Welcome to the GSCSC, Inc. Website, and welcome to the GSCSC, Inc. Website Blog. In this week’s article, as the title suggests, “GSCSC, Inc. Corporate Funding Guaranteed”, we want to clear up that issue so people don’t keep losing money. When you visit a website that sells aged shelf companies, you will run into several issues and statements made, which can be very confusing. The first being a guaranty of corporate business credit. Let’s look at this a little further in detail, as an education in this field will help you make the right decisions when purchasing aged shelf corporations.
Global Software Inc Www.gscsc.net Richard Goddeau Explains!
Corporate business credit, what is it? Corporate business credit falls into a few categories: A. Trade or Vendor credit. When you visit a website and you see a statement like: “Obtain business credit without a personal guaranty” IMMEDIATELY STOP RIGHT THERE! What the website does not tell you is that the business credit obtained is only trade or vendor credit, which for the most part, is granted to new or existing businesses without a personal guaranty. However, that is where it ends. The vendor grants you specific terms of payment for a product or service, and so long as you meet those terms and conditions, and you make a small deposit to the vendor, your trade reference is granted. You must pay for the services or products you acquire in order for that trade reference to appear on your business credit profile. However, you must ensure that the trade reference reports to not only D&B, you must also ensure that the trade reference also reports to Experian Business. Unlike D&B, which you can purchase a credit profile from, Experian Business, and Equifax Business, you can’t do this with. Vendors, banks, and so forth, must report to Experian Business in order for a business credit profile to be opened with them. Keeping all of this in mind, here’s the other part of the equation that sucks people in all the time. When you visit a website and see this: “We guaranty corporate funding, without a PG”, WATCH OUT! You are being mislead. No bank, private lender, or any financial institution will guaranty you anything in terms of CASH credit, or credit lines, without performing due diligence, accepting and approving an application, and ensuring that you meet the requirements of that lender. The only time a guaranty is solid, is when your application has been successfully approved, and only then. So if you’re on a website, and you see a statement that guarantees you CASH credit without a credit check, no financials, tax returns, no due diligence performed, ETC, hurry up and RUN THE OTHER WAY! If a bank or hard money lender, or any financial institution for that matter, won’t guaranty you anything until your application has been successfully approved, what would make you think that anyone else should attempt this? Way too many people fall into this trap, and get sucked into buying aged shelf companies with so called guaranteed cash credit, and the buyer ends up losing their money the instant that they send it. The vendor of the aged shelf company, also informs the purchaser that they only need a D&B business credit profile set up, and that they do not have to have other business credit profiles set up, and their personal credit does not matter. This is so far from the truth. Don’t be fooled, you also need an Experian Business credit profile, and an Equifax Business credit profile as well. Though Experian and Equifax pull a lot of data from D&B, credit card payments need to show up on Experian in order to have an Intelli Score credit score for lenders to look into when processing an application.
With our economy in its current state, and the credit crunch that we are in, every single bank now requires a PG on a loan, credit card, or credit line. Until the business has a proven track record for paying back loans, there is no situation that won’t require a PG. However, once the business has proven itself to a lender over a period of time, loans can be changed from PG status to no PG status, but this won’t occur over night. When you buy a credit builder package from any source on the Internet, be sure to ask the source what types of credit are being built, and what business credit bureaus do trade references report on. Now let’s look at other corporate business credit with so called guarantees without a PG: CASH credit, credit cards, loans, LOCS (lines of credit) and what to be careful of when shopping for aged shelf companies on the Internet.
More and more on the Internet these days, you will see companies offering aged shelf companies with pre-existing, pre-approved cash credit, and credit lines. Most of these companies are sold at very high prices, and the purchaser is told that they are guaranteed the credit without a PG, and this is just false misleading information altogether. Many of these aged shelf corporation providers tell their clients that they will have corporate funding in as little as seven to ten days. Wrong again. Very misleading! If the purchaser has bad credit on the personal side, they will not be approved for a line of credit on an existing company, no matter how good the business credit profile may look, and it doesn’t matter how old the company is either. In this industry, and with our current economic situation, and the current credit crunch, if you don’t provide a PG, forget about obtaining the CASH credit or line of credit. Even with a stand-in guarantor, if you are listed on the aged shelf company as an officer, your personal credit will be looked at when a bank or other lending institution is processing a loan application. You can pay higher interest rates on angel investor loans and hard money loans, but due diligence is still going to be required and performed on the individual and business seeking financing. The processing and decision making processes take much longer than seven to ten days, and actual access to the credit lines is usually not immediate. In addition, WATCH OUT FOR THIS STATEMENT AS WELL: “WE GUARANTY FUNDING, AND OTHER EXISTING LINES OF CREDIT, LOANS, CREDIT CARDS, THAT BELONG TO THE PRIOR OWNER ARE GRANTED TO YOU ONCE YOUR COMPANY IS TRANSFERRED OVER TO YOU.” Absolutely wrong, and false misleading information. Banks, private lenders, angel investors, hard money lenders, any financial institution, is not going to turn over existing loans, trade credit, LOCS, Etc, to a new company owner. Don’t fall for that. It is merely a way that many people try to make a fast sale, quick dollar, and take advantage of you. Corporate business credit can only be built on a company, after the date of control change, not before, and any pre-existing credit built prior to that is zeroed out by D&B, lenders, and other business credit bureaus.
