Aged Corporation Secrets » Corporate Credit

Aged Corporations for Sale

admin — Tue, 05 Oct 2010 21:20:42 +0000

Aged Corporations are companies formed by the incorporator with the sole intend to resell them to another individual or company. The lives of this Aged Corporations for Sale can go up to several years back or even several decades. These Shelf Corporation for sale are very much in demand as scores of interested parties are searching for them to cater to their various needs. All the companies have the element of respectability and legitimacy adhered to them, so buying of Aged Shelf Corporation also allows purchase of the respectability even.

There are tons of companies in the market which are selling Cheapest Aged corporations, but the buying should be done wisely and backed on genuine sellers so that one does not invite troubles in the form of liability and loans. The best place to buy Cheapest Shelf Corporations and too with the quality guarantee is http://www.AgedCorporationStore.com. As the company has just launched and is offering some great rates and the price charged are literally drop down.

Technorati Tags: Aged Corporation, Corporate Credit, Shelf Corporation

ARC Loans Offer Small Businesses $35,000 For “Immediate Hardship”

admin — Mon, 21 Sep 2009 17:06:59 +0000

from Small business owners have credit lines pulled – BusinessWeek by John Tozzi

Small businesses that have been recently profitable but are having trouble meeting debt payments can now apply for Small Business Administration-backed bridge loans to help. These loans are designed to keep otherwise viable companies from sinking because of “immediate financial hardship.”

The ARC Loan program (for America’s Recovery Capital) offers up to $35,000 in interest-free financing that business owners can use to pay short-term debt obligations that they’d otherwise be unable to meet: loan payments, business credit cards, leases, payments to suppliers, etc. The SBA doesn’t make the loans directly — banks and other lenders do. But the SBA pays interest to the lender and guarantees 100% of the loan. Small businesses can use ARC loans to cover up to six months of payments on another debt. After six months, the borrower’s repayment is deferred for a year, and then repayment of the principal will be spread out over as much as five years.

So, you could borrow $30,000 to make your $5,000 commercial mortgage payment for the next six months. You won’t have to start repaying the $30,000 until a year after your last disbursement. Then the repayment would be spread over five years, with monthly payments of $500. The SBA pays the lender prime+2% interest for the life of the loan.

Eligible businesses need to have positive cash flow in at least one of the last two years. Two-year projections should reasonably show that the company can make all its payments, including ARC repayments. And the funds can’t be used to pay any debt that’s more than 60 days past due. Businesses also have to show evidence of immediate hardship, like a drop in sales, trouble meeting payroll, or a credit line cut off.

The SBA will finance up to 10,000 ARC loans, says SBA spokesman David Hall. That doesn’t sound like much, but I’m not sure how many companies fit into the narrow range that these loans target. They’re not intended to be life support for businesses that would fail in two years anyway, nor are they meant to be attractive financing for companies that don’t need it. Hall said there has been lots of interest in the program since it was announced.

There’s some question whether banks will participate, especially because they’re not allowed to charge fees on ARC loans. (Will the banks that took bailout funds themselves really refuse to make these 100% guaranteed loans because they’re not profitable enough?) More from the Wall Street Journal.

The basics are here. To apply for an ARC Loan, the SBA says you should contact your lender directly. To reach an SBA rep to learn more, fill out this form.

The SBA doesn’t have any numbers yet on how many applications are coming in. If you’re trying to get one of these for your business, let us know what your experience is like. Is your bank participating? Is your company eligible? Will the loan really help? And how long will it take to get it? Tell us in comments below.

Technorati Tags: Business Credit Lines, Corporate Credit

GETTING CORPORATE CREDIT WITH BAD PERSONAL CREDIT

admin — Mon, 14 Sep 2009 16:14:59 +0000

Every business requires considerable amounts of funding from time to time to meet its diverse business needs. Businesses go for loans to get funds in order to cater to these needs. Traditionally, business owners used to get credit against their personal assets or credit rating, which was a huge deal of insecurity for them in case their business failed. However, corporate credit concepts have come as a silver lining in the clouds for companies.

