Fast Business Credit Secrets

The U.S. real estate market is still down from the highs of 2007. There is a flood of real estate investors buying up properties all over to grow their real estate business. Especially in Las Vegas, over 54% of the homes under $200K were all cash deals, and by investors (many of those are foreign investors). If you have the cash to invest, that is ideal, most do not. Many will turn to alternative ways to gain the capital to accumulate “cheap” real estate for future growth. If you have a wealthy family member or friend who will loan you the money, that is wonderful, but not realist for most. You are not going to get a bank loan to buy real estate unless you typically have 20% or more down. We are not going to discuss FHA or other types of financing. In this article, we will focus on using business credit, especially vendor credit, to help preserve your cash flow, if you are looking to buy, fix up and rent out houses and increase your cash flow while hopefully benefiting from long term appreciation. I realize there is still a lot of uncertainty with real estate prices in the short term and I am not suggesting this is a good time or bad to invest. I will share with you how you can use business credit, specifically, vendor credit to your advantage if you are looking to either flip houses, buy, fix them up and sell or to buy, fix up and rent them out.

If you are doing any type of repairs, remodeling or hiring someone or a contractor to do that for you cash flow will be critical. You do NOT want to pay cash for all the repairs, materials…when you can use vendor credit.

First, let’s review the basics. After you form your LLC, the business credit bureaus automatically start building a profile on your company, without your permission by the way. The key is to make sure your entity is in compliance as that is happening automatically that means things like making sure all your addresses match in all your filings from the secretary of state to the local business license. Next, you must properly build the business credit profit with the big three, that is Corporate Experian®, Corporate Equifax® and Dun & Bradstreet®. D&B you have to pay a fee to start the business credit building process to get vendors to report. The other two, Corporate Experian® and Corporate Equifax® they can be built as your vendors report. You can check out how you are currently doing to see if any vendors are reporting on your entity for free. Go to and and type in your business name, city, state and zip and find out how many vendors are reporting. If you have two or less that is not good.

Here is the big problem; there are over 50,000 vendors that will grant you credit, but less than 10% report to the business credit bureaus. How does this effect your ability to get vendor credit to help you with your real estate business? The main vendors that come into play when you think of vendors to help you with building supplies is Home Depot® and Lowes®. I am a big Home Depot® fan. Both these vendors will grant you credit for your entity. The credit will be in the name of the entity under the EIN number and the debt will NOT show up in your personal credit bureau. The big question is will you have to provide a personal guarantee to apply for these vendor credit lines to help you with your cash flow as you are improving real estate to either flip or rent out. The answer is yes. Is a personal guarantee all that bad? Your goal is to avoid them. If your business does not go well and you are unable to pay the vendors and you have a personal guarantee that means they can come after your personal assets.

Both Home Depot® and Lowes® require you to be in business for three years before they will offer you a vendor line of credit with NO personal guarantee. What does be in business for three years mean? They look at the incorporation date in the secretary of state’s records to determine your business start date. Does that mean a 3 year old shelf corporation would help? This is a corporation that was filed and sat on the shelf for the express purpose to help you obtain vendor credit after. In this case, if your entity is not already three years old, this may be something to consider. In most, cases, this will only help you with vendor credit, not cash lines of credit.

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Building business credit is a MUST in today’s economic environment. Do not get thrown off by the term “credit” and think of debt only. Business credit is very different than personal credit. The reality is that most businesses are off on their sales projections and underestimate their business expenses. A double whammy that leads to a problem quickly. Developing a cushion in your cash flow is key to business success. There are many other reasons other than just supporting your cash flow. Those reasons include:

  1. Separating your personal and business credit. If you have strong personal credit you want to minimize any damage caused by business to your personal credit. If you have bad personal credit this is an opportunity to build business credit.
  2. The creditability and fundability of your business. Building business credit is just like being 17 again with no personal credit and receiving your first MasterCard® with a $500 limit. You will use and build credit to access more. The key is to manage credit. Banks are now looking to how many vendors do you have reporting as a key barometer to determine if they should lend to you.
  3. Does your business look financially naked? If someone checks your company out in the business credit bureaus, two of them you can check for free, Corporate Experian® and Corporate Equifax® (go to and How many vendors are reporting on your business? Two or less sends a message that you may not be very stable. Sounds easy? Well, only about 10% of all the vendors that grant credit report to business credit bureaus.
  4. A business credit profile is being built on your company without your knowledge. Yes, that is correct. The business credit bureaus reach out to the secretary of states to pull information on the newly formed entity. It really makes sense to make sure the business credit files are built accurately because they are a lot harder to update then personal credit.
  5. Helping your business gain access to more cash lines of credit after a strong business credit bureau has been developed.

Let me share with you the 5 simple steps to build business credit.

