BCBCS Training Manual

Become A
Board Certified Business

Credit Specialist
By
The Credit Consultants
Association
Table of Contents
Quick Start Guidance - Sound Like A Pro ....................................................................... 6

Quick Start - Strategy To Earn $15,000 + Per Client....................................................... 6
Quick Start - Business Credit Closing Tools.................................................................. 15
VIII. Viewed as a High Risk of Default ........................................................................... 17
I. About Corp Only Financing ..................................................................................... 17
II. Business Credit in Contracts .................................................................................. 18
III. Valuable Comparable Credit ................................................................................... 18
XII. Have You Heard That Business Credit is a Myth? .................................................. 18
• Lender Compliance Items ....................................................................................... 19
• Owner’s Personal Credit ......................................................................................... 19
• Approvals, Amounts, Rates, & Terms ..................................................................... 19
6 Steps To Building Business Credit ............................................................................. 23
Step 1 – The Foundation ............................................................................................... 25
Step 2 – Your Fundability .............................................................................................. 27
Step 3 – Credit Agencies............................................................................................... 29
Step 4 – Vendor Credit (Net 30) .................................................................................... 30
Step 5 – Revolving Credit Accounts .............................................................................. 31
Step 6 – Ban Credit ....................................................................................................... 32
Haven't formed an LLC, C-Corp, or S-Corp for your business yet? ........................... 33
a.c) Compliance Item - Foreign Corporation Filing..................................................... 34
Business Address and Location: ................................................................................ 35
Business Phone and 411 Directory Listing ................................................................ 36
Don't Overlook the Need For a "Professional" Business Email Address .................... 38
How does your business get approved? ....................................................................... 41
Have You Taken The Time To Plan Your Business? ................................................. 42
Using Assets Can Make Getting Approved Faster ..................................................... 43
The Owners Personal Credit Can Play A Role........................................................... 43
How To Get At Least A Low 5 .................................................................................... 47
OPTIMIZE REPORTING ............................................................................................... 52
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Business Credit Agencies .......................................................................................... 52
Check Your Current Experian Business Credit Status ............................................... 52
Creditsafe Business Reporting................................................................................... 54
Accessing Your Equifax Business Report .................................................................. 55
FICO Scores As They Apply To Business Lending .................................................... 59
Increasing Your Personal FICO Scores ..................................................................... 60
Types of Personal Debt Business Lenders Care About ............................................. 61
Debt Limit Ratios and Debt Acceleration ................................................................... 62
Your Credit Identity .................................................................................................... 64
Proof of Business Ownership ..................................................................................... 64
Using Credit Partners To Access Capital ................................................................... 65
Authorized User ......................................................................................................... 65
BUILDING CREDIT ....................................................................................................... 67
ACCESS FUNDING ...................................................................................................... 73
INCREASE EXPOSURE ............................................................................................... 78
MAXIMIZE EARNINGS ................................................................................................. 81
Plan To Sell For Your Highest Value ......................................................................... 82
How & Why Business Owners Exit ............................................................................ 83
BONUS SECTIONS ...................................................................................................... 85
How To Prepare and Present a Successful Business Funding Request ....................... 90
EVERY BUSINESS NEEDS CAPITAL ...................................................................... 90
The Cost of Capital .................................................................................................. 90
What this workbook will do for you........................................................................ 90
The difference between failure and success ............................................................ 91
Business Credit .......................................................................................................... 91
BUSINESS FUNDING - LESS THAN 3% FIND IT ... WHY?...................................... 92
Shot Gunning will kill even a great deal, and here is why! ......................................... 93
So how do you successfully fund your business? You must ... .......................... 93
There are only two ways to obtain business financing: .............................................. 93
"The man who believes he needs help from no one, ............................................... 94
quickly learns he has a fool for a partner.”............................................................... 94
I. PLAN FOR SUCCESS ............................................................................................... 95
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Executive Summary ................................................................................................... 95
"Business is the art of extracting money from another ........................................... 96
EXECUTIVE SUMMARY WORK SECTION.................................................................. 97
II. THE PLAYERS........................................................................................................ 100
III. STRATEGIC POSITION......................................................................................... 102
Market Overview .................................................................................................... 102
Market Approach.................................................................................................... 102
Market Analysis...................................................................................................... 102
Feasibility ............................................................................................................... 103
Product Protection................................................................................................. 103
Product or Service Analysis ................................................................................. 104
Outside Factors...................................................................................................... 104
Commercial Viability .............................................................................................. 105
IV. MARKET STRATEGY............................................................................................ 106
Market Position ...................................................................................................... 106
What kind of image do you have? ........................................................................ 106
What pricing strategy will you use? ..................................................................... 106
What advertising/promotion sources will you use? ........................................... 108
What features will you promote?.......................................................................... 108
What rationale will you appeal to? ....................................................................... 109
What buying motive hot buttons will you use? ................................................... 109
What emotional responses can you use to your benefit? .................................. 110
V. SETTING GOALS ................................................................................................... 112
Benchmarks/Milestones ........................................................................................ 112
VI. COMPETITION ...................................................................................................... 114
Who are your three major competitors? .............................................................. 114
VII. THE AMOUNT REQUESTED AND USE OF FUNDS ........................................... 117
VIII. THE TERMS ........................................................................................................ 119
IX. REPAYMENT PLAN .............................................................................................. 122
X. PRO FORMA FINANCIALS .................................................................................... 124
The Income Statement (Profit & Loss) ................................................................. 124
Income Statement Worksheet ..................................................................................... 128
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The Balance Sheet ...................................................................................................... 130
The Balance Sheet Worksheet.................................................................................... 134
Cash Flow Projections................................................................................................. 137
The Cash Flow Statement Worksheet ......................................................................... 139
Monthly Cash Flow Projection Worksheet ................................................................... 145
Key Indicators and Ratios ........................................................................................ 147
XI. PREPARING YOUR PRESENTATION.................................................................. 149
Your Presentation Materials.................................................................................. 149
XII. TYPE OF CAPITAL DESIRED .............................................................................. 150
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Quick Start Guidance - Sound Like A Pro
“Designed to help you sound like a business credit pro immediately”
Quick Start - Strategy To Earn $15,000 + Per Client
You paid for this certification so that you could learn to earn a fantastic income assisting
business owners in building their business credit profiles.
We will get in it right away. The following describes what we believe is the best plan for
maximizing quick funding for your small business owner clients, including startups. This
strategy will place them on the radar of all business lenders, jump-start their business
credit, and can lead to $15,000+ in revenue to you from a single client.
This certification training is directly related to the software we offer to seamlessly assist
you as the consultant in building business credit for yourself and your clients. We highly
recommend that you get access to this software for your business to have a hands-on
approach to building a successful business credit profile.
Let’s Jump Into The Steps …
Step 1 - The Success Scan

The easiest way is to have your clients run a business success scan at the website URL
we provided you. Our generic branded software application that all of us can share to
assist you and your clients in building business credit. Basic scans are FREE, but the
full benefits are in the full activation of the software. Full activation is $150 per client, but
you can charge $697 to activation the software as a DYI or $3000 per client for live
coaching. Also, obtain revenue by funding their business.
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This success scan will help you establish what your clients should take care of before
you take them out for any type of funding. It scans about 150 data points on their
business for all things lender compliance, business credit, SEO, social media, star
ratings, backlinks, local listings, map placements, legal filings, possible valuation, and
the owners. It lets them see how lenders and anyone else looking at or investigating
their company will see them and what they will find.
Step 2 - Credit Analysis

You will need to obtain a current copy of all the business owner’s personal; credit
reports. With this you are going to run a UBF Funding Estimator report. Here you will
simply answer the questions from the Estimator to generate a funding score which then
associates to an estimated funding range.
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Any items that the Funding Estimator indicates are alert items should be addressed and
fixed prior to taking your clients out for funding. The optimal funding range score is an
80+ with the business owner’s personal credit FICO scores being in the 720+ range.
Key factors are going to be having less than 45% debt to limit on all revolving (credit
cards/credit lines) with the optimal being 15% to 19% (Not 0%), less than 3 recent
inquiries (last 90 days), and stated projected combined gross income from all sources
(business, personal, household) of $150,000+.
Step 3 - Credit Union $30,000 To $90,000 Signature Term Loan(s)

Once your clients have passed the credit analysis step, the next place to take them is to
the Credit Unions. Here you are going to want them to first get their credit union
membership and then open a personal account. Once that is done have them apply for
a $30,000 “Signature Term Loan”.
These will be a personal unsecured loans where typically the funds are deposited into
their new credit union account within 48 to 72 hours. Make sure your clients apply only
for the fixed rate and fixed term loan and that they do not apply for a credit line or any
credit union credit cards at this time.
Credit Unions have an “Exposure Limit”. This is usually $30,000 within the first 90
days of membership from all accounts combined, meaning your client can get a
combined $30,000 from a credit union term loan, credit card limit, line of credit, and debt
consolidation loan. If your clients wants $10,000 to pay down other credit cards it is best
to use the credit union debt consolidation loan as credit unions like these. This $10,000
loan would then cut into the $30,000 Exposure Limit leaving an additional
$20,000 available for the term loan. If you apply for $50,000 on day one of membership,
even though the credit union states that is their max limit, your client is likely to get
declined. Get approved for $30,000 first and then come back after 90 days and apply for
more.
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Most credit unions only do a hard credit pull from one agency and not all three.
Therefore the credit union signature loan process can be used to obtain multiple
$30,000 term loans from different credit unions that are pulling credit reports from
different reporting agencies. This can mean obtaining $90,000 or more for your client
while at the same time only ending up creating one credit inquiry on each report. We
have seen six (6) of these loans done where it is two from each credit pull type but we
don’t recommend it.
Another good feature of the credit unions below is that they will use the same credit
report for up to 30 days to do a second or third loan approval. What this means is that
you could do a credit card, debt consolidation, and term loan all on the single credit pull
and only have the one inquiry on the one report.
The following credit unions are known to do this program and only pull a single
credit report:
Unify https://www.unifyfcu.com 877-254-9328 Hard pull

Financial https://www unifyfcu com /pers onal loans single Equifax
NIH Federal https://www.nihfcu.org/pe Hard pull
Credit Union rson al-loans/#Personal- single Equifax
https://www.nihfcu.org/ 855-852-4748
loans
State
Employees
https://www.ncsecu.org/ https://www.ncsecu.org/P 888-732-8562 Hard pull
Credit Union
erso single Equifax
Langley https://www.langleyfcu.or Hard pull
Federal Credit g/pe rsonal-loan single Equifax
800-826-7490
Union
Justice https://www.jfcu.org/Pers Hard pull
Federal Credit onal Loans single Equifax
https://www.jfcu.org/ 800-550-5328
Union
AOD Federal https://www.aodfcu.com/ Hard pull
Credit Union signa ture-loans/ single Equifax
https://www.aodfcu.com/ 800-637-0299
https://www.firsttechfed.c Soft credit
om/ borrow/personal- pull HP on
First Tech 855-855-8805
loans/unsec ured- approval
Credit Union https://www firsttechfed c
https://www.alliantcreditu
nion. org/borrow/get-a-
Alliant Credit 800-328-1935 Hard pull
credit-union- personal-
Union https://alliantcreditunion single
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https://www.psecu.com/l Hard pull
oans/ personal-loans single
PSECU https://www.psecu.com/ 800-237-
Experian
Soft credit
pull HP on
NASA Federal https://www.nasafcu.com 888-627-2328
approval
Credit Union https://www nasafcu com /per sonal/personal loans
Note: Navy Federal has very good personal and business loan programs but they do a
hard pull on all s and will do a separate pull for each loan type even if it is applied for on
the same day.
Step 4 - A Certificate of Deposit Secured Business Line of Credit
The full $30,000 to $90,000 funds from the credit union term loan(s) should be used to
take out a certificate of deposit with a Tier One bank such as Wells Fargo, Bank of
America, Citi, Chase, etc. The certificate of deposit is used to secure a one-for-one
business line of credit for the $30,000 to $90,000.
Your First Payday Is Within Days ...
Step 5 - Your First $3,000 To $9,000 Earnings
The average fee charged by most business finance brokers is 10%, and if this is your
rate you have earned your first $3,000 to $9,000 by obtaining a $30,000 to $90,000
business line of credit for your client. This is where your first invoice should be
presented and your first commission collected.
Step 6 - Business Credit Reporting

The business line of credit that you have helped your client to obtain will now be
reported to the business credit reporting agencies and start to build your client’s
business credit scores. Due to the fact it is a fairly large loan with a Tier One business
bank it will get your clients noticed by a spectrum of other lenders and their business
mailboxes will start filling up with lending offers.
Step 7 - A Low 5 Bank Rating

As part of the use of funds for your business clients, make sure they understand the
importance of obtaining and maintaining a Low 5 bank rating. This is a minimum of a
$10,000 balance everyday for the prior 90 days so that their average daily account
balance never drops below $10,000. This will take a minimum of 90 days to obtain and
typically another 30 days to get fully reported.
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Step 8 - Comparable Credit
A major thing in business lending is called Comparable Credit. This is basically who is
the first lender to lend your client what is considered a large sum of money. If your client
has never had a business loan for
$30,000 or more then lenders and credit card providers tend to hold back on approving
larger amounts.
The secured business line of credit you have obtained for your client has solved this
problem with them now having a Tier One business lending bank having granted them a
$30,000 to $90,000 credit line. This means other lenders will now view your client as a
lower risk of default and approve new loans for higher amounts, lower interest rates,
and longer repayment terms.
Step 9 - Lender Compliance

The next Step is to make sure that your clients have all items of their lender compliance,
as defined in your success system, completed. At this point your clients can still be
“uncoached” in your system as the
Lender Compliance section of your success system is free for them to access and
complete.
Your Second Payday Is Within A Few Weeks ...
Step 10 - The $50,000 To $100,000 UBF

Once all items of their Lender Compliance are completed and their funding range report
score is at an 80+, it is time to take them out for UBF or “Unsecured Business Funding”.
This will help your clients to obtain both personal and business credit cards and
maximize the amounts they can obtain.
The UBF is detailed in your admin area under the “UBF Playbook” and the credit card
providers along with their card offerings are detailed in “UBF Cards” also in your admin
area. The average UBF funding if you have followed the above steps is between
$50,000 to $100,000 from 8 to 10 credit cards.
For your clients that have FICO 8 scores 720 and above and for which you have used
the UBF Funding Estimator to eliminate all their contingency requirements you should
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apply for only the 0% APR intro period cards. The average approval amounts and max
limits seen are denoted in the UBF Cards data.
Step 11 - Personal & Business

It is extremely important that you communicate to your clients about the importance of
applying for both personal and business credit cards in the UBF process. The reason for
this is that these lenders want a personal relationship with your client as well as a
business relationship.
If only the business cards are applied for these lenders will typically approve for as
much as 50% less than that would have if the personal card had been approved first.
The cards you will be obtaining for your clients will be 0% interest for typically 9 to 18
months, so there is no interest meter running. Having the personal cards provides your
client with a good safety net should the need for additional funds arise.
Step 12 - Your Second $5,000 To $10,000 Earning

If you obtain $50,000 to $100,000 in credit card funding for your clients and are
charging the standard rate of 10 points then you have now earned an additional $5,000
to $10,000 and it is time for the second invoice to your client.
Step 13 - Success System Coaching

Now it is time to make sure your client signs up for your full business success system
coaching for the year and understands the amazing benefits for doing so. Your admin
area provides you with a massive amount of training and closing tools to help you make
that sale. The average coaching fee is between $3,000 and $4,000 for the year.
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Then Your Paydays Keep Coming ...
Step 14 - Earning Another $3,000 To $4,000

After you have closed your funded client on the benefits of your success system
coaching, then at this point you can be at $10,000 to $20,000 from a single client that
you have earned in three payments parts. Now imagine handling even 5 of these clients
a month for which your private label of the success system makes it easy to do and to
handle with little or no staff.
Step 15 - Affiliate, Reseller, or White Labels

Now if you have followed our success system setup instructions and developed either
affiliate, reseller, or white labels of the Lender Compliance item vendor services, you
should have earned another $500 to $1,000 from your client completing those items
with your service vendors.
Step 16 - More Earnings At 6 Months

The business success system live coaching helps you stay in touch and maintain
rapport with each funded client. If your clients have built their business credit and
maintained good personal credit you can use your UBF database to have them call for
credit line increases after six months. Do not have them ever use the online credit line
increase requests as they might only get 20% where by calling in and having a reason
for the requested increase they can receive 50% increases across each of the cards
that you obtained for them.
Step 17 - More Earnings At 12 Months

You can repeat the Step 16 process at the twelve month mark and obtain additional
50% credit line increases per card turning a $10,000 to $15,000 and then into a $22,500
card in 12 months. You can invoice for all these credit line increases adding even more
to your earning from each single client.
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Quick Start - Business Credit Closing Tools
Many times you will be confronted with closing opportunities, challenges from potential
clients on what business credit is about, or your knowledge of business credit and
financing in general.
These 25 closing items are designed to demonstrate your knowledge of the facts
surrounding business credit and financing, to start the conversations, take advantage of
the closing opportunities, or to quickly turn people who initiate those challenges.
• Lenders Sell Your Loan In The Secondary Market
When a lender makes a loan to your business they do not hold onto that loan, they sell
it in the secondary market. This means that if they make you a $10 loan they sell it in
the secondary market for $12, take their $2 profit, and go make another $10 loan. They
do that over and over again. However, if your loan does not “conform” then they cannot
sell it and therefore you are declined. There are about 20 of these “conforming items”
that make up what is called “Lender Compliance”. When you run our free business
success scan we display with a Red X or Green Check which items of Lender
Compliance you have completed and which ones you have not.
• Lenders Check The Small Business Financial Exchange
Your business does not have the same privacy rights as you do personally. There is
something called the “Small Business Financial Exchange” where lenders can access
your business banking information. They can see how much money has gone through
your business bank account over the last 90 days and how much of that money stuck to
you. They cannot see what you spent the money on but they can quickly determine your
business’s ability to debt service based on what they can see. Inside our system we
show you how to know what lenders want to see as a minimum for loan approvals when
they look at your business banking information.
• There Might Be a UCC-1 Filed on Your Business
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Before applying for any business financing you should always check to see if there are
any UCC-1 filings on your business. UCC stands for Uniform Commercial Code. It is a
nationwide filing system to record liens and debt obligations that your business has
either entered into willingly or that have been filed against it. If you have any type of
SBA loan then what is called a “Blanket Lien” has been filed on you personally and on
your business. A Blanket Lien is just like it sounds. It encumbers all past, present, and
future assets that both you personally and that your business owns. A Blanket Lien can
block many other types of business lending from taking place until that blanket lien is
paid off. In our system we will show you if there are any UCC-1 filings currently on your
business.
IV. Viewed As 10 to 20 Times More Likely to Default
Business lenders have approval algorithms that their computers run on your business to
determine if it is a high or a low risk of defaulting on a loan. There are a series of
historical items they are checking from borrowers who have already defaulted to
determine common themes about those borrowers. What they have found is that if you
operate your business from a cell phone, or from a residence, or from a free email
provider, or as a sole proprietor then any one of those items has already shown you to
be 10 to 20 times more likely to default on their loan.
Inside our system we show you all these High Risk category items and how to position
your business to be viewed as a low risk of default and therefore increase your
opportunities for more approvals, higher amounts, and better terms.
I. Business Lenders Are Concerned About Loan Stacking
When you take out a personal loan it will show up on your credit reports whether you
use it or not. That is not true in business lending. Business loans and business lines of
credit will only show up on your business credit reports after you use them. This allows
for a practice called loan stacking in which a business will get multiple loans from
multiple lenders and not use those loans until they are finished stacking. What this leads
to is business lenders being very concerned about your number of recent credit
inquiries. If you have more than 3 inquiries in the last 90 days then even lenders who
would have otherwise approved you will now decline you for the next 6 months to see
what stacked loans may appear.
II. Business to Business Credit
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There are over 500,000 companies in the United States extending business to business
net 30 or net 60 day credit payment terms. That equates to over 90% of all business
credit extended in this country. This business to business credit vastly exceeds all
business loans being made by banks, the SBA, credit cards, leasing companies and all
other forms of business credit. Even though there are over 500,000 businesses
extending credit to other businesses, there are less than 5,000 of these businesses that
currently report payment histories to the business credit reporting agencies. Inside our
system we give you access to over 3,000 of them.
III. Importance of a Bank Rating
Unlike personal credit, your business has a bank rating that lenders will use to
determine your ability to debt service. Your bank rating is the average daily balance of
your general ledger account over the last 90 days. If your business has a “Low 3” that
means there was only $100,
$200, or $300 in your business bank account for the last 90 days to service debt at any
given time. If you are asking a lender for a loan where the payment is $1,500 a month,
what do you think will happen? Lenders see that you do not have the ability to pay, and
so you will be declined. A Low 5 rating or above is optimal when trying to acquire
business loans or leases.
VIII. Viewed as a High Risk of Default

Just like in personal lending, business lenders develop methods to determine which
businesses are a high risk of default. They do this based on defaults from their own
portfolios and from the portfolios of other lenders who share data. Businesses that
operate as sole proprietors, operate from home, use free email accounts, have a cell
phone as their primary business line, do not have a website, or have two or less stars
on the most common review platforms all have a higher rate of default in the eyes of
the lender. Lenders use whatever trend data is available to try and lower their risk of
loan defaults so that their portfolios have a higher value on the secondary market. Our
system shows you how to be viewed as a low risk of default.
I. About Corp Only Financing

When trying to secure corporation only financing, that is not of the business-to-
business vendor type, lenders will look at comparable credit, business credit scores,
reporting tradelines, bank rating, revenue, time in business, debt to income, balance
to limit ratios, industry type, debt acceleration and more. They want to see if anyone
has already loaned a comparable amount, business scores of 75 or above, at least 10
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reporting tradelines, minimum of a Low 5 bank rating, $35,000 or higher monthly
revenue, 3 years in business, less than 45% debt-to-income, and less than 45%
balance-to-limit.
II. Business Credit in Contracts

If a business is seeking to do contract work, be it government or commercial, likely
their business credit will be checked during the award process. Those contractors with
no credit history or poor history will be viewed as not having the ability or resources to
complete the job. On the other hand, companies with excellent business credit history
will be seen as much more professional, likely to complete the job on time, and be
much higher on the award list
III. Valuable Comparable Credit

If your business has already received a loan in the amount equal to or greater than the
amount you are requesting from another lender then you have comparable credit. If you
want to borrow
$50,000, has your business ever had a $50,000 loan before, and if so how did you
pay on it? That is comparable credit. Once your business has a reporting comparable
credit tradeline, other lenders will notice and start extending similar amounts. A great
way to get your first comparable credit reporting tradeline is to open a CD at a
business lending bank and use it to secure a dollar for dollar reporting business line of
credit. If it is $10,000 or higher it puts you on
other lender’s radar and offers will start coming.
XII. Have You Heard That Business Credit is a Myth?

Over 90% of the business lending in the United States is done business-to-business
and not bank-to-business. Businesses that extend credit lines for their products and
services to other businesses exclusively use business credit scores to determine the
approval, amount, and term. For business-to-business, having at least 10 currently
reporting business credit tradelines and business credit scores of 75 or above makes
the difference of having to personally guarantee each of these credit lines or not.
There are over 500,000 companies in the United States extending credit to other
businesses.
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• Lender Compliance Items
There are 20 items of compliance which lenders use to quickly determine if a
business is a high risk of default. This is similar to personal lender redlining practices.
Business lenders use known default data analytics to profile groups of businesses
with a history of higher default rates. These are sole proprietors, home based
businesses, certain industries, businesses operating from cell phones, businesses
with only free email accounts, and fifteen more items.
Lender compliance is easy to get checked off if you know what to do. If you have these
items completed at least your business is not immediately viewed as a high risk of
default.
• Owner’s Personal Credit

We hear a lot of talk about how business credit can replace personal credit when it
comes to business loans. It is true that business credit is required for business-to-
business lending and that can be done without the personal credit of the owners. The
owner’s personal credit is vital for any type of bank business lending such as term
loans, credit lines, and credit cards. For bank lending, the owners should maintain
720 or higher fico scores, less than 45%
debt-to-income, and less than 45% balance-to-limit on all revolving credit accounts.
Personal guarantee does not mean personal reporting when it comes to business
loans.
• Approvals, Amounts, Rates, & Terms

Most business owners do not realize that when they apply for a business loan, lease,
or credit card that many lenders are checking their business credit to help determine
their risk of default. This risk analysis can lead to either an approval or decline. In the
case of most commercial lending business credit plays a factor in the amount
approved, interest rate charged and length of the repayment term offered. Not having
excellent business credit profiles can lead to not getting contract awards, having to
personally guarantee equipment and office leases, having to personally sign for
utilities, security systems, vendor supplies, and more. Having business credit scores
of 75 or higher with at least 10 reporting tradelines can eliminate personal guarantees,
increase approval amounts, lower interest rates, and provide more favorable
repayment terms.
XVI. Importance of Debt to Income
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Business lenders will be looking at the businesses debt-to-income to be no more than
45% with verifying primarily being the last three months of bank statements. If the
business is a startup then business lenders will be looking at the same 45% debt-to-
income for the business owners with a business owner being anyone owning 20% or
more of the business.
I. Critical Balance to Limit
Business lenders care most about how the owners of a business have been using their
personal unsecured revolving debt. These lenders want to see that business owners
have had a good history of revolving debt usage of preferably three or more years with
account amounts of 5 to 10 thousand dollars or higher and that balance-to-limits have
been maintained at 45% or lower. At the time of business loan applications if even one
personal revolving account has a higher than 45% balance-to-limit it can get the deal
declined or significantly lower the amount of the approval. Lenders will also care about
debt acceleration. That is where they see $10,000 in revolving debt a few months ago
versus $50,000 in revolving debt now. The fast acceleration of debt will raise a red flag
and may signal a much higher risk of new loan default.
II. Credit Cards on Your Own
We often hear, “I can apply for credit cards on my own, I don’t need you to do that for
me”. Well of course you can, but let’s look at why you shouldn’t. There are hundreds of
personal and business credit cards where applying for the wrong one or applying in the
wrong order will get you declined for other cards or get you approved for far less
amounts with others. There are different types of business credit card providers. Some
are prime providers that offer credit cards as a service for the customers but credit
cards are not their main source of income. These prime providers normally have only a
few cards to select from. Others are sub-prime providers, which generally means credit
cards are their main source of income and they typically have twenty to thirty cards to
select from. Applying with subprime card providers before you apply with prime
providers will be damaging.
III. Importance of Having Personal Cards
Many business owners will say “I don’t want or need any personal credit cards”. What
they don’t realize is that most credit card providers want to have a personal relationship
with their card holders. This means that while they will approve your business for a
credit card, the amount approved may be much lower if there is no personal relationship
in place. In some cases applying first for personal credit cards and then business cards,
business owners can achieve business credit approval amounts of two to three times
higher. It is also true that these card providers may approve two or more personal cards
in addition to the singular approval for the
business credit card.
XX. 3 New Inquiries in the Last 90 Days and You’re Done
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Unlike personal credit, applying for business credit on your own can be extremely
damaging. The reason is that once you have 3 credit inquiries for business credit,
normally other business lenders will then decline you. The reason is that these business
lenders will assume that you are credit or loan stacking and they will wait about 6
months to see if these other inquiries were approved. Let’s say you are applying for a
$50,000 loan and that lender sees 3 other recent inquiries in front of them. They will
assume that you applied for $50,000 from those other 3 lenders and that you are
stacking your business loans. This means they may be part of a
$200,000 loan and not simply a $50,000 loan, making you a much higher risk of
default..
I. Business Credit Only Reports When You Use It
Most business owners do not realize that business credit only reports when it is used,
unlike personal credit where all your trade lines will report each month whether you
have used them that month or not. That is why you can get a business line of credit and
not use it for 3 or 4 months and it will not show up until a reporting cycle after you have
used it, creating gaps in your reporting. When your business receives credit lines from
Net 30 account vendors it is very important to use those credit lines every month so that
there will be no gaps in your business credit reporting.
II. Lenders Computers Are Doing The Checking
Business owners believe that they are qualifying for business loans when that is actually
not the case. The business lender’s computers are actually checking to see if your “loan
paper” will be able to be sold. This means can they get their money back, plus their
profit, by selling your loan? Each loan they make must meet a number of preset criteria
so that loan can be grouped with other loans and sold as a package. Business owners
seeking business loans must know a lender’s preset criteria in order to get approved
and there are just too many for you to guess and get it wrong. Our system takes the
guesswork out of it.
III. Being Found On The Internet
In the age of the internet having your business be found on what is called NAP
validation can be critical to getting approved for business loans and lines of credit. NAP
validation simply means “Name, Address, Phone” and is the measure of whether or not
the lender’s computer business validation system can find your business when they look
up its Name, Address, and Phone number. If they can’t find the business name, or if the
address comes back as residential, or the phone comes back as mobile then most likely
your business will be declined. Knowing how to
check your NAP validation before you apply will be critical for getting approved.
I. Business Credit Is Not Like Personal Credit
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With your personal credit you can pay every debt you have 29 days late with absolutely
no impact on your credit ratings or scores. Of course you will incur late fees, but no
creditor will report you as even being one day late. This is not the case in business
credit reporting.
Business credit reports to the day. This means if you pay 5 days early or 15 days late
that is exactly how it gets reported. This has a huge impact on your business credit
scores. Business credit scores of 70 indicate your business pays all its creditors on time
as agreed. Paying 10 days early will result in scores in the 80 range while paying an
average of 10 days late will land your business scores in the 60 range. To optimize your
business loan opportunities you want to be in the 75 or higher range which is equivalent
to 750 personal scores.
II. What Can Happen If You Trademark Infringe
When you file for a business name with any secretary of state they only do a name
availability search in that state alone. This means there may be many other potential
businesses nationally with that same name or very similar names that are close enough
to cause confusion or even trademark infringement. You could be two or more years
into building a successful business with very strong business credit scores only to one
day receive a cease and desist letter in the mail for trademark infringement that you had
no clue existed. Now all your hard work in building success under that name is for
nothing and you are forced to do a name change and start over. All this when a simple
business finance pre-qualification audit would have discovered this and much more
before you potentially wasted a large amount of time, effort, and money. Business
lenders can easily check to see if your business name may be trademark infringing.
Your risk of defaulting on their loan would be very high if there was a potential for a
cease and desist letter.
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The Reasons to Build Business Credit
Wells Fargo Bank - Separating Personal and Business Finances