Corporate credit is an unsecured loan the financial institutions grant after verifying a business’ status. Owner assets and credits though are not at risk here. However, the financiers do verify their personal credit record to establish their credibility. Now, what if you have a bad personal credit? The answer is, you can still get the loan though you should strive to keep your business status compelling. The ensuing discussion explores the ways to strengthen your chances of securing business credit if you have a bad personal credit.

Business entity. Your business should have its own legal existence and identity, independent of its owner. Therefore, register your company as an LLC or a corporation to build its own reliability. The proprietorship companies and partnership firms, however, face disadvantage on this front, as owner’s credibility is business’ credibility. As a result, the proprietors have to stake their personal assets to secure business loans. In addition, an owner’s bad personal credit is a big disqualification in these cases, while it has reduced impact if the organization has larger spread as is the case with LLC or corporations. Therefore, your organization’s LLC or corporation status leverages your chances of getting business loans despite bad personal credit.

Business peripherals. A physical address, other than the P.O. Box, and a business telephone line, add much towards the integrity of your business. They reflect that it exists and is reachable.

Other factors. Have your business operating license, good bank rating, Dunn and Bradstreet number or Duns number, around five trade references for paydex score, all in place.

Trade credit. Trade credit is one category where you can avail business credit for a specific purpose, material purchases, even if you have low personal credit scores. However, you can use trade credits at the issuer’s specified centers only. Therefore, trade credits definitely lacks the flexibility of a cash credit and better suits the companies not requiring working capital. It is not very useful for most of the businesses with cash requirements of varying nature.

Personal credit. It is important to understand that being an LLC or corporation does not mean that your bad credit will not have an adverse impact on your corporate credit at all. The financiers do check the owners’ social security number (SSN), and credit reports, prior to granting business credit. Mostly banks consider the applications of the owners with a credit score of 640 and above. Therefore, if your credit score is low, then without delay, it is best to start building your personal credit along with the business credit. In fact, prioritize this work.

All said and done, avoid bad credit at all costs as it makes it difficult to obtain cash credit from a bank. But even if you have bad personal credit you can still build good business credit.

Corporate Credit Concepts makes it easy to establish business credit. To obtain your free report on how to build business credit and obtain Unlimited Financing CLICK HERE.

Technorati Tags: Corporate Credit

$200,000 in Corporate Credit in 90 days!

admin — Sat, 05 Sep 2009 18:53:41 +0000

Have you ever heard the old saying “It takes money to make money”? Well I’m living proof that it’s not entirely true. In fact, the truth is this: “It takes OTHER PEOPLE’S money to make money.”

Rich people in this world know that. Which is why they don’t use their own money to expand their wealth. They use someone else’s money. It’s a powerful tool.

But do you have to BE RICH in order to BORROW LIKE YOU’RE RICH? And do you need excellent credit to borrow like a rich person? No, and no. Are you surprised? Then you’ll love the rest of this detailed report. Keep reading.

Before I go on I want to address a major issue we hear about almost every day, and that is poor personal credit. Let me tell you right up front why your personal credit is NOT that important. It’s because under my system, your BUSINESS gets loans. Not you. And that’s why your business credit is what matters. Not your personal credit. But more on that later. Back to the report:

How many times have you had a business idea or wanted to expand an existing business and thought to yourself “If I just had the money to get it off the ground, then [fill in the blank].” Believe me, I’ve been there too. Far more times then I would care to admit. But now? Well let’s just say I don’t spend much time filling in the blank.

Yes you read that right, UNLIMITED funds. That might seem like a stretch, but it’s not. Let me explain with a unique analogy.

Do you know how computers communicate? This may sound techie and boring, but I promise it will help you understand the value of this system, so bear with me. Computers communicate by sending each other a stream of two digits: 1 and 0.

That’s it. In other words, everything you ever see on a computer or cell phone is just a unique sequence of 1′s and 0′s. Your computer reads it and puts it on the screen. That’s true for this web page and it’s true for your bank account. Your wealth is not represented by real money in the real world. It’s represented by 1′s and 0′s on a computer.

And here’s the kicker….read this part very carefully and you’ll begin to understand the magnitude of what we’re talking about. Ready? The same is true for our country’s banks and credit unions. The money they show on the computer screen is not what they have in the vault. Not by a LONG shot.

