Build Business Credit FAST - 2010 Course Audio Transcripts

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					     Build Business Credit FAST - 2010 Course Audio Transcripts


My name is Monica Main and welcome to the world of corporate or business credit. I
am going to share with you a couple of details and secrets about exactly how you can
make your lifestyle completely different by understanding the power of corporate credit
and how you could utilize it to gain a massive amount of wealth in your life. A lot of
people have a big surrounding confusion about the difference between personal and
corporate or business credit. The problem with personal credit is no matter how perfect
your credit score is you are going to be limited to the amount of opportunities you could
take advantage of if you want to be part of a I guess you could say, “the big time” or if
you want to establish long-term or huge amounts of wealth. Personal credit, good
personal credit, is good if you want to get a good car, a decent car at a good interest
rate or if you want to purchase your own personal property for your own use, but if you
have any aspirations as an entrepreneur to become either a real estate investor to
purchase apartment buildings or commercial retail storefronts or if you want to get a
business line of credit for maybe an Internet business you want to get started or a
different type of business. Maybe you have a clothing line that you’ve always dreamed
of getting started, but you can’t get a business loan for it and personal credit can’t take
you where you want to go if you want to become an entrepreneur or if you want to
become a huge real estate investor. In fact, a lot of people who have experienced
investing and real estate know that you can only use your personal credit so far. If you
have an 800 plus credit score, and you are trying to purchase a bunch of different
apartment buildings or multiple unit homes, buildings rather, or single family homes to
rent out, you’ll notice that by your fourth or fifth property, the bank will stop lending you
money on your personal credit, even if you have a perfect credit score because your
debt to income ratio will be a lot lower. And so even if you have perfect, perfect credit
your opportunities are limited if you want to seize the opportunities that are out there.
Now, say for example, you want to acquire a lot of apartment buildings or you want to
acquire a lot of different real estate or you want to start a business and you need a
business loan. You want a business line of credit or you even want to lease a building
or a warehouse or you want to lease or purchase a car and you don’t have good                                                      Page 1
     Build Business Credit FAST - 2010 Course Audio Transcripts

personal credit to do that, you can actually establish a really good strong business line
of credit within 90 days and be able to seek out and get a lot of the opportunities that
multimillionaires and multibillionaires are able to utilize and get because of their
corporate credit that they use. So what will happen is you will stop using your personal
credit, especially for business matters. In fact, if you use your personal credit for any
kind of business matters including purchasing real estate or trying to get a business
loan that is completely foolish on your part and you should stop doing that. If you have
good perfect credit, you should not be getting business loans or real estate with that
credit. You should be getting separate business line of credit in order to be able to
make those purchases. If you have bad personal credit, well, this is even good news for
you – even better news because you can utilize and get those same opportunities that a
lot of people are able to get as being multimillionaires or multibillionaires because you
will be able to reestablish a complete credit profile under a business name. Your
personal credit will not be relevant at all and you will be able to access business lines of
credit anywhere from $25,000 to $500,000 and that’s just in the beginning. Later on
you’ll be able to get lines of credit for a million or several million dollars. You’ll also be
able to purchase unlimited amounts of real estate.          Corporate credit is a little bit
different. Banks look at corporate credit differently than they do personal credit because
personal credit is looked at as an individual having to pay off a balance of some kind.
So for example, if you get a personal credit card, and say your limit is $5,000, your bank
that issues the credit card is looking at you as an individual who is getting this credit
card, and they are looking at you as an individual who has a job. Can he pay off the
credit card balance? Does he have enough money coming in etc, etc? When you are
applying for a credit card as a business, you have a different necessity level. So not
only are you not looked at as a personal person who is getting a credit card for probably
someone who is going to be buying clothes or different personal items with the card, the
bank looks at you differently as a corporation and they look at you as someone who is
going to be buying business items with the credit card. So not only your business credit
card start off with a limit of usually a minimum of $10,000, but also if you have the
crappiest worst personal credit profile, you can establish clean, really good, solid
business credit within a 90 day, usually 90-120 day timeframe and you can qualify for                                                       Page 2
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these $10,000, $20,000, $50,000 credit cards. They will be corporate credit cards. You
can also qualify for these business lines of credit. You can qualify for business loans.
You can qualify for real estate loans, commercial real estate loans, and it is a different
ball game. So now you are going to be playing the ball game on the same level as
these multimillionaires and multibillionaires who are utilizing these same credit
techniques. And so you can get wealthy using other people’s money and that’s the
whole goal. That is the whole key here so I don’t know what your personal goal is. I
don’t know if it is to buy real estate or if it is to buy a business or start a business from
scratch or start an Internet business or start a clothing line or whatever your goals are,
you can get rich by using other people’s money. People like Donald Trump and people
that are multi-multibillionaires and multimillionaires also have gotten there by using
other people’s money. Do you think that when Donald Trump is looking at a piece of
real estate – do you think he is writing a check out of his business account to pay for
that real estate? The answer is no. In fact, I don’t even think he puts a down payment
down. If he does, it’s very minimal and he usually uses partners and other people’s
money and this is all based on his credit profile. His business credit profile. Donald
Trump, as you know, has filed for bankruptcy twice and yet he is still able to tap into
these powerful business credit secrets because he knows the ropes. He knows how the
whole thing works. Just because you are a little guy out there in the world doesn’t mean
that you shouldn’t know these secrets and should not be able to tap in on building
wealth with other people’s money. So you can easily, easily build a corporate credit
profile and use this to get credit cards, corporate credit cards. Like I said, they don’t
start with the tiny, tiny – I don’t know if you are familiar, but if you have bad credit or you
are a student and you are getting your first credit, your personal credit card the first time
out, you are going to get a limit of between $250 and $500, but when you are a
corporation, with a clean credit profile, no matter how new you are, if you are starting
out, you are going to get a minimum credit card of $10,000 with a $10,000 unsecured
limit. These business lines of credit are also unsecured as well. Again, banks look at
business credit differently because they are looking at it as oh, this person has a
business. They are going to be using this for inventory, for marketing, for employees.
They are not looking at you as a single person using this for a nail appointment or for                                                        Page 3
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clothes at the mall. So it’s a different perspective. It’s a different priority set altogether
for these banks to give corporate credit out. So I recommend that you use this not for
personal purposes. I recommend that you use this corporate credit to be able to build
that business that you have always wanted to build and to realize the financial dreams
that you do have, but a lot of times what stops people is that they don’t have access to
the cash for real estate deals. Cash is a problem sometimes for people getting started
out. for new businesses, cash is sometimes a problem for those just getting started out
and so how powerful would it be for you to finally start that business if you have instant
access to a business line of credit, say of $100,000 or $200,000, which is very, very
easy to get within a very short period of time. Now I want you to be careful because
there are a lot of companies out there selling stuff. There is anything from the fly-by-
night flimsy E-book type of offers for $39.00 to attorneys asking for $15,000 to be able
to set up some credit profile for you to monthly fees that people take from you to be able
to build a credit profile or consult you in some way and usually those are outright scams.
So you should be aware. You don’t want some cheapy little E-book that’s not going to
tell you anything and you don’t want to go with the expensive attorney who is probably
just going to charge an arm and a leg for barely doing any work at all for you. So we
offer our course for a very, very fair price, I believe, for what it is. I teach you everything
you need to know including all the stuff that those flapping in the breeze E-books don’t
teach you, but I also give you specific resources on exactly where to go to get this
corporate credit. A lot of these E-books that are out there do not tell you who to apply
with to get this corporate credit and I teach you that kind of stuff.          It’s very, very
important.   It’s kind of pointless to go through the motions of setting up all of this
corporate credit and then not know who to get the money from when the time comes
and I teach you and I show you exactly who you need to go with and what companies to
apply for to get credit. There are a few different companies out there who all you need
is pretty much an EIN, which is an employer identification number which you get when
you set up your corporation and you apply for a credit card and you get an instant
$5,000 line of credit just – they don’t even check anything. They check absolutely
nothing. So I teach you exactly these types of places where you can get this type of
credit almost instantly like within a couple days you get a credit card. So you have to                                                        Page 4
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kind of be careful with what is out there and you also have to be careful with the fact
that sometimes these people who teach you how to set up these credit lines or these
business lines – profiles, these business profiles for your business credit. Sometimes
it’s not 100% legal and you need to make sure that what you are doing is 100% legal so
that there is not any potential legal problems down the road. My course is completely
100% legal. It’s been checked over by two attorneys and so you just need to be careful
with what is out there. Some people only teach you how to set up a Dun & Bradstreet
number and that’s not all you need in order to be able to do this and so I teach you
every single nook and cranny on how to build, successfully build business credit within
the shortest time so you can start accessing those lines of credit. Everything, by the
way, is unsecured. You don’t need any kind of collateral for any of these business
loans and start living the financial dreams that you deserve. You deserve to be able to
access other people’s money and loans to be able to start that business that you
wanted to start forever or buy that real estate that you’ve been having trouble buying
because you don’t have the money down and you don’t have the credit to be able to
purchase the property. So why should you put your business dreams on hold. Your
financial future on hold because you are a little guy in the world and multimillionaires
and multibillionaires are doing this all the time, but you don’t have the tools to be able to
access that and that is completely unfair and that’s why I am teaching you everything
that you need to know and if you have any questions, there is a link at the bottom. You
can email me personally. I’ll be more than happy to answer any questions you have.
See you at the top.
Hello, my name is Monica Main and welcome to the business credit seminar. I’m going
to talk to you today about the elements that you need to start building your business
credit, and in an effort to either expand your current business, purchase real estate, or
overcome some of the personal credit problems that you’re having.             I’m glad you
decided to start this journey of developing business credit. Now let me be clear right up
front. Business credit does not replace personal credit. So even though it will help you
overcome some of the obstacles that you’re having with your personal credit if you do
have damaged personal credit. I do strongly recommend that you do implement a
system to start rebuilding your personal credit because if you have rebuilt personal                                                      Page 5
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credit and outstanding business credit, you’ll literally be outstanding in the world of
being able to purchase things for your business – being able to purchase real estate.
You’ll be unstoppable at that point, and if you have stellar business credit and stellar
personal credit, there’s absolutely nothing in this world that you won’t be able to do,
whether you’re starting a new business, purchasing real estate, or whatever you decide
that you want to do. Another thing that I want to stress here is that some people think
that building outstanding business credit will be able to allow them some of the
unneeded indulgences in life, like buying a new Mercedes Benz for example, or other
things they seriously can’t pay for, and that’s not what this is for either. So get it in your
mind right now, that when you are building business credit, you’re doing for the
purposes of building business wealth, and of course overall personal wealth. You’re not
doing it to keep up with the Jones’s. You’re not doing it to buy the two million dollar
mansion on the hill. You’re not doing it to buy the big screen TV, you know on credit
through BestBuy. You’re not doing any of that stuff that’s non-business related. So
please, please stress for your own goals even, that any and all business credit uses will
be for the purposes of building business and building wealth. Now some of the things
that you can do when you have business credit, is you can borrow lines of credit from
the bank, on behalf of the business to either buy inventory, or to get equipment for your
business. You can purchase real estate. You can actually lease a warehouse or an
office for the business, under the business credit. There’s a lot of different things you
can do. You can lease vehicles that are specifically used for the business. You can
lease or purchase computers and computer equipment under the business. There’s a
lot of different things that you can do for a business. So if you really don’t know what
you’re using the business credit for at this point in your life, that’s fine. You know it’s
always better to set something up and get the business credit rolling now and then you
can find a use for it later. But it’s always worse when you need the business credit and
you don’t have it set up. So now is the time to set up business credit, even if you really
don’t have a specific use for it at this time because you will at some point. Every single
person in this world has either wanted to start their own business, or maybe even do
something on E-Bay where they wanted to buy electronic inventory and they needed to
buy it in pallets, instead of one by one, and it would‘ve been handy to have the business                                                       Page 6
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credit to be able to start that enterprise and they just didn’t have the right resources.
The difference between people that are super wealthy, and the people that just never
make it, as far as getting rich, or even nominally wealthy are those who have access to
other people’s money. Now that’s not always the case. I ‘m not going to say that
across the board that every single person that’s a multimillionaire or a multibillionaire
has borrowed their way to a fortune, because that would not be the case. The majority
of them had some kind of financial help in the beginning, whether they borrowed money
from their relatives to start their business, whether they sold off equipment in their
business, to be able to have a cash flow so that they can get inventory, whatever the
case may be. Everybody’s needed some kind of cash to get started. I don’t know of
any business where someone’s needed absolutely nothing to get started in a business.
Yes, there are businesses out there that need very little money to start. I’ve heard of
cases where people have only started with a couple hundred dollars in their business.
But let me tell you, when you do start a business with just a couple hundred dollars, no
matter what your success ratio is, it takes a very, very long time to be able to build that
business up to any degree, to be able to have a sizeable cash flow and yes, I have
heard of people being able to do it within a couple of years, but the problem is that you
can’t exactly, you know, multiply your efforts, if you don’t have enough business credit
to be able to get certain things you need for your business. So I don’t know what kind of
business you’re in or if you even have a business at this time, and that doesn’t matter at
this point. Basically, what I’m saying is, say for example you do have a small E-Bay
business for example, and you would like to expand it, but you don’t have enough
money to purchase additional inventory. So you wait until you could profit from some of
the sales from your current inventory before you can actually run out and buy any major
inventory. Well, let me give you an example of a really good friend of mine, and she
has a very, very successful e-Bay business, but she didn’t always have a successful E-
Bay business. In fact, in the very beginning it was faltering. I mean it was faltering to a
ridiculous degree, to the point where everyone would tell her, you know what, why are
you bothering? You know you’d make more money at a 9 to 5 job for minimum wage
then what you’re making on E-Bay with the amount of time and effort that she put into it.
She was working like 12 hours a day listing things, and she did not have the capitol to                                                    Page 7
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increase her inventory, and she was selling children’s clothing through E-Bay at the
time, and so I said she should have a method of building her business credit which she
did not have. She did not even have an LLC, or a corporation, or anything for that
matter. She was doing everything under a DBA, which I never recommend, by the way,
especially if you have an actual business. You should never be operating under sole
proprietorship, never. And so I showed her the very simple process of getting started
with a corporation and showed her the very simple step-by-step process of building
credit from that point forward. Within 90 days, she was able to go from absolutely
having no business credit whatsoever. By the way, her personal credit wasn’t very
good either. So she has no business credit. I was able to start her off with a very
simple step-by-step credit building process and within 90 days she was able to get a
ridiculous amount of credit, both with corporate credit cards and with a business line of
credit through her bank and with this business line of credit what she decided to do was
get a – there was this deal where she could get a complete I guess it was like a partial
warehouse full of inventory and it turned out to be I think a semi or two semis full of
inventory that was several pallets and what she was required to outlay for this
investment was – it was over $100,000. I don’t know the exact figure. What she had to
outlay to get this deal and it was all electronic equipment. It wasn’t even what she was
used to selling which was children’s clothing through EBay. So she took the risk. She
actually leased a warehouse with her newly built business credit and then took delivery
of the semi trucks that came through with all these pallets of merchandise. I remember
how excited she was but at the same time she was completely scared stiff and within a
course of – it was a short period of time because she had people in her family that
helped her list things and ship things and so forth. She actually ended up profiting a
ridiculous sum of money in the realm of several hundred thousand dollars just from the
sales of these pallets that she had received and unfortunately for most people that are
small sellers on E-Bay or small vendors period, in any kind of industry, they do not have
the access to the volume to be able to offer deals on specific things or even get it for a
good enough deal to be able to turn around and sell it for a decent profit.          She
happened it in a really good time because this whole situation was right before
Christmas. Not right before because she can’t really set everything up right before                                                    Page 8
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Christmas, but she did it in like September or October where she took delivery of these
pallets and was very organized in her approach on how to do this on E-Bay and she
was able to make an obscene fortune because she hit the market like right before
Christmas with all of her items.     So you know, her strategy was there, but I can’t
imagine thinking how limited she would still be if she never built the business credit. If I
had never told her how to build the business credit, she would have still been trying to
sell children’s clothing using a little space in her garage and I remember part of her
garage had actually gotten flooded because of a really bad rain storm and she had lost
some of her inventory during that and she would probably been in the same situation
struggling and now she has a very, very prosperous business. I think her numbers last
year were something in the – she had told me that she had done a little over a million
dollars in total sales last year because of this. And mind you, she didn’t even start
doing this last year until like I said, toward the end. She actually started building her
business credit last summer and finally was able to take delivery on this massive
amount of inventory in the later part of last year and she was able to do those numbers
within I think it was a little over one quarter, so about four months she was able to pull
those types of numbers. So I just want to tell you what the possibilities are in this

