Business Credit for new LLC

[Account Closed]

so I have good credit, but even with a personal guarantee, Lowe's would not give my business a line of credit..how do you start getting credit for a new business when even a place like Lowe's willl not give your new LLC a chance?? Also, a second question....with different investors or after so many units, I will create additional LLCs...how do people manage getting credit for their multiple brand new LLCs these days?? thanks

[Christian Sifuentes]

@David Dachtera you mentioned your mentor taught business credit? Any website or further information available on this? As mentioned earlier, very informative thread!

thanks 

[David Dachtera]

@Christian Sifuentes,

Actually, there's a new corporate credit class and instructor coming later this summer. Keep in touch and I'll pass along info as it comes my way.

David J Dachtera

[Lucy Sams]

@David Dachtera  I'd love to learn more about the credit class too.  Please keep in touch and share any updates with me.  Thank you so much!

[David Dachtera]

@Lucy Sams,

Sure thing. As soon as I hear something, ...

[Pauline Misiak]

Very very helpful info. Thanks for sharing. I also was able to get 5k line of credit when I opened my business bank account. 

[Andrew Donnell]

hi my name is Andrew,I saw the one gentle men wrote that you would have to use your personal guarantee on getting your business credit.But I'm getting business credit without out using my personal guarantee.by only using my EIN number.

And here is five venders to get started with

1.Quill.com

2.seton.com

3.Monopolize your market place

Everything about marketing and business 10 audio CD set

Report to Experian

Upon check out choose equal payments of $59.99 option request your order be invoice me are billed 

First charge take place in 30 days 

You'll need bank account,EIN, delivery address.

4.Reliable office supplies

5.Gempers

Work supplies and products

Report to D&B

Place order and select invoice me option of at least $50

They will pull your credit

If not approved,pre pay for order and keep purchasing and choosing invoice me option until approved for net 30

And never,never,never use your personal social security number on any business credit.thank you for reading and I hope this will really help you.

[Andrew Donnell]

Sorry for the typo I meant Gemplers

[Shawnda Velador]

Uline.com gave us our first line of credit when our llc was brand new. It was only $250, but it was a start

[Jose Garcia]

There's so many ways to obtain business credit its up to the individual and which way they want to go.

Net 30 accounts are a good way to start but keep in mind you still need money to pay them before invoice is due in full. So be extremely careful

There's alot of info out there on how to and where to start. Net 30 (at least 5) store credit (10) then banks etc etc etc

Please keep in mind, I'm not a credit expert or a financial advisor so please do your due dilligence!!!

[Tom Chen]

So here's a question...been researching this a lot but I was wondering if anyone has been able to create a large enough business LOC to help them with purchasing properties? Is there really a reason to do this for B&H investors?

[Dianne Russum]

There is a process to getting business credit without a personal guarantee.  After registering the business with the state, getting an EIN, and then establishing a business bank account, you must start with tradelines that report to Dun and Bradstreet, Experian business and Equifax business. Gremplers and Seton no longer report. Most accounts are net 30. Some starter tradelines are Uline, Quill, Monopolize Your Marketplace.  Just google business credit.

When I first established my business I received credit with Home Depot -$4,500 - now at $8,000 and Office Depot - $600 and increased to $1,000 but with a personal guarantee and using my SSN. Lowes would not approve me.

Otherwise if you have a good personal credit (680-720) score you may be able to get a credit card that you personally guarantee, maybe starting with your bank. 

[Sam MacDonald]

You can find up to date vendor credit information at CorporateCreditScore.com. They appear to keep the system current which makes it easier than sorting through old posts and wondering if the info is still accurate.

[Chris Baber]

I've been studying this subject a lot lately.  here's what I've learned and done so far.

I created my Corporation on 6/1/18 (3 weeks ago).  

I got my free EIN from the IRS on the same day.

I got my Free DUNS number from Dunn & Bradstreet (I paid $45 to expedite that number, as I'm trying to move fast on all this; it's not required.  do NOT buy the D&B program they will try to sell you to set up your credit or whatever BS they tell you.  it's a waste of money.)