"The longer you delay establishing business credit,
the longer you delay taking advantage of business loans."
Your business needs to stand on its own for financing and it won’t
be able to do that until it has strong business credit scores with:
Your Business Must Have 3 Separate Business Credit Reports with:
Experian Equifax Dun and Bradstreet

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B U I L D I N G B U S I N E S S C R E D I T Steps
6 Steps To Building Business Credit

In this book we will be showing you the 6 Steps to building business credit.
Steps 1 and 2 are foundational and critical to complete so that your business is ready to build strong business
credit scores. Without completing Steps 1 and 2 it is impossible to build business credit scores that are
separate from you personally.
Steps 3, 4, 5 & 6 are where you actually build business credit.
Step 3 is setting up with all business credit agencies; EquiFax, Experian and Dun & Bradstreet.
Step 4 is obtaining five vendor lines of credit that report to the agencies
Step 5 is obtaining three business credit cards that report to the agencies.
Step 6 is obtaining your first business bank loan that reports to the business credit agencies.
Below is summary of each Step and what you must do to successfully build business credit…
Step 1 - Setting The Foundation For Building Business Credit

1.1 - Making Sure Your Business Is Ready To Build Business Credit.
1.2 - Your business entity structure, what it takes to build business credit.
1.3 - You will be building strong business credit and you should protect it.
1.4 - Why your business location is vital to building business credit.
1.5 - Your business must be in 411 directory assistance to get approved.
1.6 - Your business credit identity (EIN), the tracking and how you get one.
1.7 - Why you must verify that all agencies listings are "exactly" the same.
Step 2 - Optimizing Your Banking, Assets and Revenue To Maximize Fundability

2.1 - Your bank accounts, a vital business credit building component.
2.2 - Identifying the business assets and availability for credit use.
2.3 - The business owners can play a key role in building business credit.
2.4 - Bank Visa and MasterCards that can be used as cash and that build credit.
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Step 3 - Getting Set Up With All Three Business Credit Reporting Agencies
3.1 - Dun & Bradstreet Business Credit Report.
3.2 - Experian Business Profile Report.
3.3 - Equifax Small Business Credit Report.
3.4 - Credit scores, what are excellent business credit scores.
Step 4 - Vendor Credit (Net 30 Day Accounts)

4.1 - The "Starter Set" of Net 30 Vendors.
4.2 - Vendors For Computers & Electronics.
4.3 - Vendors for Office Supplies, Marketing & Print.
4.4 - Vendors for Building & Industrial Supplies.
4.5 - Vendors Who Are Major Retail & Specialty Providers.
4.6 - A summary of your selected vendor accounts & applications.
Step 5 - National Revolving Credit Card Accounts

5.1 - The "Starter Set" of Revolving Credit Accounts.
5.2 - Revolving Accounts for Major Credit Card Providers.
5.3 - Revolving Accounts for Office Resources & Supplies.
5.4 - Revolving Accounts for Building & Decor Supplies.
5.5 - Revolving Accounts for Gas Stations & Fleet Management.
5.6 - Revolving Accounts for Major Retail & Specialty Providers.
5.7 - A summary of your selected revolving credit card accounts & applications.
Step 6 - One Bank Loan, Why It Is Very Important And Exactly How To Get It
6.1 - Bank rating, what is it and how to use it to your advantage.
6.2 - Unique funding programs that are available sources of business cash.
6.3 - Sources for finding personal cash that can be used in your business.
6.4 - Obtaining one bank business loan that reports to the credit agencies.
6.5 - Where to go to get the one bank loan that your business must have.
Let’s begin with Step 1 on the Next Page…
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1
Step
Step 1 – The Foundation

1.1 - Making Sure Your Business Is Ready To Build Business Credit.
1.5 - Your business must be in 411 directory assistance to get approved.
Step 1.1 - Setup Structure
Making Sure Your Business Is Ready To Build Business Credit

Throughout Step 1 we are going to cover the foundational issues. Let's begin with the name of your
business. Even if you are already incorporated or have been in business for a while, we need to
check to see if your business name conflicts with other established businesses or if it could
potentially cause Trademark infringement.
1. Dun and Bradstreet - Credit Name Search

Check to see if any businesses with the same or very similar names are listed with Dun and
Bradstreet (D&B). To use D&B's Find a Company search Click Here. Be sure you select
"Nationwide" on the "Select a State" drop-down. Your business name should not already be listed
with D&B and needs to be unique. The reason for that is you do not want your business always
having to explain "why it is not that other business with the same name".
2. Knowx.com - National Name Search

Check to make sure that your business name does not conflict with other businesses nationwide. To
do that you can use www.Knowx.com. They charge $65 for a national search but it is well worth it. If
you would rather not pay the $65 you can run a business name search yourself on each Secretary of
State's web site. Inside our business credit building system that free search is available.
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3. Trademark - Infringement Name Search
Check with the U.S. Trademark office to make sure that your business name will not cause
Trademark infringement. To do that for free please Click Here, then click on Search under "Get a
Trademark Registration..." From there, select New User Form Search to submit a query. You want
to find that your business name is free and clear. Doing this search on your own is a little
complicated, please be sure to read all the Trademark Office instructions.
4. Web Site Address - Domain Name Search (.com)

You need to verify that the domain URL (website address) for your business name is not currently
being used. To do that Click Here. You should purchase your business name URL (domain name) if
it is available as a ".com". For example if your business legal name is "The Truck Stop", then
"www.TheTruckStop.com needs to be available and you should secure it.
5. Web Listing - Online Directory Search

Finally, you need to search the online directories to see if your business is listed correctly, or even
listed at all. If your business shows-up, make sure all the information is correct. If it does not show-
up, then be sure to create a free business listing with the Superpages directory.
The rest of Step 1 is below and is fully detailed inside our business credit building system.
1.5 - Your business must be in 411 directory assistance to get approved (we submit it for you).
Now let’s address Step 2 on the Next Page…
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2
Step
Step 2 - Your Fundability

2.1 - Your bank accounts, a vital business credit building component.
Fund • a • bil • i • ty [ adj. Fuhnd-uh-bil-i-tee ] You won't find "Fundability" on Dictionary.com, so don't
bother looking. Fundability is a phrase we've coined to describe how a business measures up in relation
to the entire business lending and investing community. How fundable is your business?
Fundability is not just about your business credit. It includes several components that determine
how your overall business is seen by lenders, investors, insurers, suppliers, and more. Basically, we
know that your business was worth the risk for you, but is it worth the risk for them?
The answer will increasingly be "yes" as your business fundability grows.
So by improving the fundability of your business, our Business Credit Building System is doing more
than just helping you build strong business credit. We are improving the overall "health" of your
business while greatly increasing your ability to succeed now and in the future.
The major components of your Business Fundability are:
 Business Bank Accounts

 Business Assets
 Business Revenue
 The Owners
Step 2 is continued on the Next Page….
Step 2.1 - Bank Accounts
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It is vital that the way your business name is listed on your business bank account(s)
matches exactly with how your business name appears on your legal paperwork that has
been filed with the State. It must also match exactly with the business name that appears on
your Federal EIN paperwork.
IF IT DOES NOT MATCH, GET IT CORRECTED IMMEDIATELY!
All lenders determine the age of your business by the date you first opened your business
banking account. The date that appears on your Incorporation, LLC, or EIN paperwork is of no
concern to lenders or to the business credit agencies.
Everything in business lending and business credit starts from the day you open your
business bank account.
Your business banking history is vital to your future success of being able to secure business loans.
Lenders will look to see how long that relationship has been established, so once you get your
account established and/or corrected,
DO NOT MOVE BANKS. The longer your business banking history is, the better it is for your
business borrowing potential.
If you haven't already done so, now is the time to verify that the business names listed on your State,
Federal and Banking paperwork all match 100% and all have your business listed at the exact same
mailing address.
The rest of Step 2 is below and is fully detailed inside our business credit building system.
Let’s take a look at the Credit Agencies in Step 3 on the Next Page…
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3
Step
Step 3 - Credit Agencies

3.1 - Dun & Bradstreet Business Credit Report.
3.2 - Experian Business Profile Report.
3.3 - Equifax Small Business Credit Report.
3.4 - Credit scores, what are excellent business credit scores.
In Step 3, you are shown how to get your business credit files open with all three business credit
reporting agencies ... Dun & Bradstreet, Experian, and EquiFax.
Dun & Bradstreet is used by most vendors to extend lines of credit. Landlords use them to approve office
leases as well. Experian is used by many credit card companies and non-traditional business lenders.
EquiFax is called the "Small Business Financial Exchange" and is most important for cash lenders such
as banks.
The how-to instructions in this Step for getting set up "the right way" with each Business Credit Reporting
Agency are very clearly spelled out and the methods have been tested and proven by thousands of our
business members before you.
There are some confusing claims made by the business credit reporting agencies. For instance, Dun &
Bradstreet claims that you must pay them or your business file will never be opened. That is simply not
true. Your file will activate with them, it just will take a few reporting cycles. Equifax claims that they don't
allow business owners to purchase a copy of their reports. That is true, but we will show how to obtain a
copy of your EquiFax business report without purchasing it.
In Step 3 we wipe away all confusion about the Business Credit Reporting Agencies. Along with being
able to access all three of your business credit reports, you will have a much clearer understanding of the
business credit reporting process and you will know how your business credit scores are developed
when we are finished.
4
Step
Our business credit building system is data integrated with Experian Smart business credit reports. So
when you first login you will be able to see exactly where your company currently stands in the business
credit building process, and then be able to track your real-time progress as your business credit grows.
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Step 4 - Vendor Credit (Net 30)
4.1 - The "Starter Set" of Net 30 Vendors.
4.2 - Vendors For Computers & Electronics.
4.3 - Vendors for Office Supplies, Marketing & Print.
4.4 - Vendors for Building & Industrial Supplies.
4.5 - Vendors Who Are Major Retail & Specialty Providers.
4.6 - A summary of your selected vendor accounts & applications.
A vendor line of credit is when a company (vendor) extends a line of credit to your business on
"Net 30, 60 or 90" day terms. This means you can purchase their products or services up to a
maximum dollar amount and you have 30, 60 or 90 days to pay the bill in full. So if you purchase
$300 worth of goods today, then that $300 is due within the next 30 days.
The facts about vendor credit lines:
1. You can get products and services your business needs and defer the payment on those for 30
days, thereby easing cash flow. This is called "Net 30".
2. When your first Net 30 account reports your "trade line" to Dun & Bradstreet, the DUNS system
will automatically activate your file and your number if it isn't already.
3. Many of our vendors will open a Net 30 terms account for your company with as little as an EIN
number and a verified 411 listing.
4. There should be enough vendors to choose from so that if one or two of them insist on requiring
an active credit file first, you'll be able to move on to another.
5. Always apply first without using your SSN, some vendors will request it and some will even tell
you on the phone they have to have it. Submit first without it, with your EIN only.
6. Some vendors may ask you to place an initial prepaid order. If so, get that order out of the way
fast and move on to having a Net 30 account opened.
7. Remember that the goal here is to have at least five (5) Net 30 accounts opened and reporting,
not necessarily to have vendors that serve 100% of your business needs right now. Later, once
your scores are built, you can add better vendors as you may need them.
8. Pay your vendor accounts as close to Net 15 days as possible. The quicker you pay them the
better your business credit scores will be.
9. You must be patient and allow time for the vendors' reporting cycles to get into the
system and begin impacting your business credit scores. It typically takes three (3) cycles
of "Net" accounts reporting to build credit scores.
10. Remember we said from the very beginning that it takes 90 to 120 days to build business credit
scores. The credit reporting cycles are the main reason for that and it cannot be done faster.
Step 5 addresses Revolving Credit accounts on the Next Page…
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5
Step
Step 5 - Revolving Credit Accounts

5.1 - The "Starter Set" of Revolving Credit Accounts.
5.2 - Revolving Accounts for Major Credit Card Providers.
5.3 - Revolving Accounts for Office Resources & Supplies.
5.4 - Revolving Accounts for Building & Decor Supplies.
5.5 - Revolving Accounts for Gas Stations & Fleet Management.
5.6 - Revolving Accounts for Major Retail & Specialty Providers.
5.7 - A summary of your selected revolving credit card accounts & applications.
Having three (3) Revolving Business Credit Card accounts is key to building business credit.
For your business credit building success you need to obtain three (3) revolving business credit card
accounts. These accounts report to the business credit agencies in different ways and carry more weight
than the vendor credit that you select in Step 4.
A revolving credit account is simply one that allows you to pay a "minimum due" per month and not the
full outstanding balance. These accounts normally report to Experian and sometimes to D&B and
EquiFax. Because of how they report, these accounts will help build your business credit on a larger scale
than just the Net 30 day vendors alone.
If you haven't completed Steps 1 through 4 there is no point in starting Step 5.
Why? Because you will most likely get declined. These accounts will be checking to see that your
business credit foundation is set and that your business credit files are open. They may also check your
bank rating, look to see if you have some open vendor lines of credit and, in many cases, they will want to
see that your D&B file is open.
In this step it does not matter which Revolving Credit Card Accounts you open and make
purchases with. We have a great selection of companies offering products and services that are of value
6
to any and all businesses.
Step
9
Step 6 - Bank Credit
6.1 - Bank rating, what is it and how to use it to your advantage.
6.2 - Unique funding programs that are available sources of business cash.
6.3 - Sources for finding personal cash that can be used in your business.
6.4 - Obtaining one bank business loan that reports to the credit agencies.
6.5 - Where to go to get the one bank loan that your business must have.
Getting "Bank Credit" makes your business more credible in the eyes of almost all other lenders.
In Step 6, we will walk through what must be done to obtain some of the initial Bank Credit that will start
the reporting process for your business and place your business on all other lender’s radar.
As part of Bank Credit, in Step 6 we will be teaching you about the following:
Bank Ratings - a strong business bank account rating indicates your business has the ability to re-
pay loans, we will look at how banks rate your accounts.
Business Cash – We provide you with access to many unique funding programs that can bring
quick cash to your business.
Personal Cash - Here we show you some creative programs for accessing personal cash that can
then be used in your business.
One Bank Loan - We will detail why your business needs a bank loan that reports to the business
credit agencies, exactly how to go about obtaining it and which banks to go to.
Which Banks – We provide you with a detailed list of banks that our business members before you
have reported as successfully doing to one bank loan program and that we have verified report to the
business credit agencies. Many banks that offer business credit cards and business loans either do
not report to the business credit agencies or worse they only report on your personal credit.
Get the Help You Need to Get it Done Fast
10
Our system is the result of years of research on building strong business
credit scores the fastest possible way with EquiFax, D&B and Experian.
Let our system show you:
1. How to get set up with all three national business credit reporting agencies
without paying hundreds of dollars to do so.
2. How to get your first business bank loan that reports to the business credit
agencies and which banks will approve your business.
3. How to obtain five vendor lines of credit that report to the business
agencies and have hundreds of vendors to select from.
4. Where to get three business credit cards that report that are separate from
you personally and what are their approval requirements.
Our data will save you hundreds of hours of researching on your own and
we will make sure that you get it done the fastest possible way!
So Let’s Get Started!
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LENDER COMPLIANCE
a.) Your Business Needs To Be an Entity

The only way to completely separate your personal credit from your business's credit is
to have a legal business entity such as an Incorporation or LLC.
Action items for this step:
1. Set up a business entity or make sure your business entity is set up correctly.
2. Verify that your business’s legal name is not going to create any trademark
infringement.
3. Make sure your entity is "In Good Standing" and Foreign File your entity if required.
Why do you need a business entity to build business credit?
It is best to build business credit with an LLC or Corporation (S or C
Corporation). Creditors, Lenders, Trade Accounts, and so on prefer to see an actual
business entity. Furthermore filing and using a business entity to build business credit
can separate you personally from the liability of operating your business.
Unless you're required to operate as an LLP or other type of partnership (Medical
Practice, Law Firm, CPA, etc.), you should create a business entity. Your personal and
business credit can never be truly separated if you operate as a sole proprietorship or
partnership - everything you do remains "personal".
Don't be fooled! The business credit reporting agencies will let you build business
credit reports under a sole prop or partnership, but these are completely worthless as
everything you do under those is 100% personal which makes you personally liable for
every business debt. Don't do it.
a.a) Compliance Item - Must Have A Business Entity
Compliance Item Fix - Form An Entity
Haven't formed an LLC, C-Corp, or S-Corp for your business yet?
Protecting your personal credit and assets is just one of many reasons to operate your
company as a separate entity (LLC, C-Corp, S-Corp, etc.). Whether you're a single
owner-operator or a larger company with employees, it's the right decision. Get set up
easily with a corporate entity that best fits your needs.
a.b) Compliance Item - Business Name Trademark Infringement

Compliance Item Fix - Make Sure Business Name Does Not Trademark Infringe
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When you form your business entity in any State, they will have a "Name Availability
Check" for that State only. So, while the name for your business may be available in
Wyoming, Nevada, or Delaware, there may be a company already formed five or ten
years ago in some other State where that business has already trademarked the name.
This will create a trademark infringement on your part.
Unfortunately, if your business name is found to be trademark infringing at any point in
the future that will place all your brand building and business credit building in jeopardy.
You could receive a cease-and-desist letter that would force you to change your
business name. This can be easily avoided by simply taking a few minutes to check the
"TESS" database and make sure your business name does not create a potential
trademark infringement.
Check the TESS (Trademark Electronic Search System) database now.
a.c) Compliance Item - Foreign Corporation Filing
Compliance Item Fix - Doing Business in Your State
Foreign Corporation filing means that if you have created your Incorporation or LLC in a
business-friendly state such as Wyoming, Nevada, or Delaware and then your business
physical location is in another state such as Georgia, Ohio, or California then you need
to have filed a "Foreign Corporation Status" with the Secretary of State for your
business physical location.
Failure to have filed your Foreign Corporation Status can result in either being declined
for loans or having those loans delayed until your filing status has been corrected. It can
also result in fines and tax liens that could also impact your ability to receive funding.
Your Business Must Be At A USPS Listed Business Address
Having a USPS listed business address is an important component.
You can have a home-based business but it will limit your access to certain
lenders.
Building strong business credit and getting approved for financing is all about paying
attention to the details. We must have your exact business legal name. This includes
the recorded DBA filing you will be using. It is not required to have a DBA, but if
you need one (or already have one) there are potential issues to be aware of.
Filing DBAs for your Corporation or LLC can cause multiple credit files to open if you're
not careful. For example, say your business bank account is under "ABC Corporation"
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but you open a credit account as "ABC Corporation, dba ABC Tire Service", and you
have another credit account that you opened as just "ABC Tire Service".
What will happen in the above example is that your business ends up with three open
credit files under all three names...and now you have a mess. If you're going to use a
DBA you'll need to avoid creating duplicate credit files. All banking, utilities, offices
leases, credit accounts, etc. must be opened as "ABC Corporation dba ABC Tire
Service".
Business Address and Location:
History has shown lenders that home-based businesses default on their loans at a rate
of 10 to 20 times higher than that of physical business location businesses. What this
means is that if you put a residential address on any business loan or credit application
then you will be immediately tagged as a much higher risk of default and therefore much
more likely to be declined.
The address of your business needs to look like a business address. Do not use a post
office box. You can use your home address for business credit building but be
aware that some lenders will not fund "home-based" businesses. This will not stop you
from building business credit scores but may limit your funding options.
Our system is integrated with the USPS database. So the best way to know if the
address you are using will work or not is to test it. Put the address in and click "save and
continue". Then come back to this page. If the address shows "residential or mail stop"
it is something you will need to fix. If the address comes back as "business or
unknown", you are fine using that address for your business
b.a) Compliance Item - DO NOT USE MAIL STOPS (Box Rentals)
Compliance Item Warning - Using Mail Stop Addresses May Get You Declined
A Mail Stop is your local post office or postal type store that will rent you a mailbox
inside their store location. These types of addresses will show to lenders and credit
providers that your business is not real and maybe a very high risk of default. These are
NOT virtual offices and are services such as The UPS Store, FedEx Office, Postal
Annex, Postnet, and any other local name that might offer the same type of service,
Know that potential creditors will Google your stated business location and see these
storefronts are obviously not your business location. When your business address is
Google searched you want it to show as an office building, executive suite, or shared
workspace.
b.b) Compliance Item - USPS Listed Business Address
Compliance Item Fix - Having A USPS Business Listed Address
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To properly establish and build credit, your business needs a deliverable physical
address and not a PO Box. If you don't have an actual storefront or office location, you
can run your business from anywhere and still have a qualifying business address with
a Virtual Office Solution.
Business Phone and 411 Directory Listing
You need an FCC-listed business phone number. Not Cell or Home Listing.
We live in a credit history and analytics world where lenders look backward at trends
that have shown higher rates of default. What one of these trends has shown lenders is
that businesses that operate solely from cell phones have been 10 to 20 times more
likely to default. Therefore if you operate your business solely from cell phones then you
are going to get tagged as being a much higher risk of default and therefore much more
likely to be declined.
The perception lenders, vendors, and creditors have of your business are critical to your
ability to build strong business credit. This perception is why we highly
recommend that you have a business phone number listed under 411, and even an
"800" number. These items are important components of building your business credit
and boosting the perception of your business.
You must have a dedicated business phone number that is listed with 411 directory
assistance, under the business name. Do not use your home number or a cell number.
Lenders, vendors, creditors, and even insurance providers will verify that your business
is listed with 411. A toll-free number will give your business credibility, but you must
have a LOCAL business number for the listing with 411 directory assistance.
c.a) Compliance Item - Business Phone Number

