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GenCredit.com: Corporate/Business Credit

Business Consulting Services

As the owner of a new or existing business one of your biggest challenges will be how to finance your business operations.  According to the Harvard Business Press, the single most significant factor in business failures in the United States is undercapitalization.  Without adequate funding, businesses are unable to purchase needed equipment and supplies, hire adequate personnel, retain necessary suppliers of materials and services, weather unexpected variations in cash flow, take advantage of new opportunities, or properly promote and advertise the company’s products and services. 
                           
Many business owners believe their only means of covering these expenses are their own personal assets, personal lines of credit or the influx of secondary investment capital.  These business owners fail to see the tremendous opportunity and value that comes from developing independent business credit.

Establishing Independent Business Credit

Establishing credit in the name of your Corporation or Limited Liability Company is a crucial step in its development. Building a Business Credit profile is very different from your personal or “Consumer Credit” because it is based on credit granted directly to your company by financial institutions and vendors, and not based or guaranteed in any way on your personal credit. The various reporting agencies use differing methods to measure your company’s “credit worthiness” but they all essentially report on the two basic premises:  First, how timely has your company paid its debts in the past?  And second, is your company financially sound enough to re-pay its debts? It is essential to establish a Business Credit Profile so that you can secure operating lines of credit and other types of loans from financial institutions. These institutions prefer to work with companies that have a proven track record of payment, and the ability to re-pay future debts. This also holds true for potential vendors and suppliers: the vast majority will examine your company's credit before extending credit to you. Acquiring or leasing property for your business is another area where it is essential to build a business credit profile.  Having an established corporation or company credit profile will not only allow you to purchase or lease commercial real estate but enable you to negotiate the most favorable terms and rates, which mean reduced costs, lower interest rates and money saved!

 

Benefits of Separate Credit

Some of the benefits of establishing a separate credit profile for your business include:

  • the ability to establish credit-based relationships with vendors or suppliers,
  • readily acquire real estate loans,
  • obtain automobile loans or leases,
  • establish operating lines of credit from banks not based on your personal credit or guaranty,

All of these debts and liabilities are acquired by the corporation or business and are legally separate from its owner(s). This is especially beneficial if you have a less than pristine credit history. Once business credit is established and maintained, the loans or extension of credit is based on the merits of the company’s credit profile, with no personal guarantees necessary. So long as the assets purchased fall within the proper guidelines, and careful steps are taken to ensure that they are acquired and used in the proper manner, the acquisition of such assets is well within the reach of a business with a good credit standing.

 

Risk Management

Establishing a separate Business Credit profile will also reduce your personal risk and ensure that you maintain legal right to limited liability. This separation is essential for a few reasons. First and foremost, it helps to limit your personal liability by ensuring that no company funds (nor debts) are co-mingled with personal funds. If the company credit profile is managed properly, it is very difficult for creditors to “pierce the veil” when it comes to pursuing the company’s outstanding debts. By maintaining the integrity of your company’s separate legal entity status, you will ensure your protection from any direct or personal liability. This has a massive impact on personal assets as they are effectively shielded because the debts and liabilities were incurred by the corporation, not an individual. The very tenet of establishing a corporation or limited liability company is to separate the owner(s) from risk and mitigating liability. Using your own credit profile will negate the legal separate entity status of your company, thereby opening you up personally to any lawsuits aimed at your company. Much like the co-mingling of funds, using your personal credit profile or personal assets to guarantee loans will make you fair game for potential collections or liability suits from banks and various other creditors. This also holds true for tax or regulatory agencies; any type of personal loan guarantees on behalf of a corporation or limited liability company for company debt or credit will be seen as an abandonment of the legal limitation on your personal liability, thus creating serious tax implications that can directly impact your wallet.

 

Building Business Credit

Business credit can take many forms, and deciding which form of credit works best for your company is critical to the successful utilization of that credit, and the continued positive growth of your company’s credit profile. Unless a knowledgeable professional assists with building your business credit, it is usually very difficult for a start-up business or even an existing company to be granted credit on its own merits.  Loans and other lines of credit typically require personal guarantees by the business owner, with his/her personal credit profile and rating used to determine the amount of credit available. It can then take years of successful transactions and reporting to the various business credit reporting agencies for a company to grow it’s credit and obtain the benefits that can be derived from the innumerable business loans and operating lines of credit that are available to companies with strong business credit profiles.

Genesis Consulting Services Inc., (hereinafter “Genesis”), offers vital, professional assistance with the establishment and development of your business credit profile, and we can dramatically shorten the amount of time necessary to establish an excellent credit profile. We offer proven results -- You can establish true business credit, quickly, easily and with a 100% money back guarantee!

Within 6 to 12 months, Genesis will help you to:

  • Establish a Dun and Bradstreet Business Profile with a Paydex score of 80+
  • Establish a Business Profile with Experian Business Credit;
  • Obtain Corporate Credit Cards (Visa, American Express, MasterCard) with $15,000 to $30,000 limits;
  • Establish Bank Business Lines of Credit for up to $300,000;
  • Establish Trade Credit Accounts of at least $100,000; and
  • Establish a Minimum of Four Retail Lines of Credit with Limits of $10,000 each.

Each of these profiles and accounts will be tailor made to your specific needs.  Our goal is to provide each client with a Business Credit Profile and the exact accounts that EVERY BUSINESS OWNER NEEDS TO BE SUCCESSFUL!  With a credit package like this, success will be yours for the making.

The following table provides an overview of the business and retail accounts that Genesis can help you to establish.  Please note that the credit limits are based on numerous factors including: the age of the company, the number and extent of all reports submitted to reporting agencies and general credit worthiness of the company. The credit limits indicated below are averages for sit to ten year old companies with Paydex scores of 80+.

 

Account Type

Corporate Account with your Choice of:

Credit Limit

Personal Guarantor

Computer Services

IBM, DELL, or Apple

$20,000 to $30,000

No. (100% Corporate)

Office Services

OFFICE DEPOT, STAPLES, or OFFICE MAX

$10,000 to $15,000

No. (100% Corporate)

Home Services/Misc

HOME DEPOT, LOWE’S, or SAMS

$10,000 to $15,000

No. (100% Corporate)

Wireless

VERIZON, NEXTEL, or T-MOBILE

Unlimited Lines

No. (100% Corporate)

Hotel

HILTON, SHERATON, or HOLIDAY INN

$10,000 PLUS

No. (100% Corporate)

Gas

CITGO, EXXON/MOBILE, or CHEVRON

No. Pre-Set Limit

No. (100% Corporate)

Shipping

FED EXPRESS/KINKO’S, UPS, or DHL

No. Pre-Set Limit

No. (100% Corporate)

Automotive

FORD MOTORS, or GMAC (Vehicle Lease)

$75,000 to $100,000

No. (100% Corporate)

Transportation

HERTZ, BUDGET, or ENTERPRISE RENT-A-CAR

Up to $10,000 Month

No. (100% Corporate)

Airline

 

American, Continental, or Delta

Up to $10,000 Month

No. (100% Corporate)

Electronic

BEST BUY, or CIRCUIT CITY

$15,000 to $20,000

No. (100%  Corporate)