CORPORATE CREDIT
BUILDER PROGRAM
One of the major reasons that people incorporate is to protect
their personal assets from any potential business liability.
Unfortunately, what they soon discover is that because the incorporation
is a new entity it has no credit on its own. So even if the
business has a positive cash flow and is financially self-sufficient,
most vendors will require a personal guarantee for all the company’s
expenditures. One can compare it to a teenager getting their
first car. Although they might have regular income, the parents
often need to co-sign for the loan since the young person has
no credit history on their own. This is a similar situation
with a new corporation or LLC.
This has enormous consequences for the business owner. If the
business owner has poor personal credit, it will handicap the
company’s ability to establish credit for the company.
If the owner has good credit, this can hinder his/her personal
credit score and upset their credit/debt ratio. In addition,
if there is a difficulty with the business, the owner is still
liable for any company debt, even though the business itself
is bankrupt. The final danger is if there is too much credit
extended to the owner using his/her personal credit, there is
a danger of the court ruling that the owner has co-mingled funds
and may rule to totally negate the corporation protection for
the owner.
HOW DOES CORPORATE CREDIT
NORMALLY OCCUR?
In some cases, it doesn’t! We have worked with clients
who have been conducting business for 10 or more years and have
no corporate credit profile. This can have enormous business
consequences. Many companies including governmental agencies
will review a company’s corporate credit profile prior
to awarding a job bid. Some companies will not extend credit
without a positive corporate credit profile and others who do
extend credit will actually charge higher interest rates to
those businesses without a good corporate credit score.
HOW
DOES ONE ESTABLISH CORPORATE CREDIT?
The process of establishing corporate credit is a complicated
one. There are a number of companies who establish corporate
credit profile. One can register with these companies. Unfortunately,
many owners who do this find their companies “red-flagged”
when they begin this process. These companies have stringent
procedures of due diligence to determine the “viability”
of a new company. If you have not done their system properly,
they will red flag your new company and you will NEVER be able
to remove this flag from your corporation. The owner will need
to reincorporate to establish their credit.
If one gets through registration process, hopefully the vendors
you use report to these credit agencies and in four to five
years you might have a credit history.
HOW CAN THE
CORPORATE CREDIT BUILDER HELP MY BUSINESS?
We at Corporate Credibility have a program that can shortcut
that four to five year process to six to nine months.
Our Program:
- We do all the due diligence that the credit bureaus require
prior to submitting your application to the bureaus to avoid
any danger of red flagging.
- We will support you in utilizing your current vendors and report
them to the credit bureaus to start establishing your score.
- Once your profile has been established, we will provide you
a list of vendors who report to the credit bureaus and do not
require personal guarantees. We will work with you to take out
limited lines of credit with these vendors and then pay these
vendors. Since these companies report to the credit bureaus,
this will speed up the building of your credit profile.
- We will work with you in continuing to report new vendors that
you acquire in the running of your business.
- After the completion of this process, if requested, we will
introduce you to a service that can shop your business loans to over 200 banks, provide equipment leasing
or other larger capital (funding) sources.
No one can guarantee that you will be able to get a large capital
loan for your business. There are many components that go into
that process, primarily the corporation’s ability to repay
the loan. However, if you do require capital from the bank,
you will discover that the interest rate will be lower with
a positive credit score, saving you thousands of dollars over
the length of the loan.
CALL TODAY TO FIND OUT IF YOU QUALIFY FOR OUR
CORPORATE CREDIT PROGRAM!
CORPORATE CREDIBILITY, LLC
877-821-6117 or 702-990-2301
7473 W. Lake Mead Blvd.
Suite 100
Las Vegas, Nevada 89128
