Need some help on obtaining a business card/establishing my business.

grieve

grieve

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Aug 23, 2011
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I'm going to go ahead and ignore/avoid posting in that other thread on the front page created by that 2-post account. Sorry if this is considered redundant.

I've been having this dilemma the past 2 weeks now ever since I've started making "decent" amounts of money. My capital is really limiting how much I can spend daily, and in turn its limiting my income. I was a complete dumbass and didn't start building credit until 5 months or so when I got my own credit card from Capital One (dumbass move #2... Capital One is the motherfucking worst.)

My question to people who are better versed in attaining business cards/establishing a funding source... what would you do in my situation? I also haven't set up my business yet, as I'm deciding between LLC/S-corp.

I'm definitely interested in cards like the, say, AMEX Plum, and I meet all the requirements for it outside of the credit approval (I'm assuming I wouldn't pass this, because even though I've paid all 5 months of my credit card in full and on time... it takes more than this to build high credit, right?)

My question to you WF'ers is... what would you do?
 


If you can get an Amex then you can pay it off everyday. When you hit send payment it issues you that credit back on to your card. There maybe some others that do this as well but I know amex has it 100%. So with cash flow if you have a 5k card and your campaign is running 2k a day just pay it off every other day or so and you should be good for credit. Also, if you don't have the cash and that's keeping you from growing your business, work with your network. We pay some affiliates as fast as daily, to help them build cash flow and grow their businesses, until they have enough cash to be able to float more days. Talk with whoever your network is and see if they'll move you to a few times a week or dailies and these 2 should fix all your cash flow issues.
 
smaxor said:
If you can get an Amex then you can pay it off everyday. When you hit send payment it issues you that credit back on to your card. There maybe some others that do this as well but I know amex has it 100%. So with cash flow if you have a 5k card and your campaign is running 2k a day just pay it off every other day or so and you should be good for credit. Also, if you don't have the cash and that's keeping you from growing your business, work with your network. We pay some affiliates as fast as daily, to help them build cash flow and grow their businesses, until they have enough cash to be able to float more days. Talk with whoever your network is and see if they'll move you to a few times a week or dailies and these 2 should fix all your cash flow issues.
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I'll be honest... I've seen your posts regarding finances on here and STM, and I was hoping you'd respond! Thanks. :)

I'm actually a part of A4D and a few other networks (that are paying me weekly at the moment) and its definitely helping, but Capital One sucks in that it takes 7-8 DAYS for my credit to be replenished. Ideally, yeah, the system that AMEX has would be fucking awesome. My main problem right now is, with weekly payouts, I don't have enough capital (yet) to max out my daily limit every single day, so I basically have like 6-7 thousand dollars (and growing) at the moment that I'm just spreading out through the week.

My post was more so directed on the issue of "With not enough credit history, how on earth can I get a hold of a business card?" Do you know if credit card companies will make exceptions, if I surpass all of their other requirements? I wanted a cashback card, but since your post a few days ago on STM regarding miles vs. cashback, I've been debating an airline/hotel points card instead. Anyway, with the money I'm spending every day (and COULD be spending every day) I know I'm basically leaving a lot of money on the table.

Thoughts?
 
grieve said:
I'll be honest... I've seen your posts regarding finances on here and STM, and I was hoping you'd respond! Thanks. :)

I'm actually a part of A4D and a few other networks (that are paying me weekly at the moment) and its definitely helping, but Capital One sucks in that it takes 7-8 DAYS for my credit to be replenished. Ideally, yeah, the system that AMEX has would be fucking awesome. My main problem right now is, with weekly payouts, I don't have enough capital (yet) to max out my daily limit every single day, so I basically have like 6-7 thousand dollars (and growing) at the moment that I'm just spreading out through the week.

My post was more so directed on the issue of "With not enough credit history, how on earth can I get a hold of a business card?" Do you know if credit card companies will make exceptions, if I surpass all of their other requirements? I wanted a cashback card, but since your post a few days ago on STM regarding miles vs. cashback, I've been debating an airline/hotel points card instead. Anyway, with the money I'm spending every day (and COULD be spending every day) I know I'm basically leaving a lot of money on the table.

Thoughts?
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Ask capital one to raise your credit limit. They raised my limit from $5,000 - $10,000 after I had the card for only three months. Getting another credit card will be difficult, especially because of the credit legislation passed regarding those with new credit. Also for the first few months, you will notice your credit be replaced after only a day or so - instead of a week.
 