Okay, I have a couple of other stories that I want to quickly share with you because
I want to relay the power of building business credit and tell you exactly how important it
is which I am sure you already know, otherwise you wouldn’t even be bothering listening
to this or even gotten to the point where you found the system to be able to build a
business credit, but I just want to show you the importance of being able to change your
financial future, but again you are to use this corporate credit, or this business credit
and I will use those terms interchangeably, but they means the same thing. Business
credit and corporate credit are one and the same. But I want to stress to you the
importance of using this for the purpose of building business, and not for any other
personal gain in any way, other than to build a business, which will build your financial
future.   So you are not to be using business credit for personal means, including
purchasing your personal home, personal vehicles for personal use, or anything like                                                     Page 9
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that, because I want to stress the importance that’s the fastest way for people to get into
trouble credit wise, is when they start purchasing things that are unnecessary for the
purposes of personal use, when they don’t have any means to pay for it, like for
example a successful business that’s profitable, that would be able to pay for these
items and then when people get into trouble. In fact, that’s usually when people get into
trouble with their personal credit as well. So I just want to stress the importance and
remind you that you are going to be using this for business purposes only and no other
reason. Another story I want to share with you, is a lady that I knew long, long ago she
has been a family friend of ours for awhile, and she was always trying to get into some
kind of business.    She was actually in a MLM business, think it was Nu Skin or
something like that, and she was struggling to make that business work, and you know I
don’t know if you know a lot about multi- level marketing, but my experience with multi-
level marketing hasn’t really been 100% positive so far and if anybody could ever
challenge me with that, with an opportunity this is not a solicitation for people to be e-
mailing me a ton of opportunities, but if somebody could actually show me proof that
they actually made a significant amount of money with MLM or network marketing. I’d
certainly be willing to listen, but I’m not listening to a pitch or anything like that from
anybody. So this is not an open invitation for that, but I know there’s a possibility of
making tons of money in MLM, because I’ve heard of people doing it. But, you know I
haven’t personally be able to make anything like that work. So when my good friend
came up to me and was complaining that she could not make her Nu Skin business
work. That she been in for I don’t know a ridiculous number of years, like 5 or 6 years
and I told her, you know it’s obviously not working. You’re in this business for 6 years
now, and you’re not seeing any kind of profitability, in fact the amount of money that
would come in would cover her required auto ship payments – that she had to, you
know, have a certain amount of inventory that she had to pay for, in order for her to be
able to get any money from them. There’s just a whole thing that a lot of network
marketing businesses, companies require, and so she was just complaining that she
just wished that she could make this whole thing work better, and so you know she
wanted to, she had a really good idea actually. She wanted to start a business with her
own cosmetics, because I don’t know if you’re aware of what Nu Skin does, if you’re in                                                   Page 10
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the MLM or the network marketing you probably know that Nu Skin – I think they do a
lot of care products. You know Nu Skin, obviously, but I think they also do cosmetic too.
I’m not sure of that 100%. I didn’t know really what their whole line was about and I
really wasn’t interested, but I do know for sure that they have some really high quality, I
think it’s Swiss made skincare products and so she wanted to create her own line of
products. She actually had this guy who she met – I don’t know, some kind of seminar
or something.     He had a company that was able to formulate specific types of
ingredients to be able to create a line of skincare products and she was really excited
about the prospect of being able to do this because she knew she had the contacts.
She thought it was meant to be that she found this guy to be able to do this for her. So
she just did not have the money to be able to put into developing this product because I
think he was requiring an initial fee of like $30, 000 to $50,000 just to be able to
formulate a special ingredient for her that she would be able to formulate for her line
that she had. Plus she wanted to hire an attorney to trademark a specific name for her
line of cosmetics and that costs money too. Trademarks don’t cost a lot of money, but
when you are having an attorney set things up it’s never cheap. So she had this whole
plan and I thought it was an excellent idea and I told her, “You know what, why don’t
you build some business credit?” She had absolutely no idea what I was talking about.
She is like, “Business credit, what is that?” I’m like, “Well, you know, obviously when
you start a business you are going to start a corporation of some kind.” Which she also
didn’t have being in the MLM business, she didn’t need a corporation or didn’t think she
needed one anyway, which a lot of people in MLM that do have corporations, but she
knew absolutely nothing about it. So I gave her just a very simple step-by-step plan on
how to do it. It took her a little longer than most people that I coach on doing this to
actually set up the business credit because she didn’t – I don’t think she took it seriously
or understood the power of what she could accomplish by setting it up, but she did
begrudgingly follow these steps. Her first step obviously was to start the corporation
She didn’t have one. Get her EIN and then, of course, start her Dun & Bradstreet file,
profile with them, which if you don’t know what Dun & Bradstreet is, it’s basically like a
credit reporting agency for businesses. Just like Experian, Equifax, or TransUnion is for                                                    Page 11
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personal credit. So she started her whole profile and within six months, she was able to
build a pretty good amount of business credit. Not what I would like to see. It was a
little on the low side, but she was ecstatic none the less. She was able to get just under
$100,000 in credit between business loans and business credit cards and it was enough
to get her started with paying the $50,000 fee to formulate her ingredients, actually get
an inventory, and she has ended up setting up a website, had the help of a marketing
expert come in, and was able to pay for the marketing expert through her business line
of credit. She was able to start a successful cosmetic company online and she is doing
an exceptional job. Her numbers aren’t as good as what I think are a phenomenal
business, but her profit levels are really good. I mean, she – I think she profits at least
double, so if she puts in $50,000 in inventory a month, she will sell 100,000, so she
doubles her money. She is okay with that. She doesn’t want – she doesn’t have these
really lofty goals that a lot of people have. So her numbers were under a half a million
last year, I think. It was her first year out and she is doing much better this year, but
none of that would have been possible without the business credit. In fact, she would
have been still struggling with NuSkin, wondering why it’s not working, and going to
meeting after meeting after meeting, seeing these different MLM success stories and
wondering why she can never be like that. Now she has her own line of cosmetics. In
fact, she is talking about doing some make-up. She tries to do things along the lines of
Rachel Perry. I don’t know if you are familiar with Rachel Perry, but everything is like all
natural. Nothing in the ingredients that would damage the skin or anything like that. So
she is along the lines of doing everything natural and she is also now starting to put her
line in Whole Foods and some of the other I guess you could say health food stores, but
the Main chains like Mother’s and Whole Foods and that kind of thing. So she is
actually doing really well and I can actually see that this company will do phenomenally
once it is set up properly. She just doesn’t have a lot of business experience, but now
that she has the financial backing to be able to work her dreams in the manner that she
sees fit, she actually is starting to have people that are experts come in and show her
the ropes on how this works and so she is able to afford that now as opposed to before,
when she did not have any business credit. She was unable to afford even having
experts and consultants come in to guide her through the process of developing a very                                                    Page 12
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profitable business.   So again, just another example and I have a lot of different
examples like that, but I don’t want to waste all the time that we could be working with
building your business credit. I just want to give you examples of how this works, of
how powerful this could be and what a short amount of time you need to actually set all
of this up. Some people will tell you, you could set up business credit within a couple of
days. That is a little extreme. Some people will tell you, “You know what, all of those
people that say that you can set it up within a couple of months are liars. You actually
need years and years and years.” So I will actually tell you what the real scoop is as far
as exactly how much time you need. Exactly how to do this successfully, because
some people – the reason it takes so long is because they didn’t set it up properly in the
beginning and yes, it will take years and years if you don’t know what you are doing and
if you are not setting up the entire system properly from the beginning, then you are
going to have to backtrack a lot and that’s going to take a lot of time. So we want to do
everything right from the get go and I am going to teach you how to do that.
Okay, so your first step obviously in this process is to start a corporation or an LLC in
your home state and if you’ve already done that then we can skip this part for you. Just
listen to me though for a couple minutes because it’s not going to take that long for me
to go through this element to get started. If you already have a business, then that’s a
good thing unless of course, you have already started using it for business credit and
have damaged that business credit in any way. For example, if you have a business
credit card that you’ve stopped paying on or don’t have a good payment history with,
then you are probably have to start the whole process over and starting the whole
process over is going to entail getting a new corporation. Not trying to get a new EIN or
anything else. So if you believe that you have damaged some of your business credit
already, then you don’t want to carry on with that business. You want to start over with
a clean slate.   So to actually start a corporation, I recommend a company called They are online and they don’t do all states in the country. In fact,
they have a handful of states that they will do and a handful of states that they won’t do.
So I do recommend because they are really fast and proficient in
setting up corporations. I’ve set up numerous corporations with them and they are very
fast. I’m in the state of California and while other companies like legalzoom and some                                                   Page 13
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of the other online companies take forever to set up a California corporation,
Amerilawyers is usually able to do it within 2-4 weeks, which is very, very fast and I’ve
used a number of different corporation companies to set up corporations and they are
by – Amerilawyer is the fastest. They do also have attorneys on staff to be able to set
up your corporation as well as answer any specific questions that you have about
setting up your corporation and that’s one of the other reasons why I like them is
because they actually do have proficient staff in corporate law that could help you out if
you have any questions. So the states that they do handle, just to save you time, are
the following. They handle Florida, Nevada, Delaware, Illinois, California, New Jersey,
and New York. So if you are not in any of those states, then don’t worry about using
Amerialawyer and the best I can tell you without giving you any specific
recommendations is that if you are not in any of those states, go ahead and type in
Google your state for example.       Wyoming, and then put corporation services or
incorporating and Wyoming and you’ll have a million people come up and offer to set up
your corporation. Generally, to set up a corporation, it’s anywhere from $100.00 to
$300.00 depending on the types of services that you decide to get. You do have to talk
to someone from a legal standpoint to be able to help you decide whether you want a C
corp, S corp, LLC, whatever, but I will tell you from experience, from my personal
experience without giving you any legal advice, which I’m not allowed to do, is from my
personal experience, I’ve always chosen S corporations. The reason being is that you
don’t fall under the same taxation laws as you do with a C corp. A C corp, you are
taxed on two different levels. You are taxed on the profits of the business and then
when the profits flow down to you personally, you are then taxed again on those profits.
With an S corp, the corporation pays absolutely nothing for any of the profits in the
corporation so every year when you state that you have a certain amount of money in
profits, all of those profits flow down directly to you and then you as an individual have
to pay for the profits in your personal tax statement. So that’s the difference. That’s the
main difference but again, without getting involved in a lot of different legal counsel at
this point. That’s something that you have to discuss directly with someone who is
setting up your corporation to give you better perspective on exactly how it works. Then
the difference between a LLC, of course, and an S corp is a LLC is usually generally                                                   Page 14
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when you have more than one person in the company that you want to have equal
partnership with like maybe a partner, an equal partner. There may be several partners
and if you do not have partners and you just want to use yourself, and then you might
want to consider doing an S corporation instead of a LLC. Okay, so LLCs also provide
a little bit more extra protection. But again, you would have to discuss what the added
protection would be with an attorney and just about any attorney or any company that
sets up LLCs or corporations would be able to tell you the main differences between a
LLC and an S corporation. So with that aside, when you set up your corporation, it is
strongly recommended that you have a corporation service set up an EIN for you. An
EIN is an employer identification number that’s like the social security number of your
corporation. This is to be used for tax reasons only. A lot of people misconstrue what
an EIN is used for and it’s used for tax purposes only. You do not use it to build credit.
So the only person or the only I guess, entity that would ever – that should ever see
what the EIN is, obviously is the IRS, but of course, when you are setting up your
company through Dun & Bradstreet, which is, they would also ask you for your
EIN as well and you are going to have other people ask for your EIN when you are
setting up a merchant service to be able to accept credit cards, if that is what your
business does and so forth. You are going to have other entities ask you for your EIN,
but when you are applying for credit, you should only be using your Dun & Bradstreet
number which is a number that D&B will actually give you when you set up your file with
them or your profile with them. So that’s the first thing that you need to know is that you
are going to be setting up a corporation or LLC. You are going to be getting an EIN and
then you are going to be getting a D&B number at that point. Okay, so we’ve talked
about some of the basic groundwork. One of the things that I wanted to also share with
you is that if you are a foreigner, you are not a US citizen and you want to set up a US
corporation you can very well do that. There are many, many companies out there that
will be able to set up a corporation for someone who is not part of the United States. If
you are not an American citizen but you want to purchase real estate in the United
States, then you will have to do so under a LLC or corporation anyway. Same with
starting a business in the United States. You have to start a corporation or LLC in the
United States, but you are probably going to be required to have what is called a TIN.                                                   Page 15
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That’s a taxpayer identification number because that would be assigned for those who
do not have American citizenship or do not have a social security number and in
addition to your EIN you will probably have to have a TIN, which is a taxpayer
identification number as well, but again when you are setting up corporate services and
corporation services through a corporation formation company, they should be able to
explain all of that stuff to you, but I just wanted to let you know if you do want to do
business in the United States, and you are not an American citizen or do not have a
social security number, you don’t have to let that stop you. You can actually partake in
a lot of the opportunities that are available in the United States as long as you are able
to set up your corporation properly, by US standards. There are a lot of corporation
services even that offer mailbox addresses if you don’t have a US mailing address.
There are also services that shield your name if you have other problems; say for
example you have a lot of personal problems as far as IRS liens against you or a
bankruptcy that you don’t want anybody to know about the new business that you are
setting up. You might want to consider some of the protection services that some of
these corporation formation companies offer as far as using their name or their business
name on all of the corporate documents that are filed to shield you from having anything
shown as far as if you are in any kind of divorce proceedings or if you are going through
– if you have an IRS lien or judgment or anything like that you might want to protect
what’s being viewed as far as who owns the company and that kind of thing and there
are a lot of services out there that allow that. So setting up a corporation for the
purposes of credit is important, but also to be able to shield some of your other assets
and protect you from other problems that you might be having as far as the IRS
because so many different things happen to people. Maybe someone sued you and
you have a judgment against you personally. Maybe the IRS put a lien against you for
whatever reason. Maybe you are going through a bankruptcy or a divorce and you
have other issues, other pending issues. Whether they are resolved or not, that could
possibly take out your business. Especially if you become profitable at any time in your
business they are the first people in line with their hand out to collect and so there are
ways to protect yourself from that. From being monitored so closely because let me tell
you that people that have a judgment against you especially a government judgment                                                  Page 16
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like an IRS lien or something; they are not looking very closely at your personal assets.
Maybe they will do a sweep every so often or they will try to say, “Okay, what does Joe
Blow have in his bank account today?” You know what I mean, but they don’t do much
more work than that. If it’s the government they are not going to be turning over rocks
and leaves to try and find any change that you might have to pay them, but you want to
make it as difficult as possible for people to find stuff on you. Especially when you start
making a lot of money.      Trust me, people come out of the woodwork, even family
members come out of the woodwork trying to get money from you and suing you and
that kind of thing. You want to protect yourself as best as possible.

