ForumsLoans and Lines of Credit

I have had my business now for six years, but I always delt in cash I never wanted to use any kind of credit, but these days you have to and I want to do it right. My business is located in Toms River NJ. We finish basements and build custom movie theaters, or any kind of fun room you or I can imagine. I have four employees working with me or you can say for me.

new business, SCORE is FREE

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because i went from 2000 sq foot houses to 37000 sq foot now. and need more equipment and things you know

Hi Joseph,

You are making the right move. Setting up business credit along with having your company incorporated releases you from personal liability and having to personally guarantee financing. Your company should be its own entity. Unlike personal credit, business credit is considered good debt. When you have trade lines of credit, loans, etc, that gives the lenders a little comfort because they have a point of reference. If you continue to pay cash for everything and pay off debts soon, its hard to track your performance, so lenders aren't as likely to loan or give you credit.

To establish business credit, you do need a Duns number, not the free one. You have to pay for their packages. Your creditors have to be verified by Dun and Bradstreet in order to start reporting them, otherwise nothing is reported. 4-6 trade lines aren't enough to get you to where you need to be. Your goal is at least a Paydex score of 80. Additionally, there are other factors involved to maximize your score. I recommend you contact a professional who can educate you and do this for you. If you need a referral, I'd be happy to connect you with them.

Warm regards,
TJMorehead
www.moreheadsconnections.com