Did you know?
There are many legal, ethical and moral ways to get your credit repaired. Almost everyone’s credit report has errors in it. And there are three reporting agencies (Equifax, Experian and Transunion) so you can imagine how many errors there could be on yours! Some are technical errors, some bad debts that are old enough they should be removed, and some very good credit repair companies can negotiate to get your bad credit mark reversed with just a commitment to start paying a little bit every month.
Bottom line is--there are solutions to any problem.
Adding yourself to other people’s good credit is one way to add positive marks on your report. Moms and Dads do it all the time for their kids to help build up their credit report.
Some items can come off quickly, some things may take months, if ever. It depends on the repair company you use. Some operate unethically and there are many credit repair dimwits out there. Everyone and their mother thinks they can do credit repair. Stay away from promises too good to be true. We have spent thousands of hours researching, testing, monitoring and studying these companies to find the best company for any particular situation.
It’s illegal for credit companies to charge you upfront and not disclose the costs to you, or not give you a 3-day right to cancel, or not explain the services they’re offering including how long it will take and your legal rights! Make sure they deliver what they promise and put it in writing! Then, make sure THEY sign it.
Millionaire Mentor University does not do credit repair. However, we have strong contacts who are able to achieve amazing results quickly.
Your signature is worth millions. Other peoples’ signatures that you can use are worth millions. The money is in the signature.
If you keep on doing the same old thing, you will keep on getting the same old results.
An aged corporation puts you in the position to obtain millions of dollars in vendor credit. If you want to sell peanuts on the corner, there is a vendor that will give you bags of peanuts without using any of your own money. Use the aged corp AAA credit rating. Then you can save your cash lines of credit for the really important opportunities that come along.
This same AAA plus aged corporation credit rating can be used for obtaining millions of dollar in equipment financing. If you need 20 pieces of restaurant equipment you can get it, without using any of your lines of credit. In other words, you won’t need to tap into your cash lines of credit. Use the corporation to get your equipment. Again, save your cash lines of business credit for more important opportunities that provide larger income opportunities.
What if someone offers you a great deal on a $100,000 property for $60,000 because they can’t afford the payment anymore and they want to walk away with some equity instead of the bank taking it back and getting nothing. Get it?
Benefits of a Pre-Established Corporation
We work with Aged Corporation Experts. They have located AGED Corporations that have already been active and have a legitimate history. Think of it as buying the local restaurant, bar, dry cleaner, factory, or retail shop! You’re buying someone else's company name, goodwill, experience, and track record.
This is the only aged corporation you should buy. Buying an aged corporation vs. a shelf corporation is like night and day. A shelf corporation actually hasn’t done any business over the years of its startup. It's merely what it is called: a "Shelf" or "Shell" company. It has been sitting on a shelf collecting dust. It has aged, but has no history behind it other than the age.
They still have many benefits, but are not nearly as effective in obtaining funding.
By owning a pre-established corporate entity, you are able to take advantage of the following benefits:
1. Instant availability & fast delivery
2. Show longevity of company filing
3. Immediately own a company with a filing history
4. Ready for immediate transfer as no stock are currently issued
5. Help when applying for contracts, credit and financing
Aged Corps vs Shelf Corps
- Business History - You get a company with already established history.
- Credibility - A company with a history is more likely to be selected as a business partner and have more credibility with lenders and suppliers
- Business Image - Business image always improves with the age of your company.
- Bank Loans - Banks look favorably upon your company if it has a clean history.
- Contracts - Bids on contracts often require a company to be of a minimum age.
- Government tenders - Some government contracts are only available to companies that have been in operation for a certain number of years
- Creditworthiness - Business credit and financing is easier to obtain for older companies.
- Faster Launch - Your company is ready to go if you need to begin your business quickly. You can avoid the hassle of registering your new business from the beginning.
- Client Acquisition - Clients trust a company that has been in business for a number of years.
- Trade Credit - It is easier to obtain trade credit from your suppliers when you can show that you have been in business for a number of years.
- Prestige - Usually, the older the company, the higher its standing in the business community
- There are four reasons to obtain an aged corporation
- Assist in the building of corporate credit
- Convenience in start-up
- Enhance the marketing campaign
- Build customer confidence in the business
FATAL BUSINESS ERRORS of Business Credit & Some of the Benefits:
What are the real benefits of an aged shelf corporation and how should they be used (beside the fact that businesses and people will take you more seriously)…..
Establish Immediate Corporate History
Atlantic Financial Services LLC Currently has a list of “pre-filed” shelf companies that you can acquire. By owning a pre-established corporate identity, you are able to take advantage of the following benefits:
Instant availability & fast delivery.
