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03 - Raising Capital Funding Options for Small Businesses

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  #21  
Old 12-14-2006, 01:50 AM
Nemesis_318 Nemesis_318 is offline
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how is your biz registered? SP, LLC, or Corp??
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  #22  
Old 01-05-2007, 01:06 PM
jpadvo jpadvo is offline
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Quote:
Originally Posted by Raisecapital01
You can do this. Make sure all your ducks are in a row. You must have a business phone number that is answered all the time. You must have more than 5 - 6 employees.
So it's hard to startup.
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  #23  
Old 01-07-2007, 10:26 AM
newwebstar newwebstar is offline
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You can have 2 LLC's and build credit for both of them with the D&B and not have them "tie" them together. If you have a reason for doing this, and have a couple of LLC"s, go for it.

Make sure your vendors will "be approved" as a D&B client.
I know we sent in 5 vendors to receive a Paydex score, and a couple of them did not count.
I had to keep submitting new vendors who were approved.

I have not seen a "real account" that did not require a PG.
I do not believe the D&B count financial institutions or lenders in their files as well.

I know a lot of lenders are also utilizing Equifax (buisness) for their credit criteria due to limited information from the D&B.
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  #24  
Old 11-18-2007, 10:35 PM
gamletovairena gamletovairena is offline
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Okay, okay.....

Like one of the members above I just had to respond to something I saw posted here:


Quote:
Originally Posted by Raisecapital01
You can do this. Make sure all your ducks are in a row. You must have a business phone number that is answered all the time. You must have more than 5 - 6 employees.
Raisecapital01 is right to stress the importance of having all our ducks in a row - but one does not have to have more than 5 to 6 employees in order to create a business credit file. And it's a good idea to have a phone that is always answered, yes, but you can get a forwarded number as was mentioned. Not a must but helpful.

Also, it is not hard to start a business file. Just takes some focused intention, and the investment of a little time and patience.

One thing I see a lot is TPTB put info on their warning pages about how those who want a "new credit file" are often encouraged by unscrupulous services to illegally make use of a TIN - or these days, of an EIN. They word these warnings in such a way as to suggest that using an EIN and starting a new file is illegal. There truly seems to be an attitude or belief program running that is not only about preventing actual criminals from making use of this info. But also about punishing, for life, consumers that have had credit and/or financial challenges. As if they think the only thing that might be worse is being a felon. Most people are good and do not create bad credit on purpose. Strengths and limitations, we all have them. And I'll offer that most of us want no one rummaging around in our skeleton closet. Whether there are only one or two in there or a whole cemetery of them.

Long way around to saying this action is illegal only if one uses their EIN for fraud. As in using it in place of a social security number and not indicating it is an EIN. But it is perfectly legal to start a business, online or off line - as a sole proprietor or via incorporation. But if one incorporates their biz there are legal protections a sole proprietor would not have. And the idea is, no matter the inspiration, to keep personal and business liabilities separate. And remember that the government cannot discriminate based on a belief that your business was started for reasons they do not approve of. Otherwise nearly every corporation in the western world and beyond would be shut down for reasons of morality. I mean, think about it.

Another thing I'd add is to always make use of more than one source for your information along these lines. There will always be things these sources have in common and things they may not have in common. Some will have just one fresh mention that could change your whole approach for the better. Some will include things that are not so wise. And by the way, a nod to arcadhia for his addition to this thread. I believe that is from the "Mother Thread" over at the creditboards.com business forum as someone mentioned. A really great website! Anyone with credit concerns would be wise to join and read, read, read. A grassrooots web locale that was started by some folks who were once in dire credit straights-and the pages over there have grown by leaps and bounds. One of the best free resources in existence. One important note: the business credit forum is great - but some of the more helpful tiny but significant details about the biz credit route were left out of the mother thread. For instance, it can be very helpful to have a business address different from your home address. Even if you have a home office. So a mail service might help. One that is not a chain. Nearby perhaps but consider setting it up in a different zip code. Separate biz credit and the avoidance of personal guarantees may hold more weight if your personal credit address is not in your new biz file. Things like that.

