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    37 Replies Latest reply on Dec 18, 2009 12:44 PM by tirann0

    Want to build business credit, STAPLES turned me down

    rolonap Wayfarer
      Good afternoon SBOC:

      I read from many forums that one of the best ways to start building businnes credit is to apply for a Staples line of credit using the business' EIN number.
      I went to Staples.com and could not find applications for lines of credit, only credit card (through Citi financial). I applied and was turned down, they said I needed a guarantor.
      My bussines is less than a year old.

      What now????
        • Re: Want to build business credit, STAPLES turned me down
          BizinSoCal Newbie
          Roland,

          My recommendation is to use Dun and Bradstreet's Credit Builder Program. You can read more about it on their website: http://www.dnb.com/SBCS_Collateral/Brochure/CreditBuilder.htm

          You can also contact them if you have any questions about the program. Here is my contact info there:

          Carina Fletcher
          eUpdate SMB Credit
          tel.800.627.3867x2918
          fax.866.886.1461
          fletcherc@dnb.com

          Good luck and post updates on your progress.

          Best regards,

          Reigneer
          1 of 1 people found this helpful
          • Re: Want to build business credit, STAPLES turned me down
            LUCKIEST Guide
            Want to build business credit

            Roland, We are in tough times. Even American Express is giving rewards to cardholders who cancel their cards with them.

            Suggestions, Try Home Depot, Lowe's, Costco, Exxon Mobil

            Good luck, LUCKIEST
            • Re: Want to build business credit, STAPLES turned me down
              bmt2008 Adventurer
              Are you looking to only build business credit? Is it because your personal credit is not so good? Are you looking for capital or trade credit?

              Also, if Staples pulled your credit (personal credit) that is a hit against you. The more hits the lower the score. Now, the credit bureaus know that people shop. So, if you have your credit pulled again in a very short period from the first - say ten days to two weeks, they count the second (up to three) pull as part of the first - so you only take one hit. - this applies only to personal credit (not sure what happens with business credit). Thought I would put that out there just in case you were thinking about waiting.

              Good Luck

              Business Money Today
              www.businessmoneytoday.com
              • Re: Want to build business credit, STAPLES turned me down
                NoBullFunding Scout
                Paying money to "build your business credit" is a WASTE OF MONEY. Lenders will pull your personal credit if you apply for a loan. The only people who benfit from these services are the ones who sell them.

                In 10 years as a lender, I have never ever made a loan decision based on a D&B report. BUSINESS CREDIT IS IRRELEVANT IN 99% OF CASES. Your ability to get a loan is much more dependant on your personal credit history. Don't buy into the hype of these used car salesmen who tell you that you need to pay $329 to build good business credit. You can't pay for good credit; you build it by demonstrating a history of responsible debt management.
                  • Re: Want to build business credit, STAPLES turned me down
                    BizinSoCal Newbie
                    Hi Roland,

                    I just wanted to clear things up. NoBullFunding made a good point. If you are looking for a LOAN, your personal credit as the business owner will be reviewed (it doesn't matter if you are applying for your business). If you are looking for a LINE OF CREDIT for your BUSINESS (not personal), a business credit profile will be reviewed. DNB rating goes up (same as a FICO for individuals) when you pay your debt on time. So, having a good business credit will take time. Where to start building a BUSINESS LINE OF CREDIT (let's say a $500 line at Staples)? You can go ahead and ask Staples why they did not approve your BUSINESS LINE OF CREDIT since your PERSONAL CREDIT is good. I think it's because using your EIN, they were not able to review a business credit profile. Had you used your SSN to apply, then you would have been approved. But then, you wouldn't be building your business credit... you'd still be building your personal credit.

                    Just a note: I am in no way affiliated with DNB nor any company that provides service to obtain DNB rating. My reference to you is the direct contact info for a DNB representative with whom I spoke. She explained how a business credit profile is created. It is mainly making sure your business is legitimate (correct business address, phones being answered in a professional manner, no liens or lawsuits against the business, etc.) This will allow Staples credit review department to determine if it is okay for them to open a $500 line of credit (maybe $250, but it would be enough to start building your business credit). In most cases, a business LOAN is a LOT more than $500; therefore, lenders would want to see your personal credit to make sure they are lending to a qualified individual.

