Business Credit On a shoestring budget

Transcription

1 Business Credit On a shoestring budget BY CHIEF SIMON CEO & Publisher of Proud Business Opportunity Publishing, Inc.

2 Disclaimer While every effort is made to ensure that the content of this manual is accurate, this manual is provided as is and Chief Simon, (the author) and Proud Business Opportunity Publishing, Inc. (the publishers) make no representation or warranties in relation to the accuracy or completeness of the information. While the content is provided in good faith, we do not warrant the information. In no event Chief Simon, (the author) and Proud Business Opportunity Publishing, Inc. (the publishers) be liable for any incidental, indirect, consequential or special damages of any kind, or any damages whatsoever, including without limitation, those resulting from loss of profit, loss of contracts, goodwill, data, information, income, anticipated savings or business relationships, whether or not advised of the possibility of such damages, arising out of or in connections with the use of this manual or related manuals. No part of this manual may be distributed or copied for any commercial purpose for financial gain. All intellectual property rights in relation to this manual are reserved and owned by Chief Simon, (the author) and Proud Business Opportunity Publishing, Inc. (the publishers). This manual is not to be taken as legal advice. This manual solely represents the personal experience of the author. We, Chief Simon, (the author) and Proud Business Opportunity Publishing, Inc. (the publishers) are not attorneys. We never have, nor will ever give legal advice. If legal advice is what you seek please seek the counsel of a licensed attorney. This information presented in this manual is for information purposes only.

3 Business Credit on a Shoestring Budget I would recommend reading the book in its entirety first. This way you get a better understand of why, business credit building is a process. Also, it will help you develop an appreciation for the invested in to utilizing this invaluable resource to gain capital for your business. After you read it once, I would recommend following the step-by-step process that we put together to help you build on your own. We have outlined all the necessary steps that need to be completed in order to successfully build. This is going to be very important for building business credit with on a shoestring budget because it will get you into the system. This will be the blueprint and no fluff content. The first step to truly understand these methods is to think outside the box on this. I am going to outline a strategy for success. As long as you stay the course you will be in the system to build and grow your business on a shoestring budget. The resources that will be needed are as follows: 1. Budget 2. Timing I do believe we have a timing spot on because the best time to start building business credit is the last week of the month, but the budget is $0. That right starting a business with nothing. This is what I have all my interns do. It does cost money to incorporate with the state. The State of North Carolina is $125. You have to put something in to get something out. These are on a shoestring budget Steps:

4 1. Address You will need a physical and mailing address. If you are going to be using your home as your business that is fine, but remember to be taken as a big corporation, you want a degree of separation. 2. Get a name, and business idea. Stay away from anything that has Real Estate, Investments, Bar, Consulting and Club, in it. They are high risk categories. Check Google and the sec of state to see if your name is available and it s not in the search engines. You don t want your business to mistaken as someone else. Honestly this maybe the hardest part. When you find a name make sure the name is associated with what you do. Example Mike Flooring, Jerry T-shirts. You don t want people asking what is that you do, the name should tell them. 3. Tax ID number or EIN Today companies charge anywhere between $50-75 for something that takes less than 10 minutes, which you can do yourself. Just visit the IRS website and begin. When filing for your EIN make sure you put the start of business at least 2 years back. It will give your business instant age. Creditors like for businesses to be in business at least 2 or more years. Also when doing your paperwork don t forget to add, INC on the end of the name on the paperwork. You have 3 months from the date you get your EIN to incorporate. (You have 3 months to get your money to incorporate with YOUR state) 4. Business Not a Gmail, yahoo, msn, etc. You must have a in the business name. I use vistaprint.com it should run you about $5. Example [email protected]