Compliance Item Fix - FCC Listed Business Phone
How do potential lenders, vendors, and customers see you? It's easy and inexpensive
to set up a virtual local phone number in your area code or a toll-free 800 or 8** number
- We recommend setting up both.
If you already have a local number for your business, adding an "800" number can
greatly boost credibility and provide your customers easy access to your company.
Even if you're a single owner with a home-based business, a toll-free number provides
the perception that you are a real business.
If you need a business number to list in 411, you must get a Virtual Local Number with
your local area code, 800 toll-free numbers cannot be listed in your local 411 directory.
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Whether you're applying for financing with a lender or net credit terms with a vendor,
providing a cell or home phone number as your main business line could get you
"flagged" as an unestablished business that is too high of a risk. This means we DON'T
recommend giving a personal cell phone or residential phone as the business phone
number.
c.b) Compliance Item - Business Number in National 411 Directory
Compliance Item Fix - National 411 Business Listing
*** DO NOT USE A CELL PHONE NUMBER OR A RESIDENTIAL NUMBER FOR
THIS 411 LISTING ***
You have the option below to select Yes for your business name and phone number to
be submitted for listing with the national 411 directory. This is a courtesy service and we
cannot guarantee every submission because we are simply passing your information to
411 and then they list the information. Please do not enter a cell phone or home phone
number in the field provided. Only enter a business landline or a virtual number (VOIP
or local area code numbers from providers like Ring Central, etc.). Allow up to 2 weeks
for your phone number to show as listed. After selecting YES you'll need to click the
"Save & Continue" button for your information to be submitted to 411.
Another option to get your business phone number listed is to contact your local phone
carrier. Keep in mind that you'll need to have your phone service with them to get a
number listed.
A third option is to list your business with ListYourself.net. The service is free and has
been proven to be very effective to solve the 411 directory assistance listing.
Once you have submitted it, you need to verify the listing under 411. To do this dial
(Your Area Code)-555-1212 and then ask for the listing of your exact business legal
name. If possible, do not use a cell phone to check your listing!
In addition, since searching the internet is the number one tool used to locate a
business today, it’s crucial to make sure your business is listed on major online
business directories. While there are many popular online directories to get listed with
there are several key sites that play a role in the business credit building process.
Business Website and Professional Email Address
Your business needs a corporate website with professional email accounts.
Having a business website with professional email addresses is no longer just a
good business idea. Credit providers look at these as indicators that you have a
legitimate business.
Lenders and credit providers are constantly looking for ways to limit their exposure to
bad debt defaults. One way they are doing that today is with an analysis of your
website. When credit providers research your company on the internet, it is best if they
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learn everything they need to know about your business directly from your company
website.
Many business owners fail to see that not having a company website is hurting their
chances of obtaining multiple tradelines from various vendors. Social Media pages are
not enough for many creditors. Having a social media presence without a company
website is often an indicator that you are not a serious business owner and therefore
pose a much greater risk of default.
Don't Overlook the Need For a "Professional" Business Email Address
It's not only professional but increases your chances of getting approval from credit
providers. A great example is an email like support@yourcompany.com or
john.smith@yourcompany.com. If your business email address is
joesplumbing@gmail.com you are much more likely to get declined than if your email
was joe@joesplumbing.com. That is because in the past those businesses whose
emails end in a free email extension such as @gmail or @yahoo or @msn, or
@hotmail, etc. have defaulted 10 to 20 times more than those with professional emails.
Setting up a professional business email address is just too easy and inexpensive to
neglect and risk being declined over it.
d.a) Compliance Item - Business Domain & Professional Email
Compliance Item Fix - Business Domain and Professional Email
The Domain Search just below will check the availability of your domain name. If your
business name is already taken as a ".com" address try some variations of it, like .net or
.org. You can also try variations of the business name itself until you find an available
one.
d.b) Compliance Items - Business Website & Professional Email
Compliance Item Fix - Business Website & Professional Email Address
Federal EIN & Business Licenses: City, County, State
You need an Employer ID Number (EIN) for your business credit identity
You also need the proper licensing from your City, County, or State.
Whether you have employees or not, your business entity must have a Federal Tax ID
Number (EIN). Just like you have a Social Security Number, your business has an EIN.
Your Tax ID number is used to open your bank account and to build your business
credit profile. If you have an EIN, you may still need a new one if:
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1. Your business is subject to a bankruptcy proceeding.
2. You form a new corporation or change the corporate name.
3. You take in new partners and operate as a partnership.
4. You purchase, or inherit, and plan to operate an existing business.
Take the time to verify that all agencies, banks, and credit vendors have your business
listed with the same Tax ID number.
e.a) Compliance Item - Federal Employer Identification Number (EIN)
Compliance Item Fix - IRS Employer Identification Number (EIN)
To build business credit your business must have a Federal Employer
Identification Number (EIN). To obtain an EIN, or to determine if you need a new one,
you can do it yourself online or the incorporating service you used will normally do the
EIN filing for you.
e.b) Compliance Item - The Required Business or Professional Licenses
Compliance Item Fix - Make Sure That Your Business Has the Required Licenses
One of the most common mistakes when building credit for your company is non-
matching business addresses on your business licenses. Even worse is not having the
"required" licenses for your type of business to operate legally. You will need to contact
the State, County, and City Government offices to see if there are any required licenses
and permits to operate your type of business. You can contact them directly via phone
or search their websites to confirm if there are any required licenses or permits for your
type of business.
Example: You start up a business and operate it out of your house. In this instance,
some cities might require you to have a license, while other cities may not.
Your Business Bank Account Is When You Started
The business bank account must have the exact State and Federal filed name
The day your business bank account opens is the day that is considered as your
business started rather than just the day you filed it.
Decide which bank you want to open an account with and call or email them. Ask what
their specific requirements are for opening a business checking account. Generally,
most banks require a copy of your business certificate from the secretary of state, an
IRS document with your EIN on it, and sometimes your articles of incorporation.
The date you open your business bank account is the day that lenders consider your
business started. If you incorporated your business 10 years ago, but you just opened
the business bank account yesterday, then your business started yesterday.
f.a) Compliance Item - Business Bank Account
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Compliance Item Fix - Auditing Business Bank Account Details
Banking Name
The first step in establishing positive Bank Credit is to make sure that your business
name and mailing address, as listed on your business bank account(s), matches exactly
how your business name and address appear on your legal paperwork that has been
filed with the State. It must also match exactly with the name and address that appear
on any Federal EIN paperwork. If it does not match GET IT CORRECTED
IMMEDIATELY.
Banking History
Most lenders determine the age of your business by the date you first opened your
business banking account and not the date that appears on your Incorporation, LLC, or
EIN paperwork. The date you filed paperwork is of no concern to lenders, or the
business credit agencies. Everything in business lending and credit starts from the day
you open your business bank account.
Your business banking history is vital to your success in being able to secure larger
business loans. Lenders look to see how long that relationship has been established.
The longer your business banking history, the better your borrowing potential.
f.b) Merchant Credit Card Processing
Accept Credit Cards & Take Online/Mobile Payment
Most businesses can benefit from being able to accept credit cards as payment for their
products and services. The ability for your business to accept credit cards is now also a
key component in helping you to produce revenue. Click here for a service that claims
to offer everything merchant processing for free except the processing fees.
All Agency Listings Must Be Exactly The Same
Every agency and creditor must list your business the exact same way.
Now is the time to audit each one you're listed with to ensure their consistency.
You must confirm that every agency, creditor, supplier, and trade credit vendor has your
business listed the exact same way. You must be listed with the exact same spelling of
your business name and the exact same address and phone number.
For example, one might have you listed as "ABC, Inc.", while another has you as "AB
Consultants", and yet another as "AB Consultants, Inc". There are also simple
differences like those between "Suite 400", "# 400", and "Apt. 400". The differences are
important and they should be corrected where possible.
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Take the time to verify that these main agencies (State, IRS, Bank, and 411 national
directory) have your business listed the same way and with your Exact Legal Name.
Also take the time to ensure every bill you get (power bill, phone bill, landlord, etc.) has
the business name listed correctly and comes to the business address.
g.a) Compliance Item - All Agencies List Business Exactly The Same
Compliance Item Fix - Make Sure You Check Them All
The following agencies are vital to your business financing and business credit building
success:
1. Your State
2. Your County
3. Your City
4. The IRS
5. Your Bank
6. 411 Directory Assistance
h.) Getting Approved ... How Do Lenders View It?
How does your business get approved?
We will now address the major components that make up the components of
what lenders are looking for to approve your business.
This Step 2 Section includes several components that determine how your overall
business is seen by lenders, investors, insurers, suppliers, and more.
We know that your business was worth the risk for you, but is it worth the risk for them?
The answer will increasingly be "yes" as you complete the system.
It is very important that you complete this Step 2 Section and answer all the questions
as accurately as possible.
h.a) Compliance Item - Maintaining Accurate And Up-To-Date Accounting
Compliance Item Fix - Bookkeeping To Maintain Critical Records & Build Business
Credit
We could tell you it is important to keep good books because it makes getting loans
easier, saves you money on tax preparation, or because keeping good books protects
you from overcharges. However, the main reason you should keep good books is that
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IT IS THE LAW. The IRS requires you to use a record-keeping system that "clearly
shows your income and expenses." Anyone of the services below will provide you with
the results you need.
Have You Taken The Time To Plan Your Business?
Many lenders will require an SBA compliant business plan

They want to see a plan that clearly shows your business is viable, why it will
succeed, and that you have done your demographic analysis and planning.
Business plans are a test of whether you know what it will take for your business to
succeed over both the short and long term. More importantly, they need to be regarded
as "living" documents that even seasoned and profitable businesses should update and
keep current.
You might know everything about your product or service, but there are many cases
where you are going to need others to know as well. This is especially true when it
comes to dealing with banks, SBA lenders, and Investors. In these cases, they will all
require a solid business plan that clearly shows the viability of your business model and
that showcases your understanding of what it will take for it to succeed.
i.a) Compliance Item - Business Plan (For SBA & Bank Term Loans)
Compliance Item Fix - SBA Compliant Business Plan
A solid business plan will require that you gather the information that is pertinent to the
development and growth of your business, such as market size, target demographics,
industry data, and comps. It will also help you form the right questions like: What will it
take for market penetration? Is your business on the correct side of the street? Should I
hire employees or rely more on outsourcing? Click here for a service that offers a do-it-
yourself step-by-step system creating your SBA Complaint business plan.
Yes, the thought of putting together a comprehensive business plan can be
overwhelming. Fortunately, there are services that take your business ideas and
thoughts and put them into a tangible format that banking institutions and lenders
require. Even better, there is a solution provider who will offer credit terms for their
services and report your payment to the business credit agencies.
The following are key aspects that every business plan should include:
The Executive Summary - a 30-second pitch that summarizes your business.
2. Market Analysis - How big, the role you intend to play, and why.
3. Company Description - An overview of what the business will do and why it is viable.
4. Organization & Management - Do you have the experience and expertise it will take
to succeed.
5. Marketing & Sales - Where is this critical component coming from, in-house or out-
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sourced.
6. Service or Product Line - What exactly are you going to make, sell, or do.
7. Capitalization Requirements - How much money do you need and where will it come
from.
8. Financials - At least 24 months of looking forward numbers that can be industry and
market supported.
Using Assets Can Make Getting Approved Faster
Many more funding programs will open up as your business becomes bankable.
Your existing assets can act as collateral for obtaining new business credit accounts.
Financing and available credit based on assets can open many creative options.
There are funding programs based on certain types of revenue streams that can be
pledged as collateral. Other revenue streams can be sold outright for working capital.
To maximize your business credit you will need to have some working capital to make
down payments, initial purchases, etc.
j.a) Compliance Item - Uniform Commercial Code (UCC) Filing
Compliance Item Fix - UCC Filings May Encumber Existing & Future Assets
UCC filing is a legal notice a lender or other creditor files with the Secretary of State
when they have a security interest against you, your business, or a specific asset. It
gives notice that interest, or lien, against the asset is being used to secure the financing
or that there is a claim in place.
When lenders or new potential creditors check your business UCC filings they might
see tax liens, mechanic liens, list Pendens (lawsuits pending), judgments, or other
security interests claiming that money is owed.
Something very common for businesses having SBA or PPP loans is to see a "Blanket
UCC" filed against the business owner personally and the business as a whole. This
type of filing means that all current and future assets are considered to have liens
against them and therefore cannot be used as security for future loans until that Blanket
Lien has been removed.
It is always best to check your UCC filing before applying for any new business loans or
funding programs so that you do not get caught by surprise by something you didn't
know existed.
The Owners Personal Credit Can Play A Role
The business owners' personal credit can still play a critical role
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The ability to secure financing, especially during the initial stages, may depend
on personal credit
We know that one of the main reasons you are building business credit is to get away
from having all of the business financing tied personally to the business owners. The
good news is that you are well on your way to doing just that.
By building strong business credit scores you will be able to secure vendor lines of
credit, credit cards, vehicle leases, and many other types of business financing
using only your business credit. However, beyond that, there is still more to the
equation that many business credit building services don't want to talk about.
In business, an owner's personal credit scores can make a difference. Typically, 720 is
preferred for personal credit scores. If business owners (anyone owning 15% or more)
or officers of your company (CEO, President, CFO, etc.) that has personal credit scores
above 720, then more financing will become available at lower interest rates and a
much higher rate of approval.
k.a) The Facts About No Personal Guarantee "Cash Type" Business Loans
Let's look at the facts and not myths about "Corp Only" financing
Is Corp Only financing available? Of course, it is! How is it obtained?
When we are talking about "Cash Type" corp only financing for startup businesses, or a
business whose owners have poor personal credit, then some type of assets or security
will be needed. That can be receivables to the factor, revenue which can be leveraged,
401Ks to roll over, equipment to sale-leaseback, government contracts, purchase
orders, carryback notes, settlement streams, or other types of tangible securities which
can be pledged or attached. Those are just some of the ways that Cash Type corp only
financing gets done. Many more programs are available in this system.
Corp Only "unsecured cash financing" is also available to businesses by first
pre-qualifying for it. Typical qualifications are:
A comparable credit amount equal to or greater than the amount requested.
A minimum of 10 reporting tradelines that have at least a 1-year reporting history.
Minimum Bank Low 5 Rating (average daily balance of $10,000+ for 90 days).
All 20 items of Lender Compliance were completed as defined in this system.
$35,000 a month or more in gross revenue showing the ability to debt service.
At least 2 years in business history not just from the Corp filing date.
Filed tax returns and financial statements for at least the prior last full year.
The entity is in good standing with foreign corp, and business license requirements met.
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Less than 45% debt-to-income with no blanket UCC filings or lis pendens.
Less than 45% balance-to-limit on all outstanding revolving business debt.
Are other types of Corp Only Non-Cash financing available? Yes! There are so
many.
There are thousands of sources readily available for financing for products, services,
inventory, equipment, and another NON-CASH type financing. These come in the form
of net 30 payment terms, revolving credit lines, and specific brand-type credit cards
such as store and fleet cards. It is this type of financing that is most common for
business credit building and for which over 3,000 sources are available in this system.
Owners Personal Credit - Where Does It Need To Be?
Anyone who owns 20% or more of the business may be asked to sign personally
Previously we talked about having the owner's personal FICO 8 scores in the 720 or
higher range. While that is optimal, there is a spectrum of financial products that start in
the 640 FICO 8 range.
Business lending is not like personal lending therefore here are some things to
keep in mind:
Keep all revolving accounts (credit cards) below 45% balance to limit.
Maintain a maximum debt to income ratio of 45% or below at all times.
Minimize inquiries. Do not allow more than three (3) in any 90 days.
Try to acquire revolving accounts with limits of $5,000+. Higher is better.
Do not close old accounts. Having aged accounts is a lending bonus.
Clear off all collections, judgments, and charge-offs before applying.
Strive to get and maintain 720 or higher FICO 8 personal credit scores.
l.) Bank Ratings Are Important to Get Approved
Your business bank account rating is a key part of becoming bankable
Business bank ratings indicate the size of the loan your business has the ability
to debt service.
Your business bank account reflects how you manage your cash flow. Lenders want to
know that your business cash flow is capable of handling the business debt and
expenses consistently. Bank accounts with low average daily balances, or that show
NSF returned checks, can get your business loan applications declined.
Your "Bank Rating" is based on your average daily minimum balance over the last 3
months. Bank ratings cannot be created in less than 3 months and are what lenders use
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to determine your business's ability to do debt service. Having a "Low 3" bank rating will
indicate to a lender that at any point in the last 90 days your business had only $100 to
$300 available to pay any debts. Therefore if you are seeking a loan that requires a
$1,000 monthly payment then lenders will decline you as they can see you have shown
no ability to pay that debt. Lenders can check your bank rating in seconds.
l.a) Compliance Item - Minimum Low 5 Bank Rating
Compliance Item Fix - What Does A Low 5 Bank Rating Mean?
Bank Ratings Consist of Three Components...
1. The first component is your balance rating. This rating is your average minimum daily
balance maintained in your account over the last three (3) month period. Maintaining at
least $10,000 will rate as "Low 5", $5,000 rates as "Mid 4", $999 rates as "High 3", and
so on. You need to maintain a minimum "Low 5" bank rating ($10,000) for at least 3
months. Unfortunately, without at least a "low 5" rating, most lenders will assume your
business has little ability to repay.
2. The second component is the bank rating cycle which is three (3) months. You'll want
to have at least a "low 5" for the three months before applying for larger loans. This is to
show lenders that your business can do debt service. How much money you have gone
through your account each month does not matter. What does matter is how much is
available each day for the last 90 days to pay the debt?
3. The third and final component has to do with how you manage the account. NSF
(bounced) checks destroy bank ratings. From this point forward, NSF checks are
something you cannot allow.
Check your business banking general ledger checking account statements for the last
three months and look at your average daily bank account balance to be able to self-
calculate what lenders are seeing as your current "Bank Rating".
l.b) Where Lenders Check Your Bank Rating
In The Digital Age, Every Lender Can See Your Business Banking Activity
1. The Small Business Financial Exchange - sbfe.org The Small Business Financial
Exchange is the largest aggregation of small business payment and debt service data in
the US. Tens of thousands of business credit providers of all types share what they
know about your business.
2. Plaid - plaid.com Plaid provides a streamlined process so that business lenders can
access your banking data to help make their loan approval decisions. You let them
connect to your bank account to get approved for credit and then to auto-repay your
business loans.
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3. MX - mx.com MX gives lenders additional sources of information on your financial
behavior that goes beyond your credit scores. This helps them minimize their risk and at
the same time offer your business only financing based on your shown ability to debt
service.
The bottom line is that in today's digital age lenders and credit providers of all kinds can
instantly access data on your business banking activity. This means they can see how
much money has gone through your business bank account each day, month, year and
how much of that money stuck to you. Your monthly revenue and your average daily
bank balances have become an extremely critical part of your business getting
approved for no personal guarantee loans and credit lines. It is also the single most
important factor in your business showing its ability to debt service.
How To Get At Least A Low 5
If you don't have the $10,000 required for the low 5 rating, consider borrowing it from
friends or family. Maybe pull it off personal credit cards or out of the equity in your
home. If you borrow it from friends or family, explain to them you will not be "using" the
money, but that it will just be sitting in your business checking account. Tell them you
can return it to them in six (6) months. Maybe offer to pay interest. We will be looking at
other creative ways to get the money you need.
Don't Have $10,000? Don't Worry ... Bank ratings are separate from building business
credit and in no way affect your ability to build strong scores. So, if you don't have the
$10,000, or can't get access to the $10,000 to secure a Low 5 Bank Rating, it will have
no impact whatsoever on your ability to build strong business credit scores. However,
bank ratings can have an impact on your ability to secure larger cash-type business
loans and credit lines in the future. So, when your business starts making money
remember to keep your daily balance above $10,000 to maintain at least a Low 5
Rating.
M.) Obtaining Your First Bank Business Loan
Your first reporting bank business loan puts you on the lending radar
Just as soon as other credit providers see a reporting bank loan on your
business credit reports it signals to them that your business is for real.
Getting your first business loan from a bank can seem like an impossible task. The
majority of the business loan applications at banks get declined because banks won't
lend to just anybody ... or will they?
Having a bank loan can provide a powerful boost to building business credit fast. The
business bank loan needs to be in the exact name of your company. It should be under
your Federal EIN and report to the business credit agencies, specifically Equifax and
Experian.
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So how do we accomplish this? Under this Bank Loan Program, you will be securing a
business loan with a certificate of deposit (CD) at the bank that is extending the
business loan. You'll deposit into a CD account at an SBA preferred lending bank. Then,
you receive a business loan for 100% of the value of the CD.
This process works very well and works every time so long as your personal credit is at
least "ok". The bank is not basing your business loan on your personal credit, but if your
FICO scores are in the low 500 range they may not do this deal for you. If your scores
are low it is best to try smaller business banks and talk to an individual banker first.
So where does your deposit come from? We are not talking about a very large amount
of money. You can start with as little as $5,000. There are many creative ways to
acquire the money you need for the bank CD deposit: family, friends, savings, garage
sales, or any of the creative funding programs in the steps that follow.
m.a) Why A Secure Bank Loan?
The Features of a Secured Bank Loan
It will appear on your business credit report just like any other loan.
2. There will be no note in your file, or on your business credit reports, that show it as
"secured".
3. It will make your business credit report stand out to other lenders and creditors who
know how difficult it is to get a business bank loan.
m.b) Comparable Credit
The Importance Of Comparable Credit Cannot Be Overstated
Comparable credit simply means that someone has already loaned you an amount of
money that is close to or "comparable" to what you are now asking another lender to
lend to you. This is where the importance of this program comes in.
Let's do a "what if". What if, you borrowed personally say $25,000 from a credit union on
a three-year installment loan basis? Then, you took that same $25,000 and used it to
open a certificate of deposit with a business lending bank which in turn you used to
secure a $25,000 reporting business line of credit.
Here is what would happen. Other lenders would see that you had a $25,000 line of
credit with a bank that would make your business much more attractive to them and
lending offers would start coming in. Now when you want to finance that next $35,000
purchase you already have a reporting "comparable credit" making it much easier to get
approved.
There are also two huge upsides. First, most business lending banks will release the
certificate of deposit you used as security for the business line of credit after 12 to 18
months of payments being made on time or early. Second, you can then use that
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released CD money to pay off the credit union loan that will normally give your personal
credit scores a big boost.
A Helpful Suggestion
If you have to borrow the money you need for this step from Friends or Family, you can
assure them that they will get their money back. Here is how that works:
1. You borrow the money for the CD to secure the bank loan.
2. The bank then makes you a loan dollar for dollar.
3. Deposit the money from the loan/line of credit into a separate account and use it
exclusively to re-pay itself.
After the final payment, you can return their money with interest. Remember their
money is in a CD earning interest. This technique gives you a very large push towards
building excellent business credit scores and establishing comparable credit.
Not Able or Not Interested Right Now?
If you feel doing the Bank Loan Program is a premature step in the process for you, or if
you simply cannot find a business bank to do the CD program for you, don't worry. You
can still build your business credit without the CD-Secured bank loan, it just expedites
the process. You can always return to do this program later.
n.) Banks and Credit Unions Known To Do Secured Lending
The banks and credit unions on the list below are doing secured business lending.
Before you apply be sure to visit their website and talk to a loan officer about the
specifics of what they require.
n.a) Banks & Credit Unions Doing Secured Business Lending
Organizations Known To Do Secured Business Lending
The list below is not intended to be a complete list of those banks and credit unions
doing secured business lending. Most banks and credit unions that do business lending
will make secured business loans if you ask them, but they do not advertise that fact.
The organizations listed below are openly advertising their secured business lending
products making your time more effective and your approval more likely
Banks
Secured Term Loan from $25,000 to $250,000, up to 5 year
Bank of America
terms, and 3.5% interest rate.
Secured Term Loan from $100,000 to $3 million, up to 7 year
PNC Bank
terms, and WSJ Prime interest rate.
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Secured Line of Credit up to $1 million with interest only monthly
Union Bank
payments based on balance.
Secured Business Credit Card from $500 to $25,000 credit line,
Wells Fargo Bank
little to no business credit history.
Secured Business Credit Card from $2,000 to $100,000 credit
First National Bank
line. Security 110% of a credit line.
Secured Term Loan from $10,000 to $750,000, up to 7 year terms
Bank of the West
with variable interest rate.
Secured Term Loan from $50,000 to $1,000,000, up to 5 year
Banner Bank
terms with variable interest rate.
Secured Term Loan from $10,000 offering discounted rates for
Benton Bank
deposit secured term loans.
Secured Line of Credit from $10,000 up to $100,000, no interest
Fifth Third Bank
until draw money from the line.
Secured Line of Credit from $10,000 up to $500,000, interest only
Key Bank
options, renewable in 12 months.
Secured Line of Credit or Term Loan, fixed and variable rate
BB&T Bank
options, loans up to $500,000.
Secured Term Loan up to $250,000, approval decision normally
Bank of Nevada
within 2-3 business days.
Secured Line of Credit or Term Loan, from $2,500 up to
Alaska USA Bank
$250,000, one year renewable terms.
American Savings Secured Term Loan from $10,000 up to $250,000, 90% of cash
Bank asset, up to 5 year terms.
Secured Term Loan from $5,000 to $100,000, up to 5 year terms
IBC Bank
with fixed interest rate.
Secured Term Loan offering fixed and variable rates with flexible
Timberland Bank
payment length terms.
Secured Term Loan, up to 7 year term, up to $500,000, with fixed
Zions Bank
or variable interest rate.
Secured Line of Credit from $10,000 to $1 million, up to 5 year
City National Bank
terms, auto-payments.
Central Valley Secured Line of Credit or Term Loan, loans from $25.000 to
Community Bank $250,000, various terms.
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Secured Line of Credit or Term Loan, loans from $1.000 to
Woodforest Bank
$250,000, fixed rate, CD secured.
Secured Term Loan up to $100,000, up to 5 year term, and fixed
Lincoln 1st Bank
interest rate.
Secured Line of Credit or Term Loan, loans from $500 to
Apple Bank
$100,000, fixed rate, CD secured.
Credit Unions
Go Amplify Credit Secured Line of Credit or Term Loan, loans from $25,000 to $1
Union million, renewable every 24 months.
Secured Term Loan from $10,000 to $100,000, up to 7 year term,
Astera Credit Union
and 3.5% fixed interest rate.
Secured Business Credit Card from $1,000 to $25,000 credit line,
Metro Credit Union
$45 annual fee, CD secured.
Secured Line of Credit and Equipment Financing, various
SIU Credit Union
programs, must call for more info.
Hudson Valley Credit Secured Term Loan and Equipment Financing, up to 5 years
Union term, and fixed interest rate.
Mountain America Secured Line of Credit from $50,000 to $250,000, 2.0% to 2.5%
Credit Union over prime interest rate.
Secured Term Loan from $500 to $500,000, up to 5 term, 2%
VyStar Credit Union
over CD interest rate.
Michigan State Credit Secured Line of Credit or Term Loan, loans from $10,000 to $1
Union million, interest only payments.
Point West Credit Secured Term Loan from $10,000 to $500,000, 2.24 fixed interest
Union rate, CD share secured.
Secured Term Loan, up to 7 year term, up to $500,000, with fixed
Zeal Credit Union
or variable interest rate.
Secured Term Loan, up to 10 year term, up to $1 million, with
PSE Credit Union
fixed or variable interest rate.
Westerra Credit Secured Term Loan, up to 1 year term, up to $1 million, interest
Union rate 3% above CD rate
Secured Line of Credit do not disclose loan amount range, terms,
Volo Credit Union
or interest, must call
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OPTIMIZE REPORTING
Business Credit Agencies
Compliance Item - Having Business Credit Reports

Compliance Item Fix - The Business Credit Reporting Agencies
Experian is the most open and accessible. You can easily buy your report online and
there is no fee for setting up your file. Experian Smart Business Reports is used by
many credit card companies, vendors, non-traditional lenders, and banks.
Credit Safe is the largest Worldwide business credit reporting agency. Relatively new to
the U.S. market but already has over 10,000 credit providers utilizing their business
reports to make approval decisions. Critical to have yours up-to-date.
Equifax also allows business owners to purchase a copy of their reports online but is
typically the most difficult to establish a file with. This is because their requirements on
credit providers who would report your payment history are less open.
Dun & Bradstreet assigns businesses a D-U-N-S number. Along with some
conventional business lenders for underwriting, D&B is used by many vendors to
determine if they will extend your business net terms, and landlords use them to
approve office leases.
In this Step, we wipe away any confusion concerning the Business Credit Reporting
Agencies. Along with being able to access all three of your business credit reports, you
will have a much clearer understanding of the business credit reporting process,
including how your business credit scores are developed.
For example, personal credit scores range from 300 to 850 with scores of 720+
being considered excellent. Some of the business credit scores range from 0 to
100 with scores of 80+ being very strong. Our goal for your business is strong
business credit scores. Now let's make it happen.
Check Your Current Experian Business Credit Status
Optimizing business credit begins with knowing where your business is now.
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Experian Business Credit Free Search
The exact legal name of your business and the City/State need to be entered
below. The search returns:
Trade Lines - This indicates the number of reporting credit accounts that are currently
in your file. These are made up of; Vendors, Credit Cards, Banks, Leasing Companies,
etc., which show up as a "tradeline" that is reporting your payment history.
Credit Score - Experian typically opens your business credit file from public records.
So, once you Incorporate or form an LLC, Experian will pick that information up from
your Secretary of State records and open your file. Your business will develop a Credit
Score once trade lines begin reporting payment histories on your file and are aged a
few months.
Recent Inquiries - This displays as "Yes" when an outside party has checked your
business credit profile with Experian. If you see a "Yes" for Recent Inquiries, you'll want
to get access to your Experian business report to review it for accuracy.
Experian Smart Business Credit Reports
Experian Smart Business provides easy access to your business credit
At any time from your Dashboard view, you can check the "real-time" status of your
Experian profile. At this point, it's important to know if your business is at least listed
with Experian. Even more importantly, if you find that your company does have a file
with Experian Business, then you need to ensure the information is accurate.
Your Experian business credit report and score are most important if you are looking for
a bank loan, credit cards, or vehicle financing/leasing. Experian credit reports are
looked at by many revolving credit account issuers such as store and fleet credit cards.
On the prior page, you can check your Experian Credit Reporting status and also on the
left nav under "Check Business Status".
c.a) Compliance Item - Experian Business Credit Report
Compliance Item Fix - Your Experian Business Credit Report
If Your Business Is Listed...
If your company is listed with Experian, then your Experian business credit report is
available for you to review for accuracy. Since the main point is to build business credit,
purchasing the Business Credit Advantage plan makes the most sense. It not only
allows you to monitor your business credit profile 24/7, but it also provides unlimited
access to your up-to-date report and score, along with proactive email notifications
when any changes occur.
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If you find a listing for your company, but the data have inaccuracies or needs updating,
click the Fix It button below to make corrections to your Experian business credit profile.
If Your Business Is Not Listed...
If your company does not have a listing yet it is because you have no one reporting your
business payment history to Experian. Don't worry, your Experian business credit file
will open and begin to build as soon as a credit provider reports your first payment. We
provide access to those national accounts which will cause your Experian file to open
within the first reporting cycle (about 30 days).
Experian is an extremely valuable source for business credit because it receives the
majority of its reporting from commercial banks, equipment leasing companies,
revolving business credit card accounts, and many trade vendor lines of credit (Net 10,
15 & 30 accounts).
Creditsafe Business Reporting
Creditsafe Ratings & Credit Limits

