Corporate Credit- How do I build it?

[Pharaoh]

No disrespect but tell me you are joking about knowing your company finances unless a report comes across your desk?

Actually, no I'm not joking, I always have a feel for my executive staff's performance, especially sales since their performance is directly connected to revenue, but I do not see the details until they make their reports. I've committed not to micromanage, and their performance has been outstanding to date. I provide long-term vision on how revenue will be allocated and I've hired decent vp's and have one of the best GMs in the industry. My team's only weakness is identifying good staff at the management and below level - so I lend a big hand in this area... otherwise, they are good to go. If results begin to dip I will tighten the reigns, but until then I dream up stuff and they are required to make it a reality. It's a good system and it works well... my time is spent building partnerships, growing the companies and securinig a future for each business division.

 

[Pharaoh]

Well pharoah you are wrong and you are right to.You can get business credit without pg.But, the larger cards like amex,visa,etc wants to see financials on the company on larger loc's like$100,000 etc.

Preciate the info... that makes sense and it also in a way is in line what the gent above said.

Thanks,

Peace.

 

[blackop]

pharoah I can appreciate your line of thinking with the performance in line with the compensation.Ialways felt with companies that just pay straight salary what's the incentive to really perform at a high level(or basically give a damn).But, it seems like you got it on lock and I like to see brothers excel in whatever venture that they desire.Take care and be smooth.cool,and prosperous!!!

 

[blackop]

update I did apply at Staples and got the standard 750 loc and ordered from Nebs and got the$115 30 day net for my order.Still haven't incorporated yet trying to get one of my partners that's an accountant to hook me up on the low low.But, in all I should get that 80 paydex in 4 months.

 

[dacrazydeafdawg]

blackop.. have ya fuck with dell yet? my clients were pissed cuz they couldnt get the Dell computer and I told them to wait till the paydex was 80 but they didn't follow the instruction that I told them in plain English step by step. I thinking I gonna have to write an ebonics version?!?!? But anyway I ask what they have done and what they havent done.. seem like they were trying to do skip several steps and I explictly wrote in my book you can not skip it because what I wrote will WORK if ya follow the instruction in black and white and to the fine print of it.

Anyway... a major fucking headache.. I hate mofo that dont follow the instructions.. but I was able to get them back on track... and hopefully it wont hurt.. and I will do an update on them but I may need to use another client as an example because mofo on cp time and dont apparent to be serious about their business plan...

 

[theDisavowed]

I just want to say that a lot of the info on this thread has been a big help. I have a few questions though. I've set up a DBA and have a DUNS and EIN. I just set up a business acct last week. There's a lot of talk about incorporating, can anyone give me more info on the pros and cons of incorporation and wether I should wait to incorporate before I start applying for LOC's or can I start with some small one's as mentioned earlier in the thread. Thanks in advance........

 

[theDisavowed]

Not sure if I posted this in the right thread, but any help would be much appreciated.................

 

[dacrazydeafdawg]

LLC is a new type of corporate structure...

Inc is old school corporate structure but is the best to have but you have to keep minutes..

Nolo has the best books on these two books...

brb...........

LLC stands for Limited Liability Corporate
LLP stands for Limited Liability Partnerships

Inc stands for Incorporate.

Keep in mind there are two type of corporations...

You are going to have to consult with CPA and Tax Lawyers to see which one is most advantage for your businesses. Or do your home work via the business plans..

one thing .. this is for the board...

Question

why the hell can the IRS double tax a corporation and not a LLC or LLP ??


