Building Business Credit (Separate from your own)

See my post on this thrad about 6 posts back with the accounts to start with when building business credit with no personal guarantees

Thanks for ALL of this information. I have responded to some internet ads for Business Credit. I got calls telling me for a fee of $500 - $1000 they would help, and even offered to discount to $500 - $750. Taking around 30 days. I have bad credit and NO money so I couldn't get involved. Now I'm happy I couldn't, and will follow this information! Thanks!!!!!!

http://BruceThomas.bookmentioned.com

ATTITUDE IS EVERYTHING.....

"Life is an echo. What you send out, you get back. What you give, you get."
>Zig Ziglar<

Wow - I hope I'm not too late. I've already had them help me create my corporation. Beyond that, they've not done much other than get my D&B #. I'm going to call them tomorrow and demand a refund.

If they allow the refund, I'll certainly be in touch for some more help but will not bog you down. Thanks again

Well - turns out I'm two days too late. There is a 15 day full refund policy. My bad I suppose. I will certainly work them for all that they have.

Take care

Dave Visco

Nice blog thanks, for the investors: you should all join **** as well its free and is one of the best networking sites around on the net.

Once you establish your 80 Paydex score using various vendors, your next step is to apply for lines of credit that are from $5000-25,000. However, make sure to call first to find out all their requirements! MANY have changed. DO NOT apply for Best Buy unless you want to set aside $5K to create a letter of credit with your bank or them (where they hold on the the $5K to secure your line of credit). Lowes and Home Depot BOTH turned me down. I have written to them to reconsider, once again addressing all their concerns thoroughly. I will keep everyone updated on the outcome!

And now, off to do more investing! Going to take some of my SFL courses, FINALLY! (thanks to my business credit, I have it! )

I am bookmarking this page, will put it in my toolbox for use later! Thanks Tammy!

p.s. Like your new pic!

i just ordered "Principles of Building Business Credit" and should have it in a week or so. i'm excited to get started. i really appreciate you starting this "thread" for everyone. i wasn't sure where to start and some of the books recommended to me on business credit were close to $100, plus i ordered a much-touted course on it and it was a waste of money. this book was far more reasonable, you recommend it and the reviews on Amazon were all very good. thanks again.

In the book it says to make sure to call before applying. I can't stress this enough, but another thing, make sure you're talking to the people who actually do the accepting of the credit, and not the person that answers the phone. You want to be sure when you apply that you know exactly what qualifications and specifications they have. This is important.

So, stay away from Best Buy for sure, unless you want to put a MINIMUM of 5K into a letter of credit to guarantee payments (money we can use better towards REI) or personal guarantee. The whole goal to the second phase of building credit is to get away from the personal guarantee, so that defeats the purpose.

It is CERTAIN we will SUCCEED!

Just finish reading your post of Building Bus. Credit...thanks, very helpful

Thank you Tammy for all of the specific instructions on how to build business credit. I never even thought about being able to do anything like this...I will definitely get started ASAP!

God Bless You!

For creating this thread and providing priceless information for the DG Family as there's no excuse for us not to succeed with information like this. Again thanks and I also like your quote, "It is CERTAIN we will SUCCEED"

I also like the link below that keeps me fired up and restless, check it out.
http://www.youtube.com/watch?v=dPsnqwmn21g

All the best,
Joseph

I never did hear back from them so I'm going to print up my file and go to the store directly to work on it. If you have too many inquiries without securing a credit line, even if your score is high, it goes against you. So, I'm going to go and ask for a small credit line to prove our company to them. I am also going to tell them about my recent deal where I will chose to either use Lowes or Home Depot, and see which one wants my business. I won't give up!

Hi Tammy

Home depot is a lot easier to get a business account with,I did it about six months ago it only took one day. I have been doing business with them personally for years. I do spend a couple thousand a week.

Jim Kendrick

The whole point of getting trade credit is to build your paydex score. Since your score is already 80. It's time for you to start applying for business lines of credit. Unless you need Lowe's or Home Depot credit for rehabbing, I'd stop wasting my time with them. Business lines of credit can be used for down payments, holding costs, closing costs, etc. Start applying for business credit lines today: http://www.credit.com/products/credit_cards/capitalOne.jsp
That should be your next step. My goal is to have as many business lines of credit as I can possibly get, which can be up to $300,000!

Hey Tammy, these sites are a great source to use about writing a business plan, www.bplans.com, also www.ehow.com

Thank you for the link. Capital One was one card that did NOT give me a chance when I started. Right now I have Discover Business Credit, Sam's CLub Discover business credit, and US Bank Business credit. I supposed I could apply for more of them, the more the better! I'm actually getting requests from them and American Express and a couple of other credit cards.