5 5. Business Phone # Vumber.com gives you 2 numbers. 1 local and 1 toll free. They can be routed to any phone of choice and can be call from there also and the person on the other end will see the business number. 6. Website Set up a website with weebly.com. The website will show what your business does, and where it is located. This is key 7. SIC and NAIC here you will be able to find the SIC and NAIC for whatever business you are involved. You will need to know this when it s time for System for Award Management (SAM) or applying for DnB. It is ok to have more than one. But what is your main one? Directory hopefully you have incorporated by this point. If you haven t, STOP. Do Not Proceed. If you need help here me. Important: The same way you list your business on the Articles of Incorporation, it MUST match exactly the same as the online directories. Once it goes live, it s hard to pull it back. Your business must be found in the online directories.( MapQuest, Google maps, and yahoo maps) also. Take the time and register with every one of them. If you can t be found, no one will take you seriously. If you do get lazy, make sure you at least all the ones with infousa sites because they are the bread and butter. 9. Business Banking Account You need a business banking account to get Equifax and Experian reference. I highly recommend BB&T, but it s your choice. You will

6 need a banking resolution, sometime the bank have it sometimes they don t, just Google it. Go to the bank and open a checking first. No Saving yet. We are going to build a relationship with the bank. Wait until you do some transactions then go back and open a Savings. Later go back and get a Certificate of Deposit, Much later on ask for a secured loan on you CD for terms about 90 days. After that is paid, go back and ask for another secure loan against your saving account. You understand what I m doing here. We want to build a relationship with the bank and they also get use to seeing your face and your activity on your accounts are good. They report to DnB. There should be a day period between what I just mention is a website ranking company. Register your free website with them allows you to be on the map so to speak and download their toolbar as well. Visit your website a couple times a day and it definitely helps 11. Backlinks are like signatures, you leave a comment. Create a link from the forum or blog. Make sure you are on blogs that are related to your industry. Google forums related to certain interests (you need about 10-15). Dunn and Bradstreet are significantly interested in your business base on the internet. Google out backlinks and anchortexts 12. Do a personal write up on your personal Google page. This helps get you ranked. 13. Utilize social networks, Facebook, twitter, LinkedIn, etc. (put business information, year you were established

7 14. Setup a YouTube channel. Put one video even from someone else. YouTube is in the business name. 15. Setup a ustream page 16. Set up a Livestream page 17. Make sure 1-16 foundation is super strong before moving on. A strong foundation is key. I cannot stress the importance of your foundation before moving forward. Once all is completed, take a break and start researching yourself. If it takes more than one search to find your business, it s not strong. 18. Dnb and SAM First make sure that your company is not registered with DNB. If your company is looking to do business with the Federal Government then you want to fill out a SAM. Once you start SAM, your file will be in draft status until you complete Core Data Section. Keep in mind until you complete the core information section, your registration in SAM is not searchable. The US government has combined the capabilities of CCR/FedReg, ORCA and EPLS. To put it simple, rather than entering your company info in multiple systems, SAM merge it all in one platform. This will get you a Duns number in about 1-2 days. If not doing business with the US Government then fill out for a regular Duns #. You will need: Names of Company Company Address Name of the CEO

8 Legal structure of the business Year the business was started Primary type of business # of employees EIN Banking information DnB will contact you about purchasing their credit builder system ($299). Don t tell them no, just state not at this time, ask them to call back. Remember DnB is in the business of selling also. Telling them No only may delay you getting your Duns #. 19. Once you get a Duns number get a eupdate password. You must submit a financial statement! Turbo Tax, QuickBooks, business in a box. Financial statement income statement, balance sheet. This instantly gives you a rating employees, (what would each employee make,, What would expenses be, what is the profit?) This is why I recommend the day route so I can get this information together. Never less than 4 employees. Get the rating chart from DNB. Prepare them by a CPA. 5 employees project 200k. Put a date even further back because it looks better. This is corporate aging. 20. Credit.dnb.com Signup for the dnbi 14 day free trail registration 21. Apply for dnb eupdate Only check your file on Sunday after 10:00 am they only update on Sundays. Do not check it often. Update and then leave it alone. If you go to the file so many times, you may get RED Flag, and sometimes closed. Once a month is good around the middle of the month to maximize gains

