Scammers Handbook

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many variables involved can cause those to easily lose their way. I will attempt to simplify something that defies simplicity. The purpose of the ebook is to explain business credit as a

whole. For the most part, how to obtain it and leverage it as funding for business endeavors. The only way this can truly be understood is by use of parables, metaphors. And analogies. There is a science to it, to where it almost has a life of its own. The only thing i could compare it to would be the game of chess. Strategy plays such an intricate part in its success. Because different

businesses have different end goals, the general information(although it applies to all businesses)can only take those so far that dont watch all of the videos. The live session videos in the members area of gboogie.net help to expose the new small business owner to many of these variables. Questions are asks from individual owners of businesses in different industries from their prospective. This helps the new comer form strategies by taking in what resinates with them. What actually applies to their present situation. This also changes the way one would ask questions in the future because of a new found understanding of the system. This in turn prompts a better response to the question, Giving the business owner the precise information needed. Here is an example. I get this question all of the time.."Once i get a paydex score, how much can i get?". There are alot of things wrong with that question. The first, thinking that a paydex score from dun and bradstreet even means something. Individuals new to business find themselves engulfed with an array of propaganda perpetuated by the internet, and business credit forums and blogs. In actuality, the paydex score is something that has been restructured for public misconception. Dun and bradstreet actually gives you a business "credit score" that has nothing to do with a paydex score at all. That is the number that comes into consideration on lendability issues(among other factors). For those who have been in business for the last 10 years, and are familiar with dnb may remember that it used to take five tradelines to acquire a paydex score. These numbers were adjusted once dnb realized people were putting their faith primarily in that score's number. I will do my best to explain the credit building process without using legal terms and jargon. I will, instead give examples and comparisons in everyday layman terms.

As you can see from the sample file above, there are many different elements to scoring when it comes to dnb. The paydex score simply means that you have completed three or more transactions with vendors. It has no real bearing on your company's lendibility. For a business to be truly lendable, it must have value or potential value. Some work must be done on the owner's side of things to build the business properly. Because business credit has become a hot topic for those with bad personal credit, this has also come to the attention of the credit bureaus as well. They have taken certain measures to deter those seeking a "second chance" through their business' credit. Case and point, dnb's new i-update that asks you submit your personal information. This is due to an alliance formed between them and

transunion. Dun and bradstreet gets a little credibility in the credit bureau

world(because they are viewed as extortionist),as well as access to personal information to cross reference in their system. While transunion also benefits through shared

information. This has all been done to prevent individuals from starting businesses and obtain credit without intentions to repay the debt. Only to start another business and do the same thing again. With this cross referencing, business owners previously in default on former businesses are instantly recognized and given a "high risk" status on their current company's business credit report. Essentially "red flagging" them. Now that we have covered that, lets talk about some methods that can make your business lendable.

Legitimate businesses usually share similar traits.

· They usually have employees(even if the owner is the only one)(w-4's filed and the

proper withholdings, withheld)(workman’s comp, etc)(quarterly taxes paid, etc)

· If they are a corporation, they would have their corporate kit properly filled

out.(meetings, minutes, stock certificates filled out)(corporate bylaws, etc)

· They would have stationary or business cards. · They would have a comprehensive business plan

· They would have the proper licensing for their field of business.

· They would have a business phone number listed with 411 as well a a fax number · Some will even have promotional items with the company's logo.

· Some also have a toll free number with a professional sounding message when

called after office hours.

· Some(but not all) have basic websites

These are just some of the things that most businesses trying to make a profit have in common.

The point is, even your average everyday, run of the mill scammer would also have to go through these checkpoints. So I will even write this for the individual that’s doesn’t even really want to start a business, but just needs access to cash for whatever reason and this is the avenue that was chosen.

Let me start right off by explaining what cant be done. If you have had a previous business that achieved some credit in the past, but was defaulted on then you cannot fill out a ein application. At least not for a new corp that you plan to build business credit on quickly. Because of the economy(The banking industry for the most part), Credit

bureaus have been forced to step up their investigative techniques. They have very sophisticated cross referencing, and indexing software. Believe it or not, they even cross reference your relatives, friends and co-workers. Basically, once you mess up once you would have to use a nominee to set up another company.

If you have never set up a business before or applied for an ein, You are safe for the most part. All you would have to do is basically follow the steps. Concentrating more on business than credit always ensures that most bases will covered. Most individuals I run across think credit first, and usually fail to pay attention to the business details. This usually results in getting turned down for business credit. As I stated above, I write this for both individuals. I wrote somewhere in a previous ebook that trying to use business credit as a means of income or financing is the same as being a “cobbler”. Not the shoe maker, but the person who specializes in new identities. The art of creating an identity that didn’t previously exist is an old skill that dates back very far in history. The different methods available relate a lot to business credit because it involves variables. Variables such as age, race, and country of origin come into play. Whereas with business credit; the nature of the business, time in business, and the companys’ net worth are a few factors. They both all boil down to where and how to inject the information into system so that it can be verified by third party sources.