The Creditsafe Rating measures your business’s ability to pay on time. It combines
variables such as trade payment information, public information, lender compliance, and
other performance indicators to predict the likelihood of your business default. Default is
defined as the likelihood your business will default (over 90 days past due) within the
next 12 months or that your business will go bankrupt.
The Creditsafe Rating scores businesses from 0 to 100 scale where a 70 or higher
score indicates a lower risk of default and a score of under 60 identifies your
business as a high risk of default.
Creditsafe also provides Credit Limit recommendations to lenders or vendors
considering extending your business financing. This limit is the total amount of credit
that should be outstanding at any one time.
Currently, Creditsafe is primarily used by landlords and service companies such as
alarm companies, internet providers, phone providers, which makes it still important to
develop their report and score.
d.a) Compliance Item - Creditsafe Business Credit Report
Compliance Item Fix - Checking Your Creditsafe Business Report
Your Creditsafe Business Credit Report & Score can be accessed by clicking the
button below.
The information you provided about your business such as; Legal Name, Address,
Business Phone, etc. will be used to pull up your Creditsafe file. If the information you
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have provided is not accurate then your Creditsafe file may not be found. Make sure the
information you have provided is accurate before accessing your Creditsafe file.
Equifax Small Business Financial Exchange
Now let's look at your Equifax Small Business credit report.
Currently, most U.S. banks report to Equifax on their business loans as well as most
business credit cards that are underwritten by banks. Therefore, by opening accounts
with many of the business credit cards in our system you will also be building your
Equifax small business credit score and profile.
Accessing Your Equifax Business Report
There is a good chance your credit profile will not be available. This is especially true if
your business is newer. It typically takes more time to create a file with Equifax Small
Business. This is why it's important to apply with the credit providers who report to
Equifax wherever possible. It is mostly banks and larger commercial lenders that report
to Equifax so if you have not had a bank or commercial loan you will most likely not
have an Equifax business report yet.
Equifax used to be the exclusive business credit reporting agency for all U.S. banks,
however, that is not the case anymore with many banks now using Experian business
credit reports. Equifax still has a large footprint in commercial bank lending, so it is
important to develop their report and score for your business if you intend to go after
bank-related lending.
E.a) Compliance Item - Equifax Small Business Credit Report
Compliance Item Fix - Checking Your Equifax Business Credit Report
To access your Equifax Small Business report you must call them at 1-800-727-
8495. Their online search has been disabled since March of 2020. On the phone, they
will let you know if your business report exists and provide you with a free copy.
Get a Free Copy
By phone... You can call 1-800-727-8495 to be mailed a free copy. If a business lender
or credit provider has checked your business credit with Equifax Commercial Reports
within the last 60 days they will mail a free copy of your Equifax commercial report.
Lenders will not pull your Equifax report without your authorization so you should know
exactly when a lender has requested it. Remember, it does not matter if you are
approved or declined, only that you applied for credit.
By mail... You can get a free copy of your Equifax commercial report, even if you
haven't applied for any type of business credit in the last 60 days, by simply mailing your
request to:
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Equifax Inc.
P.O. Box 740249
Atlanta, GA 30374-0249
Your request letter should say, please forward to me a copy of the available commercial
credit report for: and then provide the exact legal name of your business, your business
address, EIN, business phone number, and owner/officer name. Remember, if your
business is less than 1 year old and you haven't applied for any sort of business credit
yet, there is a good chance an Equifax Commercial file does not exist for your company.
However, even if you haven't applied for any type of business credit under your
company name but your company is more than 1 year old, Equifax may have a
commercial file for your business.
F.)Dun & Bradstreet Business Credit Reporting
Now let's tackle Dun & Bradstreet, careful they play hard
You need a D&B credit file number, or D-U-N-S #, whether your business has an
active file or not.
D&B compiles the most reporting data on Net-Terms trade credit and can be the
quickest profile to build. Obtaining a Dun and Bradstreet number (D-U-N-S #) begins the
process of building your business credit profile with them. Your D-U-N-S # will also play
an important role in enabling your business to borrow without a personal guarantor.
D & B credit profiles are mostly checked by vendors looking to issue your firm a line of
credit for their products and services or in the government contracting area. Bank-type
lenders and those lenders who will provide your business with cash loans or cash lines
of credit will rarely pull a D & B credit report on your business.
You need to run a search on your company. The search results show if your business
currently has a file with Dun & Bradstreet. Depending on your results, you'll want to
follow the applicable instructions below.
F.a) Compliance Item - Dun & Bradstreet Business Credit Report
Compliance Item Fix - Checking Your Dun & Bradstreet Report
If Your Company Shows Up...
If your company shows up, we recommend you sign-up for CreditSignal and here is
why:
Activates your D-U-N-S # and your file gets a D&B Rating. This is very important!
24/7 up-to-date access to your D&B credit file along with alerts of any changes to your
file.
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Immediate access to your D&B's PAYDEX score and Commercial Credit Score if
available.
Allows you to establish and enhance your Paydex® Score by adding your best credit
references. D&B will verify the credit reference for you and update your credit profile.
The most important thing, for now, is that you at least know your D-U-N-S number and
have an active file before setting up accounts and making purchases with any of the
reporting vendors in the Vendor Lines of Credit section that are not "Starter Vendors".
You can view and update your business profile at any time for no cost.
If Your Company Does Not Show Up...
If your company does not show up, then you'll want to establish your file and get a D-U-
N-S number a.s.a.p. You can go the free route and apply for a D-U-N-S number.
How Business Credit Scoring Works
Knowing what business credit scores are based on, gives you an advantage
G.a) Compliance Item - Know Your Business Credit Scores
Compliance Item Fix - What You Need to Know About Business Scores
Experian's Intelliscore Plus and FAQ's
the measurement for Experian's risk model is the Intelliscore Plus. Learn more about
their overall criteria for scoring and risk assessment. See the Intelliscore
Plus sample report. Experian also offers a wealth of free information covering just
about every aspect of business credit - from building and improving to scoring,
reporting, lending, and more. It's all categorized in an extensive FAQ.
Equifax's Small Business Credit Risk Score
Equifax is more secretive about what their commercial scoring model is based on.
However, it's safe to say a large portion of their risk model is based on making timely
payments (especially early payments) and keeping your profile free from any open
public records, collections, or excessive credit inquiries. The measurement for Equifax's
risk model is the Small Business Credit Risk Score. See a sample.
Dun & Bradstreet's Paydex Score
A business Paydex score is tied to your D&B business credit file. It is a statistical
measurement of your business’s creditworthiness based on reporting trade references
and business creditors. In simple terms, a Paydex score of 70 equates to a personal
FICO score of 700. You will need a Paydex score of at least 70 to qualify for most
business finance programs without requiring a personal guarantor. To reach your goal,
you will need to have at least five (5) trade references "reporting" to D&B that you pay
on time.
*** Special Note ***
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When you start applying for new vendor credit and new business credit card accounts
your credit scores will go down at first. This is due to the credit inquiries and because
the accounts are new. This is normal. Your business credit scores will rise as your good
payment histories begin to appear. You will need a minimum of 10 reporting trade lines
to optimize your scores.
Personal Credit Optimization For Business Lending
What business lenders are looking for in personal credit?
Business lenders look at a borrower from a much different viewpoint than do consumer
lenders. With consumer lenders (cars, furniture, homes, credit cards) credit decisions
are mostly about personal credit scores. Have a 720 or above and you are most likely
approved and are now just talking about the terms. Consumer lenders are therefore
primarily personal credit score driven while business lender credit decisions are much
more about what is in the business owner's credit report than simply just their scores.
When applying for a small business loan most small business lenders are looking at the
factors that are common to higher-risk borrowers and that therefore make up higher-risk
business loans.
Business Lending Risk Limiting Factors
Using the personal credit scores as a grading tool.
The types and makeup of the business owner's existing debt.
Current debt to limit ratios on existing revolving debt.
What the debt acceleration of the business owner has been.
The recent history of credit inquiries, their numbers, and types.
Is the credit identity in order and consistent across the reports?
Is there a clean paper trail on the percentage of business ownership?
H.a) Optimization Item - Getting Professional Help If You Need It
Optimization Item Fix - Professional Credit Reporting Services
Many times personal credit reports can have items that are inaccurate, incorrect,
misrepresented, or just simply do not belong to you. Studies have shown that as high as
one in every four personal credit reports contained inaccurate, incorrect, or simply items
in complete error.
An example is you went shopping over a week for a new car and the dealers failed to
tell you they were shot gunning your possible auto loan to multiple lenders. Now you
have one car loan, but 10 credit inquiries. Another might be that you had a $300,000
mortgage with an $80,000 balance which had a great positive impact on your credit
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score. But a new loan servicer took the loan over and after it reports as an $80,000 loan
with an $80,000 balance and your scores drop by 60 points due to the new high debt to
limit ratio.
If you find yourself in a situation such as one of these, it might be time to get some
professional help to make sure everything on your reports is accurate and belongs to
you. These services claim to provide such help:
Character risk factors, even if satisfied, may speak to a business lender about the
Character of the small business borrower that would tend to make a case for the loan
approval creating a higher risk of default loan. Whereat the same time, all a consumer
lender might see is a 720 score and approve the loan.
Business lenders are far more likely to look at and read the personal credit reports of
their small business borrowers than simply rely upon a personal credit score for their
approval decision. This is why, as a small business owner, you need to look at your
personal credit reports the same way these small business lenders do so that you can
optimize your reports before you apply.
FICO Scores As They Apply To Business Lending
FICO® small business scoring service

This is a business credit score that few if any, business owners have heard about or
know how it is calculated. It is mostly used by SBA Express and SBA 7A lenders so that
they can make approval decisions faster, maybe in a matter of hours rather than weeks
as is the case with many SBA loans.
FICO® Liquid Credit Decision Engine
Typically this scoring system is used for small business loans of $350,000 and below.
For small business lenders, it is still all about your degree of risk of default being very
low, low, moderate, or high. This FICO score ranges from 0 to 300 with just like your
personal FICO score the higher your score, the lower your risk of default. Whereas most
business lenders are looking for scores above 70 with your Experian, Equifax, Dun &
Bradstreet, and CreditSafe scores, with the FICO business scores the minimum
acceptable score is typically a 160.
One Major Difference
Just like the other business credit scores having a history of making your business
credit trade-line payments on time or early will help optimize this FICO score. And just
like your other business credit scores, it is very important that you establish a strong
positive business credit history to improve your score.
However ...
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This score is different because it is calculated by blending the personal credit of the
business owners and your business credit history. Your business can have a very
positive business credit history and scores, while at the same time if the business
owners have low FICO scores those will drag down this business FICO score. This is
only one of the reasons to optimize the personal credit of anyone owning 15% or more
of the business.
For the most part, if the FICO scores of anyone owning 15% or more of the business
are 720 and above then you are in favorable standing and considered a low personal
risk. To be considered a very low personal risk the business owners should strive to
obtain and maintain personal FICO scores of 760 and above.
Increasing Your Personal FICO Scores
There are many systems out there to instruct you on personal credit scoring and how to
raise your personal FICO scores, that is not the focus of this system. Here we focus on
what most business lenders want to see on the personal credit reports of the business
owners and not just on the scores. We recommend that you look at MyFICO Score
Booklet to see what factors play a role in your personal FICO scores.
Needless to say, if there are derogatory, late payments, inaccuracies, or other negative
items on the personal credit reports of the business owners you should strive to correct
those items to optimize the personal credit reports for business lending purposes.
The Types of Debt Business Lenders Care About
Being viewed by lenders as a low risk of default
The central theme of this system is to have your business be seen as having a low or
very low risk of default. As a startup business or a business that has not paid very close
attention to the details covered in this system, then most likely your business and
maybe you personally are seen as a high risk of default for a business loan.
Unlike consumer lending where the lenders rely very heavily on the FICO score,
business lenders very much care and look at the type of debt that the business owners
are personally carrying. So let's take a look at those and how business lenders see
them.
Business Lending Primary Concern Debt Type
The single largest weighted factor in business lending credit approvals is how the
business owners have handled their Revolving Debt. What is the debt to limits ratios
are they 20%, 50%, 80%? How fast has that debt been run-up? (called debt
acceleration) Did the business owners go from 20% debt to limit ratios to 80% debt to
limit ratios in only the last 60, 120, or 180 days? Do not estimate your revolving debt
amounts.
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Types of Personal Debt Business Lenders Care About
Revolving ...
This is probably the most important type of personal debt as far as lenders are
concerned. This most closely mirrors and reflects how you will make payments on your
business loans. Revolving debt which is credit cards and other refillable lines of credit
success HELOCs (home equity lines of credit) represent debt that you can use over and
over again. It is debt that can go up and down. And it is the type of debt that is most
likely the first to be defaulted upon because, for the most part, it is unsecured or at least
not viewed as critical to everyday living.
Installment ...
These are your car loans, your washer/dryer, your furniture, and typically items that you
have financed for your everyday living. For these types of loans, you are less likely to
default for fear of repossession and therefore these types of loans carry less weight on
how business lenders view your payment histories on them.
Mortgage ...
While owning a home and having a mortgage does tend to make you personally a more
stable borrower, most borrowers will default on everything else before they default on
their home. So here to business lenders do not place a lot of weight on how you pay
your mortgage. Mortgages typically only become a business lending concern if the
business owner has too many of them or is over-leveraged on a debt-to-income basis
on the mortgages.
Other Loans ...
These are loans such as student loans, non-security item installment loans (such as
crowdlending or credit union signature loans), or personally guaranteed business
loans. Typically, these loans do not play a major factor in business lending approval
decisions unless they show a pattern of late payments, defaults, or being over-
leveraged.
Of course business lenders, when looking at personal credit reports, will want to see
good payment histories across all types of personal debt. They will also want to see that
the business owner is not over-leveraged from a debt-to-income standpoint. And they
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will want to see a five-year or more responsible credit usage and payment history as it
applies to Revolving Debt.
If you want to optimize your personal credit reports for business lenders, manage
your revolving debt below 45% and keep all other types of debt within your
income means.
Debt Limit Ratios and Debt Acceleration

Debt To Income Ratio
In lending, you hear a lot about the Debt To Income ratio, or “DTI”. This is mostly used
in mortgage lending and is a term that is calculated by adding up all your monthly
liabilities (car payments, credit card payments, student loan payments, etc.) and dividing
that by your gross monthly income. This yields a percentage or ratio that is known as
your DTI. Your DTI must typically fall under 43% for you to qualify for a mortgage. Debt
to Income ratios will be looked at by many business lenders, but mostly just to watch for
you being over-leveraged or already have too much existing debt versus the income to
support it.
Debt to Limit Ratio
In business lending, an important ratio is your Debt to Limit ratio. This is calculated by
totaling all your existing revolving debt account balances (credit cards, credit lines,
HELOCs) and then dividing that by the total of all your existing available maximum
limits. For example, if you had three credit cards with balances of $3000, $4000, and
$5000 they would total $12,000 in existing revolving debt. Then if their maximum
available limits were $5000, $8000, and $6000 respectively, then your total available
maximum limit would be $19,000. This would make your Debt to Limit ratio 63%.
Business Lending Maximum Revolving Debt To Limit
For most business lenders the maximum Debt to Limit for Revolving accounts is 45% to
gain approvals. Anything over 45% is typically considered to be over-leveraged and
makes you a higher risk of default. To be considered as a very low risk of default
business owners should have their Debt to Limit ratios at no more than 19% if the goal
is to optimize the amount of the approvals. Do not estimate, you need to know your
exact debt to limit ratios.
There is a Debt to Limit Catch
Whereas your DTI is very much a team sport and by that, we mean all your monthly
payment obligations versus your gross income from all sources, Debt to Limit is more
an individual player sport. What this means is that business lenders want to see a
collective Debt to Limit of less than 45%, but they also want to see each singular
account at 45% or less.
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In the example above where we calculated the total Debt to Limit to be 63%, we did not
calculate the individual Debt to Limit ratios, those were; 60%, 50%, 83% respectively.
Before applying for business loans each of those would need to be brought below the
45% to pre-qualify and if the optimum amount of funding approval is sought then those
should individually be brought down to 19% or less. A good method for bringing those
down is to take out an installment loan (term loan the is not revolving) and pay down
those Debt to Limits before applying.
Debt Acceleration
In typical lending terms, debt acceleration would mean causing all future payments to
come due much sooner or maybe even immediately. That is not what business lenders
are looking at. Instead, they are looking at how fast did the existing debt of the business
owners take place. Did the business owners go from $5000 in revolving debt to $50,000
in revolving over the last 60 days? This sudden revolving debt increase, or debt
acceleration is going to be cause for a lender's concern and will definitely be seen as an
increase in the risk of future default. Therefore it is important for business owners to not
run up their credit cards or other types of revolving debt within the short period in
advance of seeking business financing.
Inquiries, Identity, & Ownership
Minimizing Credit Inquiries
In six months leading up to seeking business financing and preparing to submit
business loan applications, it is very important to minimize the personal credit inquiries
of the business owners. The optimal is to have no more than four personal credit
inquires of any kind within the prior six months before business loan applications are
submitted. Specifically, there should be no more than two what could be viewed as
revolving credit inquiries within that prior six months.
If possible there should be no personal credit inquiries of any kind within the 90 days
leading up to submitting business loan applications. When you do begin to submit
business loan applications do not do what is called "shot gunning" which is to submit to
a large number of lenders at the same time. While this may result in numerous
approvals it will also limit or stop and additional lending opportunities for at least six
months from that point forward and in many cases from a year from that point
forward.Business and Consumer Lending Not The Same
Business lending and consumer lending differ greatly in one significant way. Consumer
loans report nearly immediately upon approval whether they are used or not. Consumer
loans will report a zero balance and will report the approval maximum limit even if the
credit line is never accessed. Business loans and credit lines will only report when
accessed or used and then typically only report the amount used and not the total
maximum available limit.
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This means that when business lenders see credit inquiries from known business
lending types or organizations, they have no way of knowing if that application was
approved or declined or what amount may have been approved. Therefore, if they see
four or five of these types of inquiries within the prior six months of the business
application you have submitted to them, they can only assume that those prior
applications may have been approved and were most likely approved for a similar
amount requested from them. Do not guess about the number of inquiries or
identity.
This is the reason that business lenders will wait a minimum of six months before
considering the business loan application when they see these prior personal credit
inquiries in front of their application. They are waiting to see if these loans appear on
business credit reports in front of them. Most business lenders will assume that if the
loans do not appear on the business credit reports six months after the initial business
loan application, then those business loans were not approved or did not take place,
and are therefore not in front of their business loan.
Your Credit Identity
Before seeking any business loan, it is best to review your personal credit reports to
make sure your credit identity is in order. This means having accurate and the same
address information on all three reports. Is your name, current home address, prior
address history, employment history, birth date, and all other personal identification
information closely the same on all three reports. If not it is normally best to do both the
corrections online and via phone call to the agencies. Immediately produce any
supporting documents they may require such as a copy of driver's license, utility bills,
etc. to have the corrections made.
Then make sure your supporting documents which lenders will require also reflect the
same information. That personal identifying information on existing credit cards, driver's
license, utility bills, bank statements, etc. have also been reviewed and updated to not
create identity questions at the time of business loan application submissions.
Proof of Business Ownership
Just as you are reviewing and making sure your personal identity information is in order,
you need to do the same for your business information. Review your business entity
filings to make sure your personal information is listed on the corporate docs. The
business owner’s names should be referenced and easily accessible when business
lenders seek to verify what individuals own the business in question. Some States have
blind entity filings where only the names of the registered agents are visible to business
lenders. Most business lenders will want to have proof that the business owners
applying for the business loan are authorized to do so and authorized to obligate the
business for the loan.
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Think of these as housekeeping before applying for business loans. Simply making
things neat and clean for business lenders so there are not long delays in approving or
funding your applications.
Using Credit Partners To Access Capital

Credit Partners have been used in business lending for a long time.
In this case, we are applying it with a broader brush to include any business
venture.
Basically, it brings together a business owner with a partner who has good credit. A
good credit partner is someone who is willing to use their good credit to obtain financing
for the business venture. In most cases this type of arrangement works well to obtain
unsecured financing for the small business.
How A Credit Partner Works
The credit partner is a friend, family member, or someone who believes in the success
of the business plan. The credit partner is then made at least a 20% owner of the
business. The details of this and the repayment terms, if any, are 100% negotiable and
can be either temporary or permanent at your election.
The proper paperwork is done to amend the Incorporation or LLC articles and operating
agreement so as to document the agreement and the credit partner's good personal
credit is then used to obtain financing.
The financing is normally in the form of credit cards both business and personal. Credit
cards are the easiest form of financing to obtain based solely upon good personal
credit. In many cases up to about $150,000 can be obtained per credit partner. Multiple
credit partners can be brought in if more than $150,000 in financing is required as the
financing is per principal (credit partner) of the business and not per the business itself.
Authorized User
Once the business financing is obtained other principles in the business can be added
to the accounts as Authorized Users to allow for better access to the funds and tracking
as to how and who spent the funds.
Handling Personal Debt Used For Business Capital
Any time either you, a friend, a family member, or a credit partner uses personal debt as
a means of putting money into your business it is a very good idea to also document
that as a loan or debt to the business. This helps to be able to easily repay that debt
later if other lenders or investors come in without there being a question if it is an actual
business debt or not. You can do this by:
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Signing a debt instrument between the business and the person placing funds from their
own debt into the business.
Making sure that the debt is documented so that there can be no question that it was
used for the business and not personal.
Doing a formal UCC-1 filing so that the debt is showing to all new lenders and to the
business credit reporting agencies.
Consult with an attorney and a tax consultant to make sure the maximum protection is
in place for both parties as well as the maximum tax benefits.
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BUILDING CREDIT
Vendor Credit (Net 30 Day Accounts)

Optimizing Business Credit Requires Reporting Vendor Lines of Credit
A vendor line of credit is when a company (vendor) extends a line of credit to your
business on "Net 15, 30, 60 or 90" day terms. This means that you can purchase their
products or services up to a maximum dollar amount and you have15, 30, 60 or 90 days
to pay the bill in full. So if you're set-up on Net 30 terms and were to purchase $300
worth of goods today, then that $300 is due within the next 30 days.
Let's find your business at least five (5) vendor lines of credit for products and services
that add value, save cash flow and build business credit."
You are seeking to have at least 10 reporting trade lines. Check your credit history files.
If, for example, you already have 3 or 4 reporting trade lines then you will need 6 or 7
more from this Step. You are looking to get a TOTAL of at least 5 reporting Net-
payment-terms accounts before proceeding to Revolving Accounts in the next section.
a.b) Compliance Item - Must Have At Least 10 Reporting Trade Lines
The Facts About Vendor Credit
You can get products and services your business needs and defer the payment on
those for 30 days, thereby easing cash flow. This is called "Net 30".
When your Net 30 accounts report "trade lines" to Dun & Bradstreet, the DUNS system
will activate your file. This is true for Experian and Equifax.
Some vendors will approve your company for Net 30 payment terms upon verification
of as little as an EIN number and a 411 listing.
Always apply first without your SSN. Some vendors will request it and some will even
tell you on the phone they need to have it. Submit first without it.
Some vendors require an initial prepaid order before they can approve your business for
Net 30 terms or have minimum amount Net 30 orders.
You need a total of at least five (5) Net 30 trade lines reporting to Dun & Bradstreet,
Experian and Equifax. This can take more than 10 trade lines.
Use your Net 30 accounts each month, pay your Net 30 accounts in-full and pay them
at least 10 days early to get "Low Risk" credit scores.
You must allow for the vendors' reporting cycles to get into the reporting systems. It
takes 3 cycles of "Net" accounts reporting to build credit scores.
a.c) Using Tiers As A Guide For When To Apply
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Applying For Business Credit by Tiers
You Will Note These Net 30 Credit Providers Have a Tier Designation
The listed Tier designations are a general guideline only. You still need to place close
attention to the specific approval guidelines that are listed for each credit provider. Do
not apply with any credit provider without first reviewing their approval guidelines. Doing
so may get you declined.
Each Tier builds on the prior Tier meaning that the prerequisites for each Tier include
the prerequisites for the prior Tier.
Tier I Prerequisites Tier 2 Prerequisites Tier 3 Prerequisites Tier 4 Prerequisites
Lender Compliance 3+ D&B and Experian 5+ D&B and Experian 10+ D&B and
100% Trades Trades Experian Trades
DUNS Number $500+ High Trade $2,500+ High Trade $5,000+ High Trade
Established Line Line Line
D&B and Experian Paydex & Intelliscore 60+ Paydex & 80+ Paydex 76+
Info Correct Started Intelliscore Intelliscore
1+ Month Time In 3+ Months’ Time in 1+ Year Time In 2+ Years’ Time in
Business Business Business Business
Business Bank 3+ Months Banking
Mid 4+ Bank Rating Low 5+ Bank Rating
Account Open Activity
Next, you will have the option to access our highly researched database of reporting
vendors. Once you have access, you will be able to see what each vendor requires to
approve your business for credit before you apply.
b.) The "Starter Set" of Net 30 Vendors

Starter Vendors extend Net 30 Day payment terms to most businesses
The vendors on this page are the easiest to set-up with so we call them our Starter
Vendors. The remaining vendors in this step are displayed by category and not by
approval requirements. So it is critical you read the "Getting Approved" requirements for
each vendor that you wish to select and apply with.
You can always go back to a particular page and change your selections anytime. Be
sure to click the "Save & Continue" button at the bottom of each page for your
selections to save to your Dashboard. You'll get a summary of your selections on the
last page of this step and on the Dashboard. It's from this Selected Vendors page and
the Dashboard that you can apply for accounts.
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Instructions For Using Vendor Credit
Once you open an account with a vendor, you must consistently use it. For example,
when you receive a $500 Net 30 credit line, you must make purchases from that vendor
each month for a period of at least a year. You will build strong scores in as little as 120
days, but to fully optimize your credit profile you need to use the accounts longer.
What you should not do is make just one purchase in the first month, then another in
month four and another in month ten. You need to consistently use all your new credit
lines each month. Make purchases and then pay-off those purchases in full and on-time
every month!
These are the easiest accounts to get open and will approve almost any business.
Select at least three (3) of the Starter Vendors below before continuing on to select any
other vendors in Step 5. Begin with these Starter Vendors (at least 3) and wait until
you've been able to place an order and make a payment with them before applying with
the remaining vendors you've selected.
Please check the Starter Vendors you would like to do business with. Then click
"Save & Continue". A summary of your selected vendors will appear on the last
page of this Step and on your Dashboard.
c.) Vendors For Computers & Electronics
The Rules For A AVAILABLE – IN THE SOFTWARE
pplying With Vendors Are...
1. Always submit each application with your personal information left blank when
possible.
2. If any of the Vendors ask for a social security number, be sure to tell them you want
to try qualifying for credit terms based solely on your business information first.
3. You may still need to provide a personal guarantee (PG) with some of these
providers. Giving a PG is OK as it only affects the guarantor's personal credit in the
case of total default. A few late payments will not affect your personal credit, but you still
should not be late on payments!
The vendors below specialize in providing credit terms for computers, electronics
and hi-tech items. Select the ones you qualify for and want to apply with. Then click
"Save & Continue" at the bottom of the page. A summary of your selected vendors will
appear on the last page of this Step and on your Dashboard.
d.) Vendors for Office Supplies, Marketing & Print

These vendors give reporting credit lines for office supplies, marketing and print
solutions. Select the ones you qualify for and want to apply with. Then click "Save &
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Continue" at the bottom of the page. A summary of your selected vendors will appear
on the last page of this Step and on your Dashboard.
e.) Vendors for Building & Industrial Supplies

Here are vendors that give reporting credit lines for building and industrial
supplies. Select the ones you qualify for and want to apply with. Then click "Save &
Continue" at the bottom of the page. A summary of your selected vendors will appear on
the last page of this Step and on your Dashboard.
f.) Vendors for Major Retail and Fleet Cards

