RMS Inc stated that they have noticed a market trend towards a desire to start with an existing business that has everything needed to start  raising capital and begin marketing a viable service from the first day out of the box.

The big advantage to buying one of these existing businesses is that that you can save a lot of time trying build business credit by establishing your initial trade lines to get both a paydex and intelliscore.  You also save a considerable amount of time with an out of the box professional business plan and financials.  In additions these existing businesess come with aged bank accounts as well.

These existing business come in two main categories: existing corporations with a complete profile and a viable marketing plan ready to do business and those that are exiting corporations with a complete profile that don’t have a viable marketing plan ready for business.

RMS Inc has notified us that the first existing Business that they will be offering falls in the first category and has everything listed plus an exciting business model that’s ready to explode in the digital sign market!  Their first offering is a California S Corporation [name withheld] poised to explode in the digital sign market place.  It comes with everything you need; Aged Bank account, Website and multiple domains, 3 years old articles of incorporations, Professional Business Plan, Financials Statements, Paydex score with 5 trade lines reporting, fully compliant with CA laws and squekey clean no lawsuites, liens or judgements.

Their client had requested that this corporation be listed for $122,000.00 and has expressed a willingness to stay on as an officer if he is requested to aid in the tranistion.

The digital sign business has explosive growth potential as many cities have begun to approve them along side their highways and there are many other venues clamoring for them.  This business also has an exciting marketing plan making it easy to acquire locations to place your signs and even easier to line up advertising!

RMS helps firms establish business credit separate from their personal credit by selling aged corporations. Aged Shelf Corporations are merely articles of incorporations that have been filed with the Secretary of State but have never been used to conduct business. Hence they have been sitting on the ’shelf’ aging like fine wine.

Why are Aged Shelf Corporations in demand and helpful for building business credit? Primarily because they are not new businesses. Most Businesses go out of business within the first three years and therefore Banks prefer not to lend money to Businesses that have the odds stacked against them. An Aged Shelf corp allows an entrepreneur to get over that hump of being new by buy buying an existing business that has been aged and is sitting on the shelf waiting for action.

Traditionally an Aged Corporation that is at least 2 years old is sufficient to begin building credit since most Business Credit Applications require newer businesses to sign personal guarantees. Of course if you appear older than 2years then the perceived risk is lessened in the eyes of most lenders and therefore the older the corporation that you purchase the better you’re viewed by creditors.

There are some creditors that require that a corporation be older than 2 years to avoid signing personal guarantees. Also, the credit lines may be easier to get and come with higher credit limits sooner the older your corporation is. Of course the older your corporation is the better you will look in the eyes of your prospects who often evaluate your business much like a creditors would before agreeing to do business with you.

Therefore RMS has announced that it will begin selling 10year aged shelf corporations for a special price during August. During August you can get a 10 year aged shelf corp for only $5000.00 and you still get their FREE Business Credit Builder Service.

Please leave a comment if you find this information helpful or would like a blog on a more specific topic.

If you found this post intersting then you will probably enjoy the Press Release:

Entrepreneurs Ignore Building Business Credit to their own Detriment!
May 16, 2008
It’s normally assumed that Building Business Credit is something for entrepreneurs with Bad Credit in an effort to get around personal credit checks. However, entrepreneurs with excellent credit ignore credit to their own detriment!

Even an unpaid collection of $30 can hurt your credit score by 20 points or more. So the quickest way to repair your credit is to call up the collection agency that you owe the money to and ask the magic question, “Do you delete?” You are asking the agency to delete their collection from your credit report and instead report the account as “PAID” or “PAID AS AGREED.” Many times, the collection agency will say, “Yes” in return for paying off the debt. By Naomi M.

In our last, repairing your personal credit, post we discussed getting an accurate score or at least the one lenders will be looking at from www.myfico.com.  In this post we will be discussing the first thing you can do when you find negative information on your credit report.

As the quote above mentions even collections as little as $30 can drag you score down as much as a $300 collection.  So one of the easiest steps you can take to clean up your credit is to find the lowest collections on your credit report and identify the creditor’s contact info and your account number with the collection agency.

You can begin my calling the collection agency and having them locate your account.  Never admit that the debt is yours but you can say that it would be a hassle to dispute this and since it’s such a small amount your willing to pay it off if they will give you a letter of deletions.  Make sure you ask them to check with the client and often they will let you pay it off and send a deletion ‘tape’ to the three credit reporting agencies.

You can ask for a deletion letter and then send those off to the CRA on your own but I have found that when the Collections Agency say they will delete a negative account they usually do.

One thing you should NEVER do is pay off a collection that a creditor refuses to delete…. simply marking it as a paid collection will not improve you score and make it harder to dispute!

I wish you all much success in your efforts in repairing your personal credit files.  Please check back here for more helpful tips on repairing you credit reports and also check out our information on Building Business Credit with no social security number or no personal guarantees!

Today personal credit scores have a dramatic impact on everyone’s lives. If you have a high score you can get loans, buy a house or car that you want and get a great interest rate. if you have a bad score then you may be declined for all of the above, plus be unable to get a great job and/or end up paying onerous interest and large down payments to get the things you need in life.

