Credit card financing is a consistently popular way for small business owners to finance startup and expansion. In fact, four out of five small business
owners today use credit cards to start or grow their businesses.
Widespread myths and misconceptions about credit card use mean that although most small business owners use credit cards for business
financing, the majority aren’t using credit cards the right way. As a result, small business owners aren’t fully taking advantage of credit card
financing’s potential to help their businesses grow.
If small business owners understand both the risks and the benefits of using credit card financing, they can take advantage of benefits including easy
access to low-cost capital, keeping personal and business credit separate, preserving and improving their personal and business credit profiles, maintaining positive cash flow, maximizing tax breaks, minimizing interest expenses and preserving precious collateral.
When small business owners learn the truth about credit card financing, they can use it the right way to get the capital they need without putting up
collateral. When done correctly, this will benefit their cash flow, their companies and the economy as a whole.
Hello, thank you for your interest in PrimaryTradeline, below is a synopsis of our process. 😊
First, we have been in business for over 10 years. PrimaryTradeline specializes in Unsecured Business Lines of Credit. Our minimal allowable amount to borrow is $25,000 and ranges well into $150,000. As an example, you would be able to draw any amount needed from the account, up to your established limit. If we help you establish a $50,000 line of business credit for example, and you decided to pull $30,000 of it, you would only pay on what you are using and it would become available to use again as you pay it down. These are revolving lines of credit and there are no pre-payment penalties.
Our credit check platform is called the “Instant Decision Platform” and it is a soft pull that will not harm your credit in any way. This is similar to signing up for a credit monitoring service and only takes minutes to get! If you are interested in our program, please feel free to return my e-mail and I will gladly help “tee it up” for you and give you a personal call at home. We will need to get permission from you on a recorded line to access the Instant Decision Platform on your own pre-qualification. Afterward, we will schedule you a no-obligation consultation with one of our FICO certified Advisors who will review your scenario in a fiduciary capacity to help you access the working capital you need at a time that works best for you. We also offer other options, such as Equipment Financing, SBA, PO Financing, Merchant Financing and a Traditional Line of credit. I have attached a link to our website: WWW.LENCRED.COM
I do not quote rates, I simply onboard clients. If your credit passes our soft inquiry, I will set up a consultation with an advisor who is authorized to quote rates. I need your permission on a recorded line to do the soft inquiry. It will not appear on your credit report. More often than not, we can perform the soft inquiry off of the name, mailing address and date of birth. Very rarely would we need a social security number. I do not see the report, Our in-house program will notify me if we have offers based on the report or not. If you provide the necessary information below, I will call you to read a
PrimaryTradeline Basic Information and Process
disclaimer to you and schedule the consult. Out of respect for your time, I
can have you off of the phone in under 3 minutes.
Because you submitted an application, I'd like to help you move forward as
quickly as possible.
The information below will help me save you time by reducing the call time
for the total prequalification process!
Please Reply with the answers to the bullet points below, when you're ready
to start receiving capital.
• Name of Business:
• Type of Business:
• Desired Funding:
• E-mail Address:
• Home Address:
• Full Name:
• Phone Number:
• Annual Household Income:
• Date of Birth:
Ideal Client Persona
• Time in Business- Start Up’s with $0 in revenue all the way to companies established for 2+ years with revenues up to $250,000.00 are probably the most ideal.
• Type of Business- High Risk, Low Risk, any risk type is ok but there will always be small differences between the funding of a high risk and a low risk business but not substantial enough for you to focus heavily on this.
• Capital Needs- Start Up and Working Capital between $25,000-$150,000 is going to be ideal. If they’re looking for more than that or they’re looking for capital for installment-based purchases such as buying a major piece of equipment, purchasing a house, or buying a business Credit Card Financing definitely isn’t going to be ideal (It’s still doable but it gets a lot messier at that point).
Ideal Credit File
Age of File-
• 5 years should be the minimum file type you run through a UBL program
• 10 years and beyond is ideal
• 12+ is the cherry on top of the icing on the cake
• 0 is ideal
• Up to 3 no matter the type within 6 months is acceptable
• Anything over 3 will become more and more complicated and cause more and more denials for a reason such as “too many recent inquiries”
• If they’ve applied to any Credit Card lenders that we would apply to (it doesn’t even have to be the same card) can cause us denials for multiple applications on file thus leading to less total applications being permittable for a plan
• More than 2-3 late payments in a 2 yr. period will be a huge issue for lenders (especially business lenders).
• When they are greater then 2 years old the negative impact is much less severe but more than 5-10 greater than 2 years old will start to cause denials based on a late payment pattern.
