Debt Free Brewery Funding

Providing Debt Free Funding For Our Small Craft Brewery Partners Through  Innovative Contractual Long-Term Purchase Agreements, Which Are Highly Lucrative , and Beneficial For Both Our Military Community, Brewery and Craft Beer Strategic Alliance Partners.

Fund Your Brewery With Out Going Into Debt
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Accounts Receivables Based Funding

Accounts-contract receivable financing is a type of asset-financing arrangement in which a company uses its future contract  receivables — guaranteed by the Brewery's Craft Beer Retail Alliance Partners  — who have through a negotiated contractual agreement, agreed to purchase a specified amount of craft beer per year. The Brewery receives a annual contract that can be used to secure funding against the contract total. The number and dollar volume of contracts are determined by the Brewery to accommodate the Brewery's funding and growth initiative needs. 

This type of financing helps our Brewery Partners free up capital that is stuck in operational cost and unpaid debts. Accounts-contract receivable financing also transfers the default risk associated with the accounts receivables to the financing company.

BREAKING DOWN Accounts Receivable Financing

Accounts receivables financing companies typically advance companies 70 to 90 percent of the value of their outstanding contract. The factoring company collects the debts and pays the original company any remaining amount beyond the financing amount minus a factoring fee.

How Factoring Companies Price Accounts Receivables

Factoring companies take several elements into account when determining how much to offer a company in exchange for its accounts receivables. In most cases, accounts receivables owed by large companies or corporations are more valuable than contracts owed by small companies or individuals. Similarly, new contracts are more valuable than old contracts. Generally, the easier the factoring company feels a contract is to collect, the more valuable it is, and the harder a contract is to collect, the less it is worth.

Helping Companies With Accounts-Receivable Financing

This type of asset-based financing allows Brewery's to get instant access to working capital without jumping through the hoops or dealing with the long waits associated with getting a business loan. When a Brewery leverages its contract receivables to boost its cash flow, it also doesn't have to worry about repayment schedules. Instead of focusing on trying to collect bills, it can focus on other core aspects of its business.

In addition to providing a unique financing option for Brewery's, factoring companies also offer other services. These accounting-centered services include running credit checks on new clients and generating financial reports.

GCBN VetForce On Call To Help Your Brewery
Generate The Funds It Needs

You determine how much money your Brewery needs for its operational funding and growth initiative needs and GCBN VetForcc will assign a sales team to solicit the sales contracts your Brewery requires to fulfill it's funding needs. 

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Personal & Commercial Credit Enhancement
The Power of Credit Trade-lines for Growing Your Brewery

GCBN has partnered with the leading Trade-line companies to provide those small Brewery's that need a helping hand to build the personal and business lines of credit they need to enhance their personal financial well being and to qualify for business credit lines necessary to grow and sustain their business.

What Is Credit Card Piggybacking and Can It Help You Build Credit?

It’s not easy to build credit. If you currently do not have credit or your credit is bad, it can be hard to get a bank or lender to let you borrow money. The truth is that most lenders will not take a risk on you if you have no history of making repayments. Because of this, many people turn to credit card piggybacking as a means to build their credit.

Piggybacking credit occurs when someone adds you as a user on their credit card to help you build credit. While this sounds like an easy way to build credit, there are many downsides to piggybacking credit. It’s not guaranteed to work and some banks do not allow it. Here is everything you need to know about credit card piggybacking and whether or not it can help you build credit.

What is Credit Card Piggybacking?

Piggybacking has been around for nearly 40 years. Lenders and mortgage brokers used it as a way to boost their client’s credit scores. The method was made popular by the Equal Credit Opportunity Act 1974, which allowed a lender or creditor to attach a person’s credit accounts to someone else legally.

Credit card piggybacking is when someone adds you to their line of credit as an authorized user. The term isn’t literal. You don’t exactly jump on someone’s back to join their line of credit. It’s a process that occurs when someone with an open line of credit adds another person to their credit as a user. The purpose behind this is to help the other person gain credit that is tied to the account. Being adding to a line of credit as an authorized user means that you are piggybacking off the credit established by the primary user. This information is reported to your line of credit, too. In other words, the person who adds you to their credit helps transfer their credit to you.

Piggybacking is commonly used among young adults who “piggyback” their parent's credit. It also occurs among close friends or family members. While credit card piggybacking sounds like a great way to build credit if you have none, it’s not always guaranteed to work. This is because some banks do not recognize authorized users as primary holders. They may report the financial activity of the primary user of the account to the major credit reporting bureaus, but not all users on the account. This means that the primary account holder may be able to build their credit but you as an “authorized user” will not.