Let me give a “cobbling” example, and then we will move on to business credit. Lets say there is a man who needs a new identity for whatever the reason. Not only does he need a new name, but he would also like that new name to have good personal credit. Of course what good is a new identity if your credit is bad? One of the older outdated methods used to be to use an identity of someone roughly the same age who has passed away. Then simply obtain a new ssn and drivers license. The older methods of building the personal credit could be done by piggybacking off of authorized user accounts would have been the easiest route. This method no longer works. In the business credit world its equivalent to reinstating a dead corp and then buying trade lines which also no longer works. The problem that most have is that they never really learn the system. They just get comfortable to lax rules when things are good and they just slip through the cracks. In other words they just got lucky because times weren’t tough. With the identity example 9/11 caused laws to toughen up. So anyone using lazy methods would find themselves out in the cold because they never really learned to “cobble”. They were just stuck in a cookie cutter method that worked until it didn’t anymore. When trying to get caught up to speed they realize that they cannot keep the pace because as they learn, they are really still only learning methods that were just as old as the ones they were using. The same is true for business credit. You still have people out there to this day trying to sell shelf corps with nothing more than a paydex score. This is usually done by someone who has never even successfully built a corporation to the level of substantial credit. There are still individuals out there trying to sell you reinstated

corporations. Their thinking is” just because its old it will get approved for credit”. This could not be further from the truth. Only functioning businesses receive lines of credit. Meaning, only businesses with employees that actually perform some kind of service or sell some type of product get approved for credit.

I was speaking with a capo the other day while we were working on the shelf corp product. Its was more of a ghost writing type of deal because of my schedule. I

remember mentioning the phrase "cash card kung fu". The phrase comes to mind every time i think of the different methods for achieving large cash credit accounts. The

reason being, nothing is really cut and dry or straight forward. it is all an art, or finesse to put it a different way. If you were to ask a martial arts expert, "how do I block a punch?" his response may be "what kind of punch?" If you were to answer "a jab", his next question may be "left or right hand?". This is the same dilemma we face when trying to explain how to build business credit. Questions like "how can i build credit for my business?". My answer is usually "what kind of business do you have?" and round and round we go...

This is why we use so many different methods (kung fu styles) to spark creative, problem solving mentalities. This way you will know all of the ways a punch can be blocked, then use your own judgement on how to block it. Everything becomes organic and not stiff. Free flowing and not boxy. You must learn to be conscious of variables. In this example the variables would be; how tall is the person punching? ,what kind of punch? ,which hand?, are they leaning in or not? , are they off balance? , etc.. When things are analyzed like so you begin to see that that a question once thought to be simple, sometimes cannot be simply answered. With that being said, welcome to my kung fu.

The first step to truly understanding these methods is to think outside the box. I will explain this in a thinking out loud instructional way. as if you were in the room and i am explaining everything as i go. Making sure to point out the "why" which is very important for learning.

because i am not the best Ebook writer, i always like to write the way talk, as well as the way i think things through. i like to write it as though your are right next to me looking over my shoulder as i am explaining what I’m doing. Hopefully this writing format will put the reader inside my head and see things from my perspective. I will be using several analogies to get my point across so Let’s start with the first one.

Lets say i live in a small US town that has only one main money man to borrow money from. Lets also stipulate that he only lends money to people who have references that he can verify. It is also important to mention that he has a very large family. With all of this being said, how do we get the main money man to finance our new business? This is where the "kung fu" comes in. I call it cash card kung fu but its really "business credit" kung fu. it all starts with a problem that needs a methodical solution that makes sense.

getting back into the example, lets say the main money guy is very suspicious of people he doesnt know. Let us alo state that he has an extensive information network that allows him to check you out thoroughly. How do you approach him? Can you even approach him? in this simple but very relevent example i would go for one of the younger siblings. seeing that the main money guy is related, and the younger sibling is more accessible i would build my relationship that way. Almost like the way the police bust low level drug dealers to work their way up the chain to the head man. I would know that by making a few successful transactions with one of the younger siblings it would give me a little credibility with the older more established relatives.I could really stop right here, and be confident that you get what im saying but i believe even that is too vague so lets dive deeper. lets have some fun and actually put this in a business credit perspective. Dont worry we will go with another easy one. There are alot of websites that concentrate most of their time on findng trade lines. They go to sites like

creditboards, and different forums to find new companies that report trade activity. This problem can also be attacked in the same manner as the sibling example. Always shoot for the siblings. A good example to use would be NEBS. Although it has been disputed many time whether nebs reports to dnb or not(they do), we will use them for this

example.If nebs was the only company i knew for fact that reported, i would start from there. Nebs is a subsidiary of deluxe enterpsises(main money guy).By doing some quick and easy searching i can find all of the subs,call them up and verify if they report(which they usually do) and start my list.Here is just a few of nebs' siblings:(Chiswick, Inc.; McBee Systems, Inc.; NEBS Business Products Ltd. (Canada); NEBS Payroll Service Ltd. (Canada); PremiumWear, Inc.; Rapidforms, Inc.; Russell & Miller, Inc.; Safeguard

Business Systems, Inc.; Safeguard Business Systems Ltd. (Canada); VeriPack.com, Inc). This doesnt count the fact that all of these companies are owned by deluxe corp. A quick check of what these companies do, and what type of accounts they offer will let you know if they can be used or not. I will not give it away, i will let you find out for yourself. Lets just assume for a minute that they all report trades to dnb(including the ones in canada). Just from doing a little reasearch you can easily find trade lines. This mentality serves well when it comes to revolving accounts too.If one's main goal was to get a CITIbusiness card, Then citi subsidiaries would be would be the main target. We would seek out subs that offer net terms.Just off the top of my head i know quill and tech depot are each in the citi circle. They both offer net terms.For a stronger picture one would only have to profile citi group.Im sure WIKI has a break down of the company and its subsidiaries.This would let you know what other companies it owns or underwrites.

When it comes down to what the quickest, and easiest bank to target is citi is #1 on the list.

