We should band together and use each other to build our business credit

**ceo77** · 07-14-2007 03:30 PM

we can use each other as a reference with out really having to do actual credit. Extend 30 day credit for items never used. We can them report to D&B and it will go on our profiles. Establishing and building a good credit business profile and not having to use your personal credit has a much value as a 100k angel investor. I'm a Computer/IT equipment Reseller Exporter. Who would be willing to explore this further?

**SsZERO** · 07-15-2007 01:59 AM

Yes, you can do something like that, in fact many start-ups do use falsely inflated "trade lines" to build up business credit. The drawback is that at some point D&B will want to see audited financial data from the companies involved...at that point, if you send in fake balance sheets and what not you are perpetuating fraud...if you default on any of you loans or credit lines, this can come back to haunt you in the form of lawsuits, and possible bank fraud. Still think it's a good idea?

I'm not saying not to do it, but I'm just pointing out the risks.

**wully00** · 07-15-2007 02:08 AM

Hmmmm I'm an accountant in training-- this seems like a really good idea, and I'm sure theres a way to legally do it. Companys do have returns, stuff like that happens. I'm not saying fake any statements. PM ME.

**ceo77** · 07-15-2007 10:27 AM

Originally Posted by SsZERO

Yes, you can do something like that, in fact many start-ups do use falsely inflated "trade lines" to build up business credit. The drawback is that at some point D&B will want to see audited financial data from the companies involved...at that point, if you send in fake balance sheets and what not you are perpetuating fraud...if you default on any of you loans or credit lines, this can come back to haunt you in the form of lawsuits, and possible bank fraud. Still think it's a good idea?

I'm not saying not to do it, but I'm just pointing out the risks.

So you have a D&B account? You only need 3 positive records over say a 6 month period to really be in the game. There has to be some way. It all depends on the product or service. If its a service and not actually goods, then you don't have to worry about an invoice right? There are companies that charge large sums of money to do this type of thing for you and though it is illegal to some degree, if two companies have a relationship and do it once or twice, I don't see why it would throw up red flags.

**radreality** · 07-15-2007 11:36 AM

Personally, I think a D&B account is a waste of money. My company had about 30k of business credit before it was ever a member of D&B; so it can be done on your own, it just has to be built up over a few years. I have not noticed any changes as a result of having an account since we have had it.

I am in the process of writing a couple articles. One for building personal credit and one for building business credit. I'll post them as soon as I finish.

______________________________
Robert Falk
Business Developer / Investor
Self Help & Success Forum

**radreality** · 07-15-2007 11:44 AM

Plus, why would you want to bend the rules to get something that is completely based on the ability of your business.

If you inflate your business to get more credit, then use that credit, you are puting yourself at risk of not being able to pay it back. The creditors don't extend credit to everyone for a reason. You want to make sure that you don't get yourself/business into financial trouble.

No matter what people say, if your business is unable to pay a creditor, they will then report to your personal credit and go after you personally. So be smart.

______________________________
Robert Falk
Business Developer / Investor
Self Help & Success Forum

**ceo77** · 07-15-2007 12:35 PM

Originally Posted by radreality

Plus, why would you want to bend the rules to get something that is completely based on the ability of your business.

If you inflate your business to get more credit, then use that credit, you are puting yourself at risk of not being able to pay it back. The creditors don't extend credit to everyone for a reason. You want to make sure that you don't get yourself/business into financial trouble.

No matter what people say, if your business is unable to pay a creditor, they will then report to your personal credit and go after you personally. So be smart.

I'm not trying to get loans from banks. My start up money is straight from my pockets, however lets say you are a VAR and you won a bid to supply 300k worth of IT equipment. Obviously they're not going to give you the money first so you have to go to your distributor and make the purchase. Most people can't buy it and need credit. D&B builds a profile. I'm not trying to use my personal credit to do business and would like to keep it seperate. Right now I'm doing small orders at a time because I have to purchase it myself and 85% of the time the consumer pays me first. I can't do any big orders because when I fill out a credit application with different distributors I get denied for not having a credit history. I'm trying to find small distributors to do small 30 Day credit orders to help my cause. I personally think D&B is a rip off for having to pay almost $600.00 in order for them to build your profile but it is what it is. And for people saying a DUN number won't help.. I know of at least 8 prospective suppliers that asked for it on their application. Not to mention the fact that you need it in order to get certain business grants as the govnerment uses it to track how you're actually using their money.

**wully00** · 07-15-2007 05:11 PM

Robert,

I'd be interested in those articles... please let us know when you finish.

**jayk** · 07-26-2007 04:05 PM

is this legal?

**Translation Link** · 07-26-2007 04:29 PM

This sounds like a good idea. Please Pm me with further information about how it would actually work.

**wully00** · 07-26-2007 08:52 PM

Lending other businesses credit? of course. Returning the merchandise later? If its in line with the return policy?

I think we should be more focused on lending each other credit to build the credit scores.

**ceo77** · 07-27-2007 01:25 PM

If the goods don't have to be tangible, then it would work. Company A could use Company B's services for 1 or 2 months with an agreement that they would be paid in 3 months. The only hurdle I see is if you have to show bank records, or tax forms. If you only need invoices then it could very well work.