• Home
  • Start Here
  • What We Offer
    • Products
    • Services
    • Free Guide
  • Tutorials
    • How to Create a Business Credit “Entity”
    • Dun and Bradstreet / How to get a DUNS Number
    • How to Establish Your First 5 Trade Lines of Credit
  • About Us
  • Contact
  • Sign Up

  • Ask Joe Any Question!
  • Business Credit Cards
  • Business Line of Credit
  • Topics

A Complete Torpago Business Credit Card Review

By Joe

Torpago Business Credit Card

Torpago is a newer player in the corporate credit card game. And, they’re starting to pick up some traction in the business credit world. So, we’ve decided to examine their corporate credit card offer under a microscope and share our findings so that you can decide if this is the right option for you. 

Here’s what we’re going to cover: 

  • What is the Torpago Business Credit Card?
    • Who Owns Torpago?
    • Torpago Business Credit Card Benefits
    • Torpago Expense Management Features
    • Torpago Customer Service
    • How to Qualify for a Torpago Corporate Card
    • Does Torpago Report to Business Credit Bureaus?
  • Competitor Overview: Torpago vs Divvy
  • Final Thoughts


Now, let’s get to it! 

What is the Torpago Business Credit Card?

For those who haven’t heard of it, the Torpago Business Credit Card is a corporate credit card and expense management platform. Corporate credit cards like this are designed for companies with multiple employees to enable staff to use a line of credit on authorized spending. 

Torpago LinkedIn

When I first landed on Torpago’s website, it put me in mind of Divvy — both have a corporate credit line, expense management, and virtual cards among other shared features. You’ll see a side-by-side comparison of the two offers before we wrap up. 

Who Owns Torpago? 

Torpago was founded by Brent Jackson in October 2018. Before launching this company, Jackson worked as the Operations Manager at Accrualify for a year and as a Senior Consultant at Deloitte for nearly half a decade. Jackson has a strong background in the business and finance industry. 

Torpago Business Credit Card Benefits

In addition to 1% cash back on all spending, Torpago partners with other brands to deliver savings to their cardholders. So, if you use Quickbooks, Carta, Plastiq, or Doordash, and pay for these services with a Torpago card, you can get added discounts from 2.25% up to 40%. 

The company will likely continue to partner with more brands, so users will be able to access more markdowns on other future services (though, we’re not certain what those will be).  

As mentioned above, Torpago gives cardholders both physical and virtual cards. Physical cards are Visa credit cards that can be assigned to multiple staff members for each corporate account. Virtual cards are digital credit cards that can be assigned instantly without the need to wait for a physical card to arrive in the mail. And, both physical and virtual cards can be assigned to an unlimited number of staff members (as long as the credit limit is not exceeded). 

Automated expense tracking is another highlight that should get account holders excited. Each time a Torpago card is ran, data is sorted, synced, and accounted for. So, ideally, manual expense reports are eliminated.

Since the company is new, you can probably expect to see more future benefits. 

Torpago Expense Management Features 

One of the highlights of Torpago’s expense management platform is that it integrates with four other financial management platforms. 

  • Quickbooks Online
  • Oracle Netsuite
  • Financial Force 
  • Acumatica

So far and to my knowledge, no other corporate credit line and expense management platform has this many integrations (aside from maybe Stripe). 

Torpago Customer Service 

I did call the Torpago customer service number to ask if they have plans to add Quickbooks desktop to their integrations list. On that note, the Torpago phone number was a bit tricky to track down. If you are looking for it, they can be reached at 1 (650) 623-5429. 

I was disconnected the first time I tried calling in, but only spent a few seconds on the phone. The second time I called, I was told that I was the next caller in line. There was an option to leave a voicemail, which I didn’t take advantage of. 

After about 12 minutes of holding, I opted to reach out via the instant messaging option on the Torpago website. The reply time was advertised to be “under 6 hours.” I left my email address in the chat box (1:21 pm) and went back to what I was doing. 

I only ended up waiting 20-30 minutes for the first reply, but I still had more questions — I should have asked everything in one swoop. The user answering my questions was named Brent (I assume it was the founder himself, which leads me to believe the company is still very small). 

By the next morning around 10:30 am, all of my questions had been answered.

How to Qualify for a Torpago Corporate Card

If you are ready to try to obtain a Torpago corporate credit account, first look over the qualification terms. First of all, only US registered companies (sole proprietors, LLPs. LLCs, S-Corps, or C-Corps) can apply. So, if your company isn’t organized, you won’t be able to get a credit line. 

Next, you need an EIN and business checking account. Your account will be linked to the Torpago platform to verify businesss income. At this point, Torpago wants to see your monthly business income, but they do not publicly state the amount needed to qualify. My assumption is the higher the better… I wouldn’t apply without at least $10K in documented monthly revenue. 

Finally, you must not participate in prohibited activities. 

  • Sale of Schedule-I or Schedule II-V controlled substances without a pharmaceutical license
  • Production, sale, or distribution of marijuana, guns, ammunition, or other weapons
  • Gambling, betting, lottery, sweepstakes, or games of chance
  • MLM, cryptocurrency, counterfeit products, escort services
  • Professional services including law and consulting

See the full explanation in the above link if you aren’t sure or your business tends to fall into a gray area. Torpago seems to be designed for tech startups, but many other businesses can still qualify for an account. 

Does Torpago Report to Business Credit Bureaus? 

Most of my students and clients want to know if Torpago reports to business credit bureaus like Dun & Bradstreet. The reason this is important is because when on-time payments are reported to credit bureaus, it has a positive effect on a company’s business credit score.  

According to Torpago, on-time payments are reported to business credit bureaus. This is good news for anyone looking to build their business credit score. 

Recommended: This is How to Build Business Credit Fast [Step-by-Step Guide]

Competitor Overview: Torpago vs Divvy

Both Torpago and Divvy are free corporate lines of credit that require no personal guarantee, a rare offer. And, while they share these commonalities, they aren’t one in the same. Below are the key differences between the two offers. 

Torpago vs Divvy

If you’re interested in one of these credit lines because of the automated expense management, you might look at available integrations. For now, Torpago is the clear winner on this front if you use either Financial Force or Acumatica. However, Divvy currently offers the best rewards by a long shot. 

Learn about corporate card offers from Ramp, Amazon, Brex, Stripe, and Divvy. 

Final Thoughts

While Divvy has a similar offer with higher rewards, a more established partner base, and a more robust customer service team, Torpago is still a new player and has plenty of time to catch up. While I might not recommend applying for this credit line above other contemporary corporate offers, I wouldn’t rule them out as a legit and convenient option for business cash flow management.If you want to learn how to obtain $100K in business credit in 30 days, join the Business Credit Workshop today. 

A Complete Capital on Tap Review: Is This Business Credit Card Any Good?

By Joe

Capital on Tap

Since March 2021, when the UK-based company launched their US business credit card, Capital on Tap has been a hot topic for business owners looking to obtain funding. They’re offering business credit lines up to $50K with cashback on all purchases. Sounds enticing, right? But, should you hop on this train or explore other options. 

We’ve done all of the research so that you don’t have to. Here’s what’s in store:

  • What is a Capital on Tap Business Credit Card?
    • Capital on Tap Card Features & Benefits
      • Regular Rewards vs Founder Rewards
    • Does Capital on Tap Require a Personal Guarantee?
    • Who Owns Capital on Tap?
    • Capital on Tap Complaints
  • Capital on Tap Competitor Overview
  • Conclusion: Is Capital on Tap Any Good?