Now right how, in this time in our history we are literally expecting – well we are
experiencing a financial crisis, as you know. We are experiencing a possible future of a
lot of different changes, economically.      There are going to be definitely a lot of
government changes, especially pertaining to the United States. A lot of things are
changing right now, but I don’t think I really fully felt the issues and the problems that we
are having with our current economy until now and I think we are two – I don’t even
know how long we’ve been in the recession. I think it’s been two years now. I know the
real estate melt-down happened – started happening in the fall of 2005 and that’s been
four years as far as when I am recording this right now so there is a lot of changes
going on in the economy. I didn’t really realize the full throttle of what’s going on until I
think just this past week, believe it or not;        you are probably thinking I am in
Delusionville, but when I am working on my own goals and things are going well for me
financially and otherwise, I do pay attention to the news, but I try not to drown myself in
the negativity of what’s going on out there because you don’t become a productive
member of society if you are focusing on all the bad things that are happening. Trust
me, even if the economy was in perfect condition right now, the news would still have
tons of things to complain about and tons of negative things to focus on, and so I try not
to watch a lot of the news and what’s going on. But I think I realized the full essence of
what’s going on in this economy right now when I found out that my husband’s
stepfather was just laid off from a job that he has had for 30 years and this was a
company that he was expecting to retire with over the course of the next 3-5 years and                                                     Page 17
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it’s a company – it’s one of the largest insurance carriers that has been in the news
unfortunately a lot the last couple of years. He was with this one insurance company
that this one big conglomerate bought out and of course, there was a lot of press and
news on this particular company over the past year and then of course, they decided to
dissolve his division. Now someone else has taken over his division and then they
decided to dissolve it altogether which I knew was coming, but apparently he was in La
La Land and he didn’t see it coming. So he’s been a high manager in this particular
company for like I said for 30 years and now not only are they not offering him a
pension, but he has till the end of the year to find a different job. He is in his 60s and he
has no pension and no retirement to speak of and so I look at that situation as the baby
boomers were sold this lie all through their lives of building a really good reputation with
a specific company. Stay with the company. Get your degrees. Get a job with a
company for 25-30 years and retire with them and you should have security, financial
security. That is the biggest lie I think that’s ever been perpetuated on the American
public. But what really, really backed that lie for me was when my husband’s cousin –
she was in the higher, higher management in this one company in the foreclosure
department of all places which should be busier than hell right now and her entire
division – they were bought out by a Texas company and their entire California division
for foreclosures was just shut down and she has just been laid off too. To be honest
with you, those are the two people in my husband’s family that were not only making the
most amount of money per year, but they were also the most consistently employed at
the same company forever, literally forever for both of them. I think my husband’s
cousin was employed with this one particular bank for I don’t know, like almost 20 years
and of course, my husband’s stepdad was with the insurance company for 30 and now
they are both out in the street, have absolutely no other means to make money other
than the job that they had. My husband’s cousin should be okay because
she is young enough to where she could get another job elsewhere, but the problem
with her is that she did not finish her college degree and I know that a lot of companies
do look for that. With my husband’s stepfather, he does not have a lot of other options
because he is in his 60s and unfortunately in this day and age – I don’t know why this is
because I believe that older people do have a lot more wisdom to bring to the table, but                                                     Page 18
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for some reason a lot of companies are biased to hiring people that are in their 50s and
60s and beyond. So he is going to have a hell of a time finding something especially in
this current economy and the problem with both of them, my husband’s cousin and my
husband’s stepfather, is that they do not have an entrepreneurial mind. They don’t have
the mindset to be able to survive in any other capacity other than looking for another job
to replace the other one that they had just lost. So I guess the moral to the story is even
though becoming an entrepreneur can be difficult sometimes, in this day and age it is
literally your only option. I was not convinced of that any more so than just in this past 7
days, literally. I mean, I always knew it, but people in the family always looked at me as
being the black sheep because I wanted to always start another business and I have
several businesses. I don’t just have one type of business. I have several businesses
that I do. I have my real estate holdings. My real estate business, but I have other
different things right now. I’m working on starting a health and fitness company. It was
always my dream to have an infomercial on TV and I always really liked health
equipment and exercising and working out and that’s always been a passion of mine
since I was a teenager -- body building when I was 14, my goal was to be a body
builder. Of course, things change as you go along, but I still like health and fitness so
that’s another company that I am starting and I have other different companies that I
have, a variety of different companies out there that I am both partners with, but also the
holdings that I have that are 100% mine and so you know, I was always looked at in my
family as the black sheep for having all these different ambitions but now I am realizing
that it’s not just a luxury to be an entrepreneur. It’s now become a necessity. If you do
not have an entrepreneurial mind, you are not going to make it very far because you
cannot depend on a company to take care of you. You can’t depend on a company to
still be there when you want to retire. That used to be the mentality years ago. That
used to be the mentality even just two years ago; whereas you would stay with a
company for a number of decades and then the reward after all of that hell – the prison
confinement is that you were supposed to get a pension and they were supposed to
take care of you. You were supposed to get a 401k. The strange thing about my
husband’s stepfather is that when all of the changes were happening when his company
that he was with for 28 years at the time was just bought out by this other big                                                    Page 19
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conglomerate insurance company that had a lot of negative press over the past couple
of years, he was smart enough and he is a very conservative guy with investments and
everything, But he was smart enough to take his 401k out. He took it all out when all
the changes starting occurring and then it turned out in the last 30 days that everybody
who still had their 401k when the new company took over from the last company that
bought them out, they all lost their 401ks. Every single person who still had their 401k
in the company had lost it. Which to me seems criminal and illegal because to me I
thought a 401k was like a bank account. It was a savings account for you where you
contributed to it but the company contributed to it and I thought that that was your
money forever. I thought it was like a savings account that you have in the bank and
apparently not. Somehow legally, the company that took over which is a very, very
large insurance company that you would normally think of as being a legitimate
company. It’s not one of those fly-by-night types of insurance companies like Geico. I
hate to throw that out there because that is probably bad that I am doing that but you
know, some company like that that just seems kind of flighty, with their little lizard and
all their other stuff that they have. This is a company that is literally been around for
over 100 years, that is the first thing that you probably think of when you think of
insurance. They are the ones when they took over that stripped every one of their
401ks and I’m just looking at the situation going how is that even legal, but you have to
understand that if you are going to survive in the new future, in the new economy, you
have to become an entrepreneur.        However you decide to devise those tools for
yourself – this is one of the tools, by the way, acquiring business credit, but there are
other things that you are going to have to learn like marketing or investing or whatever
route you decide to take. I strongly suggest that you learn everything. You learn how to
market well, how to invest well because you are going to probably have to be very
diverse and know how to do a lot of things in order to survive in this new economy.