These vendors are major retail chains or specialty providers they all report only
on business credit. Select the ones you qualify for and want to apply with. Then click
"Save & Continue" at the bottom of the page. A summary of your selected vendors will
appear on the last page of this Step and on your Dashboard.
g.)Your Selected List of Sources for Vendor Credit
You've Selected Vendors...So Now What?
Below is a summary of the reporting vendors you have selected to apply with.
Remember, the goal is to obtain at least 10 reporting tradelines that will report your Net
payment history to the business credit agencies. Now it's time to simply open accounts
to place your first "orders" and then make your first payments at least 10 days early.
Begin With The Starter Vendors!
The vendor process needs to go in stages and the first stage should definitely be with
the Starter Vendors. This includes any vendors you may have opened accounts with
throughout Steps 1 and 2. Just make sure you begin with at least three (3) Starter
Vendors. You'll need to verify that your first payments with the Starter Vendors
show up on your business credit reports before applying with other vendors.
BUSINESS CREDIT CARDS

National Revolving Business Credit Cards
You Should Have At least 3 Revolving Credit Card Accounts That Report
A revolving credit account is one that allows you to pay a "minimum due" per month and
not the full balance. These accounts normally report to Experian and sometimes to D&B
and Equifax. Because of how they report, these accounts will build your business credit
on a larger scale than just the Net 30 day vendors alone.
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i.) The "Starter Set" of Revolving Credit Accounts
The Rules For Applying With Revolving Accounts Are...
Always submit each application with your personal SSN number information left blank.
If any of the revolving accounts ask for a social security number, be sure to tell them
you want to first try qualifying for credit terms based solely on your business
information.
You may need to provide a personal guarantee (PG) with some of these providers.
Giving a PG is OK as it only affects the guarantor's personal credit in the case of total
default. A few late payments will not affect your personal credit, but you still should not
be late on payments!
Check the revolving credit providers you would like an account with. Then click
"Save & Continue". Pay careful attention to their approval criteria before you
apply. A summary of your selected accounts will appear on the last page of this
Step and on your Dashboard.
K.) Revolving Accounts for Office Resources & Supplies

l.) Revolving Accounts for Building & Decor Supplies
m.) Revolving Accounts for Gas Stations & Fleet Management
n.) Revolving Accounts That Can Be Used As Cash
These are Tier 4 accounts that should not be applied for until your business
has 10 reporting tradelines with Experian, a Low 5 or higher Bank Rating, one or
more $10,000+ tradeline, and an Intelliscore of 76+.
AVAILABLE – IN THE SOFTWARE

Your Selected List of Revolving Credit Card Providers
Your Summary Of Selected Cards
Below is a summary of the reporting business credit cards that you have selected to
apply with. Remember, the goal here is to obtain a total of at least 3 business credit
cards that report your payment history to the business credit agencies.
That does not mean your business will get its ideal business credit cards to start, but
these cards will lead to strong business credit scores. Stronger scores mean more
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approvals with your ideal business credit card providers. You may have to apply with at
least 4 or 5 business credit cards to get the 3 reporting cards you need.
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ACCESS FUNDING
Funding Program Pre-Qualifications & Submissions

The system helps you to pre-qualify for many business funding programs
This page summarizes the Funding Program you are pre-qualified for now and those for
which you have submitted a funding request. Funding requests are not formal
applications. They are sent to a funding advisor for pre-qualification review to insure
pre-approval before submission to lenders and to make sure you have any questions
answered before submission for funding.
Click on the "Access Funding Programs" on the left hand navigation to see all your available
funding programs and to get instructions for how to pre-qualify for each program.
The icon symbols on the left nav indicate if you pre-qualify for a funding with the Green
Plus Sign +, it you do not yet pre-qualify for the program with the Red Minus Sign -,
and if you have already submitted for the program with the Black Bank Symbol.
Your Pre-Qualified Funding Programs: Funding Programs You Have Submitted:
Receivable Factoring
Revenue Based Loan
Equipment Financing
SBA Business Loan
Business Credit Cards
Unsecured Financing
Credit Union Loans
Merchant Advance
B.) BUSINESS CREDIT CARDS- FUNDING

PROGRAM
Business Credit Cards
Business credit that start-ups and any owner with good credit can get.
Business Credit Cards that are not just a personal credit card with business name on it.
These cards report to the business credit agencies and not on you personally.
Multiple owners or principles can apply and be approved creating more cashflow.
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$25,000 to $200,000 funding is per owner or principle and not just per the business.
C.)CREDIT UNION LOANS- FUNDING PROGRAM
Credit Union Loans
These are working capital loans typically funded in days from $5,000 up to $35,000.
The lenders are local with each lender having their own lending and credit
requirements.
Credit score driven only for approval and can be funded per principal of the business.
The funds can be used for working capital, inventory, supplies, furniture, and
equipment.
They are relatively easy to obtain when compared to traditional bank business loans.
D.)EQUIPMENT FINANCING – FUNDING PROGRAM
Equipment Financing
Equipment lease financing greatly conserves cash flow.
Fast approval is usually within 1 to 2 business days.
Down payment is low typically only 1 or 2 payments upfront.
Leases under $150k usually do not require financials.
Lease payments can be 100% tax deductible check with your CPA.
Equipment does not become obsolete because you don't own it.
Provides a huge boost to building business credit scores.
E.) MERCHANT ADVANCE – FUNDING PROGRAM
Merchant Advance
Funding is based upon your monthly merchant account receipts.
Approval within 24 hours and access to cash line in as little as 3 to 4 days.
No restrictions on how you use the cash, and no closing costs.
Good personal credit or business credit is NOT required.
No fixed payment, you pay a little on each new credit card swipe.
Need to have at least $10,000/month in merchant account receipts.
F.) RECEIVABLE FACTORING – FUNDING PROGRAM
Merchant Advance
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Funding is based upon your monthly merchant account receipts.
Approval within 24 hours and access to cash line in as little as 3 to 4 days.
No restrictions on how you use the cash, and no closing costs.
Good personal credit or business credit is NOT required.
No fixed payment, you pay a little on each new credit card swipe.
Need to have at least $10,000/month in merchant account receipts.
G.)REVENUE BASED LOAN – FUNDING PROGRAM

Revenue Based Loan
Must average at least $10,000 in gross monthly revenue.
Need to have been in business for at least 6 months.
Anyone owning at least 20% with 550+ Fico can sign.
Funded amount is typically 10% of gross annual revenue.
48-72 hour approval in most instances. Funding in 2-3 weeks.
Repayment via M-F ACH from business bank account.
Excludes real estate investment and mortgage companies
H.)SBA BUSINESS LOAN- FUNDING PROGRAM
SBA Business Loan
Many of these lines report positively to your business credit profile.
This line of credit comes with low interest rates and generous payback terms.
There are no restrictions on the cash, so it is available to use in your business.
During the proposal process credit is not pulled. Only "soft inquiries" are performed.
Not credit score driven for approval and are based much more on the business itself.
No Prepayment Penalties or Balloon Payments – Pay the Loan off anytime.
I.) UNSECURED FINANCING – FUNDING PROGRAM
Unsecured Financing
Quick application and approval process. Revolving lines with cash-out option.
Multiple Principles or Owners of the company can be funded individually.
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Typical funding results are $25,000 - $200,000 per principle or owner.
Applicant needs FICO-8 scores of 700 or above with all 3 credit bureaus.
Applicant's debt to credit limits need to be under 50% (utilization of revolving debt).
Applicant must have 3 or less inquiries on each bureau over the past 6 months.
No bankruptcies, judgments, liens or open collection accounts showing.
J.)401K SLF INVESTMENT- FUNDING PROGRAM
401K Self Investment
Launch your business or franchise with no debt while securing significant tax benefits.
Use up to 100% of retirement funds or use a portion as a down payment on an SBA
loan.
Combine your retirement funds with the retirement funds of a business partner or
spouse.
Save thousands in interest fees and protect your personal credit.
Invest profits tax-deferred back into your business or pension plan.
Lower business overhead while aggressively growing your retirement account.
You do not meet one or more of the following requirements. To qualify for this funding
program, you need:
Your total value of IRA and/or 401K accounts to exceed $25,000.
K.) BUSINESS TERM LOAN – FUNDING PROGRAM

Business Term Loan
Aggregate totals of $50,000 to $500,000 in Business Term Loans.
This line of credit comes with low interest rates and generous payback terms.
There are no restrictions on the cash, so it is available to use in your business.
During the proposal process credit is not pulled. Only "soft inquiries".
Personal credit scores of the business owners need to be at least 680.
program, you need:
 A guarantor with 20% or more ownership to have 700+ True Credit
scores.
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L.) EQUIP SALE LEASEBACK – FUNDING PROGRAM
Equip Sale Leaseback
Get immediate cash by leveraging your Business Equipment.
The equipment stays on your property for your use.
You can write off 100% of the monthly payments.
No restrictions on how the money is used.
Take idle equity out of equipment and use it for working capital.
program, you need:
 To currently own equipment with a value of at least $25,000.
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INCREASE EXPOSURE
Your Business SEO & Social Media Footprint

Your Business SEO & Social Media Footprint.
SEO Placement
Consumers will research online before they buy. A strong organic presence gives your
business the best opportunity to be found first when potential customers actively look for
your product or service.
Social Media Optimization
Over 80% of online consumers prefer to follow businesses and brands on Facebook,
and nearly all top brands throughout the United States have an active Facebook page
today. Why? Returning customers equals recurring revenue.
Improving Link Authority
Optimize business profile listings that support and improve your business profile adding
credibility while providing more ways for you to be found online.
Detailed Keyword Analysis
By increasing your keyword rankings, you're increasing your traffic potential. Increasing
traffic gives you more lead opportunities. And more leads are more chances to convert
those leads into revenue for your business.
Improving Reputation
The more citations your business has the better your social proof and the higher your
rank will be in the local search results with more likely to be visited.
a.a) Online Credibility - Your Web Presence Score
What Does Your Web Presence Score Say About Your Business?
Business leaders are constantly looking for new methods and analytics that will show
them which businesses are at a higher risk of failure and therefore of defaulting on their
loans. One of those new methods is to analyze your business web presence. Google
now provides lender's computers with easy access to a mountain of data about the
online presence of your business. They can quickly see everything about your SEO,
social media, reputation, star ratings, mobile friendliness of your website, backlinks,
broken links, page errors, and more.
Many lenders are now factoring your business web presence into their underwriting
system to determine if your Web Presence Score is low which would indicate a higher
risk of business failure. The SEO, Social Rating Scan provided here will analyze your
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business web score. Your goal should be to score a 70 or higher. After you run your
scan, and then know your web presence score, you can use the services below to help
you fix it if necessary.
A.b) Build More Revenue through Better SEO & Social Media
Business Success Item Fix - SEO & Social Media
It stands to reason that the more customers you attract and the more that engage or
buy from you, the more revenue your business will generate and the more successful it
will become. These SEO & Social Media specialists can help you do that.
Optimize Your Local Search Directory & GPS Map Listings
Complete, Correct, or Fix Your Local Search & GPS Map Listings.
Location Management
If your business has one or multiple locations, you need to make sure each can be
found and is correctly listed in all local search directories.
Improve Your Star Ratings
It is incredibly important to stay focused on increasing the number of positive reviews
your business receives and making sure you have 4 or higher star ratings on Google,
Facebook, Yelp, and many other less popular review sites.
Respond Quickly
A major key to customer satisfaction and having a good online representation is making
time to review and respond to customer needs, feedback, ratings, and reviews promptly.
Monitor Interactions
Getting immediate notifications when a customer leaves a review, star rating, or social
media comment can be vital to keeping everything moving in a positive direction and
attracting new customers.
b.a) NAP Validation - Name, Address, Phone
Many Lenders Are Now Looking At Your NAP Validation
In the age of extremely fast computer searches another tool many lenders are using to
help determine a high risk of default is called NAP Validation. NAP stands for Name,
Address, Phone and is simply an online search to verify that your online business
listings have your company name, address, and phone number listed consistently.
The lender's underwriting system will compute that if you did not care enough about
your business to make sure that your customers could find you, on almost any local
search, then your business is at a much higher risk of failure and therefore of defaulting
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on their loan. Use the Local Directory Scan tool to determine your NAP Validation and
then use the services below to fix it if necessary
b.b) Maximize Local Traffic - Complete, Correct, or Fix Local Listings
Business Success Item Fix - Local Search and Reputation Management
A major part of your business success can be attributed to how new customers find you
online and what they see when they do find you. Click here for a listing of 50 local
directories to do the submissions yourself or visit any of these providers to learn more
about completing and correcting your local search listings and optimizing your reviews
and star ratings.
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MAXIMIZE EARNINGS
Seller's Discretionary Earnings (SDE) Valuation Tracking

Small businesses can typically sell for a multiple of 2 to 5 times SDE.
The valuation of your business starts with establishing your “Seller’s Discretionary
Earnings” (SDE). You may hear about a valuation method based
upon EBITDA (earnings before interest, taxes, depreciation, and amortization). This
valuation method is typically for businesses worth $5 million or more. For small
businesses, SDE is a good valuation estimating tool.
SDE is calculated by adding the salary, payroll taxes, health benefits, retirement
benefits, and financial perks of the Owner(s). And then also adding the depreciation,
amortization, and nonrecurring expenses to the net income stated on the profit and loss
statement or preferably the tax returns. By adding these items back to the financial
statement, it gives the new buyer a good idea of how much income they can expect
when taking over the business.
70% of the small businesses on the market at any given time are selling for less than
$200,000 with a multiple of 3 times (or less) SDE. That is just sad. It means you have
worked hard for years and earned less than $75,000 a year doing so. That is the
definition of a business on the "Path to Nowhere". Let's get your business on the
"Success Path" and pump up its value.
Our goal is to have your business reach an SDE of $100,000 or more and get to a 4 or
even a 5 multiple. With your membership to this Business Success System, you will be
getting alerts to optimize 12 key elements of your business that will make your business
more attractive to potential buyers and which are enhancements to your business that
transfer to the new buyer.
Compare the current value of your business to your target goal value. Now use all the
resources in this Business Success System to increase your fundability and your
revenue so that you can maximize your SDE. We believe with all 12 elements of your
Business Success being optimized that the value of your business and its' attraction to
buyers will be maximized as well.
Get your business off the "Path to Nowhere" and onto the "Success Path" to create
the maximum value for your business!
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Update your estimated SDE Valuation at least once a quarter to make sure you are
making progress towards your future Business Success Goal Valuation. Doing the work
today is what creates the greatest value Tomorrow.
Plan To Sell For Your Highest Value
Most businesses owners never plan for their exit and it costs them dearly.
If you were a "House Flipper" would you invest hundreds of thousands of dollars and a
great amount of time & effort only to just walk away from the house and never sell it?
Well, that is exactly what over half of "Business Owners" do.
We created this business success system in the hopes of helping every business owner
capitalize on their very valuable asset, your business! Think of this system as a guide
for staging a house for sale. You wouldn't try to sell it with peeling paint, dirty carpets,
and dead grass. No! To get your highest sale price, you would clean it, paint it,
landscape it, put in new fixtures, and decorate it. So why would your business be any
different?
Our business success system has 12 Key Elements. These are the staging items for
your business. Having them all completed and optimized creates a higher value for your
business and attracts many more qualified buyers.
Let's do a little money math ...

If your business is producing $75,000 a year in SDE and you have not completed or
optimized all 12 Key Elements, you will be lucky to get a 2X SDE value for your
business if you can find a buyer at all. This business is nothing more than a long-hour
low paying job that not too many qualified buyers will be interested in. Even worse the
banks will have no interest in financing it so the buyer will have to come in either all
cash or you will have to provide seller financing.
Now your business has created $125,000 a year in SDE and you have completed and
optimized all 12 Key Elements. These elements stay with the business and make your
business very attractive to both qualified buyers and banks to finance the sale. Now you
can command a 4X SDE multiple and have a sale value of $500,000.
For most people being able to sell your business for $500,000 or more is a life-
changing event. Maybe the best thing about it is that now you know how to do it so you
can go do it again and again.
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With our Business Success System, you can become a "Serial Entrepreneur" who
creates and sells high valued businesses over and over.
How & Why Business Owners Exit
Selling for the wrong reason or the wrong terms has a huge financial impact.
To maximize the value of your business and to get the most out of your exit there are a
few things you, as a business owner, should pay attention to first. Two of the most
important things are "Why To Sell" and "When To Sell".
Let's take a look at the top 10 most common reasons business owners sell ...
Retirement
Burnout
Boredom
Family (Divorce)
Health (Major)
Partner Disputes
Declining Revenue
Industry Changes
New Opportunity
Lifestyle Change
Notice anything wrong with this list? Do you think most business owners are
selling at the RIGHT TIME or the WRONG TIME? We call it "Selling at the bottom
of the wave" instead of selling at the top.
As with anything else in life if you want to get the most money for your business then
you need to complete and optimize all 12 Key Success Elements and consider selling
when your business is riding high rather than when you and it are on the way down.
Selling at the top can mean hundreds of thousands of dollars more for you, many more
attracted qualified buyers, better bank financing terms for the buyers, and hopefully no
seller carry-back financing from you. You walk away with cash and a lot more of it
.
Now let's look at how most businesses are sold...
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Fortunately for those business owners who have invested the time and resources to
create a business worth buying, the market for finding qualified buyers is very good.
Banks are doing favorable financing deals for quality businesses being sold to qualified
buyers.
What does that mean for you? It means that if you take the time and invest in the
resources to complete and optimize all 12 Key Success Elements you will have a
business that is very attractive to qualified buyers and you are very likely to walk away
from the escrow with all cash and no seller carry-back financing or earn-out. The graph
below shows the heavy trend towards all-cash sale transactions.
So what have we learned about why and how to sell?

Selling your business on its way up will produce a lot more money in your pocket.
Completing & optimizing all 12 Key Success Elements equals more money.
Doing both the above attracts many more qualified buyers with better financing.
Selling at the top means banks will finance more for your potential new buyers.
Closing for all cash means the money is yours and you can walk away clean.
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BONUS SECTIONS
Search Over 3,000 Vendor Lines of Credit

This database allows you to find the products and services your business needs. Then it
lets you know what each vendor requires to approve your business for Net 30 day credit
payment terms
This searchable vendor database contains credit line providers for every product and
service imaginable.
To access this database you must have been in the business finance and credit system
for at least 60 days, have at least 3 reporting trade-lines, and have completed Steps 1
through 6 of the system.
Never apply with more than one vendor at a time or you will risk getting all applications
declined.
Please select the type of vendor you are seeking (product or service) & where:
B.) Educational Library - eBook’s
Book 1 - How to Prepare & Present a Successful Business Funding Request
This workbook is designed to ask questions about your business, the industry you are
in, what are your gross and net margins, and to help you create realistic revenue
projections that lenders or investors can believe. It will let you see what different lenders
need to approve your funding request. If you want to fund your business, this workbook
is a great place to start.
Book 2 - How to Build Your Business Credit Scores ... Fast
What is Business Credit? Who reports it? What difference does it make? What are the
three major agencies? What is a bank rating? What is Lender Compliance? What is
vendor credit, why is it vital, and how do I get approved for it? Are there business credit
cards available that won't show up on my personal credit? How long does it take to build
business credit scores? These questions and more are answered in this workbook.
Book 3 - The Art and Science of Obtaining Venture or Angel Investor Capital
Every year thousands of business owners will waste valuable time chasing after
Venture Capital or Angel Investors when they had no clue even where to start. The
workbook lets you see if your business or idea is of investment quality. It provides step-
by-step instructions on what to do to position your business to best attract investment
capital. If you want to get an investment in your business, then this is a good place to
start.
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Book 4 - Start A Business - Where to Begin and How To Grow
Education is what you get going to school. Experience is what you get mostly by making
mistakes. This workbook is what they don't teach in business school. It covers those
things that all business owners wish they had known before they made those mistakes
and many of those mistakes will cost you a lot of money. Get your business started right
and hopefully you will not have to correct all those mistakes later.
Book 5 - Personal Credit - A Guide to Excellent Personal Credit Scores
Can You Restore Your Good Credit? Yes! The information provided in this workbook is
designed to help you fix reporting errors and remove inaccuracies on your credit report
file. It can also help you clean up the items that are "questionable." There is much more
to restore your good credit than just removing the negative items. In this workbook, we
discuss the proper way not only to remove negative items, but also how to convert
negatives into positives, how to build good credit items, and how to improve your credit
scores by knowing exactly what goes into the scores.
C.) Educational Library – Video- Click On Each To Play
* Lender Compliance
A quick tour of Lender Compliance items that if left uncompleted can result in your
business loans and credit applications being declined.
Https://bcbcs.org/bonus/pl-lender-compliance.mp4
* Reporting Trade Lines
From a business credit perspective, you should strive to have at least 10 reporting
trade-lines on your business credit reports. Of the 10-reporting trade-lines, you acquire
5 of those should be vendors offering products or services your business needs on Net
Payment terms.
Https://bcbcs.org/bonus/PL-Vendor-Search.mp4
* Business Credit Scores
Business credit scores now play a major role in business financing and have become
the determining factor in how much your business gets approved for, what interest rate
you pay, and what length of payment term you receive.
Https://bcbcs.org/bonus/pl-business-credit-agencies.mp4
86
* Becoming Bankable
When your business becomes bankable that means you have separated personal credit
from business credit and established a business entity that can stand on its' own for
financing.
Https://bcbcs.org/bonus/bankable-business.mp4
* Pre-Qualify For Funding
These funding products service about 90% of the business financing needs of small
business owners nationwide and these programs have the highest percentage of
closing.
Https://bcbcs.org/bonus/prequalvideo.mp4
* Local Search Directories
Over 70% of consumers who did a local search visited found businesses "near them".
The term "near me" added to searches means not only will your business show up in
their search, but they are very likely to show up at your business.
Https://bcbcs.org/bonus/localsearch.mp4
* Search Engine Placement
Keyword research can make all the difference in your business’s success. Prospects
typically are not searching for simple one or two words. Better than 70% of the time your
prospects are searching for very specific and that requires four words or more.
Https://bcbcs.org/bonus/seovideo.mp4
* Reviews & Star Ratings
Why reviews are so meaningful? Ask yourself, would you rather eat at a two-star
restaurant or a four-star? Would you drive a mile or more further to get to the four-star?
It is the ultimate form of peer pressure. What others think matters.
Https://bcbcs.org/bonus/reviews-ratings.mp4
* Social Media Engagement
Facebook alone has over 1.5 billion users per month. That makes it a place that your
business should have a successful strategy for. The three most popular social media
sites are Facebook, Instagram, and Twitter. Each site has its ways for its users to
express appreciation for individual posts and in this case your business.
Https://bcbcs.org/bonus/socialmedia.mp4
* The Three Paths
The bridge is out path - 50% of businesses fail in 5 years which can lead to a loss of
savings, credit, assets, & relationships. The Path to Nowhere - 90% of business owners
only create a long-hour low paying job that when they stop is worth nothing. The
87
Success Path - Build strong business credit, increase financing opportunities, optimize
marketing and maximize owner earnings.
Https://bcbcs.org/bonus/smallbusinessversion.mp4
* Owner's Fundability
All too often business owners do not pay attention to their personal credit scores. Then,
when it comes time to need business financing, they are unable to get approved due to
their low personal credit scores
Https://bcbcs.org/bonus/pl-owners-credit.mp4
* Funding Range Report
The Funding Range Report tool allows you to run a completely free soft credit pull
without entering any credit card information and without creating any credit inquiry on
your reports. It will show you how to leverage your personal credit to your company’s
best advantage. It is going to show you where your company stands for multiple
business funding programs and how much you expect to receive from each.
Https://bcbcs.org/bonus/fundingrangereport.mp4
* Business Credit Building Tutorial
Why building strong business credit scores, that are separate from you personally has
become more important than ever.
Https://bcbcs.org/bonus/pl-build-business-credit.mp4
* Vendor Credit Lines Tutorial
What getting approved for reporting vendor lines of credit means to your business and
how it helps secure other business financings.
Https://bcbcs.org/bonus/pl-vendor-credit.mp4
* 4 Levels of Business Financing Tutorial
Just like most tables, business financing also has 4 legs or levels that it stands on.
Knowing and optimizing each level is critical to gaining business loan and credit
approvals.
Https://bcbcs.org/bonus/pl-levels-of-financing.mp4
* Traditional Business Financing Tutorial
A review of traditional business financing programs and what they are based upon.
Https://bcbcs.org/bonus/pl-traditional-financing.mp4
* Business Credit Cards Tutorial
There are 3 different types of business cards that are reviewed in this instructional
video.
Https://bcbcs.org/bonus/pl-business-credit-cards.mp4
88
*Alternative Business Financing Tutorial
The change in the financial markets has caused the business lending community to
create several new alternative small business financing programs. Those are reviewed
here.
Https://bcbcs.org/bonus/pl-alternative-financing.mp4
* 401K Business Self-Investment Tutorial

The use of 401k and IRA investments to fund new small businesses has become
increasingly popular and is discussed here.
Https://bcbcs.org/bonus/pl-401k-rollover.mp4
* Unsecured Business Financing Tutorial
Using the personal credit of the business owners to obtain unsecured business credit
from credit unions and banks where the funding is per principal of the business and
what each principal's credit must look like to get these programs approved.
Https://bcbcs.org/bonus/pl-unsecured-business-financing.mp4
89
How To Prepare and Present a Successful Business
Funding Request
EVERY BUSINESS NEEDS CAPITAL
Successful businesses are well planned and well capitalized. Being well capitalized
means having the ability to access capital when your business needs it. Being well
planned is the first step towards being well capitalized.
The Cost of Capital
I have watched many entrepreneurs lose valuable opportunities because they thought
the cost of capital was too high. They spent too much time negotiating over the cost of
the money, while their window of opportunity closed. The cost of capital should only be
a consideration of the function of losses sustained by not having it. Simply put, if it costs
you one dollar in order to
make two, are you ahead or behind?
What this workbook will do for you
The objectives of this book are to help you

• Analyze your market, the competition, and your financials,
• Identify your strengths, weaknesses, and strategies,
• Establish how much money you will need and when,
• Determine the type of capital you will most likely qualify for,
• Define what information you need to present to Lenders or Investors,
• Package your request for your best chance of success,
• Establish the format and flow of your presentation,
• Direct you to the Funding Sources that offer exactly what you need,
(If you don't know where to send your request, what is the point of all this?)
90
Libraries and bookstores are full of financial "How To Books" and I highly recommend
you read as many as you can. These books will tell you about generic sources of
capital, debt versus equity financing, business planning, goal setting, etc. This book will
brush on these topics, but they are not the main focus.
While there is no new technology discovered here, the methods are proven and you will
benefit from them only if you apply them. This ebook is designed as a workbook so get
out your pencil and answer each question as you go. Each chapter will guide you by
asking you section related questions and giving you some clues about the answers.
When you have completed this workbook you will be able to use the sections, the
questions, and your answers to construct your request for business capital. Then this
book gives you the format for packaging your request, additional information you will
need to have ready and where to find potential funding sources.
The difference between failure and success

