You know what, Shimmy likes cash… and more of it! It sure as hell makes Shay Laren (to your right) smile. She’s gorgeous ain’t she… Shay will be at CybernetExpo in San Francisco this June by the way. And let me be straight and say that I’m totally against the hippied-out lifestyle of living in public parks and holding up handmade cardboard signs beggin for quarters. At the same time I am not exactly a fan of hard work either, unless of course it is for some project I have cooked up for myself that has a huge potential payoff…
I started on the road to rebuilding my business credit profile this weekend (from scratch) since the job scene in California isn’t really happening, and here I’m going to document how to do it step by step for those of you who don’t know the process and think you’re assed-out of luck because you don’t have any cash to fuel your business dreams. Where there’s a will, there’s google to find a way I say. When I started out back in 1997, I used my personal credit and student loan money to fund my adult internet business once it took off from my initial $65 investment… A few months later I did a risky move by maxxing out all my credit cards, pouring my tuition money into shaky projects, and living off top ramen noodles for a few months. Of course it was well worth it and I’d do it all over again in a heartbeat. Made over a million bucks and have no regrets about anything…
The problem for me, and many others my age is that now, after many years of marriage/kids/divorce anyone who isn’t Houdini has some scarred credit. Chalk it up to being young, inexperienced, bad judgement, and trying to keep a canadian woman happy (and fed on time, oink!) and you’ve got a subpar credit score. I can’t even get a freakin bank account in most places anymore. I’ve got car repos from Mercedes, BMW, and a bunch of other creditors on file, along with “a lot” of charged off credit card debt, judgements, late mortgages, student loans gone awry, etc… and that shit sticks on your record longer than 7 years despite what they tell you. I’m facing about a half mil of “bad debt” after just now getting back on my feet and back in america, so what’s a brotha to do when he has equipment to buy, films to finance, and dreams to chase…. we go for a little well kept secret called “busiiness credit”.
Business credit is different than your personal credit, which is linked to your social security number. Anybody who starts a legit company qualifies too, and the great part is the credit limits are higher, easier to get, and you’re basically a ghost in the system. In other words “you” might not be able to get a car loan for a crusty 1983 toyota corolla, but “your company” might qualify to purchase/lease a whole fleet of new ones. So how does this process work, well there are a few guides available on the web to purchase, and some for free with limited knowledge, but I will post how I am doing it all over again on this blog for your reference. Here goes:
- First step, even if you don’t know what your company will be doing/selling thats not really important yet. This whole process is a timeline so the sooner you get started the better. All you need is to think of a company name at this point and stick with it.
- Next you will want to go and get your business an address. If you’re hi-rollin’ big baller then go rent some office space. If you’re on a budget like me, go rent a mailbox… not a PO box either. A real mailbox. You can usually do this in a UPS store, or even better what I do is support little independent mailbox rental places. The service is better, usually cheaper, and they often don’t charge for packages to be delivered there to your company. Cost: About 20-30 bucks a month. You may have to pay 3mos. ahead of time when setting up at first.
- Now your business needs a seperate phone number. Call your local phone co and setup a business line if you have cash handy. Expect to pay about 40 a month even if you don’t use it “just because” its a business. My budget method is to setup a SkypeOut number on Skype. I use their calling plan that is $3 per month and you also get voicemail with that which is perfect. Other method is to get a cheapo prepaid phone. Now since you didn’t register this as a business line you can fix this real easy, and Free too! Go to www.ListYourself.net and register your business and new phone number. Next go to www.Superpages.com and do the same. These are 411 directories and they will propagate to one another, eventually to your local phone book as they all share information with one another. If you’re in a real hurry, call Verizon wireless at 1-800 722-0577 and have them list you in their foreign number directory, its like a $10 charge.
With all that said, the importance of having your business phone number listed is so that creditors can pull you up. Remember, you’re not using your real name, you are now “Joe Blow Consulting” or whatever creative name you thought of for your biz. I like to have fun with mine and have some real creative company names.
Now the next step is for you to register for what is called a “Duns number”. Your duns number will become somewhat like your biz credit social security number. For the quick way to get a duns all you have to do is go to DnB.com and find the link that says you need a duns number for government contracts. Fill out the webpage with your company info, new mailbox address, and new biz phone number and they will issue you one within about 2 days via email. If you don’t specify you need the number for gov. contracts you will have to wait up to a month, and be subject to all their telemarketing shit, which I don’t really have time for. Just gimme the dam number so I can get my credit on…
After you’ve got a Duns number, you’ll want to go to the IRS website and request an EIN. That stands for employer indentification number. It’s free and you get the number instantly. Again, use your business number and address, but this time (and the only time) you will have to enter your real social security number and your name/address. Tell the truth too, this is for tax purposes, and your creditors when you apply for lines of credit, only the IRS.
You should have been able to do all of this within a weekend. I did at least. Total cost should be under $100 including the mailbox and phone number. Now its just a waiting game to get your number listed in the 411 directory. I would recommend waiting at least 30 days, then calling 411 and checking to see if your company is listed. Once it is, congratulations you can start building your credit profile! Go to this page here on the Staples.com website and apply online for a business credit card. It will likely say yes, or send you to a page that says call their 1-800 number and give them some more info. Don’t take this as a rejection, call it up and usually they will ask you to fax in a copy of something official, like a business lic, phone/utility bill, etc. All you really have to do if you don’t have these things yet (and you will very soon anyhow, right?) is to get or make some really good business stationary and fax a letter back to them with your letterhead on it, including your address, phone number, website (non-adult silly) saying you will send them the info they need soon. Generally this will suffice. Hell if you’re a photoshop wiz just photoshop a biz lic certificate until you get your real one in the mail. Staples will grant you a credit line from between $750-$2000 right off the bat. You can use this online or in the store to help you get started… get an office chair, cheap pc, supplies, etc. And pay the dam bill… early if possible. It affects what you call your “paydex” score.
In the next installment I will move on to how to get more and bigger accounts added to your biz credit profile. By the way, a good resource for cheap biz cards and stationary is VistaPrint. I recommend using all their free services and only paying for shipping. You can get 250 biz cards for free + about $5 in shipping and they’re not half bad. They take forever to mail your stuff to you (3 weeks is average) but its good stuff to have for looking official. Ya’ll have a good nite.
Shimmy