To learn more GO HERE

Technorati Tags: Corporate Credit

The Rational Guide to Building Small Business Credit

admin — Mon, 24 Aug 2009 17:52:59 +0000

This is a great book on giving you the basic understanding of how to establish business credit for a new business or build more credit for an existing business. It also covers everything you need to know on obtaining business startup loans or building business credit lines. One of the areas you really need to be familiar with is working with Dunn & Bradstreet (D&B) they will issue your Dunn’s number and have your credit file. If you don’t understand on how to work with them you can mess up all the work you’re doing to build the credit profile. So there ia an entire chapter devoted to this. Other chapters are on protecting your credit profile and how to re-establish credit should something happen. As your business grows there is even a chapter on how you can check the credit profile of other businesses you are dealing with. You can get a copy of this invaluable resource at The Rational Guide to Building Small Business Credit

Technorati Tags: Business Credit Lines, Corporate Credit

ABC’s of Building Corporate Credit, Part 1

admin — Fri, 21 Aug 2009 17:54:59 +0000

The most important thing in building corporate credit is to be methodical and do each step in order. This is not a magical process but it will take time to build a strong profile.
If you do this correctly you won’t need to use your personal credit or personal guarantee.
Let’s go over the ABC’s.

A ) You need to choose a name for your business, preferably a name that reflects what you do. Once you have a name picked out you will need to do a search to make sure that it isn’t already registered. This search can usually be done online at the Secretary of State’s website for your individual state. Make sure when choosing the name that it is distinctive enough not to be confused with other similar names. When you do your search at the Secetary of State website they will tell you if your name is available. If your name is to similar they will make you choose another name. You will definitely will have to obtain a physical commercial address, using your home address or P.O. Box will hinder your ability to build the business credit you want.
In addition you don’t want to use a UPS store or a virtual office you got from the internet. These type of addresses are viewed as high risk, you don’t want to get red flagged right at the start.

Once you have your name the next decision is on what type of entity you will form. The main choices in the US are, an S-Corporation, C-Corporation or a LLC Limited Liability Company. You should check with an accountant and or lawyer who have expertise in this area to help you decide the best one for you. Here are some links to the SBA website which may be of help.
http://www.sba.gov/smallbusinessplanner/index.html
http://www.sba.gov/smallbusinessplanner/start/chooseastructure/index.html

B ) Get your Tax ID# or EIN from the IRS. If you feel a little overwhelmed by the process you can use a company such as Corporate Credit Concepts to help you. Some companies will obtain the number for you some may not just check with them to make sure. This is the IRS form to fill out to obtain the EIN, https://sa1.www4.irs.gov/sa_vign/newFormSS4.do.

C ) Now it’s time to get your seperate business phone line. When you get it you will want the business address you obtained to be associated with the number. This phone number needs to be listed in the 411 business directory so people and lenders can verify it. In addition get listed in the http://www.superpages.com. Don’t use your cell phone or home phone. When you get your new number the phone company will ask if you want the address listed and you will give the physical address you got in the last step. The actual phone line does not need to terminate to the real physical address. You can use what is called remote call forwarding the phone company can explain this to you. The goal is to look like an actual business.

D ) OK, Now you have laid the groundwork, make a few calls on the new phone line and most importantly when the bill comes pay it in full and do it promptly. You are now ready to build some credit.

I will continue the steps in the next post.

Technorati Tags: Corporate Credit

Corporate Credit Building Scams

admin — Thu, 20 Aug 2009 20:53:59 +0000

Guarantee of Obtaining Corporate Credit

Warning! You have probably heard a lot of different companies making claims about how they can guarantee to get your business or corporation, credit. They may say things like, “with our credit building program, we guarantee that you will get up to $20,000 or $50,000″ and so on.

The key wording is “up to”, because they really do not know if you will get the full amount of funding needed for your business. What they know that you do not is the lending criteria of the common business creditors. They know the most likely creditors that will say yes based off of your business credit profile and your personal credit scores.

These can be valuable services, since they can help to decrease the time it takes to fund your business and help to find the creditors that are more likely to approve your credit application. However, what is not in the sales copy is the fact that most of the credit building relies on retail vendor credit, such as, your local office supply stores or home supply stores to build out a Dun & Bradstreet credit profile.