90% of all new businesses fail. I believe that is a direct result of the failure to plan.
Please take the time to plan and complete this workbook, it will greatly increase your
chances of success.
Business Credit
If you haven’t already done so, you need to build strong business credit scores with all
three national business credit reporting agencies; Experian Smart Business Reports,
Dun & Bradstreet, and the Equifax Small Business Financial Exchange. Your business
is viewed as an entity by lenders and investors, and they will want to see that entity is
responsible in who it handles its creditors. Having strong business credit scores is now
a vital component for being able to get your business funded, don’t take it for granted
or you will most likely get declined.
91
To build strong business credit scores your business must have 5 vendor credit lines,
3 business credit cards, and 1 bank loan that all report to the business credit reporting
agencies and that are not tied to you personally.
BUSINESS FUNDING - LESS THAN 3% FIND IT ... WHY?
A 2003 government study of U.S. small businesses showed that out of 15.7 million
business loan applications, 97% were declined. Why? Because, every lender has
underwriting approval guidelines that may include as many as 20 items and you have
no idea what even 1 of them are. Let’s look at a few …
Did you know that lenders will decline your application if they can’t find your business
legal name in 411 directory assistance? You may be declined if your bank account
balance is below a low 5, what is that? You are most likely declined if you don’t have 5
trade credit accounts that report to the credit agencies. You’re declined if you don’t
have a credit file number. The lender may require two years in business where “in
business” was defined as the length of time your business bank account had been
open. They might require your business credit score to be 70 or above. They may
require your debt coverage ratio to be 5 to 1 or your FICO score to be above 680. You
could be declined because your business is in the wrong industry. And then there are
more, etc, etc, etc.
The reasons businesses can't find funding are:
• They don't know where to look for the "right" funding source.
• They don't know how to pre-qualify before they apply.
• They don't know how to successfully present their request.
• They don't know that "miss just one thing" and they will hear NO.
• They don't know that "shot gunning" will kill their chances.
• They never take the time to build a good business credit rating.
• They don’t separate their personal credit from their business credit.
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Shot Gunning will kill even a great deal, and here is why!
"Shot Gunning" is sending your deal to multiple lenders at the same time without pre-
qualifying before you apply. Some lenders say "NO" because they don't do the type of
funding you want or your deal doesn't meet their exact funding criteria. The rest say
"NO", even though they would
have done your deal, because no lender wants to be third, fourth, or fifth in line.
So how do you successfully fund your business? You must ...
• Know the funding source's exact criteria for providing funding before you apply.
• Know what your request needs to have in it and what it "doesn't".
• Build a good business credit rating with all three business credit agencies.
Finding business funding is an exact science and not something you just do in your
spare time. I strongly recommend that you do your research before you submit your
first application. After just three (3) failed applications, all other funding sources will not
want to do your deal because they will think there is something wrong with it. By
submitting multiple failed applications, you will damage your credit and may destroy
your ability to ever receive business funding.
There are only two ways to obtain business financing:
• One is by using your social security number and your personal FICO score to
personally secure every business loan.
• The other is to use your business credit rating and get financing without having
to personally guarantee every loan.
There are over 500,000 vendors in the U.S. that will extend trade credit to your
business. But there are only 5,000 that will report your business credit history to the
credit reporting agencies. Make sure you do business with vendors who report.
93
There are over 500 business credit card providers in the U.S., but there are only 60
that will even consider approving you without using your personal credit score and then
forcing you to personally guarantee the debt. That is not a business credit card. That is
a credit card with your business name on it and there is a very big difference. Before
you apply for a business credit card ask them if they report to the business credit
agencies. If not, then go elsewhere.
"The man who believes he needs help from no one,

quickly learns he has a fool for a partner.”
94
I. PLAN FOR SUCCESS
Capitalizing your business is a full time endeavor. Developing your business plan is the
single most important step you can take toward your success. To maximize your
potential to receive capital, it is vital that you develop a business plan that will guide
your company and allow outsiders to picture where you are going and how you plan to
get there. Take great care in preparing your plan, it is the road map that will lead you
where you want to go.
Lenders or Investors, which way do I go? They tend to look at transactions from very
different perspectives. Lenders are mostly concerned with "Can you repay?" While
investors are more interested in "How far can you go?" There are certain items of
information common to both.
That information will be disclosed at the start.
Executive Summary
This is it! Grab them here and you may never lose them. This summary is an overview
description of your product or service, its market, your niche, the management, the
mission, company structure, pro forma highlights, funding request, use of funds and
proposed terms.
Your executive summary belongs at the front of your funding proposal and/or business
plan and covers all the highlights of your proposal. This summary is what opens the
door. Get it right, they come in and want to know more. Get it wrong, they will go no
further.
95
Your executive summary should be no more than two pages, sell the sizzle not the
steak.
"Business is the art of extracting money from another

person's pocket without resorting to violence."
96
EXECUTIVE SUMMARY WORK SECTION
Give a brief yet concise explanation of the following items. Remember, you will fully
detail and
support each of these later on in your plan, so keep it short.
Desired Amount: _______________________________________________
Desired Terms: _______________________________________________
Company Name: _______________________________________________
Industry Type: _______________________________________________
Time in Business: _______________________________________________
Principals: _______________________________________________
Use of Funds: _______________________________________________
Collateral Offered: _______________________________________________
Narrative
This can be called the elevator pitch. It should quickly and clearly define what your
company
does and it should take less than twenty seconds to do so.
History
97
Your reader needs a summary of how this venture came to be. Where did the idea
come from? How did it evolve? Who is responsible? Be concise; give dates,
background, etc. Paint a
short picture from how you started, to where you are today.
98
Mission Statement
One sentence defining what the Company is all about. Think about it and "make it mean
something". Don't just write a bunch of flowery words.
Stage
Clearly identify what stage of funding you are at. Is your business a start-up, initial
growth, positioning for going public, seeking a strategic partner, looking for near future
acquisition or sale?
Market Niche
It is important for any funding source to know where you fit in the economic food chain.
What niche is your business exploiting that will make it jump over your competition?
What are you doing that is better, faster, or newer than what everyone else is doing?
For this part you must be very detailed. Remember the investors know nothing about
your business. You must prove to them you know what you are doing or want to do.
Market Research
This is yours or a third party’s research that supports your determination that there is a
market and a need for your product or service. This will form the back bone of support
for the price points and revenue assumptions contained in your pro forma projections
indicating to investors or lenders how your company can turn a substantial profit.
Financial Overview
Here is where you briefly highlight, graph and preview your outstanding financial
projections. This provides a glimpse into where your gross sales, net income, net worth,
etc. should be in years one, two and three. Remember this is only an overview. It should
contain no details or support information. That will come later in your financial pro forma
section.
99
II. THE PLAYERS
Funding Sources want to know with whom they are dealing.
Personal Experience
Lenders and Investors are both concerned with whether or not you have what it takes to
be successful. Highlight information that demonstrates you have the ability to make this
business a success. Detail your education, past successes or failures that made you
stronger. Indicate how you started this business and why it will be a success.
Character
Who are you? Take a deep look inside. Character is not only about winning. It's about
getting up again and again when you've been knocked down. Will you panic in a crisis?
Will you run for cover when things get rough? Are you honest? Do you have integrity?
Staying Power
To be a successful entrepreneur you must not only be able to start well, but you have to
be able to finish strong. For most, running a business is a hard road and not an easy
one. Search your soul. If you don't have this kind of character, do yourself and others a
favor and don't even start.
Management
Are you a stand alone player, or are there others helping you? If alone, do you plan to
keep it that way? Who will comprise your management team? Give detailed resumes of
all those involved, along with a description of the vital roles they will play in the
business' success. If your management team is weak, take on the task of building it up
in order to support your own success, as well as the success of your funding request.
Third Party Professionals

Listen to "GOOD" advice, and forget "BAD" counsel. Carefully seek out and select
professionals who can help you. Do your homework in advance of your need to avoid
100
delays. These legal, financial, tax, marketing, etc., professionals may be willing to
advise your company for in exchange equity before you have the money to pay them.
Survivorship
What plans have you made to ensure your business will continue to survive without
you? Have you trained someone to take over? Is there going to be key man insurance
in place for the possibility of illness, disability or death? Without you, can the business
continue to survive?
Describe how your management team will be able to execute the plan.
Board of Directors
An experienced Board of Directors is invaluable. They should be seasoned business
executives with knowledge and contacts to help you. Most will serve in exchange for
equity if they believe in your plan. Seek them out from within your industry and
industries that are your target market. Building a solid Board of Directors should occur
before seeking capital.
"Being a good entrepreneur is not knowing everything,

it’s knowing where to find everything.”
101
III. STRATEGIC POSITION
Assume that your reader knows nothing. Even if you know they are experts, remember
that the Lenders or Investors want to see that you know more about the industry and
your market than
they do.
Market Overview
• General industry definition

• Current size and demand
• Potential target market
• Potential market growth
• Market share of competitors
• Technical evaluation of industry
• Direction of industry
• Current condition of industry
Market Approach
• Initial plan to obtain a market share

• Resources available or allocated to market penetration
• Clearly defined long range market strategy
• Support assumptions on ability to hold market share
Market Analysis
Who are the customers?

Percentage of Business
Private sector ___________________
Wholesalers ___________________
102
Retailers ___________________
Government ___________________
Other ___________________
We will target customers by:
Product lines or services ___________________

Geographic area ___________________
Sales ___________________
Feasibility
Have you analyzed how successful your product or service can be?
What is the total potential market? Is there really a market for you?
Does your company have the strength to get the job done?
Let outsiders know why this will work and be able to support what you believe in!
Product Protection
What measures have you taken or will you take to insure the proprietary nature of your
product?
Patents Copyrights
Trade Secrets Proprietary
103
Contracts
“Business is like an automobile.

It won't run by itself, except downhill."
Product or Service Analysis
If your product or service is of a proprietary nature, take steps to protect it. Have a non-
disclosure/non-circumvent agreement for partners or investors to sign. Keep it simple. If
it is too long or contains too many legal words, no one will sign it. What is your
product/service and what does it do?
What advantages does our product/service have over those of the competition?
What are the unique features, patents, expertise, etc.? What disadvantages does your
product or service have? Where will you get your materials and supplies?
Outside Factors
List the important economic factors that will affect your product or service. Consider
things such as country growth, industry health, economic trends, rising prices, etc.
What are the legal factors that will affect your market?
What are the government factors?
What factors, that you cannot control, will affect your market?
104
Commercial Viability
Look for outside opinions on the commercial prospects of your product or service. There
are numerous low cost or no cost organizations, such as retired executives or small
business network groups to run your ideas by.
105
IV. MARKET STRATEGY
If you don't know where you are going and how you will get there, you are already lost.
Market Position
What kind of image do you have?
Inexpensive ___________________
Exclusive ___________________
Customer service oriented ___________________
High quality ___________________
Convenience ___________________
Fast ___________________
List the features you will emphasize:
What pricing strategy will you use?
% Markup on cost ___________________

Competitive ___________________
Below competition ___________________
Premium price ___________________
Are your prices in line with your image?
What profit margin percentage have you allowed for?
106
What customer services will you provide? What are your sales/credit terms?
Advertising/Promotion
Write a short paragraph that best describes your business:
107
What advertising/promotion sources will you use?
Television ___________________
Radio ___________________
Direct mail ___________________
Internet ___________________
Search Engines ___________________
Magazines ___________________
Newspaper ___________________
Personal contacts ___________________
Trade associations ___________________
Yellow Pages ___________________
Other, describe:
What are the reasons you consider the chosen media to be the most effective?
What features will you promote?
Applications ___________________
Price ___________________
Performance ___________________
Delivery ___________________
Reputation ___________________
Service ___________________
Exclusive ___________________
Components ___________________
Colors ___________________
Sizes ___________________
108
Uses ___________________
Rugged ___________________
Design ___________________
Availability ___________________
Installation ___________________
Terms ___________________
Workmanship ___________________
Other, describe:
What rationale will you appeal to?
Accurate Performance ___________________

Increased Profits ___________________
Economy of Purchase ___________________
Increased Production ___________________
Durability ___________________
Labor Saving ___________________
Economy of Use ___________________
Time Saving ___________________
Simple Construction ___________________
Simple Operation ___________________
Ease of Repair ___________________
Ease of Installation ___________________
Space Saving ___________________
Other, describe:
What buying motive hot buttons will you use?
109
Bigger Savings ___________________
Increased Sales ___________________
Greater Profits ___________________
Reduced Cost ___________________
Time Saved ___________________
Prestige ___________________
Greater Convenience ___________________
Uniform Production ___________________
Economy of Use ___________________
Reduced Upkeep ___________________
Continuous Output ___________________
Leadership ___________________
Ease of Use ___________________
Reduced Inventory ___________________
Low Operating Cost ___________________
Simplicity ___________________
Reduced Waste ___________________
Long Life ___________________
Other, describe:
What emotional responses can you use to your benefit?
Pride of Appearance ___________________

Pride of Ownership ___________________
Desire for Prestige ___________________
Desire for Security ___________________
Desire for Recognition ___________________
Desire to Imitate ___________________
Desire to be Unique ___________________
110
Desire for Variety ___________________
Fear ___________________
Desire to Create ___________________
Convenience ___________________
Curiosity ___________________
Other, describe:
Initial Market Penetration
How long will it take?
What capital resources will be required to acquire the initial market share?
"Doing business without advertising is like winking at a girl in the dark,

you know what you’re doing, but nobody else does."
111
V. SETTING GOALS
Having your short and long term goals set to paper is one attribute of all successful
entrepreneurs.
Benchmarks/Milestones
These are critical development stages the company has to meet. Without these visible
and obtainable milestones your company and your investors may lose their way. What
are the first ten priority items to be accomplished as soon as your company gets the
money? How long should it take to complete them?
Priority Time
1. _____________________________________ __________
2. _____________________________________ __________
3. _____________________________________ __________
4. _____________________________________ __________
5. _____________________________________ __________
6. _____________________________________ __________
7. _____________________________________ __________
8. _____________________________________ __________
9. _____________________________________ __________
10. _____________________________________ __________
Short Term
Near future…One year success points. Define the projected success levels that must be
obtained in order to allow your pro forma to come true. Set to paper obtainable goals
that will show your investors how you plan to keep the company on track.
112
Long Term
Lenders/Investors don't have your company vision. Here is where you must paint a
picture of the future for them. This is the word version that supports what your pro forma
has projected will take place over the next five years.
Exit Strategy
Funding Sources want to know how you plan to pay them back. Will the business
generate sufficient cash flow large enough to support the debt? Is the product or service
so in demand that the company will go public? These questions and more will not only
help determine your success, but they will also narrow your search for the lender most
likely to fund your request.
Personal
While your personal goals may not matter to your potential Lenders or Investors, they
do matter to you and your company. Deciding to be an entrepreneur can have great
effects on your life and the lives of those around you. Set down your personal goals just
as you are writing this business plan. Discuss them with your family. Take the time to
find out what your business associates expect of you.
"Building a business is no small task. It will affect
all parts of your life. Consider well what you do."
113
VI. COMPETITION
Know your competition. They can help you, bury you, or may be your best exit strategy.
Complementary Products
Show that you have searched out all those companies who offer competitive or related
products. Define those who offer complementary products in the same or similar
industries. Explain how competitive relationships can be turned into joint ventures,
strategic partnerships, buyouts, acquisitions, etc. in the future. Lenders or Investors take
comfort in the fact that you have defined possible exit solutions if things don't go as
planned.
Who are your three major competitors?
Competitor #1 ________________________________________
Address ________________________________________
Years in Business ________________________________________
Market Share ___________________

Price/Strategy ___________________
Product/Service ___________________
Advantages/Disadvantages:
114
Competitor #2 ________________________________________
Address ________________________________________
Market Share ___________________

Price/Strategy ___________________
Competitor #3 ________________________________________
Address ________________________________________
Market Share ___________________

Price/Strategy ___________________
Compare your strengths and weaknesses to your competition's. Consider such things
as location, size of resources, reputation, services, personnel, etc.
Strengths:
Weaknesses:
115
Current Market Share
It is vital that you demonstrate an expert understanding of what your industry is all
about. Where is your industry going?
What is the current condition of your industry?
Why are the current market distributions the way they are?
What has your competition done to achieve their market share?
116
VII. THE AMOUNT REQUESTED AND USE OF FUNDS
Entrepreneurs tend to spend too much time looking for money and not enough time
making it. This problem stems from the lack of adequate pre-planning given to the initial
use of funds. In order to determine what your short and long term capital needs are
going to be, you must
perform accurate financial projections.
Your projections must consider:
• Immediate Need For Capital (Bills to pay)

• Research and Development (Estimate, then double)
• Capital Asset Acquisition (Required equipment, etc.)
• Inventory Floor Planning (Necessary raw materials)
• Working Capital Requirements (Payroll, payables, etc.)
• Market Penetration (When will the cash flow begin)
The cash flow model is the best tool for determining your capital needs. Don't be overly
optimistic or too conservative, either one will hurt you. Know what factors will affect your
projections to the downside, (sales, costs, price breaks, etc.). Work closely with third
parties, financial advisors, accountants, industry consultants, retired executives, etc., to
keep from having tunnel vision and missing the big picture. Your cash flow model
should be month to month for one year and the quarterly for the next two years,
annually for the last two years.
Conservative Request
It is extremely important that your financial projections fully support the amount of funds
you are seeking. If you are seeking debt financing your request must be very specific.
Lenders frown upon you having to come back to ask for more, because you
underestimated. Investors may not be inclined to keep your management team in place
if you can't make the funding work.
117
Downside Planning
Take the time to plan for the downside. It is far better to over estimate your capital
requirements
than to run short and be forced to go hat in hand back for more.
Supportable Assumptions
Both Lenders and Investors are going to want to know that you have reasonably
estimated and supported your costs and projected revenues. Your financial pro forma
should include detailed information and trade references on the costs of each expense
you list.
Association Documentation
In your income projections be sure to include Trade Industry support information or
other market information that lends credibility to the conclusions you have drawn. Most
associations publish reports of standard industry costs, margins and financial ratios.
"It is especially hard to work for money that you've

already spent, on something that you didn't need."
118
VIII. THE TERMS
Know what you want, what you can afford and what you are willing give up.
How Long?
This should be based on your financial pro forma or the useful life of the asset being
financed. Receivable and contract financing are less than 12 months, equipment
normally one to five years, real estate and other long term assets 5 to 20 years.
Amortized versus Interest Only

Most ventures take some time to begin making money. New equipment or other
acquired assets take time to begin paying for themselves. Think about an initial period
of interest only or skip payments to offset your lack of cash flow.
Interest Rate
The rate you pay for the funds you need can directly affect your profitability. On the
other hand, if by paying 50% interest, you yield 100% profitability, you are way ahead of
where you began.
Fixed or Adjustable
With a fixed rate of interest you know where you are. With adjustable rates you're
betting on the future. Anybody remember Jimmy Carter interest rates? Normal is Prime
plus one to three percent or LIBOR (London Index) plus three to five percent. Rates
vary as you add or subtract
risk.
Points and Fees

Most, if not all, funding sources charge points (percentage of amount funded) and fees
(costs of putting your transaction together). These can run from 1% to 10% depending
on what you're looking for and the degree of risk. Fees are sometimes payable 50% at
commitment and 50% at closing. Try to get 100% at closing or at least deposit the 50%
into a trust or escrow account. Beware of those sources who must have your money
before you see theirs’. Never do so without consulting your attorney!
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Prepayment Penalties
Funding sources spend time, energy and money picking deals to invest in. Once they
lend or invest they want to stick with it. Pre-payment penalties are one way to insure
you'll leave the funds in place. Try to negotiate these away, or limit them to one or two
years.
Blanket & Specific Liens

Blanket means "all". Specific is just that. Blanket liens will restrict your ability to raise
cash in the future. Always attempt to have specific liens. Don't let them have blanket!
Personal Guarantees
How committed are you? If you won't sign personally, then you may not get any money.
This is a gut check. If you don't believe in your success, why should anyone else? As
you and your company perform, you should be able to get these released.
Covenants & Conditions

Be very careful. These spell out just what you can and cannot do. No management or
ownership change, quarterly filing requirements, no borrowing from anyone else,
deposits maintained, collateral pledges, etc. Carefully read and evaluate the fine print.
Here is another
good place to consult your attorney.
What % Ownership You Will Offer

What's fair? 80%, 50%, 20%… I can't tell you. You must define it, support it, and defend
it. While most lenders won't ask, most investors will demand. Be prepared from the
start. Do your homework on your potential funding sources and know what your
company or idea is worth.
Stock Repurchase Agreement?

What happens if you hate your investor? Are you locked together forever? Try to
negotiate escape clauses that will allow you a way out if you need it or can afford it. Be
able to buy your stock back at a predetermined price, if possible.
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Management Controls?
Most entrepreneurs are in business to make decisions for themselves. Some investors
want a partnership. Once again, pre-plan, know what you are looking for and what you
are willing to give up.
Collateral Anyone?
Will you risk it all? If you don't believe, neither will anyone else?
• Accounts Receivable
• Contracts
• Equipment
• Inventory
• Marketable Securities, CD's, T-Bills
• Purchase Orders
• Real Estate
• Patents
• Name Recognition
• OP (Other Peoples Investment; Family, Friends, etc.)
"No business opportunity is ever lost.

If you lose it, your competitor will find it."
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IX. REPAYMENT PLAN
Repayment is tied directly to your success. In order to repay your Funding Source, you
must clearly define how you are going to make money and how much money you are
going to make.
R&D Requirements
How much research and development remains before you can enter the market? Does
your product require regulatory approval? What is your time table? What delays are
foreseeable that could affect your time table? Are there any alternative plans if tests,
approvals, patents, licenses, etc., don't go as planned?
Break Even Analysis

Exactly where is it? Must you sell 10,000 widgets? How will price breaks affect you?
Can your salespeople survive on your commission structure? What about material price
increases? Here is where you are going to demonstrate that you understand your
product, its market, its costs
and your industry.
Current or Projected Debt Coverage Ratio

Remember 1.25 to 1. It's a figure that can affect your future. For lenders if your net
income is below 1.25 to 1, it may mean no loan, a higher rate or more collateral. Simply
put, it determines your ability to service debt. Your net income should be 1.25 times
higher than the debt payment you are proposing to take on. Hopefully you have
analyzed your debt coverage ratio and found it to be much higher. If it's not, this leaves
a pretty slim margin for error.
With investors, because there is no debt, they are concerned with profit margins and
retained earnings. The projections should support ratios of better than 2.0 to 1 to
generate any serious
investor interest.
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Amortization or Dividend
• Return on investment
• Return of investment
These are terms that all funding sources want to know. If they give you the money, what
do you project your time table to be for them to get their investment back? Then, when
does the return on the investment start?
Pre-Planning
Always try to arrange for funding when you don't need it. Entrepreneurs are famous for
seeking capital in a crisis. When your need is great (payroll, taxes, sales drop, etc.)
rates always seem to go up or you can't find capital at all. Do your best to forecast your
capital requirements at least six months in advance.
"Good entrepreneurs hire optimists as salesmen

and pessimists to run the credit department"
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X. PRO FORMA FINANCIALS
Projection Information
Being able to present a clear, concise, logical and supportable financial projection is
probably the most important key to having a chance of obtaining the capital you desire.
If you don't have financial forecast ability, hire someone who does. Have your pro forma
give a month-by-month breakdown for the first year, quarterly for the next two years and
then annually for the last two years. Include and fully support:
• Sales Estimates
• Administrative Costs
• Production Costs
• Sales Costs
• Capital Expenditures
• Gross Margin by Product Line
• Sales Increase by Product Line
• Interest Rates on Debts
• Income Tax Rate
• Accounts Receivable Collection Plan
• Accounts Payable Schedule
• Inventory Turnover
• Depreciation Schedules
• Usefulness of Assets
The Income Statement (Profit & Loss)
You will use the income statement to measure your business revenues against your
expenses for a certain period. Let’s consider an apparel manufacturer as an example in
outlining the major components of the income statement:
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The income projection enables the owner/manager to develop a preview of the amount
of income generated each month and for the business year, based on reasonable
predictions of monthly levels of sales, costs and expenses.
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1. Total Net Sales (Revenues)
The total number of units of products or services you realistically expect to sell each
month in each department at the prices you expect to get. Use this step to create the
projections to review your pricing practices. What returns, allowances and markdowns
can be expected?
2. Costs of Sales
The key to accurately calculating your cost of sales is not to overlook any costs that you
have incurred. Calculate the cost of sale of all products and services used to determine
total net sales. Where inventory is involved, remember transportation costs and any
direct labor.
• Gross Profit
Subtract the total cost of sales from the total net sales to obtain gross profit.
• Gross Profit Margin

The gross profit is expressed as a percentage of total sales (revenues). It is calculated
by dividing the gross profits by the total net sales.
• Controllable Expenses
• Salary expenses -- Base pay plus overtime.
• Payroll expenses -- Include paid vacations, sick leave, health insurance,
unemployment insurance and social security taxes (employer paid
portion).
• Outside services -- Include costs of subcontracts, overflow work and
special or one-time services.
• Supplies -- Services and items purchased for use in the business.
• Repair and maintenance -- Regular maintenance and repair, including
periodic large expenditures such as painting.
• Advertising -- Include desired sales volume and classified directory
advertising expenses.
• Car delivery and travel -- Include charges if personal car is used in business,
including parking, tools, buying trips, etc.
• Accounting and legal -- Outside professional services.
• Dues and subscriptions.
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• Utilities.
6. Fixed Expenses
• Rent -- List only real estate used in business.
• Insurance -- Fire or liability on property or products. Include workers'
compensation.
• Loan repayments -- Interest on outstanding loans.
• Licenses and permits.
• Miscellaneous -- Unspecified; small expenditures without separate accounts.
• Depreciation -- Depreciation is when a company purchases a fixed asset and
expenses it over the entire period of its useful life, rather than in the year
purchased. The IRS has established depreciation schedules depending on the
type of asset. Depreciation is a non-cash expense on the income statement with
the difference being that the cash flows out when the asset is purchased, but the
expense is written off over a period of years. Depreciation can be included in
cost of goods sold if the expense is associated with a fixed asset that is used in
the production of inventory.
• Other income and expenses:

Other income and expenses are items that do not occur during the normal course of
business. Interest expense on debt is normally included in this category. A net figure is
computed by subtracting other expenses from other income.
• Net Profit (or Loss)

(before taxes) - Subtract total expenses from gross profit.
Taxes - Include inventory and sales tax, excise tax, real estate tax, etc.
(after taxes) - Subtract taxes from net profit (before taxes)
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Income Statement Worksheet
Revenue Projection
Total net sales (TNS) $__________

Costs of sales (COS) $__________
Gross profit (TNS-COS=GP) $__________
Gross Profit margin (GP/TNS) __________ %
Controllable expenses
Salaries/wages $__________
Payroll expenses $__________
Legal/accounting $__________
Advertising $__________
Automobile $__________
Office supplies $__________
Dues/Subscriptions $__________
Utilities $__________
Other $__________
Fixed Expenses
Rent $__________
Insurance $__________
License/permits $__________
Loan payments $__________
Depreciation $__________
Miscellaneous $__________
Total expenses $__________
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Other Income or Expense $__________
Net profit (loss) before taxes (GP-Expenses) $__________
Taxes $__________
Net profit (loss) after taxes $__________
This form should be used to project month to month income and expenses for year one,
quarterly for the next two years, and annually for the last two years.
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The Balance Sheet
Your company analysis is not complete without computing your balance sheet. Key
stumbling points to financing tend to be:
1. Intangible assets:
If a company shows a substantial amount of intangible assets, it may raise investor
questions about the way the company capitalizes its’ research and development (as
opposed to expensing them) which can create a large earnings hit if in the future the
company is forced to reclassify them.
2. Accounts receivable
Which is calculated by dividing receivables by net sales, and dividing that by 365. If the
number is seen as steadily going up over time, it could indicate to funding sources that
management is not focusing their efforts on collecting cash in a timely manner.
3. Accounts payable
How many payables are more than 60 days old? If it’s a large amount the funding
source may see that significant portion of the proceeds are going just to keep supply
lines open and not used to create new business, a real deal killer if not addressed
correctly.
4. Term loans
Investors hate short-term significant liabilities (due in less than two years). If the term is
three to five years, the loans may be less of an issue. Debt free is the ideal scenario.
Term loans payable to founders cause problems for entrepreneurs who want to be paid
from funding proceeds. For the funding sources it is a waste of working capital to pay
founders off because it doesn’t promote the company’s growth. If founders aren’t willing
to defer payment, it will usually kill the deal.
5. The equity
See whether it’s negative or positive. Net income or net loss is posted towards the
company’s equity. If the company continues to lose money year after year, investors will
gauge the company’s financial health by looking at the remaining equity.
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Assets
List anything of value that is owned or legally due the business. Total assets include all
net values. These are the amounts derived when you subtract depreciation and
amortization from the original costs of acquiring the assets.
Current Assets
• Cash -- List cash and resources that can be converted into cash within 12
months of the
date of the balance sheet (or during one established cycle of operation). Include money
on hand and demand deposits in the bank, e.g., checking accounts and regular savings
accounts.
• Petty cash -- If your business has a fund for small miscellaneous
expenditures, include the total here.
• Accounts receivable -- The amounts due from customers in payment for
merchandise or services.
• Inventory -- Includes raw materials on hand, work in progress and all finished
goods, either manufactured or purchased for resale.
• Short-term investments -- Also called temporary investments or marketable
securities, these include interest- or dividend yielding holdings expected to be
converted into cash within a year. List stocks and bonds, certificates of deposit
and time-deposit savings accounts at either their costs or market value,
whichever is less.
• Prepaid expenses -- Goods, benefits or services a business buys or rents in
advance. Examples are office supplies, insurance protection and floor space.
• Long-term Investments -- Also called long-term assets, are holdings the
business intends to keep for at least a year and that yield interest or dividends.
Included are stocks, bonds and savings accounts earmarked for special
purposes.
Fixed Assets
Includes all resources a business owns or acquires for use in operations and not for
resale. Fixed assets may be leased. Depending on the leasing arrangements, both
value and liability of the leased property may need to be on the balance sheet.
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• Land -- List original purchase price without allowances for market value.
• Buildings
• Improvements (Including leasehold improvements)
• Equipment
• Furniture
• Automobile/vehicles
Liabilities
Current Liabilities
List all debts and obligations payable within 12 months. Typically they include:
• Accounts payable -- Amounts owed to suppliers for goods and services
purchased in connection with business operations.
• Notes payable -- The balance of principal due to pay off short-term debt for
borrowed funds. Also includes, the current amount due of total balance on
notes whose terms exceed 12 months.
• Interest payable -- Any accrued fees due for use of both short-and long-term
borrowed capital and credit extended to the business.
• Taxes payable -- Amounts estimated by an accountant to have been
incurred during the accounting period.
• Payroll accrual -- Salaries and wages currently owed.
Long-term Liabilities
Notes payable -- List notes, contract payments or mortgage payments due over a period
exceeding 12 months or one cycle of operation. They are listed by outstanding balance
less the current position due.
Net Worth
Also called owner's equity, net worth is the claim of the owner(s) on the assets of the
business. In a proprietorship or partnership, equity is each owner's original investment
plus any earnings after withdrawals. In a corporation it is the capital investment paid for
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the issuance of stock, plus the surplus paid in by the principals, and the after tax
retained earnings.
Total Liabilities and Net Worth

