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SHELF
CORPORATIONS AND SHELF LLC'S
Please Notice: Applying for corporate
credit is more involved at this time due higher standards in application for
credit. It's unlikely to obtain more than $100,000 in credit lines,
involving no collateral and with no guarantor. Using a shelf company may
be considered high risk in obtaining credit, regardless of the source.
Results vary.
BASIC OPERATIONS
BUILD CORPORATE CREDIT
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The preparation and maintenance of a corporate credit profile enables
the business owner to build corporate credit. Since businesses are ranked and rated in different ways by a variety
of organizations, it's helpful to know the basics and the differences
between them.
When registering for a
D&B Paydex score, make certain that the registration
information matches with the Secretary of State in the state in which
the company was filed. For example, if your company was filed in
Wyoming, and also filed in Florida, then make certain that both states
report the same information as what you place on the registration.
That applies to all information, such as your name as Director, all
officer positions, address of the company, etc.
Since there are many
companies filed with similar names, DNB doesn't like inconsistent or
confusing information. Your first step to make certain all data
reflecting your company is the same from the Secretary of State to the
local business license. You must receive mail at that address.
And the Director and officers must truly be involved in the day-to-day
operations of the business.
Dun and Bradstreet (DNB.com) grants a score to a business that
represents how prompt payments are made to creditors. Paydex
defines this for business in terms of a number, such as a credit score.
0 is the lowest score and 100 is the highest. By looking up the
Paydex score, a supplier or vendor consider in establishing a trade line
with any business. A score of 75 is a reasonably good score.
So, there you have it, Paydex is a credit score for business.
There are certain
attributes and issues involving a Paydex score that you should consider:
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Creditors run a
D&B Business Credit Report to check your Paydex score and history.
This is to confirm your business, you and what you're doing.
The D&B Business Credit Report is not used to approve the credit
line. It's used as means to confirm identity.
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Paydex is
calculated and monitored daily whereas your personal credit history
is tracked monthly. This means that if you pay a business line
of credit a day late, this will negatively impact your Paydex score.
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A Paydex score of
over 80 means that your business pays early. This is a plus,
but not necessary because no one requires a score of over 80.
Striving for a score of over 80 won't help your business.
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A Paydex score of
80 means that your business pays everything on time and you're not
one day late.
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75 is a good
Paydex score. Some lenders require at least a 70 Paydex score.
Anything less than 65 seldom results in any lines of credit.
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Below is a table
of payment behavior and a corresponding Paydex score:
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Score: 100 =
Pay every business credit bill as anticipated.
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Score:
90 = Pay every business credit bill at discount
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Score:
80 = Pay every business credit bill on time, "prompt"
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Score:
77 = Pay every business credit bill 5 days late.
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Score:
74 = Pay every business credit bill 9 days late.
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Score:
70 = Pay every business credit bill 15 days late.
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Any score
below 70 is a "no-no"
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As you see
from the above, choose your score by choosing how you pay every
business credit bill. If you pay everything promptly, then
you'll obtain a business credit score of 80. Don't be
late, even for one day. The first few accounts establish
this Paydex score. Other will follow as you maintain this
score of 80 by paying everything promptly.
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You need to
create a few Paydex scores. So, let's pick a few vendors known
for fast reporting. This means you need to buy something from
them over $50 to create the debt, and then pay it on time. And
don't be one day late! The following vendors report your
Paydex score immediately. When ordering, ask for a Net 30 account.
This means you must pay within 30 days. A couple of cash
orders may be necessary prior to them providing a Net 30 account.
If that's the case, then pay cash for the items, and then follow up
on more orders and then request a Net 30 account. This is what
you need to prepare:
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Ask for a Net
30 account (business account).
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The business
address and mailing address of your business. Yes, that
means that by the time you reached this point, your business
address and phone number for the business was established.
The billing address of the phone service matches up with the
business address. And the business address matches up with
the local business license, if any, and the information
reflected with the Secretary of State.
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Decide if the
shipping address is the same as the billing address of the
company.
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Your name as
contact for the company.
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The items
you're ordering.
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If they say
no, this means that a few cash orders are necessary before they
consider a Net 30 account (pay within 30 days).
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If approved,
ask for the account number. Keep a folder on your
relationship with each vendor in paper or on your computer.
