How Personal Credit Affects Your Life
October 17, 2008 at 2:43 pm | In Business Credit, Personal Credit | Leave a CommentTags: build credit, Business Credit, business owners, Personal Credit
The stock market is rebounding. The government is investing approximately 200 billion dollars into nine of the country’s largest banks. We may soon see positive changes in the personal credit market. This is great news; however, now we must consider what it means to have and maintain good personal credit.
We buy everything from homes, to cars, to computers on credit. Good personal credit allows for a better life style, no doubt. Poor personal credit can stop you from doing many things such as buying that new home, car, or computer. What some people do not know is that poor personal credit can also affect your ability to receive competitive insurance rates as well as your ability to secure a job.
Many employers will run a credit check before offering you a job. The logic being that by looking at your debt to income ratio or delinquent payments they can judge the likelihood of theft or embezzlement. While this may or may not be a rational course of action, it is being prevalently used.
What does this mean to you? It means that keeping your personal credit up-to-date and pristine is more important than ever before. What I frequently see are business owners who have started their businesses using their own personal credit. The heavy debt that is placed upon the business owner can be extremely difficult to manage.
Along with the management of that newly acquired debt, business owners must consider how they are going to pay these new bills: What if the business does not do as well as expected the first year? What if I have to find a new job? What about any unexpected personal expenses? All of these questions and more need to be addressed when you are using your personal credit to build a business.
The best solution to all of these questions is to not use your personal credit at all. Separate your business from your personal life and build credit on the business, itself. Using business credit to build your business will preserve your personal credit, all the while making use of the largest lending source in the world.
The Art of Compliance
October 6, 2008 at 1:37 pm | In Uncategorized | Leave a CommentTags: Business Credit, credit for business
The first step a business owner must take in order to establish business credit is to incorporate their business. After their business has been set up as a separate legal entity, the next step is to bring that entity into a compliant status. There are several steps involved in this one particular step. Our business credit coaches will cover this in detail with you. The purpose of this article is not to outline each individual point of compliance; rather its purpose is to illustrate the importance of this step in the process of building business credit.
Many people come to us, anxious to begin the process of building business credit; however, many people think that just having an entity in place makes them eligible to start opening up trade and vendor lines of credit and building business credit. Unfortunately, this is not the case. Every business, whether brand new or 10 years old must go through a compliance check by a business credit coach in order to successfully build business credit.
I have found that the most helpful thing to do in order to illustrate the importance of compliance is to ask our clients to place themselves in the position of the lender. If you were extending credit or lending money to ABC, LLC what kinds of things would you expect the business to have in place? Obviously, you want to feel comfortable before lending money to this business. Each client that we speak with will have various items that they will list in response to this question. Well, in response to same question, the lenders and credit bureaus have gotten together to create their own set of standards.
Some things are obvious, for instance having your legal business entity current with the Secretary of State’s office. There are many other things that are not so obvious. It takes a trained expert like the professional business credit coaches in our FastTrackCredit program to assist clients in the finer points of compliance.
It seems extreme, but having even one thing out of place, can ruin your chances of building credit for your business. This is known as being “red-flagged”. Red flagging is something done by the business credit bureaus such as Dun & Bradstreet. When a business is red flagged it means that it is permanently disqualified from building business credit. Not only will the present business be disqualified, any other business you are associated with can also be red flagged.
The process of building business credit is something that should be exciting, but it is also something that requires caution. Lenders and creditors have approximately 2,000 points of criteria that must be met before extending credit to a business. In order to build business credit properly and not have any red flag issues, we must begin with a strong, solid foundation. Please contact us today so that we can assist you in successfully building A Plus credit for your business
A New Dawn: The Heyday of The Small Bank
October 9, 2008 at 10:49 am | In Business Credit | Leave a CommentTags: banks, Business Credit, fasttrackcredit, llc
When the head of Berkshire Hathaway, Warren Buffett, has stated that “the U.S. Economy is ‘flat on the floor’ after a cardiac arrest (http://articles.moneycentral.msn.com/Investing/Dispatch/market-dispatches-100208.aspx), it makes even the most optimistic types such as myself wonder about our perhaps inappropriately upbeat position. The world economy is now at stake.
