Get Funding for Your Business with Alternative Loans

Business Loan
• A business loan can be obtained to start or
grow a business
• Loans are typically issued by banks, alternative
lenders, and private investors
• Business loans can be obtained based on your
business strengths

Business Loan
• Conventional banks, which include the big
banks like Wells Fargo, Bank of America, and
Chase, issue bank loans that are guaranteed
by SBA
• This means if the borrower defaults, SBA
covers up to 90% of the bank’s loss
• These are the hardest loans to qualify for
because you’ll need good financials, credit,
and collateral

Business Loan
• Over 90% of business loans issued today come
from alternative lenders and private investors
• These loans are much easier to qualify for
versus conventional bank loans
• All you’ll need is one strength, not a nearly
perfect business to get approved

Business Loan
• A business strength for alternative lending
typically includes one of the following:
– Good personal credit, or a guarantor who has
good personal credit
– Some type of collateral such as equipment,
inventory, a 401k or stocks, account receivables
– Consistent cash flow of 10k monthly or more

Business Loan
• If you have one of those strengths, you can
typically get approved for a business loan
• The rates and terms you get approved for will
be based on your risk
• Factors that can determine your risk include
– Time in business
– Quality of your financials
– Credit quality
– Industry

Business Loans… What You Should Know
• Most people go to their conventional bank
when they need a business loan
• But the Department of Revenue reported last
year that over 98% of business financing is
NOT coming from the big banks
• Almost all business loans are now coming
from Alternative Lenders
Get Money for Your Business Now… www.CreditSuite.com/getfunding

• Unlike with conventional banks, alternative
lenders have MUCH easier qualification
requirements
• So you can often get approved with an
alternative lending source when you can’t
with your bank…
• … And even when you think there’s NO WAY
you’ll get approved

• Alternative lending options now mean you can
get approved for a business loan even if:
• You have REALLY bad personal credit
• You have no business credit
• You don’t have any types of collateral
• You are just starting a business
• You don’t have tax returns… or your returns
aren’t good
• You have limited or no cash flow

• The key to getting approved is to know what
lenders are looking for to issue you an
approval
• This way, you can meet their requirements
before you apply
• And you need to know what types of financing
is available so you’ll know what to apply for

• There are 3 main types of alternative business
loans
• CASH FLOW-based loans are loans you can
secure based on your cash flow
• To get approved your cash flow should be:
– Consistent
– Over $10,000 monthly
• And, you’ll need to be in business 12 months
or longer

• CREDIT-based financing can get you up to
$150,000 in unsecured financing
• You can get 0% rates for 6-18 months
• And, this credit reports to the business
reporting agencies
• You can get approved as a startup
• This is no-doc financing

• To get approved you’ll need a consumer credit
score of 685 or higher
• You can also use a guarantor who has good
credit
• You should have low inquiries, and good
revolving credit utilization

• COLLATERAL-based financing may work for
you if you have some type of collateral
• You can get low rates, and approvals are
based only on the value and quality of your
collateral
• Acceptable collateral includes:
– Account receivables and purchase orders
– 401k, IRA, stocks, and bonds
– Inventory
– Equipment

Business Loans for aBusiness Loans for a
Small CompanySmall Company

Business Loans for a Small Company
• There are A LOT of different funding options
for small companies
• Some of these funding programs will work
even if you’re a startup
• There is also funding available if you have
consumer credit issues, or have no collateral

• CASH FLOW loans are loans you can secure
based on your cash flow
– Consistent
– And you should have a positive ending bank
balance each month
or longer… in most cases

• CREDIT financing can get you up to $150,000
in unsecured financing
reporting agencies

credit

• COLLATERAL financing may work for you if
you have some type of collateral
collateral
– Inventory
– Equipment

How to Get Business LoansHow to Get Business Loans
with Bad Creditwith Bad Credit

Bad Credit Business Loans
• There are many different types of business
loans you can get approved for… even with
bad credit
• If you have credit issues, avoid:
– Conventional bank loans
– Unsecured financing
– Business credit cards that require your SSN

• Business loans are obtained based on your
business strength
• The easiest type of business loan you can get
approved for is called CASH FLOW financing
• With this type of financing, you can get
approved only on how you manage your
business bank account

Cash Flow Financing
• You can get approved if you’ve been in
business one year or longer
• You’ll also need to show 6 months of business
bank statements, showing that you have more
than $10,000 in monthly deposits
• Your bank account should also:
– Have positive ending balances at the end of each
month
– Consistent deposits
– Less than 10 NSFs

Cash Flow Financing
• You can get approved for as much as 10-12%
of your annual revenue
• Rates vary based on risk
• Many lenders lend as low as a 500 credit score
• With good bank account management, some
lenders won’t even look at personal credit

Asset-Based Financing
• If you have some type of collateral you can
get low-rate financing based on the quality of
your collateral
– Inventory
– Equipment
• Personal credit quality does NOT matter

• Business credit is a MUST for any business owner
with credit issue
• When you build your EIN credit, that can be used
to qualify you instead of your consumer credit,
or to offset your consumer credit
• Plus you can use your business credit to get large
credit lines such as $10,000-$50,000 credit
cards… in multiples, and store credit cards with
high limits
• Building your business credit gives you a lendable
strength

Business Loans ProcessBusiness Loans Process

Business Loan Process
• Most business loans you apply for will follow
the same underwriting process
• To start the process you must first find a
lender who will lend you money
• Conventional banks will require good credit,
good financials, and collateral
• If you don’t have all of these, consider an
alternative lending solution

• Alternative lenders focus on one lendable
strength
• Your main lendable strengths will include one
of these three:
– Good consumer credit
– Collateral
– Consistent cash flow

• Once you know what your strength is, you can
then find a lender, or broker, who can help
you process your loan
• The first thing that will be required is your
loan application
• Applications are different for all lending
sources

• Most applications will ask you for:
– Your business name and address
– Your website and email address
– Your phone number and other contact details
– Your name
– Your SSN and your business EIN
– Your D-U-N-S number… in some cases
– Your revenue
– Time in business
– Info on other outstanding loans

• Once you submit your application, you’ll
typically be called from a representative from
the lender, or the broker
• This is the front-facing representative, usually
equivalent to a sales person
• On your initial call the rep will verify what’s on
your application, talk more about your wants
and needs, and talk with you about possible
qualification

• Sometimes your credit will have been
reviewed, and sometimes it won’t
• Your rep will ask you for verification of your
revenue or collateral
• Once this is supplied, your loan will be sent to
underwriting
• Underwriting process can take 1 day, or
months depending on the type of loan

• You will be asked for additional details during
this time that the underwriters needs to
approve your loan
• Once you’ve supplied all requested
documents, you’ll then get approved or
denied
• If approved, your rep will present you with
your terms, often in the form of a term sheet

• If you agree to the terms, you’ll be asked to
sign the term sheet
• Once you sign, the lender may do one final
round of due diligence checks for things like
ensuring your rent is up-to-date
• After you pass this final hurdle, your deal will
fund and money will be delivered to you