For the rest of this ebook I will go through all of the steps i use when building a corporation for the purpose of funding. So without any further delay, I would like to invite you to experience “The scammers handbook”

communication, manufacturing , and energy are the top sic codes. I have always favored electronic communications the most. When possible I even combine a manufacturing component to the business giving that little extra kick. For the sake of this ebook I will be starting a wireless repeater company. A repeater is similar to a router but works in reverse. With the right software and a little know how you can turn a household router into a wi-fi finding repeater with a range of over a mile(depending on line of site). Sound very technical. But it is very easy. By going here..

http://www.webstersonline.com/sicresults.asp?siccode=4812 I can find what the proper sic code would be for that type of business which is 3661. I can also find out that the NAICS code for that same business is 33421. I will need to know this when its time to fill out the ccr registration. We will get to that later. After narrowing down what name I am going to use for this business.

Step2) I am ready to apply for an ein number. The online ein assistant is located at this linkhttps://sa1.www4.irs.gov/modiein/individual/index.jsp but i would instead elect to call this number

(800) 829-4933 to receive my

incorporate the business. We have a few offices in north Carolina so depending on if I am in that state at the time I would incorporate there. Lets assume that it will be a NC corp. Also note that I will not be aging the business at all. If I was going to age it then on line 10 of the ss-4 form I would back date it close to 2 years.

Step3)Now I would incorporate. This process is actually easier the the ein application. It doesn’t even require a lot of information because there are only a few lines to fill out. What I decided to do instead is place a sample image below.

As you can see there are only a few simple lines to fill out and that’s it. Throw in a money order for $135 and wait until it is mailed back to me me. While im waiting for that I can begin to do the most important part of the entire ordeal and that’s the listings and registrations. I will need a business line as well which I will use icall for.

Step4) Icall is kind of like an iphone for your computer. Its free and comes with a local number plus extension. The computer will actually ring when someone calls. You can also place calls using icall from your computer to pretty much anyone. Each call is limited to 5 minutes though but that’s enough time for business purposes. Icall can be

downloaded here for free.http://icall.com/ . Now that im armed with my new business number I can begin to list my business phone number as well as any related business information to start it on its journey through various databases. I do all of this before I even apply for my dnb number. If I wanted to include the capability to receive incoming faxes then I would use k-7.net which is also a free service.

Step5) locallytype(http://www.locallytype.com/pages/submit.htm) and

superpages(http://www.superpages.com) is where I will start my listings. With Icall I would not be able to list with listyourself.net(http://www.listyourself.net/) . Because of the fact that icall has an extension number attached, I would not be able to verify the

number when it calls to validate the business phone number. I say that just in case some of you were wondering why I didn’t include it. For maximum effect, and minimum laziness it always better to list with every single US site that they have. You can bypass the ones that make you pay a fee because there are more than just a few on that page. Its always good practice to also list with as many foreign ones as you can as well. If you do get lazy and I begins to get monotonous, just make sure that you list with all the infousa sites because that is the bread and butter. Its where credit.net gets most of its information and they sell business credit reports as well. After finishing off locallytype I would then head over to getlisted.org (http://getlisted.org/) . In some circumstances I will pay the $4 a month for the verizon wireless listings if I happen to be using a cell phone as the main business line(http://multimedia.verizon.com/listings/). For this particular business I would pass. Then I would list with manta.com(http://www.manta.com) . I would normally round out the list by setting the company up its own google business page so that I can get the google 411 listing as well as the google maps listing. Then I would move on to the next leg of the trip.

Step6)All of the previous steps would be accomplished in the same day. I would then immediately apply for a free staples and office depot rewards card.(

http://www.staples.com/sbd/cre/marketing/easybutton/rewards.html)

(https://www.myworkliferewards.com/loyalty/enrollment.do). They both have pretty simple applications, and you receive you rewards number instantly. Once I have them both secured I would later that day go to both store and purchase something(anything) and make sure I use those numbers. If, while building the corporation it just so happens to be towards the end of the month I would make sure that I went in again to repeat the process as soon as the next month came in. The purpose of this is, they record your purchases to help them see what you buy. It helps with target marketing so they know exactly what type of ads to send you based on your spending habits. Its also in a small way causes you to be considered a customer. It even put you inside the jp morgan/chase database as well.

Step7)After that I would start my catalog run. I immediately double back to staples and office depot for catalogs first

(http://www.staples.com/office/supplies/reqcat1?storeId=10001&langId=-1)

(https://www.officedepot.com/catalogrequest/catalogRequestDisplay.do;jsessionid=0000 UaJqZNDZ5bkUJ3KNSZ8U1hM:13ddprb4e) Catalogs are a very important part of the whole process. Some net 30 vendors will not grant you credit if you are not already a current customer. Catalogs come with customer Id numbers making the ordering

process a whole lot smoother while also increasing your chances of easy approval. You don’t ever have to apply for every single catalog there is, just the main companies that you would need credit from. My list would consist of

uline,grainger,quill,gemplers,reliable and northern tool. If you have noticed so far, the only money that has been spent was on incorporating and a few insignificant purchases from staples and office depot. The bulk of the work is all listings catalogs, and

registrations and we are nowhere near finished. Usually on the first day of catalogs I would stop with the ones I just mentioned and give that time to be digested by the

databases. This normally takes a few weeks but as soon as the catalogs arrive I would begin placing net 30 orders.

