Get a Business Loan for a Tradeline

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  The Business Loan

  Getting your first business loan from a bank can seem like a very difficult task. The majority of the business loan applications at banks get declined because banks have much tighter restrictions in today’s lending market.

  Having a business loan from a bank can provide a powerful boost to building business credit fast. When applying for a business bank loan it needs to be in the exact name of your business. It should be under your Federal EIN and report to the business credit reporting agencies, specifically Equifax Small Business and Experian Business.

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  How to Get a Business Loan (Easiest Method)

  In this task you will be securing a business loan with a certificate of deposit (CD) at the bank that is extending the business loan. You’ll make a deposit into a CD account at the selected bank and use the CD to secure the loan itself.

  With this strategy there is no risk to the bank since you are putting up the CD as collateral for the business loan. Then, you receive a business loan for 100% of the value of the CD.

  The process works very well and works every time so long as your personal credit is at least favorable in the 680+ range. The bank is not basing your business loan on your personal credit, but if your FICO® scores are in the low 500 range they may not do this deal for you. If your scores are low it is best to try small business banks and speak with an individual banker first.

  So where does your deposit come from? You can start with as little as $5,000. There are various ways to obtain the money needed for the bank CD deposit: family, friends, savings, garage sales, or any of the creative funding programs in the steps that follow.

  The Features of a Secured Bank Loan:

  1. It will appear on your business credit report just like any other loan.

  2. There will be no note in your file, or on your business credit reports, that show it’s “secured”.

  3. It will make your business credit report stand out to other banks and lenders who obviously know how hard it is to obtain a business bank loan.

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  Helpful Suggestion

  If you have to borrow the money you need for this step from friends of family, you can assure them that they will get their money back. Here is how that works:

  1. You borrow the money for the CD to secure the business loan.

  2. The bank then issues you a business loan dollar for dollar.

  3. Deposit the money from the loan into a separate account and use it exclusively to re-pay itself.

  After the final payment, you can return their money with interest. Remember, their money is in a CD earning interest. This technique gives you a very large push towards building excellent bank credit and business credit reports.

  Not Able or Not Interested Right Now?

  If you feel doing the secured bank business loan is a premature step in the process for you, or if you simply cannot find a business bank to do the CD program for you, don’t worry. You can still build your business credit without the CD-Secured bank loan, it just expedites the process and it could be a factor once you get to the end of the final step.

  But you can always return to do this program later. Either way, let’s keep moving forward.

• 1

  Task to Complete

  Gather Funds to Obtain a Secured Business Loan

• 2

  Task to Complete

  Select a Bank that Does a CD Secured Business Loan in Step 2.6