Needless to say interest in Credit reports and scores has been skyrocketing. Now more than ever before consumers are aware of the impact their credit score can have on their life and are more concerned about knowing in advance what their scores are and if possible trying to improve them.

Credit repair has become a very popular term and we at RMS have been asked to provide some helpful tips to our clients on this subject and we have decided to make them available on our blog.

The first thing you need when considering credit repair is to know what your 3 credit reports contain and what you scores are. However, you need to be away that the 3 major credit reporting agencies (CRA), Experian, Equifax/CSC and Trans Union have changed their scoring methods. The problem is that the new scoring model has not been adopted by the market place so the scores you get from the three bureaus will not be the same one that determines your credit worthiness.

This report on NPR goes into more detail about the new model and is a very interesting listen. What you need to be aware of is that in order to get a accurate score you need to get your report and score from www.myfico.com. Once you have your score you need to make sure you have the accurate account numbers for all your accounts. Also, if you can’t afford a report from myfico.com you can get a free one each year or if you have been declined for credit buy one of the 3 major CRA; just don’t pay extra for their scores.

You’ll notice in the above credit application that you can’t avoid giving a personal guarantee without having a corporation that is at least 2 years old.  Many people are looking for shortcuts when they start down the path of building their business credit but if you are planning on establishing credit as a sole proprietor or with a new Corporation or LLC then you’re headed down a dead end road.

Most know why they should avoid signing a personal guarantee but I’ll briefly mention that if you sign a personal guarantee then you will have to divulge you Social Security number and the creditors will pull a hard inquiry, if you get approved a new credit account show up on your personal credit file.  Both the new inquiry and the new credit will drag your score down.  Also you won’t be able to use the full credit line without seriously hurting your credit use of you credit score and seriously harming your personal credit report.  Furthermore, if you are late paying your business card or worse if you ever default then you will destroy both your personal credit file along with your business.

There are many other reason why you should avoid a personal gurantee like the plague!  The least expensive short cut out there is to buy an aged corporation that will allow you to show creditors the longevity that they are looking for and enable you skip the Personal guarantee section on Business Credit Applications, like the one we have above.

We have compiled our Top 10 most common mistakes that businesses make when trying to establish their business credit or corporate credit.

1. Trying to cut costs by using your home address for
your business address.
2. Using a P.O. box or mail drop location for your business address.
3. Not having a separate business phone number from your home phone; also not having a fax number.
4. Not getting listed in 411 directories
5. Having incorrect info in your 411 business listing.
6. Not funding your bank account with at least $10k and waiting for it to season.
7. Setting up trade lines without knowing if they ‘really’ report to the business credit bureaus.
8. Trying to build business credit without a valid corporation.
9. Attempting to build business credit with a brand new corporation.
10. Paying D&B for their credit builder program.

These are just a few of the common mistakes we have seen businesses make when trying to build business credit.  There are plenty more; including not knowing where to apply and not knowing the underwriting guidelines in advance.  Of course, the most common mistake is trying to speed the process up.  Slow and steady always wins the race!

We wish you success in establishing your corporate credit.  Feel free to contact us for more helpful tips.

Here’s what you may be facing if you don’t have decent credit…

Looking to buy a used car dealership, or a Pizza Hut franchise? Thinking of selling your company? A new marketplace, BizTrader.com, is ready to play matchmaker. Officially launching Monday after months of development and two weeks of public beta testing, New York City-based BizTrader.com aims to become a one-stop shop for buying, selling and valuing small businesses. It’s not the first company to take on the market, but it hopes to stand out with two distinctive advantages: a global focus and broad search-engine exposure. While online brokers traditionally keep their listings proprietary to their own site, BizTrader.com will (for an added fee) push its listings out to broader search services like Google and Craigslist.  

 This is interesting, read it! 

Proof Building Business Credit allows you to get Master Cards and Visa without signing a personal guarantee or using your Social Security number.

There is a lot of hype on the INTERNET about Building Business Credit and with the Credit Crunch in full swing the interest in this subject has skyrocketed.  However, even diligent research into Building Business Credit can still leave you skeptical that it can really work and prevents most from taking advantage of this exciting way to separate your personal credit from your Corporate credit.

We at RMS have tried to figure various ways to convince prospects that indeed it is possible to Build Business Credit without using your social security number or signing a personal guarantee; but if you call around to a few banks or credit cards you will get laughed out by bankers that tell you this is impossible.  So it can be a hard sell and it’s easy not to trust something that sounds too good to be true especially over the INTERNET.

We decided that the best way to show proof that it really is possible to Build Business Credit without signing a personal guarantee and not giving your social security number was to get a recording from a Major Master Card Credit Department to saying it from their own mouth.

This is exactly what we have done… we have recorded a call one of our clients made into the customer service department to see exactly how his credit card was set up.   He asked if they had his social security number and if he had any personal guarantee on the card.

The customer service rep indicated that it looked like they only had his Tax Id number but asked our client to hold while she checked with the New Accounts department to absolutely verify that there was no social listed on the account and that there was no personal guarantee.

After holding for a while the rep comes back with some good news and right from her mouth says, “no there is no social on this account and there is no personal guarantee”. To hear the entire call check out this link: Proof Building Business Credit Works.

Now there shouldn’t be any excuses left that can hold you back from getting your Shelf Corporation started and Building Business Credit today.