9 22. Fill out a promissory note for your business and date it back 2 years. (Tax ID, CCR, DUNS #) File this is with your local county clerk of court. $5. This is a public filing on your public record. You may want to write out $20,000. $10,000 paid on a certain date, and $10,000 owed. Assigned a case number and file number to it. This can be uploaded to dnb with financials. (UCC-1) DNB will pick it up. About 5-6 months later close it out 23. Goal 4 net 30 accounts 3 Net 10 Accounts Staples (they sell gift cards) Office Depot (they sell gift cards) Home Depot (net and revolving) Exxon Fleet Gifts cards can be used to get cash off and put into your bank to be used as a repayment option. Purchased with your account 24. Rewards Cards Apply for a free staples and office depot rewards card. Once you get both of them go by the store and purchase something. Recommend getting your Corporate Binder then later go back and get the Corporate Seal. Use your rewards card to get into the system. This also puts you inside the JP Morgan/Chase database

10 25. Catalog Run Some vendors will not grant credit if you not already a current customer. Register and/or request catalogs from: Anyone you want credit from always register first and request a catalog if necessary. Goal is to get into their database. You only need 4 to 5 Uline Reliable Quill 4imprint Gemplers National Pen Interstate Batteries Franklin Covey Pitney Bowes Corporate Express FedEx Usps Northern Tool Tech Depot Experian Business ( you may be listed already if you get this far if not, then register. Can you use a blank prepaid card. It will not charge until you purchase something. 26. Once the catalog start arriving or you are fully registered, start applying for credit. Not all at once. You only need 4 to 5. Start with Grainger. Make a $50 purchase; use an old card at checkout. A day or so it will get rejected. The computer will give you an account for $100 to $ days later go back and make another purchase.

11 You should see a tab that says, my grainger account as a payment option. It will not say how much the limit is, but it will be an option. 27. Focus on getting accounts from: Uline attempt to make a purchase with terms, Order overstock items Grainger Go Promotion Bag n Bows USPS They report to DnB the fastest. If you get the account place a order, keep it under $50 dollars. Once the item arrives, go pay it off, don t wait until the due date. This will report as prompt on the credit report 28. Sprint PCS and ATT&T Obtain a business phone from them, they report to DnB and can be used as a trade line. Almost guaranteed you will get this account. You can use it to transfer you Vumber # to it. Sprint reports the fastest 29. Net 10 accounts The best 3 to get Stetson Bag n Bows Rapid forms 30. Do you have? 4 net 30 accounts 3 Net 10 Accounts

12 31. After you get a Paydex or 3 or more reporting Order again from your creditors about 2 weeks later. Then focus on getting Staples Home Depot (commercial and revolving) Expo Design Center Exxon Fleet Shell 32. Auto Finance Golden Rule: If it fly, float, fuck, or sail, don t buy it, lease it 100% tax write off (free toys) The best places are Ford Motor Credit Company (FMCC) Honda Always as for the fleet manager. A salesman will want to run your personal credit. They don t know, they are not trained in that department. 33. Corporate Credit Cards Need good personal credit (if not contact me, I can show you how to obtain this) Home Depot MasterCard

13 Sam s Discover (must have a membership first) Citi business American Express Green or Gold 34. Tips Paperwork is highly important. Keep everything (receipts, resolutions, etc.) in your corporate binder. Scan everything to a PDF if possible, separate it by month. Resolutions are critical. You should have a resolution for everything that you do. Do not Pierce the Corporate Veil. This will cost you everything, if it is determined you have. (do your due diligence, if you re not sure of what I am talking about). If you get to this point you should have no problem with business credit and not using your social security number as a personal guarantee. If you have to use it, maybe it s just a soft pull. Your file should be strong enough for the business to stand on its own. The paydex score can be 80+ and you still don t get approved. It s more about relationship and creditability. If you build the right file you should be ok no matter what. Foundation is key. Be relevant in your industry, and being googleable. Happy Building! Chief Simon Proud Business Opportunity Publishing, Inc