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Provide
identification if they require it. This takes the form of
a driver's license for yourself. Forms of identification
for a business may be a business card, a local business license,
articles of incorporation, company check, or credit card with
the name of the business.
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Order at
least $50 from each supplier so the transaction is reportable to
Dun & Bradstreet.
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If the sales
person asks if you would like to pay by credit card, decline and
then ask for a NET 30 account. Since they ask you how this will
be paid, always ask for a NET 30 account. When they say
no, this means a few orders may be necessary (paying cash or
credit card) prior to establishing the NET 30 account.
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Once these
accounts are established, continue to order from them so you can
continue to build your Paydex score of 80 as you pay everything
on time. Remember, you can't be one day late!
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Here are the
providers:
D&B Rating, PAYDEX®, and Score Tables* - United States
D&B Rating Interpretation Table
D&B Score Interpretation Table
D&B PAYDEX Value Table
Financial Stress Score
Commercial Credit Score
Click here to view scores and ratings tables for businesses outside
the United States.
* NOTE: The scoring tables presented here refer to the version 6
(2002) Commercial Credit Score and Financial Stress Score. This
information on the scores is applicable to the Credit Scoring Report and
Financial Stress Scoring Report.
The US 5A to HH ratings reflect company size based on net worth or
equity as computed by D&B. These ratings are assigned to businesses that
have supplied D&B with current financial information.
The 1R and 2R ratings categories reflect company size based on the
total number of employees for the business. They are assigned to
business files that do not contain a current financial statement. For 5A
to HH Ratings, the Composite Credit Appraisal is a number between 1 and
4 that makes up the second half of the company's Rating and reflects an
overall assessment of creditworthiness. Our creditworthiness assessment
is based on both payments and financial stability. In 1R and 2R Ratings,
the 2, 3, or 4 creditworthiness indicator is based on analysis by D&B of
public filings, trade payments, business age and other important
factors. 2 is the highest Composite Credit Appraisal a company not
supplying D&B with current financial information can receive.
| Financial
Strength |
Composite Credit Appraisal |
|
Rating |
US$ |
High |
Good |
Fair |
Limited |
| 5A |
50,000,000 and over |
1 |
2 |
3 |
4 |
| 4A |
10,000,000 to 49,999,999 |
1 |
2 |
3 |
4 |
| 3A |
1,000,000 to 9,999,999 |
1 |
2 |
3 |
4 |
| 2A |
750,000 to 999,999 |
1 |
2 |
3 |
4 |
| 1A |
500,000 to 749,999 |
1 |
2 |
3 |
4 |
| BA |
300,000 to 499,999 |
1 |
2 |
3 |
4 |
| BB |
200,000 to 299,999 |
1 |
2 |
3 |
4 |
| CB |
125,000 to 199,999 |
1 |
2 |
3 |
4 |
| CC |
75,000 to 124,999 |
1 |
2 |
3 |
4 |
| DC |
50,000 to 74,999 |
1 |
2 |
3 |
4 |
| DD |
35,000 to 49,999 |
1 |
2 |
3 |
4 |
| EE |
20,000 to 34,999 |
1 |
2 |
3 |
4 |
| FF |
10,000 to 19,999 |
1 |
2 |
3 |
4 |
| GG |
5,000 to 9,999 |
1 |
2 |
3 |
4 |
| HH |
Up to 4,999 |
1 |
2 |
3 |
4 |
| |
| Rating
Classification |
Composite Credit Appraisal |
| Rating |
Number of Employees |
High |
Good |
Fair |
Limited |
| 1R |
10 employees and over |
|
2 |
3 |
4 |
| 2R |
1 to 9 |
|
2 |
3 |
4 |
| |
| Alternative
Ratings Used |
| INV |
Indicates that D&B is
currently conducting an investigation to gather information for
a new report. |
| DS |
Indicates that the information
available does not permit D&B to classify the company within our
rating key. |
| -- (blank) |
The blank symbol should not be
interpreted as indicating that credit should be denied. It
simply means that the information available to D&B does not
permit us to classify the company within our rating key and that
further enquiry should be made before reaching a decision. Some
reasons for using a "-" symbol include: deficit net worth,
bankruptcy proceedings, lack of insufficient payment
information, or incomplete history information. |
| ER |