Now let’s look at D&B’s requirements. When building corporate business credit, D&B requires you to provide them with very specific and true information. The DATE OF CONTROL CHANGE and START DATE of the BUSINESS CHECKING ACCOUNT are extremely important. If these are not provided, and you are not honest with D&B, your corporate business credit profile will be thrown into investigations and high risk. In addition, no credit can be built on a company prior to the DATE OF CONTROL CHANGE, or prior to the START DATE of your BUSINESS CHECKING ACCOUNT, or the same will happen based on that as well, so when someone tells you that they are going to build business credit on a company, then send it to you, don’t buy into that, as it’s not true. If a company has been provided to you with existing business credit, and the company has been doing business, and you are the new owner, be honest with D&B. Inform them that you are the new owner, and begin building your own business credit. You’ll be happier with the results, and you won’t be red flagged. Any credit built on a corporation prior to the factors that indicate the real start of business, are red flagged. Another important factor, is the state of domisile, and the state to which the company was formed in. If your company is say from Nevada, and you reside in say California, and D&B checks to see if your company is FOREIGN QUALIFIED to do business in California with a Nevada based company, and D&B finds no FOREIGN QUALIFICATION records, the company again is thrown into investigations and high risk. In addition to this, using our example above, if you don’t have foreign qualification, certificates of good standing from both states, and a BUSINESS LICENSE from both states, immediate investigations, and red flagging occurs. Any phone numbers associated with your business, or listed on your business credit profile, MUST BE 411 REGISTERED! If not, your profile again, is thrown into investigations and high risk.
Many aged shelf company providers on the Internet, do not tell you all of these facts, and they also do not help you acquire a company that has been properly set up to have a good business credit profile. More often than not, you as the consumer are mislead by these providers. When you see a guaranty of CASH credit, lines of credit, and so on, question it heavily, and request full proof of this from the vendor. Most likely they won’t provide you with proof, as they don’t have it to provide. As mentioned before, no one can guaranty you anything, and if they do, they are breaking the law. What they should tell you is that they will try to help you acquire the funding, and that they don’t, and won’t guaranty you how much CASH credit that you will receive, or when you will receive it at all since a bank won’t do that until you have actually been approved successfully. In the years prior to 2007, it was possible to get CASH loans, lines of credit, and credit cards for a business without much concern for the business owner’s personal credit, but since 2007, this has all changed, and the criteria for obtaining this type of business credit is much more difficult, even for those persons and businesses that have good credit. Every week we are finding that lenders are tightening up more and more, and that the criteria are being made really stiff, to prevent people from walking away from their personal and business responsibilities. Yes funding is available, but not without a personal guaranty. If someone tells you otherwise, you are being mislead. In addition to the above, no company, including ours, can actually create, modify, edit, or delete anything from a D&B business credit profile. D&B actually does this internally, and no single person or company outside of D&B has any access to their central and internal databases. You can purchase D&B products and services to monitor and add information to your business credit profile, and obtain a free or paid D-U-N-S business credit profile number, but it is D&B that finalizes it, verifies it, and so forth. Packages for opening, maintaining, and monitoring a business credit profile can only be obtained by D&B. Again, no person, entity, business, or otherwise, including our company, can build a business credit profile. We can assist D&B in doing this with the use of their products, and providing them with accurate information, and that is all. The rest is up to D&B directly. Even so called unsecured funding, is still going to be scrutanized, and may still require a PG, which most people won’t tell you. It won’t necessarily fall on you personally, but, there are restrictions on it, and you need to make sure you know what is involved. The real hard cold and truthful fact is, if you are looking for something FAST, and QUICK, you will always fall into the aged shelf company trap every time. If on the other hand, you want to take your time, do things right, and legally, then you won’t fall for false guarantees. We’ve seen so many people fall into that trap, and it is disgusting, and just plain wrong. Don’t be fooled by these false claims. Be very careful out here on the Internet. Remember, seek the professional advice of a certified attorney, certified banker, certified accountant or certified financial advisor before just purchasing an aged shelf company with established credit, or for that matter, anything that sounds too good to be true. In fact, if it does sound too good to be true, it usually is just that. Also, don’t ever pay outrageous prices either, for what sounds like a quick fix. Do your research, and do it carefully.
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