Build Corporate Credit To Raise Capital . Obtain Financing. No Personal Guarantee Required
FREE AND EFFECTIVE INFO ON HOW TO BUILD BUSINESS CREDIT. DON'T GET SCAMMED. DO IT RIGHT.
|REALITY CHECK ON BUILDING CORPORATE CREDIT: PRO'S, CON'S|
BUSINESS CREDIT BASICS: STEPS
CREDIT: GOT CREDIT? GOT RIPPED OFF?
One fifth of all businesses fail in the first year because they fail to access enough business credit. The lack of financing is the most common reason businesses fail. The most common mistake? Most businesses first go to the bank for a loan. Whatís the problem with that? Conventional banks seek to issue low risk loans, where the business has years under itís belt and seems a safer bet to issue a loan.
Most businesses are denied a loan at the bank. In the beginning, donít bother with the bank. Start elsewhere, and approach the bank six months later.
When starting out, most lending comes from alternative lenders.
Alternative lenders usually specialize in certain types of loans for certain conditions or situations. For example, cash advance companies want the company to be at least one year old. They only handle revenue-based financing. Other alternative lenders offer extremely specific programs. You would only go to them for that type of loan that meet certain requirements.
Most lenders donít loan as much money as theyíd like because their programs require specific requirements. The issue is how to find as many as lenders as possible and apply to as many at once. But who has the time to do that?
We networked with a group who empowers you to make it happen:
1. Start with an older company to enhance credibility
2. Enter your company information once
3. The system applies to as many lenders as possible who seek your business.
HOW DO YOU ACCESS FINANCING? WHAT ARE THE STEPS?
1. Your business must be ready to apply. This means the company is compliant. This means the company filed as a foreign entity (foreign qualification) in the state where you seek to do business. The business filed the necessary business licenses. It also has an address and a business phone number (preferably a landline), billed to that address.
2. All the information, from all public and private sources, should be consistent. This means that the information on the public record (Secretary of State) should be consistent with the business license, the billing information for the business phone line, and everywhere else. You canít have a misspelling on the business name, or a mistake on who is President of the company. The information must be consistent.
3. Hereís a beginning list of things that must be done:
∑ Incorporate. Donít use a sole proprietor. Preferably, start with a company thatís at least three years of age.
∑ Obtain a business address for the company.
∑ Make certain your name and the business address is consistent on all public records. If your corporation or LLC is filed in one state and also filed as a foreign entity in another state, make certain that information matches with whatís published elsewhere, and that your name is on the company.
∑ You canít have privacy and build business credit. If you seek to build business credit, that means that your name must be connected to the company on the public record.
∑ With the Covid pandemic, itís more acceptable than ever to work from home. Youíll receive the best results from a business address.
a. Ask a local business if you can share their address to defray some of their expenses. Theyíre more open to it than ever.
b. Restaurants need revenue. Approach a local restaurant if you can use their address for your business. Explain that your business is online, and you just need a business address to receive mail.
c. Donít use a UPS Store or other like location. They often get poor results.
d. If youíre seeking a virtual office, we have a procedure that works quite well. Do a search from the most affluent zip codes on google within your state. Then obtain a virtual office from within one of those zip codes.
∑ File for DBA if necessary. If the your company name doesnít match your industry, you can file a Doing-Business-As (DBA). Some states may call it a Fictitious Name Registration or Trade Name.
∑ File the applicable business licenses on the state, county and local level. Look up whatís required in the state where you seek to do business.
∑ Open Business Phone Number. The business phone numberís billing address should be the business address of the company. That business address should be consistent with whatís listed on the public record (Secretary of State, business licenses, and other sources). Donít use a phone number provided by a virtual office. You need a dedicated number thatís billed to your company name and address.
∑ Fax Number (Landline, Efax.com, or other number). Donít use a fax number provided by a virtual office. You need a dedicated number.
∑ Open Custom Domain. Again, the billing address on record should be address of the business.
∑ Business Email
∑ 411 Directory Listing: Free
∑ Superpages Listing
∑ Yelp.com Business Listing
∑ Yahoo Business Listing
∑ Yellow Pages Listing
∑ Bing Business Listing
∑ Bling Search Engine Listing
∑ Google Search Engine Listing
∑ Google Search Marketing Account Setup
∑ Bank Account Setup
∑ Get a DUNS. Itís free. You donít need to pay.