• 0 negative accounts (paid or unpaid) is ideal
• 2 or less paid negative accounts is acceptable but will cause some denials or lower approvals if the rest of their credit doesn’t offset the impact of the negative accounts
• 3 or more negative accounts (paid or unpaid) is going to start to feel like rolling the dice when it comes to the success of an application plan. At that point if their credit score and income aren’t strong it could cause the majority of applications to be denied
• 30% is the rule of thumb. Anything over that performance will be inconsistent and is a credit by credit basis at that point.
• The lower the utilization the higher the score and the better the funding results will be
• The rule we try and use is overall revolving at 30% or below and no individual tradeline over 50%
Most entrepreneurs and small business owners need financing to start, build and grow their businesses. When acquired and used properly,
financing is an investment in growing your business to achieve your goals and dreams. Acquiring financing incorrectly or using it poorly,
however, will hinder your business’s cash flow, damage your business relationships and hurt your chances of business success. Getting financing is difficult for established companies, and even harder for startup and fledgling companies in their first two years of existence. Because they don’t fully understand their business credit and financing options, many small business owners make mistakes such as paying too much for financing, needlessly giving up ownership or control in their business in exchange for financing, pledging collateral unnecessarily or pledging too much collateral.
When you understand your business credit and financing options, and you work with a trusted advisor who understands them, you greatly
increase your chances of getting the right kind of financing to start, build and grow your business.
According to the National Federation of Independent Business, 79% of small business owners use credit cards. Additionally, according to the Meredith Whitney Advisory Group, 82% of small business owners use credit cards as a vital part of their overall funding strategy. So, depending
on who you listen to, about 4 out of every 5 small business owners are using credit cards and probably on a consistent basis to start, build, and grow
It is unofficially estimated that less than 15% of those small business owners are using their credit cards the right way to get all the benefits out of
them and ensure their future success. This means, among other things, that they use the wrong credit cards, they damage their credit profiles and
FICO scores, and they limit their ability to acquire additional financing in the future.
By learning the 6 Benefits of Borrowing the RIGHT
Way small business owners will be able to:
• Access additional Capital
• Separate their personal and business credit
• Achieve or maintain excellent personal credit
as they build their business
• Find Cash-Flow friendly loans and lines of credit
• Minimize their interest expenses
• Maximize their tax benefits
When you properly obtain your financing you will not only take full advantage of the 6 Benefits of Borrowing the RIGHT Way but by ensuring that
you maintain or improve your credit profile, you’ll ensure your ability to obtain additional capital in the future as your business grows. More importantly, you don’ t have to worry about one of the main reasons why businesses either can’t grow or fail completely: lack of access to capital. You can focus on what you do best and grow your business.
When looking for “unsecured” capital for your business you want to have these goals in mind. Ideally, you would want to accomplish as many of these goals as possible.
1) Access Capital – This is the obvious (and to some people the ONLY) goal when looking for cash for your business. You need money to start, build, grow, or maintain your business so you need access to some capital. Pretty simple.
2) Separate, Preserve, and Improve your Personal & Business Credit – This process is like anything else…you can do it the right way or you can do
it the wrong way. The RIGHT way is to separate your personal & business so that all or most of the business loans and lines of credit do not show up on your personal credit report. There are some circumstances where you will actually benefit if some credit lines appear on your personal credit as well but this depends on a few different variables and each person’s situation is different. This is not one size fits all.
3) Achieve (or Maintain) Excellent Personal Credit Profile – This means you want to keep your high FICO scores, maintain low DTI’s (debt to income ratios), have a low credit card utilization percentage (since this is 30% of your FICO score), & keep a minimal amount of inquiries on your credit report.
4) Cash Flow Friendly – For Entrepreneurs and small business owners cash-flow is king so you want to borrow money in away that is as cash-flow friendly as possible. When borrowing money be mindful of yourbudget in all things. For example, if you borrowed $50,000 and had to pay it back at $10,000 per month this would not work for most people because of the high monthly payment. Of course you have to pay the money back but try to get the most favorable monthly payments based on your lending options.
5) Minimize Interest Expenses – Would you rather pay more interest or less interest?
It’s pretty simple. The only way this can get confusing is if you don’t actually understand your options. In other words, just because John got a rate of 7% doesn’t mean that you can qualify for that same rate. If you need capital then you learn your options and take the best options available to you. Sometimes you don’t have a lot of choice but this one is easy when you know and understand your options.
