This content has been marked as final. Show 9 replies
1 of 1 people found this helpfulShould a new Corporation use a credit building company?? Good question
I Googled " credit building company " and got the following
Hope it helps, LUCKIEST
businesses the ability to obtain trade or
business credit without the
use of a personal credit check or guarantee.
company in the nation to offer a Business Credit Building service
credit coaches to assist business owners in establishing a business
credit profile and obtaining
business credit with companies all around
sets itself apart from any competitor in the market place by providing
a qualified coaching staff to assist you and answer any questions you
have. Our coaching staff is the reason for our success.
from every state in the nation achieving over $175,000,000 in credit
lines. The success of the program has caused Business Credit Services to file a patent application with the Federal Patent Office. The patent is currently pending approval.
- Obtain a business credit profile under the business name that is separate from the personal credit report of the individual owners or officers of the business
- Built a solid foundation for their business that put them in compliance with the lending markets and increased their chances of approval for business credit
- Built business credit reports and scores with ALL the top business credit bureaus
- Improve the business image to increase their likelihood of obtaining credit, loans, leases and even government contracts
- Collectively received over $175,000,000 in credit lines under the business name only
- Sleep better at night \\ knowing they had access to capital they didn’t have before, allowing \\ them to use other people’s money to start and grow their business
- Reduce the use of their personal credit in business transactions
- _Gain Piece of Min
- Separate their personal and business life
- Save thousands of dollars with lower interest rates
1 of 1 people found this helpful
My thought is that everything a credit builder can do for you, you can do for yourself. Those services have a valid purpose, but some small businesses view them as a source of start-up or first stage expansion funding when a commercial loan is not available. Here's a potential problem with that for a new business:
One credit builder (that has been pitched here on the SBOC) charges a $2,500 fee up front, plus 5 percent of the credit line they secure. If they secure a $500K LoC, that's $25K -- meaning the new business owner comes out of the gate $27,500 in the hole, not a dime of which has gone toward anything that directly generates revenue. Assuming the business uses another $50K to capitalize, the owner will have a $6,500 minimum payment due a month later with about $2K a month in interest being added to the balance. It's sort of like using a Visa card to buy a house.
If the entrepreneur had the numbers to show that he/she could launch a business turn a profit big enough and quickly enough to climb out of that hole, I think an investor would jump on the deal and provide the necessary seed funding. On the other hand, if the business isn't looking to use the LoC in the early months, why pay to get it? If the business is even marginally successful, credit offers will start arriving in the mail soon enough. That's just my perspective . . .
Luckiest and Lighthouse, I thank you both for the information you have provided. Yes, I am looking for a business partner/Investor. My project involves building a "green" community here for low to moderate income families. 149 acres of wooded undeveloped land, and sculpting in 9 buildings with a total of 72 units of housing. HUD approved, and with a guaranteed rental income stream. Utilizing Geothermal water heating, this will give unlimited and virtually free hot water to the complex. Solar panels and Backup generators that will be running on biodiesel. I have incorporated a few other designs into this project, that I will save for a serious, interested Investor. It is not designed as a "landslide or windfall" cash machine, but an income stream investment. Yes, this project will fill a very real need, and if all goes well, phase 2 of my plan will be a gem.
Lighthouse, I would be interested in speaking with you. Would you mind giving me a few minutes of your time? I will list my email to confirm with you.
Have you applied for and received a Dun & Bradstreet number yet? If so, look into their ScoreBuilder ($499) and Scorebuilder Plus ($799) products.
Yes, I have applied for my Dunn and Bradstreet number. I was thinking of using their credit builder, but I need to know more before I trust my Company's credit with anyone.
I noticed another thread after I posted my suggestion.
Take a look:
They're advising against it, but if you're looking for something quick it's probably a good way to go. I think I would trust my business credit to DNB moreso than anyone else. I've worked for a few government contractors over the years and in order to even be considered for a govt contract you have to be associated with DNB. I haven't purchased the creditbuilder from them because I'm going to give it a try on my own (and I don't have that type of money to spare from my new business).
So, if you decide to use them please give us an update of how evrything went for you. Good Luck!
Getting a B&B number is good since many businesses wont deal with you without that but getting a credit builder package from D&B is a ripoff. There is a long list of businesses that you can not use as ref to build your credit file with D&B as per D&B's policy !!
At the same time if you dont buy their package, you may have a very hard time getting a D&B no and with out D&B no you can not deal with some big name companies !!
Unless i see a great opportunity which is gurenteed for expansion and growth of my business, I would use cash to avoide any worries.
*+Hi, hope you are having a great day! In response to your question, I suggest it is up to the Corporation principals. It is not for everyone, you can do it without a credit building company. You just really need some guidance on how to do it - whether you seek this information from another source or you pay a credit building company. Some people choose to do their own research and do really well doing that. Just remember, if you decide to use a credit building company - please make sure they are a reputable company. Some of the ones I have seen out their really seem to charge an astronimical amount of money to do this. For what it appeared to me they were selling - it was really quite overpriced and I got an "icky" feeling about them. I have had clients tell me they have checked this out in the past by going on the credit building company's website and entered some general information for the company to contact them. After doing this, they immediately started getting these e-mail blasts - at least 2-3 daily o1 of 1 people found this helpful
*So, please watch out and be careful who you deal with. Your local SCORE Office my be a great asset also, if not right now maybe down the road. *
My name is Carol and I am a Financial Consultant who works with business owners to help them obtain the financing their company needs. I work with different lending sources, including SBA. If you ever need my help, please feel free to contact me and have a wonderful day!
Carol Smith, Financial Consultant
(877) 382-8159 Toll Free