Now, learn everything you need to know about the Capital on Tap business credit card so you can decide if it’s right for you. 

What is a Capital on Tap Business Credit Card? 

A Capital on Tap business credit card is a line of credit geared for small businesses. In the US, They offer lines of credit from $5K to $50K and up to 2% unlimited cashback on all spending. They boast that you can apply for a line of credit in as little as two minutes and get approved within 48 hours. 

Capital on Tap login

Capital on Tap Card Features & Benefits 

Before you think about applying, why would you want to? Capital on Tap has features and benefits that, when compared to other offers, will help you make a decision about whether or not this is the right card for you. 

  • Unlimited Cashback – 1-2% cashback on all spending can be redeemed instantly to help repay your card balance
  • Bonus Cashback Intro Offer – $50 to $199 cash back when you spend $5K to $15K in the first three months
  • Competitive Credit Limits – Credit lines from $1K to $50K
  • Fee-Free – No foreign transaction fees or ATM charges 
  • Employee Cards – Up to 20 supplementary cards for employee spending
  • Spend Management – Budgeting tools to monitor employee spending 
  • No Annual Fee – Restrictions apply

In addition, the card advertises, “no interest if you pay your card in full each month.” But, this isn’t super special. If you pay a credit card balance right away, you can usually avoid interest anyway. Actual interest for Capital on Tap cards ranges from 9.99% to 34.99% APR. 

*Furthermore, while there is no initial fee for ATM use, your interest rate may increase when you pull cash from your balance at an ATM. 

Regular Rewards vs Founder Rewards

Capital on Tap USA

In a nutshell, if you qualify for Founder Rewards through Capital on Tap, you’ll reap higher unlimited cashback and a more generous introductory offer. Here, see a full breakdown.

Regular Rewards vs Founder Rewards

One great aspect of the offer is that you can eventually upgrade from Regular Rewards to Founder Rewards. Account reviews happen regularly and can lead to higher credit limits and decreased interest rates. 

Does Capital on Tap Require a Personal Guarantee? 

Yes, Capital on Tap requires a personal guarantee and will require that you (or a guarantor) submit your SSN, along with your business EIN, when you apply. This means that business debts acquired via Capital on Tap will be subject to personal collection if they fall into delinquency. 

However, the inquiry is a “soft pull,” which means it won’t affect your credit score. So, if you do apply, you aren’t taking a risk with your scores. 

Not all business credit cards require a personal guarantee. However cards that do not require a personal guarantee are rare and typically come with higher business income stipulations. Recommended: Here’s How to [Actually] Get Business Credit With Just an EIN

Who Owns Capital on Tap?

While the name sounds like an offer that could be akin to Capital One, the two companies are unrelated. Capital on Tap was co-founded in 2012 by David Luck and George Karibian. Luck, Capital on Tap’s current CEO, has a history in business management, VC, and private equity funding. Karibrian is a serial entrepreneur with PaymentSense, Judo Payments, and Euroffice currently under his umbrella of businesses. 

Capital on Tap Complaints

Capital on Tap Complaints

All business funding options come with their fair share of complaints. So, what do the people say is wrong with Capital on Tap’s offer? Only 3% of Trustpilot reviews have had a bad experience. Here’s a summary of what unsatisfied cardholders and others don’t like. 

  • High interest rates
  • Poor customer service
  • Excessive junk mail

Note that most complaints mention the company’s advertising in one way or another — most do not mention the actual product. Keep in mind that financial “pre-approvals” are rarely a guarantee that you will qualify for a funding offer. 

Capital on Tap Competitor Overview

Capital on tap is popularly compared to Amex and Capital One’s business credit card offers. So, let’s take a look at how they stack up side-by-side. For this case, we’ll compare the Capital on Tap Founder Rewards Card with Amex Blue Business Cash and Capital One Spark Business Cash specifically.

Capital on Tap vs Amex vs Capital One

All of the cards come with their own set of pros and cons. For example, a Capital on Tap Founder Rewards Card comes with the lowest possible interest rates (9.99%) on regular spending… and also comes with the highest (up to 34.99%). Spark Business Cash and Amex Blue Business offer the best introductory offers (Up to $500 with qualified spending). And, neither the Founder Rewards card nor the Amex Blue Business card will charge an annual fee. 

You’ll need to decide what’s most important to you when you make a credit card application decision. 

Conclusion: Is Capital on Tap Any Good? 

From what I can tell, the Capital on Tap offer stacks up well against the competition and offers some decent benefits for a business in the right position. As you know, it’s not your only option. While it’s not my favorite business credit card, it’s definitely not the worst. If you’d like to learn how to obtain $100K in business credit in 30 days, join Business Credit Workshop.

Ramp Credit Card Review: Is This the Corporate Card for Your Business?

By Joe

Ramp Card Review

If you’re on the hunt for the best funding and cash flow options for your business, traditional banks may not be your best bet right now. Lately, we’ve been writing about some of the most popular, alternative corporate card offers. When researching the top credit cards for startups, Ramp (a fairly new player in the game) ended up near the top of the list. While we weren’t surprised, that’s when we realized we should take a closer look and share our findings. 

This is what we’ll cover here: 

  • What is a Ramp Card?
  • How Can Ramp Help You Save?
    • Unlimited Staff Cards With Smart Spending Limits
    • Zero Fees & 1.5% Cash Back on Spending
    • $175K in Ramp Partner Rewards
  • Will You Qualify for a Ramp Corporate Credit Card?
  • How Does the Ramp Card Stack Up Next to Competitors?
  • Conclusion

Read on to learn more. 

What is a Ramp Card? 

A Ramp card is a corporate credit card designed to help businesses save money. By …

Ramp, aka Ramp Financials or Ramp Business Corporation was co-founded in 2019 by Eric Glyman, Gene Lee, and Karim Atiyeh. All three co-founders main current C-level management positions at the company.  

Ramp credit card Crunchbase

While the company hasn’t been around as long as some of its competitors, the leadership team has notable experience in the financial industry. CEO, Eric Glyman, and CTO, Karim Atiyeh, also co-founded Paribus, where current CPO, Gene Lee, was a software engineer. Paribus was acquired by Capital One, where the trio stayed on staff until they launched Ramp. 

How Can Ramp Help You Save? 

In my opinion, Ramp rewards rank up there with the Brex card and other corporate credit cards. Here’s a summary of what you get if you go with Ramp for your business. 

Ramp Rewards

Unlimited Staff Cards With Smart Spending Limits

Do you want to enable multiple staff members to use your credit, but not sure how you can limit spending appropriately? If so, Ramp has you covered. If you qualify for the corporate credit card offer, you can take advantage of as many staff cards as you need. Plus, you can set spending limits on each card. 

Not only can you set limits, but the card’s algorithm identifies opportunities for savings. For example, you may be paying for duplicate subscriptions, missing cash back, or have a lower pricing plan available through one of your software vendors — Ramp will analyze spending and alert you to opportunities like this, which is a unique and invaluable perk. 

Zero Fees & 1.5% Cash Back on Spending

First, let’s look at the fees you don’t have to pay: 

  • Foreign transaction fees.
  • Late fees.
  • Interest fees.
  • Annual fees.
  • Costs per card. 

Take a look at your current credit cards and figure up how much you’re paying for the above fees and think about whether it’s time to make the switch. Other coporate credit cards like Brex and Divvy offer zero fees; they also offer cash back. So, it’s smart to weigh your options.