Okay, let’s get back on track here. I had just told you how to get an LLC or an S
Corp or whatever type of corporate structure you decide to start. It does not matter
what it is and you should probably speak with someone that works at one of those
companies either online or somewhere else that can set it up. I do strongly recommend                                                  Page 20
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that you set something up in your home state. Do not set something up in Nevada or
one of those other places if you plan on doing business, an actual business. If you do
not plan on doing business and you do plan on just using this as business credit and
you don’t want to pay the fees, like for example in the State of California, the Secretary
of State requires a fee of $800.00 a year – it’s actually I think the State Board of
Equalization – it’s $800.00 a year to retain your corporation, your corporate status and
it’s $25.00 a year with the Secretary of State. If you don’t want to pay those specific
fees, I’m not sure what they are for Nevada. I know there are probably fees for every
state, but if you do not have a physical business or a business that is going to be
conducted any kind of profitable business. For example, like an EBay business or I
don’t know, just a brick and mortar business of any kind, and Internet business,
whatever – if you plan on actually conducting any of those types of businesses, but you
just plan on building corporate credit for real estate or maybe a business you want to
invest in, do partnership with, whatever, then you might want to consider a state that
does not do those types of fees. Like I know, California is $800.00 a year. Whether or
not you actually do any sort of profitable business, they will still require the $800.00 a
year so you will have to check and see what Nevada requires. That would be the only
circumstance I would say to do a Nevada corporation. I like Nevada because
there are no taxes. There are no state taxes and I also like Nevada because it is very
easy to shield who the real corporate owners are. There are a lot of companies that
offer business addresses in Nevada. I also recommend Nevada if you are a foreigner,
you are not a US citizen, but you want to build corporate credit in the United States. I
do recommend that Nevada should be the place that you incorporate since you don’t
live in any specific state. Nevada should definitely be the place that you should go if
you are a foreigner and want to start building US business credit. So those are the only
circumstances that I would recommend Nevada and of course, if you live in Nevada or
operate a business in Nevada, Nevada is recommended. Nevada is usually good over
Delaware and Wyoming because just of a lot of different benefits that Nevada does
offer. But again, if you do plan on conducting any kind of business, then do it in – open
up the corporation in your home state, please. Because originally when I got started
years and years ago, I did have my Nevada corporations, and I was trying to function in                                                  Page 21
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the State of California and then I found that I had to transfer my corporation over with a
specific type of form and it was just kind of a headache and they told me if I didn’t do it
the I would be, I don’t know, accused of interstate something, something and I don’t
even know what it was. So basically they told me since I was conducting a business in
California, that I was going to have to shift my corporation to California. And that was
kind of a pain and it was more costly than if I had just would have set everything up in
California to begin with. So that’s just a word to the wise. You can do whatever you
feel you want to do. You could set up a Nevada corporation just for the purposes of
building credit and then later on if you decide to have an Internet business or something
else then you could open it in your home state. It’s completely up to you. Opening
corporations is so easy. It’s so easy, it’s ridiculous, and so it’s not a big, major deal if
you decide to do a Nevada corporation then later on when you decide to have a real
brick and mortar business or a home based business or whatever you decide to do, you
can actually start a new business in your home state. And the nice part about it is,
when you have a Nevada corporation, say for example, you decide to name it, say your
last name is Johnson, for example. So you have Johnson Marketing Consulting Inc. in
Nevada and you decided to build up all your corporate credit under Johnson Business
Consultant Marketing Consulting Inc., when you come to California, if you live in
California, and you start a California corporation, you can actually take the same exact
business name. You know, Johnson Marketing or Consulting, Business Consulting,
whatever I said, you can actually have the same one in California with the same name,
and it makes it much, much easier to build a new set of corporate credit because you
are going to be borrowing all the old corporate credit. So that is something you might
want to consider also is that if you don’t know what you are going to be doing
businesswise, then definitely consider the Nevada corporation. The problem now with
Nevada, though and this has changed just in the past couple of years, is that when you
try to open up a business bank account, usually Nevada now is requiring that you have
a physical address there and you actually sometimes have to show up to the State of
Nevada to open up your business bank account there. It wasn’t always that way. I
remember back in the day, even five years ago, when I could pick up the phone and call
Bank of America and have them open up a business account over the phone for me and                                                    Page 22
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I could have them do it in any state and now they don’t do that anymore and there are a
lot of banks that don’t do that anymore. So if you want to start a Nevada corporation
and you do not have any roots in Nevada, you don’t have any kind of address there or
anything, I strongly recommend that you talk to the company that is setting up the
Nevada corporation to see if they offer services to open up a bank account for you and
other things like that. I know there is a company that I used to use years ago, CHQ Inc.,
and they used to do Nevada corporations. I think they are still around. I think if you
Google them, that you might be able to find them, but they were really good a setting up
Nevada corporations and quickly and they also offered to where you could have a
physical address there, but you could also have them open up a business bank account
for you so with that said, let’s move on. The other thing that you need to be concerned
about when you start your corporation is where you are going to have your corporation.
You need to have a physical address and it’s not good enough to just have a P.O. Box
somewhere. It’s not good enough to have one of those UPS store mailbox addresses.
It’s a little tricky because of the way Dun & Bradstreet does things, okay? So this is one
of the things you really need to consider because if you make a mistake doing this, then
it is really going to unravel a lot of your time and effort in doing this properly. You know,
you are going to have to start over because it’s going to be – you are not going to be
able to build the credit that you need to build. Okay? So when looking for an address if
you don’t have a brick and mortar business or a warehouse or know somebody who has
a business that you can borrow their address with, then you are going to have to do
things a specific set of – there is a specific set of ways to do this, okay? Number one, is
you could consider going to one of those virtual office places. Now not every virtual
office will work. Like for example, there are a couple of them out there – I think it is
Barrington, or Barrister or something. You just type virtual office locations and whatever
town and whatever state you are in online in Google or somewhere and you usually get
a listing of different companies that offer that service. And so, you need to figure out if
they are in a building with other regular businesses. This is very important that you
listen to me here because this is going to make or break whether or not you are
successful with this program. What do I mean by that? I mean, some of the virtual
offices, they will actually be their entire building. Like for example, say their address is                                                     Page 23
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28410 Main Street, that is their address. And they occupy 100% of that building and it
is just an office building, but all they do is offer virtual office services, okay? They don’t
offer – they don’t even rent out specific units to anybody. None of that. They just offer
virtual – that’s not a company that you want, okay? You do not want a company that
just offers virtual services of say – some of them are as low as $25-50.00 a month and
some of them are like $200.00 a month and basically they take phone calls for you and
collect letters for you and mail them back out to you and stuff like that, but there is no
cubicle for you to be had there. There is no office suite for you to be had there. There
is nothing. They just only specialize in virtual officism, if you will. That is not a service
or company that you want to sign up with. You are looking for ones that follow one of
the following criteria and I am going to explain that to you in the next segment.
The criteria for the address that you are looking for is you are looking for one of the
virtual office – I mean, first and foremost if you can actually get a physical location
somewhere, a physical office, even if it is a tiny office, then by all means, go for that.
Okay, that’s the ultimate set up that you are looking for, but if you can’t do it that way,
that’s too expensive, that’s not reasonable at this time, whatever, you are not to use
your home address because that is considered a residential address. They are going to
know at Dun & Bradstreet so forget about that as being an option. If you happen to
have a family member that owns a business that is actually in a brick and mortar
business area or in a warehouse district or an industrial district, then by all means use
that address, but if you don’t have those options, then I strongly recommend that you
consider a virtual office address that follows specific criteria. Like it cannot be a virtual
office as I explained before in the last segment. It cannot be an office address where all
they handle is virtual offices. The ideal virtual office would be in a location where there
is other businesses. Okay, and there are two ways that this can happen. One, if there
is an office building where this virtual office service moves in and maybe takes I don’t
know, 50% of the building or 25% of the office building and they rent it out to be able to
provide virtual office services and then the rest of the building actually has normal
businesses in there. Maybe it has a couple doctors’ offices in there. Maybe a lawyer’s
office. Whatever it actually has – other different businesses in there with the same
exact address, okay? That’s the key. It has to have the same exact address. So for                                                      Page 24
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example, if the address is 1234 Shadow Street, the virtual office location has to have
1234 Shadow Street and then maybe some law office has 1234 Shadow Street and
maybe a dentist office also has 1234 Shadow Street and maybe there is some other
type of business consulting service in there and they also share 1234 Shadow Street.
How will you know if this is the case? It’s very easy with the Internet nowadays. Very,
very easy which is a good thing and a bad thing. The reason it is good is because it is
very easy for you to discover whether or not there is other legitimate companies at that
address. It’s very bad because it’s very easy for Dun & Bradstreet or any creditor to be
able to determine whether or not you have a legitimate business. Okay? So that is why
we are going through this extra step here is because just having what looks to be a
legitimate business address is no longer acceptable with the Internet nowadays. I mean
it is just too easy to have a UPS storage address.           Dun & Bradstreet know this.
Creditors know this now and with the power of the Internet, it is very easy to be able to
see whether or not that is a UPS store address or not. I personally use UPS store
addressees but for different reasons, not for building business credit. I actually have an
office, office with staff there and I have just found over the years that it is easier to have
a drop box to be able to collect payments from different customers or just to be able to
have junk mail come in and so forth. The reason being for that is because we had an
issue a couple of years ago where we had this psychopath of a customer of ours and he
was just off kilter mentally somehow and he was obsessed with one of the people that
worked in our office. She was a single girl in her early 20s and I guess she was just
really nice to people on the phone and maybe he took it the wrong way. I don’t know.
So he kept showing up to the office over and over and over again and to the point
where we actually had to have a restraining order. I actually had to have a specific type
of security system installed including one that locked the door automatically whenever
anybody actually went out or came in the door. It would lock behind them. I actually
had to have people ring the doorbell to be able to get into the front door and I actually
had to have people physically open the door to let people in. It was just an extreme
circumstance which probably doesn’t happen a lot but a lot of people wonder why I
personally still use like a drop box address for a lot of my business – for my main
business address. It’s because of protection situations where you know, that was an                                                      Page 25
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extreme circumstance. It probably will never happen again in a million years but you
never know and so that’s one of the reasons I still use an address like that. But aside
from that, you should not be using a UPS store address for anything, really, unless of
course, you do have a home based business or something like that.              But for the
purposes of building business credit, that’s the last thing you should be considering.
You should not be getting a post office box address either. Back to the virtual office
setup. Again, you are looking for a virtual office that has other legitimate businesses in
there and sometimes in some cases – here’s the other exception. You’ll have a virtual
office that has one street address, but they also allow people to rent out specific spaces
that they have. So for example, they are not just 100% virtual where nobody ever
comes in there or people just borrow the conference room when they have meetings.
There are other virtual office set ups that have their entire office building set up, but
there are other people not only doing the virtual office part, but there are also people
and I’ve seen a lot of lawyers do this too where they will rent out a specific suite
number. So they will have like suite, I don’t know, 120, and there will be somebody else
that will have suite 125. There are little tiny offices that are about anywhere from 100 to
300 square feet and they just rent that one office and they actually do have a suite
number and a suite address. That would be acceptable, but that is your second best
option is to use a virtual office company that also rents out specific suites or rooms that
you could actually use as a business. Now I am not saying to rent out one of those
rooms. I’m not saying to occupy one of those rooms. I’m just saying to look for services
that do offer those because people will be using those particular addresses. They will
be using those for their own businesses and so the more people that are running
through those addresses when they build their own D&B file, or even when they don’t
build a D&B file, automatically it will show up as them occupying that specific address.
It will make it look more and more like it is an actual office building rather than some
virtual office building. So to be clear, your first choice is going to be to use a virtual
company or a virtual service that has just part of an office building and the rest of the
office building actually has real businesses in there and you could quickly and easily do
a search. I think Google maps allows you to do a search like that. I know there are a
lot of services out there online that just allow you to type in an address to see what type                                                   Page 26
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of building it is. So when you are considering a virtual office, try to see if you can get
one that has just part of the office building and that other real companies are sharing
that exact address. Okay? And the way to do that is – I believe I was able to do this
through Google where I was able to type in an address. I don’t know if it was their map
service or if it was yahoo map service. One of those map services, where I typed in an
address and it told me a listing of all the businesses that were at that specific address.
Okay? You don’t want it to pull up Barrister Virtual Office Company and nothing else.
You see what I mean? You want it to have a whole listing of other businesses that are
occupying that exact address. You want John Kelser, Attorney at Law. You want just a
bunch of different addresses, you know, ABC Marketing Consulting Company. Tulips
Galore Flower Shop, you know a bunch of different companies to pull up at that exact
address. You don’t want just ABC Virtual Office Services or Barrister Office Suites to
show up. Okay? That is the key. So you are going to be having to do a little bit of
research because I can’t give you exactly which companies offer this and which ones
don’t because you do need to do a virtual office search for yourself so you are going to
be doing it in your local area there and maybe you are in Atlanta, Georgia, or Chicago,
Illinois. There is no way I am going to know exactly what company you should choose
in order to be able to find a virtual service, but it is very easy to do. Go to Google. I like
Google. I use Google for everything. I never use Yahoo or anybody else. That’s my
preference. You can use whoever. But type in a certain search engine, virtual office
services and say you are in Atlanta, Georgia. Atlanta, Georgia, see what comes up.
When you can finally get to their contact information or their contact page on their
website, get their address, and then go to Google maps and type in the address to see
what ever companies are at that address. Okay, you want there to be there at least a
listing. You don’t want there to be just Barrister Virtual Office Services and nothing else.
Okay, so that is the key. When you do find a company that has multiple companies at
one address, which would be the same address that you are going to be occupying,
then find out about signing up with those virtual services immediately by using your
business name for that service. So you are not going to be using you know, John
Smith, if that is what your name is, obviously. You are going to open up the virtual
office service under your company which would be, I don’t know, whatever, John Smith,                                                      Page 27
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LLC, or whatever you have going on there. So that’s how that part of the process works
as far as getting the address.

