Come learn Gboogie’sNo Money Down Credit system. Learn how to build business credit with little or no money. The same tactics lawyers and Cpa’s charge thousands for. Get membership and a ton of free products. All this and more june 12,2010 4:30(est). For a discount click here . For more great Business credit information from the King of Business Credit visit http://gboogie.net/default.aspx
The weirdest thing happened the other day. One of my people found a post on creditboards where the resident “know it all”(greywolf) called my youtube videos annoying. I found that very funny. The thing with these so-called gurus is that none of them do this for a living. They take a scenario that worked for them way back when and pretend to be experts on the subject. When in reality they are scam artists. Question… If you don’t build and sell shelf corporations for a living, how(or why)would you just hang around a blog all day to make yourself feel important?. These are the types of people who have nothing to do all day but criticize. If you don’t build corps all day long how would you know what works and what doesn’t? How would you know what tiers go where and so on? I guess based on everyone else’s input huh? What reason would you have to still be hanging around? Well i have an idea. Some people need an external source of self-worth. Instead of investigating the info so you can give your readers something positive people like that immediately shoot it down. It kills me to read things like..”well this is what i just got approved for”. I’m like…”why would you need all of these corps?” Besides all of that, that’s not even your website that you’re riding so hard. Get off of creditboards teabags and get your own site. Anyway…i gues im through venting, it’s just so easy to tell when people don’t know anything. The guy acknowledged that he say my videos. Why would a business credit “expert” be looking at my videos? Why would he be searching the internet for info if he already knows everything? this is very puzzling. I never search the web for information on how to build business credit because i already know how. I get sent links from associates every time they see my name mentioned somewhere. Thats the only time i even entertain what was said. besides that….i have too much to do like actually building corps and showing others how to do it. SO….. This is a request for anyone who has gotten any useful information from our youtube videos,ustream videos,mogulus(livestream)videos,stickam videos, or the videos or ebooks from our website. Go to creditboards and let everyone know this. After viewing our information, please go there and view theirs(if you can find anything relevent). Leave a post with our website name and let people know where they can go to learn a little bit more(assuming they learned anything from there). I think information should be available to everyone and one know it all(greywolf) should not stop people from being successful because of an ego problem. Thanks im sure this will help everyone. For everyone that goes over there and leaves a post. If you send us the posted link we will give you a special discount on membership.
Technique for beginners
This is strictly for informational purposes.
This technique was designed for businesses that start on a shoestring. Meaning very little money.I will personally share with you one of my best kept trade secrets on how to build business credit with little or no resources. I will take through what I do for some of my clients and explain what is going on in a story form.
An individual comes to me and says “I have a business, and I need to build credit” for whatever reason. They have tax ID, no landline phone, and they are not incorporated. Also they only have about $500 to go towards this endeavor. They say that they have at least 60 days or so until they need the financing for whatever. It also happens to be the 13th of the month. That’s perfect timing! The last reporting period has just ended, and I get to start at the beginning of the next one.
First thing I do is incorporate the business. In that particular state, it cost $100. Leaving me with $400 as my budget. Next i called embarq and had a business land line put in. Embarq does not charge a deposit for new businesses, and they report very fast on your business credit file. After the Articles of Incorporation are received in the mail, I go to OfficeMax. In the copy section of the store(copymax), I request a corporate package consisting of a corporate binder and seal. The binder holds all the stock and other corporate documents, and the seal is to stamp all documents with relating to the corporation. This package ended costing $65. leaving me $335 to work with. (when i receive the binder i have a shareholders and set salaries etc… )
By now It’s the 16th of the month, And I have already applied for and received my d&b number. I have already applied for an eupdate password, and have already updated my dun and bradstreet file. Today I place orders. Knowing that I need at least need 3 trade lines in order to get a paydex score, and also knowing that embarq will report on my file, I still need to place at least three net account orders. I go with my top three; Uline,grainger,and seton. keeping my orders right at $50.00 a piece. Once those orders are paid. I will have roughly $185.00 left as a budget.
Now it’s the 17th, and I take $85 down To a bank in their town add open a corporate bank account. Even though it’s not much, believe me, just having a bank account helps you build credit. That leaves me with $100, and pretty much nothing else to buy at the moment. Now I will register at the home depot, staples, and office depot websites and request catalogs. Also, I register their business with all of the online directories including mapquest. With the $100 I have left, I make several small online purchases from staples and office depot over the course of the next two weeks. The reason I do this is because I really need those two revolving accounts next. Registering and making multiple orders over time gives me a customer rewards card from both. It shows that I am a current customer which will be what I need when i’m ready to apply for credit.
Normally, by the 15th or so of the next month, I see embarq, seton,and uline on my credit report, giving me a paydex score of 80. Because I did not buy the credit builder I will have to wait another month for grainger to appear. With that 80 paydex, and combined credit of $150, I apply for office depot and staples. I usually get approved for anywhere from $1500-$2000 with staples. Between $1000-$2000 with office depot. For the sake of argument we will say approved for $2000 for both. I Then sign the business up for a merchant account so the company can accept credit cards. No money is needed up front, Just a percentage of what is processed goes to them.
