Shelf company list: Request the list
CORPORATE CREDIT & SHELF
POINTS ON BUILDING CORPORATE CREDIT:
- Aged EIN numbers add no
value. Don't spend more money for a shelf company because it has an
- There are three reasons to
obtain a shelf corporation:
- Assist in the building
of corporate credit
- Convenience in start-up
- Enhance the
- Builds customer
confidence in the business
- What shelf corporations
- All corporations provide
a form of asset protection through limited liability. An aged
shelf company does not provide enhanced protection because its aged.
- Aged shelf corporations
cannot legally evade taxes or hide assets.
- Lenders require the
principals of the company to be disclosed on the public record. This
means you cannot use nominee officers when applying for corporate credit.
In other words, you cannot have privacy and corporate credit at the same
- Stay away from "throw
away" shelf corporations and shelf LLC's. A "throw away" company is
one that was discarded because the previous owner went out of business.
- The shelf corporation
may have a dangling and unseen liability to the IRS or other debtor.
- You may receive a knock
on the door years later to pay someone else's bill.
- Even if someone agrees
to indemnify you of expenses and costs, it doesn't mean anything if they
can't be found, or if they can't pay.
- Don't invest years of
energy, effort and money into a corporation that may sink years later
because of surprise litigation.
- Acquire only shelf
corporations that have no business history and no transaction history.
- Think about the claims of
anyone who claims to build corporate credit. Stay away from any
promoter or consultant who advocates any dishonest activity.
- Only obtain corporate
credit that you're willing and able to pay.
IF YOU'RE A PROVIDER AND CAN
PROVE YOUR PROGRAM WORKS, PLEASE CALL 307.237.2580.
If you're interested in
developing corporate credit, then think twice about many of these providers.
Many are selling quickie plans to develop instant credit profiles. And
several of their strategies are illegal.
When we challenge them for proof, most just back off. They promise
references, evidence and examples that their corporate credit plan
works...but short on the follow-through. We think that there are many
providers entering this hot new field willing to make the money, and they're not really
qualified to deliver. Prove us wrong.
ARTICLES ON BUSINESS
Ways to get a collection removed from a credit report
Techniques to optimize your
Bullet points on building business credit with your aged shelf corporation
or aged shelf LLC
Quick ways to
build business credit
How does my credit
credit/business credit building checklist
Business Credit Fraud
How to Dispute
Credit Report Errors
Business Identity Theft
How to Prevent Business
Selecting the Right
Increase the Speed of
Increase Your Chances of Obtaining a Small Business Loan
up Funding for Your Shelf Corporation
Pros and Cons of Financial Leverage
Cost Benefit Analysis
How to Fund Your
Establish Business Credit for
Your Small Business
Credit Risk Management in Building Business Credit
Special Alert Bulletin for Entrepreneurs and
Business Owners Who
Need Business Financing …
The 9 Most Devastating Mistakes Entrepreneurs and Business Owners Make When Financing Their Businesses … and How to Avoid Them
Which of these all-too-common mistakes will cost you your business, peace of mind … and even your home?
Find out inside – and also discover how to get unlimited cash financing for your business and investments … WITHOUT Risking Your Personal Assets, Lowering Your Personal Credit Score, or Damaging Your Personal Credit History
By Chad Lee
Provided compliments of:
Corporate Credit Concepts
6130 Elton Ave.
Las Vegas, NV 89107
"How Much Are Your Willing to Risk For Your Business?"
As an entrepreneur, you’re hardwired to enjoy
a greater level of risk than the average person. But do you enjoy the thrill
of business and investing so much that you’re willing to risk:
· Being hounded by creditors?
· Declaring bankruptcy?
· Being denied a mortgage?
· Paying more than your fair share of interest on your
If you answered "no" to one or more of these
questions, this may be the most important report you’ve read in a long time.
Because, if you’re like most entrepreneurs,
investors, and business owners I’ve met over the past 28 years, you’re in danger
of facing all of these horrific problems.
And it’s all because of your business. You see, entrepreneurs typically make one or
more financially devastating mistakes when financing the launch, operation
and/or growth of their businesses. In most cases, they don’t realize that
they’re making a mistake.
And to tell the truth, even when they do
realize they’re making a mistake … they lull themselves into thinking that the
consequences will be a minor annoyance.
Until, one day, they can’t qualify for a
mortgage. Or they can’t get the to-die-for financing offered on the new car they’re
buying. Or they’re hounded by creditors and eventually have to declare bankruptcy.
To help you avoid these chilling and
all-too-probable consequences, I’ve assembled list of the nine most devastating
financial mistakes entrepreneurs make. These are critical errors that can bury
your business, smother you in personal debt and destroy your financial
The business-financing experts at Corporate
Credit Concepts have helped thousands of entrepreneurs just like you to
avoid these expensive blunders while building solid, valuable corporate credit –
and along with it, the business of their dreams! Follow our time-tested ways of
avoiding these nine entrepreneurial dream-killers, and you’ll be on your way to a
more secure, satisfying, and financially rewarding future.
