This document provides steps for establishing business credit. It outlines 5 steps: 1) Open a corporation, 2) Prepare a proper business image with letterhead and logo, 3) Apply for credit with office supply stores and telecom companies, 4) Pay all bills immediately before the due date to achieve excellent payment scores, and 5) Establish a Dunn's number by registering the business and using the number plus alternative trade references to build credit. It includes a chart showing payment scores and how many days past due each corresponds to.

1. Establishing Business Credit
by
Wanda Strickfaden, president
Improve Credit, LLC
www.ICDebt.com

2. Paydex Value Chart
100
90
80
Excellent
Good
Average
.....
..... • ......
70 Fair 15 days beyond terms
60 Poor 22 days beyond terms
50 Poor 30 days beyond terms
40 Poor 60 days beyond terms
30 Poor 90 days beyond terms
20 Poor 120 days beyond terms
.............
10 Poor 150 days beyond terms
0 Poor 180 days beyond terms
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3. Payment Pattern
p yyour bills 21 days beyond your due date
El If your payments with your vendors, suppliers, creditors, or
lenders are due on the 1st pay your bills 21-30 days prior to
your due date in order to establish excellent paydex scores.
If your payments are received on the due date your paydex
scores will remain average.
13 If your payments are received after the due date your
paydex scores will decrease and become poor.
3

4. Establishing Business Credit
Step 1
Open a corporation
o Start a corporation or buy off an existing shelf
corporation.
si Register your business as a S, C, or LLC; which is ideal
when establishing business credit.
4

5. Establishing Business Credit
.dosi
Step 2
Prepare a proper business image
Have a letterhead and logo.
a Make sure that your business phone number is a land
line and registered with 411.
5

6. •
.
Step 3
Establishing Business Credit
Apply for credit with:
Ti Staples
• RapidForms
• ATT
Et, Dell
• Office Supply Store, etc.

7. Establishing Business Credit
Step 4
Pay your bills immediately
® Once these vendors ship your items pay them
immediately, before the due date.
▪ You want to remain below 21 days — 30 days of your
due date in order to establish excellent paydex scores.
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8. Establishing Business
Step 5
Establish a Dunn's number
Ei Make sure your business is registered with the
Secretary of State.
© Once you are registered your business will have a
Dunn's number.
© If you do not have trade references you can establish
credit with alternative accounts.

9. 4;
sat
Establishing Business Credit
Alternative Trade References
Land Line
Cell Phone
Business Insurance
Web development
Software development
Payroll
Direct Mail
Marketing
Lease
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