All Forum Posts by: Stanley Whigham

@David Dachtera,

You're right about the secured line of credit. Actually, I cut and pasted one of my posts from a few years ago when credit was tighter. If you have 700+ personal credit, the bank will offer you a business credit card and line of credit  of $7,500 - $10,000 each. This will be your initial bank tradeline. There is a method for achieving the regular deposit requirement. I don't want to explain this work around because the banks monitor these forums. Hint: A "mid 4" bank rating requires monthly deposits of $4,000. Most don't know that this doesn't mean average, but total deposits of linked accounts. When you obtain your first unsecured business credit card (based on having 700+ credit), you can establish 2 checking accounts in the same bank and use the credit line for deposit activity.

The fastest way to build business credit today is to bypass vendor credit and go directly to the banks-- unsecured business lines of credit. In 90 days business owners can obtain $100k to $250k in unsecured business lines of credit themselves.

Follow these simple steps:

1) Establish a strong internet presence for your company by listing it on at least 15 sites-- Facebook, LinkedIn, Twitter, Scoop It, Bing, Manta, 411, Google+, Google Places, etc.

2) Purchase a certificate of deposit and borrow against it (now you have a secured loan ).

3) Make regular deposits into your business checking account for 90 days to establish a favorable bank rating.

4) Add higher level trade references to Dun and Bradstreet to provide depth to your Paydex Score (net 30s are usually lower amounts; you'll need higher approvals from your trade references-- 2k to 4k).

5) Upload your company financials to Dun and Bradstreet to complete your file and create a strong credit profile.

6) After 90 days apply for unsecured lines of credit. Here is why you'll be approved:

* a bank has already loaned your business money (secured loan); Dun and Bradstreet, Experian Business and Equifax Business have all reported your loan(s). The secret is to pay back and repeat the secured loan at least 3 times in the 90 day period.

* the added trade references will add credit profile depth, as will uploading your financials

* your deposit activity and use of bank products (cd) shows ability to repay

* bank rating is formed after 90 days of deposit activity 

To purchase real estate with business credit, you need to form a "funding entity". Because lenders decide which industries are the most "lendable" and real estate companies are still out-of-favor since the downturn of 2008, real estate funding vehicles should be Corporations or LLCs in favorable industries. Your goal is to get unsecured business lines of credit.

Start-ups face the problem of a business with no age. Lenders look for a minimum of 2yrs in business when approving unsecured lines of credit. Fortunately, many business owners were doing business out of their "garages" as sole proprietors long before incorporating or forming their llc. When forming your business credit profile, it is important to register with SAM and notify the IRS of your sole proprietor experience. Dun and Bradstreet obtains information from these federal agencies and will update your business credit profile to reflect this sole proprietor experience. Also, be sure to list your business on the web and include your total business experience in your profiles.

Take these steps:

1) Establish a strong internet presence for your company by listing it on at least 15 sites-- Facebook, LinkedIn, Twitter, Scoop It, Bing, Manta, 411, Google+, Google Places, etc.

2) In addition to your business checking account, open an expense and savings account in the same bank. If you have 700+ personal credit, the bank will offer you a business credit care and line of credit ($7,500 - $10,000 each). These will be your initial business tradelines

3) Make regular deposits for 90 days to establish a favorable bank rating (use credit line to make deposits).

4) Add higher level trade references to Dun and Bradstreet to provide depth to your Paydex Score (net 30s are usually lower amounts; you'll need higher approvals from your trade references-- 2k to 4k).

5) Upload your company financials to Dun and Bradstreet to complete your file and create a strong credit profile.

6) After 90 days apply for large ($25,000 - $40,000) unsecured lines of credit.

Whenever I consult with business clients, I go with them to the bank to apply for business checking accounts. I advise them to open business checking accounts in at least 2 banks. Prior to opening the business checking accounts they do these things: 1) Establish a Dun & Bradstreet profile to reflect 3 years business of experience. If your business has been incorporated less than 3 years, the IRS will allow your sole proprietor experience on your business Employer Identification Number (EIN) application. Next, an online presence is established using your sole proprietor experience in your business listing profiles. Banks do a Google Search of your business name and address while asking questions about your company's gross sales, net income, number of employees-- you need 5, etc. Your company online presence will show 2 pages on Google with your business occupying all ten spaces, i.e., the whole page. When your business shows up on 2 pages of Google, your business has established a good advertising presence and passes the first test. 2) Get an office in a commercially zoned area. Banks can tell if you are using virtual offices or UPS boxes. They feel it shows lack of stability in business. Go to an older part of town where rents are cheaper. 3) Maintain your good credit (700+) -- it is your key to getting a business credit card while opening business checking accounts and fast-tracking your business credit development. Most banks will give you a business credit card with a $7,500 credit limit when you take the time to establish a good D&B profile, get a business phone (Google Voice is a voice over ip and is considered a landline), address and online presence. With one business credit card, you can leverage your business credit profile very quickly. When your card(s) come in the mail, go apply for a COSTCO business credit card (with bank business credit card in hand). Soon (3 - 6 months), you will have multiple credit lines established on all 3 business credit bureaus. Large unsecured lines can be obtained once a favorable bank rating is established for 3 months at your new business bank accounts. Now your company can survive beyond 5 years because it has working capital for emergencies.

