I guess it's just that time of year when deceptive advertising flows a little thicker, but I have been inundated with calls from subscribers being approached with "this program" or "that credit scheme".
In most cases, someone is offering some magical product or service touted as being the "be-all-to-end-all" that will solve all your corporate credit problems.
Whether they're hawking shelf corporations, credit privacy numbers, or credit partnerships, the vultures are sweeping in to feed off desperate business owners. So I thought I would take this time to make sure all my subscribers are aware of these three current half-baked schemes so you have your guard up in advance and save yourself some heartbreak (and some dough)...
SHELF CORPORATIONS (AGED BUSINESS ENTITIES) First of all, shelf corporations are just that... non-existent corporations that have been created and set on a shelf to age. They are then sold to unsuspecting victims who are told in the most flagrant of terms that they will be able to achieve credit on this inactive and unproductive company. Some even promise to get you up to $500,000 in business credit on this fake business. Here's what they don't tell you...
They don't tell you that D&B already has archived information on all corporations, so they already know who owned it before you did and when you took over ownership.
They don't tell you that as soon as you try to create a new D-U-N-S® number or update the existing credit profile with your own information, D&B is going to move the incorporation date forward to the most recent date they believe you took ownership.
They don't tell you that most of the websites that sell shelf corporations (as well as their incorporating agency) have already been "black-balled" by D&B and identified as promoting services that could be used to perpetuate fraud.
They don't tell you that all those promises they're making go down the drain (and so does any credit you achieve) as soon as D&B puts two-and-two together.
They don't tell you that you and that corporation (as well as any of your legitimate businesses) will be assigned a higher risk status... and not just now, but any businesses you attempt to generate credit for in the future.
They don't tell you that they have lived up to their end of the bargain if they get you as little as $1 in credit, yet you will still be out hundreds or even thousands of dollars.
They don't tell you that, in most cases, they can legally sell that shelf corporation, but any credit you attempt to achieve using that non-existent corporation may be deemed as bank fraud.