I rented a virtual office to have a legal business address, which many companies want to see.  A PO Box is an instant denial in almost all cases.  A Mailboxes etc type address that looks like a real address is just as bad.  You MUST use a real address for your business.  Home address is better than other options, but a virtual address is the best option if you don't really have your own commercial business address.

IMPORTANT!!!

Make sure your address, phone numbers, etc all match across all business documentation.  If your address shows as 123 Main St Ste 100 with the IRS on your EIN, make all your other documents use the same address.  Don't use 123 Main Street, Suite 100  -  all spelled out.  Much of business credit (and personal too) is processed by computers and if they don't see your address matches, you will likely be denied.

Get your business number listed on 411 business.  Do NOT use a home phone number for your business.  (Opus gives me a number, a fax number and gets me listed with 411 all included in my $99/month rent)

Once you have everything setup (took me less than a week to get to this point).

Apply for the following accounts

I started with ULINE and ordered some storage containers

I went to Quill and got some coffee creamers for my Airbnb listing, and some markers.

I went to Pilot to get a gas card, then later found out they no longer report.  They may/likely will start reporting again, so I'll still use this card from time to time.

I went to Grainger and bought some tools.

I went to Barnett (a Home Depot owned company which will let you use your Barnett card at Home Depot!) and bought some PEX pipe I needed.

I went to People Ready and hired a guy to help me with some land clearing I needed done.

I went to Gemplers and bought some tools I needed.

I probably would not have bought any of these things from these companies normally, but by doing it, I now have 6 accounts which all will report to business bureaus, within 30 to 90 days.  There are some 'tricks' to ensure they report, but in general, wait for a month to change before paying any invoices to make sure they report your credit to bureaus. (Gemplers for example, will report on the 1st of the month whatever balance you have on the last day the month, so you must have a balance roll from month to month.)

I show above some of the basics required to get the card, and who they will report to.

Once you have 5 "payment experiences" on at least 4 vendors, you can move to companies in orange.

Minimum accounts to proceed is first column on left.  Don't jump ahead, you have to wait to hit this accounts and score minimums before moving forward.  If you try to skip ahead, you will probably be denied, so just be patient (the hardest thing for me to do).

Your D&B score (called PAYDEX) is calculated almost entirely on your pay history.  Pay on time, you get an 80 (out of 100), pay early and it goes up, pay late and it goes down.  So, it's VERY IMPORTANT to pay these bills a bit early, to ensure a high score.

I hope this gives everyone a decent guide on how to start this process.

The chart above outlines my plan to get which cards as I'm able, and the requirements to do so.

I use NAV.com to monitor my business credit for free, and also D&B offers free credit monitoring, which I also use.

My plan is to have the ability to get business credit cards in my EIN ONLY within the next 4-6 months.  

My goal is to acquire at least $100,000 in available business credit not tied to my social within the first year.

Feel free to hit me up for more info, if you find this interesting.

[Jonathan Shanks]

Good morning, First thanks for the great content. I wanted to know if you used you D&B number to apply for things or your EIN number.

Thanks




Originally posted by @Chris Baber:

I've been studying this subject a lot lately.  here's what I've learned and done so far.

I created my Corporation on 6/1/18 (3 weeks ago).  

I got my free EIN from the IRS on the same day.

I got my Free DUNS number from Dunn & Bradstreet (I paid $45 to expedite that number, as I'm trying to move fast on all this; it's not required.  do NOT buy the D&B program they will try to sell you to set up your credit or whatever BS they tell you.  it's a waste of money.)

I rented a virtual office to have a legal business address, which many companies want to see.  A PO Box is an instant denial in almost all cases.  A Mailboxes etc type address that looks like a real address is just as bad.  You MUST use a real address for your business.  Home address is better than other options, but a virtual address is the best option if you don't really have your own commercial business address.

IMPORTANT!!!

