Credit expert Gerri Detweiler is education director for Nav. She’s been interviewed in 3,000+ news stories, answered 10,000+ credit questions online, written hundreds of articles, and five books.
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3 Value Bombs
1) You don’t have to have a physical product business to benefit from business credit
2) Don’t use your personal credit card for business expenses – get a business card!
3) The key difference between personal and business credit is there is no regulation around business credit reports – anyone can check your business credit
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Today’s Audio MASTERCLASS: Business Credit: It exists, and it can help your business grow with Gerri Detweiler
[1:22] – Share something interesting about yourself that most people don’t know?
- I have fostered over a hundred kittens in my home.
[2:36] – We’ve all heard of personal credit, but what is business credit?
- “Commercial credit” is essentially a credit report about your business.
- Most entrepreneurs have no idea what business credit is, and that’s Gerri’s goal: to inform entrepreneurs about why it’s so important
[3:38] – Why is business credit important, and how is it used?
- One of the most common ways that business credit is used is called “vendor” or “supplier financing”; tune in to hear a real-life example of this!
[5:21] – Do you have any experience with crowdfunding? And how does it differ from vendor or supplier financing and credit?
- Crowdfunding can be a great tool for entrepreneurs
- Some entrepreneurs do it not because they need the money, but because they want to test their marketing and see if their idea will work
- You don’t have to have a physical product business to benefit from business credit
[8:24] – How would I utilize business credit? (JLD asks Gerri about his situation with creating / sourcing The Freedom Journal)
- There are three things to consider when you’re thinking about financing to grow your business.
- First is your credit – business and personal
- Second is revenue
- Third is time in business
[10:45] – Who are the credit bureaus that compile business credit reports?
- There are several, including Dun & Bradstreet, which is the oldest credit bureau in America
- Tune in to hear Gerri dive deeper into the credit bureaus and how they work!
[11:30] – What are the key differences between business credit and personal credit?
- The key difference is that there is no regulation around business credit reports – anyone can check your business credit
[12:37] – Where can small business owners get their business credit reports?
- You can get your business credit reports from any of the major business credit agency
- Nav works hard to bring transparency to business owners through providing business credit reports
[14:13] – Breakdown how Nav works?
- Most small businesses come to Nav to get their free business credit scores, but they also offer an entire marketplace to help business owners understand how to position their business to get financing now, or better financing in the future
[15:13] – With personal credit we deal with things like payment history, debt, and inquiries that all impact credit scores. Is it the same with business credit scores?
- One thing you don’t have to worry about too much with business credit inquiries is that most models don’t look at that, so that’s not an issue.
- They look at the payment history; some business credit scores are all just payment history.
- It’s much more granular with business credit than personal credit.
[16:47] – So what’s a good business credit score?
- One hundred is the lowest risk – the best score you can get is if you’re in the eighty to one hundred range.
- There’s also a FICO Credit Score and it runs from zero to three hundred – three hundred is the top score you can get.
[19:37] – What’s the #1 mistake you see entrepreneurs make when it comes to their credit?
- The #1 mistake I see business owners make is they use their personal credit.
[22:21] – Is there a business credit card that you enjoy using most?
- I want a card that’s going to give me a status of miles in south west.
- Chase has some great credit card.
[23:52] – Parting piece of guidance for Fire Nation…
- Building business credit takes time, so you want to start before you need it. That way, when crisis or opportunity comes along you’ll be prepared.
[24:13] – Where can we find out more about Nav?
- Nav – Sign up for premium account and use code ‘fire’ for a free month!
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