Trade credit is credit in the name of a business that is linked to the business’s EIN number. This is a credit that a business owner can obtain that is not tied to their SSN.
When built correctly, the SSN is not even provided in the app, which means there is no personal credit check to get this type of EIN credit.
When you apply for something like a car loan, the lender draws your personal credit using your name, address, and social security number.
This information is sent to consumer credit reporting agencies, and they provide the lender with a credit report with all the information they have related to someone with a similar name, address, and SSN.
With this type of credit, an inquiry is made on your consumer credit report and your report is used to make the loan decision. Also, the credit you earn will be reported to consumer reporting agencies.
When you apply for something like a business loan, the lender draws your business credit using your name, address, and EIN number.
This information is sent to business credit reporting agencies, which provide the lender with a credit report with all the information they have related to a business with a similar name, address, and EIN.
With this type of credit, an inquiry is made on your business credit report and your business report is used to make the loan decision. In addition, the credit you obtain will be reported to the business reporting agencies.
It is important to note that when applying for financing and credit using your business credit, you should NOT provide your social security number on the application, even if it is requested.
When you do this, NO personal credit can be withdrawn because the lender cannot withdraw your personal credit without your SSN.
These are cash advances so the rates are not great, ranging from 8-45% depending on risk, and you will typically be approved for a 6-18 month payback.
Once you prove yourself with your first teaser, the terms will improve a LOT in future teasers. That is why we found that more than 70% of those who get their first advance come back and get more money in progress.
This forces them to withdraw only your EIN credit since you provided your EIN, not your SSN.
This means that you will be approved ONLY on the merits of your BUSINESS credit report … your personal report is not even reviewed.