Posted on December 5, 2018
Whether you are starting a new company or running an existing company you need to build separate business credit so you can get small loans when you need it. Having separate business credit profile helps to limit your personal liability and protect your personal assets.
Most people use their available limits on their cards and savings in their bank to start-up their company. When they get loans on their personal name, not only they have to give personal guarantee for the loans, they also use up all available personal limits on their cards and lower their personal score in the process of starting their new company.
You may be running a company for years but your company may not have build paydex score at all, and every time you apply for loan you have to give personal guarantee. Now days most lenders are looking for corporate credit score before they approve any loan to the company.
Most business reporting companies have setup a scoring system which is used by banks and many lending institutions to approve or decline a business loan. Agencies like, Experian, Equifax, and Dun and Bradstreet have developed a scoring system which are used by banks, lenders, consumers, and other businesses to determine the rating of a particular company.
How to build corporate credit is a step by step process. You need to have the right corporate structure. Sole proprietor will not be able to build business credit. The company owner needs to understand the difference between trade and business credit. How and where to get trade lines is very important element in building corporate credit. Once you have established strong corporate credit rating for your company, you increase your chances of obtaining loans.
If you have bad Fico score, you can learn how to build corporate credit without using your personal credit. Personal and business credit are created in totally different database of the bureaus, they are not linked to each other. To get the best result you need to have strong corporate and personal credit. If you personal Fico score is poor you can start repairing it while building business credit score.
As a smart company owner you need to establish separate corporate credit. Instead of applying for loans in your personal name, start applying loan under your corporate name.
Posted on December 5, 2018
Businesses, whether they are large or small, all have to promote themselves in some way in order to stay in business. One of the easiest advertising tools available to businesses is small gifts they can give to employees and customers or clients that carry the business name and phone number, or just the business logo. Everyone loves getting gifts too, no matter how small they are, so relationships between business owners and their employees and clientele are enhanced with the giving of such gifts.
Some gifts are geared to appeal specifically to different types of businesses, while others would be appropriate for anyone. Some very generic gifts that just about anyone would appreciate getting include things like pocket calculators and pens, note pads, coffee mugs, travel cups, or photo frames. Just about anything for the desk, the office, or the car would be satisfactory gifts for more people. Another great thing about these types of business gifts is that they don’t cost much, especially if purchased in bulk, and are often only a few dollars.
For larger businesses, they know it’s smart to budget for any business corporate gift they might need. Gifts are smart business tools and a lot of time and planning goes into choosing the right types of gifts for potential customers and clients as well as bonus incentives for valued employees. Often these types of gifts cost a little more, but companies know they are well worth their price for the benefits that come from them. Employees who are rewarded, even in small ways, are more likely to be loyal workers and more productive. Customers who know their business is appreciated, even through just a small token gift, are more likely to stay loyal customers. People who have not yet chosen where to put their loyalties will be drawn to what they see around them, which often times can be as simple as just seeing a name printed on the pen they just borrowed.
There are so many options when it comes to gift purchasing that you can really personalize almost anything to suite your particular needs. You can have your company logo put on anything these day and some gifts need to include that advertisement. For those who want to honor someone in a more personal way, perhaps a simple box of candy or bottle of wine would be a more appropriate gift for them. No matter what you choose to give, smart business owners know, it’s the giver of the gift who wins in the end.
Posted on December 5, 2018
The corporation is the most used form of business entity in the United States. While many people form the entity, most don’t understand the corporate minute requirements.
A corporation is a stand alone business entity. It is favored as a business form by many people because it provides iron clad protection for business debts. These debts can include judgments from lawsuits, debts owed to vendors and so on. The basis for this protection is the fact that corporations are considered to be an individual separate from the shareholders. In practical terms, this means investing in the corporation is like giving your friend Bob money for a business idea. Unlike Bob, you can be intimately involved in the running of a corporation.
The legal fiction of individuality of the corporate entity is not absolute. Much like a body, you have to maintain the health of the corporation to receive the protection. In what is probably a terrible analogy, the shareholders and board of directors much hold meetings much like you or I would go in for regular health checkups. If these meetings are not held, the idea that the corporation is a separate individual can be challenged. This process is known as piercing the corporate veil of protection.
Assuming the shareholders and board of directors take the necessary steps to keep the corporate body healthy, there has to be some proof that the steps were taken. Welcome to corporate minutes. Corporate minutes are simply the record of when meetings occurred, who attended, what was discussed and what decisions were made. The minutes of the meeting are kept by the Secretary of the corporation. He or she then presents them to the Board of Directors for approval at the next meeting. Assuming the board approves the minutes as being accurate, they are then filed in the corporate book where they remain until the sun runs out of fuel.
So, what goes into the actual corporate minutes? Technically, the Secretary should follow the requirements listed in the bylaws of the corporation. With small business corporations, however, the Secretary can usually get by with simply recording a summary of the subjects discussed at board meetings, who was there and the decisions made with the vote count for each decision being noted. With larger businesses, the minutes should be handled in a manner that strictly follows the dictates in the bylaws.
Corporate minutes may sound a bit confusing when you first hear about them. They really are not as this article indicates.