Step8) After that is all done I would go the experian’s business website and register with them. This requires a debit card number. The card doesn’t have to have any money on it. There is just a space for it for future products you may purchase from them so they ask you to put one on file to make life easier for you. Obviously this helps to get you into their database a lot faster. This one is self explanatory so I wont go too deep into that. Step9) obtain a free dun and bradstreet number in one day from their government grants website(http://fedgov.dnb.com/webform). This is also a very important step for the

scammer. You always have to remember that you must include everything correctly the very first time. If you later decide to go back in to add employees or submit financial statements they will charge you a fee and even hold up your trade lines in some cases. The trick is to stay as far away from them as possible. The only catch with obtaining your dnb number from that site is you will have to make sure that you complete the ccr

registration or things wont work out like you plan them to. It is very important to understand that you will have to list at least 5 employees with your company. Anything under that and you will not get a rating because your company will be considered as being too small. Also, when inputting your estimated annual earnings, you must always make sure that the numbers make sense and are properly proportioned. For this

example I will use 6 employees with estimated earnings of $275k. The reason I use these numbers is because they are more believable in this current financial climate. Even if all employees got paid the same salary it would be somewhere around $30k or so counting expenses. This all needs to be taken into account ahead of time so you know how the financials will have to look. I use manta.com to get a good guestimation of what the average number of employees are nationally for the type of business. Here is just a quick

After taking some time to go through a few of the smaller companies in the same field, I can always get an idea of where I would sit. Six employees is fine because a lagre majority of the businesses had less then that meaning im not at the bottom percentage which is fine. This comes in handy because dnb rates your business based on similar businesses it has in there database. Once I check a large number of them, I simply go over to dnb’s website to see if those companies are listed with dnb. I also check there annual gross as well to make sure that I am well within the threshold. Although I make sure my numbers are correct in my head, I don’t upload financials to them just yet. I will explain why much later. Just a quick note on how I do my employees. They can always be family or friends but they must be real people. They will not need to perform any duties or anything. This is simply needed on paper only.

Step10)Once your corporation paperwork comes back, open a business bank account. You will want to do this before you fill out the ccr. The reason being, there is a space on the ccr registration where you will have to include bank account information. It will not show as being completed if you just skip over it. You can always just put anything on there but its way to easy to simply put legit banking info on the registration. For those who have been red flagged by telechek,chexsystems,or even EWS. There is a list of banks that don’t report to chexsystems . Sometime it can be a chore depending on where you live, but there is always one out there somewhere. If push ever comes to shove you can always get a prepaid and use the routing number and account number

that comes with the direct deposit feature of that card. It wont be in the business name but at least it will be real. Also most banks will want you to have your corporate kit as well. This comes with the stock certificates,meetings and minutes as well as your

corporate seal. The kit also comes with corporate resolutions that some banks require in order to open up a corporate account. Corporate resolution is basically a piece of paper that says you have the authority to open a bank account on behalf of the business. Step11)Now I would fill out the ccr registration (https://www.bpn.gov/ccr/default.aspx). This registration process is similar to the D&B number request, except you will need to have your sic code handy and your naics number. It is a very lengthy application to fill out. Because I would have to actually fill one out to be able to do a screen capture, I will not be able to paste screenshots of this process. It is all pretty self explanatory, but my goal for this ebook was to take the guess work out of the whole process. This one you will have to brave alone.

Im going to stop here for a second before i start to apply to net 30 vendors. I have to get my employees and financials together to upload to dnb.Financials are the actual heart and soul of your business credit report.This gives the lender and vendors a picture of your financial status. The trick is to create a great

financial snapshot while not leaving yourself a heavy tax liability. Contrary to popular

internet mythology, a financial statement has to do with more than just projections. If i was to claim that my company made $1mil dollars last year i would have to pay(roughly)$370k in taxes. Even after itemizing as much as i could it would not make sense to itemize all the way down to zero. So its all about giving the

appearance of equity and profit. A new business makes it almost impossible to get a full

financial snapshop. What i do is create equity in the form of inventory. But with equity you also need sales(income). It has to be balanced out enough to where it all compensates the amount of employees the company has. It also must take into account the employees and expenses. This is not as tough a feat as it sounds. I will attempt to take the mystery out of this process.

Since im using six employees for this corp there are a ffew option I can use here.If I am going the scammer route, I can just basically make them up. If I am going to build it for the long haul I will need friends and family to serve as employees on paper. I would have them fill out a W-4 for and an application, and I would calculate their pay to where they wont have to pay any taxes as well. I could always set their salaries very low and justify my tax deductions with expense accounts for each. For example all employees salaries could start at $1 dollar a year but I could add per diem at what ever rate I choose. That way the expense account is a write off for the business and the employee doesn’t owe any taxes. I would have to set my company’s revenue number from the start and then work backwards to reduce any tax liability for the company or at least bring It down to a minimum. My number as stated earlier is $275k which would bring my tax obligation to roughly $102k. I would work in reverse to itemize this amount down low enough to pass scrutiny. Is everyone with me so far? Great then lets get started:

I would make each employee single and a non dependent. If I have them fill out a W-4 form I would have them put down “exempt” from taxes on line 7 of the form. I would set

everyone’s salary at $8500 each. That times six equals $51k cutting the tax liability completely in half because salaries are business expenses. So half of the work is done. I could actually tweak the numbers of income a bit higher if I wanted to but I will leave it there for simplicity. The rest can easily be itemized down with:

· Fuel expense · Office lease · Utilities · Office supplies · Office expenses · Phone expenses

· Equipment purchase or lease · Vendors/suppliers · Book keeping · Employee expenses(lunch,fuel,travel) · Payroll service · Misc expenses · Employee training · Shipping · Etc

If it happened to be the beginning of the year I would give these figures as last years numbers. It would still be early for filing taxes and it would not appear strange that I haven’t filed yet. I would then submit the current years numbers as almost double that so that it will jive with the projections and all make sense. For the previous year I would probably leave roughly $10k as profit causing me to only owe(roughly)$3,800 with time left to file. Small price to pay when the time comes. It would be paid out of credit that was leveraged anyway later down the line. Small price to pay. Here is a link to a sample

financial statement.

· http://www.toolkit.com/small_business_guide/sbg.aspx?nid=P06_1578 · http://taxguide.completetax.com/text/Q13_2570.asp

I have also included with this ebook an awesome financial statement template from the texas banking department. It is a very good template to go off of that should get you started pretty good.