Whenever I consult with business clients, I go with them to the bank to apply for business checking accounts. I advise them to open business checking accounts in at least 2 banks. Prior to opening the business checking accounts they do these things: 1) Establish a Dun & Bradstreet profile to reflect 3 years business of experience. If your business has been incorporated less than 3 years, the IRS will allow your sole proprietor experience on your business Employer Identification Number (EIN) application. Next, an online presence is established using your sole proprietor experience in your business listing profiles.  Banks do a Google Search of your business name and address while asking questions about your company's gross sales, net income, number of employees-- you need 5, etc. Your company online presence will show 2 pages on Google with your business occupying all ten spaces, i.e., the whole page. When your business shows up on 2 pages of Google, your business has established a good advertising presence and passes the first test.  2) Get an office in a commercially zoned area. Banks can tell if you are using virtual offices or UPS boxes. They feel it shows lack of stability in business. Go to an older part of town where rents are cheaper.  3) Maintain your good credit (700+) -- it is your key to getting a business credit card while opening business checking accounts and fast-tracking your business credit development.  Most banks will give you a business credit card with a $7,500 credit limit when you take the time to establish a good D&B profile, get a business phone (Google Voice is a voice over ip and is considered a landline), address and online presence. With one business credit card, you can leverage your business credit profile very quickly. When your card(s) come in the mail, go apply for a COSTCO business credit card (with bank business credit card in hand). Soon (3 - 6 months), you will have multiple credit lines established on all 3 business credit bureaus. Large unsecured lines can be obtained once a favorable bank rating is established for 3 months at your new business bank accounts. Now your company can survive beyond 5 years because it has working capital for emergencies.

@Jose Belman uploading financials to DnB is pretty simple.  Here are instructions from their website:

How can I add or update a Financial Statement in my report?

A financial statement is the best indicator of a company's financial strength. Dun & Bradstreet relies heavily on the financial statement to derive scores and ratings. Supplying minimum financial data will be sufficient for Dun & Bradstreet to calculate scores and ratings; however, to ensure we most accurately portray your company's credit strength, it is highly recommended you provide full financial details. Failure to provide this data may cause our report to not fully reflect your business’ financial strength and may have a negative impact on how other businesses evaluate the strength of your business.

Financial Statements may be directly entered or electronically uploaded using our iUpdate web site. Visit https://iupdate.dnb.com to register. Once registered, select Submit Financial Statement from the Main Menu. 

The fastest way to build business credit today is to bypass vendor credit and go directly to the banks-- unsecured business lines of credit. In 90 - 120 days business owners can obtain $100k in unsecured business lines of credit.

Follow these simple steps:

1) Establish a strong internet presence for your company by listing it on at least 15 sites-- Facebook, LinkedIn, Twitter, Scoop It, Bing, Manta, 411, Google+, Google Places, etc.

2) Establish a business checking account at 2 banks (with a 700 credit each will offer a business credit card.

3) Make regular deposits into your business checking account for 90 days to establish a favorable bank rating.

4) Add higher level trade references to Dun and Bradstreet to provide depth to your Paydex Score (net 30s are usually lower amounts; you'll need higher approvals from your trade references-- 2k to 4k).

5) Upload your company financials to Dun and Bradstreet to complete your file and create a strong credit profile.

6) After 90 days apply for unsecured lines of credit. Here is why you'll be approved:

* a bank has already loaned your business money (business credit cards); Dun and Bradstreet, Experian Business and Equifax Business have all reported your business credit cards.

* the added trade references will add credit profile depth, as will uploading 

* your deposit activity and use of bank products (business credit cards) shows ability to repay

* bank rating is formed after 90 days of deposit activity 

@Charissa Mood,

1) ...can I still open a business checking account with that LLC here in California? Yes, it would be a foreign LLC operating in California. Opening the business checking at a bank where you have a personal checking account will likely mean higher credit limits on the business credit card.

2) ...not sure what the does for me since I have no employees, but what else do I need to extend a line of credit under my business and not my personal SSN...?  The EIN allows the IRS to link the business owner with the business, since the business will be filing taxes.  It also helps the banking community because the EIN is a unique identifier for the business, much like a driver license and lets the bank "know its customer" in accordance with the Patriot Act after 9/11.

Go to the website below and list your business with at least 15 sites.  Make sure you list with Google+, Facebook, LinkedIn and Yahoo also. http://www.locallytype.com/pages/submit.htm

Wait a couple weeks after listing for Google to rank them-- before opening the business checking account.  The reason you do this: the bank will research your company online, looking for 3rd party verification that your business is legitimate.  They will type the name of your business into Google and see what comes up.  If you have at least one page on Google with all ten spots filled, your business will look stable enough for the bank to extend credit.  Also, it is very important to get a DUNs number because is another unique identifier for your business.

Its not difficult to obtain unsecured business lines of credit if you have good personal credit. In 90 - 120 days you can get approved for $100k in unsecured business lines of credit.

Follow these simple steps:

1) Establish a strong internet presence for your company by listing it on at least 15 sites-- Facebook, LinkedIn, Twitter, Scoop It, Bing, Manta, 411, Google+, Google Places, etc.

2) Establish a business checking account at 2 banks (with a 700 credit each will offer a business credit card.

3) Make regular deposits into your business checking account for 90 days to establish a favorable bank rating.

4) Add higher level trade references to Dun and Bradstreet to provide depth to your Paydex Score (net 30s are usually lower amounts; you'll need higher approvals from your trade references-- 2k to 4k).

5) Upload your company financials to Dun and Bradstreet to complete your file and create a strong credit profile.

6) After 90 days apply for unsecured lines of credit. Here is why you'll be approved:

* a bank has already loaned your business money (business credit cards); Dun and Bradstreet, Experian Business and Equifax Business have all reported your business credit cards.

* the added trade references will add credit profile depth, as will uploading your financials

* your deposit activity and use of bank products (business credit cards) shows ability to repay

* bank rating is formed after 90 days of deposit activity 

This site is very helpful for the Duns number process, etc.  

http://www.allbusiness.com/how-to-get-a-duns-numbe...