Two of the best resources for incorporation for the layperson who is just starting out are legalzoom.com and toolkit.com. The latter has more comprehensive info on the various kinds of incorporation, pros and cons, requirements for each. Also, specific info/costs for each of the 50 U.S. states, an "ask alice" section (like "dear abby" for business) and a search option. Just be sure you choose to search the site itself before you hit the "send" command. Note that they seem to be under re-construction at the time of this post.

Finally, Letsdobusiness asked if anyone has done this. The answer is, yes. It's not just theoretical:

And realize that attorneys have been providing this service to the wealthy for years. It used to be pretty much a secret shared only with the 'elite.' I know a trust-funder, a friend, whose lawyer did this for him before I really knew anything about it. I once worked for him and I remember asking him why he had a separate credit card. He was sort of closed mouth about it at the time. Now I understand why. There are still those people that will try to get away with charging thousands of dollars for not necessarily even the service but just the information. On one hand it is very valuable if they are working for you or providing the info honestly. And attorneys who do it should get paid, of course. But these days there are books (online and also hard copies) that can be purchased for less than $100, even for well under $50. And lots of at least basic information on this subject is available for free.

Make use of your intuition when ordering to avoid being scammed. I've ordered several resources over the years, all via the internet. Some chock full of very bold suggestions (you get my drift?) and others that were in the vein of the primary topic here and therefore totally legal. I've been very lucky in that I was never scammed and even the hard copy books were delivered very quickly. But I also paid close attention to which ads/websites seemed to be sticking around for the long haul. I've done a lot of reading and bottom line: there is never any good reason to break the law. Make good use of it instead and start a wonderful new career, part time or full time.

Phew! Okay, maybe you can tell I'm kind of passionate about this topic, lol! Just remember the only perfect moment exists in the Now. So live your dream now. Baby steps or giant leaps, start a business you love and you may even be able to pay off your personal debts faster. Win-win.

Best of Luck!
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  #25  
Old 12-05-2007, 09:14 PM
slimfifa slimfifa is offline
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Some really good information here however...

As a Commercial Banker of 8+ years I can tell you it is very easy to get credit for a start up company. In fact, you already have it. It is your personal credit history. Typically any start up business is judged on a few key items. Those are: a solid business plan and projections (these should be reasonable, remember that telling a lender that your projections are conservative is something he/she hears every time) and the financial strength of the owners (typically anyone with more than 20% ownership). I always tell people that the three main hurdles to clear when reviewing financial strength are liquidity, leverage, and cashflow.

Feel free to email me for additional info.
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  #26  
Old 12-29-2007, 09:09 AM
Quintin Quintin is offline
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Default this is some good stuff!

i see alot of people here know their stuff!
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  #27  
Old 01-13-2008, 09:25 AM
rocdogfab
 
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Default More D&B Tips

We've been slowly working our way through the Dun and Bradstreet process with 2 different LLC's, so I thought I'd share a couple other details.

Use "government contractor" request for a number---we started down the general request route only to receive the return call trying to pressure us into their credit builder product. When we refused, the number process went no further. The one day response time of the govt contractor took 5 days and a call to D&B, but we were successful in getting a number.

To find out who is reporting on your file, you have to dispute your file. Then you will receive a list of companies and credit limits and reports.

We are definitely finding out what others have said....you have to know the D&B game and play it.
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  #28  
Old 02-16-2008, 02:09 PM
chuff1026
 
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ok
i do this and have been doing this
check out my blog
its in my signature
everything is there
and i also build credit for businesses
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  #29  
Old 05-06-2008, 07:27 PM
nbrglobalinc
 
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Well, I tried the Staples and the Office Depot ones. They both said that I needed to send in my Articles of Incorporation and that I would need a PG... is there a way around this? I have like bad credit...
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  #30  
Old 05-25-2008, 01:47 PM
rodillon
 
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Default hi

we all like to have capital to get going and make money some time it take alot of work
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