"LLC" and "Corporation" have many of the same characteristics. The most important characteristic they share is that they both offer limited liability protection to its owners. Typically, shareholders are not liable for the debts and obligations of the corporation; thus, creditors will not come knocking at the door of a shareholder to pay debts of the corporation. In a partnership or sole proprietorship the owner's personal assets may be used to pay debts of the business. With an LLC, the members are not personally liable for the debts and obligations of the corporation.
There are many important differences between the corporation and LLC. The entities are taxed differently. An LLC is a pass-through tax entity. This means that the income to the entity is not taxed at the entity level; however, the entity does complete a tax return. The income or loss as shown on this return is "passed through" the business entity to the individual shareholders or interest holders, and is reported on their individual tax returns.
With a standard corporation, the corporation is a separately taxable entity. Corporations are treated as a separate legal taxable entity for income tax purposes. Therefore, corporations pay tax on their earnings. If corporate earnings are distributed to shareholders in the form of dividends, the corporation does not receive the reasonable business expense deduction, and dividend income is taxed as regular income to the shareholders. Thus, to the extent that earnings are distributed to shareholders as dividends, there is a double tax on earnings at the corporate and shareholder level. We can do S Corporation status election with IRS for $25.

 

[DoubleD]

I just want to say that a lot of the info on this thread has been a big help. I have a few questions though. I've set up a DBA and have a DUNS and EIN. I just set up a business acct last week. There's a lot of talk about incorporating, can anyone give me more info on the pros and cons of incorporation and wether I should wait to incorporate before I start applying for LOC's or can I start with some small one's as mentioned earlier in the thread. Thanks in advance........

If you are incorporating just to get credit then follow the reponse I posted in the "What's the best business to start for an entre..." thread.

Incoporation COST money and now that you are in business for your self, you need to save as much money as you can. if yu are just looking to establish credit, then do the CD, LTV program I mentioned earlier. If you need to establish multiple lines of credit with major institutions they may ask for incoporation docs, but most often they want you EIN to get started.

I see the PRIMARY reason for incorporating is for business accoiunting structure, personal and professional liability protection, and TAX planning.

Everyone looks at things different and I believe there is more than ONE way to achieve your goal. For me, I am astrong believer in waiting on the incorporation until you have made some money or your business requires it. It looks good, makes you feel legit, but for the most part, it will not make you ONE dime! Just think about it and get some PROFESSIONAL ADVICE!!!! Call the IRS! Ask them...

 

[theDisavowed]

Thanks fellas, I'm getting ready to try for loc's and earlier in the thread it seemed like incorporating would make it easier. And like you said it costs to incorporate and for the business I am in ( custom computer systems, home repair, and networking )
that doesn't seem cost effective at this point.

This thread has been a big help. I'm going to try for a few loc's and see how it goes. Appriciate the info........

 

[blackop]

dawg I haven't fucked with DELL yet.I was waiting until after I incorporated seeing I already got the scoop on DELL approval scenario.It seems like if you aren't incorporated then they want the pg.Funny thing I got a partner with a business and he did the same things as I did except he already has a s corp and he got turned down from both Office Depot and Staples which I thought were highly unusual.I figured someone must have posted something negative on his Dunns report.But, anyway I have already paid what I have charged except at Staples (doing that today).And,I did register with UPS and sent a package off last week.So,I'm expecting that 80 paydex within the next 3-4 months.Dawg, what's funny was when I called Nebs to pay my invoice I asked the customer service rep in the credit department" You do report to dunn & bradstreet? She replied it will be reported by the end of March and should show up by the middle of next month.I thought that was pretty funny because I guess a lot of people ask the same question.

 

[dacrazydeafdawg]

dawg,hook me up with those marketing books.so i can you peep them.

yo man and fam.. sorry havent been in here for a hot moment been busy dealing with my business ventures... brotha is just trying to establish multiple stream of cash incomes...

just bought a website... www.getemployednow.com and trying to market the shyt outta of it.. and waiting for the mofo to transfer the controls of the site to me...

anyway here are the name of the books i used for marketing...

The Successful Marketing Plan by Roman Hiebing Jr and Scott W. Cooper it is in its 3rd or 4th edition now.