Certain lines of business,
primarily banks, insurance companies and government entities do
not lend themselves to classification under the D&B Rating
system. Instead, we assign these types of businesses an Employee
range symbol based on the number of people employed. No other
significance should be attached to this symbol. ERN should not
be interpreted negatively. It simply means we do not have
information indicating how many people are employed at this
firm. |
| NQ |
Not Quoted. This is generally
assigned when a business has been confirmed as no longer active
at the location, or when D & B is unable to confirm active
operations. It may also appear on some branch reports, when the
branch is located in the same city as the headquarters. |
| |
| US Employee
Range Designation |
| ER1 |
1000 or more employees |
| ER2 |
500 to 999 employees |
| ER3 |
100 to 499 employees |
| ER4 |
50 to 99 employees |
| ER5 |
20 to 49 employees |
| ER6 |
10 to 19 employees |
| ER7 |
5 to 9 employees |
| ER8 |
1 to 4 employees |
| ERN |
Not Available |
| |
|
|
| D&B Score
Interpretation Table |
| D&B
PAYDEX Score |
Payment Habit |
| 100 |
Anticipate |
| 90 |
Discount |
| 80 |
Prompt |
| 70 |
15 days beyond terms |
| 60 |
22 days beyond terms |
| 50 |
30 days beyond terms |
| 40 |
60 days beyond terms |
| 30 |
90 days beyond terms |
| 20 |
120 days beyond terms |
| UN |
Unavailable |
| PAYDEX Value
Chart |
|
PAYDEX |
Average Days to Pay |
|
100 |
30 days sooner than terms |
|
99 |
29 days sooner than terms |
|
98 |
28 days sooner than terms |
|
97 |
27 days sooner than terms |
|
96 |
26 days sooner than terms |
|
95 |
25 days sooner than terms |
|
94 |
24 days sooner than terms |
|
93 |
23 days sooner than terms |
|
92 |
22 days sooner than terms |
|
91 |
21 days sooner than terms |
|
90 |
20 days sooner than terms |
|
89 |
18 days sooner than terms |
|
88 |
16 days sooner than terms |
|
87 |
14 days sooner than terms |
|
86 |
12 days sooner than terms |
|
85 |
10 days sooner than terms |
|
84 |
8 days sooner than terms |
|
83 |
6 days sooner than terms |
|
82 |
4 days sooner than terms |
|
81 |
2 days sooner than terms |
|
80 |
ON TERMS |
|
79 |
2 days beyond terms |
|
78 |
3 days beyond terms |
|
77 |
5 days beyond terms |
|
76 |
6 days beyond terms |
|
75 |
8 days beyond terms |
|
74 |
9 days beyond terms |
|
73 |
11 days beyond terms |
|
72 |
12 days beyond terms |
|
71 |
14 days beyond terms |
|
70 |
15 days beyond terms |
|
69 |
16 days beyond terms |
|
68 |
17 days beyond terms |
|
67 |
18 days beyond terms |
|
66 |
19 days beyond terms |
|
65 |
19 days beyond terms |
|
64 |
19 days beyond tenns |
|
63 |
20 days beyond terms |
|
62 |
21 days beyond terms |
|
61 |
22 days beyond terms |
|
60 |
22 days beyond terms |
|
59 |
23 days beyond terms |
|
58 |
24 days beyond terms |
|
57 |
25 days beyond terms |
|
56 |
26 days beyond terms |
|
55 |
26 days beyond terms |
|
54 |
27 days beyond terms |
|
53 |
28 days beyond terms |
|
52 |
29 days beyond terms |
|
51 |
29 days beyone terms |
|
50 |
30 days beyond terms |
|
49 |
33 days beyond terms |
|
48 |
36 days beyond terms |
|
47 |
39 days beyond terms |
|
46 |
42 days beyond terms |
|
45 |
45 days beyond terms |
|
44 |
48 days beyond terms |
|
43 |
51 days beyond terms |
|
42 |
54 days beyond terms |
|
41 |
57 days beyond terms |
|
40 |
60 days beyond terms |
|
39 |
63 days beyond terms |
|
38 |
66 days beyond terms |
|
37 |
69 days beyond terms |
|
36 |
72 days beyond terms |
|
35 |
75 days beyond terms |
|
34 |
78 days beyond terms |
|
33 |
81 days beyond terms |
|
32 |
84 days beyond terms |
|
31 |
87 days beyond terms |
|
30 |
90 days beyond terms |
|
29 |
93 days beyond terms |
|
28 |
96 days beyond terms |
|
27 |
99 days beyond terms |
|
26 |
102 days beyond terms |
|
25 |
105 days beyond terms |
|
24 |
108 days beyond terms |
|
23 |
111 days beyond terms |
|
22 |
114 days beyond terms |
|
21 |
117 days beyond terms |
|
20 |
120 days beyond terms |
|
1 to 19 |
Over 120 days beyond terms |
The Financial Stress model predicts the likelihood of a firm ceasing
business without paying all creditors in full, or reorganizing or
obtaining relief from creditors under state/federal law over the next
twelve months. Scores were calculated using a statistically valid model
derived from D&B's extensive data files.
