Ok,
So I told you guys that I acquired a 40 year old corp with an old file but the corp did not have a rating. I sent the financials for the CORP to DnB and I finally got a rating. For those of you who do not know what a rating is, its not a Paydex score. You get a rating based on the the company’s income and number of employees. This should change the game a whole lot now. I have a guy with corps with financials. This is where all of us need to be now that the credit crunch is tightening up. We need to stop being cheap and cutting corners with building busines credit and get it right. We need to stop replacing bad credit with business credit and fix out personal credit and instead of getting a RCF I really think we should spend the extra $20 a month for the actual phone line.
- mike
So what rating did you get?
Where are you able to get a land line for $20 a month?
how do we fix our personal credit?
Congrats! Were you able to get D&B to show 40 years of age or did the company already have a file in place when you bought the shelf?
Do you have the person number or contact for the corporation
Is a price of $1000/year fair for a corporation?
I recommend a book from Nolo press “Buying a Business”. I have come up with the following checklist:
UCC filings,
IRS filings in the county where the corp is registered,
Secretary of state standing and filings,
State annual reports,
IRS tax returns (if available from owner or I thought an IRS disclosure form that allows me to pull copies of the annual reports directly from IRS),
judgment search,
bankruptcy search,
signed statement by owner he/she will be responsible for liabilities until date of sale,
agreement for purchase and sale.
Does anyone have anything we could add to this list?
Actually the D&B rating is based either off of net worth, or employee size if there are no financials submitted. Also the last number in the rating is a composite credit appraisal based of off different data elements about your company. Years in biz, suits, leins, judgements, ucc filings, promptness of payments, etc.
No financials
2-4 composite credit appraisal
2=good, 4=limited
Financials submitted
1-4
1=high, 4=limited
Rating example
1A2
1A=net worth from $500,000-$749,999
2=good composite credit appraisal