In this video I talk about the 5 Bewares of Business Credit Scams.
I understand their is a lot of information floating around the internet on the subject of business credit. It confuses a lot of entrepreneurs and business owners that are trying to obtain funding for their business. That why I created the business credit forum.
Click the link http://www.businesscreditamerica.com/business-credit-without-net30-accounts/
In the forum my goal is to teach entrepreneurs and business owners how to work with one another that are in the same industry. I also wrote a new business credit ebook on how to build business credit with out net30 accounts. The title of that ebook is called The Insider Bank Secrets “How To Crack the Lending Code.”
Click the on the link http://www.businesscreditamerica.com/business-credit-without-net30-accounts/
Although, many of us are familiar with business credit, it’s still hard for us to tell if a company is being truthful with us. So, I decided to point out 5 things that you may want to remember when look for a business credit company.
1. No Personal Guarantee or PG. Now, there are trade vendors that offer you credit without a personal guarantee and a few hard money lenders that may offer you funding without a personal guarantee. Depending on how long you been in business, usually over 2 years and showing good profits on your financials statements. However, when your trying to get revolving credit or loans for your business from a bank or credit union your going to have either of two things 1. a personal guarantee 2. collateral.
The collateral maybe equipment, cash, or education and experience. Small business administration will allow you to use your knowledge and experience as collateral for a loan, if you have the documentation to back it up.
You may not have to personally guarantee, if you have a board member that’s willing to sign for that loan or credit card.
2. Get upto $30 to $50k in business credit in 90 days. Now, you must keep in mind that business credit is not the cash funding. When you here companies talk about business credit their taking about net30 accounts like staples, home depot, lowes, grainger, seton, uline. This is not cash credit. Yes, there are methods to turn these net30 accounts into credit, but who has time for all of that.
Many business owners are looking for cash funding and if the business owner does not have good credit, they’re going to have a problem trying to obtain that funding.
3. You can use and SIC CODE. This is a very bad untrue statement. The reason being is that a lot of banks have a bias on what businesses are profitable to them. That’s why in my ebook http://goo.gl/ycLkHf , I show you how to pick a favorable sic code for lending.
I also tell you some of the bad sic code to stay away from such as real estate, restaurants.
4. You can get business credit with any business entity. This statement here is also confusing to a lot of entrepreneurs and business owners because banks are biased to certain business entities. When people choose one of the following entities such as sole proprietor, LLC, s-corporation, LLLP. They box themselves in to carry the liabilty. The only business entity that keeps the liability off you 100% is the C-Corporation.
5. It would be best for you to form a corporation in one of the following states Delaware, Nevada, or Wyoming, to avoid state taxes. This is a waste of effort and money, because banks like to see corporations setup in the state where they do business.
If you think about it the amount of state tax you’re trying to avoid, is possible the same amount your pay in foreign corporation fees and registered agent fees.
Please, Check out our other website http://www.businesscreditamerica.com/business-credit-without-net30-accounts/