                    I hope I have cleared things up. If you have any questions, please feel free to contact me. You can check my profile for my contact info.

                    Again, good luck.

                    Best regards,

                    Reigneer
                      • Re: Want to build business credit, STAPLES turned me down
                        NoBullFunding Scout

                        Any time you apply for credit that of a material dollar amount, a lender will check your personal credit. As far as what the nice lady at D&B was advising, let's not forget that its in their best interest for people to think that a D&B score matter. The truth is that D&B score DOES NOT MATTER. Real lenders don't depend on them at all because of the scarcity of information that they have on most small businesses.
                          • Re: Want to build business credit, STAPLES turned me down
                            bmt2008 Adventurer
                            As a former commercial lender myself - I have never seen any company obtain any credit based purely on their business credit. In fact, I have never seen a D&B score help a business get any credit at all - although I have heard where business credit helped a company get trade credit from their supplier - but, the company was strong and the business score just helped.

                            But, I have seen a buiness get turned down because they had a bad business credit score. So, while business credit may or may not help you - if you take the risk and build your business credit - make sure you keep it as good a score as you can - a bad score will hurt you while a good score may or may not help.

                            I this market, I think business credit matters even less. Additionally, I find it very hard to beleive that a person or company will pay $2,000 to $2,500 for someone to build them a paydex score. 1) you can do this yourself if you need the score (much cheaper) and 2) sounds like a rip off - especially if the score will not do much for you.

                            Want to really know the truth on business credit? Call your local commercial lender.

                            We have only ever used D&B to get business names and contact information as part of our customer research and marketing - never for credit underwriting or approval.

                            Just my thoughts
                            • Re: Want to build business credit, STAPLES turned me down
                              BizinSoCal Newbie
                              NoBullFunding and bmt2008,

                              Good input. But, if you look at what Roland wrote when he applied at Staples, he used the business EIN. There is no way Staples can review his personal credit without an SSN. Staples had to make a decision based on what they can find out with the EIN. In Roland's case, not much.

                              As bmt2008 pointed out, suppliers can approve trade credit lines based on business credit rating. Again, in Roland's case, a Staples $500 or $250 credit is similar to a supplier's trade credit since Staples will provide office supplies to Roland's business. Gasoline stations can also provide a similar line of credit for his business.

                              Keep in mind these are not business loans. They are LOW LIMIT "suppliers" trade credit lines that can be obtained by using a business EIN and without an SSN. I believe this is what Roland is trying to establish. That said, I wouldn't recommend spending $2500 to build a business credit profile. The $296 DNB charges is more reasonable and COULD be tax deductible (disclaimer: I am not a CPA nor am I giving tax advice. Please consult with your CPA / Accountant before making a decision).

                              Have a great weekend.

                              Reigneer
                                • Re: Want to build business credit, STAPLES turned me down
                                  NoBullFunding Scout
                                  I'm sure Staples would be more than happy to take a social security number in lieu of an EIN. My main point was that business credit is irrelevant for 95% of small businesses, so paying someone money to establish business credit is a waste. I say this from the perspective of a lender who has done this for 9 years. The distinction between business and personal obligations for most small business owners is one that is hard to make anyone, since so many businesses are finance with personal debt like credit cards and home equity loans.
                                    • Re: Want to build business credit, STAPLES turned me down
                                      shangzh2000 Newbie
                                      OK. There is one thing I hope to know:

                                      if I got a business loan that is not guaranteed by my personal credit(maybe the bank checks my personal credit info), will my personal assets are subjected to that liability?