After I finish my financial statement im ready to upload it to dnb. If I have a cpa that will sign off on it that would be the best way to go. If not, I will simply upload it without one. They use what they call the “duns right” format to make sure everything is formatted correctly to their specifications. Although I have finished my financials I will not upload them at this time. That will come much later on. Its just at this stage you need to already have them done and ready to submit.

When I ended the list earlier I was almost at the stage where I would place my first net 30 orders with vendors. Before I walk through that I have to make a few points about dnb and being red flagged. If you have ever had a previous business that went into default for any reason, chances are you are red flagged. There are working very hard to catalog and inventory everyone. They are trying to make it to where you only get one bite at the apple. So if you are a person in that situation you will have to use a nominee

that cannot be traced back to you. A friend or family member that does not live at the same address. Once the business is off the ground then you can take over. They use their own algorithm to find you and also assess your company’s credit worthiness. Its called “duns right”.

This is how they calculate your credit score along with other relevant scores. The paydex score in itself has nothing to do with your credit score at all. As you can see from

the image above, these are the basic 4 attributes their computer looks for when making a determination about your company.

These are the weapons and methods they use to track you. This is from their own website as you can see. The whole trick is to beat the computer. Basically feeding it the

information that it wants to find. When knowing exactly what its looking for and how it goes about finding it we stay one step ahead of it. This is hugely the reason for all of the

The number 4 option above is the one I was speaking on earlier. They check to see if you are even a member of another company even if the company is overseas. They search for your name particularly. This is the purpose of joining certain rewards clubs etc, making it easy to find you in the system. It also works the same if you have been red flagged. Make no mistake, they will find you if you had a previously failed business. They

have even spun off one of their subsidiaries aimed at pretty much forcing you to pay for the services. Here is an article from bloomberg businessweek dated January 13,2011 :

http://www.businessweek.com/smallbiz/content/jan2011/sb20110113_331630.htm I will paste some of the key points mentioned directly from the horses mouth:

The Dun & Bradstreet brand has been synonymous with credit reports for most of its 159-year history.

To business owners like Marilyn Landis, though, the name also means hard-sell pitches for information

few businesses need. Her Pittsburgh financial consulting firm, Basic Business Concepts, got a call from

D&B in December with a warning that another business had requested the company's credit file. The

caller suggested that Landis' business might look risky to vendors if she didn't pay to update her credit

report with revised financial data. "What it's doing is scaring small businesses," says Landis, the former

chair of the National Small Business Assn……

Revenue at the small business division, which charges companies to rate their creditworthiness, was

declining by double digits under D&B's ownership. Stibel acknowledges he has to approach customers

in a new way. "There was a fair amount of fear-based selling, and that's something that we are trying to

dramatically change………

Because many small business transactions aren't reported to D&B, a company's file may make it look

riskier than its complete payment history would, says Doug Palmer, a Bethesda (Md.) accountant. Few

businesses or lenders consider D&B records essential for credit decisions, Palmer says. Like Landis, he

advises clients not to pay for D&B products unless a specific creditor requires it. "Vendors and

suppliers ... would much rather see financial statements and [check] trade references" than buy D&B

reports, he says ……

That's why Stibel is exploring ways to help companies manage their reputations beyond credit.

"Businesses are confused and paralyzed," he says, "because they don't know where to start" managing

how they are perceived online.

There you have it. Feel free to read the rest of the article. They are clearly revamping the whole company for the new year to come. Its actually one of the few times I have

heard dnb’s rough tactics actually mentioned in public. Sure its on forums and everywhere else but I have never seen it on bloomberg. I guess enough people simply

got tired of the lies they tell and the way they do business. Until they get their act together I will arm you with what you neeed to know to avoid as much of it as possible. Lets take this time to go over the dun and bradstreet business credit report one page at

I will now walk you through a complete dnb report. This is a sample from their own website. Some have never even seen a full report before only the eupdate. This should

once and for all explain to the internet business credit community that just having a paydex score gets you nowhere.

As you can see above, there are a few of the thing listed that I mentioned earlier. This was all previosly going to be a powerpoint presentation which is why they are all in the

As you can see, this is the actual first page of your business credit report.Its simply lists your business name,duns number, and business address.

As you can see, this company has a paydex score of 70. You will soon see that it means absolutely nothing after looking at the rest of the business credit file. My goal is to change what the internet tells you about obtaining credit. I get the same questions everyday saying..”I have a paydex score now, what should I be able to get?” I always respond back saying..”I don’t know, I would have to see your file. That’s the only way I would know what your credit score is” A paydex score is merely an acknowledgement of

three succesful business transactions. That’s it. They could have all been made using cash and no credit.

As you can immediately see, they have been classified as being high risk. I chose this particular sample report to use because it perfectly displays the points I want to get across. So obviously if credit were to be extended to this company it definitely would not

be based on their paydex score. It has been given the highest risk number on the scale. This element may not be as fair as it could be. Its all calculated based on other companies in their database. They use this along with your current pay history to determine the odds on you not paying your debts. Normally as long as you have paid everything on time and have several trade lines on your file for them to draw from you

This is where,based on similar companies in their database they decide whether your industry becomes financially strectched too thin. For example, A lawn care service is a seasonal business so obviously in the winter months there is less work to do. So over a

12 month span if the business stays open all year round it will still have the same bills but less money coming in to pay them. Another example would be an orange grower. Crop yields would be determined by the weather. A bad stretch of cold weather would

