Business funding

[busyone]

Hi, I recently posted about obtaining some business credit. Received some great

advice on here about establishig tradelines and building a business score. My

question is, there are companies out there that claim to basically do a lot of the

work out there for you. I have an established corporation already and a new start

up llc. The person I spoke to said that they could obtain several lines of credit for

me by using my established business and also for my start up company. Also

as long as my personal credit was in good shape, which it is. Of course they

charge a fee for all this. Any thoughts or concerns about these type of companies?

Thank you

[Anonymous]

Are you basically asking about companies that build your credit for you? Or tradelines?
The ones that build credit, some work and some don't. Some will bleed your money slowly while building your report and some will work hard. Some may work so hard they get you red flagged.

Tradelines is another story which can have the same results.

I've seen both and both have worked for people but you have to decide what you're going to. You can build your corporation to the point where they aren't asking for your info or you can use your personal credit and build it up.

Building corporate credit on your own is hit and miss.

Example, I have an 80+ Paydex but can't seem to get credit cards. I've been turned down by Dell, Office Depot and some of the other "easy" ones. I have Net 30s from Quill, Barnes and Nobles and a few others but those don't really fund the business.

I heard of two that I may look into but they want bigger D&B files.

Hope I didn't just talk in circles...

[Red1Blue]

Hi busyone, building the corporate credit is much easy. First apply for D&B Number. You need that to get started. Usually companies like your business to be established at least 2 years before they give your business credit with out your PG. However you can move around start establishing credit.

First thing, never never give a PG to business credit. I know it is easy to get business credit with PG. But if business goes bad, you are stuck with the debt. Also the inq's that they pull on your personal CR will hurt your personal credit.

Second there are companies who can build credit for your. One of them is www.b2bcredit.com They seem to be reasonable in the price and service. If you use them it would cost a total of $1000-$1400 spread over a period of 9 months. I am not sure if you want to use an out company. If so I highly recommend this company.

Third, if you have time and dont mind doing some work on your own. It is some thing really you can do it on your own easily. Once you get your D&B number then start setting up some net 30 day accounts like quill/deluxe and other companies. After that you can apply for gas cards and other things. In 6 to 9 months you can establish the business.

Good Luck.

[busyone]

Hi, thanks for the responses.  I'm currently talking to a company, have not paid anything yet,

that bills themselves as a capital funding group. They do charge a fee and say they can

get you lines of credit for your company or companies, llc's s-corps,etc. They help you

establish tradelines for new start ups and can get lines of credit for more established

companies, unsecured, but usually with a pg if you have decent credit. I can find

nothing derogatory or any complaints on this company. Just curious if the concept

is real. You know they say if it's usually to good to be true,it isn't.  Thanks.

[Junejer]

I have started to build my business credit on my own with my Duns Number only. I have Office Depot, Staples, UPS, and Cap One (had to PG this one) reporting. I considered using a business credit building company, but did the research myself and found out that it is easier than I first thought. It is working (paydex 80), as I just got a pre-approval from WFB to apply for an unsecured LOC for $100M. I would have to PG, so I am going to pass (offer expires 1/15) on it, because I can't stand the pull on EX, before I close on my mortgage loan, unless I get Countrywide to GW for me.

IMHO, there is too much information on the www for someone as proactive as you to pay for the service. You can do it yourself.

[Red1Blue]

Hi byrdman, let me see if I understand your post correctly. Did you get a preapproval from WFB for $100 Million LOC?

[Anonymous]

I was wondering the same thing...

[haulingthescoreup]

'kay, I think ByrdMan is involved in commercial lending, where they use Roman numerals for some reason. Although I'm pretty danged impressed by a LOC of $100,000!

[Red1Blue]

I agree with you hauling. It is pretty good to be able to get unsecured $100K LOC. I think in the next 6 months my business would be able to qualify for LOC.

[Junejer]

Thanks Hauling. Blame US Bank for training me that way. It's their fault that I use Roman Numerals instead of metric. M=thousand.

I think that if I get my EX over 700 (WFB Business pulls EX). Too bad it comes at the same time that I am closing on the mortgage. I could take my business to another level with a $100M LOC (totally separate business expenses from my family finances)!

If I don't get above 700, by 1/15, then I will wait until after the mortgage closes then send it in and play dumb. Any suggestions?