Actually its a good thing that you have a Capital One card if you advertise on POF or pay international contractors through Paypal because of the 0% foreign transaction fees.
Don't apply to AMEX until you have at least 1 year of business credit history and your personal credit is in order. AMEX doesn't report your credit limits to the credit bureaus, so keep that in mind (don't put all your eggs in the AMEX basket).
Call Capital One and get a credit limit increase for sure.
 
Firelead said:
Actually its a good thing that you have a Capital One card if you advertise on POF or pay international contractors through Paypal because of the 0% foreign transaction fees.
Don't apply to AMEX until you have at least 1 year of business credit history and your personal credit is in order. AMEX doesn't report your credit limits to the credit bureaus, so keep that in mind (don't put all your eggs in the AMEX basket).
Call Capital One and get a credit limit increase for sure.
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Interesting info... thanks! My credit limit right now at Capital One for my personal credit card is 500 dollars... -_-

I spend more than that in a day, and I received a letter a few months ago stating "Make 6 months worth of payments and we'll increase your credit limit to 750!!"

So, two issues remain:

What are the odds that they'll increase my credit limit to something that will do me some good? How do I go about proving to them my need for a bigger credit limit?

Also the issue of how damn long it takes for my credit to be reinstated. To add on top of that, isn't it "not helpful" for your credit rating to just continually pay off my card every day? Isn't it "good" to hold a balance?
 
with your limit like that, the best advice I could give you is get a debit card, no joke.

when i started out, I had some low credit limits because I just didnt have any credit. I was stuck using the only thing I could and that was a debit card from Chase Bank.

i went in and asked for my Point Of Sale daily limit to be raised and got it raised from the default ( which I think is 500 ) to 5k, and then later raised to 30k. I could spend 30k a day thru my debit with no issues as long as the money was in the bank and I had networks paying me daily and weekly via wires and ACH.
It got to the point where 30k wasn't enough so i simply opened more bank accounts to get more cards and spread the spend on all the cards.

There are not too many drawbacks as long as you work with reputable networks using a debit card as a credit purchase online, however once you get enough money in the account you need to switch over to a credit card ( even a prepaid one if you have to get one ) ASAP to build up the credit in your business.

Chances are, if you use a debit card with your local bank and then have all that money in your account, they will give you a credit card backed up with all that money.

ProTip: Dont use a credit union for this.
 
6 Months of payments is ridiculous.
You need to build your credit in other ways, not through Capital One it sounds like. Know everything that is on your credit report and clean it up and make sure it stays perfect. Know your credit scores. Don't pull your credit report anytime near applying for new credit (wait at least 3 months).
#1. Setup a real business structure and get a Federal Tax ID - register with the IRS and state (research what will fit you best LLC or Inc.) and do it all properly. Treat this like a real business because it is. Track everything with Quickbooks or Freshbooks online.
#2. Go down to your local bank and setup a checking account with your new business information, at least a few months of profit/loss sheets from Quickbooks or Freshbooks and as much money as you have. Ask about getting a SBA backed credit card for new businesses. Use the business credit card for a year and pay it off as fast as possible and never keep a balance. After the year is up, your credit score should be much higher, and if you are over 720 and your business is over 1 year old, apply for an AMEX Starwood card. You will probably be able to get at least $2000 in credit limit depending on your credit history and how much you have in the bank, but I would ask for $5000.

It's not good to hold a balance in my opinion. The credit card companies care about your ability to pay your bills more than they care about interest. Your credit score increases when you pay your bills on time every time. Don't ever miss a payment under any circumstances.
 
jeffrey said:
Ask capital one to raise your credit limit. They raised my limit from $5,000 - $10,000 after I had the card for only three months. Getting another credit card will be difficult, especially because of the credit legislation passed regarding those with new credit. Also for the first few months, you will notice your credit be replaced after only a day or so - instead of a week.
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Yeah - one thing is just be aware of your potential risk, for instance there have been a number of threads recently of even well known networks (copeac), that have had their own legal and credit issues that have left advertisers on the hook with $1,000-$XXX,XXX in outstanding balances owed to them. One of the biggest things you will want to learn is how to properly manage risk in your business. Try to get networks on dailies or at a minimum weekly payment if you’re doing volume. The last things you want to have, is a $10k credit card bill for traffic and find you aren't able to pay it, because your network hasn't paid you.
Also, while not always the case, depending on how long your business has been around, you may have to sign a personal guarantee or use your personal credit history to qualify. Again these things all have legal as well as financial implications. Just trying to forewarn you, chances are you will have to learn the hard way at some point... As most networks and pubs do, but it's always best to be prepared and know what risk you are open to.
 
