Building Business Credit

Biz Credit is Important Too

In the past you’ve heard me speak, and maybe even have received information from me on a variety of business related funding products. You know how challenging it is to get capital in this mercurial economic environment, and I’ve striven to keep you informed with the most up to date info.

I understand that building positive business credit is serious, it takes time and dedication on the part of any business owner. For several years I’ve researched “Building Business Credit”. I’ve interviewed dozens of purveyors of the product. Never have I endorsed one because I didn’t want my sterling reputation tarnished. Over promise……..Under deliver…….was the typical mantra. Charging enormous up front fees and additional “points” on the back end…..They all sing the same tune. Until now……..

Self-Directed IRA

Become Your Own Bank

The Self-Directed IRA (SDIRA) puts you in control of your qualified accounts such as IRA’s, 401(k)’s,  403(b)’s, Keogh’s, SEP’s and more. With a SDIRA you have the flexibility to invest in real estate, mortgages, businesses, franchises, tax liens etc.  This gives you, not Wall Street, discretionary control of investment options, whether traditional or non-traditional. A Self-Directed IRA is a retirement plan that allows the account owner to direct investment decisions on behalf of the retirement plan. Basically, an SDIRA is a unique hybrid tool that utilizes a self-directed IRA custodian and a specialized legal structure. With an SDIRA you will have a checkbook, a debit card and all the tools that come along with a business checking account.

The SDIRA owner can use his retirement funds for a multitude of investments providing a higher potential rate of return. All you need to know are the few things you cannot do and the rest is up to your imagination.

Asset-Based Lending

A New Revitalization of an Old Lending Practice

In the simplest meaning, asset-based lending is any kind of lending secured by an asset. This means if the loan is not repaid, the asset is taken. A home mortgage is an example of an asset-backed loan. More commonly however, the phrase is used to describe lending to business and large corporations using assets not normally used in other loans. Typically, these loans are tied to inventory, accounts receivable, machinery and equipment, but they can also include exotic things like the value of pharmacy script files, a trademark, or whole assets of intellectual property. For example, Midway Games took out a line of credit secured by its Mortal Kombat game. If it fails to repay, the bank then owns the  franchise and can sell the rights to it.

Learn About Money

Make learning about money a priority

There’s a lot to learn about money, and there’s plenty of free information available. The Federal Reserve education web site,  offers personal financial education information and links to many useful resources.

Look for organizations in your community that can help you learn more about setting financial goals, budgeting, saving, using credit wisely and getting the best deal. Whether you attend information sessions at different venues, read about money in books, magazines, newspapers, or online, learning how to manage your money is an important part of life.

Here are some other possibilities:

  • Nonprofit credit counseling service.
  • Library.
  • Community college.
  • Bank or credit union.
  • Nonprofit community development corporation.
  • Nonprofit housing organization.
  • Religious organization.
  • Senior citizen center.
  • Employee assistance program.
  • Cooperative extension service.

Understanding Your Credit Score Part One

Payment History

The three major Credit Bureaus: Equifax, Experian, and TransUnion, all work off of a similar scoring system. This system is based on a singular postulation: will you become 90 days late in the next 2 years? The scoring system they all use, (with minute variables) can be broken down into 5 categories; or 5 pieces of a pie. I will discuss the first part of that credit pie today.

Your payment history is the largest aspect of your credit score, as you might expect. In total, your pay history accounts for 35% of your total score. This portion of your total score calculation is based on your prior payment history with your creditors. Late payments, defaulted accounts, bankruptcies, and all other NEGATIVE information on your credit report have the greatest effect. The more recent the late payment, the greater the damage is to your credit score. If you go late on your mortgage this month, the Mortgage Industry Option scoring model could drop your scores over 120 points. That is with only one 30 day late payment!

Has the Shelf Life of Shelf Corporations Expired

Shelf Corporations

Personally I think shelf corporations are a thing of the past.  Yet I get asked almost weekly about their value.

Here’s what I think:

A shelf corporation, shelf company, or aged corporation, is a company or corporation that has had no activity.  It was created and left with no activity-metaphorically put on the “shelf” to “age”.  The company can then be sold to a person or group of persons who wish to start a company without going through all the procedures of creating a new one.  Common reasons for buying a shelf corporation include:

  1. To save the time involved in taking the steps to create a new corporation.
  2. To gain the opportunity to bid on contracts.  Some jurisdictions require that a company be in business for a certain length of time to have this ability.
  3. To create an appearance of corporate longevity, which may boost investor or consumer confidence.
  4. To gain access to investment capital.

Factoring and accounts receivable financing.

A/R’s and P/O’s

Accounts receivable financing, sometimes known as factoring, enables a company to better meet the daily operational demands of running a business. This financing program advances the business money on their outstanding invoices, allowing the company to have consistent cash flow. Inadequate cash flow is the number one reason why businesses fail.

When to Use Accounts Receivable Financing / Factoring? Examples of when to use AR Factoring financing are described below:

  1.     Companies in a high growth cycle needing consistent operating capital (cash flow) to fuel their growth
  2.     Companies in survival mode needing consistent cash flow in order to fulfill their liabilities
  3.     Staffing agencies with high weekly payrolls requiring immediate cash on hand
  4.     Manufacturers and Business to Business service- oriented companies with high material and supply costs
  5.     Companies looking for alternative debt-free financing solutions to build their credit and enhance their business
  6.     Companies already leveraged by existing debt

New payment plan for business credit program.

Everyone that follows me knows this blog is not about selling you anything.  However I do promote what I think is the best and most reliable business credit building program in the country.  Excellent BBB rating and a 100% money back guarantee. Anyway, for many the $2000+ up front has always been a push for a lot of people.  The company now only requires $995 down and 6 payments of $200.  If you are interested in this program, now is the time to enroll.  You can contact me at:  303.513.8664

Best, Darrell

The Midas Guide to Credit and Business Funding

Well, after several years of research I’ve finally published my much anticipated E-book.  The Midas Guide to Credit and Business Funding is now available by going to:  And yes I’m pretty excited.  The hard launch was Monday and we’ve sold five books so far.

The book is broken into three sections.  The first section talks about both business and personal credit and dispels all myths about each.  Loaded with nothing but the facts and what you need to have to enjoy perfect personal and business credit.  The second section reveals all loan products available to a small biz owner.  In laymans terms, I describe each and every product so you can make an educated decision as to how and where you fit.  The third section is about something no one has ever written.  You all know I’m a loan broker.  I charge fees! Those fees can sometimes be hard to swallow.  With this guide I am providing the exact model I use to get people funded every day.  I tell you everything you need in your funding package and I give you two hours of personal counseling on picking a product and getting funded.  This sounds mundane but what if you could get the money you need and not have to pay thousands in broker fees?

Is “Building Business Credit” for REAL?

Darrell Hornbacher here.  In the past you’ve received information from me on a variety of business related funding products.  You know how challenging it is to get capital and I’ve striven to keep you informed with the most up to date info available on the market.

For several years I’ve researched “Building Business Credit”.  I’ve interviewed dozens of purveyors of the product.  Never have I endorsed one because I didn’t want my sterling reputation tarnished.  Over promise……..Under deliver…….was the typical mantra.  Charging enormous up front fees and additional “points” on the back end…..They all sing the same tune.  Until now……..

Last week (against my better judgment) I took the time to talk to one more of these guys.  I gotta tell ya, I’m glad I did.  For the first time I found someone that “tells the truth”!  Someone who has a program that actually builds business credit and gets the funding the rest only claim.  And best of all, at a reasonable price!