Business Loans BrokerBusiness Loans Broker

Business Loan Brokers
• A business loan broker is someone who works
with business owners, helping them secure
business loans with banks or other lending
institutions
• The broker serves as a “middle-man”, working
between a borrower and lender

• A broker’s job is to know and understand the
business loan landscape, to know what types
of loans are available for borrowers
• Their job is also to know the lenders that offer
each type of available financing, and to know
their individual loan approval requirements

• With this knowledge, a broker can work with
borrowers to explain their possible loan
options, and explain the terms they may
receive
• Once a borrower requests that a broker move
forward with a loan, the broker will locate the
lending source who can offer the best
financing terms

• The broker will work with the borrower to get
a completed application, and any supporting
income documents the lender may need
• The broker then works to submit that loan to
the bank or lending institution
• The broker then works with their rep at the
lending institution to get the deal approved

• The broker’s rep works with underwriting to
secure loan approval
• That loan approval is then provided to the
broker, and the broker presents and explains
the terms and specifics to the borrower
• The broker many continue to negotiate with
the lender to get the absolute best terms

• Once the terms are accepted, the broker
supplies the signed documents to the lender
• They then work with their rep to get the deal
through the final due diligence stage
• And, the broker sees the loan all the way
through the process until the deal funds

• In most cases, the broker is paid by the lender
once the deal funds
• The payment varies based on the loan type,
amount of fees the borrower pays, and other
factors
• Some brokers also charge the borrower a
separate fee upfront, or when a deal closes

• To find the best broker, find one that works
with the most amount of lenders and loan
programs
• Also, find one with experience
• Work with brokers that close more loans so
they can help you get the best terms
• And, be aware that many brokers do not
charge you additional fees
• It is always risky paying upfront fees in case
your deal doesn’t close

Business LoansBusiness Loans
for Womenfor Women

Small Business Loans for Women
• Women owned businesses account for more
than 40% of all privately held firms
• As many businesses that are owned by women,
many still struggle to obtain business financing

• Cash flow financing is a great loan program for
women, if you’ve been in business one year or
longer and have $10,000 in monthly revenue
• Unsecured financing is available for women
entrepreneurs up to $150,000
• You can get approved if you have good
personal credit, and get 0% intro rates for 6-18
months… even as a startup

• Collateral-based financing offers women low
rate financing
• Personal credit quality and revenue don’t
determine your approval
• Some acceptable collateral includes:
– Inventory
– Equipment

• SBA offers some great loan programs including
their 7(a) loan for working capital
• To get approved you’ll need:
– 3 years of business and personal tax returns
– Good personal, business, and bank credit
– Collateral for 50-70% of what you’re borrowing

• If you have good personal credit and tax
returns for 2 years that show a profit,
alternative lenders have programs that may
work
• You can be approved with rates of 7% or lower
• Lenders will want to see some type of profit on
your tax returns

• SBA offers some phenomenal resources for women
business owners
• SBA’s Office of Women’s Business Ownership, answers
questions on the Women’s Business Center program or
other services for women
• SBA’s Women’s Business Centers, SBA’s national
network of over 100 educational centers assist women
in starting and growing small businesses
• SBA’s Women-Owned Federal Contracting Program,
levels the playing field for women competing for federal
contracting opportunities.

• There are also many associations that can help women
entrepreneurs obtain funding:
• Association of Women's Business Centers (AWBC)
• National Association of Women in Construction
• National Association of Women in Real Estate Businesses
(NAWRB)
• National Association of Women's Business Owners (NAWBO)
• National Women's Business Council (NWBC)
• U.S. Women's Chamber of Commerce (USWCC)
• WEConnect International
• Women's Business Enterprise National Council (WBENC)
• Women Impacting Public Policy (WIPP)
• Women's Presidents' Organization (WPO)

Business LoansBusiness Loans
for Veteransfor Veterans

Business Loans for Veterans
• Cash flow financing is a great loan program for
women, if you’ve been in business one year or
longer and have $10,000 in monthly revenue
• Unsecured financing is available for women
entrepreneurs up to $150,000
• You can get approved if you have good
personal credit, and get 0% intro rates for 6-18
months… even as a startup

• Collateral-based financing offers women low
rate financing
• Personal credit quality and revenue don’t
determine your approval
• Some acceptable collateral includes:
– Inventory
– Equipment

• SBA offers some great loan programs including
their 7(a) loan for working capital
– 3 years of business and personal tax returns
– Good personal, business, and bank credit
– Collateral for 50-70% of what you’re borrowing

Small Business Loans for Veterans
• SBA Express program is a great loan program for
veterans
• You can get approved for a loan up to $350k
• Get rates of 4.5-6.5%
• Get a line-of-credit good for 7 years
• No collateral required up to 25k

Small Business Loans for Veterans
• Patriot Express
• Loans up to $500k
• No collateral required up to 350k
• Rates 2.25-4.75 over prime rate
• Veterans, service-disabled veterans, active duty,
reservists, current spouses of any of these,
widowed spouse of service person who passed
away during service

Small Business Loan
Resources for Veterans
• Office of Veterans Business Development, offers a number of
programs and services to support and empower aspiring and
existing veteran entrepreneurs and military spouses. SBA
provides training and mentorship, access to capital, preparation
for opportunities in federal procurement, and cultivation of
connections within commercial supply chains and disaster relief
assistance.
• Boots to Business, the two-step entrepreneurial program
offered by the SBA on military installations around the world as
a training track of the Department of Defense (DOD) Transition
Assistance Program (TAP).
• Boots to Business|Reboot, extends the entrepreneurship
training offered in TAP on military installations to veterans of
all eras in their communities.

Small Business Loan
• Veterans Women Igniting the Spirit of Entrepreneurship (V-
WISE), an SBA funded program provided by the Institute for
Veterans and Military Families which includes online training, a
conference that harnesses the unique esprit de corps of
women veterans and female military spouses, and follow-on
mentoring through a community of partners.
• The National Center for Veterans Institute for Procurement,
extends the entrepreneurship training offered in TAP on
military installations to veterans of all eras in their
communities.
• Veterans Business Outreach Center (VBOC), provides
entrepreneurial development services such as business
training, counseling and mentoring for eligible veterans owning
or considering starting a small business.

Small Business Loan
• Leveraging Information and Networks to Access Capital (LINC),
online matchmaking service, connects small business owners
with nonprofit lenders that offer free financial advice and
specialize in microlending, smaller loans (SBA Community
Advantage program), and real estate financing (SBA 504 loan
program).
• SBA Veterans Advantage, Guarantees loans approved to
businesses owned by veterans or military spouses during fiscal
year 2017 (October 1, 2016 through September 30, 2017) will
receive the benefit of its regular guaranty fee reduced by 50%,
when the loan is over $150,000.

Small Business Loan
• SBA Veteran’s Entrepreneurship Act of 2015, Reduces the
upfront borrower fee to zero dollars for eligible veterans and
military spouses for SBA Express loans up to $350,000.
• Military Reservist Economic Injury Disaster Loan Program
(MREIDL), provides loans up to $2 million to eligible small
businesses to cover operating costs that cannot be met due to
the loss of an essential employee called to active duty in the
Reserves or National Guard.