This mofo book is out of print but ya gona have to dig deep for it.. steal it if ya have to.. but damn i should have bought me 5 copies of this mofo gem...

the title is THE COMPLETE DIRECT MARKETING SOURCEBOOK by John Kremer..written in the money makin 90's.. yet some may say it is outdated but the techinques and tools isnt.. you just have to used your imagination and common sense to see what will work in the 21st century...

And last but least... The Market Planning Guide by David Bangs, Jr in its Fifth Edition maybe 6th now?

and I am currently writing a marketing book myself... i will let yall know the details once I get the deal signed with a publishing firm.

 

[blackop]

yo dawg just peeped the site you bought and wondering what you saw in this site that you couldn't have done yourself? or were you incorporating your consulting venture in this as well?

 

[dacrazydeafdawg]

nah blackops.. bought this site to build additional passive cash flow .........$5000 to $30000 a month depending on how hard i market it ..........

 

[3rd__Optic]

it been almost a month. .have anyone has any success as a result of this thread??


peeps in the ATL area.. i know of a lady who own a consulting company that will help ya establish you to get corporate credit in 60 days - 90 days time frame.. i waiting to hear back from before passing the info on...

Yo Dawg I would most definitely appreciate a hit off with this info. I'm in the ATL area when i'm in the U.S. PM me if ya like.

3rd

 

[blackop]

nah blackops.. bought this site to build additional passive cash flow .........$5000 to $30000 a month depending on how hard i market it ..........

i figured you had to see something that i didn't (probably like the financial statement).Cause I know you only invest if you can get a good turn around profit.

 

[blackop]

Ok Fam.my Course Fo Luck Ranned Out On Some Of My Loc's.applied For The Officemax And Homedepot Accounts And, Both Called My Office To Ask For A Pg Of Course I Didn't Call Them Back.got A Letter From Both With A Pg Application And A Statement That Not Enough Information Was Found On Your Company To Determine Creditworthiness And To Fill Out The Pg And Send/fax To Company By 30 Apr 05 Or No Further Processing Of The App Will Continue.well, Fam I Tried Them Because The Are Both Underwritten By Citibank Which My Other Accounts Were Approved From.hell Go Figure.but, Anyway I Believe I Have Enough Vendors To Get The 80 Paydex.we Will See In Another 2 To 3 Months At The Latest.

 

[Pharaoh]

Ok Fam.my Course Fo Luck Ranned Out On Some Of My Loc's.applied For The Officemax And Homedepot Accounts And, Both Called My Office To Ask For A Pg Of Course I Didn't Call Them Back.got A Letter From Both With A Pg Application And A Statement That Not Enough Information Was Found On Your Company To Determine Creditworthiness And To Fill Out The Pg And Send/fax To Company By 30 Apr 05 Or No Further Processing Of The App Will Continue.well, Fam I Tried Them Because The Are Both Underwritten By Citibank Which My Other Accounts Were Approved From.hell Go Figure.but, Anyway I Believe I Have Enough Vendors To Get The 80 Paydex.we Will See In Another 2 To 3 Months At The Latest.

That's about the way it goes. Can't really establish corp cr, w/o the pg. Your Paydex starts at 80. What builds cr worthiness is maintaining it. If you fall behind terms, it will go down significantly. Best thing you can do is pay your bills early each month, which will spike it above 80. If you maintain that activity over about 6 mos to 1 year, you'll be good to go! No fast track to credit worthiness, but good payment behavior is the key to long-term stability. Good luck.

 

[blackop]

That's about the way it goes. Can't really establish corp cr, w/o the pg. Your Paydex starts at 80. What builds cr worthiness is maintaining it. If you fall behind terms, it will go down significantly. Best thing you can do is pay your bills early each month, which will spike it above 80. If you maintain that activity over about 6 mos to 1 year, you'll be good to go! No fast track to credit worthiness, but good payment behavior is the key to long-term stability. Good luck.