Make sure your address, phone numbers, etc all match across all business documentation.  If your address shows as 123 Main St Ste 100 with the IRS on your EIN, make all your other documents use the same address.  Don't use 123 Main Street, Suite 100  -  all spelled out.  Much of business credit (and personal too) is processed by computers and if they don't see your address matches, you will likely be denied.

Get your business number listed on 411 business.  Do NOT use a home phone number for your business.  (Opus gives me a number, a fax number and gets me listed with 411 all included in my $99/month rent)

Once you have everything setup (took me less than a week to get to this point).

Apply for the following accounts

I started with ULINE and ordered some storage containers

I went to Quill and got some coffee creamers for my Airbnb listing, and some markers.

I went to Pilot to get a gas card, then later found out they no longer report.  They may/likely will start reporting again, so I'll still use this card from time to time.

I went to Grainger and bought some tools.

I went to Barnett (a Home Depot owned company which will let you use your Barnett card at Home Depot!) and bought some PEX pipe I needed.

I went to People Ready and hired a guy to help me with some land clearing I needed done.

I went to Gemplers and bought some tools I needed.

I probably would not have bought any of these things from these companies normally, but by doing it, I now have 6 accounts which all will report to business bureaus, within 30 to 90 days.  There are some 'tricks' to ensure they report, but in general, wait for a month to change before paying any invoices to make sure they report your credit to bureaus. (Gemplers for example, will report on the 1st of the month whatever balance you have on the last day the month, so you must have a balance roll from month to month.)

I show above some of the basics required to get the card, and who they will report to.

Once you have 5 "payment experiences" on at least 4 vendors, you can move to companies in orange.

Minimum accounts to proceed is first column on left.  Don't jump ahead, you have to wait to hit this accounts and score minimums before moving forward.  If you try to skip ahead, you will probably be denied, so just be patient (the hardest thing for me to do).

Your D&B score (called PAYDEX) is calculated almost entirely on your pay history.  Pay on time, you get an 80 (out of 100), pay early and it goes up, pay late and it goes down.  So, it's VERY IMPORTANT to pay these bills a bit early, to ensure a high score.

I hope this gives everyone a decent guide on how to start this process.

The chart above outlines my plan to get which cards as I'm able, and the requirements to do so.

I use NAV.com to monitor my business credit for free, and also D&B offers free credit monitoring, which I also use.

My plan is to have the ability to get business credit cards in my EIN ONLY within the next 4-6 months.  

My goal is to acquire at least $100,000 in available business credit not tied to my social within the first year.

Feel free to hit me up for more info, if you find this interesting.

[Chris Baber]

You will use your EIN for the applications, but you MUST make sure your D&B information matches exactly everywhere.  Your address, phone number, etc.

They should appear identical everywhere, so there's no discrepancy.  Much of the underwriting is automated, so if everything looks good, you get approved instantly.  If not, a person gets involved, and who knows what can happen.

I spent hours on the phone finally getting D&B to update my address from

xx somthing Stree, Suite 200 to read as 

xx something St Ste 200

Because that's how it appears on my EIN with the IRS.  Seems trivial, but it is important.

The big benefit to you is that once it's all right everywhere, you know your credit can/will be reported correctly to D&B.  D&B uses a business address to verify and report on a business, so if people report to different ones D&B can treat it like a different business, which is not what you want.

[Rich Hupper]

@Chris Baber Hey Chris when I first registered my LLC with dun and bradstreet it was one name but I later changed it at the state level and updated the dun and bradstreet profile with the new name however the old name still shows up.

Also I am on IRS.gov but cannot figure out where to look up my company by the EIN. Can you share your experience?

Also is nav.com safe to enter your ssn and dob?

[Chris Baber]

@Rich Hupper D&B has been not very good at doing my updates either.  I would use iUpdate to try again.  I don't think that site asks for documentation.  If (after about a week) they tell you it's done, know that their own site can take another week or 2 to update.  