Immediately own a company with a corporate history.
- Show longevity and enhance your image with customers and lenders.
- Easier to obtain business credit cards and business credit lines.
- Often, lenders require a business to have been in existence from two to 4 years or more before lending it money.
- Ability to borrow money from banks.
- Ability to secure bids on contracts. Many agencies will only sign contracts with a business that has been in business for at least two years.
If you purchase an aged shelf corporation with the intent to obtain financing and credit you can improve your chances of an approval with some trade credit vendors. These are Tier 1 and Tier 2 type credit grantors. They offer trade credit and in some cases require a business be around for 2-4 years before they grant credit.
The only check they do is to verify the Secretary of State website to see that the entity has been around that long before granting credit. If you have an aged shelf corporation, you will likely get approvals from these companies. There are no laws you are breaking because you are not falsifying your income or anything else.
Some credit grantors will just pull a D&B report to verify your age of business and credit worthiness in order to decide to grant a credit approval. If D&B does an investigation on your entity, they will ask for the date a business license was first granted. If the license you have is from last month D&B will change your start date to last month, not two years’ prior which is what your corporate entity paperwork says.
The biggest advantage with an aged shelf corporation comes two years after you purchase the company or if you already have a company that has been in existence for two years. If you just started the company, you can purchase an aged shelf corporation that is two years old and in two years you have a four-year-old company with two years’ financial statements. That is VERY strong. If you already have a sole-proprietorship or partnership that has been around for three years you can merge the two and now have a corporate entity with two years of incorporation history and 2 years of financial statements, that too is VERY strong when it comes to applying for financing.
By having an aged corporation you don’t automatically increase your chances of getting financing. There are several factors and requirements. So don’t get sucked in to some sales pitch telling you how wonderful a shelf corporation will be for you.
In addition, don’t buy an aged shelf corporation with credit already established in hopes to get bigger lines of credit. Once a business owner buys the entity and then changes the officer list, the phone line and address to their location they need to report this information to the vendors and credit bureaus.
Many of the credit bureaus will notice everything has changed with the company including ownership and in most cases I have seen, the bureau deletes the business credit profile and says it’s under new ownership so they are deleting all previous history. Obviously they shouldn’t do this because it is a separate legal entity from the owners, however there are no laws protecting the small business owner from the business credit bureaus so they do whatever they want.
THE 10 BIGGEST MISTAKES BUSINESS OWNERS MAKE WHEN APPLYING FOR BUSINESS CREDIT: World Class advice from one of our Corporation Mentors
As you read the information we have outlined below keep the following in mind. When you are finished reading this you will be armed with more business loan knowledge than 97% of all business owners. We do advise caution however, there is much more to the loan process than we will outline. If you make any mistake(s) in laying the necessary initial groundwork and/or your advance loan application preparations, most likely your loan application will be rejected.
Not only will you not be funded initially, but you and your company will remain "flagged" in the banking system computers for up to 24 months. Any future loan applications to most banks will be rejected and you will not be given any explanation for the turn down.
As you review these 10 Biggest Mistakes please consider another very important fact. Information can only be useful when it is used. " The four stages a person goes through when learning any new information, such as The 10 Biggest Mistakes Business Owners Make When Applying for Business Credit that I am about to reveal to you are:
- Unconscious incompetence-this is the stage where you don't know that you don't know;
- Conscious incompetence- this is the stage that you know you don't know;
- Conscious competence- this is when you know that you know, but you have to consciously think about it;
- Unconscious competence- this is when it is second nature; this is when the information is part of you; this is when you know it just as easily as you know your own name; this is when it is fully internalized and it becomes automatic.
When you first read and digest the "10 Biggest Mistakes" and afterward, learn the step-by-step business loan application process that we will outline and teach you, you will go through the first three stages. When you become engaged, and go through the process step-by-step with us, over a period of time you will reach level four.
The 10 Biggest Mistakes Business Owners Make When Applying for Business Credit
- Not being incorporated. Did you know that banks historically make faster decisions and grant larger loan amounts to businesses that are incorporated? It's true. Many small business owners operate their day to day business under a d.b.a. or "doing business as." While this is a fast and simple filing with your local county recorder, lenders consider businesses operating under this structure as "small.'' Not only does this limit the amount of funding but operating under a DBA is filled with perils. Enough said.
- Corporation is too new. Did you know that your loan application will most probably be denied unless your corporation is at least three (3) years old? It's true. A new corporation signals the bank "no experience." While I've heard of businesses being approved for small $5,000.00 business credit cards on occasion I've heard many more sad and sorry tales of business loan applicants being handed their hat and a rejection notice. We advise our clients to purchase a seasoned corporation that is at least three (3) plus years old. We have corporations available for immediate delivery that can fill most needs.