Okay, your next step is going to be your business phone number, but first I wanted us to
back up a second. I wanted to let you know that I did go to Barrister Executive Suites. I
typed them in the search engine, and for my local area here which is, I’m in Santa
Clarita, California, and I was able to find some things on Barrister, but what I did was I
actually went to Google Maps, and I copied and pasted their address information into
Google Maps, and I was able to get a very long listing of other businesses that are at
that exact address, and so that would be one of the prime types of services to use,
because they’re literally, let’s see one of the addresses was on Turnberry Lane in
Valencia for Barrister Executives Suites, and there’s one, two, three, four five, I mean
there’s at least fifteen different companies including different law offices, there’s a
corporate staffing company, there’s some kind of oil research and technology company
that’s there, among them, of course, is Barrister Executive Suites that’s at that address,
but there’s also other legitimate businesses there. I don’t know if those other attorneys
are actually renting from Barrister Executives Suites or if they’re actually other business,
you know business offices there in that same building. I don’t know that, but that would
be one of the perfect addresses. So again, what I had done was I went to Google. I
searched in virtual offices, let’s see what exactly did I search for, my exact search term
that I used was virtual office space, then I put Valencia, California, and I got a whole
listing of Barrister Executives Suites. I mean there’s others there, but I think Barrister is
the main one, and then when I doubled clicked on one of the Barrister listings that were
there, I received – I got their address off of their contact page and then when I had gone
to Google Maps, I copied and pasted their address information into Google Maps, and
then that’s when I was able to arrive at the listing of all the businesses that are at that
exact address. So that particular location on Turn berry would be perfect for the type of
business credit situation that I’m trying to tell to do. Now, the next step obviously is to
get a phone number. This is a little more tricky because with the phone number, Dunn
& Bradstreet would like to see your phone number actually be attached, so be in a
listing. So you know, you could try to use an 800 number and you know send it to an                                                     Page 28
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answering service     or try to us an answering service number, but I don’t really
recommend that you do that. It’s better to use an 800 number, then try to give them an
answering service number and definitely don’t give them a voice mail number, okay?
There is a strategy that you could use. You know to make this work a little better for
yourself. If you’re unable to get a real phone number, you don’t want to be using your
cell phone number because they’ll be able to tell it’s a cell phone number by looking into
any system. So if you’re really serious about setting this up and you want to do this
right, I recommend a service. I don’t know if you ever heard of Vonage; it’s like a phone
service that uses your high speed Internet service. So for example, if you have high
speed internet service at your house, you could then get a Vonage line and sort of tap
off of that service. So one of the options you could do is by getting Vonage, and I think
their service is like $24.95 a month or something like that. I don’t know. I haven’t
looked at their web site, but you can get a Vonage phone number. It will link directly to
your home address because that’s where you have the service, but I believe you can
change the address that you have on file with them. So for example, if you set up your
virtual office and you now have an address, you could then set up your Vonage number
and just type in that address even though you have the business line going into your
house, or the phone number going into your house, okay. That’s one way of doing it
and then of course you got to do the second step too. You have to actually go to yellow
pages and you can get a free listening there at You can get a free
business listing. You type in that Vonage phone number which needs to be in the same
area code obviously, and the same you know, the first three digits of your phone
number under that area code is going to designate where your phone number is, and
that needs to match too. Usually Vonage is pretty good about giving you numbers that
are local. My point is you want to find a virtual office suite that’s very close to your
house. So when Vonage gives you a phone number, you know it could reasonably go
to that address. So you can even have the Vonage equipment sent to your virtual office
just so that, that address is on file with Vonage, and then you won’t have any problems
typing in that address, and having all that stuff coming up under your business name
with your business address – your virtual address, but then once you do all of that you
do need to go to, type in your business, name, address which will be                                                  Page 29
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your virtual office address, and your Vonage phone number, and then you get a free
yellow pages listing. So you want to make sure you’re listed with the yellow pages. I
believe it only takes a couple of days for it to come up through the online search. If
anybody does an online search through the yellow pages for your business name and
your town with your address, it should come up with that Vonage phone number that
you put in there, and it’s up to you if you want to just send your calls directly to voice
mail which you can through the Vonage service. You know it’s up to you how you want
to handle that. You know, I recommend in the beginning at least, if you’re able to
forward your phone calls at least temporarily to you know, an answering service.
There’s a lot of very, very cheap answering services out there, that you could forward
your calls, in the event that you know, D&B decides to check legitimacy of your
business, but also what you could do without paying any extra money is to having an
answering service. You could forward your phone calls to your virtual service, your
virtual office because a lot of those companies offer live answering service with the
monthly fee that you pay, and you’re probably wondering what the monthly fee is. I
noticed Barrister charges a $100 a month for their bronze service, and there’s other
different services that you can get too. But a lot of virtual offices automatically offer you
know phone service and so basically you could have, you could forward your Vonage
calls directly to the virtual service and the virtual service will answer the phone in your
business name, okay? So if you are John Smith Enterprises, you know they’ll actually
answer the phone John Smith Enterprises, which will look really good when you’re
dealing with Dunn & Bradstreet, okay. So very critical that you set up the phone thing
properly, as I mentioned, you know you want to be able to have an actual phone
number to be able to designate to, to that particular virtual office address, and the only
way I’ve been able to advise people who do not have a brick and mortar business to tie
their business, to tie everything to. The Vonage system tends to work the best, out of
every other type of option I’ve had other people try. You know people have tried doing
an 800 number and trying to tie that into, you know forwarding that directly to their,
either virtual office and having them answer the phone, but it still doesn’t come up
through the yellow pages because the yellow pages will usually accept actual phone
numbers not 800 numbers. There are other types of services that will list your 800                                                     Page 30
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number, but that’s not what Dunn & Bradstreet is looking for. They’re trying to verify
that you’re a brick and mortar business. So the best and the most easiest way that I’ve
discovered to do this is to get the Vonage service after you’ve gotten your virtual office,
have all of the Vonage equipment sent directly to your virtual office. Go pick it up, or
have them ship it to you, have the virtual office send it to you, and then set up your
Vonage account, as if that business address is your actual address where the phone
calls are ringing in. The only problem that you’re going to have is the 911and how that’s
set up and you know Vonage has a specific way I guess that they set up the 911
system. So just make sure if you ever have an emergency at home that you’re not
using the Vonage system to call 911 because it will attach the address to your virtual
address. So 911 will be showing up at virtual address, even if you call from your house.
You know, do you see what I’m saying? You need to make sure that you never need
the Vonage service for an emergency because everything will link to that office address
which is what you want. That’s the whole point of doing it. No other way has been as
effective, as of course setting up a real office which is to costly to do for the purposes of
building business credit. You know unless you seriously have a business that you
would utilize that space for.
Okay we’re moving right along here. Now I hope you understood so far, what we have
and what we are doing. We so far have our corporation set up; we got our EIN, which I
strongly recommend that you have the service who set up your corporation get the EIN
for you. You should have or as we progressed along, you should be looking at virtual
office space and once you set up your corporation, set up your virtual office space, get
your phone number as I just outlined, then go ahead to go to, take
advantage of their free listing. Be sure to put your business phone number, even if it is
your Vonage phone number that you have at home. Be sure to attach the business
number to your business address and your business name that you have with the virtual
office company, and then when you list everything with your listing
should be up and running within a short period of time. The next process, now that
we’ve done the ground work is to go to Dun & Bradstreet. A lot of people do not know
what Dun & Bradstreet is, and so when I make references to D&B, there like who and
what? So some of you might know what Dun & Bradstreet is, and some of you might                                                     Page 31
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not. So just to clue you in on how it works, Dun & Bradstreet is the main credit reporting
company that works with businesses they’re equivalent to Experian or Equifax or
TransUnion for personal credit.      So they are the main credit reporting bureau for
businesses, but the difference between Dun & Bradstreet and what personal credit
reporting bureaus do, is that Dun & Bradstreet allows you to create your own profile
and the reason that they do this is because there not automatically able to get profiles
for companies. Well, they are and I am going to explain that in a minute, but you know
the way that credit bureaus work for personal credit is that through the use of your
social security number, all of that information and data about you, your name, your
current address, phone number, and your social security number all show up through all
the three credit reporting bureaus automatically, okay? But when you have a company,
especially a new company, you’re not going to find that information is automatically put
into the system. Except when you’ve had your company for awhile, like for example,
there are some companies that I do not bother building business credit with, and so you
know, after a couple of years, or whatever, if I decide to do a new set of business credit
for whatever reason, I’ll type in the business name because the whole process to get
started with Dun & Bradstreet is that you type in your business name, your city, and
your state, then you press next. It’ll see if it can find your company in the system. If
your company has been around for even less than a year, it could be six months;
somehow it’s able to get into the system. I don’t know how; I don’t know how they work
that whole scenario out. I never talked to anybody at D&B. I really don’t even care how
they get the information, but you know, at first if you have a business that you setup,
say you setup a business, I don’t know a year ago, or two years ago, or maybe even
have a printing business or something that you’ve had for 15 years, chances are you’re
in the Dun & Bradstreet directory, somewhere. So you know you already have a profile
of some kind in the system. So this will make it a little faster for you to setup, you don’t
have to pay the extra super fast fee. So that’s the only thing it’ll do for you; it doesn’t
really do much anything else. If you are not in the system, say for example, you just
setup your corporation, I don’t know last week or last month, and then you’re definitely
not going to be the D&B system. So make sure that you setup your business address
and your business phone number before you even go to the D&B site to even begin the                                                    Page 32
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process of setting up your corporation, okay? So I’m going to assume then, that we are
now at the step, or that you want to take notes for when do get ready to do this process.
You go to, that’s d like dog, n like Nancy, b like,, and you
end up at the Dun & Bradstreet site. The first thing they’re going to ask you to do is
type in your business name, your city, and your state.         If you have a brand new
business or brand new corporation, chances are you’re not going to be in their system,
but if you have a business that’s over six months old that you’ve used, even minimally,
maybe you opened up a business bank account, and I don’t know maybe you have a
few things for the business. You should be in the system somewhere, but if you have a
business that you’ve done absolutely nothing with, then you’re not going to be in the
system. So it’ll ask you what the business name is, city, state, go next. If it can’t find
you, then it will allow you to type in your own profile, okay? Something else you should
know too, when you’re setting up your system with Dun & Bradstreet. This isn’t really
highly important, but it’s somewhat important, so if you want to cover all your bases to
make sure you’re doing everything properly and perfectly, is that you might want to get
a specific e-mail account for your business that’s not a Yahoo address, you know I’m a
big fan of Yahoo. I don’t know why. I think it’s because I’ve had too many problems
with various companies that I’ve used e-mail service through, and you know like at our
office we have like Time-Warner service for our Internet and all that other stuff, and at
home I have AT&T. So whenever I’m assigned any kind of e-mail address through any
of the companies, if I move my office location because we are going to a larger office
space, or if I move my home, I usually end up losing my e-mail address that the
company setup, even if I keep the same exact account number with AT&T or Time-
Warner, I usually end up losing my e-mail address every single time. That’s happened
in the past, and it’s too much of a pain having to go through the whole process of having
all my contacts get the new information. So I guess the proper way for me, and I’m not
really technologically advanced to be able to do all of this, which is probably not that
hard, I know it’s not that hard. I have people in my office that do it all the time, but you
know to have your web address, for example if you have,            you might
want to have,   an e-mail address that’s See what I mean? It’s
not hard to do it.   I know GoDaddy does it really cheap.         I know there’s a lot of                                                    Page 33
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companies that allow to do it really cheap, where you only need to the domain and
that’s     it,   and   you   could   get   your   freebie   Yahoo    account,    you   know , but you could attach it to you know See
what I mean? So any e-mails that come through john@johnsmith.comyou could have it
forwarded automatically to johnsmith@ You know what I mean. You know
I’m not really a big technology fan. I know it doesn’t      take a lot to be able to put that
together, but I just never found the need or the desire to do all of that, which is why
people wonder why I use Yahoo a lot. It’s because           it’s real easy for me to setup. I
never had any problems with Yahoo, if I do any changes in my business I don’t have to
worry about losing my Yahoo accountants, and          to do all of the forwarding and all of
that just to have a nice snazzy e-mail address. You know really is it not important to me
at this phase of my life, maybe it will be later, and I’ve had people question me about it,
like     are you legitimate because you have a Yahoo address. It’s like just because, if I
change my address to Monica at whatever my domains are, which I have so many
domains it’s ridiculous. Is that going to make me look more legitimate as a person? I
mean any fly-by-night could set up a website and put It doesn’t
make him any more or less legitimate, you know what I mean? So for the purposes of
building business credit I think it’s somewhat important to make your business look as
brick and mortar and professional as possible, and one of those things is going to be
getting a specific type of business web address – email address so I recommend that
you go to GoDaddy or one of those really cheap domain companies. Set up a domain
that reflects your business name so for example, if you are ABC Marketing Consulting,
you’ll want to do Then you’ll want to have your name, and then you could just forward it to any cheapy
yahoo account or whatever you want to do. It doesn’t matter at that point. But you want
to show that on your D&B profile when you actually submit because they do ask for your
email address when you do your application. You do want to be as professional as
possible. Okay, so the next step. When you are going through the D&B process, I’m
assuming now that you have a legitimate address. What I mean by legitimate I mean
virtual office, so brick and mortar office. I am assuming that you have the email address
as I just outlined. I’m assuming that you have your phone number as I outlined, okay?                                                     Page 34
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So the next step is to actually go in the D&B system, see if you are not in the system
somewhere and if you are not, then you will be asked to completely set up your profile
from scratch, but the benefit of this is that they have no preconceived information on file
for you. They don’t have any kind of weird addresses. Maybe when you filed for your
corporation, maybe you used your home address and so you don’t want any
preconceived information on file which is why it is really nice for you to completely start
over and get a new profile with D&B, okay? So you just want to make sure that you are
doing it right from the get-go. Now when you actually get all the stuff set up that I was
just discussing with you, well let’s move on to the next segment.
Okay we’re moving right along with Dunn & Bradstreet, we’re on the Dunn & Bradstreet
website, we’re going to go ahead and choose the option of paying to establish for a
credit profile. You do not want to get their no charge, or their $50.00 option, okay? The
problem with the no charge option is that it takes; they claim it takes 30 days for them to
put in the system. I’ve heard horror stories, where it takes 60 or 90 days, and I’ve
actually heard stories where people never ended up in the Dunn & Bradstreet system at
all. So it’s not recommended that you go the free route with this, it depends on how
serious you are about building credit, and credit quickly, and please note that even
though this does get kind of expensive to do this, because remember we’re getting an
office address, but first of all we’re a corporation that’s $200-300.00 in a lot of cases
right there. Then you’re getting your virtual office address, that’s usually $100.00 a
month there, and then you’re getting Vonage that’s another $25.00 dollars a month
there. So we’re starting to get up there in price, and you’re probably now thinking – and
then of course, you might want to get a real e-mail address. So that might, I mean
that’s probably the least of your concerns as far as money, as far as that goes. I’m
imagining that will be around maybe $10.00 to setup, and a monthly fee of perhaps I
don’t know $5.00, who knows. That would be the least of the amount of money that
you’re outlaying. So you know your next outlay is obviously going to be establishing a
Dunn & Bradstreet credit file. You don’t want to get this far in the expense, and then all
of a sudden decide to take the cheap, or the free way out through the D&B system,
because then all of your – you are going to be paying in the long run, trust me because
you might actually go 3 to 6 months, and realize D&B never put you in the system, and                                                   Page 35
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that you’re not there. You never showed up. You know what I mean? You don’t want
to be doing all of this work, and outlaying all this money, especially when you’re paying
a monthly service for the virtual office, just to find out D&B never put you in the system,
okay. Just think in terms of when you start to get your initial credit. You know you will
be able to, pay yourself back with maybe your initial credit card that you get from
building your credit, and so forth. So you know, try to think of it as an investment into
your future, and not think of it as an outlay of cash. It’s a different story when you’re
buying Christmas gifts for people, because you never get that money back. I mean
that’s just an outlay that’s gone forever, but this is a financial outlay that your building for
your financial future, because remember those who become wealthy are those who use
other people’s money, and use it correctly, and build it correctly. You know, you look at
Donald Trump, I mean his entire fortune is built off of other people’s money. It’s not
built off of you know, not much money on his own, trust me on that. The smart people
use other people’s money to build wealth.          So whatever your goals are as far as
whether or not, whether you are doing this to invest in real estate, or to maybe get
inventory for an eBay business you want to start, or maybe you want to get – especially
in this economy right now there’s a lot of different opportunities, a lot of stores going out
of business, a lot of different discount pallets of stuff, you know truck loads of stuff from
furniture stores, and stuff. You can get pennies on the dollar, because they went out of
business. Maybe you want to start capitalizing on those opportunities and in order to do
so, in order to be able to get the lots of inventory that you need to be able to establish a
really strong profitable business, you do need to probably do a major outlay in cash, and
a lot of us don’t have $50,000 or $100,000 laying around to be able to do that. So just
think of it in terms of, you know, carving out your financial future. When you start
adding up these figures, as far as setting up this whole thing in your mind, I know it can
get costly, but it’s going to be worth it in the long run, trust me on that. Okay, so when
you first get to the Dunn & Bradstreet page, they’re going to ask you for your business
name, city, and state, and it they don’t find you, they’re going to give you two options to
pick from. One, establish a D&B credit file, which is going to be $599.00. I think it’s
$499.00 if they found you in the system, if they have your business name, city, and
state in the system, then it’s only $499.00, because you don’t have to set anything up                                                        Page 36
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from scratch. If they have nothing on you, it’s going to be $599.00. Or you could do the
free no charge option which they say they will put you in the system in 30 days. I have
found that is not the case. I have found it is 60-90 days if you are lucky and in some
cases, they don’t do it at all. Okay, so forget about the free option, all right? Then you
are going to be asked to put in your first and last name into the system. You are going
to go ahead and do that. You are going to put your first and last name into the system.
Make sure that you put – I like to use the title CEO for my company. I don’t like using
owner or anything that makes it sound like a mom and pop organization. So they will
give you a listing of different things you can pick for your title for your company. I like to
use CEO even though I am usually the majority partner in my company or president or
vice president. When you put president or owner, it just makes it look like a small rinky
dink company. You know what I mean? So you want to use something that is a little bit
more prestigious of a title that makes it seem like you are actually a larger company
instead of some mom and pop flower shop with two people that work for you. So then
it’s going to ask you for your email address. You are going to go ahead and put that in.
Hopefully you have a professional email address as I had outlined before instead of or something like that. Okay, so once you put in that information,
it’s going to ask you the name of your business, the full legal name. The full legal name
is the name you had incorporated under. So if it’s John Smith Marketing Inc., then you
are going to put John Smith Marketing Inc. You are not going to be just putting John
Smith Marketing. So make sure that it’s the legal name that you have your corporate
documentation on. Okay? If you use other names for the business or have other
DBAs, you could list those. That’s completely up to you if you have other DBAs or if you
have other needs for the business that you need a DBA for otherwise don’t worry about
having DBAs. That’s just an extra expense that’s not necessary. It’s going to ask you
for your business address. That’s where you put your virtual address. It’s going to ask
you for your phone number. Put your phone number in there. If you do not have a fax
number attached to it, because I know I think anyway, Vonage has a service where they
offer you a free extra line. You could use the extra line as a fax number. You can add
that line through I think the Vonage system. Even going through their website after you
set up your Vonage service. You can get an instant fax number through their website if                                                      Page 37
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you want to put that fax number, you can. If you don’t want to you don’t have to. The
only number that they require of you is the phone number; the main phone number and
they do not allow you to put a toll-free number. I mean they do, but it’s underneath,
okay? So it’s going to be underneath your main number, all right? So you go ahead
and put all of that information as far as your business address in there, your direct
number, and then if you have a toll-free number that you’d like to add. You could do a
toll-free number. There is a company that I recommend that you could do it almost
instantly. It’s called You go there and you can get any 800 number. 800 numbers are usually
better. They look better because it makes you look like you are more established as a
company and for $5.00, they could set you up with an 800 number and you can instantly
and immediately forward it to your main phone number. Okay? So then you put in your
information. You can put in your toll-free number which will make you look like a much
more legitimate larger business and again, you can get that for $5.00 instantly. Literally
within five minutes you can have your own 800 number. It’s much easier than going to
AT&T. Their rates are the same as AT&T and you get your instant set-up. With AT&T,
it could take a week or longer to set up an 800 number and I don’t even think AT&T has
800 numbers to be had anymore. I think all they have are 866s and whatever and that
just makes your company look too new. It’s then going to ask you for the legal structure
for your business. You are going to put corporation if that’s what it is. I think even if –
well I think if you do an LLC, you have to put partnership. I don’t recommend you use a
proprietorship or obviously you are not going to be a government. It’s going to ask for
all the major shareholders. If you are the only person on the corporation, it’s going to be
100% stock owned by you. Your business started – okay right now we’re in 2009. I
don’t care if you incorporated this year or say for example, you are listening to this in
2010, and you incorporated your new LLC or your new S corp in 2010 or 201. I don’t
care what year it is. I would not put that you started your business in the year that you
incorporated. Okay? I would put two years. I don’t care if you started your new
corporation last week. You put two years, okay? So for example, we are in 2009, you
put 2007. If you are in 2010 right now listening to this, you put 2008. If you are in 2011
listening to this, you put 2009. Okay, you want to put two years. Two years gives you                                                   Page 38
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enough seasoning for a lot of corporate credit out there. If you make a mistake about
not putting the right information as far as the years you are going to screw everything
up. Please listen to me when I say put two years, two years apart. So it’s going to ask
you the year your business started. Again, two years back. So since we’re in 2009,
now you put 2007. If you are in 2010, listening to this, you put 2008 and so forth. If you
want to put a little longer, that’s up to you. You need at least two years though, okay? I
think it will go as far back as six years which is strange because some people have their
businesses for 20 years, but you know, go figure. I guess they figure you would have
had a D&B number by then. Years that the current owner has assumed control, you put
the amount of years that you have. So for example, if you put two years back, put two
years. Three years back, three years, such and such, so and so. Okay, let’s continue
this on the next segment.
Okay, moving along through the D&B system.            It’s going to ask you to check any
information about whether or not it’s minority controlled or 50% women controlled, if you
could check any of those boxes, please do. I think they do this for statistical purposes
so check those boxes. If the business is owned by a veteran, a Vietnam veteran,
disabled veteran, check any of those boxes, if those apply. If another company owns
the business, which should not be the case in your situation, then check any of those
boxes, check that box and type in the company that owns this company, but if you’re
starting a new credit profile line, you shouldn’t have an umbrella company. Type in – it’s
going to ask you for the officers of the corporation. It’s going to ask to type in the
owners and the officers, and so forth. Go ahead and do that, and then go to the next
page, and it’s going to ask you your primary line of business. You could put just about
anything depending on what you plan on doing your business for, but it’s up to you what
you want to put. There’s different things you can put to make it look better, look you
know it’s up to you.     If you don’t know what to put, you could put something like,
business consulting, real estate, investing, or real estate acquisitions, that kind of thing,
if you’re not sure what to put, because it really doesn’t matter, as far as when you’re
building credit, but it is going to be the profile that you have, when you have other
creditors who want to give you credit. It’s going to show exactly what you do. So you
want to make sure it accurately reflects what you possibly want to be doing in the future.                                                     Page 39
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If you want to use this for a different, for a specific type of purpose okay. It’s going to
ask you how many employees. This is very, very important, please listen to me; you
want to have over 10 employees. This will put you in a different category for a credit
rating. I don’t care if it’s you, yourself, and you, running the company, you want to put
11 or more employees, because it will put you in a different credit category and once
you put that you have 11 employees – one employee and you make a mistake it’s very
difficult to correct that mistake. So please make sure that you put 11 employees. It’s
going to ask you how you bill your customers. It doesn’t really matter what you put.
You could put cash, or credit card, or whatever, you know fee bases net 30. I don’t care
what you put; it doesn’t really matter. Number of active credit accounts, I believe that
you could put anywhere from 3 to 5, if you want to put 3 to 5. Check if you sell on the
Internet, check if that applies, and of course percentage of sales from the internet, you
know put whatever percentage. You know if you’re selling a specific type of product, it’s
going to ask you if you’re selling locally, state wide, regional, United States, US,
Canada, or international check if any of that applies. Check if you import or export, you
know and then it’s going to ask you specific information about your customers, if they’re
manufacturers, wholesalers, retailers, or the government. This is also important in this
section. It’s going to be primary place of business okay? It’s going to ask you if it’s a
residence or commercial. You always want to put that you’re in a commercial; you have
a commercial address all right? You never want to put that it’s a residence; you’re
going to blow this whole thing, if you put that it’s a residence. You want to put that you
lease your location, you don’t rent. You lease your location, it’s going to ask you for the
square footage, make sure your square footage is, I would say 1,500 square feet, or
more, whether or not that’s true makes no difference at all okay. If you want to put
2,000 square feet, 2,500 square feet, it doesn’t matter, I mean, you don’t want to be
ridiculous. You don’t want to put 25,000 square feet, but you want to make it look like
it’s a decent size company. It’s not some one room; you know one man band operation,
okay? So you put say 2,500 square feet, it’s going to ask for the number of floors, you
know put one. Number of stories, it’s up to you if you want to put one or two. Type of
building it’s going to ask you, you could put cement, or cinder block. I wouldn’t put
frame. It’s going to ask you if it’s brick, cement, cinder block, frame, or steel. I would                                                   Page 40
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cement, or cinder block because that’s usually what most businesses are, and then
you’re going to get to the very end. The last page is going to ask you for five business
references okay? You cannot include bank accounts, utilities, credit cards, or insurance
companies okay? One, you know you can include your Vonage, you know just start off
with that. If you have anybody else that you use, as far as any other type of accounts
that you want to build, you know, you can all those types of things okay. One of the
things that you should know is that when you’re in the process of getting – after you
have gotten your corporation all right, one of the things that you should do right after or
during the process of securing your virtual office suite, you should call a couple of
different companies that can offer you credit immediately. One of which is Office Depot.
You can literally do, I think you can do an application on line. If not, you can do it over
the phone, or actually go into an Office Depot location where they’ll give you a credit
application.   Go ahead and fill one of those out, on behalf of the business alright.
You’re not going to have a D&B number yet; you’re going to have to put the EIN,
unfortunately, at this stage of the game okay? You’re going to have your Vonage, if you
have an answering service, for example, you could put, and I mean they might consider
you know Vonage a utility, but they might not, it just depends. You could take a risk on
that one, but a lot of times they only see utilities, as you know, ABC Water Company.
They don’t really see Vonage or AT&T especially, since a lot of people have a toll free
or 800 number service, that gets really costly and that’s not really considered a utility.
So a lot of people will see AT&T or Vonage on there and they will not associate that
with, Dunn & Bradstreet will not associate that with a utility, okay? Credit card, they
mean business lines of credit, or revolving lines, and they say do not use credit cards,
they mean your personal credit cards okay? So you want to include your Vonage. You
want to get an Office Depot on there, and you might want to consider calling, like say
Dell or one of those computer companies that can offer you an instant line of credit on
say like a lap top or something. You want to be able to have at least three of your five
references filled in, if you do not have enough or did not go to Office Depot to apply for
credit, or did not call Dell, and you only have Vonage, and maybe your answering
service, and something else. Then see if you can’t, if you can’t have a family friend of
yours who works for a company, say they maybe work for a flower shop, or any type                                                   Page 41
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company. See if you can use them as a specific reference, because it’s going to ask
you for the business name, address, contact information, including a contact name, and
a contact phone number. So if you have a good friend of yours that works for, you know
a flower shop, or something, put that information in there, and then D&B will ask, will
actually call them and say, “Hey, do you do business with John Smith Marketing
Consulting?” “Yeah, they order order flowers on credit here every month.” You know
what I mean? Just add them as a reference. You want to add as many references as
possible. If you could possibly fill up all five reference boxes, that’s even better. In the
beginning, you probably won’t be able to. You will probably only have Vonage. Maybe
you’ll have Office Depot. Then maybe a couple other references too. Maybe you
ordered some business cards online recently for example. Maybe through a company
called or or something. Use them. I would
put them in there as well. I would put all of – any company that you have ordered
anything from.    Even if you did it with cash like maybe you did an order through which they offer office supplies. Maybe you ordered through them on a cash
basis consistently. I would include them as well. So you can include – you probably
have more people that you use for business than you think. Unfortunately, you are not
going to be able to have a lot if you just started your corporation so it also precludes that
you cannot use like accountants or you can’t use your landlord. You are not going to be
able to include Barrister on there so if you use them as a virtual office service so that’s
going to be the key as far as filling in the reference points. Put in at least three. It’s
going to ask for five. Put in at least three, okay? You can always fill in more later.
Make sure you put your Vonage in there. Make sure you put anybody you purchased
any kind of office supplies even if you pay cash online or through a credit card online.
Put them as well. If you have any account information with them. Say for example, you
have been ordering things from Office Depot online for years or even Amazon online for
years. Go ahead and go through Amazon or Office Depot online. Make sure you
update and change all of your account information through them to reflect the business
instead of your personal and then use them as a reference as well.                                                     Page 42
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Once you submit all of your references to Dun & Bradstreet, they are going to go ahead
and take a period of time, usually 2-4 weeks and contact your creditors. Usually they
will either send them a letter in the mail. I don’t know if too many situations where
they’ve actually called the creditor.    There are situations I’m sure that they have
because nobody has responded back to their mail request, but usually they send a mail
request and ask for information about your account and a lot of companies will do a
print out based on the information that they have on file as far as how frequently you
have ordered from them etc., etc. Then they will give you a Paydex score. This is what
you are going to be working on as time goes on. Don’t really worry about the credit
references now because as you go along you can continue to update them through Dun
& Bradstreet, okay?     So don’t really worry so much about the references that you
initially put in because you are going to have more and more as time goes on. You
really don’t want to go out and get lot of credit accounts. I know I mentioned Office
Depot because that is really easy to get. You don’t need a Dun & Bradstreet number to
get an Office Depot credit line and then later on you can always call Office Depot, their
credit department, and update their records with your new Dun & Bradstreet number,
but you should be issued a Dun & Bradstreet number immediately after you submit your
application. You can start using this Dun & Bradstreet number to start applying for
credit. There is a lot of creditors that will give you credit based on just a new Dun &
Bradstreet number, one of which, like I had mentioned, Office Depot. I know Office
Max, Staples. I know Dell Computers, Best Buy. I think Hewlett Packard will do it
whereas you could start applying and opening up credit with your new Dun &
Bradstreet. You want to start utilizing some of this credit. Now again, you don’t want to
go wild and just start applying for tons of credit everywhere, especially if you don’t plan
on using it. So use like – get like three to five accounts set up. Start using them
consistently. Start buying some office supplies. Pay off your account every month.
Don’t buy too many office supplies and certainly don’t buy things that you don’t need,
but obviously when you start planning on running a business you are going to need
computers and fax machines and different things, telephones and stuff. Start buying
that stuff on the credit cards and the credit to start building it up and over the course of
three months, by doing this consistently, you’ll get a really solid Paydex score and that                                                    Page 43
     Build Business Credit FAST - 2010 Course Audio Transcripts

