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    1 Reply Latest reply on Sep 15, 2010 3:35 PM by phanio

    How can I establish business credit.

    HomeCouture Newbie
      I am a brandnew business owner as of 3months ago. I have been advised to start looking for banks that helps small business owners establish business credit. This is a like finding a needle in a haystack for me. My own personal credit is tarnished due to difficulties I ran into with my mortgage. I have since did a loan modification, but I feel sure that it is not ideal. Everywhere I go, I am told that the credit that I seek under my business is going to be dependent on my personal credit. So, then, I don't bother applying. Can anyone offer any advice, institutions or resources. Even if I could get a secure line of credit for my business, this would be a start.
        • Re: How can I establish business credit.
          phanio Pioneer

          Using business credit to get around you bad personal credit does not work. For the most part and there are countless stories on this forum to back this up, you will end up wasting several months and up wards of thousands of dollars to establish business credit that still will not get you the funding you need.

          My suggestions - work on your personal credit - get it fixed as soon as you can - thus, you then can move forward with your business and not have to face this difficulty again.

          You can also try to bring in a partner that does have good credit and try that way.

          Or, you can bootstrap your business. Find ways to either raise very small amounts of capital from friends or family or use personal assets as collateral. Or, you could even attempt to start you business on a smaller scale - get out and drum up business - then take those orders and seek financing based on them. Financing business in hand usually does not require any type of credit score on the borrowers part.

          Business Money Today