HOW TO BUILD AN EXCELLENT BUSINESS CREDIT SCORE
https://kim-s-school-6c8a.thinkific.com/courses/ICAV
HOW TO BUILD AN EXCELLENT BUSINESS CREDIT SCORE
Once your Business Credit Assessment is complete, you can begin to build your Business Credit Profile.
In order to successfully fund your future capital needs, it is important that you build a favorable credit profile for your business.
https://steemit.com/online-courses/@kimterje83/sellerswithoutssn-itin-ein-ssn-cpn-courses
ACTIONTHE ACTION ITEMS THAT YOU MUST DO TO BUILD AN EXCELLENT BUSINESS CREDIT SCORE:
HAVE A LEGAL BUSINESS "ENTITY"
In order to create and build a "business credit file" that is separate from your personal credit file; you must have a business entity.
There is no such thing as a "business loan" to a sole proprietor.
That is a personal loan. Without a business entity there is nothing for an investor to invest in or for a lender to lend to.
You must separate the business as an entity apart from the personal owners and the only way to do this is setting up a legal business entity such as a corporation, LLC, Partnership, etc.
IF YOU DO NOT HAVE A BUSINESS ENTITY, SET ONE UP a shell or a new one.
Establishing your business as a separate legal entity is where you begin to build a business
credit profile that is separate from your own personal credit profile.
BUSINESS LISTING CONFIRMATION
Your next step is to confirm that every agency and
trade credit vendor has your business listed the exact same way, with the same address and
phone number. For example, one might have you listed as "ABC, Inc.", while another has you
as "AB Consultants", and yet another as "AB Consultants, Inc.". Take the time to verify that all
your accounts (State, IRS, Bank, 411 Directory, power bill, phone bill, landlord, etc.) have your
business listed the same way and with your "exact legal name". Also take the time to verify
that all agencies, banks, and trade credit vendors have your business listed with the SAME
Tax ID number.
PHYSICAL LOCATION
Your business must be real and not just an attempt to build personal credit by using a business entity.
the service your should use is virtual office. The synthetic identity desgned to be hosted location spoofing, proxy socks 5 virtualization to fake your position on the map and be using the same PC mac address.
Cookies history persistent IP address max 80 miles from the home address and the server are located. Proxy use Ubuntu digitalocean or protonvpn any of these work.
If that is what you are doing STOP HERE!
This process will not work for you and you will be limited to establishing personal business credit
accounts, loans, charge cards, autos and homes but ONLY as a personal business or a
personal guarantor. Your business must have a physical office space, even if it is at your
home. It is at this physical location that your business should receive regular mail,
not at a mailbox store or post office box.
Currently the credit bureaus have developed a database
identifying all PO BOX and MailBox locations and are listing such address on credit reports
which can create a potential fraud alert.
SIMPLE STEPS TO ESTABLISHING BUSINESS CREDIT
In order for your company to thrive, it is critical to establish a business credit identity separate
from your personal credit identity. Once that credit identity for your business has been
established, the next step is to continue to build your business credit rating.
You can minimize your efforts, which will mean it will take quite a bit of time to improve your business credit
rating, or you can maximize your efforts, which will result in much quicker results.
Similar to your personal credit, your business credit profile is made up of many factors,
including how long you have been in business, your company’s assets, and the history of your
payments. By focusing on each of these components and making smart decisions about how
to improve each of them, you can continue to build business credit and improve your overall credit rating.
The EIN is a CPN a fictional person who is legally allowed the rights of a person open a bank account owing your business is not a way of position yourself in the way of creditors to obtain your assets no idea series LLC asset protection
WHY BUILD YOUR BUSINESS CREDIT PROFILE?
• Are you looking for a business loan or financing? Been turned down?
• Do you need a business line of credit for working capital or growth?
• Do you want to lease or finance equipment for your business?
• Would you like to stop having to personally guarantee every loan?
• Know how to get approved with more than 70 retailer credit providers?
• Want access to thousands of vendors you will extend credit terms to you?
Financing is a critical part of growing a small business and almost always a very large concern
for the owners. Nothing is more important and vital to the health of a small business than
having the right financing in place.
Most small businesses are initially financed by the personal savings or assets of the owners
and can rapidly reach a stage of growth where they are forced to seek credit or investment
solutions to fund that growth. Below I am going to teach you how to build your business credit
profile in order to assist you in obtaining the financing you need to grow and succeed.
Business owners quickly realize that applying for business funding is a much more
complicated process than applying for personal credit. Applying for business funding requires
careful preparation and demands that you understand the process and what it takes to qualify.
WHY DO I NEED A BUSINESS CREDIT PROFILE?
When you apply for business funding,
funding sources will look at your personal credit and business credit profile to determine: If
they will approve your request; the amount; what the terms will be; and if you will have to give
a personal guarantee.
EXAMPLE: Let’s say you have an "average" personal credit history (FICO score of 650) but no
business credit profile. Based on your personal credit, you are approved for a business loan of
$100,000 on terms of 13% interest over 10 years. If there had been a favorable business credit
profile the terms on the same loan might have been 7% interest over 10 years resulting in the
savings of tens of thousands of dollars.
