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Reality Check On Building Corporate Credit: Pro’s, Con’s

Reality Check On Building Corporate Credit: Pro’s, Con’s

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Build Corporate Credit: Got Credit? Got Ripped Off?

There are many “builders” of corporate credit on the market. Many of them are promoting themselves as a means of accessing thousands of dollars without providing a guarantor for the loan. They say that only the corporation is on the hook. Is this legitimate and will they support their claims? Are they really able to get that financing they promised? Let’s look at a few realities…

The Target Audience and Corporate Credit

  • There are many good people with bad credit. As a result, this group is looking for another way to meet objectives. As always, there’s another group willing and able to exploit them and charge outrageous fees.
  • Other people are simply seeking to minimize the negative effects of a possible business deal gone bad. In this sense, people seek to protect their credit by only making the corporation liable for this debt.

They Promise to Build Corporate Credit

  • They promise to develop corporate credit instantly and access hundreds of thousands of dollars in capital.
  • They promise to develop a line of credit without you serving as guarantor on the loan.
  • They promise to guide you every step along the way.
  • They promise to introduce you to sources of credit and assist you in applying.
  • They promise to facilitate a Paydex score, a DUNS number and other registries.

How They Get Paid For Their Corporate Credit Building Program Says It All.

  • Many of the corporate credit “builders” like their fees up front. They also like to pad the rear of their agreements/contracts with disclaimers and exceptions. This means that you’re paying the fee in advance ($3000-10,000) and it’s still up to you. They are giving suggestions and not held responsible to their claims.
  • How do they get away with it?
  • They add many steps in their program. If you didn’t follow each step one-by-one, then it’s your fault. Hey, you didn’t follow the program in the way it’s supposed to work. So, it’s you, right?
  • They add ambiguous language to their contract that doesn’t make them responsible for anything. They have your fee but they don’t deliver that much.
  • No refund policy. You sign off that there’s no refund. Now, you can’t contest that charge on the credit card.
  • Funny how they want your guaranteed credit card payment and they won’t guarantee the corporate credit financing!
  • You’ll receive the best results from a business address.
  • Ask a local business if you can share their address to defray some of their expenses. They’re more open to it than ever.
  • 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.
  • Don’t use a UPS Store or other like location. They often get poor results.
  • If you’re 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.

How To Spot A Good Provider From Those Whom Build Corporate Credit:

  • They are paid as a percentage of the financing they obtain for you. They win when you win. That’s usually about 5% or less. The entry fee should be less than $1000.
  • This means that you don’t need to spend $5000 so you can see what bread crumbs are falling off the table.
  • You know what you’re getting and you won’t overpay.
  • This is an indicator of a competent and confident provider of corporate credit services.

Wake Up And Smell The Scam

Not all providers of corporate credit building services are scammers. Here’s an example of someone who was scammed and fleeced by a high-cost provider.

  • “They asked me questions about myself and charged me about $10,000. They told me I was going to get up to $400,000 in corporate credit. Not only did they take my $10,000 and deliver little to nothing, they kept on up-selling me to more services. Throughout this time, I became frustrated and aggravated. At the end of it all, the stole my identity and those of their other clients. They were using clients’ identities to apply for financing without their permission. They overcharged me for this service, delivered nothing and cost me money in stealing my identity. I had better luck with the next provider. This taught me not to give them all my money up front.”
  • “They wanted me to pay $10,000 to build corporate credit in leasing a $20,000 automobile. Let me ask you this Einstein, ‘Isn’t it better to place $10,000 down on a $20,000 car and build corporate credit that way? I just don’t get it. And they wouldn’t make any promises for that $10,000. The way I look at it, if I need to promise $10,000 then you better promise me something in return.”
  • “The provider wanted $35,000 for a ten year old corporation and corporate credit building. When I asked to place the money in escrow until the financing went through, they said no. I was smart not to put up the money. They were claiming $300,000 in possible financing but wouldn’t nail down a guarantee. They said it was up to the lender. Fine, then it’s up to me to not give you $35,000.