My Business Credit Journey to 1,000,000 » Step by Step Help

Q1 from Step by Step client help

mike — Fri, 23 May 2008 17:19:47 +0000

client:

Mike,

I wanted to know what are the first steps in business credit with out the ss# and w/o a d&b number?

Thank,

You NEED to get the duns number before starting simply go to “start here” on the top right and finish those steps and then we will get to the companies that you should start with.

- mike

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Step by Step to 200K

mike — Fri, 23 May 2008 17:16:36 +0000

My plan was to write a step by step explanation to building business credit but I kinda fell off that road so in order to help I spoke to a client today who is going to send me questions to get step by step answers and I plan to answer it as he goes along. I am not going to stop my road but what I have realized is that since I know the process inside out, I sometimes leave out information that is needed.

- mike

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Step by Step Summary

mike — Wed, 27 Feb 2008 21:16:21 +0000

Please understand that the following is a summary and I am sorry if I missed any details. This summary should simply serve as a guide to understanding how this works. I am making every attempt to make this as simple as possible but if you do not take the time to read through my blog, you might as well go right to My Services and enroll in my business credit coaching service.

Step 1.

Incorporate your business. This will allow you to separate your personal credit from your business credit. Get your Tax ID and DnB number. I explain how to get both of these previously.

Step 2.

Obtain some starter lines of credit from companies who DO REPORT TO THE CREDIT BUREAUS. Obtaining lines of credit from companies who do not report will do nothing for your business credit. These lines will range from small revolving lines of credit to net 30 accounts. If you do not understand any part of this, please see business credit definitions and accounts that report.

Step 3.

Order items from these accounts, wait until they invoice you, and pay them in full immediately. Remember, you have to be invoiced in order for it to be considered credit. There is no real minimum that you should order. From these starter accounts, I have ordered anywhere from $8 – $18 and most of these items are things that I really do not need.

Step 4.

THE PAYDEX SCORE. When 5 of these companies report to DnB that you have paid in full in a timely fashion, you will have at least an 80 padex score with Dun and Bradstreet.(you should know what’s going on if you read the definitions section. If not, go back and read it) When you have this 80 paydex score you will qualify for bigger credit lines.

Step 5.

Obtain bigger credit lines, which will be revolving accounts, and pay the minimum payment every month on time. This will help build the track record that you want.

At this point you should be ready for some big revolving vendor lines and some cash lines of credit.

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Giving Step by steps while I wait on my credit. Step 1

mike — Mon, 11 Feb 2008 19:44:17 +0000

i. Incorporate and DO NOT USE A VIRTUAL OFFICE. I only say this because many of the underwriters have various virtual office companies as a red flag. That does not mean that some of the less popular ones with work, but it’s just not a chance I am willing to take. Your home address is a fine place to use as your business address if you do not need office space. Many people believe that this will make your business credit become connected with your personal credit but this simply isn’t true. With the increase of home based businesses, this is becoming more acceptable.

ii. Get your EIN(TaxID). Go to https://sa2.www4.irs.gov/modiein/individual/index.jsp

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