CHAPTER 14: SUMMARY & REVIEW

You will begin the do-it-yourself section that will walk you though the lender requirements, establishing 5 vendor lines, method of getting credit cards, and obtaining business loans. Remember, establishing credit takes time and commitment. You need to establish credit by getting trade references, vendors, and lenders that will lend to your BUSINESS ONLY. Do not sign a personal guarantee. Once you’ve met all the compliance measures discussed above, you may want to find lenders that will lend to your business only AND report your positive payment history to the three major business credit bureaus: 1. D & B 2. Experian Business 3. Equifax business Be careful; avoid upfront fees and personal guarantees. Please refer to the legal disclaimer at the top of the information packet. When attempting to establish business credit, always make sure that you have all your paperwork in order. If you are missing anything, you are not ready! In this section we will cover important information that you should follow. When dealing with Dun and Bradstreet, there can be NO MISTAKES! What you should have: • You must have a phone number listed in the business directory of your local phone company and more importantly, it must be locatable by the operator. • Your corporation should be at least 6 months or older, although being incorporated recently is ok for some lenders • You must have live operators or “employees” answering the phone at your business at all times. • You must file Statement of information (officer’s list) • You should have some type of financial Statement • You must have a business license with your local city, state, or county if it is required. • Have a web presents and email address. A Yahoo or other email addresses are not really looked upon as business email address. • If you are using a shelf corporation be sure that you have all records from the companies you purchased it from. Yearly meeting should have been conducted and your kit should be up to date, as well as fee records. Try not to make a name change because this will through up a red flag. LIST: THE PROGRAM CHECK LIST: Step 1: Meet the lender requirements. (You’ll need a business address. Do NOT use a P.O. box. You can use a home address if you’re a home-based business, but some lenders won’t lend to businesses listed under home addresses.) 2. You’ll want a separate business phone number.

3. You’ll want to list your business # in the 411 directory. 4. If you can afford it, or if it’s tangible, an 800 Directory Assistance Phone Number looks the most professional. 5. It may help to have business fax #. 6. Having a professional web site helps you look professional as well. 7. You’ll want a separate business e-mail. 8. Ideally, the business officer will live in the state that the business is incorporated, but this isn’t always a necessity. 9. You will need a federal tax ID (EIN). You can get these on the IRS website or by doing a search for Federal EIN numbers. 10. You need to make sure that everything is filed correctly with the federal, state, county, and local governments. 11. You need to be up-to-date with all federal, state, and local filing fees, taxes, fines, etc. 12. Make sure everything is the same. Your correct business legal name, address, phone number, e-mail, and website address must be the same for each branch of government that you register with. These addresses, names, and numbers need to be the same with all banks and credit accounts as well. 13. Make sure that your 411 listing is consistent for all branches of government and banks to locate you. 14. Attention to detail: Your legal business name must be the same on every account and every document you submit. 15. You may want to have insurance and be bonded (if applicable). 16. You may want to obtain the appropriate business licenses (if applicable). 17. You will need a separate business bank account that lists your federal tax ID #. 18. If you can afford it, it looks good to keep at least a five-figure balance in your business bank account (this is assuming you have a cash flow at this point). If you do not have a cash flow, you may not be able to have a five-figure balance. That is okay, just not ideal. 19. Have appropriate business permits (if applicable). 20. Register with D&B 21. Be current on all taxes. 22. Find companies that will give business credit and begin to manage your debt properly. 21. Be on time with any and all debt payments. 22. Keep good records and financial statements. 23. Have your annual statement (if applicable) filed correctly and on time. 24. Be registered with your state department of revenue and/or have your state sales tax ID # (if applicable) Super Business Credit does not endorse or recommend any information provided by the third parties that we reference. Certain businesses need a license. Here is a list of some businesses that may require a license. There may be several other businesses in your state that require a license. Check with your state official. 1. Barbers 2. Contractors 3. Boxing

4. Insurance 5. Banks 6. Real Estate 7. Auctioneers 8. Accountants 9. Lawyers 10. Doctors 11. Alcohol Sales 12. Funeral Directors 13. Bill Collectors Check with your state officials for more information. Here is a method you will only hear about in this guide. Sign up for a subscription to "The New York Times". The credit lenders who place ads in this newspaper know that most of their readers are fairly wealthy, and they gauge their ads accordingly. It is not uncommon to be sent an application for a credit line of up to $1,000,000 from multiple credit lenders, simply because of your subscribing to the Times. Try it, and you'll be surprised at the results! Don't forget to write off your subscription to the Times as a business expense! If you own any type of property, and have good credit, you can easily qualify for credit lines ranging from $500,000 $10,000,000.00 +. With your property as collateral, and your good credit as proof of your credit worthiness, you can basically name your credit price with most lenders. One other useful method for obtaining large amounts of corporate credit is to use a friend, relative or trusted person to cosign with you for the credit. You can even work out a repayment plan with the cosigner, so they end up making a profit from the venture (this is done generally by paying interest or monthly payments on the credit line or loan). If you tailor the plan to their advantage, then they will most likely agree to help you get the credit. Make certain that you put everything down in writing and that you use the document "Board of Directors Resolution for Borrowing Funds". This way your co-signer's personal assets will be protected under the corporation. Auto & Real Estate Purchasing/Leasing At some point in your corporate experience, you will most likely have the need to purchase or lease an automobile or real estate. This is an easy task, if you know the right strategies to use. Below is a list of do's and don'ts for your purchasing and leasing: Make certain that your business will be able to meet their criteria. If you want to have the lease based solely on the business' financial background, you will need a two year minimum financial history, and tax returns to prove your credit worthiness. You will also need at least three trade references. Make sure that you contact the references beforehand, and ask them if you can use them as a reference. For the best results with automobile leasing, try to keep your monthly payments at a minimum. This way you can write off more of your costs on your corporate taxes. Please consult your accountant for more information on this procedure. As with all leases, ask your lender to report to Dun & Bradstreet and Experian for you. This way, you can continue to build up your corporate credit!

For real estate leasing, you will need at least 6 months to 1 year of positive business credit (or you can substitute personal credit) to obtain the lease). For real estate purchases, you will need a minimum of two years, tax returns and three positive trade references. For equipment leasing, you generally need only 3-6 months of positive business credit. Equipment leasing is a great way to get the equipment you need, and to write off nearly 100% of the costs! Please consult your accountant for more information on this procedure. For all other leases, remember that the better you prepare (getting the necessary documents, references, tax forms, etc.), the better your chances will be. In Conclusion, every business should have a working business plan. This plan can be short or long, it doesn't matter. What matters is that it explains in complete detail, what your business is trying to accomplish, and what your strengths are both financially & individually.

Remember: Always be careful. Make sure you’re 100% committed to your business before you start this program. Be careful with your money and the amount of debt you incur. Incur as little debt as possible. Save as much cash as possible. Make payments on time and rapidly. build credit rapidly. Be conservative with your credit cards and/or lines of credit. Of course, you should never borrow borrow more than you can pay back, and you should understand and evaluate the risks of any business venture. Consult with experienced professionals before making these decisions. THANK YOU.

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