Despite all of this, I see several rays of sunshine. I still see new stores opening. I still see the clients in our business credit program obtaining new trade lines and lines of credit. Most importantly, I still see many smaller, regional banks offering generous offers of credit.
For many years I have instructed our clients to cultivate relationships with small local banks. When I first begin working with a business owner I am often asked if I have a preference as to what bank they open their business checking account with. I tell them that I have excellent referrals if they are looking for them, but I then ask: Do you currently have a good relationship with a bank? If, indeed, they do, I urge them to maintain that. In fact, as a business owner building business credit, a strong relationship with a bank is one of the most valuable tools that they have.
It is true that right now many large banks are facing heavy financial woes; even large banks that are strong and sound are still tightening up the requirements on the money that is lent, that includes the credit cards that are offered and approved. It is difficult than ever to make a splash with one of these large banks.
Again, I must fall back on the argument that small banks are better for small to midsized businesses building credit. Here is an example to consider:
John Smith owns ABC, LLC which operates a restaurant on Main St. in a small town that is on the way to a large and popular ski resort. John successfully builds the credit of ABC, LLC with the assistance of a business credit firm such as ours. He is able to improve his menu and the interior of the restaurant using the independent lines of credit that have been established for the business. At the beginning of all of this, John opened a business checking account with Small Town Bank. Small Town Bank has ten branches all in the same state. John has a good relationship with the Officers at his local branch. He continually puts money into the bank. Lately, due to the improved credit of his business and increased profits he is carrying a mid-five figure balance.
One day the owner of the building where John’s restaurant is located comes to him and says “John, I have had this building for nearly forty years. I am thinking of selling it and moving up to the mountains. You have been a great tenant. You always pay your rent on time and take great care of the space. I would like to give you first crack at it”.
To make a long story short, John goes to Small Town Bank’s local branch and is able to secure the financing for the building. Of course, some of this has to do with the fact that the building is a tangible asset and is priced near its current market value, but the more important fact here is that Small Town Bank knows John and his business. They are doing what they always have done, they are lending to their depositing pool.
Had the business owner in this story went over to the Big National Bank across town he very well may still be paying rent to a new owner. The reason: The growth of his business and the bank balances probably would not have made a blip on the radar. In addition, he would have had to go through a mountain of time wasting paperwork. In the meantime, another buyer could come in and buy out the investment from right underneath his feet. This would place the tenant in a precarious position. Not only did he lose out on a great business investment, the business, itself, could be in jeopardy if the new owner decides not renew the lease.
I urge all small to mid-sized business owners to consider the benefits of forming an ongoing relationship with a local or regional bank in their area. These banks take notice of you and your business. You do not need to carry six or seven figure balances in order to have your needs catered to. When it comes time for expansion, these lenders are your best friends. Small banks remain a constant a ray of sunshine for us all.
Ian D. Tenen
Director of Business Credit
Business Credit Solutions, Inc.
The Lending Oasis: Where has all the Money Gone?
October 1, 2008 at 11:28 am | In Business Credit | Leave a CommentTags: Business Credit, corporate credit, establish business credit
“Where were you when the stock market dropped 778 points in one day?” This will probably be one of those questions that are asked of us years from now by future generations. One of the questions we will still be trying answer ourselves is: Why? Why did congress not pass the bill that would bail out the nation’s financial institutions? Why did all this happen?
The effects of this are far reaching. There is no way to sugar coat it. What we need to think about right now is how we survive. “Don’t panic” is certainly sage advice and I agree. People understand this advice, but are they are seeing their options for credit drop like flies.
In an effort to not see people wander in the proverbial desert searching for the oasis, I have chosen to write this article. Larger banks have certainly been using the word “no” a lot lately. CNN recent published an article title Credit Crunch Hits Small Businesses that states “Around 65% of domestic banks say they have tightened their lending standards for commercial and industrial loans to small firms over the past three months, according to the July 2008 Senior Loan Officer Opinion Survey on Bank Lending Practices.” These are daunting statistics.
