How to Get Business Credit with BAD Personal Credit

Business credit is something you must build if you have any business type, especially a real estate business. I started building businesses back in 2007. Each one has its own separate business credit and the ability to obtain money.

When you have a social security number, when you go to get a loan, the broker will have to run your credit and make sure you have a good credit score and history. If you have a 500, that doesn’t look as good as having a 750. As a business, you can and should have a way to build and establish credit. 

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Benefits To Having Business Credit

It Builds The Value Of Your Company

Your company is worth more if you have good credit.  A company would buy other companies mainly for their business credit. I have a friend who sold his business mainly for the purchaser to utilize the credit that his business had built.

Flexibility within your business to utilize credit over cash because cash is king. If you run out of cash, your business is going to dissipate. Instead, you should use the credit to buy another property, build manufacturing, or do anything you may need to do in your business.

In this case, you would be building your business using other people’s money.

I love to use other people’s money because I have built my business faster and have flexibility over cash.

Flexibility Over Your Cash

Let’s say you needed to buy inventory, and you only had $100,000 in cash but needed $150,000 to buy the inventory to run your business. Instead of using up all over your cash, you can get $150,000 in credit.

The great thing about business credit is it is not attached to you as a person. If the creditors come after the loan amount, they can’t always go after you as a person. They can but I am not an accountant or a lawyer.

The credit allows money to flow in and out of your business.

This is not the same, however, as your cash flow of you making money. It is just the flow of money to be utilized for growing the business.

You have to spend the money to make money, and hopefully, you are making a profit. 

For example, if you are buying inventory, you need to have money to buy more inventory. 

Business Credit Limits Are Much Higher Than Personal Credit Limits

As a person, a company could approve you for a credit card with about $10,000-$15,000 or so. Some can even be as high as $25,000-$30,000, but that is probably as high as you could get.

If you have business credit, you can potentially have $100,000-$300,000 as a limit or more. 

Better Interest Rates for Business Credit

Banks want to do business with people who own companies because companies make them a lot of money. They make them a lot of money because they are usually borrowing so much money at one time. 

Better Terms

Terms for business credit are far better than that of personal credit. With better terms, you can utilize the money even better than with personal credit terms. And again, the money is not attached to you as a person.

I have business credit that I use to purchase properties and even to refinance properties. For example, I have five properties that I bundle into one commercial loan with my business credit. I pull all of that money, and then I bought more properties with it.

People may say that if you buy ten rental properties, you can’t get the 11th loan. The IRS or the government stops you from getting that 11th loan, and I agree. But here is a big pro tip:

Pro Tip: Use A Bundle Commercial Loan For Your Properties

Let’s say you bundle five properties into a commercial loan, that frees up five more loans for you to have access to. Commercial loans are fantastic, but you need business credit to get them. 

Two Separate Credit Histories

If you have a business with its credit history, it is separate from your personal credit history.  Let’s say you have a ding on your personal history from a missed payment. Your history will be affected, but your business credit will not be. 

Signing Bonuses

The signing bonus for business credit is so much greater than personal credit. Here is a great example. I signed up for a credit card with American Airlines, and they maybe gave me 20,000 airline miles.

A couple of months later, I got a business credit card that offered 60,000 just because it was a business credit card. It was so good that I got my wife her business credit card, and she also received the 60,000 miles.

With those miles combined, we flew from Phoneix to Florida for all six people in our family. It was about $2,500 in flight costs. We flew from Phoenix to Florida and drove up to New York on a four-week trip because I don’t have to work. 

Then we flew from Washington, D.C. back to Phoenix, saving us $2,500 in flight costs from those miles. You are going to receive so many more benefits if you have business credit. 

You get more airline miles, more cashback, more start-up rewards, more perks, and benefits with business credit. 

How To Get And Build Business Credit

Step 1: Talk To Your Lawyer and Accountant

I am not either of these, so make sure you talk to the experts.

Step 2: Start An LLC

You can start one in any state, and the process is fairly simple. Here is a guide to quickly create your LLC. 

Step 3: Get Your EIN Number

This is your Employer Identification Number and basically what it is, is your business’s “social security number.” You get that number through the IRS, and it is simple to do. They have an online process that is super simple to do. You can Google “EIN apply,” or you can go here.

Make sure you are on the actual IRS website because many scammers will charge you money to do it when it is, in fact, free to do. 

Whenever you are doing anything for your business, you would use the EIN instead of your social security number. Make sure to use your business name and LLC and your EIN, and every time you do, you are establishing business credit. 

As with any debt, make sure you pay it off in time and don’t miss payments. That will ensure that you are holding good credit, increasing the benefits you will receive. Doing this will prove that your business is making money and you are paying back on time, ensuring companies will loan to you repeatedly. 

The sooner you create a business EIN, the sooner you can start building credit even if you don’t use it immediately. I got all of this started for my businesses in 2007.

Now 12 years later, I have such good business credit that I have numerous great offers from lenders. When I look for money, the lenders give me as much as I can get. I have one credit line for $200,000, and I don’t need that much, but it is available if I did.

An Option To Build Credit

There is a great company that I am referring you to that establishes your LLC, your EIN, and establishes business credit for you. In addition to that, they also get your cash in hand from your business credit.

Fund and Grow

The company is called Fund & Grow, and I have referred many people to them. They have gotten business credit for a lot of people. What they do is get business credit cards, and you can take them out in lines of credit, withdrawal cash, and even wire transfers. 

They are great, and I have a promo code for my listeners to utilize. If you use my promo code on your application for Fund & Grow, it will give you $500 off their entire process. I am an affiliate for them, but they don’t pay me any money.

You just get the discount by using my promotion code: MASTERPASSIVEINCOME 

I have a real estate investing business and invest in real estate to make me $250 a month of passive income. If you want to learn how I did this, check out my free course at

In the course, I show you how to find properties, fund them, how to do it right, how to make $250 a month in passive income, make it an automatic business, and how to quit your job.      

With my business of 30 properties, I went and bought cell phones. When I have bought them as an individual, I got a couple of perks. But when I bought them as a business owner, I got so many more bonuses with my business credit.

They asked if I had a business, and when I said yes, they gave me an extra $200 off each phone. Not only that, they lowered the total monthly rate from $120 to about $90. 

Business credit allows you to get more perks from companies on top of building your business’s credit history. 

Other Ways To Establish Business Credit

Establish Trade Credit With Other Companies

If you are working with a company that extends your credit, let’s say a company like Uline who sells boxes and shipping materials, and you open an account and work with them. Just by working with them and using their credit line, and not missing any payments, you are building your business credit. 

Another example for you, or even if you are teaching your children to build credit, is getting a gas card. Everyone needs to buy gas so get a card to use and don’t miss any payments. This will help you build your credit history.

Even places that sell office supplies have credit cards that you can use for your supplies, and then build your credit that way. 

Establish Retail Credit

As a real estate investor, I shop at Lowe’s or Home Depot. You can get business cards and lines of credit by signing up with your EIN. 

When you are establishing business credit, be sure to pay off your credit every single month. You do not want to be charged interest and pay more money for the things you bought or go into any debt.

Doing this will ensure that you are growing your history and enabling lenders to offer you even more credit with higher limits. I use the credit I have to buy rental properties, and those properties make me money.   


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