Answers to the Most Frequently
Asked Questions about the “Building Business Credit” System
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- Q: What is Corporate Credit?
- A: Corporate Credit is the ability to obtain financing under the name of the business entity. Corporate Credit is separate from personal credit and is based on the assessment of a corporation by business credit bureaus (Dun & Bradstreet and Corporate Experian).
- Q: What is a Corporation?
- A:According to the dictionary, a corporation is: “an organized body, especially a business that has been granted a state charter recognizing it as a separate legal entity having its own rights, privileges, and liabilities distinct from those of the individuals within the entity.” A corporation can acquire assets, enter into contracts, sue or be sued, and pay taxes in its own name. Corporations issue shares of stock to individuals supplying ownership capital and issue bonds to individuals lending money to the business.
The corporation is a desirable organization for a business entity for a variety of reasons – including the increased capability such an entity has to raise capital. Most large firms, especially those engaged in manufacturing, are organized as corporations. All stocks sold in the primary market and traded in the secondary market are shares of corporate ownership.
- Q: How many corporations am I allowed to have?
- A: As many as you need.
- Q: What is the difference between corporate credit and personal credit?
- A: There is a significant difference. With personal credit, you’ll be limited in the amount of credit you can receive, you’ll pay a higher interest rate, and your LTV (Loan to Value) will affect your ability to obtain further financing. The more you use your personal credit to finance your business, the worse off your personal credit will be. Personal credit is driven by FICO, and each time a lender requests a credit inquiry, your FICO score will drop by 2 points – this, in turn, brands you as an even greater credit risk.
With corporate credit, you are not limited to the amount you can receive, interest rates are usually lower than what you’ll pay personally, there is no LTV (Loan to Value), and inquiries have no impact on the corporation’s credit score. Your corporation also has the ability to obtain 10 to 100 times the credit you can obtain personally.
Another important consideration is that Corporate Credit does not report to or have anything to do with your personal credit file.
- Q: What kinds of Corporate Credit are available?
- A: There are two types of Corporate Credit: trade credit and cash credit. Trade credit is also known as vendor credit and usually consists of credit from stores such as Staples, Office Depot, Home Depot, Lowes, Dell Financial, Best Buy, etc. Cash credit is the type you get from traditional credit cards-such as Master Card, Visa, and American Express-as well cash lines of credit from individual lenders.
- Q: What is the real difference between trade credit and CASH credit?
- A:Trade credit can only be used for purchasing goods from the issuer’s location. For example, a Staples card can only be used at any Staples location. This type of credit has its limitations. Most, if not all trade credit is restricted to material goods and cannot be used to obtain CASH. In other words, it is only good for purchasing supplies.
On the other hand, cash credit can be used for purchasing goods from any vendor, supplier, store, etc. Any one card can be used at millions of different locations. For example, a Chase Visa card can be used at any gas station, office supply store, or ATM to obtain cash. This type of credit has very few limitations. You have the ability to obtain CASH via a cash advance, ATM, or balance transfer check. With a line of credit you will receive a checkbook to write amounts against the credit line.
- Q: What is the difference between a Social Security Number and a Tax Identification number?
- A: A Social Security number identifies an individual whereas a Tax ID# identifies a Corporation or Business. The Tax ID number (EIN) acts as the Social Security Number for the corporation.
- Q: Can I obtain corporate credit without a personal guarantee?
- A: YES! We will show you how you can obtain corporate credit either with or without a personal guarantee. It is a process that begins with building a credit file for the corporation, getting a D & B number, obtaining the required rating and scores, and paying your bills to build a positive history that the bank can review.
- Q: How much corporate credit can I obtain?
- A: The sky is the limit! We have helped clients obtain millions in corporate credit with no personal guarantee.
- Q: What can I do with Corporate Credit?
- A: As long as the expenditures are business related, anything! You can lend, invest, purchase goods and materials, obtain CASH, buy real estate, and so much more!
- Q: I have heard about programs like this. How is yours different?
- A: There are many factors that distinguish the “Build Your Corporate Credit” System from our competition. Here are a few:
- We will help you obtain a cash line of credit in as little two to four months.
- Our system gives you step-by-step instructions and all the tools you need to follow a very precise process for getting exactly the right information, in the right order, to the right people in order to obtain that cash line of credit.
Our system comes with a no-risk, money-back guarantee. If you do not obtain a line of credit, we’ll refund your entire investment in this program.
- Q: How fast will I get my cash line of credit?
- A: Our proven system could deliver a cash line of credit in as little as two to four months.
- Q: Does your system have a guarantee?
- A: YES! If you do not obtain a line of credit, we’ll refund your entire investment in this program.
- Q: What kinds of businesses have used this system?
- A: We have helped real estate investors, stock and other investors, and small-business owners from a wide variety of industries all over the country to qualify for the lines of credit their businesses need.
- Q: My business is new. Can you still help me get the line of credit I need?
- A: Our system is designed to serve the needs of a wide variety of businesses, including new and well-established businesses. If you have an established business, you’ll have a head start and may finish some of the steps faster … or even be able to skip them completely. But yes, we can help you secure a line of credit for your business even if it is a new corporation.
- Q: What do I get for my money?
- A: You’ll receive:
- We help you obtain Cash credit lines
- Investigate the business to determine if any “High Risk” areas need to be looked at
- Apply for and obtain a Dun & Bradstreet number. (when necessary)
- Assist clients in developing a Paydex/Intelliscore of 80 or better based on payment history with trade references
- Six months of free coaching … so if you run into questions while implementing the program, you can get the help and answers you need
- A free annual subscription to our monthly teleseminars series … where you’ll keep up-to-date on changes in the financing industry and discover even more ways to leverage your credit
- Five other bonus gifts worth almost $1,200
- The freedom to build your business any way you want to
- A definitive separation between corporate credit and personal credit
- The peace of mind you need to concentrate on business issues other than financing
- An absolute guarantee that this system, when followed correctly, will deliver the financial strength and flexibility your business needs.