Every now and then I come across someone that passes a comment like:

·       ‘Creditors do not really care how many employees your corporation has (as indicated on say a D&B report).’

·       ‘No one really checks the taxes (employee withholding etc etc) that your corporation has filed.’

·       …and similar comments.

To me these comments show a certain innocence that is quite appealing. !!

A lesson in history: A couple of years back you did not even need a business LAN line and you could get business credit. I have seen situations where one has opened a corporation (EIN #) and got approved for Staples unsecured card almost straight away. That type of thing soon came to an end as credit became tighter.

After that it was widely accepted that you should have a business LAN line and a few other things in place. The corp would than buy from certain vendors that report business credit and after a few months apply for unsecured credit and get approved no problem. Well now times have changed even more. Why do you think that most people think it is NOT possible to get unsecured business credit WITHOUT PG (using your personal credit)? Does it not stand to reason that even more steps have to be taken to ensure getting business credit without PG.

·       Of course the numbers of employees you show do not make a big difference by themselves BUT they are a part of the larger picture, your business’ complete profile that the creditors look at. That is what we call the business file.

·      Of course there are many searches that will never reveal your companies tax information but there are many databases that do have that information. Plus these days many more banks actually ask for your business’ tax returns even if you apply for certain secured loans. (as a side note: strictly speaking all loans are secured in one way or another, some just more than others).

Creditors/lenders, banks and credit agencies have access to many databases (like CCR etc) that collectively, pretty much have all the information on your company that has ever been recorded. Different companies have access to different databases. As an example, Experian states ‘that they can look into over 100 criterions to come up with your business credit rating’ (refer to the Experian article here). That is just one example. Now does it not make sense to get as much in place as you can, especially if your aim is to get a good amount of business credit, like cash lines of credit without P.G.

In fact the subject of databases is a vast one and I will get into it in later articles. For now do realize that anything that is recorded is stored in databases around the country (in some cases around the world) and different companies have access to different databases.


For a deeper look into filing taxes (and other articles) for business credit purposes refer to my tax article, click here


Some days ago I was guiding one of my friends as he was trying to get his free Duns number from D&B. As he was new to the whole process I basically told him to apply for a free Duns number. It had already been more than 2 months since he applied. As expected he had already received 2 to 3 sales calls from Dun and Bradstreet. Of course I had asked him to politely decline and just wait for the free Duns number.Dun and Bradstreet will tell you that it takes 4 to 6 weeks to get a free duns number . In my friends case, it had been about 3 months since he took a little  longer setting up some of the other business-credit aspects that I had recommended.  He already had some lines of credit with certain vendors like Quills etc.  At this point we decided to call Dun & Bradstreet.

What followed was a classic example of what lengths D&B would go to just to make a sale.

An aggressive representative got on the phone. I had told my friend to act as an employee of the business (which technically speaking,  is  correct). The rep went on to explain that there is no way he can get a decent (!) duns number if he had not paid for it. My friend painstakingly mentioned that he had applied for a free Duns number. Also that the company he worked for had waited for more than two months for the free number and that should be long enough. He further explained that the company was certainly going to invest in one of D&Bs packages in the near future but for now he would like the free Duns number. And so it went, round and round. The rep claimed that he was checking the system and he could not find a duns number for the company and for such an such a dollar amount the duns number can be generated in “no time”.

The interesting part was this. As my friend was on the phone I was checking his business e mail. As my friend was being told that there was no Duns number I spotted an e mail from D&B with the free Duns number. That e mail was dated one month previous to that day.

Of-course I told my friend to politely say that he will let the relevant people in the company know and than to politely say goodbye.

Moral of this story: Be very careful what D&B tells you just to make a sale. Plus keep a very good relation with them since they are very important for business credit purposes.



By now you should have decided on a low risk SIC code business. Your business should have a business address and a land-line phone. I am assuming that you know how to get your business incorporated.  You do not need a lawyer to incorporate a business and I will not go into detail in this article. I am sure you can search the many services on the web that help incorporate a business if you do not want to do it yourself. These services are still cheaper than using a lawyer. For our long-term business credit plans a C-corp is the best structure.

When you do receive your EIN number and Tax ID number get a corporate kit for the business. You can get a corporate kit from places like Offiice-depot. A corporate kit is a subject in itself but for now do understand that a business has to keep records of where it spends its money, the employees, policy etc. I will expand on this aspect in later articles but for now make sure you get your corporate kit.

A business land-line and a BUSINESS e-mail is also very important.

Now here is another tip that will show you what sets me (and my team) apart from the rest:  Get some business stationery; letter heads, business cards etc.  Why do you think business stationary is  important ? Every time you deal with vendors, banks (etc)  you should use your business stationary.  For example,  Dun and Bradstreet has been in business for a long time and basically knows what to look out for when rating a business.  When your business faxes something over to D&B and it is on plain paper it might not “red flag” you BUT it will be one more thing that cautions them. In this economy you need every advantage, nothing should be left to chance.  Remember very few are getting financing these days  and hence the ones that are getting any have a tremendous advantage. You should have everything in order and I can assure you that banks will stand in line to give you financing. Remember our country is build on credit – banks have to lend to survive.

By now I am sure you realize that business credit is not just a matter of getting a Paydex score by apply to some vendors.  However, I can assure you that it can be done by most people.

Your mind set should be one of setting up a business like a business is set up.


read more CLICK HERE

Actually that is not really a valid question. It is like comparing apples and oranges. In my opinion both serve a different purpose and hence have their own place in securing your financing. Personal credit is based on an individuals credit worthiness and business credit on the businesses creditworthiness (ideally speaking).

Here are some interesting facts:
Business credit has a lot more potential than personal credit. A business (if set up properly) can end up getting much more credit than personal credit and that is just the tip of the ice-berg. A case in point, you can have a number of corporations set up simultaneously. Remember that you can only have one SS# but you can have a number of businesses (Tax ID numbers).

Here is a scenario that will get your creative juices flowing:
Lets say if you have just two corporations and you end up with $65,000.00 available credit on one corporation and about $70,000.00 credit on the other corporation. Now you can withdraw $60,000.00 from the credit of anyone of the corps. When it comes time to pay off the $60,000.00 you can use the credit of the other corp. In effect you have repaid the loan BUT still have full use of the initially borrowed $60,000.00. The debt was simply transferred from one corporation to another. You can actually keep this up for as long as necessary to repay the original amount. In reality it actually gets easier since this process (if done correctly of course) will only strengthen the credits of both corps. That in turn will result in more and more financing available for both corps.

Now, whether you use the $60,000.00 cash wisely or not is a completely different topic LOL. Ideally I would like you to invest it in some kind of income producing asset, like real estate.

At this point you might have 100 questions regarding this scenario. What are the borrowing terms , are these cash lines of credit, what is the interest rate on the loan, do I show my tax returns, how are the funds released, how are the two corporations linked etc etc. How on Gods green earth do I get the lines of credit in the first place. Of course the devil is in the details.

This is just one of the ways that large corporations get access to almost unlimited financing and in most cases cash financing. I can assure you that this can be done by almost anyone even with limited cash. Some intelligence, hard work and a good working knowledge of the different components of business credit will get you there sooner than you think, even in this economy. How far you want to take it is really up to you.

Corporate Business Credit provides many different benefits: Asset protection, revolving lines of cash credit etc. Most of these aspects are crucial in your steps towards financial independence. You might not want to become a multi millionaire but having the ability to use the benefits that business credit provides will get you to your financial goals faster and I believe with less headaches/risk.

To become financially independent you HAVE TO use the power of CORPORATION. That is what our country is build on and that is exactly what the rich use to stay rich and get even richer.

That really is the art of business credit.