Well I got enough of the small stuff to get established.I'm not really big on credit but,to expand the business like I want I'm going to have to have some business credit established.Most of my business accounts are autopay if available.And,if I charge anything I makes sure I pay it off within the next couple of days.So, before the bill hits the payment is already made.

On another note I'm going to Bank Of America today and look into getting a secured loan for the business.Thinking about putting $50,000 into one of their cd's and getting a $50,000 loan against the cd.This hopefully will give me a larger loc for future endeavors.

 

[dacrazydeafdawg]

black op... do u have a duns?

 

[Pharaoh]

Well I got enough of the small stuff to get established.I'm not really big on credit but,to expand the business like I want I'm going to have to have some business credit established.Most of my business accounts are autopay if available.And,if I charge anything I makes sure I pay it off within the next couple of days.So, before the bill hits the payment is already made.

On another note I'm going to Bank Of America today and look into getting a secured loan for the business.Thinking about putting $50,000 into one of their cd's and getting a $50,000 loan against the cd.This hopefully will give me a larger loc for future endeavors.

If you can. Go to some of the other big banks first. Get turned down for an unsecured line of credit a few times. Then go to bank of america and see if they can put you onto an SBA backed line of credit. Easy qualification, no biz plan required (even though you should already have one) - max is $150K though. Good luck man.

 

[Jpezy]

Look fellas all the info you all have been spittin is good but BlacOPs there are a few things you are doing wrong brotha. First off you made the mistake of applying for LOC's too fast. That shouldn't be done until you are 6-9 months into your business, thats if you want to get it without a PG. You need to start off small and work your way up.

Step 1:
Get these 5 accounts and make biweekly orders, then pay them off within 1 week of ordering. FedEx, UPS, Viking, Nebs, & Staples.

These are all Office supply and Shipping companies. They will report to D&B immediately. After the first month of doing this go to the D&B website or call a rep and check on your account. When they tell you that all 5 are reporting that is showing that you are building a credit history. Within 90 days you'll have a paydex of at least 80. Remember the earlier you pay off what you owe the higher your paydex will get. If your business is bringing in the chedder fast enough then you can order one day and then pay off the next day. That will bring your paydex up to 100 really fast like within 4-5 months. But other than that once your first few Tradelines start reporting and showing your good payment history you will virtually able to get any card out there. But like DeafDog and Pharoh have been saying, When you go for an LOC they usually want to see your financials or make you sign as the PG. If your Financials are really good they won't PG, If you don't have financials to produce then you're basically at there mercy.


Just be patient and only use business credit for legitimate usage.

Yo Deaf I appreicate all the knowledge you've been spreading. That was much love on those posts you made.

 

[Chocolategurl]

I have gotten a lot of useful information from this post. Things that I never knew I needed and I've had my business for 2 plus years. Sad....I know, but there really aren't too many "black" people that want to help you understand all you need to know to have a successful business, and build your business credit here. So I just wanted to say Thank you guys! Muah

 

[Pharaoh]

I have gotten a lot of useful information from this post. Things that I never knew I needed and I've had my business for 2 plus years. Sad....I know, but there really aren't too many "black" people that want to help you understand all you need to know to have a successful business, and build your business credit here. So I just wanted to say Thank you guys! Muah

There are a lot of cats here that just wanna shoot the shit, but there are also several experienced gents and ladies who can lend a hand. Congrats on the 2 year mark - keep doing your thing and if you need help holla at the fam.

One Love BGOL,

Peace!

 

[cooliojones]

chECK THIS SITE OUT.............

PROPS TO DALLAS FOR MENTIONING IT AGAIN AND PROPS TO REVUM GREEN...

http://creditboards.com/forums/index.php?showtopic=7571

SEE POST #1

THE DUDE BROKE IT DOWN STEP BY STEP

HELL IT JUST EVEN INSPIRE ME TO START MY OWN CREDIT CARD CONSULTANT AND DEBT MANAGEMENT BUZINESS.............I GONNA GET BACK TO YALL IN A FEW MONTHS....TO LET YA KNOW IT GOES

Man I just had to resurrect this thread and say thank you for this info!! That board is AMAZING, and I'm gonna use the techniques they list this month. You can lead a horse to water...