My usual rebuttal to statements such as is this is: Consumer banks are not dealing with small to medium sized businesses, they are dealing with everyday consumers and those are the standards that they are using to judge people and their businesses; they do not make any delineation between the two. I stand by this argument more than ever.
The same article goes on to site Bill Dunkelberg who is not only the chairman of a small New Jersey based bank by the name of Liberty Bell Bank, but is also the chief economist for the National Federation of Independent Businesses. He states that small banks who are dealing with small business are doing fine.
Dunkelberg’s reason that the small banks are fairing better is that they are lending to the same people who are making the deposits. Essentially they are lending to, and investing in their depositing pool. They do not have a large network to support. They do not need to be involved in the riskier Wall Street investments.
I have often recommended to clients in our business credit program that they ought to form a relationship with a small local bank. Smaller banks will take more notice of you than a larger bank; especially banks that you have dealt with for a substantial amount of time. If you have shown a history of consistent deposits that will go a long way with that bank when you want borrow money.
Herein lays our answer: Build the credit of your business. Business credit is separate from your personal credit. This is not to say that having great personal credit cannot help build your business credit; however, having an independent method to help your business flourish amid these uncertain times is something that business owners cannot ignore.
There are several advantages to the business credit system and as consumer credit tightens its regulations you can be sure that there will be even more. Corporate credit is governed by a system completely separate from the FICO system which regulates consumer credit. Things like debt to income ration do not even enter into the equation. That is why you can build separate credit for your business.
Also remember that business credit is still the largest lending source in the world. What a great system! In some cases it even allows you to use other people’s money with no interest. Instead of having to pay a bill for this or that wholesale item immediately, you have time. You can use this time to allow yourself to meet payroll expenses, turn a profit, and expand your business.
Businesses that have successfully built their credit are reaping the benefits. These businesses have opened trade lines with office suppliers, computer companies, etc. They have gone on to purchase vehicles under the business. Most importantly, they have been able to secure financing for their business. This financing has not only ensured their stability but has allowed these businesses to grow solid and strong.
Ian D. Tenen
Director of Business Credit
Business Credit Solutions, Inc.
Toll Free: 1-800-910-9919 x240
Fax: 702-838-5130 Attn: Ian
Virtual Offices at Nevada State Corporate Network
May 20, 2008 at 3:30 pm | In Nevada Corporation | Leave a CommentTags: nevada resident agent, resident agent service, virtual office space, virtual offices
Have you signed up for our Virtual Office package yet? We have beautiful offices available for you to use including high speed internet, and phone service. The virtual office service is an extraordainary value allowing you to run your nevada corporation from the comfort of home, wherever that is.
Please contact Nevada State Corporate Network, Inc. at 1-866-854-3703for more information about our Virtual Office Package.
Nevada State Corporate Network Client Testimonials
April 28, 2008 at 8:29 am | In Testimonials | 1 CommentTags: corporate structuring, financial privacy, nevada corporations
The following is an email we received from one of our clients that we’d like to share with you.
So far, I think I like your company & staff that I’ve dealt with to this point. I’ve gotten a good vibe. A much better vibe than I ever got from (competitor name). Perhaps this relationship will be a long & profitable one.
Albert Cardenas, Contractors of TX, LLC April 2008
Nevada State Corporate Network – Client Testimonials
April 21, 2008 at 8:52 am | In Testimonials | Leave a CommentTags: corporate structuring, financial privacy, nevada corporations
The following is an email we received from one of our clients that we’d like to share with you.
Dear Nevada State Corporate Network,
I want to thank Linda Hodges and Steve Whitaker for their excellent customer service today. It was a pleasure to work with them. Having heard recently, and only once, about your company on talk radio, I was drawn to call. Steve was the one who spoke to me on my first call to you yesterday. I was very busy and had to cut him off. He was nice but persistent. Because I was dreading getting another sales pitch, and I was busy at work, I asked him to call me back. He did promptly when he said he would, though I couldn’t take the call. He called me today and invited me to stop by the office. His offer for me to come visit today was one major factor in getting me to sign up for your services. He was so nice and made me feel welcome. The other factor was Linda. She must have the affectionate title “closer” at your firm. She got me to take the leap of faith that I’m sure so many new business owners must fear.