                                      thanks for your input.
                                      • Re: Want to build business credit, STAPLES turned me down
                                        Canadianbiz Wayfarer
                                        DONT EVER PAY SOMEONE $2500.00 UNLESS YOU ARE BUYING SOMETHING YOU CAN TAKE HOME.I am from Canada,and had 2 companies do this for me.$600.00 the first time and $129.99 the second,only for them to say we cant help you.
                                          • Re: Want to build business credit, STAPLES turned me down
                                            shangzh2000 Newbie
                                            so, business credit is really useless? personal assets are subjected to business liability? It sounds not right. or you think it is not worthy if someone claims he can build the business credit for you?
                                              • Re: Want to build business credit, STAPLES turned me down
                                                bmt2008 Adventurer
                                                Business Credit is not useless - it just cannot be used like most people want to use it. If you are seeking trade credit from your suppliers or vendors - yes business credit can help - if you think you can use it in place of your personal credit when applying for a loan - becuase your personal credit is a mess - then no - it will not work for you.

                                                Lenders just want to be repaid - they don't care if the money for repayment comes from your business or your personal income. They just want to be repaid.

                                                Lenders usually look for three sources of repayment:

                                                1) Conversion of business assets (turning over inventory or getting paid for your accounts receivables) or from business profits. They also look at personal income and debt levels.
                                                2) Collateral - unless it is an unsecured loan. The collateral must have enough value to cover the loan amount as well as any fees and other costs the lender might incur if they have to take the collateral. If unsecured - lenders require that you meet higher underwriting standards and look very closely at your current income and debt levels.
                                                3) Personal guarantees. This means that your personal assets are subject to the lender - should you not make payments. The banks just want to get repaid - they can go after savings, retirement accounts as well as personal collateral like houses, cars, etc. This also shows the lender that you have a lot of "skin in the game" and that it would be harder for you to just walk away from the loan if your personal assets are at risk.

                                                Put yourself in their place and ask what would you require froma borrower who was asking for a loan from you - from your hard earned money.
                                              • Re: Want to build business credit, STAPLES turned me down
                                                bmt2008 Adventurer

                                                Canandianbiz - thanks for the call - I did a quick search for resources in Canada.

                                                 


                                                I found this site which appears to have good information regarding loan resources in Canada:

                                                 

                                                http://sbinfocanada.about.com/od/smallbizloans/Small_Business_Loans_Canada.htm

                                                 


                                                I also found some information on government guarantee programs (I think this is similar to our SBA loans):

                                                 

                                                The Canada Small Business Financing Program seeks to increase the availability of loans for establishing, expanding, modernizing and improving small businesses. It does this by encouraging financial institutions to make their financing available to small businesses. Under the Program, a small business must apply for a loan at a financial institution (bank, credit union or caisse populaire) of its choice. Application is not made to the Canada Small Business Financing Program Directorate. If the loan is granted by the financial institution, the federal government will reimburse 85 percent of the lender's losses in the event of default.

                                                 


                                                The +Canada Small Business Financing (++CSBF++) Act+ was enacted in April 1999 to build on the success of its predecessor, the Small Business Loans Act. The Program's objectives are to streamline loan administration, improve its ability to achieve cost recovery and to extend financing that would otherwise have been unavailable to small-and medium-size enterprises.

                                                 


                                                While Industry Canada is responsible for the administration of the Program, financial institutions are responsible for all credit decisions and for making the loans.
                                                • Re: Want to build business credit, STAPLES turned me down
                                                  token88 Newbie
                                                  IF you paid with a credit card , your back should be able to reverse the charges since they didnt provide the service they were advertising.
                                      • Re: Want to build business credit, STAPLES turned me down
                                        NRU Investor Wayfarer

                                        I have a perfect solution available for new businesses, that will allow you to obtain a pre-approved platinum line of credit up to $7500. It will also allow you to become eligible for D&B reporting as well. Email me your contact info to brandnewstart09@yahoo.com and the best time of day for someone to contact you. Thanks!
                                        • Re: Want to build business credit, STAPLES turned me down
                                          afraz622 Newbie
                                          Hey, my name is alex and I work with a company called Payment Shareholders, if you are interested in building your business credit our Credit Builder Gold package guarantees an 80 PayDex score, this is 20 points lower than the highest score possible but it is also the optimal score for attaining business financing. With this package you will alsoreceive two business tradelines. This ensures your business has the most optimal creditscore so that you will be on your way to jump starting your fiscal year with a great budget. The price for the Credit Builder Gold package is $2500 for all credit purchases and $2000 for bank deposits.