HERE IS WHAT YOU COULD SAVE BY HAVING A FAVORABLE BUSINESS CREDIT
PROFILE:
Loan Amount $100,000 $100,000
Interest Rate 13% 7%
Term of Loan 10 years 10 years
Monthly Payment $1,493.11 $1,161.08
Total Payments $179,173.20 $139,329.60
TOTAL SAVINGS: $39,843.60
Whatever your financing needs are, it is possible to obtain funding for your business. Poor
credit, ok credit or good credit, getting the financing you’re looking for is a matter of knowing
how to go about it and where to go. Building your business credit profile will improve your
chances of success if you go about it in the right way.
KNOWING WHERE YOU ARE NOW AND WHERE TO START
In order to obtain business financing you must know where you are right now!
Do you? You
must know what any funding source is going to look at before you apply. If you don’t;
you are completely wasting your time and will most likely be declined.
There are over 4,000 institutional sources of business capital in the United States and each one has different criteria for funding a deal. Each one of these sources will tell you NO for just "1" thing.
On your own, how can you possibly know what every funding source’s "1" thing might be?
No place will coach you on exactly what it takes to pre-qualify before you apply and exactly where you need to improve to pre-qualify for more funding programs in the future.
You can find out what a lender needs to see for an approval simply by contacting the lender and request a pre qualification summary for the loan you are seeking. !
The bottom line is that you are foolish for going it on your own without first contacting the lender and performing what I call “LOAN
HOMEWORK.” If you apply at multiple places without pre-qualifying, you may damage your credit and will destroy your chances of receiving funding from the sources that would have done your deal.
Begin by going to http://www.myfico.com or simply pulling tri merge credit report (WHICH IS WHAT I WOULD REFER) and finding out what your personal FICO score is the FICO of all the principals of the business (anyone who owns more than 10% of the business).
This will cost you less than $40, EACH, to find out the exact FICO score for each person for all three (3)
credit agencies and will not cause an inquiry to appear on your credit history.
, Your FICO score is a numbering system created as a
result of your personal credit worthiness based on your past and present usage of credit. Any
score above a 680 will easily qualify you for business financing. With a score above 640 there
will be some creative funding programs available to you; and with a score below 620 you will
most likely need to find someone other than yourself, set up a CPN, or get a boost from trade
lines, to act as a guarantor for business funding, unless your business has assets or
receivables to secure the financing.
For example, your guarantor could have a FICO score of 720 when it is calculated from the
Equifax report and a 690 when it is calculated from TransUnion. Most business funding
sources use the FICO score(s) as a "Go", "No Go" switch. It is important to know your
Guarantor's FICO scores from all three (3) credit agencies before you apply for a business
loan.
Next you need to know if your business has a "Business Credit Profile" and a Pay-Dex score.
A Pay-Dex score is similar to a FICO score only it is the measure of your business credit
worthiness.
Having a Pay-Dex score of 75 is like having a FICO score of 750.
Go to http://www.dnb.com To find out if your business is already listed and has a Pay-Dex score.
When you get to Dun and Bradstreet’s site, you will see that they have the tools to check if your business is currently listed and what is being said about it. D&B also has a tool that, for APPROXIMATELY $499,
allows you to establish the framework for your business credit profile.
If you are in a great rush you can use this service; however, you can do it for FREE.
D&B has a free form to apply for a new D&B number only.
This option does not establish a business credit profile.
It takes about three weeks to receive your business D&B number and on the pages that follow I will be showing you the steps to build your own profile, absolutely free, further down into this chapter.
HOW TO BUILD AN EXCELLENT BUSINESS CREDIT SCORE
Ø
Once your Business Credit Assessment is complete, you can begin to build your Business Credit Profile.
In order to successfully fund your future capital needs, it is important that you build a favorable credit profile for your business.
ACTIONTHE ACTION ITEMS THAT YOU MUST DO TO BUILD AN EXCELLENT BUSINESS CREDIT SCORE:
HAVE A LEGAL BUSINESS "ENTITY"
In order to create and build a "business credit file" that is separate from your personal credit file; you must have a business entity.
There is no such thing as a "business loan" to a sole proprietor.
That is a personal loan. Without a business entity there is nothing for an investor to invest in or for a lender to lend to.
You must separate the business as an entity apart from the personal owners and the only way to do this is setting up a legal business entity such as a corporation, LLC, Partnership, etc.
IF YOU DO NOT HAVE A BUSINESS ENTITY, SET ONE UP a shell or a new one.
Establishing your business as a separate legal entity is where you begin to build a business
credit profile that is separate from your own personal credit profile.
BUSINESS LISTING CONFIRMATION
Your next step is to confirm that every agency and
trade credit vendor has your business listed the exact same way, with the same address and
phone number. For example, one might have you listed as "ABC, Inc.", while another has you
as "AB Consultants", and yet another as "AB Consultants, Inc.". Take the time to verify that all
your accounts (State, IRS, Bank, 411 Directory, power bill, phone bill, landlord, etc.) have your
business listed the same way and with your "exact legal name". Also take the time to verify
that all agencies, banks, and trade credit vendors have your business listed with the SAME
Tax ID number.