I have checked one of your competitors and was not very impressed. I felt like they tried to butter me up to get me to commit to a large financial investment. I didn’t feel they were trustworthy. And my accountant would only tell me the negatives about starting a corporation.
Your office is splendid and I can only hope to one day have a business with equal grandeur.
I can’t wait to get started with your program and be another success story with my Nevada Corporation.
Sincerely,
Claude Borders
Nevada State Corporate Network – Client Testimonials
April 9, 2008 at 9:32 am | In Testimonials | Leave a CommentTags: Corporate Strategies, corporate structuring, financial privacy, nevada corporations
The following is a letter we received from one of our clients that we’d like to share with you.
People only tend to provide feedback when they have something to gripe about, at least in my experience on the internet that’s what I have observed. I want to rock the boat a little with a positive feedback that is unbiased… I was referred to NSCN by a friend who has used them in the past.
I was referred to work with Dana Wheeler in sales and she was nothing but exceptional. She knew the real estate business from an entity standpoint and was able to answer every one of my questions without hesitation. She provided so many possibilities that I would have never thought of otherwise.
I purchased a Nevada LLC (expedited) and a standard Corporation. Later, after further consideration, I ended up going with the Paralegal service, the Nominee service (after forgetting to file my own initial list of officers for the corp), and tax service. I have met with the Director of Paralegal Services on a weekly basis to go over what paperwork is necessary to substantiate a legal entity and how to form my operating agreement. All of my questions were answered again without hesitation. I have received nothing but good communication when sending emails or leaving voice messages.
I am about to go through with my first year tax service so I cannot comment on the end product at this time. I can however say that I have had several meetings with the CPA to discuss ways to legally create additional write offs and other strategies for “living the corporate lifestyle”. I was provided with templates and thorough instructions as to what is required for tax filing for each entity.
J. Soucy
Las Vegas, Nv
Home Buyers Complete LLC
The Las Vegas Money Show
March 28, 2008 at 2:49 pm | In Corporation Seminars | Leave a CommentTags: Asset Protection, corporate structuring, estate planning, nevada corporations
On May 12th-15th, Nevada State Corporate Network will have a booth at the Las Vegas Money Show in the Mandalay Bay Resort.
James Hughey, Nevada State Corporate Networks General Manager will be giving a Workshop Session on Corporate Structuring, Estate Planning, and Asset Protection, on May 15th from 10:30 AM – 11:15 AM.
Registration is free, and you can sign up here if you’d like to attend.
Nevada State Corporate Network – Testimonials
January 11, 2008 at 9:43 am | In Testimonials | Leave a CommentTags: Corporate Strategies, corporate structuring, financial privacy, nevada corporations
The following is a letter we received from one of our clients that we’d like to share with you.
To Whom It May Concern:
Dana exemplifies genuine customer service, she has invested time in her customers with one simple notion, “treat people the way you want and expect to be treated.” This may sound trite, but true. This idea serves as a cornerstone to integrity and loyalty with her customers. I have found while working with Dana, she gives sound practical advice that has exceeded my expectations.
Prior to meeting Dana, I searched for answers to build my LLC, I found it to be an arduous task, and extremely baffling. Confused and daunted as I was, my questions were many. Dana’s ability to effectively translate complex information into common terms was a welcome relief. She answered all my questions clear and concise. Her patience and competency neutralized all my concerns. This was a sure sign of confident in her skills.
I highly recommend Dana Wheeler, as an LLC expert. She is well-informed, reliable, and innovative. I am excited about 2008. I know she will again exceed all of my expectations for the coming years. Thank you Dana!
Sincerely,
Yolonda Bodden
BnB Renovations, LLC
If you’d like to talk to our Senior Corporate Account Executive, Dana Wheeler, about corporate structuring she can be reached at 1-800-910-9919 ext. 244
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