This next page of your report contains your basic business information. How many branches you have if any as well as what the business does and

its sic code. It lists how many employees you have and even how many at the headquarters. You will notice that under “sic financial condition” they

have listed the business as fair. These stats are based on financial statements that you send in to dnb. The history is also clear meaning that D&B was able to verify the information the company submitted. If it cannot verify certain information you will be given a status of incomplete. It is very

Of course as you can see, this is the public filings section. It lists any liens or judgements the company make have against it. It also lists any ucc’s the

company may have filed against it. Ucc’s can be used to show past transactions on a new business and in a sense aging it. As an example, if a

business was started yesterday a ucc-1 could be filed listing details of secured transactions that date back further than yesterday. This causes it to created a secured trade reference. This is different from a trade line but serves a similar purpose. I will not list details of this procedure because there is already an ebook that describes this process as well as explains

This is a very important part of your d&b business credit report. As you can see the rating is based the company’s financial position as well as the number of employees. These are the same parameters use to distinguish between what is considered a large or small business. If your company has

4 employees or less dnb will not even give you a rating. Obviously while building your business credit you will want your rating as high as possible.

You must make sure that if you are fudging numbers that you fall somewhere in the middle. Its always a safe rout to take. Below is just a

small image of the dnb ratings chart. The full chart can be found here http://icreditconnection.com/Building%20Business%20credit/DnB%20rating

From the 3A4 rating the above company has, you can see that the 4 is for “limited”. I wuld want my business to at least fall somewhere between 1A and BB. Use this chart as a guide. These are the things the average new

business owners need to know to avoid making mistakes. Its one of the reasons we never have any problems building business credit on our shelf

This section is as important as the last one. This is your financial snap shot. This is similar to what I explained earlier about the financial statement. This will give you an

idea of what they do with the information and how it appears on report. This should further drive the point home clearly that obtaining financing has nothing to do with a paydex score. When preparing your financials make sure your ratios fall somewhere in

This is a simple listing of any domestic companies your company may own as subsidiaries. Basically all self explanatory.

Now we are getting to the meat in the sandwich. For the most part this is the section that breaks down what you can qualify for. Let begin to dig into this part of the d&b business

As you can see here, they average out your trade lines. They also display your net worth and how much money your company has to work with. Most new business owners never even see this part of their report. To get the most out of your report you must be aware

of whats in it and how its used by vendors. It is to your benefit to upload a financial statement to dnb every 3 months. Each statement should show a positive growth in all

Normally this page would indicate a recommended credit limit. This is the number the vendors go by to determine how much credit to extend you. Many of you may have heard me on youtube videos saying “it’s all about your file”. This is what I meant by that. As you can clearly see, there is so much that goes into it. A laundry list of variables. Always keep these points in mind when considering your plan to build your business credit. Knowing

This particular page kind of speaks for itself. This number is totally based on the industry you are in. It lists the probability that you will close the business owing debt or

either getting bailed out. If you noticed,this is a printing company and it says this sic code fails 8% of the time. It also says that 8% is three times higher than the average business sic codes they have on file. That would make this a high risk business. Hence the high risk indicators we saw earlier. Although it sits at a higher risk, it still receives a

This is pretty much the same as the last slide. It does give you a few more pieces of information. You can see the financial stress score is 1263 which places it more towards

the high risk side. It also shows you that these decisions are made based on comparing similar companies in its database. This continues to show the type of business you are

This is simply the page that gives more specifics on why it issued the stress class rating. It tell you why it was either high or low. Some of the pages are slightly redundant but in

most cases they have an extra piece of information. Its usually that or the following pages are there to explain it in layman’s terms.

This would be your business’ actual financial stress indication. This one would deal with your company and is not based on other companies in there database. As you can see

Just by looking at this page of your dun and bradstreet business credit report its pretty self explanatory. I feel that being able to actually see all of what goes on behind the scenes, helps in your preparation as well as understanding about how business credit

This is the last page of this section of your report. As you can see it’s simply a recap of everything. Overall this company has a high risk. I feel this is important for the public to

OK! Now we will get in to the trade lines and the payment details. This should be a very educational look into this breakdown.

In the image above you will notice that this company has an paydex score of 47. You can also see that d&b says the norm for that type of company is 77. A little further down you

can see that the company has 60 trade lines but only pays its bills on time 23% of the time. This is very similar to the snapshot you see when you look at your dnb eupdate.

At going over the last section, these sections are very easy to read and require little explanation.

This page shows you the paydex score’s highs and lows for the past 12 months. It never went higher than 47.

This one shows you the same thing but from the previous year. This also helps to dispel the myth that d&b only keeps your information on file for one year. You can now see for

This page breaks the trades down by amounts. Its lets the vendor see the percentage a company pays based on how much the trade line was. I feel this is also a very important thing to know. It lets you know that you would really want to pay you highest lines on time

because someone is checking. So just know that if you apply to a vendor and request a $5000 line of credit they are able to see if you have open credit close to that amount and

Of course this is another familiar sight for those who have ever checked their dnb eupdate. This is where it breaks down your trade lines. This page explains how much the trade line was for as well as whether or not it was paid on time. These numbers are

This is simply the continuation of that page. Remember earlier we saw that this business had 60 trade lines.

This page of your business credit report breaks down your trade payment history for the last two years. I am sure at this point you notice there is a great deal of redundancy and

overkill in some of the pages. I figure since I started going through the report it would not be right if I didn’t show it all to you. I will be sure to keep the comments brief if the

This is a snap shot of the public filings against this company. Public filings are pretty self explanatory as well.

This company currently has unsatisfied judgments against it. This counts against you on your overall financial stress score as well as your financial risk score.