6) Maximize Tax Benefits – We see this one ALL THE TIME. The vast majority of people miss out on tax benefits because they don’t borrow money the RIGHT way. If you’re using a personal loan or line of credit or credit card then you probably don’t qualify (or should not qualify) to write off all the fees and interest associated with using these funds. Do you think the wealthy write-off all the money they borrow for their businesses? Why don’t you? Of course you’ll want to consult with a tax professional for the details here but don’t miss out on this one! We’ve done this for thousands of people over
the last few years so we’ve seen these scenarios many times. We find that the number one issue or concern people have is that they are not sure what their unsecured lending options are. We can help you to understand what those options are and then, once you clearly understand these options, you can focus on borrowing the funds properly. When you do borrow your funds properly then you’ll be able to take advantage of many – and maybe all – of these benefits. Our programs have been designed for these purposes and you may be able to benefit from our years of experience and also from the fact that we’ve worked with thousands of entrepreneurs & done thousands of applications with all the top national, regional and local lenders in the country.
At PrimaryTradeline we have experience working with partners of every shape and size, from Mom and Pop 1-2-man operations as well as larger, VC- funded fintech’s that have multiple teams throughout the country that refer business to us (Lendio and Nav are 2 great examples).
When it comes to the client funding process I want to break it down by the 3 main phases a client will experience with LenCred.
Call Center/Lead Submission
1. There are a few different ways that clients can be referred to PrimaryTradeline and there are no restrictions as to which ones you can use or not use
a. API or Webhook
i. This is typically ideal for partners who don’t have a lot of interaction with their clients, but who instead utilize landing pages and online lead cultivation to obtain potential candidates. If this is something where you would like our help with creating unique landing pages for PrimaryTradeline leads or you have a dedicated section on your website for partners, we are happy to provide language there for you as well
b. Live Transfer
i. This is by far and away from the lead submission process that will yield that highest conversion. With our live transfer platform, we create unique phone numbers for your team to dial that will automatically ring on every one of our Call Center Reps phones thus creating an environment where there are a clean handoff and introduction for the client that helps with rapport building, trust, and comfort that there is a strong communication stream in place.
ii. A lot of the time it helps the reps on your end because they can then listen in on the discussion, hear how we speak to the product, and this has helped other partners in the past to shave down the learning curve thus leading to higher conversions in every phase of the program.
c. Email Submittal
i. We have a dedicated email address that routes to the entire partner relations team as well as a few leadership members in other departments to ensure there is always someone to get these over to our call centre when sent in.
ii. This option is great for the startup phase of us working together while API’s are done, live transfer numbers are created etc. but isn’t the most viable option for speed and high-quality customer service
2. Once a lead is obtained on our end the process to get qualified is simple and designed to make the clients life as easy as possible. To be clear qualified simply means that their credit is in a strong enough position to qualify to speak with an advisor, but they're still maybe work required to improve the credit.
a. The call centre representatives will speak with the client starting with confirming the relationship with us and using that to build rapport with the client to make them feel comfortable that there is strong communication between our companies
b. Once the client agrees to the one-time charge of $19.95 to do a soft pull on their credit we can qualify them to speak with an advisor within seconds. This fee is immediately refunded if the prospect does not credit qualify.
c. If advisors are available at that time we will attempt to immediately live transfer the client to speak with an advisor and if they aren’t we will schedule the client for the same day consult or at the longest within the next 24 hours 9 times out of 10.
1. Once the advisor obtains the client they will utilize a credit summary/PrimaryTradeline Custom Evaluation to analyze the current state of the client’s credit and determine if they have “Startable Credit” (credit that can qualify to submit applications) or if work needs to be done before application submission. Credit improvement that we assist with is listed below
Application submission/ Start
1. Once a client’s credit is ready to proceed to obtain the funding they will go through the following process
a. Their advisor will schedule a compliance call to verify all the personal and business information they submitted on their client profile form (CPF) and make sure they understand what they agreed to contractually.
b. This call takes place with their dedicated funding analyst who will “hold their hand” for the next 17 days during the funding program.
c. Average application plans range from 6-8 on the low end and 12-15 on the high end. The plan type is dependent upon how much funding they need if they can qualify for business financing, and a few other factors.
d. Applications are submitted either online or sent directly to a “Lender Representative” (Pre-Existing Lender Relationship) for underwriting.
e. Once applications are submitted the funding analyst works with them daily to yield the highest approval results, help with lender communication questions, and support the client throughout the “funding lifecycle”
2. After all, applications are verified as approved or denied the client will then have coaching scheduled with their financing advisor to review Phase 1 performance. Below is what takes place on a coaching call
. The client is provided with a client handbook the moment they complete disclosures that were written by our C.E.O.
i. Contents of the client handbook are as follows
1. Credit Card Management
2. Getting the Most from you New Lines of Credit
3. Cash Strategies
4. Common FICO/ Inquiry and Credit Score Impact
5. Useful Tools for Small Business Owners
b. During the coaching call, the advisor will review round 1 performance, plan for any potential phase 2+ funding the client may need and answer any questions about best practices and usage.