| Financial
Stress Score |
|
Financial Stress Class |
Financial Stress Score Range |
Percentile Score Range |
Incidence of Financial Stress |
| 1 |
1377-1875 |
21-100 |
0.49% |
| 2 |
1353-1376 |
11-20 |
1.37% |
| 3 |
1303-1352 |
5-10 |
3.73% |
| 4 |
1225-1302 |
2-4 |
8.30% |
| 5 |
1001-1224 |
1 |
35.80% |
"0" generally denotes indication of open bankruptcy or out of business
at the location. "0"may also denote higher risk situations.
The Incidence of Financial Stress -National Average for all firms in
the United States in D&B's file is 1.4%.
The Incidence of Financial Stress shows the percentage of firms in a
given Class that discontinued operations over the past year with loss to
creditors. The Incidence of Financial Stress-National Average represents
the national failure rate and is provided for comparative purposes. All
Financial Stress Class, Percentile, Score and Incidence statistics are
based on 2001.
The US Commercial Credit Score predicts the likelihood of a firm paying
in a delinquent manner (90 + days past terms) during the next 12 months,
based on the information in D&B's file. The score was calculated using
statistically valid models derived from D&B's extensive data files.
| Commercial
Credit Score |
|
Commercial Credit Score |
Credit Score Percentile |
Credit Score Class |
Incidence of Delinquency |
| 536-670 |
91-100 |
1 |
2.5%
|
| 493-535 |
71-90 |
2 |
4.8%
|
| 423-492 |
31-70 |
3 |
12.9%
|
| 376-422 |
11-30 |
4 |
24.2%
|
| 101-375 |
1-10 |
5 |
58.8%
|
"0" generally denotes indication of open bankruptcy or out of business
at the location. "0"may also denote higher risk situations.
| Incidence
of Delinquent Payment Assignment Table |
|
Minimum Score |
Maximum Score |
Incidence of Delinquent Payment |
| 96 |
100 |
2.1% |
| 91 |
95 |
2.9% |
| 86 |
90 |
3.6% |
| 81 |
85 |
4.4% |
| 76 |
80 |
5.2% |
| 71 |
75 |
6.1% |
| 66 |
70 |
7.3% |
| 61 |
65 |
8.7% |
| 56 |
60 |
10.5% |
| 51 |
55 |
12.2% |
| 46 |
50 |
13.9% |
| 41 |
45 |
15.5% |
| 36 |
40 |
17.2% |
| 31 |
35 |
18.4% |
| 26 |
30 |
20.2% |
| 21 |
25 |
22.5% |
| 16 |
20 |
24.6% |
| 11 |
15 |
29.6% |
| 6 |
10 |
44.9% |
| 1 |
5 |
72.7% |
The Incidence of Delinquent Payment for all firms in the United States
in D&B's file is 17.3%.
The Incidence of Delinquent Payment shows the percentage of firms in
a given percentile range that paid in a delinquent manner (90 + days
past terms) over the past year. The Incidence of Delinquent Payment
among all firms in D&B's files represents the national delinquency rate
and is provided for comparative purposes. All Commercial Credit Class,
Percentile, Score and Incidence statistics are based on 2001.
ASSETPROFILE.COM
SHELF COMPANIES . BUILD CORPORATE
CREDIT . TRANSPARENCY
109 EAST 17TH
STREET, SUITE 25, CHEYENNE WY 82001
Office 307.237.2580, Fax 702.920.8824,
EMAIL
All Rights Reserved
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