The above statements are correct that if you want business credit with no personal guarantees then you have to start really small and over time you'll be building your business's credit profile. The better your profile, whether it be Dunn & Bradstreet or FICO, you'll need good credit to get credit. If you have a few thousand to burn then there are some companies out there that will sell a "piggyback" onto a person with seasoned and excellent credit that can raise your company's credit dramatically enough to get some decent sized loans of $10k-$150k(roughly). Some of these companies will even help you get funded, but again you have to pay some steep fees.
If you are a person that has a FICO of 700 or better and your business has been around for at least 2 years then there are some other companies that can get your company funded up to $1million, but again these kinds of companies charge steep fees, like 3% on the back end.
Beware of anyone asking for upfront fees. They are probably not legit. Any reputable funding "broker" is going to make their money after you get funded, not before. Think about it, why would someone need paid upfront for something they say they can do? The bottom line is: if they can do what they say they can do then they know they're gonna get paid and wouldn't be worried about some fees. They will feed you tons of excuses on why they need those fees upfront, but if they are successful at what they do, they'll show you the money.
One of these types of companies to stay away from is:
Aiken Financial Services, 1153 West Mill Dr. Kennesaw, Ga 30152, ran by a Mr. Lee Aiken. ph
770)912-7433. website:
www.myloanguru.com.
email:
gamortgages@aol.com.
This guy advertises creating a "shell" corporation for you, establishing a credit file, and then get you a business loan for up to $7million. He says all he needs is $10k upfront and he'll take 6% on the back end. He claims that the upfront fees are to pay other people, but if he's been getting 6% of loans in the millions then the upfront fees would be petty. The phone number listed is a cell phone, which is registered nowhere near Kennesaw, and his website says he is based out of Atlanta, which again is nowhere near Kennesaw. Another thing is: a legitimate business with a professional website is not going to use a free "aol" email address.
After repeated emails, he told me that he doesn't even get the funding, but somebody else does, and that the somebody else was a secret.
Anyway, after repeatedly showing him the common sense ridiculousness of him getting 6% of $7million and still wanting $10k upfront, he urged me to leave him alone . By the way, I talked to city officials in Kennesaw and Atlanta and there is no business license or business name registered under Aiken Financial Services. So, beware of this financing scam!
Here's a final note to answer your original question, the way to business loan financing is build a credit profile, either the business's( for a "No Guarantor" loan) or your's( for a "Guarantor" loan.)
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