 

[shanebp1978]

BUMP for the FAM!!

 

[Chase Bannon]

BUMP for the FAM!!

Someone or anyone? What does bump mean?

 

[dacrazydeafdawg]

shyt making that money has sorta distract me from bgol.. but i am back...

i will give some more insights soon

and no problem all i ask is yall share the knowledge cuz we need more rainmaker and deal maker in the community...

 

[shanebp1978]

Someone or anyone? What does bump mean?

Bump, to Bump it back up to the top, so people can see it, and learn etc.

So it's not forgotten.

 

[cooliojones]

Aight, one month in to the biz credit building. Did a lot in one month, went from idea to reality, and can't wait to be playing Mike Jones at my class reunion! Got the biz incorporated (LLC), EIN #, DUNS#, biz license, bank account, phone number, biz cards, and faxed the papers to Staples for my first biz credit account this past Monday. This is actually my second company, my first is a sole proprietor...I'm in Georgia and couldn't incorporate it because someone else had the same name. BUT a couple of weeks ago I found out that corporation was administratively dissolved by the state...so my sole will turn into an S Corp that will manage my LLC as soon as I file the papers.

The biggest thing that separates those who have something and those who don't is the amount of time they put behind any given project. Everyday I look at my so-called "friends," and in an effort to NOT be like them, my affirmation is that I am NOT them. I refuse to be all talk and no action. Find what works for you and exploit it to the best of your ability!!

 

[Jpezy]

Right On Cooliojones.....Bump

 

[cooliojones]

deafdawg, give us some updates man!! Wassup?

By the way, I was approved for Staples, called in today and they said I got the standard $750 limit. Nebs and Office Depot might be up next for me. Also Viking since I'm on their mailing list.

 

[dacrazydeafdawg]

let me start off yall are doing it well...

as for me... fucking hit a wall due to some bad investments in them damn ass Delta's airlines stock.. but a nicca is hoping that shyt rebound i got about 5,000 shares in Delta.. i trying to debate whether or not to buy more or not because if the shyt goes back up then i would make out like a kingpin if i can get another 5,000 shares!!! cuz it was trading last at $1.80 a share!!!..

but on the rebound but i sold my website getemployednow.com for 5grands only because i couldnt dedicate enough time to it.. but it was cool doing resume @ $25 a pop... i did a total of 200 resume in a 90 day time frame...it aint much money but still some easy money considering that i just use resume software program to do the bulk of the work... out of those 200 resume only 99 people got hired the rest got an interview but didnt get the job because the resume made them too qualified for the position .. told them that but hey no cash refunds was my policy!

as for my business.... i been doing business credit card seminars here and there... the one i did in miami was a success but sure was a lot of spanish folks there... so i have to get my cousin who is half ecudaoran and half black.. to translate the document into spanish and as an interperter....minor expense but big profit.....

Update to the business credit cards... I WANT TO BE CLEAR ya are not going to get business credit cards overnight.. it will take at least a year to establish yourself.. but coolio on the right track...

also AVOID business credits where they want you to PG... fuck that !! your business is your PG

and dont go crazy cuz once the new bankrupcty laws goes into effect in october it will be harder to declare a chapter 7... the new laws gives creditors more leeway in pursuing bad debts.. but it shouldnt be an issue as long your cash flow is tight

i notice some of yall and some of the business cats i met own more than one companies...

