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    6 Replies Latest reply on Mar 15, 2010 10:20 PM by roni81

    Building New Business Credit

    Joyn01 Newbie

      Hello everyone,

       


      I have been an administrative assistant for over 10 years and I am in the process of starting my own virtual assistant business. I started with one client on a part time informal basis and I just picked up 2 more clients but my business isn't offically formed yet. I have already picked out a business name and looked at the Secretary of State website to do my name registration, contacted my county's office to find out what I need to get a business license, contacted the zoning board to see if I can run my business out of my house and found out the cost to form the LLC. My question is, how do I go about building business credit and Will companies use my personal credit in their decision to extend my comapany business credit?

      Thank you in advance for any information that you may pass along.

      CJ
        • Re: Building New Business Credit
          LUCKIEST Guide
          Building New Business Credit

          Welcome and good luck. It would be nice if you go to Members page and share some info.

          As to Building New Business Credit, I would start by getting credit cards in the business name from Staples, Home Depot and even Costco.

           

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          • Re: Building New Business Credit
            PipeLIner01 Wayfarer
            Be prepaired to start small and build from there. Banks will not give loans unless you have perfect credit and liquid assests exceeding what you want to borrow. Like the olds starting at Sears with a blender and building from there. Good luck, I think you are doing great just trying nowadays.
            • Re: Building New Business Credit
              ChaoticFate Newbie
              Hello Joyn...

              There are many steps in building business credit. It seems you are on the right track on building business credit. The first step is to incorporate your business and get your EIN number. Another step that you need after you incorporate is to get a physical mailing address, your house should do just fine. Most virtual businesses can be done from home in most resident zones. After that you have to get a phone number that is enlisted in 411, and that is exclusively for your business. As well get a bank account in the business name.

              After these steps are taken, you need a DUNS number (Duns and Bradstreet this is the number one credit bureau for businesses) you can apply for that at www.dnb.com After that do as some of the others stated and try to get some tier 1 credit, which is places like staples and office depot. Sometimes the will give you a net30 account (where you have to pay the amount in 30 days) or just extend you a Line of Credit. Make sure whatever places you decide to acquire credit from report to the credit bureaus, and the more often they report the better. And before you apply you should ask what their regulations are on extending credit. Some places require your Paydex score be a certain number or higher, some require you be in business for some time. Just like with banks and personal credit cards they are all different.

              These tier one places shouldn't require you to use your personal credit, but these are what are called vendor credit, and can only be used at that particular store. Once you start building on this, you can try for more credit worthy things like business credit cards. When doing this make sure it is in the business name and that they report just like with the tier ones. But be warned with this, there were lots of new things that happened in the credit card world last week... and none of them include business credit. After building on them, you should have a pretty good business credit, and you can go after the big LOCs like banks and what not.

              Just make sure it is always with the business name, and you should be ok. But when you get to this level they might ask you to use personal guarantees. I never go with these lenders, for I don't want to pierce my corporate veil.

              If you have any questions feel free to ask.

              To Our Success,
              --JIM
              • Re: Building New Business Credit
                alytus Scout
                capital one issued me a buisness credit card