PHYSICAL LOCATION
Your business must be real and not just an attempt to build personal credit by using a business entity.
the service your should use is virtual office. The synthetic identity desgned to be hosted location spoofing, proxy socks 5 virtualization to fake your position on the map and be using the same PC mac address.
Cookies history persistent IP address max 80 miles from the home address and the server are located. Proxy use Ubuntu digitalocean or protonvpn any of these work.
If that is what you are doing STOP HERE!
This process will not work for you and you will be limited to establishing personal business credit
accounts, loans, charge cards, autos and homes but ONLY as a personal business or a
personal guarantor. Your business must have a physical office space, even if it is at your
home. It is at this physical location that your business should receive regular mail,
not at a mailbox store or post office box.
Currently the credit bureaus have developed a database
identifying all PO BOX and MailBox locations and are listing such address on credit reports
which can create a potential fraud alert.
For Corporate Credit and CPN Set-Ups; Please
Avoid Using ANY PO BOX or Mailbox Locations; PERIOD! Due to New Bureau
Software Upgrades DO NOT use a PO BOX or ANY Type of Mailing Box Location for
Your Corporate or CPN Location. Mailbox Locations are creating red flags on credit
- PHONE SERVICE AND DIRECTORY ASSISTANCE
Your and everybody having a online business need a separate buisines phone line and fax line.
Use the following website:
listyourselfe.com
411directory
Whitepages.com
USPS.com
The business phone number must be listed with directory assistance.
Call 411 and make sure anyone can find your business under the exact business name.
So If your business is not listed in 411 directory assistance, dial 0 for your service operator and get your business listed correctly with 411.
EMAIL AND WEB ADDRESS
Your business should have its own email address and business
web site with your business domain name. For example, if your business is "Donut Masters,
Inc." you would try to register www.donutmasters.com or www.donut-masters.com. You can
Bluehost is my recommend host for WordPress site.
also use domains that end in .net, biz, .us, etc. The domain can be as low as $6.95 a year and free one.com is free domain.
At bluehost WordPress hosting of your web site can cost as little as 80- $100 a year.
LICENSE and EIN ITIN WITHOUT SSN. FAKE IDENTITY TO USE FOR THE FUTURE COMPANY:
You must obtain a business license and EIN or ITIN from foregin country, now I'm going to show you the syntetic identity and the corporation or incorporated buisines to get a entity that is able to hold assets. DBA AND LLC IS RECOMMEND.
SERIES LLC IS BRILLIANT WHEN YOU ARE IN IN NEED OF AAAET PROTECTION. SLLC THE ANONYMOUS COMPANY.
Get EIN if applicable, a tax resale license in the State and possibly County or City where you are conducting business
Following the proper regulator guidelines for operating your business is critical to building a favorable business credit profile.
FINANCIALS
The business should have two years of financial statements.
Don’t panic or stop here if you haven’t been in business for two years.
Begin building your financial statements from the day you started the business and keep going with this process.
How do you have two years of financials with a business entity that was just set up?
If you have been in business as a sole proprietor or partnership prior to forming your business entity, you can use those financials.
INVENT A SYNTETIC BUISINESS
Use fauxid.com generate a fake buisines and use google drive, dpreadsheet to upload a fictive emoloyer and employees produse the payroll and w2 tax and wages from the last two years. Use spreadsheet and salary and wages
Ideally, the financials include a balance sheet and income statement for each of the last two years.
For credibility, I highly recommend that you use an accountant or CPA to prepare your financial statements.
TAX RETURNS
Your business entity must have a Tax ID number (EIN), just like you have
a Social Security Number. Your Tax ID number is used to open your bank account and to
build your business credit profile. Every corporate entity must file a SS-4 form with the IRS
to obtain a tax identification number. This number is vital to successfully building your
business credit profile. Make sure you have properly established both your Federal and
State business tax ID numbers under the exact business entity name.
BANK REFERENCES
Your business entity must have a minimum of one bank reference.
It would be great if your business bank account was at least two years old, but more importantly to place your business in a good lending position it should have an average daily balance of at least $7,000 for the last three months.
Your business banking reflects how you manage your cash flow.
Funding sources want to know that your cash flow is capable of handling the business debt and expenses on a consistent basis.
Accounts that show NSF returned checks can be deal breakers!
If a funding request amount requires a $2,000 a month payment, funding sources will want to see at least a "Low 5" bank rating.
Your "Bank Rating" is based on your average daily minimum balance over the last 3
months. Here is how "Bank Rating" works. It is based on your average daily balance over
the past three (3) months, so your rating would be:
Low 4 for $1,000 - $3,999
Mid 4 for $4,000 - $6,999
High 4 for $7,000 - $9,999
Low 5 for $10,000 - $39,999
Mid 5 for $40,000 - $69,999
