Building Your Business Credit

Listen to our blog on 'Building Your Business Credit here:

SUMMARY


On this segment of The Lifestyle Business Owner Radio Show, Aaron and Mayumi Muller sit down with David Murphy, the CFO of Business Finance Services. Murphy has been helping individuals improve their FICO scores for 27 years.  Now, David Murphy successfully helps business owners improve their business credit, so they can access funding for their business, regardless if their personal credit is good or bad. 

Aaron and Mayumi Muller own and operate over 8 multi-million dollar businesses, in other words, they can’t afford to have their business credit negatively affect their personal credit scores—and that’s when they met David.  The key is to make your business credible.

Business owners successfully establish credibility by: 

  1. Finding vendors (companies) that report and subscribe to the 3 credit  bureaus
  2. DUNS number and EIN number
  3. Following the credit lender requirements 

 

LET'S GET DOWN TO BUSINESS


Whether your business is a start up or simply wanting to build business credit, you need to make sure your vendors are listing and reporting your company to the three credit bureaus: Dun and Bradstreet, Equifax and Experian.  If you have been unsuccessful in establishing business credit--here's what you should be doing:

  • Starter Vendor Accounts
    • Net 30 accounts are ‘small vendor lines of credit’ by purchasing goods and services from vendors and paying the bill in full within (or before) the next 30 days.  You have to make sure your Net 30 accounts are reporting to one of the three credit bureaus.
    • After establishing over 5 Net 30 accounts, you will be eligible to establish revolving accounts, such as Costco, Amazon, Office Depot, Lowes, etc.
    • After you have established various revolving accounts for your business report you can apply for lines of credit VISA, Master card, etc. 

 

THE STREET SMARTS OF SMALL BUSINESS


Here on the Lifestyle Business Owner Show, we actively promote healthy and successful relationships with our customers. Our customers are the reason why we get to do what we love everyday and their patronage can make or break our business. During our last two segments, we have been breaking down the steps of the Lifestyle Business Owner Formula, starting with 1. Buying the business 2. Increasing the profits and 3. Customer Snowball Effect.

The Customer Snowball Effect is the cultivation and expansion of the WOW factor that business owners need to present. 

  1. Company Search
    • Reputable website 
    • Ease of use 
  2. Enhance Credibility 
    • Ratings and reviews 
    • Online Reputation Management 
  3. First Impression
    • Responsive and energetic employees
  4. Deliver a quality product or service
    • Thorough and complete work
  5. Create a lasting impression
    • Capitalize on your customer's 'happy' experiences
    • If they are unsatisfied-- address their concerns immediately! 
  6. Create Repeat Business
    • Incentivize customers

Continue to create a WOW customer experience and you will see the benefits!

 

SHOW US SOME LOVE.
Please hit the like button below so we know you like our content and want more like it! 

Follow The Lifestyle Business Owner on Instagram to receive video updates!

We give gratitude and shout-outs to our students, so post a screenshot or video on Instagram and use '#LBO!' We can't wait to hear what you think about this episode!

 

QUOTES TO SHARE. 

 

 

 

Want More? Listen to our recent Lifestyle Business Owner Radio Show segments here:

How To Get Started In Business
Why Every Business Owner Needs An Attorney
How to Brand Your Business
The Power Of A Relationship With A Business Banker
Using Community Currencies

FREE GUIDEBOOK DOWNLOAD

"The Lifestyle Business Owner Guide"

Want to know how to own a successful business that can run without the owner? Want to make a 6-figure income as a small business owner in your community while working as little as 5 hours a week?

Download your free guidebook today!

Click here to get your copy by e-mail