But, I actually do have a rehab I'm doing, so the Home Depot and Lowes cards would be GREAT to have right about now to build credit with things I need for the rehab. Jim, did you open it as a strictly business line? Because they didn't seem interested in opening a line for my business without the personal guarantee, but I will persist. And since they've already pulled my business credit, its important to secure them so the company looks strong on paper to bigger creditors.

But the 2nd tier of building business credit did recommend Lowes and Home Depot as two of the cards to shoot for. Its also important to have a good mix of types of credit, and since I have 3 credit lines I am expanding it to other types. The next requests in the mail I get I'll go for it and apply, but I wanted to make sure I didn't have requests for credit without getting approved first.

I'm slowly getting my business plan written. Its just EXTREMELY time consuming. I actually did one in college in #### (hmmm... for some reason the site is overriding that number!) and it did take a whole semester to do when I had no kids. Thank you for the links! Very helpful info. I do have a nice prospectus done (thanks to completing my first private money loan; using it for my HML as well). But the more detailed portions take considerable time.

It is CERTAIN we will SUCCEED.

Another company that will allow you to open business credit without a personal guarantee is DELL.

Thanks for sharing all of your knowlege with us!

One thing I am hearing is that most banks will not loan to a business unless you are well established?? I am renfinacning a property and I have to do it in my personal name. But I am being told after I make a few payments to transfer the title to my business.

it is very difficult to get financing under the LLC for property. Its baffling because its backed by RE, but if you DO find the financing for your LLC, PLEASE let me know. The ones I've found in the past charged 2-3% more on the interest rate and that just wasn't an option for my buy and hold properties!

I never ended up transferring my title over because this was BEFORE I learned about banks not calling loans if they're current when a different person or entity is listed on title. The thought of my loan being called due made it so I never switched title from my own name. I'm transferring them all to trusts now.

"I never ended up transferring my title over because this was BEFORE I learned about banks not calling loans if they're current when a different person or entity is listed on title. The thought of my loan being called due made it so I never switched title from my own name. I'm transferring them all to trusts now."

Would you mind elaborating on this piece, not quite sure if I grasp the whole concept. Thanks in advance! And thank you in general for this post, I too have it bookmarked:) I am also ordering my books tonight.

Ms Thomas,
This has to do with the ownership of the property. Someone told me that if I transfer the properties from my personal name to my LLC LONG time agao that my mortgage could be called due. But, this simply is not the case. So long as payments are being made, the chances of a lender calling a mortgage due is so slim. I HAVE heard of it happening, but the person I heard about that had this happend just ignores the letter from the lender and keeps the mortgage current, and has been doing this for years. It simply costs too much for the lender to call the mortgage due to justify them teaching a lesson to someone. If he were to panic and let the mortgage become late, then they'd go after him.

There's a great article on here, search for 'There is no due on sale jail' written by a lawyer that goes into more detail.

Got my Principles of Building Business Credit TODAY! I am so excited! I hope I can also put it to good use. Thanks again for all the insight!

Hey what a great thread, I'm a newbie and have been going through deans course slowly but surely and enjoying all so far. My situation is I do have reasonably good perosnal credit in the high 600's, with not much saving's left. I have a couple of Q's though.

1. I'm based in Rhode Island and how do I go about setting up a LLC, obviously for me to build a business credit this would be the 1st thing to do right.

2. What is an SFL?

3. And is it best to open a bussiness account with a local branch as a oppossed to bigger branch i.e BOA?

Thanks for any info.

Huw

thanks for posting this. i will have to follow up on the information.

Tammy is correct, to further explain in alittle more detail I guess may help ... If you open an account with a vendor that reports to "Dunn & Bradstreet", then once you charge something using that vendors account (that you opened), you then will get a bill (usually on a net 20 or 30 days) which you need to pay. When payment is recieved from you, that Vendor will report your payment status on your account to "DB". When they do this, "DB" will automatically create an account number for your company if one is NOT already in their system. This is how it is done without paying, but again it takes time. Hope this helps.

Okay I got a questions Tammy about your set up, I have read about having to have a land line and listed with the information system....do you have that or did you use a virtual office set up. I am working on the foundation of my business credit for 2 different business. One I am half way there. Thanks for this post.

I did purchase one of the books you suggested I will be purchasing the other one soon.

I am having such a difficult time dealing with D&B :{ ! Seems though as soon as they found out I was not using their paid services, the whole atmosphere changed during the phone conversation. Wonder if anyone else has had a hard time dealing with them as well....

I did not have a hard time I have had my # for our Home Repair biz for at least a year. I am getting ready to work on my REI biz so I hope I have a easy time this time.

It maybe who you get on the phone, I am sure they get paid on commission so you have to just hang up and call back later get someone else on the phone. Good luck.