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SHELF
CORPORATIONS AND SHELF LLC'S
BASIC OPERATIONS
BUILD CORPORATE CREDIT
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When registering for
a Paydex score, make certain that the registration information matches
with the Secretary of State in the state in which the company was
filed. For example, if your company was filed in Wyoming, and also
filed in Florida, then make certain that both states report the same
information as what you place on the registration. That applies to all
information, such as your name as Director, all officer positions,
address of the company, etc.
Since there are many
companies filed with similar names, DNB doesn't like inconsistent or
confusing information. Your first step to make certain all data
reflecting your company is the same from the Secretary of State to the
local business license. You must receive mail at that address. And the
Director and officers must truly be involved in the day-to-day
operations of the business.
Dun and
Bradstreet (DNB.com) grants a score to a business that represents how
prompt payments are made to creditors. Paydex defines this for business
in terms of a number, such as a credit score. 0 is the lowest score and
100 is the highest. By looking up the Paydex score, a supplier or
vendor consider in establishing a trade line with any business. A score
of 75 is a reasonably good score. So, there you have it, Paydex is a
credit score for business.
There are certain
attributes and issues involving a Paydex score that you should consider:
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Creditors run a
D&B Business Credit Report to check your Paydex score and history.
This is to confirm your business, you and what you're doing. The
D&B Business Credit Report is not used to approve the credit line.
It's used as means to confirm identity.
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Paydex is
calculated and monitored daily whereas your personal credit history
is tracked monthly. This means that if you pay a business line of
credit a day late, this will negatively impact your Paydex score.
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A Paydex score of
over 80 means that your business pays early. This is a plus, but
not necessary because no one requires a score of over 80. Striving
for a score of over 80 won't help your business.
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A Paydex score of
80 means that your business pays everything on time and you're not
one day late.
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75 is a good
Paydex score. Some lenders require at least a 70 Paydex score.
Anything less than 65 seldom results in any lines of credit.
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Below is a table
of payment behavior and a corresponding Paydex score:
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Score: 100 =
Pay every business credit bill as anticipated.
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Score: 90 =
Pay every business credit bill at discount
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Score: 80 =
Pay every business credit bill on time, "prompt"
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Score: 77 =
Pay every business credit bill 5 days late.
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Score: 74 =
Pay every business credit bill 9 days late.
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Score: 70 =
Pay every business credit bill 15 days late.
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Any score
below 70 is a "no-no"
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As you see
from the above, choose your score by choosing how you pay every
business credit bill. If you pay everything promptly, then
you'll obtain a business credit score of 80. Don't be late,
even for one day. The first few accounts establish this Paydex
score. Other will follow as you maintain this score of 80 by
paying everything promptly.
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You need to
create a few Paydex scores. So, let's pick a few vendors known for
fast reporting. This means you need to buy something from them over
$50 to create the debt, and then pay it on time. And don't be one
day late! The following vendors report your Paydex score
immediately. When ordering, ask for a Net 30 account. This means
you must pay within 30 days. A couple of cash orders may be
necessary prior to them providing a Net 30 account. If that's the
case, then pay cash for the items, and then follow up on more orders
and then request a Net 30 account. This is what you need to
prepare:
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Ask for a Net
30 account (business account).
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The business
address and mailing address of your business. Yes, that means
that by the time you reached this point, your business address
and phone number for the business was established. The billing
address of the phone service matches up with the business
address. And the business address matches up with the local
business license, if any, and the information reflected with the
Secretary of State.
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Decide if the
shipping address is the same as the billing address of the
company.
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Your name as
contact for the company.
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The items
you're ordering.
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If they say
no, this means that a few cash orders are necessary before they
consider a Net 30 account (pay within 30 days).
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If approved,
ask for the account number. Keep a folder on your relationship
with each vendor in paper or on your computer.
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Provide
identification if they require it. This takes the form of a
driver's license for yourself. Forms of identification for a
business may be a business card, a local business license,
articles of incorporation, company check, or credit card with
the name of the business.
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Order at
least $50 from each supplier so the transaction is reportable to
Dun & Bradstreet.
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If the sales
person asks if you would like to pay by credit card, decline and
then ask for a NET 30 account. Since they ask you how this will
be paid, always ask for a NET 30 account. When they say no,
this means a few orders may be necessary (paying cash or credit
card) prior to establishing the NET 30 account.
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Once these
accounts are established, continue to order from them so you can
continue to build your Paydex score of 80 as you pay everything
on time. Remember, you can't be one day late!
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Here are the
providers:
ASSETPROFILE.COM
SHELF COMPANIES . BUILD CORPORATE
CREDIT . TRANSPARENCY
109 EAST 17TH
STREET, SUITE 25, CHEYENNE WY 82001
Office 307.237.2580, Fax 702.920.8824,
EMAIL
All Rights Reserved
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