This is the section on liens. You will notice that sometimes the amounts are shown which helps to give a potential lender a full picture of how much is outstanding. When

This is the ucc filings section of your d&b report. Ucc’s can be a very positive thing on a new business’ credit report. Ucc filings show a secured transaction between either two

business or a business and individual. At least one business must be involved in the filing. The filings above deal with equipment leases. I means this company used some

sort of collateral in order to secure the lease. This is filed by the leassor in order to protect itself in the case of default. It serves as proof of the agreement in case a lawsuit is placed on the leasee. It’s a public proclamation of a claim towards the company that in any event it is sued, the secured collateral belongs to the leassor. For more information

Other than the previous factors that explain what shape the company is in, The special events section is usually where you would go to find out if you have been red flagged. When a business or the owner themselves are red flagged it would state why followed

It also shows any new announcements that you send to dnb by updating your file. Any changes or adjustments to your company’s structure.

These are all just breakdowns of the information we reviewed earlier. Since they were in the form of numbers and charts, this tries to explain things in a simpler fashion.

Again just redundant information but with one small twist. On the last line you can see where it says “present management control”. This point would be very important to those who want to build shelf corps. Once a company changes hands it is noted with

your business credit report. In some cases vendors place a heavier scrutiny on businesses with recent changes of ownership. The reason being is new management hasn’t been tested yet as opposed to the old management who has brought the company

to this point. It can also work in reverse where the business is struggling and new management is a welcomed change.

This section is about the owners and officers of the corporation. It includes the education level as well as any previously reported corporate experience the officers

may have. This can be a plus as well as a positive factor in deciding the fate of a business credit application. If the CEO is a business school graduate who has also worked or interned for a similar company that happened to be successful it would reflect

positively. The last line labeled “affiliate” is where the corporate linkage comes into play. This is where they have checked to see whether or not you are linked to any other

businesses. They also check to see if you have had any previously failed businesses. These facts will be listed here. Any previously failed businesses will cause you to be red

This page just states what type of business structure you have whether it be sole prop,llc,or corp. It also lists whether or no you have filed the proper registration required to be in compliance with said structure. It displays whether or not your company

is a non profit or for profit business as well as how many shares were issued. This page also states what state the company is registered in. All pretty much standard stuff.

This is a condensed overview of the business and business location. It explains what type of structure your business is located in. It even explains the traffic on the street. This is done through google maps along with the supporting third party information. This

is also why I explain to people that drop boxes are a no no. They actually do their due diligence when finding out exactly where your business is located. This page also explains how many branches the business has, what it does and how many employees it

Simple page listing the sic and naics codes. Something they could have put on any other page but, oh well.

This section is actually one of the most important. Its based on the financials you submit and whether or not the pass the muster with dnb. Your finances are always a part of any

These are three years worth of financial statements. This is where you will be putting the lessons on financial statements to good use. A new business could always submit

one previous year, and a current statement. Practice up on how to fudge your statements.

You can see that these financials were prepared by an accountant. This is always the best way to go if you can afford it.

Sales and net worth ratios. Hopefully after going through the actual report you have gained a better insight as to the inner workings of dnb. The goal was to help keep you

from making huge mistakes based on misconceptions on the internet. By viewing the report for yourself you can see personally what the credit bureau looks for and documents. You also know how their rating system works. It also helps me at the same

time by reducing emails of questions like.”do you think I could just use a po box as a business address?”. You can see for yourself that would not fly. Or, “if I have a paydex

score, what type of credit can I get?” At least with a full understanding you have a fighting chance to position your business favorably.

Before I get back into the simpler remaining steps, I wanted to go over the banking aspect of all of this. The best way to build balanced business credit is by attacking it from all sides. That means quality department store cards, cash equivalent credit cards, and unsecured business loans. Although it’s really tough these days to find a decent bank that will give secured loans to businesses, there are still some out there. Try credit unions and small local banks. If you have a bank inside your local walmart they are usually pretty good. You want to find out if they allow new businesses access to secured loans. The amount of time it takes to build the credit always depends on the person's budget(everything does). That decides

how long it will take. If I put $20k in a CD would it take long to get a $40k-$50k loan? no. But if i get one for $500-$1k, i would still be able to get the $40k-$50k loan eventually but it would just take longer. I would get a cd for Half of whatever budget you have. That way you have an invetment that shows and also a bank account with activity. The computer ultimately decides. The bank types it in and the computer tells them yes or no. The purpose of the cd isnt for borrowing ability.The cd is one part of the 2 part plan.The CD's are to estatblish a lending relationship from the bank. They will only loan you dollar for dollar. Its only after the second,3rd time that you go unsecured.Thats why that end usually takes 3

months.secured;loan,loan,loan, then big unsecured. The second part of the strategy cash equivalent credit cards. The way that is achieved is simply starting a "good reputation" campaign. Basically meaning that you do everything correctly and make sure all of you I's are dotted and T's croosed. The sloppy way that most new businesses come in makes them the most vulnerable. You come in as "seasoned", and all it takes is a little patients in learning and understanding the system. When it comes to banking, new business owners need to understand that there are several other(less popular) credit bureaus that just Deal on the banking undustry. You will want a half way decent file built up within those bureaus as

well(show bureaus)Also always remember that "cash equivalent" credit cards are also underwritten by banks.A few secured loans will satisfy them as well as a handfull of department store revolving accounts. As much as the internet like to promote propaganda, the reason why all credit

applications ask for you ssn now because of the "know your customer" statute within the patriot act. “The purpose of the USA PATRIOT Act is to deter and punish terrorist acts in the United States and around the world, to enhance law enforcement investigatory tools, and other purposes, some of which include:

· To strengthen U.S. measures to prevent, detect and prosecute international money laundering and financing of terrorism;

· To subject to special scrutiny foreign jurisdictions, foreign financial institutions, and classes of international transactions or types of accounts that are susceptible to criminal abuse;

· To require all appropriate elements of the financial services industry to report potential money laundering;

· To strengthen measures to prevent use of the U.S. financial system for personal gain by corrupt foreign officials and facilitate repatriation of stolen assets to the citizens of countries to whom such assets belong.