Now, in the case of Ramp, the cash back is 1.5% on everything. So, if you spend $500K per year, you’ll earn $7.5K in cash back alone. While this may not sound as impressive as 7X points on certain spending like the competition, Ramp’s offer opens your company to earn on any type of spending instead of specific costs like restaurants or software. 

$175K in Ramp Partner Rewards 

If you utilize offers from any of Ramp’s partners, you need to consider how much you can save by using their card to pay for services and subscriptions. Cardholders who leverage all offers can save up to $175K. While that’s not necessarily likely, you can save hundreds and even thousands with specific vendors. 

For example, if you use your Ramp card to pay for AWS, you can get preferred access to credits. You’ll also be able to take advantage of $150 in Google Ads, 25% off your first year of Pulley equity management, and a 2.5% discount on Plastiq bill pay. 

Ramp Partner Rewards

Some more impressive offers are $15K and $30K credits with Triplebyte software engineering and Datadog cloud monitoring respectively. If you’re using either of these services, that alone might make choosing a Ramp card more than worthwhile. 

Will You Qualify for a Ramp Corporate Credit Card? 

Ramp card requirements aren’t super transparent. But, we do know that there are no credit checks or founder guarantees. So, you 

Ramp underwriting seems to be based on the following factors: 

  • How many employees your business has
  • Your company’s average monthly card spending 
  • Whether or not you have over $250K in your business account

I can almost guarantee that if you do not have at least $250K in your business account at this time, then you won’t qualify for the card. In this case, another card might be a better fit. 

Recommended Reading: 

  • What are the Best Business Credit Cards for Startups?
  • 3 Best Credit Unions for Small Business Banking 
  • The Best Business Credit Cards

How Does the Ramp Card Stack Up Next to Competitors?

Before you make a decision on whether or not to apply, it’s a good idea to take a peek at Ramp side-by-side with its top competitors. So, here’s what we know. 

Ramp vs Brex vs Stripe vs Divvy

Ramp vs Brex vs Stripe vs Divvy

Conclusion

If you can qualify for a Ramp card, the only reason you might not want to would be to go with a competing corporate card. Otherwise, this is a fantastic offer. Now, if you can’t yet qualify, but you want to learn how to get up to $100K in business credit, you’re probably a good candidate for our credit courses and coaching. Join Business Credit Workshop today to start learning.

Should You Use a Real Estate Investor Line of Credit to Buy or Renovate Property?

By Joe

Real Estate Investor Line of Credit

One of the best ways to build net worth is through investing in real estate. Whether you buy and flip or buy and hold, real property can generate tremendous profits for individuals and businesses. The average ROI on real estate investment is in the 12-16% range, which is quite a bit higher than the stock market.

Once you get serious about your real estate investment strategy, you need to explore all of your financing options. Here, I want to talk specifically about real estate investor lines of credit. 

Here’s what we’ll cover: 

  • What is a Real Estate Investor Line of Credit?
    • Credit Cards vs Loans vs Lines of Credit vs Hard Money
  • Frequently Asked Questions
  • Conclusion

What is a Real Estate Investor Line of Credit? 

A real estate investor line of credit is a revolving credit line dedicated to the purchase, repair, and renovation of investment property. This type of financing is extended based on equity in a real estate investment and can be used much like a credit card, which means that an investor can tap into the funds multiple times. 

These credit lines are extended from banks and credit unions to individuals and businesses for the purpose of funding new investments or rehabilitating or updating an existing investment. The process is fairly straightforward and similar to a HELOC loan on an owner-occupied home. 

And, here’s how these dedicated credit lines stack up against some of the most common real estate (RE) investment financing options. 

Credit Cards vs Loans vs Lines of Credit vs Hard Money

Let’s quickly clarify the differences between credit cards, loans, lines of credit, and hard money as they can apply to real estate investing. 

First, a credit card is a revolving line of credit that can be used for various purposes. Visa, Mastercard, American Expresss, and Discover cards can be used universally to pay for almost anything, as long as the seller accepts these payment forms. While most home sales channels don’t accept credit cards, you can convert credit cards into cash to pay for investments. Credit card interest is around 15% on average. 

Next, a loan is usually extended with set terms. This means that you will be given a certain amount of cash to be used at one time then paid back by a given date. In Real Estate terms, a loan typically refers to a mortgage and can be taken in the full amount of the property, less any down payment. Typical repayment terms are 15, 20, and 30 years. Right now, the average interest rate on a mortgage is between 2.3 to 2.9%.

Then, lines of credit can be used like credit cards with revolving terms, yet typically have interest rates akin to mortgages. In a sense, it may seem like they provide the best of both worlds. However, lines of credit typically can’t be used to fund an entire home purchase and instead provide a short term solution to an immediate real estate investment need. 

Finally, hard money loans are usually reserved for investors with less than ideal credit as a short-term funding option since the average interest rates are between 11 and 18%. A hard money loan is usually extended to a buyer by a private party like an investor, business, or the seller of the property. 

Frequently Asked Questions

Here are answers to some of the most common questions I hear when discussing real estate investing with both BCW members and colleagues. 

Can you get a line of credit on an investment property?

Yes. As long as a property has equity in it, whether it is used as your primary residence or place of business or solely as an investment, it can be leveraged to obtain a line of credit. 

How do real estate investors get financing?

Real estate investors fund their home purchases and renovations through a variety of financing options including loans, credit cards, lines of credit, and other less common channels. 

What is an investment line of credit?

An investment line of credit is a short-term financing solution that provides the borrower with a revolving line of credit on either a property that is not occupied by the owner or another investment. 

Can you take out a line of credit on a rental property?

Yes. You can take out a home equity line of credit (HELOC) for a property that you rent the same way you can a home that you occupy. 

Can you get a 30-year mortgage on an investment property?

Yes. 30-year mortgages are available for investment properties and owner-occupied properties. 

How can I invest in real estate with no money and bad credit?

The most common way that people with bad credit can get started with real estate investing is through hard money lenders. These situations are usually short-term (until the buyer can improve their credit) and used as a last resort. 

Can I use a business line of credit to buy a house?

If you have a large enough business line of credit, you can use it to buy a house, but you should not treat it as a 30-year mortgage because this would incur much higher costs than necessary. Learn more about the BRRR method of real estate investing. 

Is it smart to use home equity to buy an investment property?

If an investment can generate more income for you, it can often be a smart move to use your home equity to buy another property. 

Conclusion

If you’re looking for a line of credit that you can tap into repeatedly on your real estate journey, you will use the funds solely for real estate, and you already have equity in property along with a good credit score, a real estate investor line of credit may help you make your next move to secure your future. I find that it’s best to diversify your funding options. 

If you’re interested, here I explain how to use business credit to buy real estate.  And, if you want to get up to $100K in business credit in 30 days, join Business Credit Workshop today.

Here’s How to [Actually] Get Business Credit With Just an EIN +More Options

By Joe

Business Credit With Just EIN

Lately, I’ve found quite a bit of online content that pertains to getting business credit with just your EIN, and I’ve seen some pretty good information. But, I haven’t found a thorough answer to the core question, which is, “How can you get business credit using your EIN and not your SSN?”

First of all, if you’re not up-to-date with the lingo, what you’re essentially looking for here is business credit without a “personal guarantee.” Luckily, there are lenders that do not require a personal guarantee for business financing, but most of the good options are not common nor easy to find. So, let’s explore everything you need to know. 

