Does your Business have the Proper Lines of Trade Credit and Cash Lines Established? Are You Losing Business Because of a Weak (or no) Business Credit Profile?
One of the main reasons you incorporated or formed an LLC was to separate your business assets from your personal assets.
This will help you limit your liability and have a better marketing advantage when it comes to joint ventures (the fastest way to grow your business, especially host-beneficiary relationships).
The key is to separate for success. The biggest mistake we see is many entrepreneurs invest all their money to separate their personal and business assets but NEVER separate their personal and business credit (at least not properly).
4 Critical Reasons to Separate Business Credit (in your entity) from Your Personal Credit:
1. It is how your business will be evaluated for business and joint ventures. You may be losing clients, bids, vendors, and joint ventures without even knowing about it. Why?
The best way to check out a company’s financials is to invest $60 $150 with Dun and Bradstreet® to pull a report. This will tell you everything you need to know about someone’s business.
Most of you will NOT like what you will see on a joint venture company or key vendor report. FYI, an 80 Paydex score will not cut it.
In fact, I would strongly recommend you pull a report on your own company. Go to DnBCredit Report for the options.
You may be shocked as to what you see (or don’t see)! How do You Feel Standing Financially Naked in Front of Your Customers?
Now it may be time to fix that and put your “financial clothes” on.
Look at it this way; how does someone check out your company and what you say about it? Does your story add up? Can someone call the bank to pull your last three months of bank statements? No, that will not happen.
Can someone call the IRS and ask to see your last three years’ tax returns to see if the numbers add up to the “story” you are painting about your successful company? Absolutely not.
The best option that one can do to “check you out” is to invest the $60-$150 at D&B® and pull a report on your company. Company’s right this very minute are losing millions in revenues because JV partners, clients, vendors, and potential customers are deciding NOT to do business because of a very weak looking D&B® report.
Now your business should have a strong business credit profile with Corporate Experian® and Business Equifax® in addition to D&B®.
It is not only about separating your personal and business credit and securing access to more vendors and cash lines of credit. This is vital to any business success.
2. Whether you like it or not, Corporate Experian® is NOW creating profiles on companies through the SOS’s database on new filings.
This means a profile is being created, and you do not know what it will say to your potential customers (unless you know how to develop it properly).
3. Develop vendor lines of credit to protect your cash flow AND put your business in a better position to secure CASH LINES of credit to grow your business.
As you know, the banks have dramatically raised the bar on what is required to secure a bank line of credit. One key component is the amount of vendor credit granted to your business-not just an 80 Paydex score.
4. You will protect your personal credit (whether it is good or bad) from your new business.
If your personal credit is strong, you will want to minimize personal guarantees with vendors that may jeopardize your personal credit plus develop cash lines of credit in the name of the entity under the EIN (yes, it is personally guaranteed, but the debt will not show up in your personal credit bureaus-which will help protect your personal credit score.
If you have a bad personal credit score, you MUST develop your business credit profile to put the business in a position to qualify for credit independently.
The Biggest Mistake?
Waiting to develop your business credit profile until you need the vendor or cash lines of credit. If your business is doing well and you feel you do NOT need the credit, that is the best time to develop it.
Take these four steps, and make sure your business is not financially naked!
Perhaps, your dream for your new business is to provide quality services to your clients and make a difference in your marketplace. You’re no doubt excited, yet maybe feeling a bit overwhelmed.
You may have the ability to start a successful business yet may not handle the key strategies to get you there quickly.
If anything rings true here, I know how you feel. I was there six years ago when I started FAST BUSINESS CREDIT.
I was on a mission to provide top-quality service for those who wanted to incorporate in Nevada. I considered it my duty to dispel the misinformation that was so prevalent back then (and still is) about this valuable yet misunderstood strategy.
Believe me, I know what it’s like to be an entrepreneur. Over the last eleven years, I have invested enormous money with many top professionals to ensure conscientious, accurate service for our clients, including fees paid to Deloitte and Touche, multiple law firms, and other professionals.
I have personally worked many 70-90 hours, seven days a week. I have made (and learned from) every mistake in the book along the way, especially in the HR and employee areas.
First, The Harsh Reality…
Here is some background of the uphill battle the small business owner’s face when it comes to getting capital and what some of the options are, and some of their difficulties.
Local, regional, and national banks had one-page application loans, where they lend between $5,000 and $100,000 unsecured loans to businesses. It was based on their credit score.
That product that was available 3 to 6 months ago up until it basically disappeared. Also, credit scores on the principal owner were approximately 680 credit score. That credit score has gone to 720, 730.
Even with Help from the Government Banks Still Have Problems!
Now instead of looking at the individual, the banks are also looking at the person’s business.
It’s virtually impossible to get a small business loan in this environment now because the banks themselves don’t have the liquidity to advance this money to the merchant, and they’re finding reasons not to give loans.
