Ty Crandall is an internationally known speaker, author, and business credit and financing expert. He is the CEO at Credit Suite where he oversees the biggest business credit coaching operation in the United States.
With 16 years of financial experience, Ty is widely recognized as an authority in business credit building, business credit scoring, and business financing. He is the author of two popular books, Perfect Credit and Business Credit Decoded.
[3:18] What exactly is business credit?
· Similar to consumer credit
· Instead of SSN businesses use EIN
· Build up credit profile in a similar fashion
[4:12] Can any business get business credit?
· Any business can apply for credit, even if not citizen.
· Need to have an EIN number to start building credit
· Get setup with reporting agencies, need to find some vendors who report to the agencies.
[5:50] How does a business start a business credit profile and score?
· You should to start with vendor accounts
· Once the profile is established you will be issued scores
· You can then start with bigger vendors
[7:55] Can a business get credit without the owner taking on a personal guarantee?
· Correct, even a startup can mirror what bigger public companies can do
· The more trade lines you get the better, the higher the limits, the more accounts etc.
[9:30] What are the steps to build a business credit profile and score?
· Understand the set of standards that people use
· You want to give as much information as possible (knowing what they’re looking for)
· High risk names can get you denied
· Get a real business address, not a postal address
· Don’t use a home phone or mobile phone
· Every line item is a test and will be used
[13:35] How can a business owner obtain a loan to start a business?
· Revolving Credit vs Loans & Credit cards
· 3 C’s – Cash flow, Credit, Collateral
· You need to provide at least 1 and determine where you will get it from.
[16:42] How can a business owner get a loan if they don’t qualify at their bank?
· Banks only account for 2% of all funding that happens
· 98% are alternative investing
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[20:54] Are there any more books in your future?
· Not at this time, but down the road.
[23:8] Why do you think people fail?
· Business credit- people don’t follow the right order. Follow the rules.
· Generally- Mistakes are where you learn the most, should embrace them and learn.
[26:15] Do you have a favorite quote?
· “It’s good to learn from your mistakes. It’s better to learn from other people’s mistakes.” – Warren Buffett
[27:18] Any last piece of advice?
· Set yourself up to have money before you need it.