How Can I Build CORPORATE CREDIT Fast?
I just got incorporated in Nevada. My sales rep told me for $2200 they have program to build your credit to A equivalent fica score in 3-4 months, where normally it would take 3-4 years. He told me they have a list for all companies which provide corporate credit and report every week to the credit bureaus.
Does anyone know how to find the companies which provide coporate credit to new businesses AND report weekly to credit bureaus??
Thanks, it would be a BIG help.
[ Edited by EntrepreNeuron on Date 01/08/2005 ]
[ Edited by EntrepreNeuron on Date 01/08/2005 ] 
[ Edited by EntrepreNeuron on Date 01/08/2005 ]
It takes 3-4 years of building corporate credit.
Whenever possible, try to establish credit lines that will grow along with the business. For example, in setting up a credit line with your bank, try to get a credit line based on a percentage of your receivables, rather than a constant, static amounts. Chances are your credit line will be reviewed by your bank annually and will be subject to ceilings and restrictions, but try to build as much flexibility into your borrowing relationships as you can. This will leave you better equipped to finance fast growth. Also try to establish credit lines with your trade suppliers that grow along with your business as well.
Establishing the business's credit should be started before the company needs it. No lending institution wants to lend money to a business in need of cash flow. The business can start out using the owner's or officer's credit to gain approvals under the business name, but as the business grows it should start to establish it's own credit history and credit profile in order to take on business credit of it's own. This is possible with a Corporation or Limited Liability Company (LLC) using the corporation tax identification number
When officers and owners use their own personal credit profiles to obtain credit for the business, they risk the chance of lowering their own personal credit scores. There are two reasons business owners should try not to use their personal guarantee on business credit. First, the individual signer is liable if the business cannot make the payments and second the credit obtained for the business can affect the person's personal credit score.
Keep in mind, your personal credit score is based on several factors, including available credit, the amounts of available credit used, late payments, and much more.
Obtaining credit for a business is a process that should be established over time. The older the business the more options the business will have to build credit and obtain loans and leases without the use of personal guarantees. It is not easy to do this, but yet it is not impossible. The first step is to start building the business credit today.
A credit score is built by having lines of credit, credit accounts and trade references that report to the business credit bureaus. For most businesses it's very difficult to find a business willing to grant credit with no personal guarantee and without any previous credit history. If you have your own trade references, you should work with them to build the score. However most businesses need additional trade references that will grant credit and report to the credit agencies.
Some other post on this subject are:
http://www.thecreativeinvestor.com/modules.php?op=modload&name=Forum&file=viewtopic&topic=38682&forum=27
http://www.thecreativeinvestor.com/modules.php?op=modload&name=Forum&file=viewtopic&topic=14857&forum=19
http://www.thecreativeinvestor.com/modules.php?op=modload&name=Forum&file=viewtopic&topic=11267&forum=27
[addsig]
http://creditboards.com/forums/index.php?showtopic=7571
EntrepreNeuron
Look at it this way!
Any time you are promised fast and easy credit, hold on to your wallet my friend! There is no quick fix when it comes to credit only time will resolve a credit issue!
Take your $2,200 and place in an interest bearing CD in the name of your Corp, than get a loan secured by the CD in the name of the corp. Open another and another! 2 or 3!
In about 6 months, you have established 2 or 3 trades!
Get a credit line at a major hardware store in the name of the Corp.
Go to D&B's credit center at http://smallbusiness.dnb.com
If it's worth doing, it's worth doing right!
[addsig]
Save yourself $ 2,200 and start reading the Business Credit forum at www.creditboards.com and start building your business credit yourself. Start with the "Important topics" section of creditboards and you should be on your way. You may also want to check out www.creditnet.com too. Good luck.
This question is in reference to the above website from Glendabiz. Does your business license and number listing have to be in the same state you incorporated in??
Thank you
Mike
Here is something that some will like. I have a personal advisor. A Business Coach. They have helped me with every aspect of my new business, from incorporating, filing with Dunn & Bradstreet, & building my business credit quickly, as well as advise with the perticular market that I am in. Anyone interested give them a look. ****Must participate a while before posting URL's*** He has saved me time & money as well.
Question here:
I have a corporate credit card in my name. Will that appear on my personal credit? Or it affect my corporate credit?
Thanks!
A HELOC will not build credit for an LLC/Entity unless the financing is in the name of the LLC, regardless of who holds title. Unless your LLC has established credit, you will not be able to finance a HELOC in your corporations name
Someone mentioned an Experian business account. How can this be established? Is it more difficult than the D & B route and do they work in tandem?
The link for Ace Credit is not live. Apparently, Ace Credit has been bought out by Readycorp and the website is not up. If anyone has the contact info for Ace, could they please PM that info to me. Thanks.
As an aside, How come some people can post internet links while others who have been members about the same time can not. Interesting, eh?
JS.
You can try a site called fundmyideas (dot) (com) and pay for the material - about 50 bucks. I was quite satisfied with the information I received and believed it to be quite useful. This experian thing has piqued my interest though - if you are able to tell more, please do so! Cheers - V.
Run away, 2200 is crazy. No need to pay to have business credit.
It takes aproximatelly 3 months to get a duns score if you doit right. oince you have a dunns score the sky is the limit. Some backs like seing aged corporatioms, some of them do not care and will lend you money once you have a credit score with d and b.
Experian has a credit score simulator that you can use for 30 days after purchasing your credit report and score.
This might help...
http://www.myfico.com/CreditEducation/WhatsInYourScore.aspx
I found a great way to learn what financial moves have on your score is by watching it through a credit score monitoring service like http://www.myfico.com. I have that service sine 1 1/2 years now and it is well worth the $7.95/month, I would never cancel it unless I am sure I will not need credit anymore at all, but as long as you are doing real estate, credit is one of the best tools in the box.
Thanks for all of the replies. I have now paid off the debt. Should I wait until the credit card companies report the zero balance to the credit agencies or should I contact the agencies with letters stating zero balance. Not sure if it really matters but I definately could use all the points I can get.
www.creditboards.com
Any time you apply for line of credit, you get hit with an inquiry. Yes, it affects your credit.