Business Credit LinesBusiness Credit Lines

Business Credit Lines
• A credit line, or line of credit (LOC), is an agreement between
a financial institution or private investor that establishes a
maximum loan balance that a borrower can access
• A borrower can access funds from their line of credit anytime,
as long as they don’t exceed the maximum set in the
agreement, and as long as they meet any other requirements
of the finance institution or investor such as making timely
payments
Get Approved Now…www.CreditSuite.com/GetFunding

 Credit lines provide many unique advantages to
borrowers including flexibility
 Borrowers can use their line of credit and only pay
interest on what they use, unlike loans where they
pay interest on the full amount borrowed
 Credit lines can be re-used, so as you acquire a
balance and pay that balance off, you can use that
available credit again, and again
Free Consultation…www.CreditSuite.com/Consult

• Credit lines are revolving accounts
similar to credit cards, and contrast
other forms of financing such as
installment loans
• In many cases, lines of credit are
unsecured, much the same as credit
cards are
• There are some credit lines that are
secured, and therefore easier to
qualify for

 Credit lines are the most commonly requested loan type in
the business world
 Even though they are very popular, true credit lines are
rare, and hard to find
 Many are also very tough to qualify for requiring good
credit, good time in business, and good financials
 But there are other credit cards and lines that few know
about that are available for startups, bad credit, and even
if you have no financials

Conventional Credit Lines
• Most credit line types that most business owners
think of come from conventional banks
• Conventional banks use SBA loans as their
primary loan product for small business owners
• This is because SBA insures as much as 90% of
the loan in the case of default
• These credit lines are the hardest to qualify for
because you must qualify with SBA and the bank

• There are two main types of SBA loans you can typically secure
• One type is called CAPLines
• There are actually 5 types of CAPLines that can work for your
business
• You can also secure a lower loan amount faster using the SBA
Express program
• Most of these programs offer BOTH loans and revolving lines of
credit

• There are also credit lines that are available through alternative
lenders
• Inventory financing, this is a credit line you can obtain using
your existing inventory as collateral
• Cash flow financing, this is a credit lines where you are using
your existing cash flow to qualify
• Securities based financing, with this type of financing you are
using stocks and bonds to qualify

Business Credit LineBusiness Credit Line

• There are two main types of SBA credit lines you can typically
secure
• One type is called CAPLines
• There are actually 5 types of CAPLines that can work for your
business
• You can also secure a lower loan amount faster using the SBA
Express program
• Most of these programs offer BOTH loans and revolving lines of
credit

• From SBA… “CAPLines is the umbrella program
under which SBA helps business owners meet
short-term and cyclical working capital needs”
• Loan amounts are available up to $5 million
• Loan qualification requirements are the same as
with other SBA programs

SBA CAPLines
• Seasonal Line- Advances against anticipated
inventory and accounts receivables. Designed to
help seasonal businesses. Loan or revolving are
available
• Contract Line- Finances the direct labor and material
cost associated with performing assignable contracts.
Loan or revolving are available

Builders Line- Designed for general contractors or
builders constructing or renovating commercial or
residential buildings. Used to finance direct labor-
and material costs, where the building project
serves as the collateral. Loan or revolving are
available
SBA CAPLines

Standard Asset-Based Line- For businesses unable to meet credit
standards associated with long-term credit. Financing for cyclical
growth, recurring and/or short-term needs. Repayment comes from
converting short-term assets into cash. Businesses continually draw
from the LOC, based on existing assets, and repay as their cash cycle
dictates. This line generally is used by businesses that provide
credit to other businesses.
SBA CAPLines

Small Asset-Based Line- Asset-based revolving line of
credit of up to $200,000. This line has It operates like a
standard asset-based line except that some of the
stricter servicing requirements are waived, providing the
business can consistently show repayment ability from
cash flow for the full amount.
SBA CAPLines

SBA Express
• The SBA Express program offers access to a credit line for
well-qualified borrowers
• You can get approved for up to $350,000
• Interest rates vary, with SBA allowing banks to charge as
much as 6.5% over their base rate
• Loans over $25,000 will require collateral

Business Loans ExplainedBusiness Loans Explained

Account Receivable Factoring
• Up to 80% of receivables is forwarded
• 1 year in business required
• Must be receivables from another business
• Rates of 1.25-5%

Securities Based Lines of Credit
• 70-90% LTV
• Rates as low as 1.6%
• Working capital line-of-credit
• Challenged personal credit

Inventory Loans
• Minimum inventory loan amount:
$150,000
• General loan to value (cost): 50%;
thus, inventory value would have to
be $300,000 plus
• No lumped together inventory, like
office equipment
• Example is a factory or retail store

PO Financing
• $5,000+
• Up to 95% of your existing purchase orders
• Letters of Credit

Equipment Financing
• Major equipment only
• Lender won’t combine a bunch of small
equipment
• 1st
and last month’s payments required
• Loans up to $2 million

401k Financing
• 401k or IRAs can be used
• Up to 100% financing
• Rates usually less than 5%
• Steps
– A new corporation is formed
– A retirement plan is created allowing for
investment into the corporation
– Funds are rolled over into the new plan
– The new plan purchases stock in corporation and
holds it
– Corporation is debt free and cash rich

Business Credit
• Business credit is a brilliant solution for
startup businesses
• You can get initial vendor credit immediately
• You can get store credit at places like Best
Buy, Walmart, Amazon, and Dell within 90
days or less
• And you can get cash credit of $10,000-50,000
within 6 months or less

Business Credit for Real EstateBusiness Credit for Real Estate

Business Credit for Real Estate
• Most lenders view real estate as a high risk
industry
• As a result, many investors find it difficult to
obtain financing to start and grow
• As hard as it is for investors to obtain capital,
business credit as a brilliant solution because
there are no restrictions for real estate
investors

Business Credit for Real Estate
• There are a couple of ways investors can
obtain capital through business credit
• The first way is to build credit for your EIN
that’s not linked to your SSN
• This method requires a little more time to
obtain, but there are no consumer credit,
collateral, or cash flow requirements for
approval

Obtain Vendor Accounts Quickly
• To get started, use vendors to obtain your initial
credit
• Uline, Quill, and Seton are a few vendors who will
give you credit when you have none now
• Keep in mind, if you have no credit now some
companies like Quill or Uline might require you
place 2-3 orders first before they give you credit
• Get approved, buy $50 or more at each source on
your credit, and pay your bill on time

Get Store Accounts
• Monitor your business credit reports, it will
take about 30-90 days for your initial accounts
to report
• Once you have 5 accounts reporting to the
business agencies, start applying for store
credit cards… most other retail stores offer
business credit accounts you can apply for

Obtain Cash Accounts
• Once you have 10-15 accounts reporting to
the business agencies, start applying for fleet
and cash credit
• Initial approval limits are typically $10,000-
$40,000
• And, there are many ways you can take cash
out to use for real estate purchases