The sum of these two amounts must always match that for total assets.
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The Balance Sheet Worksheet
As of _____________________________________ , 20 ____
Assets
Current Assets (Net Values)

Cash $____________
Petty cash $____________
Accounts receivable $____________
Inventory $____________
Short-term investment $____________
Prepaid expenses $____________
Long-term investments $____________
Fixed assets
Land $____________
Buildings $____________
Improvements $____________
Equipment $____________
Furniture $____________
Automobile/vehicles $____________
Other Assets (List)

1. ________________ ________ $____________
2. ________________________ $____________
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3. ________________________ $____________
Total Assets $____________
Liabilities
Current Liabilities (within 12 months)
Accounts payable $__________
Notes payable $__________
Interest payable $__________
Taxes Payable
Federal income tax $__________
State income tax $__________
Self-employment tax $__________
Sales Tax (SBE) $__________
Property tax $__________
Payroll accrual $__________
Long-term liabilities (over 12 months)
Notes payable $__________
Total Liabilities $__________
Net worth (owner equity) $__________
If Proprietorship or Partnership
(name's) equity $__________
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If Corporation
Capital stock $__________
Surplus paid in $__________
Retained earnings $__________
Total Net Worth $__________
Total Liabilities and Total Net Worth $__________
(Total assets will always equal total liabilities and total net worth)
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Cash Flow Projections
The cash flow statement is designed to track cash as it flows in and out of your
business. It shows the causes of cash flow shortfalls and surpluses. If the cash flow is
positive it indicates that the business is funding its daily operational working capital
needs without the injection of external funds. If the cash flow is negative it indicates that
external funds are needed to provide the working capital for business operations.
Most businesses require cash to invest in new fixed assets such as new equipment,
machinery, real estate, etc. When a company does need cash for investing it must
come from internal operating cash flow surplus or from external financing.
The increase or decrease in cash number at the bottom of the cash flow worksheet that
follows will show you the net result of operating and external investing or financing. You
will be able to use the cash flow worksheet to analyze your sources and uses of cash
and the cash flow worksheet to be a valuable tool in understanding where and when
cash is flowing in and out of your business.
Funding sources will carefully analyze your cash flow statement to see what is going on
in the business. It is the cash flow statement that shows how much cash is generated
and used by a business and for what. Depreciation is an expense on your income
statement that doesn’t require cash are added back to cash flow. Accounts receivable is
shown as revenue on the income statement but isn’t real cash and is removed from the
cash flow calculation.
Ultimately funding sources are looking at the capital intensity of the business. How
much cash has to go in before the business is able to sustain itself on it’s own cash
flow.
Cash flow factors can be:
• Seasonality – Does the business have revenue down periods?

• Collection time periods – What is the typical A/R aging 30, 60, 90 days?
• Accounts receivable growth – How many orders can the company manage?
The question then becomes, how much cash will this business require, what is the plan
to fund the growth, and has the management correctly forecasted the need.
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Having an accurate model of how much cash you will need and when that cash must
be available, is vital to your business success. If you have any dreams of funding your
business than I urge you to spend more time on your cash flow projections then on
almost anything else. It is the key to your success.
Produce a detailed and supportable first year cash flow projections and then a summary
overview of cash flow for the next four years.
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The Cash Flow Statement Worksheet
As of ____________________________________, 20_____
1. Cash on hand (beginning of month) $_______________
Cash on hand same as (7), Cash position, previous month.
2. Cash receipts - (a) Cash sales $_______________
All cash sales. Omit credit sales unless cash is actually received.
(b) Collections from credit accounts $_______________
Amount expected to be collected from all accounts.
( c)Loan or other cash injection $_______________
Indicate here all cash injections not shown in 2(a) or 2(b) above.
3. Total cash receipts (2a+2b+2c=3) $_______________
4. Total cash available (before cash out)(1+3) $_______________
5. Cash paid out - (a) Purchases (merchandise) $_______________

Merchandise for resale or for use in product (paid for in current month).
(b) Gross wages (excluding withdrawals) $_______________

Base pay plus overtime.
( c ) Payroll expenses (taxes, etc.) $_______________

Include paid vacations, paid sick leave, health insurance, unemployment insurance,
social
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security (employer portion). These might be 10 to 45% of 5(b).
(d) Outside services $_______________
(e) Supplies (office and operating) $_______________
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Items purchased for use in the business (not for resale).
(f) Repairs and maintenance $_______________

Include periodic large expenditures such as painting or decorating.
(g) Advertising $_______________

This amount should be adequate to maintain sales volume.
(h) Car, delivery and travel $_______________
(i) Accounting and legal $_______________
(j) Rent $_______________

Real estate only (See 5(p) for other rentals).
(k) Telephone $_______________
(l) Utilities $_______________
(m) Insurance $_______________

Coverage on business property and products (fire, liability); also worker's compensation,
fidelity,
etc. Exclude executive life (include in 5(w)).
(n) Taxes (real estate, etc.) $_______________

Plus inventory tax, sales tax, excise tax, if applicable.
(o) Interest $_______________

Interest on loans as it is injected (See 2(c)).
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(p) Other expenses (specify each) $_______________
Unexpected expenditures may be included here.
Equipment expenses during the month should be included here (non-capital
equipment).
When equipment is rented or leased, record payments here.
(q) Miscellaneous (unspecified) $_______________
Small expenditures for which separate accounts would be practical.
(r) Subtotal $_______________

This subtotal indicates cash out for operating costs.
(s) Loan principal payment $_______________

Include payment on all loans, including vehicle and equipment purchases on time
payment.
(t) Capital purchases (specify) $_______________
Non-expensed (depreciable) expenditures such as equipment, building purchases on

time payment, leasehold improvements, etc.
(u) Other start-up costs $_______________

Expenses incurred prior to first month projection and paid for after start-up.
(v) Reserve and/or escrow (specify) $_______________

Example: insurance, tax or equipment escrow to reduce impact of large periodic
payments
(w) Owner's withdrawals $_______________

Should include payment for such things as owner's income tax, social security, health
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insurance, executive life insurance premiums, etc.
6. Total cash paid out (5a through 5w) $_______________
7. Cash position (end of month) (4 minus 6) $_______________

Enter this amount in (1) Cash on hand following month
Essential operating data (non-cash flow information)

This is basic information necessary for proper planning and for proper cash flow
projection. Also with this data, the cash flow can be evolved and shown in the above
form.
A. Sales volume (dollars) $_______________
This is a very important figure and should be estimated carefully, taking into account
size of
facility and employee output as well as realistic anticipated sales (actual sales, not
orders received).
B. Accounts receivable (end of month) $_______________

Previous unpaid credit sales plus current month's credit sales, less amounts received
current month (deduct "C" below).
C. Bad debt (end of month) $_______________
Bad debts should be subtracted from (B) in the month anticipated.
D. Inventory on hand (end of month) $_______________

Last month's inventory plus merchandise received and/or manufactured current month
minus account sold current month.
E. Accounts payable (end of month) $_______________

Previous month's payable plus current month's payable minus amount paid during
month.
F. Depreciation $_______________
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Established by your accountant, or value of all your equipment divided by useful life (in
months) as allowed by Internal Revenue Service.
"Anyone who thinks the customer isn't right,

should try doing without them for ninety days."
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Monthly Cash Flow Projection Worksheet
Cash on hand (beginning month) $_______________

Cash Receipts $_______________
(a) Cash sales $_______________
Collections from credit accounts $_______________
Loan or other cash injections (specify) $_______________
Total cash receipts $_______________
Total cash available (before cash out)(1+2+3) $_______________
Cash paid out $_______________
a) Purchases (merchandise) $_______________
b) Gross wages (excludes withdrawals) $_______________
c) Payroll expenses (taxes, etc.) $_______________
d) Outside services $_______________
e) Supplies (office and operating) $_______________
f) Repairs and maintenance $_______________
g) Advertising $_______________
h) Car, delivery and travel $_______________
i) Accounting and legal $_______________
j) Rent $_______________
k) Telephone $_______________
l) Utilities $_______________
m)Insurance $_______________
n) Taxes (real estate, etc.) $_______________
o) Interest $_______________
p) Other expenses (specify each) $_______________
q) Miscellaneous (unspecified) $_______________
r) Subtotal $_______________
s) Loan principal payment $_______________
t) Capital purchases (specify) $_______________
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u) Other start-up costs $_______________
v) Reserve and/or escrow (specify) $_______________
w) Owner's withdrawal $_______________
6.Total cash paid out (5a through 5w) $_______________
7. Cash position (end of month)(4 minus 6) $_______________
Essential operating data (non-cash flow information)

A. Sales volume (dollars) $_______________
B. Accounts receivable (end of month) $_______________
C. Bad debt (end of month) $_______________
D. Inventory on hand (end of month) $_______________
E. Accounts payable (end of month) $_______________
F. Depreciation (in months) $_______________
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Key Indicators and Ratios
Being able to summarize your important financial points allows the Lender/Investor
insight into
whether or not you understand how the money world operates.
Provide support for:
• Sales revenue
• Price points
• Fixed costs
• Gross margins
• Net income
The financial industry judges your potential success by Risk Management Association
(RMA) standards and ratios. You need to calculate the following ratios: (or have your
accountant do it)
• Current Ratio (1 to 1 or better)
Current assets divided by current liabilities.
• Quick Ratio (0.5 to 1 or better)
Current assets less inventory divided by current liabilities.
• Debt to Worth Ratio (3 to 1 or better) Creditors capital to owners capital.
• Gross Profit Margin (60% or better) Gross sales less cost of goods sold.
• Net Profit Margin (10% or better) Gross sales to net income.
• Debt Coverage Ratio (1.25 to 1 or better)
Net income divided by debt payment (Principal & Interest).
• A/R Turnover Ratio (as close to 12 as possible) Gross Sales divided by
accounts receivable.
• "SIC" Standard Industrial Code (know yours)
Lenders will compare your ratios to those of your industry.
There are many good computer financial programs available to assist you in formatting
your projections. If you aren't computer literate, recruit someone who is. After you have
taken a run at the numbers by yourself, it is always a good idea to have your accountant
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look them over and to have someone with industry experience review them, such as a
Service Corps of Retired
Executives (SCORE) counselor.
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XI. PREPARING YOUR PRESENTATION
Unfortunately, you normally only get one shot per funding source, so make it your best!
Your Presentation Materials
You will need to take all of the information you have generated chapters 1 through 10 of
this book and place it in a professional bound and tabbed binder. You will also need to
collect the following information and have it readily available but not in the main binder.
• Schedule of Assets
• Personal Financial Statements
• Credit Report Releases
• Business Tax Returns (last two years)
• Personal Tax Returns (last two years)
• Articles of Incorporation, Partnership Agreement, etc.
• Copies of Orders or Invoices
• Current Business Profit & Loss Statement
• Account Receivable Aging Report
• Customer Testimonials
• Trade References
• Banking References and last three months statements
• Title Reports (equipment, real estate, etc.)
• Asset Appraisals
• Patents, Trademarks or Licenses
Presentation Tips
• First impressions are lasting, make a good one.
• Bind the material in such a way that allows for easy reading.
• Tab each section for quick and direct access.
• Keep your information concise and to the point, no more than 50 pages.
• Pictures are worth a thousand words, include appropriate ones.
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• Support assumptions with facts, not more assumptions.
If you will be presenting to potential investors you will need to prepare a 10 to 15 slide
PowerPoint presentation that highlights the information from chapters 1 through 10. You
will also need to prepare a 15 to 20 minutes spoken presentation that again covers the
same topics in a concise and compelling manner.
XII. TYPE OF CAPITAL DESIRED
Debt Versus Equity

Debt funding is normally cheaper and easier to find than equity funding. Debt typically
carries the burden of monthly payments, whether or not you have positive cash flow.
Equity investors expect little or no return in the early stages, but require much more
extensive reporting as to the company's progress. They have invested on the gamble of
very high returns. Therefore, investors anticipate that goals and milestones will be met.
Debt financing is usually available to all types of businesses. Equity is generally

restricted to businesses with fast and very high growth potential.
Debt Considerations
• For what type of debt financing can my company qualify?
• How much debt can I afford?
• Can I handle the payments if cash flow is off?
• What happens if interest rates rise?
• Am I willing to pledge company and personal assets?
• What about my personal guarantee?
Debt lending is more analytical than personal. Are your ratios right? Do you have the
assets?
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Are you credit worthy?
Equity Considerations
• What type of investors do I target?
• Am I willing to share control and future profits?
• Do I really want investors as partners forever?
• How big of a share am I willing to give up?
• Will I be able to keep up with all the required reports?
• What about disclosing company secrets to potential investors?
Investors will want to take a much larger share of a start-up venture, than they will of a
company with a two or three year track record of success.
Angels
Angels are individual private investors who make up a large portion of "informal" venture
capital. These investors tend to keep their money close to home (50 miles or so). They
invest small amounts ($10,000 to $250,000) and they are difficult to locate because they
usually don't belong to networks or trade associations.
Angels are found among friends, family, customers, professionals, suppliers, and
competitors. Once they invest in two or three deals they are out of money. There are a
few private investor locating services out there. Beware of those who charge large
($1,000+) advance fees in order to put you in touch with investors. Do your homework,
check these people out and negotiate a commission if your request is placed.
Caution: Don't advertise in your local paper for investors until you have spoken
to a securities attorney, or the Securities Exchange Commission will give you a
call.
Venture Capital
More time is wasted chasing venture capital than any other type of financing. These
investors are looking for huge returns not just good ones. Venture capital is extremely
hard to get and the competition is fierce. These funding sources get thousands of
requests each year and only invest in three or four.
151
The managers who invest these funds are experts at finding the very best deals. They
are looking for projects that are National or International in scope, that have a minimum
of $25 million dollar annual revenue potential, and proven successful management
teams. Most Venture Capitalists won’t talk to you unless you come from a trusted
source and are highly recommended. A great number of VC deals come from Angel
Investors, Law Firms, or
Accounting Firms.
If you really want VC money then find individuals who are well connected in the VC
community and get them to personally invest in your business. Then get them to help
you build a “Captain of Industry and Investment” board of directors. Then you might be
ready to present your ideas to the VC community.
99.9% of the time seeking Venture Capital is a waste of your valuable time, but if you
won’t take my advice then you need to really do your homework. I have written another
book just about Venture Capital called “The Art and Science of Obtaining Venture
(or Angel Investor) Capital”, please download and study it before you attempt this.
Joint Ventures/Strategic Partnerships

My personal favorite, this is where two companies with parallel interests get together
based on their mutual needs:
• They have the money…you have the plan.
• You have the product…they have the distributors.
Do your homework. Seek out companies with parallel interests to your own. You have
the world's best new phone design and they are AT&T. This requires much more
research than simply asking for a loan. Most of these partners will settle for 20% to 30%
equity in your company. Be careful to protect your ideas by having any potential
partners sign a non- circumvention agreement.
Small Business Administration (SBA)

A tremendous resource, but the paperwork can be tiring. This is a great place to look.
The SBA has many different programs. Your local bank should have an SBA loan officer
who can explain them to you. If you need less than $50,000 the SBA programs probably
aren’t for you. Check
htttp://www.sba.gov for the latest SBA programs.
Small Business Investment Corporation (SBIC)
152
These firms leverage their private capital into government money to form a sort of
venture capital fund. Most SBICs are part of commercial banks. They offer both long
term loans and equity participation. They are conservative investing mainly in
established companies for management buyouts, funds to go public, strategic
partnerships and bridge financing.
Commercial Paper
This is a short term debt instrument typically issued from 2 to 270 days. An issue is
normally a promissory note that is unsecured and discounted from its face value. The
issue is usually backed by a letter of credit or some other from of credit guarantee. The
company may pledge assets to obtain a credit guarantee which is then leveraged into
an issue of commercial paper.
153
The UBF Playbook
(Unsecured Business Financing)
The following seeks to describe the unsecured business financing

process including the initial pre-qualification, the required
documents, the banks and credit unions to be used, the approval
optimizations, and the cash-out strategy.
This playbook contains:
1. The Initial Pre-Qualification Grading Report

2. UBF CRM Opportunity Assignment Process
3. Non-Circumvention Non-Disclosure Agreement
4. UBF Business Finance Program Documentation
5. Banks & Credit Unions To Be Used
6. The Best Credit Cards To be Used
7. The Application & Initial Approval Process
8. The Credit Limit Increase Review Strategy
9. The Credit Reporting Agency Freeze Strategy
10.Twelve Cash-Out Strategies & Their Processes
The Initial Pre-Qualification Grading Report
General Credit Requirements:
All three Credit Check Total report scores of 680 and up. (760 and up is best).
Revolving Trade Lines: Maximum 45% balance to limit ratio
Closed Revolving Lines: Maximum 45% balance to limit ratio
No Open Tax Liens, Judgments, Collections (must be paid prior to submission), and no
bankruptcies.
Revolving Lines Requirements:
Long credit history (5 years plus),

High existing credit limits ($5,000+)
No late payments is the preferable scenario.
No more than 3 credit inquiries in the last 90 days
Preferably no revolving credit inquiries in the last 6 months
Basic Criteria:
The loan program is based on “Stated Income”. This can be based on their current income plus
future projections, Stated sales: based on future projections. There is no collateral needed,
which means no business plan and no financial statements. All loans are personally guaranteed
by Clients’ creditworthiness. A stated income of $150,000+ will receive higher approvals.
Ideal Credit Criteria: all three scores 760+:
Credit card limits over $10,000; Lines open more than 5 years; Available credit is less than
$40,000 – Typically receive $75,000 - $100,000 per client
Mid-Level Credit Criteria: all three scores 720 – 759:
Maximum 1-2 late payments at least 6 months old in the past 24 months; Highest Credit Limits
$5,000; Lines open less than 5 years; Available credit is less than $40,000 – Typically receive
$50,000 - $75,000 per client
Minimum Credit Criteria: all three scores 680 – 719:
Balance to limit ratios over 45% on existing lines they can’t pay down but has over 50%
availability on overall revolving lines; 30-60 day late payments not to exceed 2 per account and
must be older than 2 years old, also not to exceed 3 accounts. If bankruptcy exists funding may
be applied based off time of Bankruptcy, needs to be at least 4 years old – Typically receive
$25,000 - $50,000
UBF CRM Opportunity Assignment Process:
1. Concierge Team - UBF enters the CRM as an “open opportunity” and is assigned to the “concierge
team” (aka assistants, appointment setters, etc). There can be any number of concierges and the way
the system currently works is that any concierge can select the open opportunity at which point it
becomes assigned to that concierge. The concierge makes the initial call, email, contact, after which
the concierge assigns the opportunity to the “Funding Advisor Team”.
2. Funding Advisor Team – Funding advisors are the sales or closer team. The opportunity is
assigned to the team and gets picked up by the first available advisor. It is the advisor’s job to discuss
rates, terms, timing, and any other aspects of the program to close the UBF client. Once closed the
opportunity is assigned to the “Underwriter Team”. If not closed, the opportunity is assigned to the
“Dynamic Email Marketing Team”. If assigned to email marketing, Client will receive interval emails on
day 3, 7, 14, 21, 30, 45, 60, 90, 120, 150, 180. After 180 they are archived unless they opt-out
somewhere in the process. At each interval, they are given the ability to place themselves back into
the funding advisor opportunity queue.
3. Underwriter Team – This team will collect the credit check total report and do the initial grading
report. The underwriting team will also provide Client with all the required documentation. If there is
work Client needs, such as pay downs or item removals, Client will be placed into the On Hold Team
with NCE (Next Calendar Event) set at 30 days to follow-up with that client for status update. If Client is
good to go, the opportunity is assigned to the “Processor Team”.
4. Processor Team – This team’s job is two fold. First, to make sure that all documentation has been
completed, and second to perform a quality assurance review to make sure Client’s expectations have
been properly set and that they have not been oversold. It is to make sure that Client understands the
process, that both personal and business credit cards will be obtained and the approximate number of
cards and amounts that will be sought. Once complete, the opportunity is assigned to the “Funding
Team”.
5. Funding Team – This team are the individuals who will be applying for and using CLI (Credit Limit
Increase) request process to optimize the amounts that can be obtained from each card. It will also be
their task to skillfully apply and remove “credit freezes” to force the issue of which credit report is
being pulled for which card. Once the approval process is complete the opportunity is assigned to the
“Invoicing Team”.
6. Invoicing Team – The invoicing team has two functions. First to get us paid and second to survey
Client experience. The invoicing team will offer some discounts in return for testimonials about our
process, service, support, and communication. If Client agrees, the opportunity is assigned to the
“Testimonial Team”.
7. Testimonial Team – Just like it sounds this team is responsible for collecting audio, video, and
written testimonials from successfully funded clients. Each client will be asked and provided an
incentive to refer at least 3 people they know who might benefit from the program.
8. System Coaching Team – Once the Funding Team has finished, the opportunity is, at that time,
assigned to the System Coaching Team. This team will take Client the rest of the way through
completing the business finance and credit building system and be looking to access other funding
opportunities for Client.
Non-Circumvention Non-Disclosure Agreement
Whereas, [Your_Business_Name] possesses certain information, not known by Client. Whereas the Client is
desirous of conducting various business finance transactions in contact with any third Party introduced by
[Your_Business_Name] to this agreement, and the undersigned Parties agree, in the consideration of the foregoing
promises to abide by the following terms and conditions:
1. Non-Circumvention: Client agrees not to directly or indirectly contact, deal with, transact, circumvent, avoid or
bypass, or otherwise be involved with any corporation, partnership, proprietorships, trust, individuals, or
other entities introduced by [Your_Business_Name] without the specific written permission of
[Your_Business_Name].
2. Non- Disclosure: Client agrees not to disclose or otherwise reveal to any third Party the identities, addresses,
telephone numbers, facsimile numbers, E-mail addresses, telex numbers, bank codes, account numbers,
financial reference, or any other entities introduced by [Your_Business_Name] without the specific written
permission of [Your_Business_Name].
3. Terms: This Agreement is valid for the following term: Five (5) years from the date of signing of this
agreement.
4. Parties bound: This Agreement shall be binding upon all undersigned Parties and their heirs, successors,
associates, affiliates, and assigns.
5. Notice: All notices, demands, or requests given by the Parties shall be in writing with return confirmation
requested to the other Party at the last fax number the Party has designated by notice herein.
6. Severability: Should any portion of this Agreement be declared invalid or unenforceable, then such portion
shall be deemed to be severable from this Agreement and shall not affect the remainder hereof.
7. Integration: This Agreement constitutes the entire Non Circumvention Agreement between the Parties and
supersedes all prior discussion, negotiations and Agreements, whether oral or written. The parties further
intend that this Agreement constitutes the complete and exclusive statement of its terms.
8. Amendments: Any change or amendment to this Agreement, including oral modification supported by new
consideration, must be reduced to writing and signed by all Parties before it will be effective.
9. Waiver: No waiver or default of any of this agreement by any party shall be implied from any omission of such
party to take action against the defaulting party.
10. Force and Effect of Documents: The Parties hereto agree that a signed telefax or other facsimile copy of this
Agreement shall have force and effect as the original of this document.
IN WITNESS WHEREOF, the Parties hereto execute this Agreement by their authorized signatures.
Client Signature________________________________ [Your_Business_Name] Signature____________________
Printed Name__________________________________ Printed Name____________________________________
Date_________________________________________ Date___________________________________________
Fax Number___________________________________ Fax Number_____________________________________

[Your_Business_Name] Business Finance Program
1. Certification - I the undersigned hereby certify the following:
A. I have requested that [Your_Business_Name] apply for multiple Credit Lines on my behalf. I understand
that these may include Bank Cards, Business Credit Cards, Personal Credit Cards, Lines of Credit, and Bank
Loans. Let it be known that I have given true, lawful, and expressed permission to act on my behalf, in my
place, and in my stead, for the specific and limited purpose of applying for credit accounts, processing and
endorsing documentation with regards to those applications and the opening of an email account for
application correspondence to [Your_Business_Name] for a period of four (4) months from the effective date.
B. I have completed the “Information About the Applicant & Business, pages 1 & 2. I certify that all of the
information is true and correct. I made no misrepresentations in the information, nor did I omit any pertinent
information. I understand and agree that the potential lenders who receive the information reserve the right
to request additional documentation to support these statements. This may include verifying the information
provided directly with the applicant or other means.
C. I understand that I will be held responsible both personally and jointly with the business for any credit lines
obtained which I choose to utilize or authorize any other person to utilize.
2. Client Authorization to Release Information:

A. I authorize [Your_Business_Name] to provide lenders via phone, mail, fax, or internet with the Information
About the Applicant & Business, pages 1 & 2, as part of the underwriting and approval process.
B. I understand that my personal credit and/or business credit will be reviewed by lenders as part of the
underwriting process and that this will result in numerous inquiries in my personal and business credit report
and that as part of the approval process my personal credit scores will go down for a period of time.
3. Access to Client Personal Credit Report Data

I understand that I must sign up for a credit report service and provide [Your_Business_Name] with my User ID
and Password. I understand that I can change my password or cancel the service after my financing is done.
Access is how [Your_Business_Name] will monitor my credit changes as credit approvals are obtained.
REQUIRED - Credit Report Service Username_______________________Password_________________________
Authorized Signature_______________________________ Notary Seal
Printed Name_____________________________________
Dated Signed_____________________________________ Signature of Notary___________________________

