Now with all those accounts did you have to give a personal gaurentee. That is the thing were are getting at i now Fedex and lots of store cards you can get by with out the personal gaurentee. But when it comes to Visa, and Amex so on how is that personal gaurentee gotten around. Or have anyone out there been lucky enough to find and issuing company that does not require it. And to answer that las guys question you can check you Paydex by logging into DNB.com and enter your Dun's number and contact info
Guys, I just had to jump in here. Iâ??ve been â??self-employedâ? since I was in my late 20â??s. I have owned 6 or 7 C-corps, 3 S-corps and now own 2 Câ??s and 3 LLCâ??s. So I can comment with some personal knowledge on this subject. I just set up the last LLC in one day, my attorney charges $650 for the paperwork, I hand delivered the paperwork to the SCC in Virginia they got $100, I then got an EIN number in 10 minutes over the phone. Any good corporate attorney can get you set up for around the same. It is possible to do the paperwork yourself, but I find it well worth the money to pay $650 to get it right. My attorney charges $150/year as registered agent for the first corp and $100/year for each additional one. You have to file State and Federal tax returns each year and pay fees each year to maintain your company in good standing with your SCC. Can you get business credit? Yes, do the CC companies want a PG, yes and no? I just was approved for Amex Membership Rewards Card (with a PG) and an Amex LOC (no PG) â?? 45K total, but they did pull my personal EQ report. (Three times for the two accounts, twice by Amex and once by Amex Centurion Bank- they issue the LOCâ??s). Getting credit with a â??fakeâ? company (one that really doesnâ??t do anything) can be a great way to get debt off your personal credit report (that is legal and is easy to do with good credit scores), getting huge LOCâ??s and CC accounts with a â??fakeâ? company is harder. That advice to trade bogus credit information with your friends is illegal if you use that information to obtain credit under false pretenses. Creating false financial statements is not a good idea either, it can land you in jail if you get caught getting loans under false pretenses, it is called fraud. Getting a Lexus in a company name is a shitty idea if you canâ??t afford to pay for a Lexus. If you cheat and lie on applications they can "pierce the corporate veil" and you are personally liable PG or no PG. I think of this board as a place to help us get our finances in order and to correct past blemishes on our credit reports. I donâ??t know why anyone is advising people to get huge LOCâ??s on bogus companies, that is what got some of us in trouble in the first place. You CAN NOT borrow your way out of debt. You can us the business credit to raise your credit scores by hiding debt, which helps your debt to income ratio, but this whole idea is not the way to financial health. If anyone has 15K that they need to spend on some financial consulting call me and Iâ??ll save you 14 grand of that, go see a local attorney for less than a grand. JohnM <sighs, steps down from soapbox, and heads to executive restroom for two Tylenol>
John, I have legitamate businesses that I wish to setup.. I already have started an LLC and wish to have access to additional funds to help w/ cash flow.. I am doing import export. I also am planning on startin an LLC owned by a C Corp, and an LLC that is the general partner of several LP's with myself being the limited partner. In order to have these entities operate, I would also need cash flow and a way to for these entities to qualify for credit on their own.. What would you recommend in establishing them and getting higher paydex scores? What does the process involve? Also, do you have any attornies and/or tax specialists/CPAs you would recommend? If you would rather email me privately, please do.. my email is ender510@yahoo.com Thank you in advance..
None of the accounts I mentioned in my previous message required a PG. I am in the process of investigating corporate Discover, Diners Club and AmEx accounts; a business colleague said there may be an option to bypass the PG since my paydex is good and I have timely payments on the business accounts I have. I will post any positive information here as I obtain it. My objective for posting is to help someone else who may be in the same situation . . . on the rebound from personal and credit difficulties - but building a small business.
Westcap, I am curious what a "strong" corporate financial statement will look like. For example, we are a fledgeling corporation, (ok we are in the process of incorporating! which we were already doing before I read this fascinating thread....and while we have made decent money in the past, prior to this incorporation, we have yet to do taxes as a corporation. I am curious what lenders will view as a strong statement. Any hints?