Here’s what’s in store: 

  • In Business Credit, What is a Personal Guarantee?
  • What if You Aren’t Eligible for an SSN?
  • What if You Have Bad Personal Credit?
  • How Can You Use Your EIN Instead of Your SSN to Get Business Credit and Loans?
  • Lenders That Offer Financing With No Personal Guarantee
    • Business Credit Cards
    • Corporate Credit Cards
    • Business Loans
    • Alternative Financing [Proceed With Caution]
  • Final Thoughts

In Business Credit, What is a Personal Guarantee? 

When a business takes out an unsecured loan or line of credit, most lenders want assurance that the funds will be paid back. A personal guarantee is a promise that, should the business fail to repay, the individual will be responsible for the debt. This responsibility typically falls on a company executive or business owner.  

With a business loan or line of credit for which you are the personal guarantor, the lender has a legal right to your individual assets if your business does not repay the debt as agreed. In order to legally collect the funds in this case, the lender needs your social security number (SSN). 

Your SSN often serves a second purpose, which is to see if you have shown responsible credit behavior with your personal finances. Really, lenders just want to make sure you are responsible even when your business is obviously financially healthy.   

💡 Does Your EIN Have a Credit Score? Your business has it’s own public credit score, separate from your private personal FICO score. To learn more about the oldest and most-used business credit bureau, see Everything You Need to Know About a DUNS Number & Why Should You Care. 

What if You Aren’t Eligible for an SSN? 

If the reason you want a business credit card is that you don’t have a social security number — perhaps you’re a nonresident of the United States doing business here — you can take another route to bypass the SSN section of a credit card or loan application. In this case, you need to file for an Individual Taxpayer Identification Number (ITIN) through the IRS. 

Several credit lenders allow you to apply for funding using an ITIN instead of an SSN. I recently did a write-up on one of them and you can find more about it (and competitors) here: Chase Ink Business Preferred Credit Card: A Deep Dive. 

To apply for an ITIN, use IRS form W-7. Consult with a CPA licensed in the state where you do business to find out more as it applies to your situation. 

Apply for an ITIN

What if You Have Bad Personal Credit? 

Another reason you might want to apply for business credit using your EIN and not your SSN is that you have a low FICO score. If you’re in this boat, there are steps you can take to remedy the predicament. These steps will vary based on your situation. 

In all cases, the first step will be to learn about the common errors often reported by consumer credit bureaus and leverage them to your advantage. For example, you might learn how to best deal with vehicle repossessions and defaulted loans or what can be disputed in a credit file and how to do so.  

Recommended: Credit Secrets Book Review: Can You Erase Bad Credit History? 

How Can You Use Your EIN Instead of Your SSN to Get Business Credit and Loans?

If you want to get a line of credit for your EIN and withhold your SSN, as you probably guessed, you need to find a lender that does not require a personal guarantee. Then, you will need to meet the credit and income requirements of that lender. Finally, you’ll need to apply. 

Lenders That Offer Financing With No Personal Guarantee

As I’ve already said, lenders that do not require a personal guarantee are uncommon. But, they’re not impossible to find. Here’s a list of a some lenders who may not require an SSN or an ITIN to apply for a line of credit or a loan. 

Business Credit Cards 

These business credit cards are fairly easy for companies of all sizes, including freelancers and individual contractors, to qualify for and require no personal guarantee. 

  1. Sam’s Club Business Credit Card
  2. Office Depot OfficeMax Business Credit Account
  3. Shell Small Business Gas Card
  4. SuperAmerica Fleet Credit Card 

Recommended: How to Use Business Gas Cards to Build Your Business Credit

Corporate Credit Cards 

Rather than base your credit limit on your FICO score, you may be able to meet revenue requirements for one of these corporate cards with no personal guarantee. You may need an actual S or C corporation to qualify (in some cases, an LLC might suffice). 

  1. Brex Rewards Card 
  2. Stripe Corporate Card – see our full write-up here. 
  3. ScaleFactor Visa Charge Card
  4. Bremer Bank Business Card
  5. American Express Corporate Cards
  6. Capital One Corporate Cards
  7. Citibank Corporate Cards
  8. JP Morgan Chase Corporate Cards
  9. Wells Fargo Corporate Cards

Business Loans

While you may be required to share your SSN during the initial application process to ensure that you meet minimum credit requirements, these lenders have funding options that require no personal guarantee. 

  1. Kabbage
  2. Fundbox
  3. StreetShares – requires no personal guarantee for government contractors and subcontractors to Fortune 500 companies. 

Alternative Financing [Proceed With Caution]

First, when you don’t qualify for a business loan or line of credit, you can try for a personal loan or credit card instead. In fact, many companies are funded with personal capital. But, personal credit is typically more limited as far as funding amount and rewards than business credit. 

Next, if you have a friend or family member willing to extend a loan to your business, you may be able to request a private contract without using your SSN and with no personal guarantee. Most people avoid this to protect perfectly healthy relationships rather than muddy them with potentially disastrous business affairs. 

Then, depending on your type of and stage in business, you may also find VC or Angel investors willing to extend funding, which typically requires formal pitching and a detailed plan that outlines how you will use the money to increase company profits. In nearly all cases, investors also require a certain level of control over business management and a share of the revenue. So, if you want to maintain your operations as is (and keep your profits for yourself), this isn’t a great option.  

Finally — and I hesitate here — it may be worth mentioning that other options include working capital financing or merchant cash advances. In rudimentary terms, you can take out an equity loan on accounts payable.  However, I do not recommend these channels. Repayment on these types of loans is overly-expensive akin to personal payday loans. 

Final Thoughts

Business lenders that provide practical funding solutions you can apply for using only an EIN are unicorns in the financial universe. But, if you’ve made it here, you should know everything you need to find one. If you’ve tried, but still can’t seem to qualify for financing, there’s plenty you can do to transform your situation. 

And, if you know of other lenders who require no personal guarantee, I’d love to hear about them. For now, I recommend you learn how to build business credit so that you can access high-limit loans and credit cards with the best possible rates. If you want to learn how to obtain $100K in business credit in 30 days, I invite you to join Business Credit Workshop today. 

Chase Ink Business Preferred Credit Card: A Deep Dive Analysis

By Joe

Chase Ink Business Preferred Review

As a multinational investment bank and financial services provider, Chase has been a major player in the lending game for centuries. In 2000, the bank merged with JP Morgan and evolved into what it is today. 

While I usually endorse smaller community banks and credit unions for their flexible business loan and credit card underwriting requirements, today I want to share everything I know about the Chase Ink Business Preferred card — it’s definitely worth learning more about. 

Here’s what we’ll cover: 

  • Chase Ink Business Credit Cards Overview
    • How to Upgrade an Unlimited or Cash Card to a Preferred Card
  • Chase Ink Business Preferred Under the Microscope
    • Does Chase Report to D&B?
    • Chase Ink Business Preferred Card Benefits
      • Telephone Damage & Theft Protection
      • Free Employee Cards
      • Auto Rental Collision Damage Waiver
      • Trip Cancellation/Interruption Insurance
      • Purchase Protection and Extended Warranties
      • Transferable Points & Rewards That Never Expire
    • Chase Ink Business Preferred Preferred Card Downsides
    • How to Apply for a Chase Ink Preferred Card
  • Chase Ink Business Preferred Competitor Overview
  • Final Thoughts

Chase Ink Business Credit Cards Overview

Chase Ink Business Preferred is one of three Ink Business Visa credit cards offered through Chase, each of which have their own set of rewards. 

