REICredit.com is a NEW financial website for dealmaking.
Learn more in this exclusive interview with Bill Malone, the CEO of REICredit.
com. Malone is a specialist in the field of corporate finance; he has helped
fund the investment transactions of hundreds of real estate investors.
PM411: What kind of capital do you offer for real estate
investors?
Malone: We help our clients get access to unsecured revolv-
ing lines of credit for their businesses that will report to the
business credit bureaus, Corporate Experian and Commer-
cial Equifax.
PM411: We hear people talk about business credit all the
time! How are you helping clients understand business
credit?
Bill: Most people don’t realize that there are four main
tiers of business credit. Most companies that offer business
credit focus on the first three
tiers, because they are easiest
to obtain approvals.
For Example, a $30,000 BP card will allow you to
purchase $30,000 worth of product from BP, but no other
stores. (A BP card is typically suited for trucking compa-
nies that have large monthly fuel expenses)
These accounts generally do not report to the personal
credit bureaus, and are good if you are looking to establish
a Dun and Bradstreet credit profile.
• Tier 3 accounts are personally guaranteed business
credit cards that report to the personal and business credit
bureaus.
The beauty of these accounts it that they can be spent
Most people don’t realize that there are
four main tiers of business credit. Most
companies that offer business credit
focus on the first three tiers, because
they are easiest to obtain approvals.
• Tier 1 credit is credit
issued from small business
to small business. For
example, if I own a shoe
company and purchase
most of my shoes from a
small local wholesale shoe
store, I might be able to
get them to approve me
for a $10,000 line of credit
to purchase their shoes on net 30 terms. This means that
I can purchase up to $10,000 of their shoes each month,
and I must pay off that balance every 30 days. This kind of
line of credit can be reported to your Dun and Bradstreet
profile, and is a good way for you to establish your Paydex
score. These accounts will not report to the personal credit
bureaus, and may or may not require a personal guarantee.
• Tier 2 credit is issued from a large corporation to a
small business. For example, store cards from BP, Home
Depot, Lowes, Staples, or U-Line.
A small business can get a line of credit from anyone of
the companies above, and most of the accounts above report
to Dun and Bradstreet. However, the spending on each of
the accounts approved is restricted to the stores from which
each of the cards was approved. These accounts may or
may not require a personal guarantee.
Realty411Guide.com
anywhere where credit cards are accepted. These accounts
typically do not report to Dun and Bradstreet, unless you
“self-report” them, which means you add the account infor-
mation to your Dun and Bradstreet profile manually.
The balances incurred on these business cards will affect
the individual’s personal credit profile because these
accounts do report to personal credit bureaus. If a business
owner is having a high expense month on these accounts,
then, the personal credit profile will be negatively affected.
At REICredit, we focus on helping our clients establish
Tier4 accounts, which are business credit cards that do not
report to the personal credit bureaus. Our accounts allow
our clients to separate their business expenses from their
personal credit report.
When clients work with us, we help them understand
what is available in terms of business credit and what >
PAGE 59 • 2016
Private Money411