Caladesi Capital, Inc.

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Above and Beyond is Our Norm

Credit FAQs The following questions are some of the more common that we answer every day. If you have questions that aren't answered here please call our office. We will be happy to answer any questions you have or clarify the answers listed here.
Q1: Why do you need my personal guaranty?
Q2: Can you waive my personal guaranty?
Q3: How do I get a copy of my personal credit bureau?
Q4: How can I improve my personal credit score?
Q5: How can I improve my business credit?
Why do you need my personal guaranty? With the exception of public corporations and long-established companies with millions of dollars net worth, we will require a personal guaranty from the business' majority owners to enhance the approval. In most cases, this lease will not be reported on your personal credit bureaus as a "trade line" unless your account becomes seriously past due. You've built up a successful business and we are asking you to stand behind your company. This is especially true when there are a few majority owners with a large personal stake in the business. Typically, the way an individual conducts their personal affairs will reflect how they conduct their business affairs. Back to the Top Can you waive my personal guaranty? There are times when we are able to waive a personal guaranty, especially when we are able to review the owner's personal credit. This is strongly subject to credit approval. Generally to get a "PG" waived we require the following criteria: Verifiable time in business of at least 7-10 years Minimum of 10 employees Strong business credit reports with prompt pay history Minimum low 5 figure bank account with no NSF activity in last 12 months One (1) comparable "corp only" loan or lease reference (not real estate or a vehicle) Acceptable credit bureau information on owners Strong net worth of company and widely held ownership will also help us acquire a "corp only" approval. Back to the Top How do I get a copy of my personal credit bureau? We believe that everyone should review their personal credit history at least once a year. This will help you stay on top of inaccuracies on your bureaus and protect you against identity theft. The first thing to do is obtain a copy of all 3 of your credit bureaus directly from the reporting agencies. You will need a copy of your bureau to dispute any inaccuracies. You may do this by going to their website or phoning them: Experian www.experian.com Phone: 888-397-3742 Equifax www.equifax.com Phone: 800-685-1111 Trans Union www.transunion.com Phone: 800-888-4213 As a result of the 2003 Fair and Accurate Credit Transactions Act, all consumers will be entitled to a free copy of their credit report annually. The free credit-report access began Dec. 1, 2004 in the Western US, with staggered dates for the rest of the country. Access to your credit scores will cost a "fair and reasonable" fee. We recommend business owners review their personal credit quarterly* for both errors and as a fraud-prevention tool. For more information about this program, click here: https://www.annualcreditreport.com If you have been denied credit, housing, or employment, or if you are unemployed, your bureau is free. There are also several states that require the credit reporting agencies to release a copy of your report to you free of charge. Otherwise, the cost is about $9.00 per report. There may be a higher fee to see your "score". This score will be very helpful for you to know, as many credit decisions, and subsequent financing rates, are based on your score. Your credit bureaus should include instructions for disputing any errors and we encourage you to dispute anything inaccurate. Back to the Top How can I improve my score? * Pay your bills on time. Approximately 35% of your score is based on pay history. * Keep your borrowing in line. Approximately 30% of your score is based on how much debt you have. Not all debt is bad. We like to see a mortgage and good installment loan debt like vehicles. Having a very high amount of credit card debt will bring your score down. How much of your total debt you have paid down will also be a factor in your score. * Length of credit history. A longer credit history will generally help your score, provided that lengthy history is paid as agreed. * Don't take on too much new credit too quickly. Approximately 10% of your score is based on how many new accounts you have. Additionally, you want to avoid having a lot of inquiries on your credit. * Don't close the credit cards you're not using. Doing so might sound tempting, but it can reduce the total amount of credit card debt available to you. We like to see at least 50% of your credit card line available. Back to the Top How can I improve my business credit? * If you are just starting out or have been established for a while, call Dun & Bradstreet (D & B) and let them know you are in business. D & B is the business equivalent of a personal credit bureau. They will assign you a "Duns" Number that can come in handy when looking for credit. They will probably try to sell you products and services. It is important to remember that these are optional and getting listed with D & B is free. Do NOT report financial information to Dun & Bradstreet on your company. Simply give them your address, # of employees, and the minimum amount of information required for their files. The contact information for D & B is: Dun & Bradstreet www.dnb.com 800-234-3867. * Set up a business phone line and get listed in the yellow pages. It is not necessary to have an ad in the Yellow Pages to be listed. Having a dedicated business phone number is important, even if you are a sole proprietor working from home or on your cell. * Register your business with the state. Even if you are a sole proprietor, it's important to be registered. Additionally, check with your local city and county to see if you need any additional licenses to operate a business. * Pay your suppliers on time. They may be reporting to D & B your pay history, and paying slowly can lower your "Paydex". A Paydex is a number that indicates how quickly you pay your bills. Additionally, we may request trade references from your suppliers. Back to the Top