  1. Chase Ink Business Unlimited – Earn unlimited 1.5% cash back and up to $750 bonus cash back. 
  2. Chase Ink Business Cash – Earn up to 5% cash back in select categories and up to $750 bonus cash back. 
  3. Chase Ink Business Preferred – Earn up to 100,000 bonus points equal to $1,000 cash back or $1,250 in travel rewards. 

Chase also offers travel rewards cards for Southwest and a United travel reward card. For now, I want to share a quick side-by-side comparison of the three Ink cards before diving deeper into the Business Preferred card.

Chase Ink Business Credit Cards

With Chase Ink Business Preferred, 1 point is equal to roughly 1 cent cash back or 1.25 cents worth of travel rewards. For businesses with higher spending, because of the higher reward caps, Preferred is the Chase Ink card to strive for. 

How to Upgrade an Unlimited or Cash Card to a Preferred Card

When you meet the qualifications for a Chase Ink Preferred card, you may be able to upgrade an existing Unlimited or Cash card. Your Unlimited or Cash card must have been open and in good standing for at least a year and you will need to pay the $95 annual fee. 

Furthermore, when you make a product change, you won’t be eligible for the sign on bonus for new Preferred cardholders. 

To upgrade, simply call Chase using the phone number on the back of your card and ask for an account review or contact the company via the secure messaging platform inside your account dashboard. 

Chase Ink Business Preferred Under the Microscope

Now, let’s take a closer look at the pros and cons of the Chase Ink Business Preferred Card. We’ll start with credit reporting, since that’s the lifeblood of what we do here at Business Credit Workshop. Then, we’ll explore more about the benefits of using a Chase Ink Preferred card and when it might be better to try other channels for business cash flow. 

Does Chase Report On-Time Business Credit Card Payments to Dun & Bradstreet? 

Dun & Bradstreet (D&B) is the monarch of business credit reporting agencies. While there are rumors floating around online credit forums that Chase doesn’t report to to D&B, this simply isn’t true. 

Does Chase Ink Report to D&B?

The fact is that Nav — a highly reliable source — reached out to the major banks late last year to see which ones report payment activity to business credit bureaus. They found that Chase and Citi are the only big banks in the United States that report business financing payment activity to all four of the top bureaus (D&B, Equifax, Experian, and SBFE). 

Which Banks Report to D&B?
[Image Source: Nav]

So, on-time payments and responsible credit use on a Chase Ink Business Preferred card can help you improve or maintain your business’ PAYDEX score. 

Recommended: Everything You Need to Know About a DUNS Number

Chase Ink Business Preferred Card Benefits

Some of the perks of using a Chase Ink Preferred card are summarized above. Now, let’s explore them further.  

Telephone Damage and Theft Protection 

If you pay your business phone bill with a Preferred card, you will be eligible for up to $600 per claim on damage and theft for you and your employees. This is a standout feature not offered by competitors’ credit cards. You will be eligible for up to three such claims per year, which will have a $100 deductible. 

Free Employee Cards

Once your account is approved, you can get employee cards at no cost. For each card, set spending limits to control your budget. All rewards will pool into the master account. This means that employee spending on a company Chase Ink Preferred card will count toward your bonuses and points. 

Auto Rental Collision Damage Waiver

When you rent a car and pay with your Business Preferred card, you don’t need to purchase insurance, because Chase automatically has  you covered with damage protection up to the actual cash value of the vehicle. This can save you quite a bit on business travel, especially when multiple employees rent cards when traveling for business. 

Trip Cancellation/Interruption Insurance

For prepaid, otherwise non-refundable travel fare, tours, and hotels, you won’t have to worry about losing your money if you need to cancel or delay a trip. When you pay for travel expenses using your Preferred card, they’re insured up to $5K per person and $10K per trip. Sickness, severe weather, and other covered reasons are covered when you need to take advantagee of this perk.  

Purchase Protection and Extended Warranties

If you buy a product with your Preferred card and it is stolen or damaged within the first four months after purchase, Chase will compensate you up to $10K per claim and $50K per account. This neans that you don’t need to insure every single item that you buy, instead, hold onto your receipts (or just keep track of transactions in your online account dashboard). 

Chase Ink Preferred Purchase Protection

Furthermore, any item that you buy with your Preferred card with a three year or less warranty, will be warrantied for an additional year. For example, if you were to purchase a computer with a two year warranty using your card, Chase would extend the warranty to three years. 

Transferable Points & Rewards That Never Expire 

As long as your account is open, you can redeem rewards points at any time. This means that you can save up points for years before you spend them. Furthermore, you can transfer your points at a 1:1 exchange with leading frequent flyer programs. 

100K Chase points are worth around $1K and 80K Chase points are worth roughly $800 when used in the Chase Ultimate Rewards program dashboard. Be sure to find out if your points will change in value when transferred since points/miles’ value can vary between programs. 

Login to your Chase Ultimate Rewards program dashboard or check with your frequent flyer program to find out for sure if your points would be transferrable — not all travel programs have a partnership with Chase. 

Chase Ink Business Preferred Preferred Card Downsides

As with most business credit cards from big banks, the Chase Ink Preferred Card does come with notable fees. Your APR on spending will range between 15.99% and 20.99%. We’ve reviewed cards from credit unions and community banks, as well as alternative modern funding sources, with interest rates below 10%, but they don’t typically offer the same level of rewards as the Preferred card. 

And, you will pay a $95 annual fee to maintain your account. This means that if you don’t plan to redeem your rewards, even if you pay your account in full every month to minimize interest payments, you could be out at the end of the year. However, an annual fee is typical of rewards cards in this tier. Amex, for example charges much higher annual fees than Chase. 

How to Apply for a Chase Ink Preferred Card

Before you apply, you must meet Chase’s requirements for this card. In addition to a 688+ FICO score (some recommend 700 to 740 and above), there are a handful of minimums you must meet. 

  • Less than 5 new credit cards opened in the past 24 months (Chase’s 5/24 rule)
  • No new Chase cards opened in the past few months 
  • Enough income/spending power to warrant a line of credit
  • A credit utilization ratio below 30%

Even if your credit is excellent and you meet all of the above requirements, there is not a guarantee you’ll be approved. But, if you can show these characteristics, your business is likely to appear less risky to the underwriters. And, you may up the odds if you have a Chase business checking account in good standing. If you’d still like to proceed, you can visit this page and sign in to apply or apply as a guest. If you’ve received an invitation to apply, visit getchaseink.com.   

Chase Ink Business Preferred Competitor Overview

The Chase Ink Business Preferred credit card, of course, has some competition in the marketplace. Amex Platinum and Capital One Spark are often considered by medium to high-earning small businesses looking for this type of rewards on spending. And, one of the alternatives might be a better fit for your situation.

So, let’s look at a summary of Chase Ink Preferred, Amex Platinum, and Capital One Spark next to one another to see the differences.

Chase Ink Preferred vs Amex Platinum vs CapitalOne Spark

In addition to what’s listed above, none of these cards have foreign tansaction fees. They provide various trip cancellation and delay insurance and reimbursement. And, they all have 

The Amex Platinum card certainly comes with the most benefits, but there’s a trade-off with the $550 annual fee, more than five times that of its competitors. If you only take advantage of the Fine Hotels & Resorts Perks,™ that cost will be covered.  

Final Thoughts

The Chase Ink Business Preferred card is acclaimed as one of the best small business credit cards, likely because of the huge sign on bonus. While you won’t get 0% APR and you will pay an annual fee, there’s still a lot of potential for savings and rewards here. If you think you business can meet the qualifications, I say go ahead and apply.

