ForumsFinancing Tips

NoBullFunding,

Most of the people who are asking this are up and running as a business. Losing the business is only going to damage their credit even more. This feels like a vicious cycle that very few can escape from. To get credit to run your business you need to fix your personal credit, to fix your personal credit you need your business up and running. Wow.

I have a couple of questions:

Depending on the credit scores, how long could this process take to get their credit to a point where they can get a loan or a line of credit?

What type of credit score are lenders looking for now to make a loan or give a line of credit?

Is there anything they can do to help speed the process along?

Are there things they can do to build the business' credit that doesn't involve their personal credit?

I thought I would ask the questions that seem to be out there but no one ever asks. I am hoping NoBullFunding can give people answers they need to hear. Or he can tell me how stupid my questions were because I don't know jack about financing. I really don't know much about financing so it is okay.

I couldn't agree more with each poster who said you need to rebuild your personal credit file. As a busines owner I tend to shudder when I hear new business owners say things like "how can I build my business credit". It's not a "bad" question, it's just that a lot of people (not all) who say this are dealing with personal credit issues. I assure you I'm not above personal credit issues, but I rebuilt my credit through a ton of research and learning on my own.

The first I would do is get a copy of your credit report. Believe it or not rebuilding isn't hard. I went from a mid 500 score to a little over 700 in a year. I basically negotiated and paid off my collection accounts, and kept my utilization low. It's not rocket science, but I wanted my personal credit to be good for when I started to really expand my business. Bad credit didn't happen over night and good credit doesn't either, it takes time. New credit in good standing begets bad credit. You can get things removed but not in an unscruplous manner, and you don't need to pay someone else to help you. Negotiation is a powerful thing, as well as being honest.

I would be weary of anyone who tells you that you'll get a line of credit easily, even for the most established business it's hard. And since we're living in tough economic times, more and more banks want a personal guarentee and a score of 750 and above. Don't avoid your personal credit issues, deal with them and clean-up your file. Good luck and again these are just my opinions.

Knowledge is power and it's free if you're willing to do the research.

So sorry for the double post.