1 is the parent company
1 is the investing company
1 is the inventory company

shyt how yall gonna handle that many companies at once

but check it out

this one cat establish the parent company as a Inc whereas he is the CEO.... he made the investing company to handle the investors money as a LLC and he is the managing director of that company and the third company is the inventory company and he also establish it as a LLC..

but his logic is fucking confusing me ..maybe some of yall accounting savvy mofo can break it down into layman's English for me...

his logic goes as parent company get it capital from the investing company in a form of a loan and he convert it into shares and keep some of the money for himself ( he paid his yearly salary of $250,000 upfront- shyt is that legal?) and he creates a purchase order from the inventory company who get the product from an outside vendor.

The inventory company bills the parent company and "send" them the products.
Parent company will in return sell the products for a profit and pay the inventory the in house bill and what is grey is how he pay back the investing company and how the investing company pay the outside vendor..

He wouldnt diviluge if he was holding a different accounting book for each company, I would think so in order to please the IRS and Investors and his clients.


But he went on to tell me it is done everyday in the business world and claims he getting paid on 3 different level despite the fact he gave himself an advance salary. By the way he sell laptops and computer.

I think it is call holding companies and shell companies but I thought shell companies were illegal.


Oh yeah on the matter of credit card - you need to know WHY ya need it?

Too many of my clients be going crazy with it and end up folding their businesses because they forgot the golden rule.. and I wrote it in the document over and over... A credit card is a powerful tool but if you are going to use it, treat it as OPM and make sure it use can create money in return. Short term graification aint shyt!

I remember I bought some season ticket for the Heat before Shaq came to Miami.. now since I aint live in that town, I can just simply sell my tickets on ebay and make a killing. I got some good seats about 4 of them and I always sell them double the cost of the fact value and there is always going to be somebody that will purchase the whole season before the season even starts. The point is this transcation didnt require any money out of my pocket, I used the credit card, I knew i have to pay the balance with 30 days or fall into that credit trap. I list the ticket for sell within a 10 day window of opportunity and boom on the final 10 days the bidding price went up as soon the Heat announce they were getting Shaq.

My next move is well i cant tell you lol but it will make some serious cash but it has a lot of potential but I will be spending time figuring out to make it happen cuz Oprah doesnt need to be the only Black person to be wealthy.. her ass need to buy a sport team lol

 

[cooliojones]

Keep doing ya thang man. I'm trying to be like those people on that other board you posted -- that I'm not a member of. Another one is artofcredit dot com, it's cool but lately they been banning people from there for telling false info. For the life of me I can't understand why you would want to give fake info to people when you can't profit from it in any way. Crazy.

But I am determined to have a life worth living. The cars, the clothes, the houses...imma definitely get what I want, and hopefully before I turn 30. I would say the bitches, but that thang is two-fold. Not like I am hurting for some now, but I just wanna see how having the material will make hoes turn they head and wanna get all up in ya biz. That's the aftermath, totally different subject.

Main thing people need to realize is that the cats w/ these high-ass limits on their cards, they either 1) played the game exactly as it was laid out in order to make the creditors believe you are on top of it, when really you don't spend any more than $1000/month, or 2) they have the income to justify these balances. I definitely want to be in the latter category. With the right contacts, the right access to resources and good ass marketing, shouldn't be a reason why a mofo can't make it in this world, especially in Atlanta.

Sell those Delta stock man!! Yo shit is dwindling, and I hate to see what happens if they go bankrupt. If they do, you the first person imma be thinking about: "Damn, that fool lost some cheese!"

I need to learn about that company-bills-the-ther-company thang too because I will embark on that. Biggest thing I wonder is, how can you get different credit cards from the same vendors for your different companies? Like a Staples card for compnay 1 AND company 2? With your name on the documentation, is it possible, or do you use other people's name? (real people, like ya sis or mom or something). Right now my goal is to get on w/ D&H, been wanting to do that for 2 years now, and I finally have a plan in place to do it!!

Let's keep this thread alive!!

 

[Da GOAT]

I could have sworn if you are a corporation then creditors cannot touch your personal assets unless you personally gauranteed a loan. I think it was on that site NOLO.com

Damn I should I read this entire thread before responding....

Good thread