If you register at sam.gov to bid on government contracts, that site was notified within a day of D&B telling me my change was complete.  It also helps your credit profile to be registered.  it's free, and they will help you for free if you want.

I gave nav my info, so far no issues.  They haven't been quite as useful as I'd hoped, but more sources of info is usually better.

this may help

If you previously applied for and received an Employer Identification Number (EIN) for your business, but have since misplaced it, try any or all of the following actions to locate the number:

• Find the computer-generated notice that was issued by the IRS when you applied for your EIN. This notice is issued as a confirmation of your application for, and receipt of an EIN.
• If you used your EIN to open a bank account, or apply for any type of state or local license, you should contact the bank or agency to secure your EIN.
• Find a previously filed tax return for your existing entity (if you have filed a return) for which you have your lost or misplaced EIN. Your previously filed return should be notated with your EIN.
• Ask the IRS to search for your EIN by calling the Business & Specialty Tax Line at redacted. The hours of operation are 7:00 a.m. - 7:00 p.m. local time, Monday through Friday. An assistor will ask you for identifying information and provide the number to you over the telephone, as long as you are a person who is authorized to receive it. Examples of an authorized person include, but are not limited to, a sole proprietor, a partner in a partnership, a corporate officer, a trustee of a trust, or an executor of an estate.

[Rich Hupper]

@Chris Baber

Thanks for the update. I have not misplaced my ein but I do want to make sure dun and bradstreet, the state, and the irs all have the same physical business address like you discussed earlier. 

So you are saying I should register my business at sam.gov to help my credit profile? Even though I don't know anything about government contracts.

This screenshot below is what I am looking at at dunandbradstreet.com. My old company name ( allodial realty llc ) with my current duns number ( the one I have been using to open accounts ) seem to be existing together rather than my new company name RG Realty LLC. I just want to make sure RG realty is earning credit. I currently have a lowes and home depot revolving business card and a uline account tied to RG realty.

[Chris Baber]

If you don't have a copy of the EIN paperwork and don't know how they have your address, I suggest calling them to get a new copy.  I couldn't find a way online, but didn't look too hard.  The phone number you want is on their site.

side note: have a real business address and business phone number and be sure it's listed in the business 411.

I'm not sure what about your business has changed from that screenshot.  From that D&B account, you should be able to add another company.  Do that and search for your new company information.  If it finds your new company, you have 2 with them and I suggest calling them to see if they can be merged and let me know what they say.

If it doesn't find your new company info (which would be best, since it keeps your history and is the DUNS your other accounts report to), then I'd just update thru iUpdate to have that DUNS number reflect your current company information as well as getting everything else as correct as you can (website, start date, phone numbers, etc.)

Once you verify your update completed and your D&B profile matches your EIN, and is all correct, then apply for the SAM account.  I also know nothing about government contracts currently, but I understand it further develops your profile and improves how you look to lenders.  The added bonus is that someday you may find some investment opportunity that requires this, and it took about a week or so to fully process.

Good luck

[Spencer Merlis]

Just don't use HSBC.

There are many opportunities for accessing Credit with your Real Estate business but as someone who has attempted business banking with HSBC I must firmly advise against dealing with them.  Their business-customer services are a web of 1990s outdated technology and farcical bureaucracy where even the simplest transaction requires a series of phone calls (yes, believe it or not, you'll deal with agents of HSBC who don't have email access and can only contact you by phone) and often only goes in circles.

[Dee W.]

Business and corporate credit are both essential towards success in real estate. You can use 0% interest Business credit cards as a down payment when pairing with bank\private financing to get 100% financing on your deals. You do have to have good to great personal credit however. If personal credit is an issue, build your corporate credit when working on your personal credit. Start with net 30s and build from there until your business credit reports are strong enough to qualify on their own for bank financing without a personal guarantee. I have cash lines of credit from Syncrony bank WITHOUT a personal guarantee but it’s not an overnight thing. Good personal credit speeds up the process. If going the sole corporate route, it can take 6-12 months.