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Old 14th February 2007, 07:06 PM   #1
mbo515
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Red face How To Establish Business Credit

I started a rehab business last year and would like to purchase the homes using my business not my personal credit. What would be the best way to establish my business credit to be able eventually to purchase the homes in my business name.

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Old 20th February 2007, 01:58 PM   #2
Raise Capital
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I've seen this posted in another forum. This should help you!

Establishing business credit is tough, especially for a new business. But remember: It CAN be done, and it's easier than you think. Follow these steps, and you'll be on your way to an excellent credit profile.

Here is what I have learned:

~Set up a Corp business. Smart to protect yourself and the only type of business that allows you to keep your business credit and personal credit seperate. LLCs and Sole are okay for contract work or property investment, but you still should get a Corp to manage them.


~Once you get your EIN, through registrastion, set up your business phone. You will need to make sure it is at an address not the same as your home (because it is not looked upon favorably by the lending world) and the phone will need to be registered in the 411 directory. Quite a few have had success with calling the local phone company and getting a call forwarding number. It is a business number that automatically forwards to any desired phone. Make sure it will list with 411 before signing up however.


~After receiving your first phone bill, go to www.staples.com and fax in copy of application along with copy of phone bill to apply for business credit. Use professional letterhead for coversheet. You should receive the standard $750 credit line with no personal guarentee (herein referred to as "PG").


~Also during this time go to www.dnb.com and register your business to receive a D&B number. It will take 30-40 days to receive it in the mail. If you want to establish business credit sooner, you can pay for the credit builder ($399), but it's not required. After you have at least 5 business accounts reporting, you'll receive a paydex rating (similiar to FICO for personal credit).

*REMEMBER - a paydex score will only take into account your payment history. Unlike personal credit, this is counted in days. For example, if you pay your invoices 14 days late, it will be reported as such. If you pay your account off before the statement or invoice comes, it will be reported as such. The bottom line: Pay your invoices on time, and you will get a better paydex score.


~Set up the following business accounts, and make at least one purchase, you want to pay this off BEFORE the first statement hits:


*1. UPS - www.ups.com

2. FedEx CONTACT Revenue Services Department 1-800-622-1147 press 4 then 1

3. Barnes & Noble CONTACT Purchase order department 1-212-414-6000

4. Quill Corporation 100 So Schelter Lincolnshire, IL 60069 CONTACT Credit Department 1-800-634-3090

*5. Viking 8200 East 32nd St No. Wichitas, KS 67226 CONTACT Credit Department 1-888-454-5457

6. Rapid Forms 301 Grove Rd Thorofare, NJ 08086 CONTACT Billing Departement 1-800-257-5287

*7. Nebs - www.nebs.com

*11. Office Depot www.officedepot.com Apply online

(*- Really easy to get)

~Need a cell phone? Once you have a EIN and D&B# apply for a business account. Usually T-Mobile is the easiest to get credit with, but I've heard that Sprint, cingular, and Verizon are easy to get as well. Nextel? Good phone, but you have to jump through a lot of hoops, and you usually have to put down a deposit.



~If you have at least 30-45 days to use, the following companies automatically report to D&B creating your business file:

-FedEx

-UPS

-Staples

-Viking

-Nebs

-Office Depot



~Once you have a paydex score of 75+, you can apply for Lines of Credit (herein referred to as "LOC") or business Credit Cards without any sort of PG. The cards/accounts desired are:



Enterprise Rent a Car (Corp. Rental) www.enterprise.com

Wells Fargo Bank (Visa/Mastercard) www.wellsfargo.com

Bank of America (Visa) www.bankofamerica.com

American Express (Green/Gold) www.americanexpress.com

Chevron www.chevron.com

Mobil www.mobil.com

MBNA Bank www.mbna.com

Wells Fargo (Line of Credit) www.wellsfargo.com

Bank of America (Line of Credit) www.bankofamerica.com

Union Bank (Line of Credit) www.unionbank.com

Cal Fed www.calfed.com

United California Bank www.unitedcalbank.com



Most companies will not ask to see financials for loans of 50k or less.

I hope this helps, and I wish the best of luck to you in your pursuit of credit


Best Buy - Status; 1-800-811-7276
Borders (734) 477-1039 - Fax Application (877) 254-9229 - Status Update
BP/Amoco Status Update (800)365-6204
Chevron/Texaco Business Card Status Update (888) 243-8358
Citgo Fleet; (734) 477-1039 - Fax Application (877) 254-9229 - Status Update
Citi AA: 888-662-7759
Citibank Status:800-645-7240, 800-288-4653, 800-750-7453
Conoco - Status Line, automated 1-866-289-5622
Experian Business:888-211-0728
ExxonMobil Business Card(800) 903-9966
HD Commercial800-685-6691
HDMC Sondee 877-969-9030.
Home Depot MC:877-969-9039 (Sondee/Sedonia?)
Key Bank:800-254-2737
Lowes - Status; 1-800-445-6937
Lowes - Underwriter;1-866-232-7443
Lowes Fraud/UW: 800-444-1408
MBNA - 1-800-673-1044
Meijers MC (801) 517-5560
Office Depot - Staus Line, automated 1-800-767-1358
Office Depot;800-767-1358, 800-729-7744 automated line to check status.
Office Max - Status Line, atomated 1-800-283-7674
OFFICEMAX STATUS: (800) 283-7674
Philips 66: 866-289-5630, 800-610-1961
Phillips 801-779-7369
Radio Shack;1-800-442-7221
Sam's UW:800-301-5546, 866-246-4282
Sears - Status; 1-800-599-9710
Shell Fleet Card Status Update(800) 223-3296
Shell: 800-223-3296, 866-438-7435
Shell; 800-377-5150
Staples - Status Line, automated 1-800-767-1275
Staples: 800-767-1291, 800-282-5316
Sunoco Corporate Card(800) 935-3387,(800) 278-6626
Sunoco: 800-310-4773
Target: 800-440-5317
Tiffany:800-770-0800
VALERO (800)324-8464 ACCOUNT STATUS
Valero;1-877-882-5376
Walmart;800-301-5546, underwriting 877-294-7548
Wright Express; 888-743-3893


