All posts by Gary Stockton

The United States military is the one organization that has produced more business owners than any other institution. After World War II, a stunning 49 percent of veterans went on to start their own business. Veterans are a diverse, multi-talented, innovative group of leaders who deserve our respect and gratitude. The Small Business Administration (SBA) wanted to study the impact of veteran-owned businesses on the U.S. economy, and the results of this study have just been released in a new report titled Veteran-Owned Businesses and Their Owners: Data from the U.S. Census Bureau's Survey of Business Owners. Per the SBA's Office of Advocacy, there are 2.52 million businesses majority-owned by veterans. The report, compiled from 2012 Census data also states that veteran-owned firms represent a staggering $1.4 trillion in revenue, employing over 5 million people. Veterans represent a diverse cross-section of businesses in just about every industry. And it seems the training and skills these veterans learn while enlisted are a key to their success when they enter the private sector. John Lee Dumas Take John Lee Dumas, founder and host of the award-winning podcast Entrepreneur on Fire. Dumas credits his rapid success in the world of podcasting to his time in the U.S. Army as an armor platoon leader. After serving 13 months on active duty in Iraq and an additional four years in the reserves, Dumas worked in Real Estate briefly, and passed time while driving listening to podcasts. He noticed most podcasters released shows on a weekly basis, and saw an unfilled need for a daily show geared toward Entrepreneurs. Dumas now hosts one of the most successful business podcasts online. Veterans are also at the heart of our growing business economy. Recently Forbes profiled the top 25 veteran-founded startups in America, which included companies such as: Plated.com, founded by Nick Taranto, US Marine Corps, Infantry. Plated delivers everything needed to cook a chef-designed healthy, affordable, and delicious dinner at home in around 30 minutes.RallyPoint.com, founded by Yinon Weiss, U.S. Army, Special Forces; Aaron Kletzing, U.S. Army, Field Artillery Officer; and Dave Gowel, U.S. Army, Armor Officer. RallyPoint is an online network of more than one million current and former members of the U.S. military where they gather to discuss military life, share information, and exchange stories. Because having strong credit is an essential component of running a successful business, Experian would like to do our part in helping veterans continue to achieve success. In honor of Military Appreciation Month, veterans can receive: 50% off annual monitoring of business credit, or20% off single reports It’s our way of saying thank you to our hometown heroes – not only for your service to this country, but also for your continued hard work towards keeping our economy thriving.

Business credit scores are vitally important to small businesses. In today’s competitive market, a faulty credit score can dramatically affect the bottom line of any business and can lead to higher interest rates, difficulty in securing loans, and potential problems with suppliers. Conversely, favorable credit history can serve as the linchpin to success. It not only can save a small-business owner a considerable amount of money, but it also can provide access to capital with which to grow the business. So, let’s do a quick review of some common business credit misconceptions. If I have a small business, I automatically have a small-business credit score. FALSE. If a business doesn’t have at least one tradeline and/or one demographic element (such as length of time the business has been credit active, how many employees, etc.), then a credit report and score are not generated. To establish a business credit score, you should ensure that your business vendors are reporting your payment history to the major credit reporting companies. This will help to build your commercial credit profile. There are no drawbacks to using my personal credit score, rather than a business credit score, when attempting to secure funding. FALSE. It’s true that many small-business owners fail to separate their business expenses from their personal expenses. However, the weakness of relying solely on personal credit is clear. If your business ever becomes at risk, your personal credit score becomes at risk as well. Anyone can request and view my business credit score. This is TRUE. Unlike personal credit reports, which are regulated and can be viewed only with the permission of the report holder, business credit reports are available to the public. This means that anyone — including potential lenders and suppliers — can openly view your business’s credit report. Given the public availability of business credit reports, it’s imperative to monitor your business credit score. There are things I can do to improve my business credit score. TRUE. It’s vitally important to be aware of possible inaccuracies or negative credit data on your credit file, should they exist. As the business owner, you may request that the credit reporting companies correct any mistakes to ensure that your credit file is accurate. By simply increasing your awareness of the factors that drive your current company credit score, you can begin to effectively manage your credit behavior. As always, the best thing that you can do is pay all financial obligations on time.

