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 get financing by using the Dun & Bradstreet and Corporate Experian credit rating for the business entity. Personal credit is separate from corporate credit and does not affect corporate credit rating even when the personal credit is poor.
Q: Define a Corporation.
A: The dictionary lists a corporation as “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 runs and pays taxes under its own name. It can acquire assets, enter into contracts, sue or be sued in its own name. Corporations can issue shares of stock to individuals supplying ownership capital as well as issue bonds to individuals lending money to the business.
Doing business as a corporation is advantageous for business entities for many reasons. Corporations have a higher ability to raise capital for the business entity. Larger companies, such as those that deal in manufacturing, will organize themselves as corporations. Stocks that are sold in the primary market and traded in the secondary market come from shares that are corporate owned.
Q: Is there a limit to how many corporations I can have?
A: You can have as many as you need.
Q: What is the difference between personal credit and corporate credit?
A: The restrictions on personal credit limit the amount of money you can receive. You'll also usually pay a higher interest rate when using personal credit and your ability to get more financing will be determined by your LTV or Loan to Value. Business owners who use their personal credit to finance their business usually do so to the detriment of their personal credit score or FICO. Every time a lender requests a credit inquiry, your FICO score will drop by 2 points which shows you as a credit risk.
Corporate credit is very different. The interest rates are usually lower than with personal credit and there is no limit to the amount you can receive, much higher than you'd be able to get with personal credit. Loan to Value does not apply in business credit and inquiries that are made to your corporate credit report do not affect your overall score.
Your corporate credit is not associated with your personal credit and does not report to the personal credit bureaus.
Q: What type of Corporate Credit is available?
A: There are two types of Corporate Credit: trade credit and cash credit.
Trade credit is credit that you receive from a vendor or store and is limited to just that one vendor. Such vendors or stores would be Staples, Office Depot, Home Depot, Lowes, Dell Financial, Best Buy, etc.
Cash credit is financing from credit cards such as VISA, Master Card, American Express, etc. You can use this type of financing at any store. You may also get cash lines of credit from your credit cards or from other lenders.
Q: What is the real difference between trade credit and CASH credit?
A: As stated in the last question, you can only use trade credit to purchase items from the issuer's location. While you might be able to purchase all your office supplies at Staples, you won't be able to purchase office supplies at another office store using the Staples credit. Trade credit limits your purchases and, more times than not, will not allow you to draw cash to use for your business.
On the other hand, cash credit can be used for purchasing items from any vendor, supplier or store at millions of locations. You may choose to use your Master Card at the office supply store, the building supply store and to add gas to your vehicle. You may also choose to draw a cash advance from the card should you need it, transfer balances from one card to another or to write a check for an amount up to the credit line.
Q: How do a Social Security Number and a Tax Identification number differ?
A: A Social Security number is only associated with the individual and identifies the individual. A Tax ID# (EIN) is like a Social Security Number in that it identifies the Corporation or Business.
Q: Is it possible to 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. You will need to build a corporate credit file, get a D&B number, acquire a rating and score high enough and pay your bills to show a positive history to the bank you are applying for financing from.
Q: Is there a limit to how much corporate credit I can get?
A: There is not a limit to how much corporate credit you can get. The sky is the limit! Some of our clients have obtained millions of dollars in corporate financing with our help without having to give a personal guarantee.
Q: What can I do with Corporate Credit?
A: You can do anything you want with business credit as long as it is business related. You can even lend money to others if it is in the interest of making money for the business. Purchase goods and materials for your business, get CASH, purchase real estate. The choice is yours.
Q: How is your program different from other programs I've heard about?
A: Many factors differentiate the “Build Your Corporate Credit” System from our competitors. Here are a few:
- We can help you get a cash line of credit.
- You will receive all the tools you need, including step-by-step instructions to follow a very precise process to get the right information, in the right order, to the right people so that you can obtain that cash line of credit.
You'll receive 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: We've helped many businesses get a cash line of credit in as little as one or two weeks. (In the current credit situation we are recommending our clients apply for bank lines after receiving tier 3 credit; or 2 to 4 months.)
Q: Do you offer a guarantee for your system?
A: Absolutely! We offer a money back guarantee for the entire program if you do not obtain a line of credit.
Q: What types of businesses use this system?
A: This system is right for any business. Real estate investors, stock and other investors, and small-business owners from varying industries all over the country have qualified for business lines of credit.
Q: Can you still help me get the line of credit I need even if my business is new?
A: It doesn't matter whether you a new or well established business. Our system works for all types of businesses. However, if your business is established, you may be able to get through the process quicker and in some cases you can even skip some steps. But even if your company is new, we can help you secure a line of credit for your business.
Q: What is included in the cost of the program?
A: This is what you'll receive:
- Help in obtaining Cash credit lines
- Investigate your business to determine if there are any "High Risk" areas that need attention
- Apply for and obtain a Dun & Bradstreet number. (when necessary)
- Give assistance in developing a Paydex/Intelliscore of 75 or better based on payment history with trade references
- Six months of free coaching with your personal business finance coach who can help answer questions and give you the help along the way
- A free annual subscription to our monthly teleseminars series. You'll receive up-to-date information on changes in the financing industry and discover ways to leverage your credit
- Five other bonus gifts worth almost $1,200
- Strategies to give you freedom to build your business your way
- Your corporate and personal credit separated
- Peace of mind knowing you can concentrate your efforts on building your business instead of struggling to obtain financing
- A money back guarantee that this system, when implemented correctly, delivers the financial strength and flexibility your business needs
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