To obtain “real money” lines of credit, you are going to need a good personal credit score of at least 620 but preferably 680 or better. Don’t worry bad credit does not stop you from building credit in your business the process may just take longer.

Guaranteed credit card or lines of credit

These services may even offer a credit card just for being their client, but it is usually only credit for their services and/or products. There have even been companies offering programs were they claim you can receive up to $100,000.00 in cash credit for a fee of $5,000. Does that sound too easy? Keep in mind, if it was that easy, most small businesses would have an easy time obtaining the needed funding.

If you personally have $5,000 that you can utilize to build corporate credit, you would be better served going to a bank like Wells Fargo and getting a business secured credit card which can become unsecured with a good payment history. Just remember “Buyer Beware.” If it sounds too good to be true, it probably is.

Buying Aged Companies / Aging Your Business

There is a popular belief that you can quickly obtain a large amount of credit by purchasing a Shelf-Corporation. Well in some cases you can. After all, most business credit applications will ask for a personal guarantee if the company is less than 2 years old. In order to do this, you really have to investigate the so-called shelf- corporations.

The first thing you need to investigate is whether or not a negative history is attached to the company and that the tax I.D. number is as old as the company .It is also important to make sure all of the companies documentation is up to date and the company should have a bank account that is no less that 6 months older than the company, unless the company has been in business for a long time and the bank account is about 1-2 years old. Basically this should be a real company that has been doing real business, not just documents someone filed in hope of selling it off as an aged corporation at a later date.

Do your homework, because there are a lot of companies that say they have aged corporations or shelf-corporations they can sell you. Always ask a lot of questions and make sure that the corporation you are purchasing is a real business. Not just papers filed with the state.

Final Word

The business credit industry is not regulated by the government the same way personal credit is, therefore you will have to do your homework when speaking with a credit building service and ask a ton of questions.

Just because a company has been in business for a long time, does not mean they are not over charging for their services or that you are getting the kind of service that is advertised. If the program sounds too easy or too good to be true, then you are most likely wasting your money. Keep this in mind. It takes years to establish a good business credit history not months.

Erik Salmon, CCFC, is the author of “The Art of Corporate Credit & Finance” and has consulted with over 10,000 companies on how to build corporate credit and fund business ventures. If you would like to find out more about business financing visit http://www.makeitandkeepit.com

Article Source: http://EzineArticles.com/?expert=Erik_Salmon
http://EzineArticles.com/?Corporate-Credit-Building-Scams&id=1197815

Technorati Tags: Business Credit Lines, Corporate Credit, Shelf Corporation

What is the best way to build corporate credit?

admin — Sat, 15 Aug 2009 02:12:59 +0000

It seems like it is becoming more and more improtant to build company/corporate credit. There are supposedly many ways to do this after incorporating or becoming an LLC, while not using your personal social security number… only your federal tax id number (business #).

Dunn and Bradstreet is the most widely accepted provider of corporate credit worthiness reports. Signup for your DNB# and submit corporate earning reports and P&Ls.

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Building Corporate Credit

admin — Thu, 13 Aug 2009 17:34:59 +0000

Can you really build corporate credit with no personal guarantee?

Yes, but it is sort of like building muscle you start out small and must keep working at it to build it bigger and bigger. Just as in becoming Mr Olympia you don’t start at the top it’s a lot of hard hours in the gym before ever getting close to becoming Mr. Olympia.

Building corporate credit is much the same. You can do it yourself, there are many books, ebooks and information out there so that you can learn what you need to do. It just needs to be done in a very systematic way, there steps you have to take need to be in a certain order.

Also, there are many companies out there who will assist you in building the credit making sure that you take all the steps in order. You may start with a new corporation or a shelf corporation depending on your goals. A shelf corporation older than a couple years is probably just a waste of money, you will pay a much higher premium for little benefit.

It will help in building corporate credit if you have a corporation 2 years old because it shows up as the corporation being around longer giving the impression as greater stability. When you get over 2 years the creditors may wonder what you did for the last 5 years when you have no history.

Technorati Tags: Aged Corporation, Corporate Credit, Shelf Corporation