Do NOT Do This…
• Don’t put your SSN on the application
• Don’t skip steps and apply for cash or store
credit too early
• Don’t apply unless your business is setup
credibly

Unsecured Business Financing
• Unsecured Business Financing, or UBF, is
another way you can use business credit to
purchase real estate
• With UBF, you work with a financer who
specializes in securing business credit cards
• This is a VERY rare, very little know about
program that few lending sources offer

• They can usually get you 3-5 times the
approvals that you can get on your own
• This is because they know the sources to apply
for, the order to apply, and can time their
applications so the card issuers won’t decline
you for the other card inquiries

• The result of their services is that you usually get
up to 5 cards that mimic the credit limits of your
highest limit accounts now
• Multiple cards create competition, and this
means you can get your limits raised typically
within 6 months or less of your initial approval

• The lender can also get you low intro rates,
typically 0% for 6-18 months
• Approvals can go up to $150,000 per entity
such as a corporation
• Approvals usually range from $2,000-50,000
• You’ll usually get 3-5 cards, so that means you
can get up to 5 times that of your highest
credit limit accounts now

• You must have excellent personal credit now,
preferably 700 + scores… the same as with all
business credit cards
• You shouldn’t have ANY derogatory credit reported
to get approved
• You must also have open revolving credit on your
consumer reports now
• You’ll need to have 2 inquiries or less in the last 6
months reported

• You can get approved using a guarantor
• You can even use multiple guarantors to get
even more money

How to Get a SBA LoanHow to Get a SBA Loan

SBA Qualification Details
• SBA loans offer some of the best terms available in the business
financing world
• It’s important to note, SBA insures loans in the case you default,
they actually don’t issue loans themselves
• SBA loans are offered through many sources including loan
brokers, and through most large conventional banks
• To get approved there are many things you’ll need

 Good personal and business credit… SBA states you should not
have any “blemishes” on your report
 Good bank credit… An acceptable bank score requires you have
at least $10,000 in your account over the last 90 days

• A resume showing you have industry experience
• A well put together business plan
• 3 years of business and personal tax returns…
your business returns should show a profit
• Current balance sheet and income statement…
showing you have the funds to repay the loan

• Account receivables… if you have them
• Collateral to offset the risk… usually all business
assets will be taken as collateral, and some personal
assets including your home. It’s not uncommon to
need collateral equal to 50% or more of the loan
amount

• Articles of incorporation
• Business licenses
• Contracts with all 3rd
parties
• Lease

• SBA’s approval requirements require:
– You operate a for profit business
– That you be “small” or not dominant in your
space
– Do business in the United States
– Have reasonable invested equity
– Use other financial resources, including
personal assets, before seeking help
– Show you have a need for a loan
– Use the funds for a business purpose
– Not be delinquent on government debts now

How to Get a Business LoanHow to Get a Business Loan

How to Get a Business Loan
• A business loan can be obtained to start or
grow a business
• Loans are typically issued by banks, alternative
lenders, and private investors
• Business loans can be obtained based on your
business strengths

• Conventional banks, which include the big
banks like Wells Fargo, Bank of America, and
Chase, issue bank loans that are guaranteed
by SBA
• This means if the borrower defaults, SBA
covers up to 90% of the bank’s loss
• These are the hardest loans to qualify for
because you’ll need good financials, credit,
and collateral

• Over 90% of business loans issued today come
from alternative lenders and private investors
• These loans are much easier to qualify for
versus conventional bank loans
• All you’ll need is one strength, not a nearly
perfect business to get approved

• A business strength for alternative lending
typically includes one of the following:
– Good personal credit, or a guarantor who has
good personal credit
– Some type of collateral such as equipment,
inventory, a 401k or stocks, account receivables
– Consistent cash flow of 10k monthly or more

• If you have good personal credit, you can get
approved with a simple consumer credit
report review
• If you have cash flow that’s consistent, you
can be approved with a review of 6-months of
bank statements
• If you have collateral, you can get approved
with a review of your assets

• If you do have good personal credit, collateral,
and financials, your bank is the best place to
secure a conventional SBA loan
• If you have only one strength such as
collateral, cash flow, or good credit, work with
an alternative lender that offers that type of
financing
• Loan brokers also offer access to multiple
funding options

How to Get a Small Business LoanHow to Get a Small Business Loan

How to Get a Small Business Loan
• Most people go to their conventional bank
when they need a business loan
• But the Department of Revenue reported last
year that over 98% of business financing is
NOT coming from the big banks
• Almost all business loans are now coming
from Alternative Lenders
Get Money for Your Business Now… www.CreditSuite.com/getfunding

• Unlike with conventional banks, alternative
lenders have MUCH easier qualification
requirements
• So you can often get approved with an
alternative lending source when you can’t
with your bank…
• … And even when you think there’s NO WAY
you’ll get approved

• Alternative lending options now mean you can
get approved for a business loan even if:
• You have REALLY bad personal credit
• You have no business credit
• You don’t have any types of collateral
• You are just starting a business
• You don’t have tax returns… or your returns
aren’t good
• You have limited or no cash flow

• The key to getting approved is to know what
lenders are looking for to issue you an
approval
• This way, you can meet their requirements
before you apply
• And you need to know what types of financing
is available so you’ll know what to apply for

• There are 3 main types of alternative business
loans
• CASH FLOW-based loans are loans you can
secure based on your cash flow
– Consistent
or longer

• CREDIT-based financing can get you up to
$150,000 in unsecured financing
reporting agencies

credit

• COLLATERAL-based financing may work for
you if you have some type of collateral
collateral
– Inventory
– Equipment

How to Get a Business LoanHow to Get a Business Loan
with Bad Creditwith Bad Credit

Business Financing Based on
Strengths
• This massive amount of available financing is
available to you based on your business
strengths
• So as long as you have a strength to offset
your weakness of having bad credit, you can
be approved
• This is often called compensating factors

Revenue Based Lending and
Merchant Advances
• One strength your business may have is
consistent cash flow
• With this strength, you can get approved
with a review of 6 months of your business
bank statements
• If you manage your bank account responsibly
and have been in business for one year, you
can get approved regardless of personal
credit

Revenue Based Lending and
Merchant Advances
• You can be approved for as much as 10-12%
of your annual revenue
• You can get funding in as little as 72 hours…
sometimes even less
• You won’t need any collateral or tax returns
for approval

Inventory Loans
• You can get low-rate financing using
your inventory to qualify
• Get a working capital credit line
• You’ll need about 500k in inventory to
get approved
• No collateral requirements

Equipment Financing
• You can use equipment you own free and
clear to get approved for financing, even with
bad credit
• You’ll need the first and last month’s
payments
• Loans up to $2 million

401k and Securities Financing
• 401k or IRAs can be used to get approved for as
much as 100% of your 401k value
• You can get a low-rate loan of 5% or less
• There are no collateral or cash flow requirements
• You can also use stocks and bonds to qualify
• Get approved for as much as 90% of the value of
your stocks and bonds

