Your business credit score is called a PAYDEX® score. Your business credit score is generated by Dun and Bradstreet (D&B). The model analyzes a business’ payment performance and gives it a numerical score from 1 to 100, with 100 indicating a perfect payment history.

Just like your creditworthiness hinges on your personal score with the three credit bureaus, your business’s creditworthiness is determined by a scoring system as well. That business credit score is typically used by lenders, vendors, and suppliers to judge whether your business is qualified for different financing based on your PAYDEX score.

A business’ D&B PAYDEX score is used much like an individual’s FICO score. It helps lenders, vendors, and suppliers determine whether to approve you for financing and on what terms. Just like your personal credit score, typically, the better your score, the more generous the terms extended. This can save your business money and give you more time to pay for supplies or services, leveling out cash flow.

Up Next...How Is My Paydex Score Calculated...

LLCs VS Corporations

Which Is Best For You?  A Quick Overview

Liability

Corporation - Owners / shareholders have no personal liability for business related debts.

LLC - Combines limited liability protection with a pass-through tax structure.

Taxation

Corporation - Separate taxable entity, corporate profits among owner and the corporation.

LLC - IRS rules allow LLCs to chose between being taxed as a partnership or corporation.

Maintenance

Corporation - Meetings are required to maintain corporate status.  Stock may be sold to raise capital.

LLC - The easiest entity to maintain with the least amount of formal annual requirements.

Up next...A more in depth look...LLC VS Corporations

Your payment history is the biggest slice of your credit score pie, so even one late or missed payment can significantly affect your score. Negative items can stay on your credit report for up to seven years. So, if you miss a payment, you may not be able to achieve a perfect 850 credit score…. at least until seven years have passed! ☹

Don’t take any chances of possibility forgetting to make a payment, consider setting up automatic bill pay for all of your accounts.

If you do miss paying your bills on time here and there, but otherwise have outstanding payment history, try negotiating with your creditor to see if they will forgive the late payment and wipe it from your record….there is always prayer 😊 The credit bureaus say that 96% of “high achievers,” or those with credit scores above 785, have no missed payments on their credit report.

Essentially, to get an 850-credit score, you just need to follow one simple strategy: make all of your payments on time for the foreseeable future. 

Next discussion… The connection between your payment history and time...

Depending on the type of business you own, subject to certain limits, you can claim up to 20% of your profits as a tax deduction. Depending on the type of business you run, there are potentially dozens of other areas you can expense.

There are many expenses that can apply to your income to help alleviate your tax burden. These deductions will reduce your profits, meaning that you will pay lower overall taxes. While the IRS does not specifically list what you can claim, they do state that if a cost you’ve incurred is “ordinary and necessary” to running your business, then you can deduct it. For some expenses, you will need to depreciate the expense over several years. These expenses are called the fixed assets of your business. Your accountant can help you with the depreciation if you are not familiar.

To get more through details on tax deductions, sign up for our online tax school.  You can earn residual income and never leave your home.

Next up… Rent, Mortgage, and Utility Tax Deductions

Investing in stocks, bonds, mutual funds, exchange-traded funds, and real estate promises high returns. This is the oasis that draws investors to take a risk. The risks are relayed when involved in chasing the dream of a gigantic payout and the payout trumps risk. Before you start investing, It is best to have your financial house in order and do your due diligence about what you are investing in as well as increasing your knowledge about investing period.

Usually, saving money is best before you invest. Some take our second mortgages or use funds from their 9 - 5 job. However, this is not good. If something happens and your investments is not profitable, you could lose your home or not have enough money to pay your bills and you take the chance of losing everything. If you are independently wealthy, well, that is a whole different ball of wax.

Being in the know helps you make better investments. People of all economic means make their money grow in different ways, 401Ks, Roth IRAs…

Up Next…..investing in flipping houses….

Travel relieves stress and boosts mental health. A change in scenery and daily routine can reset your body and mind. Just planning a trip can boost your spirit. Traveling can also expand your mind. Meeting new people and experiencing other cultures also expands your awareness and increases your personal growth.

Most people do not travel because of money. Traveling is easier than you think. Finding good deals is easier now. Especially with the global pandemic. Traveling is just beginning to open back up.

Traveling around the world should be a goal for everyone. Everyone should experience other places at least once in their lives. Whether you choose to spend a few years or just a couple months traveling this beautiful planet, it’s important to see what’s out there. It’s up to you to make the dream come true and take the first step.

Next Up….Which location is the most visited and why….