I have seen a lot of information online about borrowing without a pg and I came across a program from Thomas (Tom) Kish. I would rather not spend $1k on the program plus I’ve read a lot of bad things about him. One of his emails said something about making sure that you choose the correct entity so you can get financing w/o a pg. I’m assuming that he was referring to a LLC or a S-corp. Then again I maybe wrong. Has anyone had any experience with this? Or has anyone gotten any of his programs (old or new)? Was the email misleading or is it easier to get financing w/o a pg with one entity over the other?
JakeRodgers has been working on this for awhile. He recommends going over to creditboards.com for more info. You can get a D&B number and try to build credit for an entity, but it will take time. I just do the pg and don’t worry about it.
No HML will lend to a corp or LLC with out you or someone else and a personal guarantor. Plus you will most likely be required to execute a Pledge and Security Agreement with the lender. Only big firms on Wall Street get loans in their own names with out a PG
Amen Justic, amen DHLC. I do believe it can be done for smaller companies, unfortunatley I’ve still never actually met anyone whose done it, so yeah…like justin said, ur better off reading the BizCredit boards at creditboards.com to get some info straight from the horses mouth. and maybe you can connect with someone there who’s actually had success getting loans with no pg…
The secret to NPG … Mainly in todays banking you will not find it among banks for actually loans. There are other ways. AMEX is one and you can cash out the credit line. BUt the trick it to get the big credit line. Now it is possible but it all takes time. Not 1 month or 3 months…It will take 9 months to 16 months to do it correctly. You need seasoning, you need loans to be paid off and show the abilities.
Are there short cuts…well very and I mean very few. Currently my business partner and myself are working on creating shelf corps for sale with the D&B and NPG lines in them. But how. Well even PG needs a 700 FICO but now you can actually go out create(add) ficitous name to a corp as a VP, use a CPN for that name and apply for only online credit. Staples, Dell, Office Depot, Wallmart, Best Buy, Apple, etc…over 60 retailer you can apply online and get lines from 500-10000 and many will allow you to buy cash cards with them so you can cash out the line but some work. BUt paying the lines is important to get to the NPG status. AMEX does it. 2 yrs min finanicals needed. About 4mil in sales as well…Good thing D&B lets you create the financials so you can fudge them there. It is a long process and takes time however…
yrush- from what I’ve read from other biz owners, you can’t get even small NPG credit lines from the companies you’ve listed without 3-5 other positively reporting tradelines and a Paydex score of 80…are you saying youve had success getting these credit lines without a PG? can you elaborate?
It is a process and yes you need a paydex score of at least 78. You start small. Currently we are still working on the entire business model before we roll out national advertising on the internet and TV/print. It is a long process like I mentioned, no short cuts. Many claim 1 month…leave those guys alone, they steal your money. We will not even require cash payments, can be done on a credit card which gives the power to dispute charges if services not rendered…
But basically. Get your corp. Attach a CPN to it. Apply for bank accounts using online banks. Then secure loans against those bank accounts and pay them off in 3-6 months. It will get reported to D&B and Experian. Getting chain credit cards is next. Also those chains will do cards. When you build your D&B profile, make sure company is over 7 yrs old for best results. Also want 10+ employees and 4+mil in sales. Remember they do not check. Big important set is to make the company real even if fake. Got to get it searchable on the web with goggle. Create website, make it functional. Business 411 listing and even if possible twitter, facebook and myspace layouts. Banks want to see the company exist. We are putting solid time frame on 9months to 16 months and will be charge 15% backend financing on lines when we roll. We are hoping to get to 100 corps a month sold.
However at time, no viewable info, we are in early stages practicing and building. We are now working on where we can use several CPN with fake names to make the company stronger financially with 5-7 people all have 700+ FICOs.
If it walks like duck! Yeah I’ve been in banking for almost 20 years either as a broker or wholesaler and trust me this is not legit! While you can fool some of the people some of the time you can’t fool all of the people all of the time. This is just the type of scam that makes being an honest investor difficult and you wonder why we are being attacked as rich bloated slum dogs! GEESH
Genie- don’t be too quick to automcatically write a concept off as illegal or fraudulent. if theres one thing I’ve learned since becoming involved with REI, its that almost EVERYTHING in business can be boiled down to a game, and the key to success is knowing the rules to the game and how to bend and circumvent the rules to your advantage. what we’re discussing here is definetely a grey area, so who knows exactly what the legal ramifications may be?
Jake The concept will become legal only after the government finds a way to profit off it. Until then I assure you it will be illegal to make a legitimate income off of this idea. As soon as it becomes mainstream by finding those loopholes, the government will be all over it, trying to regulate it so they can get their cut.
Do not be lured into thinking you can create an entity, get a paydex with D & B, and borrow money without a personal guarantee! These companies who charge fees for this are most likely thieves! Although it is simple to get a paydex credit rating, these companies who sell the idea of quick credit are not telling you the whole story. They use ‘made up’ facts about the entitly in order to obtain the D & B Rating and Paydex. If you use these made up numbers on a loan application, you are committing fraud.
If you want to do this legitimately, you must build your business over time, produce income, tax returns, postive cash flow in your business, and do this the old fashioned way. Then you can use the facts that are legitimate to build credit and borrow on the credentials of the entity.
Don’t take short cuts in this area…bank fraud has stiff penalties. No amount of money is worth the risk.
If you need money, just share your deals with another person who has the money or the credit.