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    4 Replies Latest reply on Mar 28, 2013 10:19 AM by deltacredit2013

    Trying to establish credit to expand/grow my business

    l.mason Adventurer

      Do anyone have an  idea how I can get lines of credit for business my personal credit isn't the best but I do have personal credit cards all paid & current  scores R good been in business for a couple of years have had ups& downs just trying to get credit so I want have to keep spending my profits n possibly expand

        • Re: Trying to establish credit to expand/grow my business
          Guide

          Hi I.mason,

           

          Welcome to our forum.

           

          My first question for you is have you tried to get credit? Where did you inquire? If so, what did they tell you? The first step is to find out if you can get credit and if not why not. The why not is what you should be looking at.

           

          Are you looking for business credit? If you have an established business with years of income, this would be the main focus point for any financial establishment when considering credit. Personal credit is considered secondary in most cases. Of course, this also depends on how much credit is needed,  what type of business you have and what you would be using the funds for.

           

          Melinda

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          • Re: Trying to establish credit to expand/grow my business
            l.mason Adventurer

            Yes I have applied for a business credit card and was denied reason because they said I need to pay off sum of my debts which I've paid hospital bills as well as miscellaneous bills credit score is good no debt as of today haven't  tried since last year my business is a trucking company I would love to expand or just have a little cushion when it comes to maintenance issues instead of using profits all the time it just seems like u go 2steps forward and when something goes wrong it takes you 4steps back im trying to understand the whole credit things better because  last year when I applied for business  credit card I was denied but the very next month my truck motor went out and I went to a big truck dealer ship ( freightliner) and they pretty much approved me for a 50k truck which im currently using now and I used business credentials for financing the interest rate wasn't that great but im still in business.

            • Re: Trying to establish credit to expand/grow my business
              l.mason Adventurer

              Bank of America is who I tried to get  business credit card with since I had business & personal account with them

              • Re: Trying to establish credit to expand/grow my business
                deltacredit2013 Adventurer

                The first step to obtaining business credit is understand what exactly it is the lender is looking for.  Depending on your industry and time in business, there are different criteria.  You can get this information from your business banker at your bank, SBA, or (shameless plug here) Delta Credit Restoration.

                 

                The basic criteria are going to revolve around the "4 C's"- Cash, Collateral, Credit Scores, And Character.  What specific details are in each of these C's are idiosyncratic of the lender. 

                 

                The next step is to make sure that your personal credit is up to par.  Expect that you will be required to have a 700+ FICO score.  Banks are going to require you to sign as a guarantor, so your personal credit will definitely come into play.

                 

                You can start by getting small department store cards (Lowes, Home Depot, Office Max), using the Tax ID of your business.  There is always the option of using D&B, but to be honest, it's an unnecessary, expensive option.

                 

                Lastly, BEFORE you go get that loan, please read our other posts about obtaining business credit.  I highly recommend you DO NOT get business credit unless you are going to use it to fund a specific aspect of your business that will present IMMEDIATE returns.  If you are using it to "get going", or operate- you are creating a hazardous situation.  Grow better- not bigger.

                 

                Hope this helps get you started- good luck.