is how Dun & Bradstreet will score you, okay? Your score will range – your Paydex
score that Dunn & Bradstreet gives you ranges from 1-100, obviously, and a good
Paydex score is 80 and above. So you are looking to get 80 and above and as long as
you are able to sustain a good track record with your initial creditors that you op-en up
accounts with, you shouldn’t have a problem realizing an initial score between 60 and
80, just initially, okay? So one of the other things that I wanted to mention, is remember
that I had specified that you want to make sure that you put 11 employees or more. The
reason being is because you know; Dun & Bradstreet will give you a specific
classification, a rating classification which does fall into your Paydex score, okay? So
your rating classification – there is really only two classifications. There is a 1R and a
2R. You do not want to be in a 2R category. Just think of 2R as being like second tier.
You don’t want to be second tier. You want to be first tier. So 1R will – anytime you
have 10 and over in employees, you are going to have a higher rating. You are going to
have a 1R rating and that is one of the reasons why I specify that you don’t want to put
less than 10 employees to be able to – because this all helps your Paydex score, okay?
The other thing that it is going to a ask you for and I did not mention this, is that when
you go through the process of the Dun & Bradstreet application, it may ask you what
your annual sales are and put projected sales. I would strongly recommend that you
put a million and over, okay? Because that will put you in a different type of rating
classification that will also increase your score. It will put at a 3A classification. The
highest is 5A and of course, that is 50 million or over and that is a little excessive if you
don’t really do that in business and of course, a 4A is 10 million to 49999, so if you do a
million and over, and again, that is projected sales. So 1 million and just under 10
million, you’ll have a 3A rating classification and you want to make sure that you are up
there. You don’t just want to say that you made zero last year because that will put you
at a HH and you don’t want to be at an HH rating. So again, think in terms of it as being
projected sales even though they really don’t say that, but they are really not specific on
what they mean when they are asking you for sales. They don’t really tell you if it was
last year’s sales or if it’s projected sales. They don’t really say anything and so because
they don’t say anything and specify, I strongly recommend that you put your sales over
a million dollars a year. Just think of it as being projected sales and then that will give                                                     Page 44
     Build Business Credit FAST - 2010 Course Audio Transcripts