Devastating Mistake #9
Using personal credit to finance your business
The hands-down biggest and most common
mistake entrepreneurs make is using personal credit to finance their businesses.
Common examples include:
· Paying for business expenses with your personal credit
money from your personal savings, checking, retirement or other investment accounts to "invest" in your
personal loans to finance your business expenses
If you’ve used one or more of these financing
methods to fund your entrepreneurial ventures, I’m not surprised.
Shockingly, many business-start-up experts recommend these methods for funding
Their advice is well-intentioned … but
nonetheless incredibly dangerous. The reason for not using your personal credit for
business purposes is simple: You WILL destroy your personal credit. It’s
By using your valuable personal credit for
business expenses, you run the risk of:
· Lowering your
personal credit score. When you personally guarantee business-related financing, the
lender will require a personal
credit check. Every time an inquiry into your
credit history is made, your personal credit score takes a hit. The lower
your score drops, the harder it is to secure financing…especially financing
with the most favorable terms.
· Reducing the
amount of credit available for personal use. The more credit you have personally guaranteed
for your business, the higher your debt-to-income ratio soars … and the
less that lenders will be willing to give you for personal use. Signing that
loan for your business could prevent you from getting a mortgage on the
new house you plan to buy a year from now.
everything. When you use your personal resources or credit to finance a business, you chain your financial
security to your company’s success. If the company fails, you’ll be left
holding the bag … and your personal finances will sink along with your
business. You’ll never recoup the "loan" you took from your retirement
account to get your business launched. Creditors will be calling you for
payment. And if things get bad enough, you may have to declare bankruptcy.
To protect your financial security, don’t use
your personal credit to finance your business activities. Instead, take action to
secure credit in your company’s name – WITHOUT Risking Your Personal Assets,
Lowering Your Personal
Credit Score, or Damaging Your Personal
Devastating Mistake #8
Putting personal assets at risk
Each time you provide a personal guarantee
for any type of credit extended to your business, you jeopardize your personal
assets, such as savings and investment accounts, your car, and even your
home. If your business can’t pay off its debt, the bank will come looking for you
to make good on the loan. A business entity established as a sole
proprietorship is most susceptible to this risk. Although you can build business credit
as a sole proprietor, you will be completely liable for all personal and
corporate debt. Your credit history will be based solely on activity associated with your
social security number because you will not have a corporate tax ID number. As a
sole proprietor, you also have no legal means for separating corporate and
The best way to protect your personal assets
is to incorporate your business. You’ll shield yourself from personal
liability for the company’s debts and typically will also reduce your tax burden.
Devastating Mistake #7
Contaminating your credit
When people marry, they vow to share their
lives. For some good-hearted but financially naïve couples, this means sharing
personal credit. Unfortunately, adding your spouse to your
credit isn’t a show of undying loyalty and devotion. It’s credit file contamination
– an almost unforgivable sin if you’re a business owner. When you initiate joint credit, your spouse’s
credit history becomes part of your credit file. If your spouse misses a payment,
the delinquency affects your credit. The matter is complicated further if you
haven’t taken steps to separate your personal credit from your company’s corporate
credit. Credit file contamination created by a spouse’s credit history could
easily keep y0u from achieving your business goals – because it will prevent you
from securing the financing necessary to grow your company.
To avoid credit file contamination, keep your
credit history completely separate from your spouse’s history. If your spouse
ruins his or her credit, then you’ll still have a good credit history to support your
family, as well as your business.
Devastating Mistake #6
Not paying your bills on time … 100% of the time
You misplaced your credit card bill and sent
in payment a few days late. It happens to the best of us, right? Maybe so …
but as an entrepreneur, you can’t
afford even a single late payment. Your
credit file is a complete history of your credit activity. Not paying your
bills on time can ruin your credit file. A single delinquency can be held
against you for years and be used to constrict the extension of existing
credit or deny new credit– which can make or break your ability to finance
the launch, operation or growth of your company. There are two
things you should do to protect yourself from this critical mistake.
The first, obviously, is to ensure that you
pay your bills promptly. Second, keep your personal credit separate from
your corporate credit. That way, problems with your personal credit history
will have no bearing on your corporate credit. But if you do not take
all the necessary steps to separate your corporate and personal credit,
problems with your personal credit file could directly affect your ability
to build your corporate credit and your business.
Devastating Mistake #5
Using your family’s money
When you use your personal credit card to buy
business items, you instantly slash the amount of credit you have available
to get the things you and your family need and want. And if you, like many
Americans, regard your credit cards as the financial cushion that will carry
you through emergencies—such as an illness that makes it impossible to
work-- wasting your credit on business expenses weakens your safety net.
Still, many entrepreneurs ignore the dramatic consequences of this dangerous
· They buy business-related items with their
personal credit cards.
· They "borrow" the money they’ve socked away
in retirement, education and savings accounts … and "invest" it into the
· They obtain other personal credit cards,
leases, loans and lines of credit. And, once their borrowing limits
are maxed out … they persuade their spouses or other family members into
using their credit to continue financing the business. Be forewarned:
if you convince your family members to finance your business, you’re just
digging a deeper hole for your family to crawl out of. If your business
fails – as 95% of business do in the first five years, according to the
Small Business Administration – your family could be wiped out financially.