                                          We also offer other services such as credit sweeps, we sell primary and business tradelines and additionally we offer a package that includes a credit sweep and three primary tradelines for the same price as the Credit builder Gold package. If you are interested in any of our services or would like more information please comtact me at alex.frazier@live.com
                                          • Re: Want to build business credit, STAPLES turned me down
                                            token88 Newbie
                                            first of all Staples didn't turn you down the bank did. If you are not incorporated having a ein under a sole propritership is not going to work unless you good credit because most of the times lenders are going to want you to be the guarantor. If your credit history is not strong you are going to be rejected. So having a D &B credit builder is good but again If your not incorporated you would be wasting your money. You can incorporate for the same price as a credit builder. 2nd thing you do when you do incorporate is open a bank account under your corporation, then go from there.
                                            • Re: Want to build business credit, STAPLES turned me down
                                              arttown Newbie
                                              IVE READ ALL OF THE RESPONSES FROM OTHERS BUT THERE IS A WAY, I HAVE A BUSINESS PARTNER THAT CAN HELP YOU GET A BUSINESS LINE OF CREDIT UP TO 100,000 YOUR PERSONAL CREDIT DOES NOT PLAY A FACTOR IN YOU GETTING APPROVED PLEASE EMAIL ME IF I CAN HELP YOU.
                                              • Re: Want to build business credit, STAPLES turned me down
                                                jdizon Newbie
                                                Roland, We are in tough times. Even American Express is giving rewards to cardholders who cancel their cards with them.

                                                 

                                                 

                                                MerchantAccountsLLC[.]com
                                                  • Re: Want to build business credit, STAPLES turned me down
                                                    Wayfarer
                                                    Try another company to start with. Here is some info about business credit cards that you all may have already heard about....

                                                     

                                                    A true business credit card is a line of credit that is taken in the name of the business, under the business' credit. Activity, whether good or bad, is reflected on your business' credit report through D&B and other financial institutions, and the liability for any debts incurred and bills owed is with the business.However, some companies out there offer "business" credit cards which they require a person guarantee for. These institutions will often ask for a personal guarantee, and will almost always ask for a social security number from the person applying for the card. If this is the case, the credit card is not a business credit card, but is simply a personal credit card which is used for the business. The business is not liable for bills and debts - you are.When applying for a credit card for your business, watch out for areas asking for your SSN (and not your TaxID or EIN) and be wary of any credit card that asks for a personal guarantee. By ensuring that your credit card is in the name of your business, you can help to build your business' credit, while avoiding creating problems with your own.

                                                     


                                                    Many companies offer a list of credit cards that are issued under the business name only. Those lists typically run $300-$900, depending on the quality of the information inquiring. I would suggest starting your search online via google or yahoo. Search for "strong business credit" (just like that in quotes) to find services that sell the information.

                                                     


                                                    Good luck,

                                                     

                                                    Ilya Bodner

                                                     

                                                    Small Business Owner

                                                     

                                                    Initial Underwriting Group
                                                  • Re: Want to build business credit, STAPLES turned me down
                                                    sharonvt55 Newbie
                                                    As a new business Staples also turned me down. And I do have and Duns number. It didn't seem to help. I didn't want to do a personal guarantee. That's why I'm a LLC to not have to do that. Your thoughts?
                                                      • Re: Want to build business credit, STAPLES turned me down
                                                        token88 Newbie
                                                        LLCs are relatively new and that is why when someone applies for credit they are turned down. My friend had the same problem with his LLC as well. if you are looking for help email me at alexmartinez.1@netzero.net
                                                        • Re: Want to build business credit, STAPLES turned me down
                                                          ONE.COMPANY Wayfarer
                                                          Corporations, LLCs are the ideal way to begin establishing a separate business credit profile. And even in todays economy there are companies that are willing to extend a few hundred dollars worth of trade credit. But your "paperwork" must be in order. At less than a year old, your company can begin the process of establishing business credit. Patience is a key point here also. It is going to take time to establish your basic foundation for business credit. Done properly yu can probably have a few tradelines reporting within 2 to 5 months. Just having a Duns number won't help. You need trade accounts reporting. And when you do have a few reporting, at a certain level, you will not have to personally guarantee certain tradelines.
                                                            • Re: Want to build business credit, STAPLES turned me down
                                                              ONE.COMPANY Wayfarer
                                                              If you would like a guide on how you can establish business credit on your own go to this website:

                                                              www.cardaspublishing.com
                                                                • Re: Want to build business credit, STAPLES turned me down
                                                                  mike2all Newbie
                                                                  i can help (coach) anyone build business credit for their business w/tax id only....building credit for a business is like climbing a flight of stairs....you have to walk up the steps until you get to the top floor (bank financing).....it sounds like the person that started this thread tried to take the elevator insted of using the stairs...BUT IF YOU WANT TO BUILD GOOD BUSINESS CREDIT WITH THE SAME TAX ID NUMBER...STOP USING THAT TAX ID NUMBER TO APPLY FOR BUSINESS CREDIT ......UNLESS YOU ARE WILLING TO TAKE THE PROCESS ONE STEP AT A TIME FROM THE GROUND....if you want my help (credit coaching) .....i wont charge you 2500......email me at mhardnett@titanicmgmt.com for pricing...
                                                                • Re: Want to build business credit, STAPLES turned me down
                                                                  SmBizCPA Newbie
                                                                  I agree with One.Company. You need to establish Trade Credit (i.e. Accounts Payable on your books) with local businesses.

                                                                  Each company sets their own policies to decide to whom and how much trade credit they will extend. Some companies will extend 15-30 day credit terms for new businesses, but not all. Some companies will require the owner of a corporation/company (Sole-Proprietorship, S Corp, C Corp, LLC, or LLP) to co-sign or personally guarantee payment on the trade account. So, set the account up in the company's name, using the company's FEIN, so that you can begin to develop a credit payment history that will be reported to Dun & Bradstreet. To get the first few accounts, the owner may have to use his/her personal credit history as a secondary source to obtain the credit approval for the business.

                                                                  As a small business Controller, I had to go to each of our vendors to set up trade credit accounts for our business. As a startup company, we were often turned down on the first try. So, we provided trade references from our other accounts to set up new accounts. We often had to provide information about the CEO/President of the company, too. (The CEO/Pres. has to give permission & sign the paperwork.)

                                                                  It's kind of a snowball effect. Once you find a few vendors who will offer you credit, you buy products from them and then pay off your account within the allowed time frame (usually 15-30 days). Now, you have a business reference to use to set up new accounts in the future. This takes time. But, vendor trade credit is really "free money," if you think about it. If you pay the account by the due date, you don't (usually) have to pay interest.

                                                                  On the flip side (trade accounts receivable), you will need to think about extending credit terms to your customers (depending on how you do business). Then, you will be helping other companies establish their credit ratings. :-)

                                                                  So, it comes down to people helping people.

                                                              • Re: Want to build business credit, STAPLES turned me down
                                                                ONE.COMPANY Wayfarer
                                                                There was a time when Staples/Citibank issued a business line of credit with just a EIN/TAX ID, corporation documents, business documents and a business contact number. With the "credit crunch" they have tightened the criteria. Now, if you apply for their business line of credit, you will have to have a few trade lines or accounts reporting on your business credit profile with Dun and Bradstreet or Experian. The best way for you to establish your business credit profile is with "net accounts" that report to Experian and/or Dun and Bradstreet. Although at times Citibank utilizes Dun and Bradstreet, Experian has more weight though when it comes to them running a business credit check.

                                                                Depending on your business position, you may or may not want to fork over few hundred dollars for a credit builder program. In many instances, a basic profile with tradelines can be accomplished on your own. And if you are a business owner, then it should not be too difficult.

                                                                There is a guide available that can assist you in establishing your business credit profile for less than most "value meals". Email me if you would like some more specifics or download the guide.

                                                                Email - contact@cardaspublishing.com
                                                                Website - www.cardaspublishing.com
                                                                • Re: Want to build business credit, STAPLES turned me down
                                                                  BizSolutions Adventurer
                                                                  I can offer some suggestions for you. Please email me at Monique@accuratefinancial.info