- Corporation is suspended. Verify your corporation is in good standing with the Secretary of State and is not nor has it been suspended for longer than 6 months. Make certain your Registered Agent fees and your State Franchise Tax fees if any, are paid and are in good standing. Your potential lender(s) will verify the status of your corporation right out of the gate and if your status is right? They will immediately reject your loan applications.
- Corporation not registered in your state to do business. Regardless of the state of incorporation you must register your corporation with your Secretary of State. It’s easy and fast and it must be done prior to submitting your loan applications.
- No brick and mortar business address. So many first time business loan applicants make this mistake. You must have a physical business address in an established business district. Bank computer programs can immediately identify residential address districts and flags your application. When you apply for a business loan and use your home address also as your business address it sends the lender a ”small business" signal. Home business equates to a "small time operator here" which will get you a fast loan rejection or best case scenario? A small loan usually under $50,000.00.
- No business telephone number. Not having a 411 directory assistance listed business telephone number is one of the biggest mistakes people make when applying for a business loan. If your business is legitimate and you want to get qualified for a business loan. Make the investment in a Monday through Friday 9-5 live answered business telephone. That means no dogs barking, televisions playing and/or babies crying in the background.
- No business website. Today one of the new lending guidelines requires the lending underwriter to verify the business applicant has a website. It should be no less than 3 pages with 5 pages preferred and the information on this website must be accurate, it must be up to date and all the page links must work.
- No Dunn and Bradstreet file. When you apply for a bank or traditional line of credit or almost any vendor credit for that matter, your potential will check your company payment history with Dunn & Bradstreet. Screw the guys who try to sell you their paid trade lines, or want to add anything that you know (and don’t get cute here, you know who you are and you’ll only hurt yourself trying to take this short cut) is fishy. Contrary to popular opinion, you do not need a Paydex score to get your company funded. You do need an updated legitimate Dunn & Bradstreet business credit profile. You’ve got to get this right or you’re wasting your time and money applying for business funding.
- No Credit Qualified Officer(s) on Company Board of Directors. We can’t emphasize this enough. If you want real money, loans and/or lines of credit? Someone on your corporation Board of Directors must be able to demonstrate financial responsibility to the lender(s). These loan officers know the game better than you or I and they know a company is only as good as the person(s) who are steering it. All lenders want to see someone on your board of directors who has a mid-fico score of at least 700.
- This person must also be ready willing and able to personally guarantee any loan(s) made to their company for at least the first twelve (12) months. In addition to their personal credit score there are several other factors like their personal debt to credit ratio, the depth of the report, type of credit lines reporting and length of credit history. We can tell you quickly if you or your potential credit partner is qualified? If not we have very well qualified CFO/Director candidates who will sit on your Board of Directors for a negotiated percentage and help your company obtain funding.
Our aged and bank seasoned corporations are expertly engineered to exceed all regional and national underwriting requirements. With corporate clients receiving millions of dollars in business loans each year we are very familiar with the pitfalls, the false alarms, and the “fools gold” in our specific discipline and don’t make mistakes. Our staff is comprised of professionals who are experts at building corporate structures for the sole purpose of establishing credibility, stability and ultimately very significant funding. If you’re tired of wasting time and money and want to get your business funded fast!
ADD AN AUTHORIZED USER
Adding an authorized user is a GREAT way to improve your credit score. It can increase your chances to get higher funding, qualify for a house, an auto loan or whatever your credit goal is. So, what exactly is an "Authorized User?"
An Authorized User is someone who holds a credit line but is not the actual primary account holder. Here's an example:
Say you are married and you own a credit card with a $10,000 limit with a $500 balance. You add your wife with no credit history as an "Authorized User" with your credit card company so she can use your credit card. Now your past credit card history will show up on her credit as well just as it is on yours.
How can the authorized user improve my credit?
Well, in the above example, the wife didn't have much credit at all but her goal is to try to qualify for loans or credit cards in the future on her own.
Here's a quick demonstration to show the difference that good credit makes.
It is the difference between getting approved to start a business of your dreams or struggling to pay things in cash because of your bad credit decisions.
It's a hard truth but those who have great credit get the best deals in life and take advantage of our credit system while the credit poor do not.
They get to use leverage of their credit to get approved for a house, a business and saving thousands on interest.
Here's a graph to show the difference someone who has a basic 599 credit scores compared to someone that has a 730 credit score and the difference they will pay in interest.