Individuals are more aware of why they should have a stellar credit profile.
They know that excellent credit habits lead to a fantastic credit score. A robust credit profile will provide ample opportunities to access different forms of credit at better interest rates.
In essence, a strong credit profile makes a tremendous difference for consumers, but it will have an amplified effect on businesses. Moreover, a well-built credit profile will matter even more for businesses because most companies plan on surviving and thriving.
Most business owners step into business because they see opportunities for growth and see that they can leverage their skills and knowledge to increase their investment on their time. One critical component that a business owner or manager can use to its advantage is financial leverage.
Through financial leverage, a business can ensure a steady foundation to meet business needs while also thinking about business expansion.
But how should a company focus on building business credit? What is the best way to do so at this current time? Business owners have had to try and figure it out for themselves in the past, but now, it is possible to do so with an effective program by a respected firm.
Here is what you need to know about CreditStrong and its business credit program.
Why Should a Business Focus on Building Credit?
The most critical point to understand before embarking on a business credit program is why business credit is essential and beneficial.
Business credit is essential because it gives your business opportunities to access credit for various business needs. Whether you are looking to make payments to suppliers or expand your business, business credit is a part of meeting your objectives.
Great credit enables you to make business decisions and move faster because you do not have to figure out how to finance that specific business decision.
If you are looking to sustain your business and grow it in a more accelerated fashion, it will be beneficial to have business credit.
Remember that solid business credit enables lenders to trust that you are fiscally responsible. This level of trust translates to potentially more significant credit lines, lower interest rates, and better credit facilities.
At the same time, it is helpful to remember that business credit helps you mitigate personal risk. Your business credit profile is treated as separate from your personal credit profile when you set it up correctly. This segregation gives you more peace of mind as you make sound business decisions.
The CreditStrong For Business Program
The first question on your mind might be, how does the CreditStrong for Business Program work? First, remember that CreditStrong accounts are a combination of a secured consumer installment loan and a savings account. When you enroll into such an account, you establish a credit profile and grow your savings.
When you enroll in the business credit builder account for your business, you start to build credit by making regular payments. The company reports these payments to major business credit bureaus on behalf of your firm’s Employer Identification Number (EIN).
These regular reports establish credit and trust, boosting your organization’s credit profile.
The firm offers several options to get started.
- Build credit as cost-effectively as possible (Biz $2,500)
- Build credit & savings simultaneously (Biz $5,000)
- Build a large amount of credit (Biz $10,000)
Each product offering comes with options.
Business owners can choose to have no interest with a more significant fee to open an account or pay interest with a smaller fee to open an account.
No Interest Option
Most businesses choose to go with the no-interest option because the business pays one bulk payment and then contributes to their savings with regular monthly payments.
The Interest Option
The interest option is appealing to businesses who have fewer resources at the present moment.
Their payments are split between the interest and the principal. The principal portion is returned at the end of the term of twenty five months.
How Do You Get Started?
Check if you are eligible for the product offering.
Your business is eligible for the product offering if it is an LLC, S-Corporation, C-Corporation, or General partnership. CreditStrong will verify your identity and your business before proceeding. It is necessary to have an EIN to enroll in the business credit-building program and to have reports on behalf of your firm’s EIN.
CreditStrong will ask you about your objectives
- If you want to establish and build a business credit profile for your company.
- Apply for a business loan or financing
- Apply for a credit card for your company
If you want to do the first one, you can proceed. However, if you want to do the other activities, you will have to wait.
CreditStrong will want to know if you own at least 25% of your business, then it will ask if others own 25% or more of your business.
It will want to know if your business has been registered with the Secretary of State for more than 3 months.
The firm will want to know if you are headquartered in the United States and if you have a physical address in the United States.
CreditStrong will also check if your business is involved with agriculture processes and will qualify you after you answer these questions.
Is the Program Worthwhile?
Yes, the program is worthwhile as you get to establish credit and prepare your business for more growth. CreditStrong offers two options that enable you to choose what is best for you and your business. It provides flexibility and transparency in how it operates, who it partners with, and seeks to answer common questions upfront.
If you have further questions or concerns, you can reach out to CreditStrong today.