Amex just requested a financial statement from CreditWorks and it's main officer, my sister, they also requested last years tax returns with schedules for both the Corp and the main officer. I am sure they are looking for a good Asset to liability ratio, I would think something along 2:1 would show a strong balance sheet. www.creditsense.com
Amy, I am in the restaurant consulting business, we deal with startup businesses everyday, banks want collateral and PGâ??s on loans to new businesses. Our clients have the most luck in obtaining funding from private leasing firms (sky high rates) who will only finance the â??hard equipmentâ? with UCC financing statements and sometimes vendor buy-back agreements. Banks are not in the business of being â??venture capitalistsâ?, what they want to see is capitalization. (cash, unencumbered real estate, etc), Banks wonâ??t see any small business startup with no track record, and no assets as a good risk ( I donâ??t care what anyone else tells you). I suggest you go to a local bank and ask to speak to one of their business banking specialists; they will give you an honest appraisal of what they consider a good risk and a "strong" financial ststement. I have seen clients obtain SBA financing if they have a decent track record (3 or 4 years), good profitability, good cash reserves, strong documentation, and good personal credit scores. Startup financing for a new business is best obtained in three ways, one from family and friends (if you canâ??t convince your Mom and Dad or Uncle Bob to invest, why do you expect the bank to give you money?), two from a venture capitalist (seek out local business investment clubs and make a pitch), or three by a public offering. I have seen new restaurant concepts put together by industry pros, sold and pushed by brokers raise 2 mil in startup capital, they also were in chapter 11 in under three years. You will notice I never mentioned banks, I did that for a reason they ARE the hardest place to get money on a new business, they will lend YOU money based on YOUR credit history, but by definition a new business has no credit history and they have nothing to CYA with when the stuff hits the fan. My business has been profitable for six years, has excellent credit with all our vendors, gets offers for corp CCâ??s in the mail every day, has maintained a checking account at the same bank for 10 years, but if I walked in and asked my bank for a100k unsecured LOC, I really donâ??t know if they would do it. If I asked for 300K to build a new building, or buy an existing one, I would be Ok, if we needed new equipment, I would be Ok, unsecured money is the hardest to get. Good luck with your new venture, and please donâ??t let this discourage you. JohnM
So were are back were i stated that you have to have a PG for Bank Cards ie Visa, Amex etc. What you said about them not wanting a personal gaurentee is crazy. Because if they pulled your personal credit report twice well then what do you think that was. My whole thing was there any company that issues bank cards with out the PG. I know all the store stuff you can get and alos Net-30 terms but i am talking Vias, Amex that kind of stuff. Everyone has beat around the bush giving there story about how they own a business and have this and that. But the basis of the question to all is have you ever seen any bank cards not require a PG. Because i have not.
Go back and read the post...I said yes and no...Yes they wanted a PG for the card and no PG for the LOC...Crazy or not I got the LOC without a PG. Was that short and sweet enough for you, or did I run my mouth again? And if you don't like my posts use the ignore button like I just did for you! JohnM ps speal chck is a wumdrful thing..but it doesnt stop the confusion between there (a place) and their (a person)...
Not a screaming match here no need for that. I was simple saying you said they did not need a PG for your LOC. Then you said they pulled two hard inquiers. So looks to me like they used your personal info. That is all i was saying. And if they used your personal info then that was not the basis of the question asked. So ignore that. Learn to read. R.I.F Reading is Fundamental. But since you can't i guess your not seeing this. Done with your argument
My apologies Iâ??m guilty of unnecessary rudeness. I can be too quick to hit the reply button sometimes. If you notice I edited my post, just after I posted it, to remove a certain part. You replied before I edited the post. I just overreacted to being called crazy Pulling the report is an apple, an act that Amex can do if I authorize it, to be used to evaluate my credit. A personal guarantee is an orange, an act only I can do by agreeing to be personally liable for a debt incurred in the corporate name. The cardholder agreement states I am personally liable for charges and the LOC docs were signed solely as a corporate officer. Bottom line a PG on the card and no PG on the LOC - JohnM
Ok if you say so. but look at what you said they look at your personal use that as a basis then your are free and clear because you signed as a corporate officer. Well that is ludchris because everyone know that a corporation is run and governed by people and once they can't hit the corp any more they go to the officers. Lets think about this because if the Worldcom ran it self then they could not aresst the officers. When legal issues com and contract are in queston they always go after the signer. So if you signed you are liable. Bottom line. Plus if you got an inquiry that means they pulled your fille. If there is no tradeline then that just means they are not reporting but they have your info for when they need. Best beleive if that LOC goes bust they are gonna tie that to you. This is just logic my friend. loka ta what you are saying. Ohh they pulled my credit and i signed but i have no responcibility to it. Can we get back to the basis of the disscussion.
