Book SummaryUnbreakable Laws of Business Credit, by Corey P. Smith

1-Page Summary1-Page Book Summary of Unbreakable Laws of Business Credit

The foundational principles linked to commercial credit.

Smith emphasizes the importance of understanding that business credit is distinct from personal credit and other forms of financing. Businesses can grow financially and achieve stability through the procurement of essential assets, which allows them to avoid sole reliance on personal capital or equity injections.

Business credit is distinct from personal credit and differs from other forms of financing.

Businesses often obtain funding to purchase products or services which play a role in generating income.

Smith characterizes business credit as a crucial element that facilitates the provision of credit among companies, which in turn helps them acquire the vital resources, equipment, or services needed for their operational activities and profit creation. This framework enables companies to operate efficiently, expand their market presence, and contribute to the overall health of the economy. Business credit is separate from personal credit, which is typically used for individual expenses. It also differs from financing methods like those involving angel investors or venture capitalists, which generally necessitate obtaining a stake in the company rather than traditional lending.

Dun & Bradstreet, Experian, and Equifax are tasked with overseeing and recording the financial histories of businesses.

Smith underscores the critical role played by Dun & Bradstreet, Experian, and Equifax in the surveillance and evaluation of company credit standings. These organizations compile and examine data about a company's financial stability, payment history, and legal records, which are essential in providing creditors with the means to assess a firm's reliability in meeting financial obligations via credit reports and scoring systems. Each agency can have its own scoring model, and lenders might prioritize one agency's information over another depending on the...

Unbreakable Laws of Business Credit Summary Creating a financial track record for a newly established company.

Smith offers an in-depth manual that starts with fundamental steps and advances to complex tactics to create a separate credit identity for a business. This approach aids growing businesses in establishing a robust financial base, enabling them to secure crucial financing and resources for growth.

Establishing a well-known structural foundation is crucial for the growth of credit in the commercial realm.

Different types of business structures offer unique advantages and disadvantages in the process of building credit.

Smith emphasizes the significance of selecting a business entity that aligns with your unique situation, considering its impact on your accountability under the law and fiscal responsibilities. Various business structures, ranging from individual sole proprietorships to entities with comprehensive corporate tax frameworks, those benefiting from pass-through taxation, legally safeguarded business formations, and partnerships that limit liability, all have unique characteristics that influence their capacity to secure credit. Grasping these subtleties enables entrepreneurs to make choices that are in harmony with their strategic objectives. Establishing a...

Unbreakable Laws of Business Credit Summary Leveraging existing corporate structures to accelerate the establishment of creditworthiness.

Smith unveils a strategic approach to accelerate the development of credit by leveraging existing corporate frameworks. This approach, while requiring meticulous research and strategic preparation, can significantly reduce the time required to obtain considerable financial support for a company.

Reactivating inactive businesses may result in the restoration of an established business credit history.

Conducting a thorough analysis of the business's credit background and current standing.

Smith outlines a method for identifying and acquiring inactive businesses to leverage their established credit histories. However, he emphasizes the importance of conducting a comprehensive review of the company's financial past, balance sheets, and current liabilities prior to finalizing the acquisition. He advises tapping into state-provided resources and meticulously scrutinizing credit evaluations from Dun & Bradstreet to uncover any hidden issues that could negatively impact a new business owner's credit objectives.

It is crucial to keep up-to-date information on the corporation's registered agent, location, and ownership details.

It's vital to update the key details once...

Unbreakable Laws of Business Credit Summary The importance of Dun & Bradstreet in evaluating a firm's financial trustworthiness.

Smith firmly places Dun & Bradstreet at the pinnacle of the business credit sector. Understanding how Dun & Bradstreet operates, recognizing its significance, and mastering the strategies for successful engagement are essential for improving and maximizing a company's credit status.

Dun & Bradstreet stands as the leading authority on commercial credit reporting.

Dun & Bradstreet maintains the world's largest repository of commercial information, with details on over two hundred million businesses.

Smith emphasizes that Dun & Bradstreet is at the forefront of supplying comprehensive commercial credit information, boasting an unmatched aggregation of business data worldwide. Dun & Bradstreet upholds a comprehensive system for recording data, which includes details on over 200 million businesses spanning different industries and regions. The assessment of a company's creditworthiness, which is crucial for loan and financing decisions, is predominantly based on the use of a critical resource known as Dun & Bradstreet by lenders.

To initiate their credit profiles, businesses are required to obtain a DUNS number from Dun & Bradstreet.

Smith emphasizes the...