Equity Financing
• You exchange a percentage of ownership in
your business for financing
• Much like on the TV show Shark Tank
• Credit is NOT an issue
• Equity investors are looking for a tested and
proven concept
–Sales really help approval

Crowd Funding
• There are lots of sites for crowd funding
• This type of funding gathers money from a
“crowd”, or a lot of people instead of one big
investor
• If the crowd likes your idea, they may donate
money to your project
• Much of crowd funding doesn’t need to be
paid back
• Many investors are people you know

Business Credit
• Not based on personal credit
• Starts with a few vendor accounts who will
initially offer credit
• Initial accounts create trade-lines and a credit
profile and score are established
• The company’s new profile and score are used
to get credit

Business Credit
• Newly obtained credit is based on the
company’s credit per the EIN, not the owners
credit based on the SSN
• Personal credit doesn’t matter as the credit
linked to the EIN is used for approval

How to Start a BusinessHow to Start a Business

How to Start a Business
• The first step in starting a business is to select what industry
you want to be in, or the product or service you want to sell
• Brainstorm and come up with MULTIPLE ideas
• Choose something you have a passion for as running a
business will take A LOT of your time

• The most successful and profitable
businesses solve BIG problems
• Choose a business that solves a problem
AND relieves people or business’s pain
• The bigger the problem you solve, the
more relief from pain you provide, the
more successful you’ll be

• Once you know what your business will be, next it’s time to setup
your actual company
• To do this think of a name for your business that’s catch, possibly
short, easy to spell, and that the domain is available for
• Use Go Daddy to search for the domain, and consider only going
with a company name that has a domain available
• Also, try and make sure your name doesn’t reflect you’re in one of
those high-risk industries

• Once you know the domain is available, next check to see
if the company name is available in your state
• You can do this by searching in Google for “Secretary of
State MY STATE”
• You can then easily search for the company name.

• If the name is available, follow the steps in your SOS website
to setup a new entity
• You’ll need to choose from profit or non-profit
• You’ll need to choose an entity type
• Consider a LLC or S-Corporation
• Prices vary based on state
• Start and complete the process, it only
takes 5-10 minutes

• Congratulations, you now have your own business!
• Your next step is to get your EIN, which is how our IRS
recognizes your company
• This is FREE to get at irs.gov

Getting a New Bank Account
• Your final step of setting up your new business is to setup
your bank account the right way to ensure it’s easy for
you to get credit and loans in the future
• Your company name needs to match your entity
paperwork
• Your company address also needs to be the same
• Make sure your EIN number is also the same on your bank
account as it is on your EIN paperwork

How to Start a Business OnlineHow to Start a Business Online

How to Start a Business Online
• The first steps to setup an online business include:
– Selecting what products or services you want to sell
– Choosing your business name
– Setting up your entity with your Secretary of State
– Getting your EIN from www.irs.gov
– Setting up your business bank account

Setting Up Your Business
• Setup your website next
• You can do this cheaply using a company like
www.templatemonster.com then use www.upwork.com to
hire a contractor to put up your website
• You’ll need the website template you buy from Monster,
the content for each page, the domain, and the hosting
which you can get from Go Daddy
• Also get the professional email address

• You’ll need to get a phone number from a place like Ring
Central
 Get a toll-free number
 Get a fax number
 List your phone number with 411, List Yourself can help
(only need this before you apply for credit and financing)
• Get a business address from a place like
https://ipostal1.com/ or http://www.regus.com/

• Get any licensing you’ll need from your county and for your
industry
• Make sure that your business name, address, etc. is the same
on all of your documents
• Get your logo using www.fiverr.com or www.99designs.com
• Write out a short description of your company and what you
do, with a call-to-action… such as visiting your website

• Setup your business online congruently with free listings:
 https://www.google.com/business
 https://www.bingplaces.com/
 https://smallbusiness.yahoo.com/local-listings
• There are HUNDREDS of other free places you may consider…
• Go to www.youtube.com/creditsuite and search for “Get Your Business
“Listed” Correctly to Meet Credit Issuer & Lender Credibility Approval
Standards”

• Setup your social media channels
 Facebook business page
 Twitter
 LinkedIn company page, and your individual profile
 YouTube
 Instagram
• Consider buying some subscribers from www.Fiverr.com
• Obtain a merchant account to accept credit cards
http://www.creditsuite.com/merchant

Formulate Your Plan
• Write down even a basic Business Plan that
outlines clearly where you’re going and the
plan you’re going to take to get there
• Once you have a Mission Statement, then you
can develop a basic plan of attack
• This should be a Massive Action Plan, or your
MAP to get to your end goal
• With these things you’ll know where you’re
going, and how to get their… basically you’ll
have your Strategy

Access Capital
• Make sure that getting access to money is one of the first
things you strategize about!
• After all, it’s one of the most common reasons for business
failure per SBA
• Start building your business credit RIGHT AWAY… it can
supply you the startup capital you need
• And you can get it regardless of other factors
such as personal credit

Access Capital
• Getting vendor credit immediately, store credit within 90 days, and
cash credit within 120 days is essential to your success
• You can then use that credit to grow your company… instead of
relying on personal funds or profits alone
• And, if you have collateral, cash flow, or good credit, that opens up
even more funding options for you
• You will need money to grow, and if your only source is personal
money and credit or cash flow, you’re looking to grow at a snail’s
pace

Access Capital
• Even as a startup you can get business loans
• If you have good personal credit or a guarantor who does, you can
qualify for up to $150,000 in 0% unsecured financing
• If you have a 401k or stocks or a partner who does you can qualify
for 5% loans and credit lines
• You can also get money to make purchases such as equipment

How to Fund and Grow Your BusinessHow to Fund and Grow Your Business

Access Capital
• Make sure that getting access to money is one of the first
things you strategize about when starting your business
• After all, it’s one of the most common reasons for business
failure per SBA
• Start building your business credit RIGHT AWAY… it can
supply you the startup capital you need
• And you can get it regardless of other factors
such as personal credit

Marketing Your Business
• To grow your business, your initial priority should
be to start making sales
• This should happen within your network first
• Start promoting your social media channels and
website to your friends and family
• Ask them for their business, and who else they
may know
• You may even want to setup an affiliate program
to pay them for referrals

Marketing Your
New Business
• Also consider local marketing as well such as
going to homes or businesses door-to-door
• And look into networking events you can go
to such as Chamber of Commerce or BNI
• There are many other smaller ones in your
area probably available as well
• Maybe even start your own if you have a lot of
connections

Marketing Your New Business
• Connections are key when you start out
• So try to think about who you may know that’s a
“connector”
• Ask your friends and family as well
• Even a few connectors can help you make a lot of sales
early

Marketing
• The BEST way to market and sell is using Free Information Theory
• Basically, you teach and educate how people can get the results
your product and service delivers
• If you are selling tax services, start educating on how people can
file their own taxes, what they should know, etc.
• Teach people ALL that you know using free channels like
Facebook, YouTube, and Twitter
• And make great use of LIVE channels such as
YouTube LIVE, Periscope, and Facebook LIVE

