Get Business Credit - part 1

[Marc Augustine]

I plant to post some helpful instructions and guide lines that should help you guys who want to establish business credit to do so..this is the first..please forgive me if i leave out anything and feel free to ask questions...

Setting THings Up

Ok.

So now that i am at the point that i want to establish business credit and i realized that my current business won’t work i had to set up a new business and ensure that everything it set up correctly for the credit building to run smoothly..

first you want to incorporate. A sole proprietor won’t work since the point is to separate the liability. An llc or corp will work but in my research it seems that companies usually give more credit to corps…please understand that this isn’t a rule..this is my research…and plus, a corp was cheaper than an llc to set up in fl….lol

Second you want to get your business set up. You need a business phone line at the same address you used for your business inc. and in the same business name with your tax id number. Get your business listed in 411 under your business name. Granted you got your tax id number. :) . http://www.irs.gov/businesses/small/article/0,,id=97860,00.html .. ALL info is on that link for the tax id.

On the address; you can use your address. There are companies that offer virtual office services, try not to use any of those, they tend to be black listed.

With regards to the business phone line, you can get a remote call forward, which is cheaper, under the business name. You will be listed in 411 but in some cases, creditors like to “verify” the business by calling you on the listed number and you calling back from that number. With an RCF, you cannot call back from the number. You can simply get a cell phone and list it in the 411 by paying a fee online. I have not used that service but its possible.

Third is the Duns Number - this is a number that the Credit Bureau (dun and bradstreet) use to file your credit. Many creditors ask for it but some applications may not need it. When calling DNB(defined in the previous post) to get your dnb number, they will try to sell you something. Anything from a credit monitoring service to a credit builder program. If you have money laying around by all means spend the $400+ on a credit building program but chances are, if you are reading this blog you do not have money to waste. Plus it doesn’t do much for new businesses.DO NOT PAY.

call 866-705-5711 and state you are applying for federal grants/contracts and you need a duns number. They will give it to you on the spot with no solicitation. You can also apply on their website www.dnb.com which will take 30 days.

you need all your business info to get the DnB Number, including the Tax ID/EIN.

After these steps, comes the ordering of items…

the fun has almost begun.

[Larry Seith]

For all those folks interested in establishing business credit, go to this website: http://www.businessfinance.com/
They will walk you through all of the steps necessary with great explanations of why you need to do each step and the good news is that all the information is FREE. It's a great resource.