How DO you build Corp Credit???

Question

Answer

This is going to sound mean and I dont mean to assume anything, but the fact that you would even consider paying someone $3500 might be part of your problem with being forclosed on and having crap credit. Any loan you are going to get is going to need you to sign. You need to pay down your debt and spend less than you earn. Forget your business credit and get your own house in order. Use that 3500 to pay something off. You build credit by getting someone to give you credit and paying that person/company on time every time.

Answer

Calm down Steve :mrgreen:

Answer

There are some old posts that discuss the details of building corp credit. Perhaps Steve (librarian of links) will post some links to old threads. Its essentially the same as building up your own credit. Some stores will give your corporation credit for a very small limit without a personal SSN. Start with those. Ask the bank where you have your account. Its a long, slow process.

Answer

Mandy, I agree with your accountant. Separating business activity from personal activity is important. Doing what you can to have any business assets in the business name is a good idea. An often overlooked concern is personally insuring vehicles used for business purposes. Some insurance companies might deny a claim if they found out an accident occurred while a vehicle was being used to conduct business. It can take time for a corporation to build sufficient credit to purchase real estate and even then it maybe necessary to personally guarantee it.

Answer

Mandy, Building corporate credit is not the much unlike building personal credit. I don't see where paying someone $3500 is going to help much with this process. There are companies like Staples, Office Depot or secured credit cards that may giving you credit in the business name. You may be able to get credit from some of your suppliers by also offering to personally guarantee payments. Building credit is a process and you will probably want to get a DUNS account to verify what your business is like. They may also be able to offer credit building suggests as well. In my area it is easy to find a representative that can sign you up with a DUNS number.

Answer

Was this quick enough? http://www.biggerpockets.com/forums/12/topics/37432-building-business-credit http://www.biggerpockets.com/forums/109/topics/42559-business-credit-for-new-llc- http://www.biggerpockets.com/forums/79/topics/46689-thomas-kish-business-credit-coaching http://www.biggerpockets.com/forums/110/topics/28198-building-business-credit-make-sense- http://www.biggerpockets.com/forums/94/topics/34292-building-business-credit-help http://www.biggerpockets.com/forums/94/topics/45529-business-credit-d-and-b-questions http://www.biggerpockets.com/forums/94/topics/49256-establishing-business-credit

Answer

Did you just recently buy this corp or do you mean you've had it in existence for a while? I'm guessing you just bought it since you say "the company we bought our corp through". There's no magic bullet here. These companies that sell "seasoned shelf corps" and then want big fees to get your corporate lines of credit are just taking your money.

Answer

Jeff- Why wouldn't we pay our mortgage? Because it jumped from $5,000 to $14000 a month and the promise of a refi before that happened by our lown officer was never able to happen. It wasn't that I wouldn't pay my bills, it's couldn't. But we do pay our bills on time. Assume that I don't know how to buy RE and make a good deal, because that's true. (Which is why I'm here.) But please don't assume that I'm one of those with maxed out credit cards, new fancy cars and dodads trying to live the good life on credit and a mediocre income. But if you were honestly trying to help me with that kind of post then all I can say it thank you. It didn't real work for me but thanks for trying.

Answer

If you didnt have a lot of debt why wouldnt you pay your bills? Most of the people who would walk from a property for business reasons were not on the note personally and it would only affect the the property and anything collateralized. It sounds like you walked from a property that you were on the hook for and it screwed up your credit. There are a lot of people who have a lot of personal debt who come to BP wanting to invest. My number one advice (most people would agree) is to get your personal finances set up. Those are easy compared to running a company. I am sorry if my post didnt help.

Answer

Here are some additional links: http://www.biggerpockets.com/forums/94/topics/17238-get-business-credit-part-1 http://www.biggerpockets.com/forums/94/topics/15256-d-amp-b-duns-worth-it- http://www.biggerpockets.com/forums/94/topics/15663-anyone-used-paydex-in-there-new-business- http://www.biggerpockets.com/forums/94/topics/10833-corporate-credit http://www.biggerpockets.com/forums/110/topics/28198-building-business-credit-make-sense-