Today, there are a lot of people who will try to scam you in why way or another. Whether they are trying to sell you a diet pill that will supposedly help you lose 10 pounds in a week or a new drug to extend your penis, they will try just about anything. The situation here is not much better if you are looking to build a business credit and you will need to really be careful about it. Maybe even much more than in the two examples that I have mentioned above. So, how can you protect yourself from such scams? Well, there are a couple of ways and I’ll show you a few of the best ones.
1. Guaranteed credit card
If a company offers something like a program where you can receive up to a 100, 000$ in cash and for just 1,000$, you should know right away that this is a scam. It is a lot better to go with this money straight to the bank and get a secured business card.
2. Guarantee for obtaining a business credit
If a company is claiming that it can guarantee that thanks to their credit, you will actually get a certain amount of money, you should know that they are actually trying to scam you. In fact, they have really protected themselves well by saying something like “guaranteed to get up to 50,000$ with our credit”. The words “up to” are crucial here as no one can blame them if you don’t reach the 50,000$ mark.
3. Aging your own business
Many people believe that you can obtain a really large amount of credit and quickly as well, by simply buying a self-corporation. While it is true that this will work in some cases, but there are a couple of things that you need to check first. The very first thing that you need to look into is the credit history that is attached to the company that you are buying. Also, make sure that their tax ID number is as old as the company itself, because this can be a big problem later on. Also, make sure that they have all the documentation and that nothing is missing. The most important thing, of course, is to make sure that you are actually buying a real company and not just a stack of papers.
So, to conclude, corporate credit industry can be tricky to keep a track of and the fact that it is not regulated by the same government rules as personal credit. Because of this, you need to really do your homework. Don’t be afraid to ask about whatever you are not sure about as this will make building your credit a lot easier and will also protect yourself from any scams and you are definitely bound to get “meet” some of these companies, especially over the Internet, so have your eyes opened at all times for these.