And, if you still need to learn how to build business credit and you want to learn to obtain $100K in business credit, join Business Credit Workshop today. 

This is How to Leverage Business Credit to Transform Your Life

By Joe

You’re going to come across a lot of advice about why you should or shouldn’t acquire debt financing for your business. Without getting into that debate, yes, “bad debt” can have negative results in your personal and professional life. But, when you know how to leverage it properly, business credit can completely transform your company and your lifestyle in tremendous ways. It can also bring additional revenue and cash flow.

So, if you have a good business credit score (or you’re ready to learn how to get there), you know how to turn $1 invested in your business into $2, and now you want to learn how to take your business to the next level, this guide is for you. 

Here, you’ll find the following: 

  • My Experience With Business Credit
    • Where I Was Before I Discovered Business Credit
    • The Headline That Changed My Beliefs
    • How This New Discovery Shaped My World
  • Solving the Mysteries of Business Credit
    • Why You Need Working Capital to Scale Your Business
    • Business Lines of Credit vs Angel Investing or VC
    • The Basics of Business Credit for Absolute Beginners
    • The Greatest Business Credit Obstacles You’ll Face
    • The Key to Unlock Your Business Credit Potential
  • Final Summary

My Experience With Business Credit  

Before you dive into the nitty-gritty details, I want to share my story. Learn where I was before discovering business credit. Then, find out what caused the shift in my beliefs and understanding of business finance. After that, learn how business credit can completely transform your life. 

Where I Was Before I Discovered the Power of Business Credit

Before I discovered the immense value of business credit and how to leverage it to fuel a successful real estate investment company, I was working as a technical recruiter. My job was to place high-level IT professionals and contractors that made $100 to $300 per hour with big companies like Johnson & Johnson and Merck. 

My job came with a salary, a nice office, plenty of windows, and an overall pleasant environment. Plus, I was able to earn a commission when I placed someone at a position. It took a lot of work and a few dead-end jobs to get to this point but actually, I liked my job at the time. 

At that stage in my career, I had the potential to earn more than just a base salary, which was important to me, and I liked my co-workers. I knew that if I worked harder I could make more money and I found comfort in that. 

But, one Wednesday morning around 8:30 am, I was driving to work when I looked to the side of the road and noticed a couple of guys playing golf. And, I realized that I wanted the freedom to play golf in the middle of the day. It was at this moment, I first questioned the 9 to 5 lifestyle and I started to feel like a caged bird. 

Suddenly, I didn’t want to work from 9:00 to 5:00 every day and limit myself to two weeks of paid vacation each year for the rest of my life. Instead, I wanted to spend time with my family and have the freedom to travel whenever I wanted. I was in my 20’s. And, before that moment, I didn’t believe I could have that kind of life for another 40 years when I was ready to retire. 

But, at that moment, there was a shift in my beliefs. While I didn’t yet know I could attain the dream, I decided to try anyway. I made the leap and launched a real estate investment business while working a full-time job. 

At this time, I had to use personal capital — my own personal credit cards and cash to fund my business. Personal credit cards were helpful because they allowed me to operate as if I were a larger business. And, my goal was to get the results a larger company would get, use the revenue to pay off debt, then repeat the process. So, it was working. 

However, the more personal credit you use, the worse your score ends up because your utilization is too high. So, launching the business ended up messing up my personal credit. I was still hopeful, but there were some obvious problems.

The Headline That Changed My Beliefs

During the early stages of business, I was a sponge. I was trying to learn everything I could. So, I signed up for every email list that I thought might help me create the success I wanted, even if I would only get scraps from each of them.

One day, I got an email with a hook that said something like, “26-Year-Old-Kid Gets $100K in Funding in 100 Days.” While I didn’t believe it could be true, I was still intrigued. So, I clicked the link, watched the webinar, and I paid for the course. 

After that, I bought every course and book I could find about business credit. From these sources, I pulled out all of the best parts, let go of the useless or outdated information, and used my newfound knowledge to come up with a plan for my own business.

Then, the magic happened in 2007 when I decided to launch a direct mail marketing campaign. I wanted to send letters to homeowners that might have distressed properties because I was looking to invest in real estate. And, I thought this would be a great way to get off the ground. So, I applied for a business credit card to fund the campaign. 

When I got approved for a $25K business credit card with no reporting to my personal credit profile, I was amazed. At that time, the highest limit I had on my personal credit was $15K. I used the credit card to execute a successful campaign, got my company off the ground. 

So, I got a few more business credit cards, cleared $100K, and I invested heavily in my marketing. When I saw that the model worked, I went in and doubled down. Before this, I never would have been able to afford radio ads. But, once I had credit, I was able to leverage advertising channels that delivered substantial results. As a result, I started to see a very positive return on my investment. 

How This New Discovery Shaped My World

Soon after obtaining business credit, I was able to leave my job as a technical recruiter because I was making more money in real estate. And, it didn’t matter if I had high credit utilization on my business credit cards because nobody could really see it on my personal credit report. 

Now, I am able to see success a lot quicker because I have extra funding behind me. I have opportunities that didn’t exist before. I can do more marketing which opens up more revenue. I was able to get an office, hire employees, and founded a real company within 90 days of getting business credit.

Years later as a result, I have a real estate portfolio and I can play golf whenever the heck I want. My wife and I have been able to go to the places and see the things we want — we’ve been to 16 Caribbean islands and I’ve been to some really awesome places like Japan and Thailand. So, we did cross over to the lifestyle we had dreamed about. It really was possible.

There is one more, completely accidental transformation that has happened as a result of what I learned that is even more exciting. Shortly after realizing that business credit was the key to obtaining the capital I needed, I attended a seminar. And, while I was there, someone overheard me talking about my experience and stopped me.

The stranger asked me to repeat what I had just said. And, when I had told him that we can get all this funding for our business beyond personal credit, he asked a question that would change my life forever. 

We were on a lunch break and he suggested that I come up with five tips to secure business credit to share with the audience. Then, at the end of my presentation, ask, “Does anyone want to learn more?” If they did, we would ask them to walk to the back of the room and sign up for a workshop to learn how to implement these five tips to obtain new business funding over the next 30 days. 

At the time, I despised public speaking. I had said that standing up in front of a crowd to tell my story was something I would never do. But, I had a choice and I said, “yes.”

But, I didn’t have a course to sell. 

So, I grabbed an index card, came up with five bullet points, and presented them to the crowd, my heart pounding the entire time. And, at the end of my 15-minute speech, one-third of the group stood up and walked to the back of the room to sign up for my course where we were going to delve deeper into those five bullet points. I was like a happy puppy with all of the energy and excitement around this new discovery I had to share with these people. 

I thought back to all my recent training and reading materials. Then, I took what I liked from the best parts of all of it and left out the rest. And, when I launched my business credit coaching business in the back of the room at the seminar that day, I only hoped I could bring something more valuable to the marketplace. 

7 Secrets to Obtaining Business Credit Revealed PDF

The reason Business Credit Workshop’s name is so simple is that I only had a few minutes to come up with it. Now, I’ve coached over 1,800 individuals to obtain the credit they need to take their businesses to the next level. And, this doesn’t include all of our members who have taken advantage of the backend training we offer. 

Today, I have a database of bankers. And, I talk about the trade secrets that the “gurus” didn’t want to tell people. I talk about the top 50 lenders I like to use. I share the nitty-gritty details. 