OKâ?¦ Iâ??ll quit arguing with you. You don't have a clue about corporate law, the financial responsibilities of a corporate officer or the whole concept of â??piercing the corporate veilâ?, which is the only way one is liable for corporate debt without a PG. I have even gotten rid of IRS penalties by closing an assetless corporation, I was assessed the amount of the actual tax only and was personally responsible for the actual tax amount only ($15k vs $46k), JohnM PS I can't believe you had the audacity to suggest I enroll in Reading Is Fundamental. Are you a typical product of todayâ??s public school system? God help us! I donâ??t believe you could pass Ebonics 101. Here are just a few examples of your superior grasp of the English language: your = youâ??re there = their ludchris = ludicrous know = knows
Merely pulling hard inquiries is not necessarily the basis of getting a PG out of you. Lenders pull a hard inquiry for my husband each and every time his C Corp applies for a major biz loan (talking millions here), but it it always a "nonrecourse" loan, meaning he is not personally responsible for the debt load/repayment. It's just that for that kind of money, they want to know if he runs his business like he runs his personal credit. Then again it's backed by income-producing real estate. So to sum up: hard inquiry does not automatically equal PG.
I am done arguing, i have no time for this if you don't understand now that is ok life will teach you, continue to sign and think you are not responsible for what you signed for and the corp. Because if it were so then the corporate entity it self would sing and not an officer. Belly up a loan and see whom they come after. This useless conversation is done. The spelling mistakes came from fast typing and no proof reading. But i appreciate your ability to check my spelling you must be a very good secretary at all of your corporations you hold.
Thanks Hope we understand that. My whole thing was merely to say that at the end of the day if the corp can't repay. All they can do and what they will do is go after the signer. Being that corps are separate entityâ??s and take away a lot of responsibility from it officers it still does not exempt them. Being that a corp it self cannot sign and acknowledge anything. They tie it to a person. Now grant it there are plenty of loop holes. But once you drop your info down even if they only pull and never report f that loan goes belly they are looking for whom authorized it. That is all I was saying to the prior gentleman.
Understood. But there are situations where they cannot legally go after anyone, BUT the corp itself, as is the case I talked about with hubby's C Corp. Think about it; you don't think the president of AMR (American Airlines) personally guarantees the repayment for those $200,000,000/each airplanes, do ya!) That was tongue-in-cheek, but you see my point, I'm sure. You may well have to PG until your company has a track record lenders respect (like AMR). After all, if it were as easy as setting up a corporation, then getting loans without PG, everybody would do it. I know I would!!! And I know just the mink, diamonds, mansion, vacation, sailboat I'd spend it on too! (Unfortunately, so do our lenders dagnapit!)
Oh yeah, forgot to mention in the case of hubby: the loan documents specifically state that he is personally "not liable" for the debt. It's an orange.
Hope. Thanks; I always prefer oranges to apples when doing any corporate debt, as I am sure your husband does as well. JohnM
In translating your statement into English I think you meant: the corporate entity itself would sign and not an officer. Please correct me if I am wrong. Well, if the corporation had hands it would sign, but the law makes the officers the â??handsâ? of the corporation and allows us to sign for the entity, as an officer. When I sign as a corporate officer I sign as XXX, President of Mega XXX Corporation. As to your reference that I would make a good executive secretary at a corporation, I take that as a compliment; most executive assistants (as they now are called) are better spellers and writers than the useless old dinosaurs that serve as officers (myself included).