The key is to focus on the strategy behind the secret, so you are in a better position to ask better questions for your bank or financial professionals.
You will now be armed with better information and a structure to ask important questions about what has to happen for your business to be in the best position to gain the most cash and capital.
Plus, you are likely to receive different opinions on certain approaches and criteria.
Successful people look for what works and move forward….unsuccessful people look for one part or piece of information not to be accurate or off with current standards and therefore disregard the rest of the information. Don’t fall into that trap. That can be a costly mistake.
Rest assured, when you choose NCP for your entity formation, you’re putting yourself in the hands of a full service company that cares about the entire you—personally and business-wise!
All of us at Nevada Corporate Planners are looking forward to the opportunity to help add even more value to your business, your clients, and your associates!
I’m sure we all agree that we operate in an extremely competitive marketplace. As a business owner, I know that like us, you’re constantly searching for the edge that will separate you from your competition.
That doesn’t mean that you must endlessly recreate the wheel. It does mean that you need a value-enhanced strategy that optimizes and preserves your past efforts, while moving you forward to the next level.
Go to www.nvinc.com/StrategicAlliance and hear an audio overview by our CEO, Scott Letourneau, on two programs (teleseminars/webinars) that can be used to help your business grow!!!
That means that the lifetime value of your client is a paramount consideration in your business’ strategy. Properly guided, your investment in obtaining that client can and should compound over the time they remain with you — the longer they continue as your client, the more valuable the relationship.
But how do you constantly come up with new, innovative ways to secure their loyalty without straining your time, effort and resources — and at the same time, continuously secure new clients?
What Are The Best, Lowest Cost Ways To Grow Your Business Today?
Here’s the good news: You need not “go it alone.”
One of the best ways to strengthen your competitive advantage with as little cost, effort, downside or risk as possible is through strategic alliances with other companies.
By leveraging the power of their assets… their experience… their resources… you add enormous value to your own offering. You’ll not only maximize your existing clients’ lifetime value, but you’ll multiply your new clients as well.
We’d like to join you in a compounding strategy that makes you virtually invincible.
How NCP Will Help You Attract Clients By The Boat Load, Leaving
Your Competition in The Dust!
Here’s how NCP can help you, your clients, and the businesses you work with:
You will benefit from our turnkey method focused on building strategic alliances, strengthening the positions of each associated company.
You will receive e-mails, sales letters, strategy, free reports… We’ll also show you the BEST ideas to maximize your results… and resources!
Our tactics and strategies are not only focused on helping you (and in turn, adding more value for your clients), but as you introduce more businesses to NCP’s business-building, turnkey method, you’ll create your own “member network” and receive a referral fee. That’s 100% all profit for you — No COGS with referral or affiliate fees. PURE PROFIT! Marketing Ideas on How to Add More Value to Your Business:
We could do a teleseminar or webinar where you interview me, Scott Letourneau (go to http://www.nvinc.com/aboutncp.htm to read more about our company and CEO) and we extend a special offer.
I’ll present valuable information on these provocative subjects:
How to help your members incorporate their business and keep the IRS off their backs!
How to develop business credit and get more cash for your business (this is one of the hottest subjects in the country). The number one reason business owners fail is lack of cash flow. It is harder than ever for business owners to obtain cash. The good news is we can do a powerful teleseminar or webinar for your group to help solve this problem! Imagine your members having access to more capital to be in a better position to purchase more of your products and services!
I have a free 96-page report, “The Insider’s Guide to Incorporating Your Business and Protecting Your Assets,”that could be sent as a bonus to any of your members, or to those that log onto the teleseminar or webinar.
I have another free report on “The 20 Costly Mistakes Made Before And After Forming A Corporation Or LLC”.
We could add a Teleseminar or Webinar to your clients as a bonus to one of your current programs which could be recorded, archived and replayed in the future, perhaps in your office for future members to view.
ü And, we are open to any of your ideas.
* For example, NCP has a new program for both personal and business credit that accelerates both. This concise program helps business owners get access to more money for their business, allowing them to invest more in products or services that can jump-start a whole new level of success.
There Is NO COST To Your Company!
Remember, we’ve done all the heavy lifting for you. We’ve designed provocative, result-grabbing e-mails, sales letters, strategies and free reports… we’ve orchestrated success-proven webinars and teleseminars. And it’s all set to go, waiting for YOU to reap the benefits. This Is A TURN-KEY Program That Will Take Less Than 30 Minutes To Implement!
Best of all, when you introduce another company to us that becomes part of our business-boosting program, you receive:
• Referral fee back to your organization!
• 10% referral fee on any service sold to your membership.
• 25% affiliate free on our new business credit program!
Let me know what the next step will be in your process. I am looking forward to working with you on this project! Step 7: Visit our Fast Start Blogs and Leave Your Comments: www.FastBusinessStartUp.com and www.FastBusinessCreditSecrets.com plus receive access to many powerful, FREE strategies to protect and grow your business!
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