My five bullet points are now a fully-sharpened, seven-step system for obtaining business credit. Because of what I learned, my business and personal life have improved tremendously, and I’ve been able to help thousands of other business owners make life-altering transformations within their companies. 

Solving the Mysteries of Business Credit  

Now, I want to tell you how you can take what I know and apply it to get funding for your business. Get ready to learn the fundamentals and the secrets of getting the working capital you need to grow your company and increase your revenue. 

Why You Need Working Capital to Scale Your Business

I really love the way one of my past coaching clients, Brendan Purnell put it when interviewed for a case study: “Personal credit is limited and cash flow is a gamble. Make sure you have adequate capital because, in the blink of an eye, you can go belly-up if you are under-capitalized.” 

40% Businesses Struggle to Pay Operating Expenses

According to the Federal Reserve, 40% of businesses struggle with their operating expenses, which is the top financial challenge business owners face. And, if you can’t get the capital you need to operate, you can’t keep your doors open, let alone grow and thrive. 

I recently spoke with someone who had a hair salon in Oregon back in 2009. She saw an opportunity to offer a professional-quality, organic haircare line and nobody in the US was doing it yet. In the beginning, she made the hair products available exclusively to her salon clients. When the product line was a hit, she decided to put the shampoos and conditioners online to see if there was enough interest to go national. 

And, within less than a month, she got an inquiry for a $20K order. But, she didn’t have the capital to fulfill it. So, after a lot of head-scratching, she decided to refer the customer to her supplier (the only other seller she knew of). Ultimately, she liquidated the business because she felt in over her head. 

Now, when you know about business credit, you can have an entirely different outcome. Here’s an example of a similar problem with a happier ending: 

One of my original coaching clients, that I met at the first speaking event, is a man named Greg Dashkin. Greg lives in New Jersey where I live and was running a marketing business when we met. He sold t-shirts, pens, and other swag to small and large companies. And, he was making money at his business. 

But, when he would get a $20K order, he couldn’t fulfill it due to lack of capital and he would have to refer sales to his competitors. He was missing out on a lot of potential revenue and was constantly stuck. Many times, this exact problem causes potentially profitable businesses to shut down. 

So, after hearing Greg’s problem, the event host told him to talk to me. He told him that I had something that could change his business. Greg and I  started working together and he got $100K in credit pretty quickly, which solved his problem. 

And, he was one of the most appreciative entrepreneurs I’ve ever worked with. To this day, we still talk, we still work together, and he still encourages me to keep spreading the message. 

Furthermore, you don’t have to be stuck to leverage business credit for growth. Some entrepreneurs just want to scale faster. 

For example, I work with an Amazon seller named Scott. When he first came to me for coaching, he was pretty successful, earning about $30K per month. In eCommerce, the margins are about 20%. And, once you know how to sell a 10-cent hat for $5, it’s easy to scale. 

But, if you rely on cash flow to invest back into your business, growth is slow. But, after Scott realized how to obtain credit for his business, his sales jumped from $30K to $130K. When you have the capital to invest in more products, you can cross the six-figure income threshold.

Business Lines of Credit vs Angel Investing or Venture Capital

In full disclosure, I’ve never worked with Angel Investors or Venture Capitalists to fund my business. But, I did work in a business incubator office. So, I networked and had friendships with local venture capitalists (VCs) in New Jersey. And, I really like their system. 

If you’ve ever watched Shark Tank, you’ve seen how innovative entrepreneurs try to pitch their ideas to highly successful business investors. That’s precisely how VC works. There’s nothing wrong with this system (plus, who wouldn’t want to work with Mark Cuban?). When you work with a VC, you have a mentor who builds you up and gives you funding. 

But, there’s a catch — you also have to give up equity in your business when you work with a VC or angel investor. Ultimately, an investor wants a portion of your profits. Plus, most of the time, they push you to sell in the end. And, that’s not what I have ever wanted. 

So, instead of giving up equity in your company, I like the idea of learning to obtain the same amount of funding and maintaining full control over your operations. 

And, there’s a myth that you can’t use credit everywhere. It’s actually extremely easy to convert credit cards into cash or a check. So, In place of Angel Investing or VC, I prefer business credit cards or business lines of credit. When I first started obtaining credit, I leveraged big banks like Chase and Bank of America. 

Then, I realized that I preferred to work with local community banks and credit unions. I elect for smaller banks because the underwriting for national banks is extremely strict. And, if you don’t fit inside a set box, it can be more difficult to obtain credit. 

On the other hand, when you work with a portfolio lender (which means the institution lends its own money) or a credit union, the underwriting is done in-house. So, the requirements are more flexible and, if you have someone at a bank who can vouch for you, people are more willing to work with you. 

Recommended Reading: 

  • Should You Open a Navy Federal Credit Union Business Account? 
  • PNC Bank Business Credit Card Review & Comparison

The Basics of Business Credit for Absolute Beginners

When I speak to business owners and I start talking to them about business credit, one of the first things I tell them is that they need to have a good business credit score. And, many of them don’t know that exists. Furthermore, some of them have existing business credit scores that they are unaware of. 

So, before you can implement any of the advice you read here, you need to understand your business credit profile. There are three bureaus that monitor business credit: 

  1. Experian Business 
  2. Equifax Business
  3. Dun and Bradstreet (D&B) 

So, as with your personal credit score, your business will have varying scores from different bureaus. The DUNS number from D&B is a little different from the scores Experian and Equifax Business use to classify business credit. And, one of the first action steps to take is to register for a business credit monitoring account. 

Nav Business Credit Monitoring

Nav is a business credit monitoring platform that packs a punch. There are three reasons you need to register for an account. 

  1. You can scan your report for inaccuracies and clean up anything negative. 
  2. The platform will give you feedback about the areas you need to improve to boost your score. You can use this feedback to stay informed as you build your credit profile. 
  3. For a monthly fee, you can upgrade your account and enroll in “Loan Builder,” where the company reports to credit bureaus that you are paying on-time each month. So, you get a better credit tracking service with helpful tools and simultaneously increase your business credit score. 

Having a good credit score is not the entire process, but it is a fundamental part of the system. Without this, the rest of what you learn here is useless. 

So, if you don’t already have one, go sign up for a Nav account right now. Then, read on to dive deeper. 

The Greatest Business Credit Obstacles You’ll Face

When you start at the bottom of the mountain learning about business credit, you can’t see every obstacle you’ll face before you’re able to stand at the peak and look down. But, if you’re told what to expect, you can better prepare yourself.

There are a couple of hurdles that arise at financial institutions every few months or once per quarter. 

  1. Financial programs change
  2. Bank employees leave 

First, for example, if you’ve been in business for a couple of years and you’re profitable, a bank might extend a “no-doc” business line of credit one quarter. With a no-doc, no financial statements are required. And, you may be able to get a no doc for up to $100K. But, if things change within the lending industry or the bank’s own financials, that program might not be offered later. 

So, this is not a ‘set it and forget it’ system. It’s a living, breathing organism. If you place a tent in the woods, you can’t just waltz back to the forest months later and expect it to be there — it could easily be taken or destroyed by weather or wildlife. Business lending is the same.  

Second, your contacts at the bank might leave. Sometimes they will tell you and sometimes they won’t. In some cases, these people move to other banks, and in others, you won’t know. So, once you have a rapport with someone, if you don’t keep their LinkedIn profile or personal cell phone number, you may end up needing to start a brand new relationship. 

So, keep your finger on the pulse to monitor the mood of the banks and maintain close relationships within them. That’s why our account managers are always networking with banks to find new programs and stay up-to-date with changing environments with hundreds of contacts. And, this is why some of our long-time clients come back every few years for more coaching. 