These links will take you to the application page, or a page that has the application link on it.
• Amazon.com - www.amazon.com
• Best Buy - www.bestbuy.com - www.bestbuybusiness.com
• Citgo Fleet - www.citgo.com
• Conoco / Phillips 66 / 76 - www.conoco.com
• Dell Computers - www.dell.com
• FedEx / Kinkos - www.fedexkinkos.com
• Home Depot - www.homedepot.com
• HD Expo - www.expo.com
• Home Depot Master Card - www.homedepot.com
• Lowes Commercial - www.lowes.com
• Nebs.com - www.nebs.com
• Office Depot - www.officedepot.com
• Office Max - www.officemax.com
• Quill.com - www.quill.com
• Rapid Fuel - www.rapidfuel.com
• Shell Fleet - www.shell.com
• Staples - www.staples.com
• Sunoco Corporate - www.sunoco.com
• TechDepot - www.tectdepot.com
• TigerDirect - www.tigerdirect.com
• Uline - www.uline.com
• Wright Express - www.wrightexpress.com

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Old 17th March 2007, 12:04 PM   #3
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Great post, Raise Capital.

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Old 8th April 2007, 04:40 PM   #4
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Post Where To Improve Credit Score

I think, that is interesting for all.

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Old 8th April 2007, 06:11 PM   #5
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Here is where you start. Go yo www.experian.com and sign up for their free thirty day trial. Get your score then cancel the trial following the directions on the web page.Heres the magic number ....680.....thats the number anyone who cares about your credit likes to see and thats where the good interest rates are..the more above it the better.Are you below it?Your going to need a hard copy of the creditors listing on your report. You are entitled to one free credit report a year thru the three credit reporting agencies which are : Trans Union, Experian, and Equifax . On these reports you will find the information as to who is reporting on you and where they are located and phone numbers to reach them.Get ready to write some letters. Write each negative reporter a letter stating you are disputing the validity of the report because you have no idea who they are and why you are saying you owe them money. They have 30 days after receipt of your letter to provide proof that you owe them. About half of them will not respond and then you write them a second letter stating they are in violation of federal law to report you any further on any of the reporting agencies. Sounds to easy but believe me, credit is my business.This should boost your score tremendously as you continue to keep the good credit being reported paid and current. here's something that really ticks me off.Do you have mnthly payables such as a cell phone? cable tv? etc? Well check your report ..are they there if you are curent?? no, absolutely not. But stop paying them and then take a look.whammo they are the first to cry deadbeat.Call your providers of these and other monthly payables and request they report the good standings to the agencies.They dont have to but many will..Should be law that if they report you bad then they must report the good.Now ...when you contact the creditors that want money they are going to offer very good sounding settlement offers to get you paid up and get you off the books and into the process of writing off the amount you didnt pay.. dont do this.. it shows up on your report as paid but not in full ,debt settled....this is bad....as bad as not paying..call them all and notify them you are creating an account to begin paying off all creditors and request that they stop all interest and late fees so you can accomplish this...sounds crazy but all most all of them will...if they wont dont worry about it , just dont pay them....they'll come around.499/500 times they will cooperate to get paid.decide what you can pay every mnth in a lump some and divide this amongst the creditors and start paying them down. There you just did what any credit repair company can and would do.medical??these are not looked at very closely but are looked at.... decide if you can afford to pay this part and iff you cant it is easy and common for people to go to the office of the medical providers and let them know you cant pay them ...They will charge it off so they can spend time on people who will pay.Some of this sound unethical and shady but hey, it beats a b.k. on your record and it works...ive seen 500 scores skyrocket to 690's and above in as little as 3 mnths.sorry this is so long but this is barely scraping the surface. So what was the question?? where to fix your credit??? I say everywhere. I can also tell you how to seperate your business score from your personal score . A very handy thing In times of seeking financing for business "stuff"...ok hope this was ok.

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Old 8th April 2007, 07:37 PM   #6
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The name of this thread seemed to change on me so my last reply is irrelevant. Carry on.

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Old 21st April 2007, 08:13 PM   #7
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I thought this could help many people. It is hard to dig this up. Thanks to many forums that have this information available.

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Old 1st May 2007, 05:02 PM   #8
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Im have a used car dealership and auto detail shop. I am having issues with my DnB number, I know I got one but I forgot what it was and when I called them they said that I have to pay $599.00 to activate it. they show me in the system but they say creditors cannot report to them. Is this true? If not how do I get my company credit rating because I have had a staples card for at least 6 months and have been paying on time, but no reporting. I just signed on to UPS and got an approval. Is there a way around this?

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Old 4th May 2007, 05:19 PM   #9
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That is if the creditor is reporting to them. The DNB is only good for vendors who offer 30 day delayed payments. If you are thinking about credit cards and lines of cash credit, your EIN number is what major card holders are going to be looking for. This is reported to all credit bureaus.

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Old 11th October 2008, 11:00 PM   #10
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Are there any certain payment terms that I should request when applying to UPS, Quill, and Office Depot?

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