So far a month has gone by, and it’s time for the next step. I go down to staples and office depot and purchase $2000 worth of vanilla visa cards, and american express gift cards from each store. I then go home and load them into my credit card machine that happens to be connected to the business’ bank account. Minus the transaction fees, I am left with the change. Lets say roughly $3,700.Leaving $3,785 in the account. I would then purchase a 90 CD from that bank for the amount of $1000. Next I would request a secured credit card for $1000. Then a secured loan against the CD for $500.00. Still leaving $1,785. I would then place $500 into a corporate savings account. Leaving $1,285 in the corporate checking account.
You have 30 days before the staples and office depot bill arrives, You may as well use that same 30 days to build credit with their money. The minimum payment on $2000 will be roughly $80 give or take. So lets say $160 a month for both. I would set $500 to the side for three months worth of payments. Leaving us with $785 in the account and a three month cushion.
There are so many different ways I could go from here but I will just leave the creativity up to you. This is as much of my trade secret I am prepared to give away. The rest is up to you. Just apply one of these concepts to your own experiences. Pleas take advantage of the forums so we may better answer questions that you have.
Most people think that when you get a Paydex score of 80 you can get approved for credit. This is far from true. receiving credit for your business involves more tan and 80 paydex score. It has to do with your file as a whole. A paydex is just a small piece of the puzzle. Your file has to do with your financial risk score,industry,how lendable that industry is and several other things. For example if you are in the industry of real estate you will probably not qualify as easy for credit. This industry is high risk right now because of the whole subprime mortgage scandal. With that example you can get a picture of what I mean.
So this is why building a strong business credit file is important; regardless of industry. But it is a good idea to stay away from high risk industries. This can be googled out. Also you can pull your file not your dun and Bradstreet update to take a look at the dollar amount that the credit Agencies says you qualify for. Hope this clears up the myth of the 80 paydex. For information on how to build up your file correctly and more business credit products visit http://gboogie.net/default.aspx . Gboogie the King of Business Credit will help you for an affordable price.
While microcredit loans first originated in the Third World as a way to help launch small businesses thousands of American entrepreneurs are finding it as the alternative solution to traditional lending.
Many of the micro lenders, which are mostly non profits, receive the bulk of its funds from the Small Business Administration.
In order for these micro lenders (intermediaries) to loan money to micro borrowers there are specific funding and training guidelines set by the SBA.
One of the reasons why this funding option has become so attractive to entrepreneurs is because it’s less difficult and time intensive to qualify for this small loan which ranges from $500 to as high as $35k compared to the traditional lending route.
This new age of micro loans for small business offers a variety of special benefits that I’ve broken down for you into the following:
The SBA requires that intermediary lenders provide business training and technical support to its borrowers. This educational component that micro borrowers will need to complete before the application is accepted is a step in the right direction.
By adding sound business training and planning more start ups can avoid making costly mistakes resulting in successful loan repayments and building a solid credit history in the process.
Flexible Requirements
Another area that makes these microcredit loans so attractive is the flexible guidelines for loan approvals. While many lenders are unwilling to approve a loan unless you have pristine credit, business history and sufficient collateral micro lenders take other factors into consideration.
This may include personal collateral and a personal guarantee but what truly separates micro lenders from traditional lenders is the personal character component. Micro lenders take a more hands on approach with their borrowers and go so far as to even contact personal references.
Building Credit
Microfinance loans also provide a way for small business owners to build or rebuild personal credit history and raise credit scores. Many applicants have little to no credit history and do not have the collateral that typical businesses use to secure a loan like commercial real estate, accounts receivables or inventory.
As you make payments on your small loan the micro lender reports its payment experience with you to the credit bureaus. This builds positive credit history and increases your level of creditworthiness in the eyes of lenders.
Once a micro loan is paid in full then most micro borrowers are able to qualify for greater amounts of financing through traditional sources if they prefer.
Time
Time is of the essence especially if you are in need of funds for working capital. Waiting for a traditional loan backed by the SBA can take months where microfinance loans can take as little as 14 days to fund.?
Keep in mind that each micro lender has its own lending requirements and it handles its own approvals at a local level. You can find more information on SBA’s Guaranteed Loan Programs and a list of approved micro lenders nearest you at the SBA web site.
Some additional micro lenders you may want to consider reviewing are Accion, Kiva, Prosper, Zopa and Lending Club. Each of these lenders has its own requirements, lending limits and interest rates so take the times to review which one best fits your needs and comfort level.
The recent economic crisis created a huge demand for this new age of finance called micro lending. With the SBA stepping up to the plate and allocating $50 million in funding for its micro loan program it’s no surprise that this financing option is going mainstream.
Whether you’re just beginning your first business venture or need the working capital for an existing business, this small loan may just be the solution you’ve been looking for. http://gboogie.net/default.aspx
Here’s a sobering thought: Fifteen years ago, the six largest banks in the United States produced 17 percent of country’s Gross Domestic Product (GDP); today, the six biggest banks produce 63 percent of GDP. That means that these six banks (Bank of America , JP Morgan Chase, Citigroup, Wells Fargo, Goldman Sachs, and Morgan Stanley) produce nearly two-thirds of the finished goods and services in the U.S. More than our waning manufacturing industry plus all of our software or music or film or any industry that you think of as substantial, combined.
