What is Business & Corporate Credit?
A free video tutorial from DaJuan Marshall
"Evolve! Let's not reinvent the wheel."
4.2 instructor rating • 1 course • 922 students
Learn more from the full courseUsing Business Credit to Invest in Real-Estate For Beginners
Learn how to use business credit to invest in Real-Estate to make your dreams come true!
50:26 of on-demand video • Updated June 2018
- Students will learn who to work with to establish business credit.
- Students will understand what it takes to qualify for business credit.
- Students will learn the difference between business and corporate credit.
- Students will have the resources needed to setup a business for free in any state. (You will have to pay state filing fees)
- Students will understand how to convert credit into cash.
- Students will learn how to use business credit to invest in real-estate.
- Students will have access to resources needed to get started in real-estate no matter their level of experience.
English [Auto] Welcome back. Moving forward in this lesson I'm going to talk about the core concept and the differences between business and corporate credit first just what business credit is and then I want to talk about corporate credit the business credit. Think of this is as separate from your personal credit report or personal credit. So it's not tied to your personal credit. In other words if you are running a business or if you have a company and that company obtains a credit card or other loans for instance that will be considered as a business credit these soft inquiry on personal credit is conducted when someone wants to check your credit score. So even if you have let's say some type of business credit that may or the financial institution for example may wish to actually take a look at your personal credit just to make sure that your credit score is adequate the business credit like I mentioned earlier comes in form of business credit card some fairly straightforward and pretty common and this can be used for anything. Right. So you're not limited to using your business credit cards to something buying personal for instance right. You can buy anything that you wish to buy from your business credit cards. So as mentioned earlier you can use your business credit anywhere you like. And the good part is that it does not affect your personal credit rating right. So there's no reporting to personal credit since it's not tied to your personal credit. It's a separate entity so to speak. You can also increase limits every three to six months so as you progress with your business credit lines for example or your business credit card the limits can be increased. So initially could be a thousand dollars for instance as we progress forward in the next three months. It could increase to $5000 to $10000 and so on and it is important to note that there are new businesses can qualify for up to $250000. And the reason why is because new businesses are considered zero to three years old. In other words they have yet to establish their credit history. So you can get business credit for newly established companies for instance if your company is older than three years. Then the company can qualify for up to five hundred thousand dollars in business credit. So for companies all that and you don't have any delinquent payments or bounced checks for instance. In other words you have adequate good credit. Right. You can go up to almost half a million dollars. So this is really what business credit is all about. Next let's take a look at corporate credit the corporate credit is available of course through credit cards lines of credit bank loans or trade credits. So this is sort of like an extension of business credit right and gives you more power credit cards lines of credit and bank loans are available through various banks and financial institutions like any local area or any where else trade credit is little different. Unique is when established or incorporated businesses create lines of credit for other established businesses. So think of this is as let's say of a company and you wish to obtain a trade credit. In other words money for your business. So the bank or the financial institution would extend the lines of credit. What that means is they would say for instance we give you ten thousand dollar worth of line of credit that you can actually use for any of your other businesses. So that essentially is corporate credit. So the basic difference right and that's important to understand and know the core difference between business credit and corporate credit. So just to recap the core difference between business and corporate credit is that business credit is backed up by your own personal credit profile or the client's personal credit profile. And that can take up to two to four weeks to establish as we talked about whereas corporate credit. On the other hand is not backed up by your personal credit. Rather it's backed up by the company's credit profile which can take months or years to establish as we talked about it could take about between 0 and three years to establish or longer. So just wanted to recap the core differences between business and corporate credit. So I hope this helps us move to the next less.