Notary, State of______________________________
My commission expires________________________
Notary Phone _______________________________
Confirmation of Authenticity___________________
Information About the Applicant & Business - Page 1
Completion of all fields is required
First Name_____________________ Middle Name__________________ Last Name_____________________
Email_________________________ Home Phone____________________ Cell Phone____________________
Home Address______________________________________________________________________________
City___________________________________________________ State___________ Zip_________________
DOB_______________________ SSN_________-______-________ U.S. Citizen?_________________________
Mother’s Maiden Name__________________________ Name of a Favorite Pet_________________________
Your Annual Income_____________________________ Household Income____________________________
Contact Person___________________________________ Contact Cell Phone___________________________
Business Legal Name_________________________________________________________________________
DBA______________________________________________________________ EIN_____________________
Entity Type (check one) Corp LLC Sole Prop___ Non-Profit Title_________________________
State Where Business Entity Was Formed_______________________Date of Formation __________________
Industry Type____________________________________ Business Phone______________________________
Years in Business______________ Date Business Bank Account Opened________________________________
Business Address____________________________________________________________________________
City_________________________________________State__________________ Zip_____________________
Experian Business File Open?_______ Dun & Bradstreet File Open?_______ Equifax Business File Open?______
Gross Annual Sales____________________________________# OF EMPLOYEES_________________________
Amount Sought in Available Credit Lines $_________________________ Buying a Business/Franchise________
If You Are Buying a Business/Franchise Please Describe______________________________________________
I hereby certify that to the best of my knowledge all the information provided is true and correct.
Authorized Signature_______________________________
Printed Name_____________________________________
Dated Signed_____________________________________
Information About the Applicant & Business - Page 2
Completion of all applicable fields is required
Personal Mortgages
Bank____________________________________ Payment__________________ Years Open_________________
Bank____________________________________ Payment__________________ Years Open_________________
Business Credit Cards List All Revolving Accounts That Do Not Report To Personal Credit (Not Debit Cards)
Bank_____________________________ Limit________________ Balance_____________ Years Open _________
Do You Have A 401k or IRA?______________ If Yes, How Much?_______________ First Opened_______________
Family Service - The following questions are used to determine your eligibility for certain loan products only
offered to individuals with a direct or indirect affiliation to the armed forces or public service.
Have you or anyone in your family or household ever served in any branch of the armed services?
If Yes, Please Name Who_____________________________________ Your Relationship?____________________
Have you or anyone in your family or household ever worked for the Department of Defense?
If Yes, Please Name Who_____________________________________ Your Relationship?____________________
Bank Information – Please Enter All That Apply

Personal Checking Account Bank Name____________________________ Average Balance $_________________
I hereby certify that to the best of my knowledge all the information provided is true and correct.
Authorized Signature_____________________________________
Printed Name___________________________________________
Dated Signed____________________________________________
Business Services Agreement
This Business Services Agreement (this "Agreement"), dated as of ______________________ (the "Effective
Date"), is between and among ____________________________________________ an individual residing in the
state of ________________________________ for the purpose of carrying out the matters set forth herein
(collectively "Client”), and [Your_Business_Name] ("[Your_Business_Name]"), as per the terms below.
1. SCOPE AND DUTIES. Client retains and hires [Your_Business_Name] to provide business services in relation to
obtaining Credit Lines ("Services") to Client and assistance in establishing financial and credit accounts of behalf of
Client and Client's business, including credit cards, lines-of-credit, bank loans or other similar financial accounts
(each an "Account" and collectively, "Accounts") with lenders and other financial service providers ("Lender"). At
[Your_Business_Name]'s discretion and at any time after the Effective Date, [Your_Business_Name] may evaluate
the creditworthiness of Client by obtaining a credit report or other background information about Client or Client's
Business from appropriate sources. The client hereby authorizes [Your_Business_Name] to obtain such
information. Client hires [Your_Business_Name] to provide additional business services including but not limited
to: assistance with incorporating or reorganizing a business entity, strategies to minimize interest, strategies to
raise credit limits, declination reconsideration requests, techniques for converting personal credit to business
credit, and directions for establishing strong business credit scores with Experian Business, Dun & Bradstreet,
Equifax Business, or other similar business credit reporting account(s).
2. TERM. The term of this Agreement (the "Term") shall be one (1) year from the Effective Date (the "Term").
3. GUARANTEE. If Client has a Fair Isaac “FICO” Credit Score of at least Seven Hundred Twenty (720), verified by
[Your_Business_Name] through [Your_Business_Name]'s own means, and Client does not have any revolving
accounts with a balance of more than 45% of the limit and does not have excessive inquiries or any derogatory
information, then [Your_Business_Name] guarantees a minimum in credit approvals of $25,000.
3. FEES. Client agrees to pay [Your_Business_Name] the following fees (collectively, the "Fees"):
a. Credit Review Fee: Upon execution of this Agreement, Client agrees to pay to [Your_Business_Name] in full
a Credit Review Fee in the amount of Two Hundred Ninety-Five Dollars ($295) by credit card.
b. Credit Approval Fee: The client agrees to a Credit Approval Fee. This Fee is nine points (9%) of the aggregate
approval credit limits that are obtained. This Fee is ONLY due after [Your_Business_Name] has verified that the
aggregate approval credit limits of such Account(s) resulting in Client credit lines.
c. Competition of Credit Applications. The Credit Approval Fee is not contingent on Client's need or lack
thereof for financing and, as such, Client may not cancel, withdraw, intentionally cause to be denied, or fail to
follow through on a credit application in a timely matter, unless [Your_Business_Name] authorizes such action
in writing to do so. If Client does not provide [Your_Business_Name] with an approval or denial letter from the
lender within 14 days of each credit application's submission date (as evidenced by the e-mail sent disclosing
the lender's name, contact information, and instructing Client what to do) [Your_Business_Name] will consider
client's choice of not providing such approval or denial letter to be client's personal certification and final
confirmation that such credit application was approved and funded for the full requested amount. This
amount shall be calculated into the total credit obtained and if the minimum guaranteed aggregate credit limit
Client Initials
is achieved, the Credit Approval Fee will be considered fully earned, be billed according to the terms in this
agreement, and will be non-refundable.
4. ADDITIONAL BUSINESS SERVICES. With regards to Additional Business Services which include, but are not
limited to, any and all business with regards to Liquidation of Credit Lines, Strategies to Minimize Interest charges,
Strategies to Achieve Credit Limit Increases, Consolidation of Accounts, Declination Reconsideration, Personal to
Business Credit Reallocation, and the Establishment of Supply Credit Accounts, there will be no additional fees.
5. BUSINESS CREDIT BUILDING SYSTEM. In addition to the Business Services provided under this agreement, the
Client shall receive a Free User ID and Password to the Business Finance & Credit Building System designed to
assist the Client in the Building of Strong Business Credit Scores with; Experian Business, Dun & Bradstreet, and
Equifax Business. The system is also designed to assist the Client in obtaining Vendor Lines of Credit and other
lending products that will report solely on the business credit reports and not on personal credit reports.
6. INTEREST RATES AND CREDIT TERMS. [Your_Business_Name] will make best efforts to provide accurate rate
information with regards to new credit accounts, however, can make no guarantee as to the set forth interest
rate(s) and or terms in which credit may be granted to Client.
7. CREDIT LINE REPORTING. The client understands that [Your_Business_Name] does not control how a bank
chooses to report any account. A Bank may choose to report any Credit Lines that are personally guaranteed to
any of the Business or Personal Credit Bureaus at any time. [Your_Business_Name] in no way guarantees that the
credit lines the Client receives from any issuing Bank will not Report or choose to report to personal credit in the
future.
8. CREDIT LINE ADJUSTMENTS. The client understands that there is always the remote possibility that a lender
may lower Client's credit limit or take some other type of adverse action after Client is granted credit, either
arbitrarily or because of deterioration in Client's credit rating or perceived creditworthiness. The client
understands that such decisions are out of [Your_Business_Name]'s control and for which [Your_Business_Name]
will not issue any refunds.
9. CLIENT COVENANTS. At all times while in contract with [Your_Business_Name], Client agrees to:
a. be truthful with [Your_Business_Name] and Lenders and provide complete and accurate information, to the
best of the Client's knowledge.
b. provide accurate payment information in a timely manner when amounts are due hereunder and thereafter
in a timely manner;
c. provide to [Your_Business_Name] all documentation, executed applications, notices, correspondence, and
or other information (collectively, "Account Information") within seven (7) days of the date received by or
created by Client in connection with any Account;
d. not apply for and/or establish any new credit account(s) without the prior written approval of
[Your_Business_Name] for a time period of 45 days from the Effective Date of this agreement. If Client applies
for Credit without prior written approval, Client will be held liable for the total applicable fees outlined in
Section 3 of this agreement.
Client Initials
10. COSTS AND EXPENSES; INVOICES; AND PAST DUE AMOUNTS.
a. All amounts due and or past due to [Your_Business_Name] will be billed at the appropriate time to Client's
credit card. If for any reason [Your_Business_Name] is not able to collect fees due for service rendered
[Your_Business_Name] will attempt to bill Client’s credit card up to 5 times. Any bill left unpaid for more than
5 days shall be cause for [Your_Business_Name] to suspend provision of Services.
b. Client agrees that [Your_Business_Name] may use the Credit Card provided on the Credit Card
Authorization Forms for miscellaneous fees (not more than One Hundred Dollars ($100) associated with
updating credit items with the three major credit bureaus.
c. When [Your_Business_Name]'s services conclude (as a result of termination or expiration of this
Agreement), all unpaid charges, whether invoiced or not as of such time, shall become immediately due and
payable.
11. SUSPENSION OR TERMINATION OF BUSINESS SERVICES.
a. [Your_Business_Name] has the right to suspend performance of Services pursuant to this Agreement by
providing Client with five (5) days written notice of Client's failure to pay [Your_Business_Name] or any other
breach of this Agreement. Such suspension shall continue until the event is cured or this Agreement is
terminated.
b. [Your_Business_Name] may terminate this Agreement effective immediately upon breach of this Agreement
by Client. The client may terminate this Agreement only in the event that a material breach of this Agreement
remains uncured by [Your_Business_Name] for more than thirty (30) days.
c. Client shall not be entitled to any reimbursement, refund, or return of any amounts paid to
[Your_Business_Name] hereunder as a result of the termination of this Agreement by [Your_Business_Name].
12. SURVIVAL: Notwithstanding any termination of this Agreement, suspension of Services or expiration of the
Term, the terms hereof which by their nature are to survive such termination.
13. INDEMNIFICATION: Client shall indemnify, defend and hold [Your_Business_Name], and
[Your_Business_Name]'s subsidiaries and affiliated companies, distributors, and their respective officers,
members, managers, employees, agents, and other representatives harmless from and against any and all claims,
actions, suits, judgments, damages, losses, and expenses (including reasonable attorneys' fees) of whatsoever kind
and nature imposed on, incurred by or asserted against the [Your_Business_Name] by any third party, arising out
of the Services or any breach by the Client of any covenant or other provision hereof.
14. CONFIDENTIAL INFORMATION: All terms, including all rights and obligations, of both Client and
[Your_Business_Name] under any effective Non-Disclosure Agreement, entered into between Client and
[Your_Business_Name] prior to the Effective Date shall be incorporated herein by reference and made a part
hereof.
15. DISCLAIMERS: Nothing in this Agreement, and nothing in [Your_Business_Name]'s statements to Client, will
be construed as a promise or guarantee about the outcomes of the Services or the success of Client's business
with exception to potential billing modifications outlined in Section 3. Additionally, [Your_Business_Name]'s
Services are not to be construed in any way whatsoever as legal advice or of a legal nature.
Client Initials
16. SEVERABILITY: Wherever possible, each provision of this Agreement shall be interpreted in such manner as to
be effective and valid under applicable law.
17. ENTIRE AGREEMENT: This Agreement contains the full and complete agreement between the parties with
respect to the within the subject matter, and supersedes all other agreements between the parties whether
written or oral relating thereto, and may not be modified except by a written instrument executed by both of the
parties.
18. DISPUTES: This Agreement shall in all respects be subject to the laws of the United States and the State of
Nevada. If a dispute, controversy, or claim arises out of or relates to this Agreement, or the breach thereof, the
appropriate venue for dispute resolution will be the Superior Court of Las Vegas.
Please acknowledge your agreement to the terms above by signing and dating below. This Agreement will not take
effect, and [Your_Business_Name] will have no obligation to provide the Services, unless and until you return to
[Your_Business_Name] a signed, notarized copy of this Agreement and any Fees due upon commencement of
Services as per the above, and [Your_Business_Name] acknowledges receipt of same via his/her signature below
where indicated below your signature.
I have read and understand this ENTIRE agreement. I agree to the fee schedule outlined in Section 3 and I
understand that I will be bound by this agreement and will be billed for services accordingly.
CLIENT and GUARANTOR:
Signature of Authorized Signatory_________________________________________________________________
Printed Name_________________________________________________________________________________
Business Name________________________________________________________________________________
Title____________________________________________ Effective Date_________________________________
NOTARY
State of__________________________________________ County of____________________________________
This instrument was acknowledged before me on_____________________________ Notary Seal
Signature of Notary Public__________________________________________________
Notary Public, State of________________ My commission expires__________________
Notary Phone_____________________ for Confirmation of Authenticity_____________
Client Initials
Credit Card Authorization Form
Credit Cards Only, No Debit Cards
I,_______________________________________authorize [Your_Business_Name]. to charge my credit card.
Estimated Date of the Charge______________________
Full Name on the Card________________________________________________________________________
Card Number__________________________ Limit___________________ Current Balance________________
Expiration Date________________________________ Security Code__________________________________
Credit Card Billing Information

Statement Address___________________________________________________________________________
City_______________________________________ State______________________ Zip___________________
Telephone Number on File_____________________________________________________________________
Being the cardholder or authorized signer, by signing below I understand and agree to the terms of this
agreement, agree to pay, and specifically authorize [Your_Business_Name] LLC. to bill my credit card when
appropriate.
Date_____________________ Credit Card Authorized Signature_______________________________________
Before Returning This Form Make Sure You Have:

1. Signed with the credit card holder's signature on the line indicated.
2. Confirmed that the Card is a Credit Card and Not a Debit Card.
(You can use https://www.waveapps.com/ to process these payments)

Echeck Authorization Form
I ______________________________________________ authorize the account listed below to be charged for the:

(authorized account signer full name)
□ Amount # 1 □ Amount # 2
Account Type: (Provide Checking Account Only)
Name on Account ____________________________________________________ (Business name or Personal name on account)

Account Address ____________________________________________________ (Address on bank statements)
City, State, Zip ____________________________________________________
Phone on Account ___________________________________________________

Account Signer Email _________________________________________________
Financial Institution ___________________________________________________
Routing Number (9 digits) _____________________________________________
Account Number _____________________________________________________
SIGNATURE _____________________________________________________ DATE ____________________________
This payment will be processed immediately upon receipt via e-check. Please verify that the funds are available
from the above listed checking account. If contacted by your financial institution regarding this e-check transaction
please verify its validity. You agree that any return of funds will result in a $50 additional transaction charge.
(You can use https://echeckdirect.com/ to process these payments)

Finance Program Do's and Don'ts:
Congratulations on your decision to enroll in the [Your_Business_Name] Business Finance Program.
The following are some very important things to know during the application phase of our program.
1. Do not apply for ANY new credit cards, credit lines, loans, installment accounts, car
Initial loans or Utilities. If any other company needs your social security number to maybe check
your credit reports, do not do so during this process. This will place new inquiries on your
credit report and having too many new credit inquiries may disqualify you from our
program.
2. Do not apply for a new mortgage or to refinance your existing mortgage. Again, this
Initial will create new inquiries on your personal credit reports and may cause us to not get you
funded.
3. Do not attempt or request to increase your credit limit levels beyond their current
Initial amount or let your debt to limit ratio exceeds 50%. Do not attempt to increase your credit
limits, as that will initiate an inquiry as well. People with high amounts of revolving debt
(credit cards) are viewed by the banks as high credit risks, do not increase your revolving
debt levels. By waiting a short time you can put this same debt under the business name
and eliminate any impact on your personal credit (must be a non-reporting business line).
If you have lines over 50%, they will need to be paid down under 50% (30% in some cases)
and will then need to be disputed with the credit bureaus. This can take up to two weeks
and must be completed before we can submit any applications on your behalf.
4. Do not acquire new derogatory items on your credit report. This includes late
Initial judgments, public records, collections or excessive new credit. People with derogatory
items on their personal credit obtain far fewer approvals than people with perfect credit. In
some cases, new derogatory items can disqualify you from the program altogether.
5. Do contact your Client Representative if for some reason you have to initiate an
Initial inquiry on your credit. In certain cases, one inquiry may not hurt our process, but you
need permission from our underwriting department before you initiate any new credit
inquiries.
By signing and initialing this document. I understand and agree that I will not initiate any new inquiries on my
credit during the application phase of the Program. In the event I have to initiate any new inquiries on my credit
without permission from my Client Representative, I may be found in breach of contract and will be liable for the
entire cost of the program and be disqualified from the Program.
Client Signature _________________________________________________ Date ____________________

Business Services Document Checklist
_______ Completed and Notarized - Business Finance Program Certification
_______ Completed and Notarized - Information About the Applicant & Business (2 Pages)
_______ Completed and Notarized - Business Services Agreement (4 Pages)
_______ Completed Credit Card Authorization Form
_______ Copy of Driver's License (Front and Back of License)
_______ Copy of Credit Card used for Billing (Front and Back of card)
_______ Signed Business Finance Program DO's and DON'T's form

The Application & Initial Approval Process
In the UBF playbook, we have identified 30 credit card providers and broken their cards down into Tier 1,
2, & 3. We know that every credit provider will, at times, use all three credit agencies.
In researching our UBF model we have found the average initial approval to be $7,000 with using the
phone in CLI (Credit Limit Increase) review to increase that to $10,000. The average number of cards
obtained is 8 and therefore the average approval amount is about $80,000.
The goal of our approval process is to have no more than three (3) credit inquiries placed upon each
credit report during the approval process. To accomplish that two (2) credit bureaus will be frozen at a
time while leaving the credit provider’s most commonly used credit bureau open for the credit pull.
For example, US Bank offers three Tier 1 cards and most commonly pulls Transunion. Therefore during
the Transunion Tier 1 approval process Experian and Equifax would be frozen until the initial approval
and CLI review are completed. Once three Tier 1 Transunion providers are secured then we move on to
three Tier 1 Experian providers and three Tier 1 Equifax providers.
The Credit Limit Increase Review Strategy

The credit limit increase strategy consists of calling the phone CLI review lines for each approved provider. The
strategy is to request an increase of up to double the initial approval amount and request that it be done with only
a soft pull or no pull if possible.
For this process make sure you have a viable reason for the increased credit limit, such as;
1) Balance transfer from a competitor’s higher interest rate card.

2) Wanting to use the card for a significant purchase that would take the card over the preferred 45% balance
to limit and would therefore negatively impact the credit score.
Use The UBF Funding Estimator

Inside your Private Label Admin area is your Member Search tool. For Members in your system there is an “Edit”
Pencil Icon where you will find the UBF Funding Estimator which you should run on each Client before engaging
them for the UBF funding process. The estimator requires you to have a current copy of the Client’s personal credit
report with their FICO 8 scores. The estimator will show you if your Clients are ready to proceed to funding and
approximately the range of funding they may receive. It will also show areas that will need to be addressed before
taking them out for funding. Make sure your client has first run a Success Scan and is therefore a Member of your
system. Then log into your Private Label Admin area to find that Member to access and use the estimator.
The Credit Reporting Agency Freeze Strategy
They allow us to seal credit reports and use a personal identification number (PIN) to temporarily "thaw"
credit so that legitimate applications for credit and services can be processed.
The cost ranges from $3-$10 per person per bureau to freeze a credit report. The cost to "thaw" reports
for one creditor, or for a specific period of time, range from being free to $10.
EQUIFAX CREDIT FREEZE - Credit freezes may be done online at:

https://www.equifax.com/personal/credit-report-services/credit-freeze/
If your PIN is late arriving, call 888-298-0045. They will ask you for some ID and arrange for your PIN to
be sent to you in 4-7 days.
Unfreeze: Do a temporary thaw of your Equifax credit freeze online or by calling 888-298-0045.
EXPERIAN CREDIT FREEZE - Credit freezes may be done online at:

https://www.experian.com/freeze/center.html
Unfreeze: Do a temporary thaw of your Experian credit freeze online or by calling 888-397-3742.
TRANSUNION CREDIT FREEZE - Credit freezes may be done online at:

http://www.transunion.com/personal-credit/credit-disputes/credit-freezes.page
Credit freezes may be by phone at 888-909-8872. Some users have reported difficulty with the online
method. Please try one of the phone options if you too experience difficulty.
Unfreeze: Do a temporary thaw of your TransUnion credit freeze online or by calling 888-909-8872.
Twelve Cash-Out Strategies & Their Processes
1. Balance Transfers
A balance transfer is when you pay the balance of one credit card with another. Some credit cards
allow you to do a direct deposit from your card’s available credit to your bank account, but you
want to make sure they consider it a balance transfer, not a cash advance. The Bank of America
Better Balances Rewards Card is a good credit card for direct deposits into your bank account.
This is one of the most unique credit cards offered by Bank of America. Unlike the other rewards
cards offered, this card is a MasterCard, not Visa. The Better Balances Rewards Card allows you to
take a cash advance from any bank, but with 30% of your overall credit limit, however, you can do
a direct deposit from this card up to the overall credit limit to any bank account. It typically takes
seven business days, but if you have a checking or savings account with Bank of America, it will be
quicker.

2. Amazon Payments
When you use this Amazon service to send personal payments, you can do so for up to $500 per
month for free. Even if you’re using a credit card to send the money, they won’t charge you the
normal fees if you stay within that amount (if not, the fees are 2.9%).
3. Paypal
Pay an individual or a business that won’t accept credit cards, then ask if they’ll accept a Paypal
payment. Paypal charges a flat fee of 2.9%. Since Paypal transactions are classified as a purchase,
it may save you money, especially if you’re using a 0% intro credit card offer. You can choose to
pay with "another payment method you've added" to your PayPal account such as a credit card.
4. Google Wallet (best online payment option due to high daily limits)
You can send money to anyone in the U.S. with an email address using the Google Wallet app.
You can also send money in Gmail by hovering over the attachment paperclip icon and clicking
the $ icon to attach money to a Gmail message on your desktop. Payments can be funded from
your Google Wallet Balance, bank account, debit cards and/or credit cards. The email recipient
does not need to have a Gmail address but must sign in or sign up for Google Wallet and verify
their identity to accept the money. There is a daily transfer limit of $10,000 USD and a $50,000
USD transfer limit per 5 day period. This includes both money sent to others as well as money
transferred in and out of your Google Wallet Balance. There is a request limit of $10,000 USD. The
recipient will receive an email confirmation that they’ve been sent money immediately after you
hit “send”. If you are sending from your Google Wallet Balance, credit, or debit cards, the
recipient will receive funds almost instantaneously in most cases. Fee is 2.9%
5. Credit Unions (easiest cash-out option)

The USAA Mastercard will allow you to get a cash advance without a fee as long as you deposit
the cash in your checking account there. Other credit unions also do not charge for cash advances
or the fee is 2% or less so long as the money is deposited into their accounts. Justice Federal
offers a 0% for 6 months which includes no-fee cash advances.
6. Discover (if only small amounts are needed)
Has a program that lets you get cash in addition to your purchase at Walmart certain grocery
stores with no fee involved. When the program first started the additional cash also qualified as a
"purchase" rather than as a "cash advance" and got you credit toward their CashBack program.
Limit is $120 per day.
7. Gift/Prepaid Cards (good for a few thousand at a time)

Buy Visa gift cards, use them to buy money orders at WalMart or a US Post Office (as a debit card
purchase with PIN), deposit the money order in a bank account. Withdraw cash. Get a "Amex
Prepaid Card for Target" and charge $1000 loading it at Target in-store, then go to an ATM and
withdraw cash. Buy a MoneyPak card with a credit card. Deposit MoneyPak card into PayPal. Use
PayPal debit card to withdraws funds from ATM. Buy $500 Vanilla Reloads at CVS. Order an AMEX
Bluebird Card. Load the Vanilla Reloads onto there. Mail a check to yourself.
8. Buy Stock (Best option for quick and low-cost cash out)
Use Fidelity.com or other online brokerages to buy stock using credit cards. Then sell stock and
deposit funds into a checking account. The checking account needs to be with Fidelity for quick
access to funds. Fidelity offers no fees trading for one year. They also offer an average $20,000
Signature Visa with 0% for 12 months
9. Short Term Personal Loan (nice option but does impact UBF approvals)
Get a personal loan deposited into your bank account and pay it off with your credit cards.
Compare sources
at http://www.bankrate.com/funnel/personal-loans/personal-loan-results.aspx?market=1266 Ma
ny of the banks and credit unions have this feature. With Wells Fargo, you can open a $25,000
personal loan and have it deposited within days, then pay it off with any Credit Card obtained
even a new Wells Card.
10. Venmo
https://venmo.com/ Like Amazon, PayPal, Google Wallet. Pay anyone anywhere. There is a 3% fee
to load an account from a credit card.
11. Plastiq
https://www.plastiq.com/ is one of the best services available to pay anyone from your credit
cards including; rent, payroll and those others items or services that do not accept credit cards.
12. Melio
https://www.meliopayments.com is another service that lets almost any bill be paid via personal
or business credit cards.

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Become A

Board Certified Business

Quick Start Guidance - Sound Like A Pro ....................................................................... 6

“Designed to help you sound like a business credit pro immediately”

Quick Start - Strategy To Earn $15,000 + Per Client

Let’s Jump Into The Steps …

Step 1 - The Success Scan

Step 2 - Credit Analysis

Step 3 - Credit Union $30,000 To $90,000 Signature Term Loan(s)

Unify https://www.unifyfcu.com 877-254-9328 Hard pull

Step 6 - Business Credit Reporting

Step 7 - A Low 5 Bank Rating

Step 9 - Lender Compliance

Your Second Payday Is Within A Few Weeks ...

Step 10 - The $50,000 To $100,000 UBF

Step 11 - Personal & Business

Step 12 - Your Second $5,000 To $10,000 Earning

Step 13 - Success System Coaching

Step 14 - Earning Another $3,000 To $4,000

Step 15 - Affiliate, Reseller, or White Labels

Step 16 - More Earnings At 6 Months

Step 17 - More Earnings At 12 Months

• Lenders Sell Your Loan In The Secondary Market

• Lenders Check The Small Business Financial Exchange

• There Might Be a UCC-1 Filed on Your Business

I. Business Lenders Are Concerned About Loan Stacking

II. Business to Business Credit

III. Importance of a Bank Rating

VIII. Viewed as a High Risk of Default

I. About Corp Only Financing

II. Business Credit in Contracts

III. Valuable Comparable Credit

XII. Have You Heard That Business Credit is a Myth?

• Owner’s Personal Credit

• Approvals, Amounts, Rates, & Terms

XVI. Importance of Debt to Income

I. Critical Balance to Limit

II. Credit Cards on Your Own

III. Importance of Having Personal Cards

XX. 3 New Inquiries in the Last 90 Days and You’re Done

I. Business Credit Only Reports When You Use It

II. Lenders Computers Are Doing The Checking

III. Being Found On The Internet

I. Business Credit Is Not Like Personal Credit

II. What Can Happen If You Trademark Infringe

Wells Fargo Bank - Separating Personal and Business Finances

Your Business Must Have 3 Separate Business Credit Reports with:

Experian Equifax Dun and Bradstreet

6 Steps To Building Business Credit

Steps 3, 4, 5 & 6 are where you actually build business credit.

Step 1 - Setting The Foundation For Building Business Credit

Step 2 - Optimizing Your Banking, Assets and Revenue To Maximize Fundability

Step 4 - Vendor Credit (Net 30 Day Accounts)

Step 5 - National Revolving Credit Card Accounts

Let’s begin with Step 1 on the Next Page…

Step 1 – The Foundation

Step 1.1 - Setup Structure

Making Sure Your Business Is Ready To Build Business Credit

1. Dun and Bradstreet - Credit Name Search