AboutMichelle Dunn Expertise As one of the Top 5 Women in Collections, one of the Top 50 Collection Professionals of 2007, and winner of the 2007 Business Excellence award, I can answer any questions about debt, debt collection, improving business credit, creating a credit policy, enforcing a credit policy and collecting on past due accounts. I can also answer questions in regards to starting a debt collection agency since I have been a bill collector for over 21 years, started and ran my own collection agency for 8 years, and maintain my 11 year old American Credit & Collections Association for members of the credit & debt collection industry. I am also the author of the popular and award winning book "Starting a Collection Agency, how to make money collecting money" now on it's 3rd edition. This book has won a the Writers Digest self published award as well as the 2007 New York Book Festival Award.
I am a repeat contributor to the Wall Street Journal, and have been featured on NPR as well as many other national radio and television programs. I have also been featured in national publications such as the Wall Street Journal, Forbes, Smart Money, MSNBC and much more. I have 12 published books to my name and am an accomplished speaker and consultant. I currently write 9 columns for newspapers, magazines and online portals worldwide.
Experience I have over 21 years experience in debt collection, I started and ran my own collection agency for 8 years and I am the Executive Director of my American Credit & Collections Association that I founded in 1998. www.credit-and-collections.com
Organizations The American Credit & Collections Association LLC, I was also a member of the American Collectors Association and Plymouth Chamber of Commerce for 9 years. I am a member of many writing groups as well as my local Women Inspiring Women chapter. I am a member of Know More Media as an expert for their blog on business credit.
Publications Business NH Magazine, Smart Money Magazine, MSNBC, CNN, Forbes.com, The Wall Street Journal, Home Business Magazine, Entrepreneur Magazine and website, many books, newspapers and television programs as well.
Education/Credentials I have written 12 books in my collecting money series and one for Entrepreneur Press called the Ultimate Credit and Collections Handbook.
Awards and Honors My book Starting a Collection Agency, how to make money collecting money won an award from Writers Digest and the 2007 New York Book Festival in the "How to" category. I have won 2 awards from Dun & Bradstreet and Governor Jean Shaheen. I was nominated as one of the Top 5 Women in Collections in 2007 as well as having been selected as one of Collection Advisor's Top 50 Collection Professionals for 2007.
Question I am about to copy and paste what someone told me are the proper steps to developing business credit. I was also told by someone else that it's good to set up a business phone that's listed with 411 and a UPS Store mailing address to make my business look more official. Would you agree or disagree that those two things will help me get approved in the eyes of lenders? I'm a real estate investor trying to build my credit profile to purchase real estate in the name of my business in under a year.
Below is the information I was sent regarding the proper steps to developing business credit:
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1. Register with the State of Michigan (LLC, PC, Inc., etc.)
2. A few weeks later, you'll receive a bunch of credit card offers in the
mail for your business
3. Fill them out and hopefully you get one or two
4. Use them - pay them off every month or carry a small balance (never
more
than 1/2 the limit)
5. After 3 months go to Dun & Bradstreet's Website - do a D&B search for
your company name. Your newly registered company should be recorded by
then
- but only with a minimum of information. D&B has an online form that
lets
you identify yourself as the business owner and then fill out many more
details on your company. DO NOT fall for their 'pay for business credit
plan'. No need. They sell all their information - whether it is there
fancy package or not.
6. Once this is done, MANY more CC's will come in.
7. Fill more out and send in
8. Hopefully you get more - use them - pay them off or carry small
balance
9. After being in business a minimum of 2 years, go to National City and
ask for their Unsecured Small Business Line of Credit
MINIMUM requirements are 2-years in business for any unsecured LOC....it
might be longer now as all credit rules have tightened up.
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I know this is alot of info in this question, but if you'd be so kind as to answer my questions, it would be GREATLY appreciated. Thanks
Answer You will find ALOT of information about how to establish business credit, there are many pros and cons. Check out my blog at www.BizCreditPolicy.com and other association websites for the best ways.
Most business phone numbers will be included in directory assistance, but you can just ask them when you are setting up that phone line to make sure.
If you are starting your business from home it is a good idea to get a PO box, either at the UPS store or a post office.
I do not agree that those two things will help you get approved for any loans, but they will help you to be found easily by being included in directory assistance and the PO box will give you a more professional appearance to potential customers or clients as well as give you some privacy.
To check your business credit be sure to get copies of your credit report from all three credit bureaus.