While these ever-changing ecosystems involve quite a bit of effort, take it from me, the view from the summit is glorious. 

The Key to Unlock Your Business Credit Potential 

Trade Secrets Financial Gurus Don't Want to Explain

When you want to overcome the challenges above, you need to have the right mindset. So, if you only ever listen to one piece of advice about business credit, let it be this: build rapport with the right people. 

While this sounds simple in theory, this tip needs to be taken seriously. Rapport and relationships are the trade secret that most financial gurus don’t want to explain to you.  This is probably because they always want to be the best. But, I don’t feel like I’m doing my job unless my clients and students can master the concepts I share. 

For example, after learning our approach to obtaining business credit, one of our coaching clients drove from New Jersey to upstate New York to Key Bank, which used to be called First Niagara. In just one day, he came home with a line of credit for each of his two businesses. He got $50K for each, totaling $100K. 

So, without my help, understanding the processes and techniques he had learned from Business Credit Workshop, and how to network and build rapport, he went out on his own and had successful results. He then shared his new contact with me. After that, we were able to help many future coaching clients obtain substantial lines of credit from Key Bank because we then had someone within the institution who knows us, likes us, and trusts us. 

Still, I have to do my job of filtering out businesses and placing them with the most well-matched banks and lenders. And, I help entrepreneurs become qualified before introducing them to our contacts. But, Greg’s situation was satisfying because I felt like he made it out of the workshop with mastery over the principles we teach.

And, anyone can do the same thing once they understand rapport in professional relationships. But, like in Greg’s case, some of them come back anyway because they know we have account managers dedicated to networking with banks to keep our database up-to-date — and they don’t always want to do the work on their own. 

To build rapport, one actionable takeaway is to call the bank or email even when you don’t need anything from them. You want to check-in from time to time to time and treat bankers like friends. Because when bankers or brokers know you, like you, and trust you, they will work with you and with underwriters to make things happen. 

An advanced hack (that I learned from my wife) is to keep track of what’s going on in peoples’ lives. Take notes. With modern technology, you can use a CRM or helpdesk platform to record information about people. But, as an individual or small business owner, you can simply write things down in your day planner. 

For example, if you know somebody is having a baby, write that down. Then, when you call back, you can ask them how the baby is doing. Of course, people love it when you listen to them and pay attention to what’s going on in their lives. And, while you may not have considered this important in the realm of credit, it most certainly is. 

Business Credit is a Lifelong Journey with a Bank or a Person

When I started my real estate investment business, I went to my local real estate investment club and made friends with the owner because he was successful. And, six months after I met him, I started asking questions to pick his brain. Try to think of the business credit journey as a lifelong professional relationship with a bank or a person. After that, other pieces of the puzzle fall into place. 

So, make friends with the person who gets the approvals at the bank. And, here’s how you can do that. 

  1. Network with the banks
  2. Build rapport with decision-makers 
  3. Ask what goes into an approval
  4. Listen to the answer  
  5. Implement your friend’s advice 

To get credit cards, your best friends don’t have to be bankers, but it will help if you get out to some Chamber of Commerce meetings and make meaningful connections. Yes, the meetings can be kinda boring, but everyone is there to network and build their own professional networks. Invite someone to dinner or a drink and try to establish a new friendship. 

Another great channel for networking, especially today with social distancing in place across the globe, is LinkedIn. Start learning how to leverage the platform to your advantage and see if there’s anything you can do to help someone that would be a beneficial professional connection to have, namely credit union or bank employees. 

This knowledge will come in handy especially in times like right now when we’re experiencing major economic change. Because of COVID-19 and the PPP program, business owners are scrambling to get their low-interest, forgivable loans to stay afloat. So, banks are working unprecedented hours to service their customers. 

Traditionally, bankers work from 9:00 to 5:00 Monday through Friday. Presently, they’re in the office after hours, weekends, and even on Easter to process 30K applications. Still, I’m getting personal emails and texts from bankers along the lines of, “Hey, Joe. PPP money may run out soon, so let’s get you taken care of.” It’s a small effort that brings a big result, in this case someone at the bank looking out for me. 

Final Summary

Now, if you are ready to take the next step to revamp your business and lifestyle, I have some homework for you to start today: 

  1. Sign up for an account with NAV.
  2. Check out your business credit score and create a plan to clean up anything that makes your business high risk for lenders.
  3. Join at least one new group where bankers hang out. 
  4. Introduce yourself to someone who works at a community bank or credit union in your area. 

And, if you want to keep learning and improving your situation, make sure you check out our recent client case study here.

Testimonial from Sergey – Received $365,000 in Business Lines of Credit!

By Joe Lawrence

Sergey worked with us twice and both times got unsecured business lines of credit from local community banks. We called hundreds of banks and came up with a few “no-doc” lenders that did not require tax returns. The interest rates are super competitive and Sergey is now able to expand his business!

He followed the two step process:

1.) Build your business in such a way that banks want to lend to you

2.) Know where to apply for business line of credit and get an instant approval

Sign up for our training here

$70,000 in unsecured line of credit within 10 days – Case Study

By Joe Lawrence

Case Study – Joe R.

  • Client has existing business and has been in business for more than 2 years
  • Business Credit Workshop (BCW) helped prepare client’s company in such a way that lenders are more likely to lend to it, including proper build of business credit profiles
  • BCW introduced client to 2 local, region based lenders that offer no-doc business lines of credit
  • Within 10 days, we got client approved for $50,000 and $20,000! Both are unsecured, no-doc business lines of credit that do not show up on client’s personal credit report

“Joe, it’s been a pleasure working with you. I am pleased to say that my business was given $70,000 in unsecured line of credit within 10 days of making the application. The process was seamless and extremely pleasant. I would strongly recommend Business Credit Workshop to anyone who is looking to grow their business and establish business credit.”

joe r testimonial picBest Regards,
Joe R.

Sign up for our training here

  • Email
  • Facebook
  • Instagram
  • LinkedIn
  • Twitter
  • YouTube

Recent Posts

  • A Deep-Dive Credibly Review: Is Their Financing Right for You?
  • Read This Before You Hire a Business Credit Coach [Quick Guide]
  • 41 Companies That Help Build Business Credit [Beyond Net 30 Vendors]
  • A Complete Torpago Business Credit Card Review

Login

You are not currently logged in.








» Register
» Lost your Password?

Business Credit Blog

· Recommended Resources
· Using 30 Day Net Vendors to Build Your Business Credit Score
· How to Create a Business Credit “Entity” – Tutorial

Recent Posts

  • A Deep-Dive Credibly Review: Is Their Financing Right for You?
  • Read This Before You Hire a Business Credit Coach [Quick Guide]
  • 41 Companies That Help Build Business Credit [Beyond Net 30 Vendors]
  • Email
  • Facebook
  • Instagram
  • LinkedIn
  • YouTube

· Sign Up for Business Credit Workshop Online!
· Login – Business Credit Workshop Online
  Forgot Password?

Copyright © 2022 · All Rights Reserved · Privacy Policy · Terms · About · Contact Us

  • Home
  • Start Here
  • What We Offer
    • Products
    • Services
    • Free Guide
    • Back
  • Tutorials
    • How to Create a Business Credit “Entity”
    • Dun and Bradstreet / How to get a DUNS Number
    • How to Establish Your First 5 Trade Lines of Credit
    • Back
  • About Us
  • Contact
  • Sign Up