Don’t ask family members to use their personal credit to invest in your
As we discussed in Mistake #9, using your
personal credit to pay for business expenses is a strategic error. And if it
doesn’t make sense for you, the business owner, it makes even less sense for
family members. Keep everyone’s personal credit strictly separated from your
company’s corporate credit.
Devastating Mistake #4
Not setting up a corporation and building corporate credit – the right way
owners are unaware of the value of incorporation. Even fewer understand the
essential steps necessary for building the kind of corporate credit that
will enable them to take full advantage of their entrepreneurial status.
Incorporation makes your business entity separate from you, the business
owner – a separate entity with its own liability. Incorporation separates
your business assets from your personal assets. If someone decides to sue
your company, they cannot touch your house, car, or anything else owned by
you or your family. But eliminating your personal liability for your
company’s debts and actions isn’t the only reason to incorporate your
business. Let’s face it. You are in business to make money. And to make a
profit and sustain your business, you need capital – in the right place at
the right time – to help your business grow. By incorporating your business,
you enable your business to begin establishing corporate credit, which will
ultimately provide the funds you need to grow your business. But
incorporating your business doesn’t automatically qualify you for all the
corporate credit you need, much less the best type of corporate credit. Your
goal should be to secure cash lines of credit – not lines of credit that are
tied to particular stores or vendors – for which you do not need to offer a
personal guarantee. To secure this "Holy Grail" of corporate credit, you
need to follow a well-defined, step-by-step system to build your corporate
credit history and business credit score.
Some of the preliminary steps every
entrepreneur needs to take to secure excellent corporate credit include
incorporating your business, maintaining a physical office, obtain a local
phone number and a 411 listing, and get a business license.
These steps begin to pave the way for
building your credit score with business credit bureaus. After you follow
those preliminary steps and provide the bureaus with the information they
require, and go through our Corporate Credit Builder Program, you will be
prepared to approach the handful of lenders who will give you a cash line of
credit with no personal guarantee. In other words, those few lenders will
help you keep your business and personal assets, separate AND give you the
cash you need to grow your business.
Devastating Mistake #3
Rushing the process for building corporate credit
Corporate credit can be an invaluable tool as
you build your wealth; because it gives you the flexibility to invest money
in ways that you have determined will help you build your business.
But just as it takes time and patience to
build wealth, it takes time and patience to build the corporate credit that
enables you to get cash from lenders without your personal guarantee.
Incorporating your business is just the start of the process. The
industry standard for building corporate credit to the point where you can
secure cash loans without a personal guarantee is two to three years.
Corporate Credit Concepts has streamlined its credit-building process so
that you can get the corporate credit you need in as little as one month.
And then follow the steps to position your company to qualify for no
personal guarantee lines of credit.
Devastating Mistake #2
Not following up on the credit-building process
Once they begin to follow the prescribed
process for building corporate credit, many entrepreneurs simply don’t do
enough follow-up work. But if you don’t keep track of your progress during
the process of building excellent corporate credit, you may miss key
elements that could make the difference between getting the cash line of
credit you need … or being denied.
It is always a good idea to delegate,
especially if you are busy. But you have to be careful as to which kind of
work you delegate. The work that directly affects the growth of your
business and your wealth deserves your personal attention.
Devastating Mistake #1
Not recognizing opportunity costs
At the first sign of profits or the first
influx of credit, many business owners spend more than they have – or even
more than they will make – on material goods. Lured by the luxury car
or exotic vacation they’ve lusted after for years, they ignore long-term
business goals in favor of temporary and immediate gratification. But
if you want to achieve your long-term business goals, recognize that
corporate credit and profits should only be leveraged to create greater
gains for your business. Instead of figuring out how much profit you can
take out of the business, seek ways to invest your corporate credit so that
it will deliver greater returns for your business. This is not, by any
means, a comprehensive list of all the mistakes entrepreneurs make when it
comes to building corporate credit. But if you address these costly and
dangerous errors, you will be on your way to building a safe, secure, and
financially sound business—the business you always dreamed of! Corporate
Credit Concepts shows entrepreneurs and business owners how to get at least
$30,000 – $100,000 and up – in cash to finance their businesses …while
bullet-proofing their assets, slashing their taxes, and safeguarding their
personal credit history and score. CCC’s groundbreaking, comprehensive
Credit Builder Program, is a proven, step-by-step program for separating
personal credit from corporate credit, building your corporate credit, and
obtaining cash lines of credit!
In addition to our Credit Builder Program,
you receive a top-secret list of the handful of lenders who offer cash
lines of credit without personal guarantee. The business-financing
experts at Corporate Credit Concepts have already helped hundreds of real
estate investors, stock and other investors and small business owners from a
wide variety of industries all over the United States qualify for the lines
of credit their businesses need. To learn more about The
© 2006 Corporate Credit Concepts All Rights Reserved