No PG Business Credit Vs. PG Business Credit

No PG Business Credit Vs. PG Business Credit

 

In business, it is essential to understand what different kinds of credit mean to your financial future. That is what we address in this episode. Patrice Jordan, the host of Bosses Build Business Credit Podcast, differentiates No Personal Guarantee Business Credit from Personal Guarantee Business Credit. She highlights the importance of your social and why you should not utilize it when going to the dealership. Learn more about how to avoid these dealerships who are illegally checking your credit. Tune in now!

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Listen to the podcast here

 

No PG Business Credit Vs. PG Business Credit

What I want you to know is that the next three episodes are going to be super important for you to pay attention to. Every episode moving forward after that is very important. However, the next three episodes are going to be the most three important episodes due to the foundation. First, I want to explain to you guys the difference between PG versus no PG. I am a no PG business credit coach.

What is a no PG business Credit coach? It means no personal guarantee. For anything that I bill under my business, I do not attach my Social Security number to it unless it's for identification purposes only. I want to give you a more detailed breakdown so you can understand the difference between PG and no PG business credit. PG means a Personal Guarantee.

Have you personally been to the dealership looking to get a vehicle under your business and the business owner or the dealership advised you that they needed your Social in order to give you the business vehicle because your business does not qualify? Most dealerships do that because they understand the process of building no PG business credit. Most dealerships do that because you simply go to them and let them know that you're looking to get a vehicle under your business, but you have no other details to give to the dealership.

That's going to be something throughout the rest of the episodes that I'm going to be breaking down in more details for you. It’s the same exact thing when it comes to corporate leasing. A lot of you go to get Airbnbs and it's supposed to be corporate leasing. Corporate leasing simply falls under your business and nothing else. You have to build a strong business foundation in order for your business to stand alone by itself. That's a difference between PG versus no PG.

Let me explain something to you. It's going to be super important along your journey. Some vendors such as gas card vendors are now requiring your Social for identification purposes only. Business Bosses, let me be very clear on what the difference is. If someone asks you for your social to identify that you are a real person, that is okay. If someone asks you for your Social to do a credit check that is not okay.

Throughout the pandemic, a lot of these gas companies were dealing with a lot of scammers. People who were coming in applying for these gas cards and then, defaulted on them. They had no way to track if it was a real person. They started to ask people for their Social. It’s usually the last four of your Social to identify that you are a real person.

How could you know why they need your social? For instance, gas card companies have a section that says Social Security number. However, above that section is a little gray box or a little block black box that has a colon in that box that says, “Why do we need your Social?” “We need your Social simply for identification purposes only.” If you go to the dealership and you give your Social, it is never for identification purposes only.

If you go to apply for Airbnbs and you give them your Social, it is never for identification purposes only. They're going to do a background check on you as the owner. A lot of you sometimes do get tricked by the dealership. You do get tricked by corporate leasing because they tell you, “We need your Social for identification purposes only,” and they still do a credit check. That technically is illegal, but most of the dealerships are salespeople so they don't care about what is illegal. They care about the commission.

BBBC - DFY 2 | No PG Business Credit

No PG Business Credit: If you apply for Airbnbs and you give them your Social, it is never for identification purposes only. They're going to do a background check on you as the owner.

 

Anytime you face a situation unless the dealership can put it in writing, you can ask them to send you an email that says that it's for identification only and they're not doing a credit check, then it is usually safe. However, for me, I never take those chances. I am never going to furnish my Social Security number to the dealership because I know 9 out of 10, they're going to run my credit.

If it comes down to it and you run into a situation where the dealership is telling you that it's for identification purposes only, and they even put it in an email telling you that's for identification purposes only, I always recommend that you lock and freeze your personal credit. You can freeze your credit or lock your credit with TransUnion, Experian, and Equifax. That way, if the dealership does end up pulling your credit, they're not able to get access to it because your credit is locked or frozen and you are still in a great position.

It puts the dealership in a bad position because it's illegal for them to do that, knowing that they know that you did not want a PG. To avoid all of this, Business Bosses, do not utilize your Social when going to the dealership. Some vendors that you are going to run into are going to ask you for your Social for identification purposes only. Unless you specifically see that box that's telling you that they need your Social for identification purposes only because they cannot proceed with the application outside of that, do not furnish your Social Security number to anyone when it comes to building no PG business credit.

However, I furnish my Social for getting certain gas cards, not all gas cards. Throughout the rest of the episodes, I'm going to break that down to you in a little bit more detail because it's usually certain gas cards. What I still do as a business owner is that I still freeze and lock my credit. Either way, if that vendor decides to try to get over on you, your credit is still locked or frozen, so they still do not have access to it.

If they deny you for an application after you told them that you're not looking to PG, now we have a legal issue and that will be something we will have a specialist that will come on the show probably through episodes 10, 11, or maybe 12, to give you a little bit more of a breakdown on how this works. That's a difference between no PG versus PG.

If business owners deny you an application after you tell them you're not looking to PG, that’s a legal issue.

You have to know how to identify this. For a lot of you, when you first have a business, you look to rush to get credit cards. From the very beginning unless you're doing FinTech credit cards, those credit cards 10 out of 10 are going to be PG. PG versus no PG business credit. Business Bosses, I want to make sure I'm very clear with you guys on the difference between PG business credit versus no PG business credit.

With no PG business credit, we do not attach our Social Security number for any reason. We do not give anyone our Social for building no PG business credit unless it is specified that it’s for identification purposes only. Even then, I highly recommend that you lock and freeze your credit report in the event that some of these people try to get over on you as a business owner because they're looking at you sometimes like you have no idea what you're doing.

BBBC - DFY 2 | No PG Business Credit

No PG Business Credit: With no PG business credit, we do not attach our Social Security Number for any reason.

 

Realistically, a lot of you guys do not know what you're doing. A lot of you fall into this trap with the dealership, with corporate leasing, or with whatever vendor because they're asking you for your Social and you think you don't have a choice. Some of the times, you are able to refresh your profile and skip the step of them asking you for your Social Security number. There are a lot of hacks and a lot of skills that you are going to learn on this show. Please make sure you pay attention when submitting any application to make sure that you're not submitting a PG application.

 

BBC – DFY 2 | No PG Business Credit

 

Business Bosses, thank you so much for tuning in with me for episode two, No PG versus PG. On episode three, make sure you come and tune in because episode 3 and 4 are going to be some of the most important episodes when it comes to executing this process of building no PG business credit. As a reminder, bosses build business credit. I’ll talk to you soon.

 

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