Building Business Credit: Got any tips?

**WarChild** · 10-09-2005, 04:12 PM

Wouldn't rotating lines of credit (Credit Cards) in the business's name build credit in the same way they do for individuals?

**NaughtyRob** · 10-09-2005, 04:23 PM

Originally posted by WarChild

Wouldn't rotating lines of credit (Credit Cards) in the business's name build credit in the same way they do for individuals?

Yes, but they are hard to get when your biz has no credit yet.

**WarChild** · 10-09-2005, 04:24 PM

Originally posted by GetNaughty

Yes, but they are hard to get when your biz has no credit yet.

No they aren't, you just cash secure one with a small limit. No problem.

**frankfortuna** · 10-09-2005, 04:27 PM

Originally posted by Rob

I have good personal credit but no business credit. I am familiar with Dunn and Bradstreet and how all of that works but I am looking to get financing for quite a large amount of money for business purposes and I can't use my personal credit for that. I have never worked terms with vendors and have not established D&B credit nor do I have a lick of business credit.

What are some tips to help out your business credit? Maybe buying small items on your business account and paying them off? Company car?

In my experience, the banks are going to want a personal guarantee on the loan.

**Doctor Dre** · 10-09-2005, 04:33 PM

Originally posted by GetNaughty

Yes, but they are hard to get when your biz has no credit yet.

Not at all ... very easy to get medium and small ammount ones ... work it out and get them upgraded after a while ;)

**WarChild** · 10-09-2005, 04:53 PM

Originally posted by frankfortuna

In my experience, the banks are going to want a personal guarantee on the loan.

My experience too, pretty much. The Bank wants someone or something with assets they can go after if you default on a loan. It's quite common they'd ask directors to personally secure a loan.

**NoWhErE** · 10-09-2005, 04:53 PM

Give up now,

I hear McDonalds is hiring

lol when it comes to credit, start small and grow

**$5 submissions** · 10-09-2005, 04:56 PM

How about BOOTSTRAPPING, bro? I've started several of my businesses just by plowing back all revenues/profits into operations.

I try to shy away from credit unless its almost a sure shot that I can repay it QUICKLY. However, not all credit is bad. See: http://www.webmasterlabor.com/articles/credit.html

**slapass** · 10-09-2005, 04:59 PM

If you have a revenue stream from this enterprise you can borrow money. Acounts recievable or inventory. Talk to a real banker and you can get set up.

**elitetec** · 10-09-2005, 05:01 PM

damn thought they were the same

**detoxed** · 10-09-2005, 05:01 PM

I found a great forum for that once... try search for business credit forums.. this place had an outline that showed how to end up with $20k in biz credit cards at home depot, lowes, sams club, wal mart, etc in 6 months for your company

edit: and that is starting from scratch

**KRL** · 10-09-2005, 06:43 PM

First talk to the banker that has all your business accounts. They'll usually provide you with a line of credit depending on the business and your personal credit.

Be careful with extending your business on too much credit. I'm a big believer in paying cash for everything so you don't have a big debt load on your back.

**moneymotivates** · 10-10-2005, 05:37 AM

this is an excellent site to assist with credit issues, a wealth of informaiton

http://creditboards.com

Building Business Credit: Got any tips?

Building Business Credit: Got any tips?

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