 Step 1: Incorporate and establish a business credit card or debit card or secure credit card. The incorporating part is easy because we have done that for you. When you opened a bank account you should have received your business debit card. You may not have applied for a business credit card. The benefit of that is the debt will be linked to the EIN number of the LLC, not to your personal SSN. Even though the business credit card is personal guaranteed, the debt will not show up in your personal credit bureau which is huge. You need to know the banks criteria before you apply. Ask them what your personal credit score has to be and what personal credit bureau they pull your score from. Find out what your personal revolving debt levels need to be? If you have any major deragatories like a BK or foreclosure you will be automatically rejected by the banks. Finally, some banks will require that you are in business for one or two years before they will let you apply for a business credit card! I know that sounds crazy. It is 95% based upon you person credit score anyway. You may want to show around and ask different banks what the options may be. Not all banks require you to open a bank account to apply for a business credit card. Here is another resource for many different types of business credit cards:

Step 2. Build the business credit profiles in the business credit bureaus. Dun & Bradstreet® requires you to pay their fee to build your profile. The fee starts at $39.00 per month.  Caution: You must make sure your entity is in compliance before you build the profile. That includes have a separate business phone number, a 411 listing, a business license, a real email (not a free one) and list of officers/managers filed with the Secretary of State’s office. Everything to prove the entity is a separate legal operating business. If you make an error in the compliance area and the file is built, the entity may be “red flagged” and very difficult to switch. Corporate Experian® and Corporate Equifax® are built when vendors start reporting.

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In order to be successful at your business it is important to develop funding options and not use all your own money. After all, every successful business never only uses their own money to grow their business. It is very important to understand the business credit profile of your business with the three business credit bureaus, Dun & Bradstreet®, Corporate Experian® and Corporate Equifax®. That puts your business in a position to access more funding. The best part is you do not have to do this on your own and make mistakes.  Fast Business Credit has programs to help you with the process. Here are your options and what to expect depending upon the stage of your business operations.

 Stage 1:  Start-Up to First Year

As a new start up business, your funding options may be limited. As a new start-up, your company does not have any business revenue yet. If your personal credit score is strong (over 700) and your revolving debt is below 50% some banks may give you a business credit card in the name of the business under the EIN number. That is important because the debt will not show up under your personal credit. This will help protect your personal credit score. This is important because your personal credit score will come into play with many types of funding options for your business which we will cover shortly.

A popular area for a start-up is the topic of crowd funding.  Here is a short review and some options for your business.

Crowd funding describes a collective cooperation, attention and trust by people who network and pool their money and other resources together, usually via the internet, to support efforts initiated by other people or organizations.

There are different types of crowd funding:

  1. Pier to pier. In this situation you will post your project and people from the community who like your project will lend you the money unsecured. One factor affecting the amount of money youreceive is your personal credit score. This money you do have to pay back. One such site will allow you to fund up to $25,000, will allow up to $35,000. Interest rates at the are lower than a traditional bank. It is also a place to receive a personal loan.
  2. Project site. These crowd funding options has you select your project in which you need funding. You are asking the community to donate money. You do NOT have to pay them back. You do have to provide them with a reward or something of value. This might be one of your products once they are developed. The site will take a percentage of your funding. is one that is very popular and is another one that is more flexible with the type of projects and is an international funding platform.
  3. Investor site. This is a site where investors (they must be accredited) will fund great ideas. You can pay a $100 fee and submit your business plan. is a top site in this group.

Here are some other funding options available to a start-up:

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Now that you’ve decided to start a business, you’ll want to take a positive step and form an LLC to protect your personal assets. Forming an LLC and starting your business off with a strong foundation (vs. a sole proprietorship) will be one of the most important decisions you will make when establishing a business entity.

If you’re in the beginning stages of forming your company, conduct some research about individual business structures and the pros and cons of each entity. An LLC is often the best option for small business owners. Do it right, and you’ll build the foundation for a successful business. Go about it the wrong way, and your LLC can cost you time, money, and most importantly, your livelihood.

Here are 6 common mistakes to avoid when forming your Limited Liability Company:

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Does your business need CAPITAL or CREDITABILITY? Or maybe both.

Go here now for a special training with flexible registration times here:

I don’t have to tell you that banking, financing and lending has changed dramatically over the last 12 months.

Did you know that the business credit bureaus have the power (without your knowledge) to evaluate your business which can lead to JV success or failure? Much less determine your ability to secure future financing?

To win any business credit game you must know the rules of the game.

I will be conducting my most updated webinar to share with you EXACTLY how your business may qualify for lines of credit, credit cards, equipment financing, working capital to grow (and all the stuff -really crap- that does not work-and there is a lot of it out there).

Are you getting other companies to promote your business? Are you losing bids, jobs and clients?  Did you consider the following may be a major reason for that…

How does your business appears to other JV partners? Does your business appear CREDITABLE or FINANCIALLY NAKED?

Most business I have found, even if they have been in business for 5,7, 10 years or longer, are still FINANCIALLY NAKED according to the business credit bureaus.

On this newly updated webinar, I will give you the resources, solutions and what is possible for your business (no magic dust here) just straight facts!

You can check out the details and flexible registration times here:
Even if you business is doing very well…the time to build your credibility with larger companies and organizations is when things are going well…not when it is too late.

If your business has suffered or is barely hanging on, understanding what your options REALLY ARE…not the B.S. claims all over the internet… is the best option to help you move forward.
Register your seat now at (there are a few days and times to choose from):

Dedicated to Your Success,

Scott Letourneau

Nevada Corporate Planners, Inc.
Fast Start to Profits™!

7477 W. Lake Mead Blvd. Ste. 170
Las Vegas, NV 89128
(888)627-7007; (702)367-7373
(702)367-7373   Ext. 1103
Fax: 702-220-6444