Business Credit 101

Have you ever wondered how some investors seem to have endless amounts of credit? How they can finance and carry over 30 an 40 properties but you can't seem to find a lender that will finance your forth or fifth property. What about the people who can snatch a deal up in less than tree days without blinking. There is a simple answer, business credit or trade credit.
Personal Vs Business Credit   As explained in credit 101, from the time you start working or apply for your first credit card a credit profile is created with the personal credit buearus. At this point you enter what I described as the credit cycle.In short, your profile also known as a credit report gets information added with each credit inquiry, credit application submitted or any credit activity. This information is evaluated into a credit score by the by the credit buearu and lenders use this score to determine whether you are worth lending too.   In most cases it is the same for businesses. When a business issues another business credit it is usually called trade credit. You have probably heard it called by a few names, Business credit, trade credit  and corporate credit its all basically the same.	Click Here to Learn More About Business Credit!
Business credit reporting   Information about business credit transactions are gathered by business credit bureaus thatcreate your business credit report using your Business name, address and federal tax identification number also know as your EIN ( employer Identification number) which you get from the IRS. The business credit bureaus use this information to create a report on your business credit transactions. In most cases, a lenders will use this credit report to determine whether your business is worth lending too.
Unfortunately, because the information provided to the business credit bureaus is sent in voluntarily--no business is required to send it in--the credit bureaus may never receive all or even any information about your business credit transactions. In fact, you could go for years racking up business credit without any of it being reported to the credit bureaus. The major business credit bureaus that create and provide copies of your business credit reports are: Dun & Bradstreet Experian Business Equifax business Business Credit USA