Okay. Now, I hope that you all can see that. But the thing about the business credit score, what it is and how is it affecting your business? Now, I've broken it down into three categories because these are your most important categories. You have your PAYDEX score, you have your business credit rating, and then you have your bank rating. And talking about the PAYDEX score, a lot of people are concerned about their PAYDEX score, which is 80 or above. However, the PAYDEX score is only good for trade vendors and net vendors. So, if you really don't need those type of companies, you're just trying to get funding for another project, or whatever, this really wouldn't be an impact on you because you're not trying to get trade credit or Net 30. Net 30, Net 7, Net 15, they have different wants, such as Net Vendor credit and stuff, and Trade credit. That's basically like your Seton, ULine, Grainger. And what ends up happening most of the time, we buy from these companies just to get them to report on our business credit, to get a PAYDEX score. However, the thing about it, the majority of the stuff we buy, we usually don't need it for our business.
And so, we got stuck in this... This is mainly part of the tier system method where they teach you, set the company up, buy some Net 30s then buy another round of Net 30s, then apply for some gas cards, then attempt to apply for some unsecured cards. Usually, the tier system... I can truly attest to this, it usually will take you anywhere from nine months to a year or longer. Depends on how active you are in your business. Okay, so that's what the PAYDEX score. The PAYDEX rating is 80 or above, meaning that you're good a payer. You pay good on time, okay, and it's just mainly for vendor credit.
Now, your business credit rating. Your business credit rating, this is important. This is an important factor because this determines if you get business loans or business credit cards. So that's what the business credit rating is. That's the reason that you'd see me on the video always telling you to update your financials. Make sure you do the UCCs, things like that. That's what affects your business credit rating. And then I told you about the different banks to go to in my ebook that tell you where to go and get those secured bank cards and stuff, because that will help with their business credit rating.
Now, this is one that most people aren't aware of and not too many people speak of it, maybe because they don't. But the bank rating... Now the bank rating actually deals with... Well, your business bank rating. It actually deals with the activity of the business checking account in which you should have... When you're setting up a corporation, usually what I teach on, with the corporation, with C corporations, you wanna to have three accounts. You wanna have a business checking account, a business savings, and a business expense account. And in my ebook, I explain to you why you want to have those accounts set up like that. But the business banking ratings this year, is where it goes off the activity. How many deposits have been in the account? How often are you depositing money into the account? How long does the deposit stay in there? And the larger the amount of money you deposit in the bank, and the longer it stays, the higher your rating. So, the larger the amount, the longer it stays, the higher your rating.
So, this is your bank rating. This is what really determines the amount of money they're gonna loan you. This here determines whether you're gonna get approved for unsecured credit cards and/or loans with a business credit rating. But this here, determines the amount of money. So those are the two differences there. So, you have your PAYDEX score, which is talking about your trade credit or your vendors. Your trade vendors, which describe you as Net 30s, you're Net 7s, you're net 15. Then you have the business credit rating, and this is what determines you being approved for loans or credit cards, unsecured or secured, okay. But your bank rating, that's dealing with the activity on those business bank accounts, okay. So, the more money you have in it, the longer it stays in it, determines the amount of money they're gonna loan you, future-wise. So, this is just a basic video I wanted to break down to you guys, so you can understand. If you are looking at companies, and they are not explaining this process to you, to actually help decide whether you should let them help you or you should do it on your own, then you don't need them because they should be at least explaining some of these basics to you. If they're not explaining these basics to you, they're wasting your time guys. And more likely they're gonna linger you on, so that you are paying them more money, but at the same time you're not getting any results.