Good credit is the lifeline of your business. Sure, it's a must for obtaining funding for launching or expanding your business. But that's only the beginning. So, here are just a few of the many benefits of building and maintaining a good business credit score. First, it can save you money. Lenders offer better interest rates to businesses with good credit.You can obtain business credit without the need for a personal guarantee. And this reduces your personal liability and protects your personal assets.It can help you stay ahead of your competition. You can pass your interest savings onto your customers or keep a larger margin of profit for yourself.You can make decisions with confidence and get the money you need, which can reduce stress on you and your company. Bottom line. A good credit report and score are essential for getting the money you need to successfully run and grow your business. Business Credit Advantage Enrollment in Experian's Business Credit Advantage unlimited access and monitoring service is the best way to manage and grow your business credit. Unlimited access to your business credit report gives you the tools you need to manage and grow your credit score. And, automatic email alerts provide you the monitoring tools to watch your credit file for any inquires or derogatory filings. For more information on business credit resources, plus articles and tips on this subject, go to BusinessCreditFacts.com.

Debt Collection Scams Substantial debt can be a crippling burden to a small business, which is why they are often targeted by con artists who purport they can vastly reduce or even eliminate this debt — for a fee. This type of scam has a long and checkered history — and is showing no sign of abating. In late October of 2016, Ukrainian-born Sergiy Bezrukov — aka John Butler aka Thomas Paris aka Christopher Riley — was arrested by the FBI in upstate New York and charged with mail fraud for having allegedly duped more than 100 small business owners out of more than $500,000. His alleged scheme was simple: mass-mail an offer to reduce small business debt by up to 75 percent in just six to 12 hours. The fee for his services — required upfront — was $1,250, to be sent via wire transfer to his company, Corporate Restructure, Inc. Of course, no actual services were performed. Victims were not only out their initial $1,250, but many had their credit ratings seriously damaged — or further damaged — as a result. “Bogus credit relief schemes are not all that common, but when they do pop up, they give legitimate organizations a bad name,” said Robert Tharnish, senior vice president of ABC-Amega, Inc., a debt collection agency headquartered in Buffalo, N.Y. “There are many ways to deal with commercial debt. Owners just have to do their due diligence.” Robert Ingold, CEO of Commercial Collection Corp. in Tonawanda, N.Y., agrees. “For anyone who receives a solicitation to reduce their debt — be it commercial or consumer — be skeptical. Know who you’re dealing with.” Both Tharnish and Ingold serve on the board of the International Association of Commercial Collectors, the world’s largest international trade association for commercial debt collection professionals. Ingold noted that most companies have accountants and attorneys who should immediately raise a red flag when such sketchy offers come their way. Even so, enough small business owners either don’t have outside help or ignore their paid experts’ advice, allowing scammers like Berzukov to rake in hundreds of thousands of dollars in just a few months’ time. Dealing with a bogus agency can damage already fragile credit ratings, Ingold noted. “In most cases, a company targeted by a debt reduction scammer has debt and delinquencies that have already been noted by reporting agencies like Experian. Bezrukov’s victims weren’t just out their $1,250, but they probably fell further behind in their debt payments expecting relief, and this just decreased their business credit scores even further.” “This is an industry where all you need is a phone and list,” Ingold continued. “We see the same problem on the flip side with fraudulent collection agencies. Fly-by-night collection agencies approach lenders with wild claims of collection prowess, or buy existing paper for pennies on the dollar, then start harassing debtors in violation of all established laws and ethics.” “ Both Ingold and Tharnish noted that the legal system has numerous avenues available for businesses that find themselves over their head in debt. These include: Restructuring the debt with the existing creditors. This often includes devising a monthly payment plan that leaves the business with enough capital to keep growing.Getting an SBA or private business loan.Declaring Chapter 11 or Chapter 13 bankruptcy, which allow businesses to discharge many of their obligations and still keep their doors open. Both experts also emphasized the need for business owners to perform due diligence before hiring any debt reduction or collection agency to work on their behalf. “Ask to see their license. Their certification. Check with the Better Business Bureau,” Tharnish advised. “Also demand references. Ask, ‘Have you done business with anyone I know?’ If an agency can’t provide references, just walk away.” “When confronted with an amazing business solicitation, just remember the old saying,” Tharnish concluded. “If it sounds too good to be true, it probably is.”