Business tradelines are different than personal tradelines. That said, you’re probably interested in them for the same reason: you need better credit for business funding.
This page isn’t designed to sell business tradelines. It’s designed to answer questions that will help you focus on your goals (rather than be sidetracked into gimmicky terms). Here are the most frequently asked questions and answer for business trade lines.
Literally, yes. However, this question usually isn’t seeking a literal answer. “Tradeline” means “account.” And, businesses have “accounts.” So, yes – there are tradelines for businesses.
But, when our clients ask this question, they’re really asking something else. They’re asking: “Is there a product I can buy which will add tradelines to my file for business purposes or to my business credit for business purposes?” The answer to that question is “no.”
However, if the purpose is to further your business goals, such as funding and loans, then there is an indirect answer. You can purchase authorized user tradelines (a/k/a tradelines for sale). These tradelines can increase your personal credit score, helping you secure a line of credit for your business.
Yes, they are legal… in a sense. It is legal for businesses to have accounts (i.e. tradelines). However, if you mean to ask about the legality of adding business lines of credit to a business credit file for a fee, I don’t know. This service isn’t offered, so there is no way to determine if it is legal.
However, whether or not it would be legal if it existed is another question. You’re better off establishing good credit and signing for your business loans and funding efforts.
Yes, it just takes forever. Banks have slammed on the breaks in terms of “business loans.” In fact, most banks won’t lend to you at all unless you have $5,000.000.00 in revenue.
This is why most business funding experts have focused their efforts on unsecured business lines of credit. These lines of credit are basically a credit card in the name of the company. The credit cards rely on the business owner’s (or signer’s) personal credit, rather than the business’s credit. This is the main way the business tradelines are created these days.
That’s a very good question. First, we tell the truth. If you don’t achieve your goal, you’ll be upset with us. So, one of our main purposes is to make sure you’re on the right track. If we can’t help (such as credit repair, debt settlement, funding, etc.), we will tell you and – more important than tell you what to do – we will tell you what to avoid (like CPNs, etc.). So, as far as business tradelines go… it’s irrelevant; we’re going to look at your credit situation, your goals, etc., and make a recommendation. It doesn’t matter what we call it… we’re focused on your goals.
Please contact me at [number deleted]
Eliott,
I’ve edited out your number, because this is a live comment area. However, I will have one of our people reach out to you concerning business tradelines.
You’re more than welcomed to contact us and we can discuss that (free of charge).
800-431-4741
info@superiortradelines.com
https://superiortradelines.com/start/
Thanks!
What’s your thoughts on personally guarantying a shelf corp?
Hey Jaleem! Those are typically two different things. In terms of business tradelines, a “personal guarantee” usually refers to a person placing their personal credit as collateral for a business loan. This is similar to co-signing for someone with no credit, but in this case, that “someone” is the business. On the other hand, shelf corporations typically refers to a pre-established business entity, which has not been used for a while (if ever), where the term “shelf” came from (it was put on the shelf). The supposed benefit of shelf corporations is that they are established, so (again, supposedly), you are more likely to get PADEX scores and funding from banks. This is simply untrue (or very, very often untrue).
We have a saying here at Superior Tradelines that “If you can obtain a business loan, you don’t need one.” After seeing so many people trying to obtain business tradelines and funding (with many creative efforts), it just seems to us that underwriting proceedures for business tradeliens and loans far exceeds the shelf corporation and personal guarantee techniques.
Most banks – depending on the funding goal – require many years of profit generating history, $5,000,000.00 in revenue, etc. So, the days of “PAYDEX = Loan” are over (if they ever existed in the first place).
I am kinda rambling here, but you did ask for my thoughts 🙂
Here’s my recommendation: Often times we look for solutions to goals and get yanked down the rabbit whole of options and lose sight of our goals. Smart people – like you – tend to be the victims of that because they overturn every rock (like personal guarantee and shelf corporations). You should “google earth” your situation (draw back with a larger view) and figure out what you need, specifically. It might not be funding at all (maybe, I don’t know). Superior Tradelines never borrowed a penny, for example. So, unless you have a unique situation (require expansion with trucks or paint supplies or machinery), focus first on income, make what you do make money… because, borrowing money is the opposite of making it.
Again, sorry for the rant, but those are my thoughts.
How much weight do business tradelines have? From what I understand it seems that banks and lenders look at many different factors. 1 being personal credit first. Then they have a checklist of qualifiers.
Is it possible to add tradelines to business credit? I’m looking to improve my credit so I can fund property flipping/rental projects.
Thanks!
This is an interesting question. First, in my opinion, the only reason you would purchase a property under business name is for tax or legal purposes… not for credit approvals. Second, it is simply not true that it is easier to build business credit using tradelines. In fact, it is not easier to build business credit using tradelines. The only way that it’s possible to build business credit using tradelines is in the case that you add tradelines to your personal file and then personally guarantee business lines of credit (such as unsecured business lines of credit).
In addition, banks – when considering mortgage lending to businesses – require certain underwriting guidelines such as two years of positive cash flow, equity, etc. Therefore, it is unlikely the business entity will open a door to expedited property purchases and flipping. However, as discussed above, depending on the amount you need, and unsecured business line of credit is a pretty good idea.
I’ve been personally involved in property transactions and have many, many friends in the industry of flipping houses for profit. If they were answering this question, they would say to start out small and acquire experience in the industry before you acquire substantial operating capital. Another tip, look for investors in the area to conduct the same business which you would like to conduct an volunteer to assist them in their next project. This experience, will likely be much more valuable than a bank lending you money.
Nevertheless, there are banks that will lend to you under certain conditions. For example: