Today I caught myself with little to do with respect to actually building credit so I decided I will inc a few more businesses. So today I inc’d biz3 and biz4. I do not plan to start building the credit right away as I am still in the beginning stages of biz1 but I figured I will start getting it out of the way. Building business credit takes time so you must be patient but it does not take as much time as you will think. I will pay all my invoices tomorrow(i know, procrastination seems to be my friend) and they should report pretty soon. When I get the confirmation from the state that I and inc’d I will get the tax ids and the DnB numbers.

This change came about after pondering. I am on a business credit journey but then I figured I need a goal so that I can gage my success. So the goal is $1,000,000 in one year. Sounds hard, almost impossible to some people as most people don’t see that money in 2 lifetimes. lol.

Let me clarify some things. I do not plan to raise $1,000,000 with one business. I plan to start multiple businesses as well as help a few people to build their business credit all adding up to $1,000,000.

I plan to have $1,000,000 in business credit with 10 businesses or less.

Follow my blog and see me do it.

friday some stuff came in the mail..the ream of paper i ordered and a plastic box from us plastics…..then saturday 3 invoics came….quill, usplastics and bags and bows… i havn’t gotten the stuff from bags and bows yet but maybe it will come this week.

What i need to do is pay these off this week(within 30 days) and have them report to DnB that i paid it off on time..so thats what i plan to do..

I also plan to Inc Biz2 tomorrow.. maybe i will get office depot and staples with biz2 early….

oh..i also got a welcome from ATT…I think i will pay that this week before they send the bill..i want to be on top of this game so my credit will be good sooner than later…

it has been a little more than 2 weeks that i registered my new business. I already ordered some stuff from a few net30’s and i know i am on my way..but i lost focus and wanted to make sure i was doing the right thing…so i went out and paid for one of those “do it yourself” programs….

what a waste of money….this shyt cost me $150 and I knew everything these people had to offer..:(

it was only a waste of money for me as i knew all of this.. but the information definately wasn’t revolutionary……it will be a waste of money for you as well because you have my blog…but let me just put it out there…

they go under the name http://www.access-business-credit.com/ and https://www.creditmakeover.biz

try them if you like and tell me what you think.

I must say, the site is pretty convincing…but i now know that none of this is rocket science…you just need patience and time…if you do not have time there are companies out there that do a good job. we will go into that later..

one thing that i did get from the site is one more vendor.

KINKO’s

save your money though…..what a day…$150 down the drain

TIME TO GET CREDIT….

Ok. It’s not that simple, but we are almost there. Like personal credit we need to establish a positive track record to obtain credit. This can be done in 30 days. So what is a positive track record? an 80 paydex score…..

so how can i get an 80 paydex score…i need to get 4-5 companies to report to DnB(will be referred to as the devil in some cases) that i ordered something from them and my payments are on time. That’s it. The trick is, who can i order from? who will give me credit? and who will report?

This is why you need to know what net30 is. So yesterday I ordered from 6 companies that gave me net30 accounts and of whom i was told, report quickly. Below is a list of net30 accounts that report and who will grant you an account with a tax id, no social and no established business credit.

Bags & Bows, Reliable, WearGuard, Quill, US Plastics, Gemplers, Viking, Nebs(ask them to report), pens.com, Uline, Grainger

Believe it or not, there are 2 revolving accounts you can get with no business credit. You need a utility bill(like a phone bill) most of the time but some people do not even use any proof of address. They are Staples and Office Depot. With no credit staples generally gives you $750 and office depot generally gives $250. I did not apply for those as I plan to get my paydex score from the net30’s and then apply for the revolving. I should get bigger lines with the paydex score.

I will try to make a longer list of net 30 accounts and post it in the future. If you have knowledge of any net 30 accounts that report to DnB or Experian that I have not listed, please free to post them.

So now that i am at the point that i want to establish business credit and i realized that my current business won’t work i had to set up a new business and ensure that everything it set up correctly for the credit building to run smoothly..

first you want to incorporate. A sole proprietor won’t work since the point is to separate the liability. An llc or corp will work but in my research it seems that companies usually give more credit to corps…please understand that this isn’t a rule..this is my research…and plus, a corp was cheaper than an llc to set up in fl….lol

Second you want to get your business set up. You need a business phone line at the same address you used for your business inc. and in the same business name with your tax id number. Get your business listed in 411 under your business name. Granted you got your tax id number. . http://www.irs.gov/businesses/small/article/0,,id=97860,00.html .. ALL info is on that link for the tax id.

On the address; you can use your address. There are companies that offer virtual office services, try not to use any of those, they tend to be black listed.

With regards to the business phone line, you can get a remote call forward, which is cheaper, under the business name. You will be listed in 411 but in some cases, creditors like to “verify” the business by calling you on the listed number and you calling back from that number. With an RCF, you cannot call back from the number. You can simply get a cell phone and list it in the 411 by paying a fee online. I have not used that service but its possible.

Third is the Duns Number – this is a number that the Credit Bureau (dun and bradstreet) use to file your credit. Many creditors ask for it but some applications may not need it. When calling DNB(defined in the previous post) to get your dnb number, they will try to sell you something. Anything from a credit monitoring service to a credit builder program. If you have money laying around by all means spend the $400+ on a credit building program but chances are, if you are reading this blog you do not have money to waste. Plus it doesn’t do much for new businesses.DO NOT PAY.

call 866-705-5711 and state you are applying for federal grants/contracts and you need a duns number. They will give it to you on the spot with no solicitation. You can also apply on their website www.dnb.com which will take 30 days.

you need all your business info to get the DnB Number, including the Tax ID/EIN.

After these steps, comes the ordering of items…

the fun has almost begun.

anyway

time went along and I asked him where he was getting all these machines. He said he was using his business line of credit to raise capital to start operations. Please not that nothing has started yet,but he has these huge lines. Anyway, i let it go and then a week later called him and asked him if i could get lines as well. He claimed it was a long lengthy process and i didnt have time for that. Something told me not to believe him. So i combed the internet for a month trying to find everything i can about this puzzle called “Business credit”. I came across a number of companies and i will list them and give you my opinion later. Many of the companies wanted a lot of money and some wanted a little but seemed like a scam.

I finally came across www.creditboards.com.

I must say that this site has all the information you need.(i think so but i am at the beginning of the journey so what do i know). I read for a few weeks but i just didnt take action.

I fooled around for a while and then in december i told my dell guy that i wanted him to help me build business credit(this was after i learnt a little on dnb, ein’s, experien business and some other business credit stuff). this was early december and he said ok.

I checked out my current business credit(as credit is built without even knowing it just like personal credit) and realized that my delinquent bellsouth bill and business cell phone bills would have slowed down if not hinder the business credit building process. so what did i do?

I Inc’d a new company for 2 reasons.

Export companies tend not to get approved for a lot of vendor lines as they are high risk in the banks eyes and my old business had bad credit.

We incorporated Biz1 on december 28th 2007. It was simple. We just went online on www.sunbiz.org and did an e-filing.

Yes i live in the sunny state. Thats Step 1