There are five big ways you can improve your business credit. Today’s guest will discuss how it is slightly different than your personal credit, why it’s important for your business, and how to separate the two so they don’t get mixed up!
Ty Crandall is the CEO at Credit Suite, a leading finance software and business credit company in the country. Ty and his team help clients build their business credit and help them get financing.
When Ty experienced the 2008 market crash, he saw first-hand what it was like to build a successful business and then see it disappear. His revenue had dropped 90% and he couldn’t serve his clients as effectively anymore. He had no idea that business credit even existed at the time, much less know how to keep both his personal and business credit separate.
Ty signed everything to his personal credit, so when business was down and he was forced to default on payments, creditors were now able to take assets directly out of the company. It was a mess. Once the creditors couldn’t get any more money out of the company, they then went directly for Ty’s personal assets. He lost everything.
Fortunately, Ty was able to get out of it and he knew he had to help people fix their credit and repair the damage the economy had caused on them. He didn’t want anybody to go through what he went through. This is why he is in the line of work that he is in today.
At the time, there wasn’t a lot of information about corporate credit. Ty had to dig deep to find out how to obtain it, how it worked, and how you could use it to protect your personal assets. Ty was blown away by the various ways you could protect yourself and the financial opportunities you could have with business credit.
Ty walks through the five steps that will improve your business credit:
Step 1: Set up your business correctly!
Step 2: Do a free check with all the reporting agencies.
Step 3: Start building vendor credit.
Step 4: Start building store credit.
Step 5: Start building fleet/vehicle credit.
By doing these five steps, you build enough trust with the banks where you can qualify for loans and credit lines for your business. Step 1 is often the hardest part, but once you have it completed, building business credit is actually quite easy!
Interview Links:
Creditsuite.com
Creditsuite.com — D-U-N-S® Number
Creditsuite.com — Monitoring
Ty on LinkedIn
Resources:
Scaling Up for Business Growth Workshops: Take the first step to mastering the Rockefeller Habits by attending one of our workshops.
Scaling Up Website
Gazelles Website
Bill on YouTube
TWEETABLES:
“I ended up being very successful at a young age and then systematically lost everything.”
“A downturn of one kind or another is inevitable.”
“Having your business and your personal credit intricately tied can make it a very personal crisis.”
Did you enjoy today’s episode? If so, then head over to iTunes, and leave a review. It helps other entrepreneurs discover the Scaling Up Business Podcast, so they can also benefit from the knowledge shared in these podcasts.
Scaling Up: How a Few Companies Make It...And Why the Rest Don’t, is the best-selling book by Verne Harnish and the team at Gazelles, on how the fastest growing companies succeed, where so many others fail. My name is Bill Gallagher, host of the Scaling Up Business Podcast and a leading business coach with a Gazelles.
We help leadership teams to get the 4 Decisions around People, Strategy, Execution, and Cash right so that they can Scale Up successfully and beat the odds of business growth success. Our 4 Decisions are all part of the Rockefeller Habits 2.0 (from the original best-selling business book, Mastering the Rockefeller Habits).