What caused this exponential explosion of bank profits? During the Clinton Administration, bank regulations, which had been in place since 1933 (to curtail abuses that led to the Great Depression), were rescinded. This opened the barn door and allowed mega bankers to freely roam, eating up smaller banks, developing synthetic (meaning they really are nothing but a bet) investment products, drastically reducing the amount of capital required to ensure bank ‘stability’, and evolving into institutions with questionable financial practices. As we learned during the Goldman Sachs’ hearings before the Senate Subcommittee on Investigations, substantial profits resulted from risky bets made using esoteric financial products.
Major banks with investment divisions sold overvalued investment products to customers, knowing they would plunge in value. Simultaneously, they bought the same products ‘short’, which means they were betting on their failure, while selling these products as if they were reputable and reliable investments.
These financial institutions went blithely forth, leaving mayhem from their customers in their wake. They seemed to hold no regard for the pension funds, college accounts, and other critical investments they wiped out. It appears that a greed culture developed in this largely unregulated banking environment. The behemoth banks, and peripheral enterprises, engaged in practices that financially gouged businesses and consumers. Their actions demonstrated they need to be reined in and governed by sound financial principles.
When the federal government bailed out the big banks in 2008, they accepted billions of dollars. Instead of using that money to invest in small businesses and make loans to consumers in communities around the country, as the Bush Administration promised they would, the banks primarily hoarded the cash or used it to further increase the size of their institutions through acquisitions of smaller banks. Simultaneously, numerous viable businesses with superior credit folded or shrunk in size because their banks cut off their lines of credit, which they depended on to buy inventory and for other essential operating expenses. As a qualified borrower, you probably don’t want the nation’s major financial institutions to hold the power to dictate your financial solvency by cutting off your access to funds, when your performance has been exemplary. That is what banks did, and can do, today.
The Restoring American Financial Stability Act of 2010, has received much biased publicity. Of course, the legislation is not perfect. There are no perfect bills because the process of making laws involves compromise among legislators with disparate views. Now that the Republicans have allowed the bill to move to the Senate Floor for debate and to add amendments, it will change significantly. No one knows what regulations will be included in the final bill. If you’re interested, the Library of Congress keeps the most up-to-date versions. However, they constantly change the URLs for their pages so you’ll need to enter the name of the bill in the search box. When the page opens, click on the box labeled Text of Legislation to read the document. Like most major bills, it’s a tome. After it passes the Senate, it will go to a Conference Committee, which will include Members from the House and the Senate. They will hammer out differences between House and Senate versions, and more compromises will occur as a final version of the legislation is honed.
The bill that reports out of the Conference Committee will not be stringent enough for some of us, who had a close-up view of egregious practices in the mortgage industry. We know banks should never be permitted to offer mortgage brokers a commission rate that is three times the normal loan commission for products that carry the greatest risk for borrowers. The country faces the prospect of millions more foreclosures during the next two years. Many of these are the direct result of unscrupulous banking practices.
Some will think any restrictions are too much. They preach: Let the market ‘fix’ itself. How na?ve to believe the banks that led us to the brink of a severe depression will magnanimously forgo billions to ‘fix’ the problems. A recent ABC News poll indicates that two-thirds of the country backs financial industry reform. When we look at the widespread devastation wrought as a result of banking practices, strong support makes sense.
There is a serious myth floating around the internet concerning the dun and bradstreet paydex score, and business credit. For some reason there are websites helping to perpetuate this myth. I get asked questions everyday about what to do once you get a paydex score. The paydex score is mostly for the public. Its a false sense of security when it comes to business credit. A paydex score simplymeans that you have successfully made 3 business transactions that were recorded and placed on your report. Even if these were 3 cash purchases you would still get a paydex score. It does not speak for your company’s lendability at all. When wondering whether or not your company is ready to move past the net account phase you must consider other variables. You must pull your credit report and look at the suggested credit limit that the bureau has asessed for you. You must look at the other scores that make up your report other than the paydex. There is a score based on what industry you are in. its calculated based on other businesses in the same field as well as their success rate. There are scores based on your financials,assets,and employees. inquiries are also calculated in. In short there are many other variables to consider and the paydex score isnt one of them. See more at gboogie.net
Along with other myths out there, people are told that aged shelf corps will help to solve their funding problems.At one point in time(long ago)that was the case. In most cases these corps were not set up properly for the purpose of credit just age. It looks much worse to posess a 10 year old corp that has no buisness financials nor filed any taxes or hired any employees. there is no sound lendability there. There isnt even a real reason to even consider funding. This is the way most of these companies structure there shelf coporations. When buying a shelf corporation, make sure that is at least appears to be a functioning company.Lenders will look at previous business activity as well as a wide variety of factors. They will look for the number of employees and check to see if you have submitted any past witholdings to the IRS. In short, buying a simple shelf corp with age just wont cut it. Even if it has some credit attached.
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