What is Tax ID Financing?
This includes financing where we are able to utilize your business Tax ID EIN number to obtain funding that does not report to your personal credit.
Business credit does not report to personal credit, because it is not a Personal debt. Signing on a company, for a company card does not mean you own it, that’s why we use Corporations to obtain the financing. The credit card companies want an assurance that you will not default (Especially now) this is why they may ask for a PG, but once again they do not report on the personal credit, the only thing that shows is the inquiry which can be easily removed.
How many sources are used?
In total we have about 15 sources that can be utilized in this process. We will submit in Tiers of 3-4 sources per submission. If a file receives declines from all sources in the 1st Tier, we will not submit any further until credit is cleaned up. One must be approved on this 1st Tier; otherwise it pointless to submit for Tier 2 and above since credit would not be strong enough. So far we have been 100% successful in obtaining funds for clients with 680+ FICO scores.
Whose signature will be on the credit card?
Any cards applied for will be in the CFO's name. Once he receives the card, he has to call in and order additional for employees.
What if applicant is less than 51% owner?
They are not going to verify through IRS, however maybe through the secretary of state. If he claims anything less than 100% of ownership they will pull the other owners credit. If the other partner has good credit he may change the application to 49% and include his/her information before mailing it in. As long as he says he is 100% owner and has some type of document, like a business license with his name on it, he can show that to them as proof of ownership if the case arises.
As long as he/she is the only one in contact with SBA (meaning the other owner doesn't talk to them at all) and doesn't mention anyone else having ownership, It's definitely worth a shot.
I purchased an aged corp. with credit scoring; can we get No PG financing?
Most companies that sell the aged corps with trade lines (D&B and BUSINESS EXPERIAN) don’t realize that the address is what creates the credit file. To have D&B move your office location to a new one may and probably will cause a red flag, we've seen it happen a million times, the best way around this would be to have an inside salesperson at D&B. As for Experian they want everything faxed in, usually takes a few weeks for the update, but they want verification such as a utility bill etc. Now both of the business reports contain "KEY OFFICERS" which are a compiled list through applications of the primary officers of a corporation (President etc.) when you update the officers list at the SOS or Department of Corporations (Depending on your state) it may only reflect the new officers, however if you walk into a bank, and you say you own 100% of the company (Which you are almost always required to do, unless all officers have great credit) they can pull the reports and say, "You just took over ownership 2 weeks ago" then you have some explaining to do. You could always lie and falsify documents, which isn't always the smartest thing to do, but either way they will know, and the gig is up.
Where will the cards and funds be sent to?
All cards get sent to the business address. Our SBA source gets funded directly into the business bank account as well.
I am currently with XYZ credit services, can I still apply here?
We do not wish to apply clients that are enrolled in any other credit building programs. If we can't see where they have been applied with the other companies and for any reason we cross sources, then their application comes up as a duplicate. When this happens in the system, funding is denied.
Do I need a business bank account to apply?
It is beneficial to have or to open a business bank account for reference. They aren't going to want to lend to a company that does not have one. It raises the flag of them not being an operating company and will ask them for financial statements for proof.
I have a Sole Proprietorship, can I still apply?
Yes, even with a sole prop. you can obtain a business Tax ID number online which is required for this program.
When and how will I be contacted?
The lender should contact the client within a week or so. It takes them a little while. It may be by phone, email, or snail mail. Unfortunately they will not release any info to a 3rd party so we must wait for them to be contacted.
Is this program No Doc/Stated?
Yes, however, sometimes if sales are higher than $1 millon they will ask for documentation. Normally they will not request any type of financial statements. You want to be realistic, (no million dollar salaries) you can project what salaries and sales numbers you would like to use. If you do make over a million, we just want to be sure you can support that if it comes up. If you wish to go the stated route we advise you put less then 1 mil a year, such as something like $800k.