What Are The Two Types of Credit Card Piggybacking?
There are two types of credit card piggybacking.

Traditional piggybacking

Traditional credit piggybacking occurs when a trusted friend or family member adds another person to their credit card account as an authorized user. This allows the primary cardholder’s credit history to be transferred to the authorized user’s account. It’s a secondary way of building your own credit by using someone else’s good behavior.

The downside to this type of piggybacking is that not all banks report authorized user’s activity to the three major credit-reporting agencies. In other words, a lender might report the primary user’s actions, but not yours. This means that you won’t be able to “piggyback” off the primary user’s good behavior to help build your credit, too. The other downside is that if the lender DOES report this behavior and the primary user is not responsible, it could hurt your credit even more.

Under traditional credit piggybacking, the authorized user does not even have to use the card. Although it’s a good idea to use the card to practice making timely payments, you can build your credit without even using the card. This is because merely being listed as a user on the account is sometimes enough to have the primary account holders credit show up on your report. For this to work, you will want to check with your lender to see if they report activity by all users on the account.

For-profit piggybacking

The second type of piggybacking is called for-profit piggybacking. It occurs when a business or company helps someone to piggyback off another person by becoming an authorized user on their account. Sometimes a complete stranger is paired up with another stranger to piggyback off them. The company responsible for partnering you up with another person often charges a fee for finding that person.

As you can imagine, for-profit piggybacking can be risky because you don’t know the person you are piggybacking off of. It’s a good idea not to ask to be added to someone’s account unless you trust the primary account holder. Likewise, do not allow anyone else to piggyback off you unless you know and trust them. Letting a stranger on your account is risky business.

For-profit piggybacking may not be worth the risk in the first place. This is because it might not even work. According to FICO® Score 8, FICO discourages for-profit piggybacking because it reduces the benefits of tradeline renting. Potential credit scoring models that discourage this practice may be underway.

Piggybacking off a complete stranger’s credit may also lead to identity theft. This depends on how the company protects your data and shares it with the primary user. The primary user may have access to your name, address, and social security number. It's a good idea to check to make sure this information will not be shared with the primary user before using this type of piggybacking. Or better yet, be sure the person you piggyback off of is a trusted friend or relative.

Is Piggybacking Credit Legal?

Credit card piggybacking is mostly legal with shades of grey. According to the Equal Credit Opportunity Act 1974, it is legal for a lender or creditor to attach a person’s credit account to someone else. Piggybacking is also legalized by the Federal Reserve Board Regulation B.

However, it’s better to find other forms of building credit before resorting to piggybacking to avoid legal trouble. Companies who offer the service will argue that it’s legal. Others will argue that it violates state laws and is unethical. Be cautious when moving forward with a company who offers credit card piggybacking. Make sure you do your homework and are aware of all state laws before signing anything. You may also want to make sure that the person you are piggybacking with is on the same page.

Credit card piggybacking is legal

Equal Credit Opportunity Act 1974 and Federal Reserve Board Regulation B

How Long Does It Take To Work Piggybacking?

If you find someone who is willing to let you piggyback off them, then you should be able to be added to the account rather quickly. The good news is that once you’re added to the account, your credit score should materialize instantly. After your first credit report comes out, it should reflect the new information of your primary account holder’s status. This means that their status becomes your status and vice versa. For this reason, make sure you’re working with someone you can trust who won’t drag you down. You will want to make sure you are equally as responsible so you don’t negatively impact their credit.

Who Can Benefit From Credit Card Piggybacking?

Although credit card piggybacking can boost your credit score going forward, it won’t erase the past. Keep this in mind when looking for ways to boost your credit. You may want to look into a credit repair service if your goal is to remove past negative items from your report. Piggybacking is ideal for someone who is just starting out and does not have credit. It can be a good way to learn the ins and outs of credit and how to make payments.

People that can benefit from piggybacking are those with bad credit. If you are trying to repair your credit in hopes of being extended a loan, then piggybacking can help. 

Need Help - Then Talk With The Experts

GCBN has partnered with industry Trade-line experts to insure our Brewery partners the exceptional service that they would expect from a GCBN Partner. 

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What is Accounts Contract Receivable Financing
GCBN Dedicated To Helping Your Brewery To Get The
Funding Necessary To It's Business Growth Initiatives

Guardian Craft Brewery Network, 1717 Pennsylvania Avenue, Washington, D.C. 20006  Telephone: 800-67-1346