Even long time business owners may assume that they’ve correctly separated their business and personal finances, but when they apply for credit, they’re still using their Social Security number. In many ways similar to personal credit, a Paydex score reflects the promptness of your payments and also has a comparable credit rating system. But unlike personal credit, no matter how old your business is, you have to grow your Paydex profile from scratch.
We’re going to cover just what is a Paydex score, how you can apply for one, and what it takes to quickly grow your Paydex score. Tommy’s top three steps to get your Paydex score started:
- Establish and apply for a Paydex score.
- Build the first 4 vendor lines
- Shift your business expenses off of your personal finances
When you apply, you’ll first be given a starter vendor account. You can strategically choose a vendor that your business frequently uses, like a gas station, office supply store, airline, Costco, or even Lowe’s. Especially for real estate investors, this is a great opportunity to make your marketing, renovation, or travel expenses work harder for you.
For those of you who have excellent personal credit, you might have a $200,000 limit, or maybe even unlimited credit. A Paydex score will work in a similar fashion, so the goal is to quickly grow your Paydex profile so that you can get as much funding as quickly as possible. And an additional benefit is that your improved Paydex score will yield a lower interest rate too.
If you’re ready to separate your business and personal finances, Tommy offers a free consultation for business owners. Because each business has unique needs, Tommy helps business owners figure out what would help them get the funding they need as they build a Paydex profile.
- How to separate the personal from the business in the credit world.
- What are the best vendors to reach out to?
- Do you need a different application process for each vendor?
- How a Paydex score can help you get more funding and pay lower interest.