Home - The Egyptian Gazette

Board Chairman: Ali Hashem
Editor-in-Chief: Ramadan A. Kader
Tuesday, March 30, 2010
Latest Headlines: Cairo Weather: 22  13  Clear Clear   >>> More
Local market slips on retail, Arab selling
Mubarak endorses radioactivity law
Morocco:Body of Abu Dhabi prince found
G8 call for strong measures against Iran
Russia mourns 39 dead in subway blast
Zamalek claim controversial Mahalla win
POLL
The Egyptian Government should:
Scrap the Emergency Act
Wait until anti-terror bill is enforced
 
  

 

Sports
Met'eb helps Al-Ahly beat Petrojet in local league
Veteran Emad Met'eb helped Al-Ahly snatch a slender 2-1 win over Petrojet in the Egyptian Premier League on Monday night in Cairo.
>>> More
Region
Turk government sends reform package to parl't

ANKARA – Turkish President Abdullah Gul warned his own supporters in...
>>> More

World
Russia mourns 39 dead in subway blast

MOSCOW — Russians on Tuesday nervously returned to the subway stations where...
>>> More

Region
Merkel: Turkey EU talks open-ended

ANKARA --German Chancellor Angela Merkel told Turkey Monday that its membership talks with the European Union did not guarantee accession and...
>>> More

NEWSLETTER
Egypt
Mubarak endorses radioactivity law

President Hosni Mubarak endorsed Tuesday a new law to organise nuclear activities and...
>>> More

Region
Turk government sends reform package to parl't

ANKARA – Turkish President Abdullah Gul warned his own supporters in...
>>> More

Region
G8 call for strong measures against Iran

OTTAWA  – Foreign ministers from the Group of Eight (G8) leading...
>>> More

World
Russia mourns 39 dead in subway blast

MOSCOW — Russians on Tuesday nervously returned to the subway stations where...
>>> More

Sports
Zamalek claim controversial Mahalla win
Mahmoud Fathallah converted a controversial penalty to hand Zamalek a precious 1-0 victory at Ghazl Mahalla on Monday.
>>> More
Critiques
Impact of War on Language (82)
Ambush (xii), Strategic Ambush...
>>> More
Style
Harmonious curtain choices

Curtains are widely used as the first defender against dust, light and for privacy; this is the practical usage, but the decorative function...
>>> More

People
Sinai Bedouin feel sidelined

Egypt fought a war with Israel to regain control of Sinai, but nearly 40 years later Cairo has an uneasy relationship with the people of the...
>>> More

DON'T MISS
Commentary by Sami El-Shahed

Harmonious curtain choices - Style

What women want - Business

When time takes its toll - Book Review
 

Gallery


A model presents a creation by Indian designer house Charu Parashar during the Wills India Fashion Week Autumn-Winter...
>>> More


 Polish Parliament Speaker Bronislaw Komorowski (R) waves to supporters during a meeting on Saturday in Warsaw...
>>> More


Southern Yemenis wave the flag of former South Yemen and hold a picture of its former leader Ali Salem al-Beidh...
>>> More


Thailand's challenger Pongsaklek Wonjogkam (R) hits his left on Japanese champion Koki Kameda (L) during their WBC...
>>> More

Business Credit 101 If you are not yet a business owner or an entrepreneur, but aspire to be one, let me tell you one thing that puts you these kind of people above all the others: you can get two types of credit. You can get a credit as an individual (personal credit) and you can also get credit as the business owner (business credit). This is very favorable indeed for those people who want to expand their existing businesses because they would not have to depend on their personal credit alone. It might seem like they know everything but to tell you the truth, not a lot of entrepreneurs and business owners know the process of building their business credit and how it can take a toll not only on their business but also on their personal lives. In fact, a study showed that less than ten percent of these people know that. Before delving into the details of business credit, let us take a look first on how it differs from personal credit. After that, we will then proceed on discussing on how you can build the former. Your personal credit is established once you acquire a social security number and once you get a job. It could also start once your social security number will be associated with a credit card. This information will be known as your credit profile, all reflected in your credit report. More information will be added to this report if an individual changes their job, changes their address or applies for credit and all of this information is submitted to the credit bureaus by the folks who have issued you credit. As this builds up, your personal credit becomes a reflection of your ability to pay debts. A similar process also happens to some businesses. If you talk about business credit, however, it becomes different altogether. Business credit is also known as trade credit. This happens when a business or company issues another company or business credit. It has been identified to be the biggest single lending source worldwide. The information reflected on a business credit report is also different from a personal credit report. Business credit bureaus will be getting the following information: your business address, the business’ registered name, the federal TIN, which is also termed as the employer’s identification number of EIN (this can be acquired, of course, from the IRS, by the way). Aside from this information, they would also gather intel about your trade or business credit transactions. This information will be the one looked up by >>> some of the top credit building companies, lending companies, creditors, banks and suppliers and will be their basis whether to approve your loan or not or if they do approve it, how much money will they loan you. There are several business credit bureaus that furnish official business credit reports and they are the following: Experian Small Business, Dun & Bradstreet, Business Credit USA and Equifax Business. However, since there is really no requirement for businesses to submit trade credit transaction information to the business credit bureaus, it is not a guarantee that those companies mentioned above will have your business credit information. In fact, those companies may even need to rely on the business owners to submit the information themselves.



The Reason Behind Building up Your Business Credit

 

While business credit has been fully misunderstood for many years, it has also received an increase in popularity for becoming an integral part of a business. What makes the business credit easily misunderstood, and why do people think that it doesn't matter about having the business credit because it is useless to have it in the first place? These people are just basing their assumptions on false rumors, but they have no idea on how useful and beneficial it is to have a business credit and build upon it.

 

If you are still in doubt, just think about this: there are many credit reporting agencies worldwide, but the most popular are the big three, namely the Experian, Equifax and the Dun & Bradstreet. They sell business credit reports to those who need them, particularly banks and lenders. Just the first half of the year 2013, there was over 45 million requests of business credit report coming from D & B, while Equifax requested over 35 million. There wasn't data for Experian. While some people may think that there is no reason for business credits and building it up, why do these companies keep on requesting business credit reports? From the reports based on the 2012 NSBA, which is a study, twenty percent of the small business owners were denied from getting business credit. The times these days are really changing, and the importance of business credit differs from today compared to more than ten years ago. They definitely matter now.

 The Reason Behind Building up Your Business Credit

Suppliers for business are pulling out business credit on various manufacturers in order to know what they are paying their bills for. The manufacturers get business credit on the suppliers if they sure to be depended upon and to be relied. Distributors and retailers sometimes pull out business credit in order to decide whether or not they are going to issue a trade credit with your business, especially if you are going to purchase their services or products. The business credit report has a very huge influence on the decision the lenders and banks decide when lending credit to you.

 

It may seem unimportant to you, but whenever you are going to apply for loans or business credit cards, your lender or banks will highly likely deny you of it, because they are unsure of your credit history. How do you know whether or not you have a good credit report? If you have been using your personal finances to fund your business, the chances of getting denied of getting a loan or applying for business credit card is very high.

 

But what is so important about building credit for your business, or even apply for a business credit? The reason to have a business credit is to help fund your business in the case if you need one. You can also keep track of the expenses you have for your business apart from your personal income. When you have a business credit, you need to monitor its credit score and to have a good one, too, in order to have a good record when banks and lenders are going to pull out your business credit report at the time you need to loan or apply business credit cards.

 

Bookmark this Page
About Us - Advertising - Travel - Diplomatic Community - Services - About Egypt - Copyright & Permissions - Rss Feeds - XML Site Map - Mobile version - Skip to top