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Discussion Starter · #1 ·
OK I am having a hard time building business credit. I got a DUNS number 2 years ago and have since tried to find a company that will grant me credit.

I got one but it was only on me personally and they actually messed up and have me in there records as a sole proprietor not an LLC.

I have had D&B call me a few times to get me to buy there credit builder for $329 witch he said was a few questions over the phone for $329 (I am in the wrong business)

My question is what is a good way to build company credit and has anyone done this credit builder thing from D&B
 

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when I first started I had to sign a personal guarantee to get approved. I would always limit the guarantee to 1 year, and after a year of paying on time if they wanted to still require a personal guarantee I would close my account with them.

Did not have to close many accounts.
 

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What about local vendors you buy your material from? Can any of them issue credit in your companies name?
 

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Discussion Starter · #5 ·
I had a local vendor who let me have credit thru them but it was just between me and the guys behind the counter (another contractor backed me up with his account to get it). Now with the economy they said they are not allowed to do it any more. Not even a warning, I have been a customer of theirs for 12 years while doing side jobs. I dont have a problem paying cash except it is a huge pain to have 20 receipts when I could have one. This will be my second time applying for an account there in the last 2 years.

My personal credit is in great shape, I just bought a house in the last 6 months.
 

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There are some credit cards that will report to business bureaus I think, and places like staples, uline, quill, home depot.

Theres alot of pretty good info in the business credit section at creditboards.com if you want some step by step help.
 

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After reading your last post, is the problem that you can't get business credit or you can't get credit period personally or otherwise.

With almost all lines of credit with a wholesaler, etc. you will have to sign a personal guarantee unless you are a huge 100 million dollar company with a history. Some will remove the personal guarantee after a period but not usually unless you have a good history and also buy a lot of stuff from them where they don't want to lose your account. You have to look at how many times they have been burned and by people or companies you would never think they would have a proplem with.

Does a personal guarantee bother me with our company a C corporation, No because we pay our bills and are not worried about not being able to pay them.
 

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Discussion Starter · #8 ·
I tried Staples and home D they said no.

I have no problem getting credit on my own, just bought a house and got a $5000 credit line in my own name by mistake on their part (I am fine with it cause like you said my bills and my company bills get paid)

I am in no way going to lose sleep over it nor will I lose work over it. Just one of those things that I am trying to figure out, next on my list if you will.
 

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Not sure why there would be any trouble. My company became an LLC 4 years ago. Prior to that I was sole proprietor. Why won't the place you've been buying from for 12 years give you credit?? I only have a few accounts as most of my costs are for labor but in recent years our business has changed and we now by a lot of materials and supplies. I got a company visa instantly in 2005 with just my own personal credit. Started an account at the lumberyard where I know quite a few people by just asking and filling out an application. They started it with a $5000 limit but they have since upped it. The place where I buy my nails and get tools repaired just opened the account with no application. We have done business there on a cash basis for 15 years. Maybe your personal credit is maxed out and they are leary of overextending you. In these lean times, I'm sure a lot of places have tightened, but there are still many who will give it to you if you can prove you are credit worthy.
 

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Discussion Starter · #10 ·
The place I have been buying from for 12 years 10 years I was paying cash cause it was side work, and the past 2 they set up a side account for me and was backed by a long time friend of mine, now they said they can't do it anymore. It is unfair to other clients. They are giving me new discounts and stuff I think to keep me around. It very well could be I am extended on my own personal credit, not sure. I only have one credit card with anything on it and it is not much. Maybe with just buying the house, me and my wife bought it just before getting married, it is in my name and she was a co-signer.
 

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With the economy being what it is, and contractors going under left and right, your chances of getting business credit without signing a personal guarantee are slim to none. It's not necessarily the "right" thing to do, but for many yards, it's just a fact of life. They're not worried about losing your business if they don't extend you credit because they know that their competition is doing the same thing.
 

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I agree with Bob Kovacs, that your problems are probably more a sign of the current economic times, and not targeted specifically to you or your business. Once we get back into a softer financial market again, you will probably find it way easier to get the business credit you are looking for.

Have you ever requested a copy of your business' credit report? Perhaps there is something on there, a mistake that needs to be fixed, and you just don't know it. This is also good practice for one's personal credit. For all you know, you have been a victim of identity theft and there are unknown loans on the credit report that are now barring you from getting proper credit on your own.

Another suggestion I have, being in insurance, is to finance your annual insurance premiums through an insurance financing company like AFCO in the USA or CAFO in Canada. While some insurance companies offer a flat 3% monthly payment fee, the insurance financing companies interest rate applies only on the decreasing balance, so even if their posted rate is 5%, often it ends up being cheaper to finance through them. Plus they finance almost every business because they will use your insurance policy(ies) as collateral; if you don't pay your monthly payment, they cancel your insurance and collect the refund. One more thing, the insurance financing companies don't register their loan, so it frees up your regular credit for other purposes. It's easy to set up; your insurance broker gets the quote and contract for you - so it's not like you have to go to the bank and apply for a regular loan. Then afterwards, you can use the loan contract you had with the insurance financing company as history towards building up future credit because they also provide reference letters confirming that payments were made on time and on full.

I'd actually be curious to know how many of you here at CT finance your insurance premiums this way? It really is a smart way of managing your money, and as most of you know the annual insurance bill is not a cheap one. Most of my accounts are financed this way, even if the business had the cash available to pay the full premium at renewal time. I'm not an accountant, but if you know how to read a cash flow statement, they give you one with the quote when you are considering whether or not to take the financing contract, and apparently, their interest rates are such that most of the time you actually make money by keeping the full payment in your own bank account and only paying month to month.
 

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When I started 3 years ago I read a post on an investment site that said to go on line and apply for a credit card, on the application in the social security # box use your EIN# in this box in stead of your social. I did this and got a credit card in just my business name for $10,000 at 9.9%

:thumbup:
 

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When I started 3 years ago I read a post on an investment site that said to go on line and apply for a credit card, on the application in the social security # box use your EIN# in this box in stead of your social. I did this and got a credit card in just my business name for $10,000 at 9.9%

:thumbup:
Is this legal?
Sounds like some of the stories we've heard where young children or pets are issued credit cards. I wouldn't feel right about doing that, nor would I feel good about my credit card company if they issued a card this way.
 

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John Deere Landscapes uses my EIN for my account, so does American Express for the "Bob's Lawn & Landscape" account.

I'm pretty sure it's legal.
 

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INsurance finance

We financed our GL premium for the last 4 years. They want (if I remember right) about 30% down and we pay the rest over 10 months. My agent never even asked me about it -- he had the paperwork all filled out when we sat down to talk about the renewal. He said almost all of his clients do this.
 

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John Deere Landscapes uses my EIN for my account, so does American Express for the "Bob's Lawn & Landscape" account.

I'm pretty sure it's legal.
It is perfectly legal if they ask for your EIN. However, he said that he filled his EIN in a spot that was called out as SS number. Probably someone with the same SS number as his EIN?
 

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Bill we are all anxiously awaiting your 25th post so you can put up some pics and show us all of your brilliant talent. To my knowledge, you have posted no useful content thus far. Most of your posts only tout your awesome talent and berate others here who know each others talents and pay no mind to your attempts to inflate your accomplishments.

I am just bored today and had nothing better to do. You have come to a battle of wits unarmed!
 
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