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    14 Replies Latest reply on Feb 12, 2010 7:00 PM by dmac_ontop

    how do you build business credit for a new business?

    bownerfinally Newbie
      Hi,

      i am a new business owner and i am wanting to begin building business credit separate from my personal credit. i registered my company with D&B. I have created an LLC and properly received an EIN. I am running a virtual call center, and i have just landed my first business customer, which is a business here in our area. I am currently working out of my guest bedroom until i generate more income to lease an office. I am currently heading into my 3rd year of lawschool, so i am busy but once i finish law school, i plan to continue this business, but i will let my husband take over more control while i run my law firm. So, i am wanting to begin building credit for my new business, but all the credit i have researched wants me to link it with my personal credit, which i dont want to do. i have had some personal credit problems, but i have set up payment arrangements with my creditors and i would rather just leave my personal credit alone for a few years to pay off these lenders and repair my credit. is there a secured credit card for businesses? how can you establish credit if no one will give you a chance. the only bill my company is paying so far is our business phone line and cell lines. Any advice is appreciated.

      Thanks
        • Re: how do you build business credit for a new business?
          LUCKIEST Guide
          how do you build business credit for a new business?.
          Start small. Go to Staples, Home Depot, Office Max and others.
          Open a Credit account in the business name.
          Use the credit card and PAY OFF THE BALANCE MONTHLY.
          Over the next 6 months you will have established GOOD CREDIT
          in your business name.
          Do you know about SCORE?? SCORE is FREE.
          LUCKIEST
            • Re: how do you build business credit for a new business?
              Dooles Newbie
              Typically with that..you still have to sign a personal guarantee to secure the debt or line, right? I own a couple of small businesses and I continue to find troubles in obtaining credit or lines as it is in reality my assets and not the companies so when I look at my personal credit report it does show the debt or line on my report. Any way around this?
              • Re: how do you build business credit for a new business?
                dmac_ontop Newbie
                I am in the same predicament. With bad credit, no institution is willing to extend credit to your business easpecially if you have problems with personal credit. They look at you personal credit as part of the process to determine whether ot give you a credit card or not.

                I desperately need a credit card for my business but I have been deniedonce already and I am tentative to try again till I improve my personal credit in another year or so.
              • Re: how do you build business credit for a new business?
                IAmSpartacus Adventurer
                I've owned my own business for 11 years and the reality is that banks will loan you all the money you want... as long as you don't need it. They are completely risk averse (even more so these days) and will only fund against collateral. If your business is not a "brick and mortar" operation or one with high receivables then, unfortunatey, you are generally out of luck regardless of the credit history. We were able to obtain one business loan many years ago simply because my business partner had the good fortune to hook up with a bank VP at a golf tournament. We made all of those payments on time and closed out the loan and no bank would ever talk to us again because we were a software company and had no hard assets or steady receivables to secure a loan. You'll most likely be limited to growing from cash flow, using your personal credit, securing investment, or obtaining an SBA loan.
                  • Re: how do you build business credit for a new business?
                    Dooles Newbie
                    Very good point. I received a line through my bank Umpqua Bank here in the Northwest due to my personal financial statement. I have run several organizations for GE Capital and Fidelity Investments and the bottom line is that if you do not have receivables then, you are securing loans and lines with personal assets. I have a mortgage, real estate and real estate developement company and because the only asset we have is human capital, in other words our thoughts and advice. IT seems we secure everything thru my personal credit.
                  • Re: how do you build business credit for a new business?
                    bizconsultant Scout
                    I actually consult with start up and small business owners on that vary thing...establishing business credit without using your personal credit. You have the first two steps already done . Contact me at ajones@abcsolutions.cjb.net for some information on how we can help with the rest of it. If you have a bank you are currently doing business with, it makes it a lot easier to accomplish but there are several vendor credit lines available that can help you with establishment of just business credit (which can be used for all kinds of business purposes)
                    • Re: how do you build business credit for a new business?
                      geezer52 Newbie
                      You have the right idea registering with Dunn and Bradstreet, now you need to begin to build your credit. First go to Offfice Max and tell themu want to open a business account. Bring with you your business license, DBA, and Sales Tax and Use permit. If you don't have these things email me and I will email you with specic instructions on how to obtain them. Office Max is the most lenient. You do not have to make a great amount of purchases just make sure you use your account and make your payments on time.

                      There is a Company that specializes in helping people build business credit. If done properly you can have business credit enough to obtain a $100,000 credit line within a year. It is very important to have a business address and a phone that is for business only. It can even be a cell phone as long as it is answered with the business name and is avalable during normal business hrs. If you will email me at geezer52@gmail.com I will get the the name and contact information for the company. If you go to Office Max do not give them your SS number. And it is best to incorporate. This reduces your personal liability and seperates you from your business. Being a law student incorporating should be a piece of cake for you and Texas only charges about $300.

                      Good luck with your new endeavor
                      • Re: how do you build business credit for a new business?
                        geezer52 Newbie
                        You have the right idea registering with Dunn and Bradstreet, now you need to begin to build your credit. First go to Offfice Max and tell themu want to open a business account. Bring with you your business license, DBA, and Sales Tax and Use permit. If you don't have these things email me and I will email you with specic instructions on how to obtain them. Office Max is the most lenient. You do not have to make a great amount of purchases just make sure you use your account and make your payments on time.

                        There is a Company that specializes in helping people build business credit. If done properly you can have business credit enough to obtain a $100,000 credit line within a year. It is very important to have a business address and a phone that is for business only. It can even be a cell phone as long as it is answered with the business name and is avalable during normal business hrs. If you will email me at geezer52@gmail.com I will get the the name and contact information for the company. If you go to Office Max do not give them your SS number. And it is best to incorporate. This reduces your personal liability and seperates you from your business. Being a law student incorporating should be a piece of cake for you and Texas only charges about $300.

                        Good luck with your new endeavor
                        • Re: how do you build business credit for a new business?
                          college_rep Newbie
                          It is especially hard right now to get business loans without near perfect credit rating. Depending on the type of your business and development goals, you might also consider an alternative to credit-based bank loans. For instance, service/consulting businesses, IT companies (like Spartacus mentioned) or other start-ups without long line of business or personal credit may consider revenue stream-based financing, which establishes future cash flow as an asset. If you would like more information on this, email me at juheakim@princeton.edu. Good luck!
                          • Re: how do you build business credit for a new business?
                            college_rep Newbie
                            It is especially hard right now to get business loans without near perfect credit rating. Depending on the type of your business and development goals, you might also consider an alternative to credit-based bank loans. For instance, service/consulting businesses, IT companies (like Spartacus mentioned) or other start-ups without long line of business or personal credit may consider revenue stream-based financing, which establishes future cash flow as an asset. If you would like more information on this, email me at juheakim@princeton.edu. Good luck!
                            • Re: how do you build business credit for a new business?
                              geezer52 Newbie
                              The name of the business is Business credit Services and they can be reached at 866-254-6070 They have over a 90% ratio of helping small business men build major business credit within a year.

                              Ed
                              • Re: how do you build business credit for a new business?
                                dcs1960 Newbie
                                Its difficult as a new business owner to get credit for a business loan. But a good way to start building credit under your business is to get approved for a business credit card. I would suggest trying this credit card site....www.CreditCards-N-Motion.com.....I applied their for 2 cards over the course of 3 months and got approved pretty quickly. They have a good choice of business credit cards that will meet your needs.