Page 108 - Winning The Credit Game Bundle (CK Patrick)

PERSONAL GUARANTOR

Most business owners know nothing about business credit and
often use their personal credit to start or grow their business.
Unfortunately, about 29% of businesses fail and end up costing
business owners their personal assets, savings accounts, and
personal investments in the process.
This book teaches an alternative way to master business
credit so that it does not hold you, the business owner, person-
ally liable for the business’s debts and commitments. “No
personal guarantee” means not risking your home or your vehi-
cle, or having to mix finances.
Opting out of being a guarantor will also protect you from
losing credit score points caused by multiple hard inquiries
when applying for business credit lines, for example. This means
you can continue to enjoy excellent personal credit and all the
perks that come with it even as you rapidly open new lines of
credit for your business.

TIER 1: NET TERM VENDOR ACCOUNTS

Nearly all businesses that buy supplies from vendors have some
sort of basic trade credit. These are credit lines where vendors
and suppliers agree to allow businesses to purchase supplies and
equipment on credit and pay them back over time. These can
include vendor credit, retail credit, and equipment leases that
usually come with a net 10, net 15, net 30, or net 60 trade
account.
“Net” here means the full amount of your invoice is due
within the number of days specified. Net 10 or net 15 accounts
must be paid off in as little as 10-15 days after your purchase or
when the invoice is sent out, while net 30s or net 60s may afford
more time.
To start building your business credit, I recommend using net
30 accounts. This is because these accounts offer a good balance
of time and speed. Also note that in order to activate the

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