Below is a brief, non-comprehensive overview of the sections of the USA PATRIOT Act that may affect financial institutions.

Section 312: Special Due Diligence for Correspondent Accounts and Private Banking Accounts

This Section amends the Bank Secrecy Act by imposing due diligence & enhanced due diligence requirements on U.S. financial institutions that maintain correspondent accounts for foreign financial institutions or private banking accounts for non-U.S. persons.

Section 313: Prohibition on U.S. Correspondent Accounts with Foreign Shell Banks

To prevent foreign shell banks, which are generally not subject to regulation and considered to present an unreasonable risk of involvement in money laundering or terrorist financing, from having access to the U.S. financial system. Banks and broker-dealers are prohibited from having correspondent accounts for any foreign bank that does not have a physical presence in any country. Additionally, they are required to take reasonable steps to ensure their correspondent accounts are not used to indirectly provide correspondent services to such banks.

Section 314: Cooperative Efforts to Deter Money Laundering

Section 314 helps law enforcement identify, disrupt, and prevent terrorist acts and money laundering

activities by encouraging further cooperation among law enforcement, regulators, and financial institutions to share information regarding those suspected of being involved in terrorism or money laundering.

Section 319(b): Bank Records Related to Anti-Money Laundering Programs

To facilitate the government's ability to seize illicit funds of individuals and entities located in foreign countries by authorizing the Attorney General or the Secretary of the Treasury to issue a summons or subpoena to any foreign bank that maintains a correspondent account in the U.S. for records related to such accounts, including records outside the U.S. relating to the deposit of funds into the foreign bank. This Section also requires U.S. banks to maintain records identifying an agent for service of legal process for its correspondent accounts.

Section 325: Concentration Accounts at Financial Institutions

Allows the Secretary of the Treasury to issue regulations governing maintenance of concentration accounts by financial institutions to ensure such accounts are not used to obscure the identity of the customer who is the direct or beneficial owner of the funds being moved through the account.

Section 326: Verification of Identification

Prescribes regulations establishing minimum standards for financial institutions and their customers regarding the identity of a customer that shall apply with the opening of an account at the financial institution.

Section 351: Amendments Relating to Reporting of Suspicious Activities

This Section expands immunity from liability for reporting suspicious activities and expands prohibition against notification to individuals of SAR filing. No officer or employee of federal, state, local, tribal, or territorial governments within the U.S., having knowledge that such report was made may disclose to any person involved in the transaction that it has been reported except as necessary to fulfill the official duties of such officer or employee.

Section 352: Anti-Money Laundering Programs

Requires financial institutions to establish anti-money laundering programs, which at a minimum must include: the development of internal policies, procedures and controls; designation of a compliance officer; an ongoing employee training program; and an independent audit function to test programs.

Section 356: Reporting of Suspicious Activities by Securities Brokers and Dealers; Investment Company Study

Required the Secretary to consult with the Securities Exchange Commission and the Board of Governors of the Federal Reserve to publish proposed regulations in the Federal Register before January 1, 2002, requiring brokers and dealers registered with the Securities Exchange Commission to submit suspicious activity reports under the Bank Secrecy Act.

Section 359: Reporting of Suspicious Activities by Underground Banking Systems

This amends the BSA definition of money transmitter to ensure that informal/underground banking systems are defined as financial institutions and are thus subject to the BSA.”

This is also why dnb teamed up with transunion to have access to consumer information which allows them to be covered by the statute at minimum cost. Next, the iupdate was born to help funnel the personal information to transunion making it a mutually beneficial arrangement. Dnb gets access to personal reports, and transunion gets access to new personal and business credit profiles seeing that they have their own business credit division. Most people mistake this for a personal guarantee. Yes in many cases a soft pull is performed but it is only for the purpose of identification. The problem out there these days is that the scammers arent as educated as they should be. Our position is with enough knowledge there is no need to scam. If you actually know how to perform the services, and you charge a fair amount everyone will be happy.This will also help to serve as updated information for these blogs, and forums.Most of these are people that actually either run their own businesses, or have a full or part time job. The majority of these website bloggers dont do this professionally or they would see how people are misled and would start a service to help.They certainly would not continue to perpetuate the same myths. This is the problem with the internet credit companies or gurus.The ones that actually know what they are doing cant be found on a blog or forum. With everything we are outlining and detailing how would they even have time? Please dont be fooled by these people. Yes you can get funding, but you have to at least have a business first.Most of what we explain is the how's and why's. There isnt much

"spendage" in these techniques. The majority of these steps require only paperwork. Even when it comes to secured loans or CD's, the money is still there and has only been moved around.

As i dig deeper into the steps of this mission, i will concentrate primarily on experian trade lines. These trade lines will be more valuable then trades from dnb. This

technique actually covers both bureaus by default later on. Below is my list of starter net accounts. Starting out i would not need any other vendors besides these.

Step12) Apply for a fedex office account. (Experian)

(https://cidonline.kinkos.com/LandingPage.jsf;jsessionid=Kp92NJXVNvcR9kzzf2BGJ0z0 JqSY1vpYLysp2bnsyYN7D8npw9Ls!1109290149)

Step13) Uline order (experian/Dnb) Step14) reliable order (Experian/Dnb) Step15) grainger order (Dnb)

Step16) Gemplers (Experian) Step17) Quill (Experian) Step18)Tech depot (Experian)