you a much higher rating which will work into your Paydex score, okay? So those are
some other things that you really need to think about because you want to make sure
that you are setting everything up correctly from the get go. It’s much more difficult to
go in and try to change things after you have already set up your initial profile with Dun
& Bradstreet, rather than doing everything properly from the beginning. So to reassess
what we are doing here.
   1. We need a corporation with an EIN.
   2. We need a business address.
   3. We need a phone number.
   4. It would be nice if we had a legitimate looking email address.
   5. We go to Dun & Bradstreet, fill out the application, pay the $600.00, and fill in the
      specified things that I had requested including annual sales, employees, your
      business address, your business phone number, of course, I missed something;
      you should have gone to and put in your phone number there
      for free before you went to D&B.       And then you put in whatever vendor or
      supplier accounts that you have. If you don’t have many just use the few that
      you have because you could always go back into the D&B system and add
      different creditors in there as you go along. You just want D&B to give you your
      D&B number so you could start applying for credit. Once you get your D&B
      number, go ahead, and start applying for credit. After about 30-60 days goes by,
      if you are actively using your credit accounts, go back into the D&B system and
      order a credit report for your company to see what your Paydex score is and
      again, anything over 80 is doing exceptionally well. When you are over 80, then
      you could start the process of starting to get business lines of credit. Now one of
      the things that you should know about business lines of credit is obviously, you
      are going to need a bank account. Start establishing a relationship with a bank
      so you can get your business bank account started and you should probably go
      there once you set up your business corporation. Once you get your corporate
      documents and get your EIN through the corporate company, the company that
      sets up your corporation. You should then immediately go get a business bank
      account at your local bank, to start a relationship with them. Some banks will not                                                   Page 45
     Build Business Credit FAST - 2010 Course Audio Transcripts

