Start Business Credit with No Money

Come learn Gboogie’s No 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

Business Credit for Beginners

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.

thank you for listening.
gboogie “king of business credit“

Buying Shelf Corps

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.