eliquid said:
with your limit like that, the best advice I could give you is get a debit card, no joke.

when i started out, I had some low credit limits because I just didnt have any credit. I was stuck using the only thing I could and that was a debit card from Chase Bank.

i went in and asked for my Point Of Sale daily limit to be raised and got it raised from the default ( which I think is 500 ) to 5k, and then later raised to 30k. I could spend 30k a day thru my debit with no issues as long as the money was in the bank and I had networks paying me daily and weekly via wires and ACH.
It got to the point where 30k wasn't enough so i simply opened more bank accounts to get more cards and spread the spend on all the cards.

There are not too many drawbacks as long as you work with reputable networks using a debit card as a credit purchase online, however once you get enough money in the account you need to switch over to a credit card ( even a prepaid one if you have to get one ) ASAP to build up the credit in your business.

Chances are, if you use a debit card with your local bank and then have all that money in your account, they will give you a credit card backed up with all that money.

ProTip: Dont use a credit union for this.
Click to expand...

Yup, with my credit card as bad as it is, I have been using my debit card. I don't know what the limit is, but I've done a few 1500 charges in a single day and they've all cleared no problem.

Also, someone I know suggested discussing with the bank some sort of term-deposit where I can use 2-3k as collateral and that they'd be more willing to work with me there and get me a credit card. How possible is this?

Firelead said:
6 Months of payments is ridiculous.
You need to build your credit in other ways, not through Capital One it sounds like. Know everything that is on your credit report and clean it up and make sure it stays perfect. Know your credit scores. Don't pull your credit report anytime near applying for new credit (wait at least 3 months).
#1. Setup a real business structure and get a Federal Tax ID - register with the IRS and state (research what will fit you best LLC or Inc.) and do it all properly. Treat this like a real business because it is. Track everything with Quickbooks or Freshbooks online.
#2. Go down to your local bank and setup a checking account with your new business information, at least a few months of profit/loss sheets from Quickbooks or Freshbooks and as much money as you have. Ask about getting a SBA backed credit card for new businesses. Use the business credit card for a year and pay it off as fast as possible and never keep a balance. After the year is up, your credit score should be much higher, and if you are over 720 and your business is over 1 year old, apply for an AMEX Starwood card. You will probably be able to get at least $2000 in credit limit depending on your credit history and how much you have in the bank, but I would ask for $5000.

It's not good to hold a balance in my opinion. The credit card companies care about your ability to pay your bills more than they care about interest. Your credit score increases when you pay your bills on time every time. Don't ever miss a payment under any circumstances.
Click to expand...

...Whew. That is a lot to take in. I guess at this point I'm just a bit confused at what point to consider this a fully functioning business. Right now I'll have streaks of making 500/day, and then days like the last few days where I'm making 15-100 trying to find a functional offer. I'm also the type of person who wants to know EVERYTHING about something before I do it... and I'm trying to find a good, clear resource on the different types of businesses I can register for so I can know my shit through and through.


Thank you both so fucking much so far.
 
There is really no good reason why you should be conducting business like you are without a real business. You are giving out your SSN to networks right now, and that's just dangerous.
I'll try and simplify it for you so you can read all about it and know it "through and through" like you said.
An LLC taxed as a sole proprietor is a good option for an affiliate, but you can do what you want. You don't need to hire a service like legalzoom or whatever to set one up. Read about it here: Limited Liability Company (LLC)
and here: Single Member Limited Liability Companies
then you signup for your EIN here: Apply for an Employer Identification Number (EIN) Online
Once you have that, you go to your state's website and register your business there. It will cost anywhere from $75-$300 depending on your state.

Save your earnings for quarterly federal/state/local taxes and pay them ON TIME. Federal taxes are paid quarterly electronically through EFTPS: https://www.eftps.gov/eftps/
Your state taxes can be paid on your state's website, and local varies by where you live as well.

At the very least you'll have a viable business structure that you can age if you don't use it. It really is not too hard, it's just confusing for newbies.
 
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