      really allow a relationship, so of speak because they’re way to large, like Bank of
      America.    They’re just way to large to think that it’s some kind of business
      relationship that you’ll be able to establish. So when starting a business account,
      provide d that you’re not on ChexSystems because if you are on ChexSystems, it
      will be more difficult. I know there are some banks that do it like US Bank, as
      long as you’ve been on ChexSystems for more than one year, you’re able to
      open up a personal or a business checking account through US Bank. That’s
      one of your options if you are on ChexSystems, but you want to focus on smaller
      banks anyway, US Bank would be smaller. It’s not small but it’s slightly smaller
      than Bank of America, Bank of the West, if you can get in with a credit union,
      which a lot of credit unions do not specialize in business accounts, but if you can
      find a credit union that does that’s even better. But you want to start establishing
      a relationship with a smaller bank by opening up your business account there at
      a smaller bank. So then when you are ready to, when you do have a decent
      Paydex score, you can then talk to a banker as far as, starting the process of
      getting a business line of credit. In the meantime while you’re building your
      business credit, making your payments monthly and on time, and continuing to
      add different creditors consistently to the D&B profile which you should be doing
      and updating all the time, as you start acquiring different creditors. It’s strongly,
      strongly recommended that you’re rebuilding your personal credit in the interim,
      while you’re doing all this other stuff. You should not be leaving your personal
      credit in the dust, as you’re doing all of this you also should be building that as
      well. So again, while you’re doing the process of, after you setup your D&B, you
      should then start to apply with different creditors, and I’m going to explain which
      ones you should be targeting in the next segment.

Okay, I am going to explain this to you in phases. There are two different that you
should be focusing on when you’re starting the process of building business credit. I did
mention to you that you should get an Office Depot account, preliminarily you could
choose to do this either after or before, before, or after you get your D&B number. It’s
recommended that you don’t really apply for any credit until after you get a D&B                                                   Page 46
     Build Business Credit FAST - 2010 Course Audio Transcripts

number, but with Office Depot in particular ,they do not require a D&B number, and you
do want to be able to put some creditors on your initial D&B profile, and again, don’t feel
that you have to fill up all five creditors, that D&B requests, because even do just one in
the beginning because at any time you can add creditors to the D&B profile as you get
the creditors. So you don’t have to worry about that okay?          Now in your first 3-4
months, when you are starting to build credit terms, I strongly suggest that you focus on
the following companies; like I said Office Depot, Staples, Office Max, I recommend to
get an account with both FedEx and UPS, okay?            If you have employees, get an
account with Paychex, or ADP, and if you have a business that has any kind of
shipping, or need shipping supplies, I recommend you use a company called Uline. It’s
u, l, i, n, e .com, and they offer the best prices you’re going to get on shipping supplies
like bubble wrap and boxes, and those little peanuts, and stuff. You could also get
credit with Radio Shack, and I believe Orchards Supply, which is a company like Home
Depot but it’s not usually, but I don’t think it’s available everywhere in the US. So those
are the companies that you could focus on initially in your first three months, okay.
That’s Office Depot, Office Max, Staples, Uline, Radio Shack, Orchard Supply, FedEx,
UPS, and Paychex, but only if you have payroll that you need to pay out. So after your
first 90 days, you then move up. I had originally mentioned that you might want to
consider Dell, you could also consider Dell within your first 90 days, but you’ll have a
better chance of getting a higher credit limit if you wait after 90 days. So after 90 days
you could focus on Dell, HP, Home Depot, Lowe’s, and then you could also go to Best
Buy at that time,, and also any of the gas card companies, like Chevron, Shell, or Exxon
Mobil, that would be after 90 days okay, and then again, as you add credit accounts, be
sure to be very consistent as far as going back into the D&B system and updating these
accounts as you get them all right? Do not just wait until you’ve had the account for 6
months before adding to the D&B, because the more accounts you add to the D&B as
you get them, the stronger Paydex gets as time goes on. Then it allows you more and
more leverage okay? After about 6 months, you should be able to get a business line of
credit that’s a pretty decent amount. I mean you can get it within 90 days, but you’re
probably not going to be looking at the same type of amount that you’re going to be
looking at when getting when you’re waiting 6 months after you established your                                                   Page 47
     Build Business Credit FAST - 2010 Course Audio Transcripts

Paydex score. Absolutely critical that you tell everybody that you have been in business
two years or longer. I don’t care if it hasn’t shown that you have been in business. If
they ask you, “Hey, wait a minute. You said you’ve been in business for two years, but
yet it looks like you just incorporated this year.” You say, “Oh, I ran my business as a
sole proprietor and then I finally decided to incorporate because I’m getting larger and
larger.”   Most people buy that.    They don’t really question that so if anybody ever
questions why you just incorporated this year when you say you’ve been in business for
two years or four years or whatever you are saying, just say you ran the business as a
sole proprietor and you just barely got your corporation set up. A lot of people will
understand that. Okay, so another thing that you should consider like I said, some of
the larger banks are not as friendly, but some of the larger banks also have more
leverage as far as giving you more credit. Like for example, the Bank of America or
Wells Fargo.    They have the means.       You have to remember personal credit and
business credit are looked at differently. When people are giving out business credit,
they are a little bit more frugal, especially in this economy because usually people have
to show they have the means to pay back the personal credit, whether they are getting
a signature loan or a personal unsecured credit card, whatever. With a business, its’s a
little bit different. They are a little bit more liberal as far as giving out money because
they know that businesses are using the money for payroll and supplies and things to
build wealth and so you usually get larger amounts of money for both credit cards and
business lines of credit than you would even imagine you would get applying for any
kind of personal credit. So larger banks of the flip side, as I was just mentioning, you
should maybe try to establish a relationship with a smaller bank because you will
probably get a line of credit a lot faster, but if you do not have that option of having a
credit union or a smaller bank that you can work with that specializes in small business,
then you could consider Wells Fargo or Bank of America. It will just take a little bit
longer of a time to establish any kind of credit and you have to sort of do it a little bit
differently. Like for example, if you were to do it with Bank of America, you would have
to open up you business bank account. Then I strongly recommend that you purchase
a CD, which is a Certificate of Deposit. I could be a short-term one like a six month to a
year CD, and it could be $1,000, whatever you have available to be able to purchase                                                   Page 48
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the CD. And then when you purchase the CD, you borrow a small loan against the CD
and use the CD as collateral so it’s essentially a secured loan. So for example, if you
have a $5,000 CD, have them set up a secured line of credit for you for that $5,000 and
then go ahead and borrow the $5,000. Don’t just leave it in there. Borrow the $5,000,
take it out of the account, and then pay it back within a 90 day timeframe, okay? And
then again, this is stuff that you want to update with your D&B profile, but B of A and all
of those very large banks, as long as you give them your Dun & Bradstreet number
which is essential when you are borrowing any money from banks is to give them the
D&B number, make sure that when they do get the D&B number, because usually Bank
of America and all of those very large banks will automatically report this information as
if they would report it to your personal credit if it was a personal loan, which they don’t
because that’s the benefit of using business credit. None of this is reported on your
personal credit. But it’s the same steps that they take as far as if you have a loan with
them; they will report it automatically to Dun & Bradstreet provided that you did give
them that number when you opened up the loan. So go ahead and make sure that the
loan is paid. Once you do this over the course of six months, it should be fairly easy for
you to get lines of credit through the bank, but you are going to have to do it slowly but
surely. Like for example, if you were only able to do a $5,000 CD and borrow against
that, then you line of credit will probably be $10,000 or $15,000 or even $25,000 when
you borrow money the next time out, but the key is to be doing this consistently and
over and over and over again. So if you want to build credit quickly, you have to do it
within 90 day segments so for example, you will do your CD, borrow against your CD,
take the money out, and then pay it back within 90 days, and then do it again over the
course of another three months or maybe do two loans the next time out. Do a $2,500
loan or maybe two $5,000 loans for another three months and then after that you are
going to be building stellar credit during this time frame and if you do this properly and if
you do the loans where you take them out and you pay them back quickly, then the
bank will have no problem giving you $50,000 to $100,000 lines of credit within a six
month time frame. I’ve seen people get $200,000 and $250,000 credit lines within a 12
month time frame, just by using this system. So just keep going with CDs, borrowing
against the CDs with the secure line of credit, and also if you do have the means I                                                     Page 49
     Build Business Credit FAST - 2010 Course Audio Transcripts

would strongly recommend that you get a secured business credit card if you do not
have the availability of being able to get a unsecured business credit card because
initially some banks might not be willing to give you an unsecured business credit card
like a Visa or something like that so I recommend that you get a secured Visa, even if it
is only with $500 or $1,000 for the company so you can add that again, to your Dun
Bradstreet profile and that’s yet another creditor that you have on the very long list that
you acquired. So in a nutshell, that’s exactly how you should work this system. You do
not need attorney assisted companies to help you with the process. You don’t need
somebody else to do it for you to pay them a fee of $200 or $300 a month. Usually
that’s a rip-off. Usually they are not building your credit. They are just sucking you dry
every month so you could very easily do this on your own if you are consistent with
continuing the process of getting new creditors. Continuing the process of adding these
new creditors to your Dun & Bradstreet profile and just continuing with the process of
building that Paydex score as high as possible and once you build it over 80, the sky is
the limit. You could buy real estate. The sky is the limit as far as the type of financial
potential you will then have. Once you build credit for one company successfully, I
strongly recommend that you start with company number two and then start working on
that because that will then give you a least – that will give you much more leverage
financially if you are trying to build a very large business or if you are trying to use
money for real estate holdings. Okay, this is Monica Main signing off. You have a nice
wonderful, prosperous day.                                                   Page 50

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