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loan
12 posts by 5 users
Marc A.
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i do that for a few clients
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Robert S.Real Estate InvestorAnchorage, AK
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I have been looking for this, and am glad I finally found it....
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Marc A.
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what exactly are you talking about? |
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Dawn V.Real Estate InvestorCommack, NY
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chuff -
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James W.Commercial Real Estate BrokerBinghamton, NY
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He shows you how to obtain business credit instead of using your own personal credit. |
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Dawn V.Real Estate InvestorCommack, NY
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O.K. thanks. Details would be good, although at this point I'm thinking I will just open up an account with D&B for about $329 for my companies to establish business credit, and open some trade lines. I believe in 2 years I should be well established. Can anyone give any feedback if they have gone this route with the D&B credit builder? I know they have a more expensive one for around $600 that will expedite the process. I would like to get feedback on both from anyone that has gone through their program. Thanks. |
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James W.Commercial Real Estate BrokerBinghamton, NY
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If you do it right, it will only take you about 6-9 months to establish significant business credit where you won't have to do any business in your name. I wouldn't reccomend using DnB credit builder as you can 'trick' the system per se if you have two seperate businesses that 'loan' or give a 'loc' to each one and they report to DnB. If you have only one build the biz credit like the personal one..one account at a time. |
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Dawn V.Real Estate InvestorCommack, NY
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Can you explain in more detail how the lending from one to another corp would work? I actually own 3 active corps at the moment. They each have a D&B number, but no actual accounts set up. My understanding (according to the D&B rep) was that in order to get a credit score (Paydex), I have to sign up for the basic $329 account, and they will start tracking the general trade lines that report to D&B such as phone, electric, Home Depot type places. She also said that the reporting company has to have a D&B account set up. I opened up 3 D&B free accounts, so there is now a D&B number on each, but it doesn't look like anything will happen with those unless I pay the $329 fee for each company. I'm willing to establish credit one company at a time if that's easiest, as I am in this for the long haul and am not going anywhere. Any suggestions? Thanks! |
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Michael D.Real Estate InvestorLynnwood, WA
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DnB lies. They lie constantly. You can easily get a PAYDEX without buying their silly package. My business got a number for free a few years back and has since gotten a paydex without me spending a dime. Once you have the dnb number and open a number of business lines, paydex will come in time. |
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Dawn V.Real Estate InvestorCommack, NY
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Thanks Michael. That will save some money. Have you been able to get business lines of credit with your Paydex number? |
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James W.Commercial Real Estate BrokerBinghamton, NY
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HH, Mike is correct. You don't need to join DnB to get credit rated, no more than you would have to join a MC or VISA club to get credit rated. DnB is accurate however when they say the company that extends you credit must have a DnB account for it to show up. In oder to use your two companaies to build your credit profile, one MUST be paid and report to DnB. This is how your credit is built up. Reporting builds your credit, not using it. What you do is you pick one company that will be the reporting company and you begin the 'paper' process. Your reporting company extends net 30 terms to the other company in the amount you choose...say $25k. The other company that has the DnB account reports for 3-6 months that you paid the bill on time and in full according to terms. In this interim you will be building your biz credit. Apply for small accounts like Home Depot, Staples, Sam's Club, etc and use the credit you get and pay it off. IN 6 months time you would have built easily a $100k biz credit profile. Also subscribe to magazines like Forbes, Fortune, Inc, etc in your companys name so your companies data can be cross indexed in their mailing databases. That is how you complete the circle of biz credit. |
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Michael D.Real Estate InvestorLynnwood, WA
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Forbes, Fortune huh. Haven't seen that before. My biz has more than enough credit at the lower-end credit givers like Lowes,Home Dopey, Staples, etc, and was able to get a couple of nice 30-50k locs from the big box banks. This is without the 2 companies reporting idea. While not big enough to outright buy homes, it's plenty big to do massive amounts of Lonnie's and the occasional Land Bank deal. I'm courting a small bank now to see if they'll give me a larger line. We'll see, as they are very careful about cashflow and equity - unlike the big banks for under 50k. BTW, does DnB charge you for reporting and if so how much? |
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Posted: 03/05/2008 at 11:50PM