Marketing
• When you teach and educate you build a loyal tribe
• Many of those will use your free info and better their lives, and be your best
testimonials
• Many others will pay you for your services because they want to work with you
• When you sell this way people want to do business with you versus you trying to “sell”
them on why they should
• They see you as a credible expert and trust and rapport is built making the sale much
easier

Marketing
• The key to success is CONTENT
• Having this means you’ll have long-term success, or face possible
failure without it
• To get content, host a webinar every-other-week
• Put that webinar on YouTube and Vimeo, as well as other free
hosting sites
• Make your video into an automated webinar
• Create emails and social media posts out of it
• Turn it into blog posts and free reports and guides

Marketing
• Create articles and use www.Fiverr.com to distribute them
• Make smaller videos out of your larger video and spread
them out
• Make a podcast out of your recording
• And promote all of this in your email drip sequence we’ll talk
about later as well as your social media channel

Marketing
• Use free distribution channels to distribute your content
 Social media
 Online educational courses
• This will not net you instant sales
• But this will build your following, and within 6-12 months
you’ll see EXPLOSIVE growth
• To make this work you MUST have a good sales funnel

Marketing
• A good sales funnel offers quality information through a
drip sequence every few days
• This is more information that gives you credibility and
builds trust and rapport
• Your email sequence should have written emails, videos,
webinars, and more
• Once created, your main marketing goal is to get leads
into your sequence

Corporate Credit
• Corporate credit is in the business name and
based on the business’s ability to pay, not the
business owners
• Since the business qualifies for the credit, in
some cases there is no personal credit check
required from the business owner
Grab Your Free Guide on Building Business Credit
www.CreditSuite.com/EIN

Corporate Credit
• The business can use its credit to qualify for
revolving store credit cards like Staples,
Lowes, Sam’s Club, Costco, BP, Wal-Mart,
even MasterCard, Visa, and AMEX
• The business can also qualify for credit lines
and loans

Corporate Credit Benefits
• A credit profile can be built for a business that
is completely separate from the business
owner’s personal credit profile
• This gives business owners DOUBLE the
borrowing power as they have both Personal
and Business credit profiles built

• Business credit scores are based only on
whether the business pays its bills on time
• A business owner can obtain credit much
faster using their business credit profile versus
their personal credit profile

• Approval limits are much higher on business
accounts versus personal accounts
• Per SBA, credit limits on business cards are
usually 10-100 times higher than consumer
credit

• When done correctly Business Credit can be
built without a personal credit check
• Business credit can quickly be obtained
regardless of personal credit quality
• And there is no personal credit reporting of
business accounts

• Most business credit can be obtained without
the owner taking on personal liability, or a
personal guarantee
• This means in case of default, the business
owner’s personal assets can’t be pursued

• Corporate credit quality determines
– If you’ll be approved for a business loan
– How much you’ll be approved for
– The terms you’ll be approved for
• It’s important to know that ANYONE can pull
and review your business credit reports
– Lenders and credit issuers
– Customers and clients
– Competitors
– Potential investors

• This means they can see…
– Payment history
– High credit limits
– Employees and revenue
– Past payment performance
– And much more

Business Credit Benefits
• Almost any business can get business credit
as long as it has an EIN number and entity
setup
• You don’t need collateral
• You don’t need financials
• You can be a startup
• You just need to know the proper building
steps

Obtain Vendor Accounts Quickly
• Right now, as soon as you are done with this
video, check out Uline, Quill, and Seton and
apply for credit
• Keep in mind, if you have no credit now some
companies like Quill or Uline might require
you place 2-3 orders first before they give you
credit
• Get approved, buy $50 or more at each source
on your credit, and pay your bill on time

Get Store Accounts
• Monitor your business credit reports, it will
take about 30-90 days for your initial accounts
to report
credit cards… most other retail stores offer
business credit accounts you can apply for

Obtain Cash and Fleet Accounts
• Once you have 10-15 accounts reporting to
the business agencies, start applying for cash
credit, fleet credit, and auto financing
• Home Depot has a great cash credit card, and
so do many banks
• Initial approval limits are typically $5,000-
10,000

Do NOT Do This…
• Don’t put your SSN on the application when
building corporate credit
• Don’t skip steps and apply for cash or store
credit too early
• Don’t apply unless your business is setup
credibly

How to Build Business Credit
• Make sure you have your business setup
– Entity
– EIN
– Bank account
• Make sure you’re setup credibly
– Address
– Phone, 411 listing
– Website and email
– Licensing
– Congruent listings online

Get Your Credit Reports
• Business credit reports are offered through
Dun & Bradstreet, Experian and Equifax
Commercial
• Visit www.creditsuite.com/reports to do a
FREE search to see if you’re listed now
• Gert your FREE D-U-N-S number with D&B

Obtain Vendor Accounts
• Get your initial tradelines, credit score, and
credit profile with the BUSINESS reporting
agencies by securing vendor accounts
• These are accounts with net 30 type terms
• Get approved with sources who will give you
credit, even if you have no credit now
• Try Uline, Quill, Seton and a few others… you
should have 5 accounts setup

Obtain Store Accounts
credit cards for your business
• Leave your SSN off of the application
• Amazon, Best Buy, Dell, BP, and most other
retail stores offer business credit accounts you
can apply for

Obtain Cash Accounts
business agencies, start applying cash and
fleet credit
• Visa and MasterCard offer cash business
credit cards
• There are many fleet cards including Wex,
Universal, Fuelman, and many others

Dun Bradstreet Number
• Dun and Bradstreet (D&B) is the largest
business credit reporting agency with over
220 million records on file worldwide
• The first step in getting setup with D&B is to
setup your Dun & Bradstreet Number, or your
D-U-N-S number

Are You Setup with D&B Now?
• Check with D&B to see if they have a record setup
for you now.
• It’s FREE and easy to do this!
• You can go directly to D&B’s website to check
iUpdate for your business
• Or, visit www.creditsuite.com/reports to see if
you’re setup with D&B, Experian, or Equifax… all for
FREE

Are You Setup with D&B Now?
• If you pull up a record for your business with the
reporting agencies, before you take another step you
should consider pulling your actual reports
• To do this, you’ll need to enroll for credit monitoring
• In doing so, you’ll see if you have any credit reporting
• You’ll also see if you have scores
• And if you have negative items on your report, you
can dispute those through iUpdate or through
monitoring

Setup Your D-U-N-S… for FREE
• If your search with D&B doesn’t show you have your
D-U-N-S number, you’ll want to get it setup
• In 1963, the introduction of the Data Universal
Numbering System or D-U-N-S helped bring business
information into the computer age
• Today D&B maintains a database of over 213 million
companies globally

D-U-N-S Number
• The D-U-N-S number is a nine-digit number
issued by Dun & Bradstreet and assigned to
each business location in the D&B database,
each having a unique, separate, and distinct
operation for the purpose
• Every business must first have a D-U-N-S
number before Dun & Bradstreet will assign a
Paydex business credit score

