankable gets highly unlikely to be achieved.
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  • Step Twelve – Obtaining Bankable Funding
    Of course the end goal is to obtain larger funding amounts that are less expensive and that have much more favorable repayment terms. Once you have completed Steps One thru Ten above of the becoming bankable process, the live coach will be ready to send you back over to you to begin the process of applying for that larger bank line of credit or that much larger SBA loan

• Number of trade experiences
• Public Record Frequency & Dollar Amount
• Outstanding Balances
• Demographics such as years on file, Standard Industrial Classification Codes and Business Size
• Payment Habits
• Credit Utilization
• Trends Over Time