How to use business credit to purchase income properties.
The last thing you want when building your business is to be personally liable for acquired debt in the event of a down market. Many investors may not be aware of the significant differences of building business credit using personal information such as a Social Security Number versus building business credit without using personal information. Our guest, Ty Crandall is the CEO of Credit Suite, a business which builds business credit for others. He has over 16 years of experience in the finance industry and is a renowned speaker on building business credit and credit scoring.
Key Takeaways:
[2:04] What is business credit used to purchase income properties?
[3:17] Consumer credit is not designed to build a business
[5:42] If you supply your social security to a credit agency you are personally liable
[7:51] The 3 types of credit – Personal, business and bank
[9:43] Using credit to get big by using business credit
[11:23] There are a few basic steps to getting business credit
[12:54] Rent a virtual physical business address
[14:03] Build credibility via websites, phone and address
[15:40] Secure business credit cards with this method
[17:04] Vendor accounts will give you tradelines, credit profile and credit scores
[18:15] Find trade vendors who report to business credit agencies
[19:12] It is still necessary to build credit with a vendor account
[20:45] Every major retailer will give you business credit once you have tradelines established
[23:25] Ty owned a mortgage company during its heyday & the crisis
[25:54] The key to business credit is anonymity between personal and business accounts
[26:39] Business credit reporting agencies most people don’t know about
[28:37] If you follow each step you are able to build business credit
[30:18] Get a step by step guide to building business credit from Ty’s company
[30:56] Business Finance Suite, VIP Partner Package is $3500 but for AIPIS listeners, it’s $2500
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“If you give your social security number to a vendor they will use your personal credit report.”