D-U-N-S Number
• The DUNS number is the preferred method
worldwide of identifying businesses
• Unlike national Employment Identification Number
(EIN), a D-U-N-S number may be issued to any
business worldwide
• It is used by many foreign governments including the
US and Australia, European Commission, and even
the United Nations
• More than 50 global, industry,
and trade associations recognize,
recommend, or require DUNS

Setting Up Your D-U-N-S
• You can search for your DUNS through the link at
www.creditsuite.com/reports
• Or you can go to www.dandb.com/free-duns-number
• During the DUNS setup process you’ll be asked for A LOT
of information
• If you select that you’re a government contractor, you’ll
get your DUNS in about 1-2 weeks
• If you don’t pay D&B anything and aren’t a contractor, it
can take up to 30 days to get your DUNS

• Here’s what the process looks like to get your DUNS:

• The process to obtain your DUNS will require about 10-
15 minutes
• Once you’re done, D&B will email you
• Reps will also start to call and email you to upsell you to
the D&B Credit Builder program

Dun & Bradstreet
Vendor Management

Dun & Bradstreet
Vendor Management
• This credit is in the business name and based
on the business’s ability to pay, not the
business owners
• Since the business qualifies for the credit, in
some cases there is no personal credit check
required from the business owner

Trade Credit
• Vendor credit is sometimes refereed to as trade
credit
• This type of credit is extended from one trader to
another for the purchase of goods and services
• Trade credit facilitates the purchase of supplies
without immediate payment
• Trade credit is often used by business
organizations as a source of short-term financing

Trade Credit
• Trade credit is the largest use of capital for a
majority of business-to-business sellers in the
United States
• For example, Walmart, the largest retailer in the
world, has used trade credit as a larger source of
capital then bank borrowing
• Trade credit for Walmart is 8 times the amount
of capital invested by shareholders
• Trade credit is the second largest source of
capital for Walmart, retained earnings is the
largest

Trade Credit
• Trade Credit is usually offered with terms
including:
• Net 10
• Net 15
• Net 30
• Net 60
• These forms of trade credit specify that the net
amount is expected to be paid in full and
received by seller within that 10, 15, 30, or 60
day time period

Using Vendors to Build Business Credit
• Trade credit is VERY popular in the United
States
• But, of the millions of vendors who issue
credit, over 97% of them do not report to the
business credit reporting agencies
• When using trade credit to build your business
credit profile, it’s essential you find vendors
that:
– Will give you credit without a personal credit check
– Report your credit to the BUSINESS credit reporting
agencies

Vendor Account Management
• Once you have vendor accounts reported with
Dun & Bradstreet, the key to management is
paying your bills on time or early
• 100% of your D&B Paydex score is based on
your payment history
• If you pay your bills as agreed, you’ll get a
good score
• The earlier you pay your bills, the higher your
scores will be

Dun & Bradstreet’s Business
Paydex Score
Are based on Payment History
–Expect payment may come early 100
–Payment is prompt 80
–Payment comes 14 days beyond terms 70

Vendor Account Management
• D&B’s Paydex score has an aspect known as
weighted average
• With the weighted average, the HIGHER the
limits on your accounts, the more weight it
has into your scores
• So, when managing vendor accounts, make
sure you pay the highest limit accounts first

Experian Business
• Experian focuses on providing quality data and
analytics to businesses to help them better
assess risk
• They possess a massive consumer and
commercial database that they manage to
help businesses obtain the best and most up-
to-date information
• Experian is the 2nd
largest business reporting
agency behind Dun & Bradstreet

A typical Experian business credit report will
include…
• A company’s registration and ownership
details
• Trading addresses
• How quickly the business is paying its bills
• A credit risk score
• Court judgments
• History of financial performance

A typical Experian business credit report will
include…
• Business Background Information
• Company Financial Information
• Credit Score and Risk Factors
• Banking, Trade, and Collection History
• Liens, Judgments, and Bankruptcies
• Uniform Commercial Code Filings

Experian’s Intelliscore
• Experian’s most recent score system is
known as Intelliscore Plus, which they boast
of as the next level in credit scoring
• This method was released in 2008
• Intelliscore Plus takes into account hundreds
of variables to offer a business score
between 0-100, with 100 being the highest

Experian’s Intelliscore Breakdown
• Historical Behavior 5-10
• Age, Industry, Size 5-10
• Credit Utilization 10-15%
• Derogatory items 10-15%
• Payments, Balances 50-60%

Experian’s Business Credit
• 85% of Experian’s business score is
based on payment history
• So, they key to building business credit
with Experian is to get accounts that
report to them, and pay those accounts
as agreed or early
•

Experian’s Business Credit
• Start with vendor accounts at places like
Unline, Quill, and Seton
• Once you have 3-5 accounts reporting with
Experian, start applying for store credit
next… leaving your SSN off the application
• With about 10-15 accounts reporting across
all reporting agencies, you can get fleet and
cash credit, and start qualifying for loans

What is a CPN?
• A credit privacy number or credit profile number,
CPN, SCN, or Secondary Credit Number, is a nine-
digit ID that can be used as an identifier in cases
where you need privacy
• Like a SSN, a person can only have one CPN
• It’s used as a unique identifier for your financial
transactions and lets lenders and credit reporting
agencies keep an eye on your borrowing history

What is a CPN?
• A CPN is mostly used in cases where
someone requires extreme privacy
• For that reason, it’s popular among
elected officials, celebrities and people in
witness protection

Why Use a CPN
• The theory is if you give lenders a different nine-digit
number, they won’t be able to find your legitimate
credit reports
• And if they can’t find your legitimately lousy credit
reports, they’ll approve your applications and start
reporting the account information to the credit
bureaus using the CPN, thus establishing a new
credit report for you that is not connected to your
legitimate credit report

Why Use a CPN
• The supportive argument is that you’re not
required to give a lender your Social Security
number (SSN) when applying for credit, which is
100% true
• You can certainly choose to withhold any
identifying information from your lenders, but
they can also choose to deny your application
as a result.
• What you CAN’T do legally is miss-represent
your SSN

Why Use a CPN
• If you choose to withhold your SSN from a lender
and you wanted to not become a criminal, you’d
have to go no further than leaving the SSN box
empty
• If you chose to place one of these CPNs (or
another fake nine-digit number) in the SSN field,
you will have just committed a Federal crime
• In fact, according to the Federal Trade
Commission lying on a credit application and
misrepresenting your SSN are both Federal
crimes

CPN Fraud
• You cannot use a CPN in place of your
SSN… it’s actually FRAUD!!!
• And you can face being charged with ID
theft, if the SSN was stolen

CPN Summary
• CPN do exist, and are legal
• But their intent is for specific situations that warrant
privacy
• CPNs can NOT legally be used in place of a SSN,
for any purpose including the application of credit
• In doing so you are lying on a credit application
and misrepresenting your SSN… both of which
are Federal crimes

What is a CPN?
• A credit privacy number or credit profile
number, CPN, SCN, or Secondary Credit
Number, is a nine-digit ID that can be used as
an identifier in cases where you need privacy
• Like a SSN, a person can only have one CPN
• A CPN cannot by used legally to apply for
credit in place of a social security number

Why Use a CPN
• If you chose to place one of these CPNs (or
another fake nine-digit number) in the SSN
field, you will have just committed a Federal
crime
• In fact, according to the Federal Trade
Commission lying on a credit application
and misrepresenting your SSN are both
Federal crimes

CPN Fraud
• Anyone can get a CPN for free
• So don’t be fooled by anyone selling you a CPN,
especially if they tell you it’s already “established”
• In many of those cases, the CPN they are selling is
actually a real person’s SSN, maybe a child or
someone who is deceased
• Tread lightly with anyone who is talking about you
getting a new identity, that doesn’t really exist

CPN Fraud… What to Look For
• The company tells you it’s perfectly legal to
apply for credit using a CPN in place of your
SSN
• The company tells you to use an EIN to apply
for personal credit
• The company demands that you pay for a
CPN
• The company promises that you’ll no longer
be associated with your old credit accounts

From Consumer FTC.Gov
• Companies promising a “new credit identity” say they can help you hide bad
credit history or bankruptcy for a fee. If you pay them, these companies will
provide you with a nine-digit number that looks like a Social Security number.
They may call it a CPN — a credit profile number or a credit privacy number
• The credit repair companies may tell you to apply for credit using the CPN,
rather than your own Social Security number. And they may lie and tell you that
this process is legal. But it's a scam. These companies may be selling stolen
Social Security numbers, often those taken from children. By using a stolen
number as your own, the con artists will have involved you in identity theft
• If you follow a credit repair company’s advice and commit fraud, you might find
yourself in legal trouble. It’s a federal crime to:
• lie on a credit or loan application
• misrepresent your Social Security number
• The bottom line is that if you use the number they sell you, you could face fines
or time in prison

From TransUnion…
• According to Cliff O’Neal, TransUnion’s spokesman,
• “TransUnion does not use these so-called CPNs; we
accept and report SSN as an identifier. TransUnion
has checks and balances in its systems if someone
attempts to use these numbers in place of their
issued SSN. For example, we provide alerts
designed to help creditors discover if the number
provided in the SSN field on a credit application is not
a valid SSN, or is an actual SSN of another
consumer.”

From Equifax…
• According to an Equifax spokesperson,
• “Equifax does not issue or recognize
CPNs as an acceptable form of personal
identifiable information.”

From Experian…
• According to Experian,
• “Experian does not issue such a number
(CPNs) and does not recognize them as
valid. If a person uses a number other
than their own Social Security number
they may be at risk of committing fraud if
that number is a valid Social Security
number belonging to another individual.”

From the Social Security
Administration…
• During a 2011 Social Security Administration field hearing, Robert
Feldt, Special Agent-in-Charge of the Social Security
Administration Office of the Inspector General’s Dallas Field
Division said,
• “Numerous unscrupulous agencies and organizations are
providing CPNs—also known as Credit Profile Numbers and
Credit Protection Numbers—for a fee, as a method of creating a
new, separate credit file for individuals with low credit scores,
bankruptcy, and slow or late payments on their current credit
record. Websites offering CPNs advertise a new credit file with
the use of a CPN, at costs ranging from about $40 to as much as
$3,500. Despite what many of these credit repair Websites imply,
consumers should know that CPNs are not legal.”

From the FTC…
• The Federal Trade Commission has also weighed in on the subject:
• “Companies promising a ‘new credit identity’ say they can help you hide
bad credit history or bankruptcy for a fee. If you pay them, these
companies will provide you with a nine-digit number that looks like a
Social Security number. They may call it a CPN — a credit profile
number or a credit privacy number.”
• Often, scammers purporting to be selling CPNs are selling stolen Social
Security numbers instead, the FTC warns. Scammers often use Social
Security numbers stolen from children for this purpose. And you could
actually unwittingly be committing identity theft if you apply for credit
using a stolen Social Security number

More From the FTC…
• Promoting False Identification Numbers
To Create A "New Credit Identity" Is
Illegal: FTC
• https://www.ftc.gov/news-events/press-
releases/1999/10/credit-identity-
defendants-settle-ftc-charges

CPN Summary
• CPN do exist, and are legal
• But their intent is for specific situations that warrant
privacy
• CPNs can NOT legally be used in place of a SSN,
for any purpose including the application of credit
• In doing so you are lying on a credit application
and misrepresenting your SSN… both of which
are Federal crimes

Shelf Corporations
• A shelf corporation is a paper or shell
corporation that is administratively formed
and then "put on a shelf" for several years to
age
• The term "shelf" or "aged" only
refers to the fact that the
company has already been
filed and is sitting "on a shelf"
waiting to be purchased

Shelf Corporations
• A Shelf Corporation is a company that was
created years ago for the sole purpose of
being sold in the future simply for the value of
its age
• A person forms a company and does nothing
with the corporation other than file the annual
reports and cover the annual fees
• Once the corporation is a few years old it has
a sort of value for the right person

Negatives of Shelf Corporations
• Shelf corporations are not looked upon
favorably by regulators, lenders, or the
business reporting agencies
• Many say they are unethical, borderline
illegal, and some call them a fraud

• From Dun & Bradstreet…
• “It is unclear whether it is legal to use shelf
corporations to access credit. It is clear,
however, that this is a deceitful, unethical
maneuver that serious entrepreneurs
should avoid.”

• "Shell and shelf companies…can be created domestically
or in a foreign country. Shell and shelf companies are
often formed by individuals and businesses to conduct
legitimate transactions
• However, they can be and have been used as vehicles for
common financial crime schemes such as money
laundering, fraudulent loans and fraudulent purchasing
• By virtue of the ease of formation and the
absence of ownership disclosure
requirements, shell and shelf companies
are an attractive vehicle for those seeking
to conduct illicit activity."
• FDIC Special Alert, April 24, 2009

• Is this practice illegal?
• “Our conclusion was that it is clearly unethical and
possibly illegal. I understand that small business
owners are strapped for cash and unable to get loans,
but they should stay away from these things. If you
can’t get a loan from a bank, you need to look at other
options and maybe even close your doors. It’s a bad
time, but if you can’t secure capital with what your
company has in assets, liabilities, and cash flow, you
shouldn’t try to fool a financial institution.”
Businessweek

• Many lenders now look at the bank account
start date as the corporation start date
• Most shelf corporations don’t come with
established bank accounts
• Some shelf corporations have actual credit
problems making it harder to get funding, not
easier

Shelf Corporation Funding
• ANY business can build business credit
without needing a shelf corporation
• Most credit issuers do not look at your
time in business, they look at how many
tradelines you have
• You can build initial business credit using
vendors like Uline, Quill, and Gemplers

Shelf Corporation Funding
• With 5 accounts reported, you can get
store credit
• With 10-15 accounts reported, you can get
fleet and cash credit
• And you’ll have built a LEGITIMATE
business credit report that won’t get
flagged and shut down

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