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    13 Replies Latest reply on Oct 12, 2008 8:46 PM by directconect

    new business and i havent a clue

    endsmeat Newbie

      My name is joseph, and i have a home movie theater and basement building construction company. I am so nervous about my business credit. I have insurance and ein and also i am registered. I also have business bank account and i think just about everything i need. I just dont know how to build my credit for the business. I have tried looking for secured credit cards but i dont know if that the right thing. Can someone please shed some light on me. Thanks
      PS, I just got approved for my business cell phone with a 100 dollar deposit. Should i have done that???
        • Re: new business and i havent a clue
          LUCKIEST Guide
          new business and i haven't a clue?? Welcome Joseph

          *Tell me more. Yo*u* *have a home movie theater and basement building construction company

          How long have you been in Business?? Where are you located like City and State??

          Do you know about SCORE?? SCORE is FREE and helps people in Business.

          Good luck, LUCKIEST
            • Re: new business and i havent a clue
              endsmeat Newbie
              I have had my business now for six years, but I always delt in cash I never wanted to use any kind of credit, but these days you have to and I want to do it right. My business is located in Toms River NJ. We finish basements and build custom movie theaters, or any kind of fun room you or I can imagine. I have four employees working with me or you can say for me.
                • Re: new business and i havent a clue
                  FCPainter Adventurer
                  Not to be too nosy, but why would you suddenly need busines credit now? yes, it's smart to build up a credit profile for your business. If i were you, i would walk into whatever bank you have your business checking account at and ask them about getting a small line of credit and a credit card. pay them both off right away. Also, don't you have suppliers that give you terms? Presumably, they would report your payment behaviors to people including D&B.

                  For myself, I'd rather use my home equity for short term cash needs. It scares me into borrowing as little as i can and paying off as quick as I can and ensures I get a good rate. you could not pay me to do sales factoring. the interest rate on that stuff turns out to be like 25%+
              • Re: new business and i havent a clue
                endsmeat Newbie
                What is score?
                • Re: new business and i havent a clue
                  TJMorehead Adventurer
                  Hi Joseph,

                  You are making the right move. Setting up business credit along with having your company incorporated releases you from personal liability and having to personally guarantee financing. Your company should be its own entity. Unlike personal credit, business credit is considered good debt. When you have trade lines of credit, loans, etc, that gives the lenders a little comfort because they have a point of reference. If you continue to pay cash for everything and pay off debts soon, its hard to track your performance, so lenders aren't as likely to loan or give you credit.

                  To establish business credit, you do need a Duns number, not the free one. You have to pay for their packages. Your creditors have to be verified by Dun and Bradstreet in order to start reporting them, otherwise nothing is reported. 4-6 trade lines aren't enough to get you to where you need to be. Your goal is at least a Paydex score of 80. Additionally, there are other factors involved to maximize your score. I recommend you contact a professional who can educate you and do this for you. If you need a referral, I'd be happy to connect you with them.

                  Warm regards,
                  • Re: new business and i havent a clue
                    ARIZONAGAL1 Newbie
                    Hi Joseph,
                    I just got done reading jad_cpa's story.
                    Look him up for advice on how to establish your business credit it's good advice.
                    Easy steps too.

                    His story is "How I learned to establish credit in my business name."
                    look for it on the search this site on the right in yellow highlight.
                    Good Luck!
                      • Re: new business and i havent a clue
                        directconect Adventurer

                        1 there six steps to building your business credit file
                        • 2 you have to have 5 trade lines*
                        • 3 business credit works like this:*
                        scale 1 to 80
                        this is what raises your score
                        1 The more trade lines the higher your score
                        2 activity) your trade lines have to be kept current with activity
                        1 multiple trade lines shows that your doing business on a larger scale
                        2 activity on your trade line shows that your doing consistant business
                        this is what raises your business score
                        I AM BOB. 559-765-4440 559-322-1258
                        business network
                        B5 CREDIT BUILDER
                        FIVE STEPS TO INCORPORATE
                        FIVE STEPS TO FIVE TRADE LINES IN 30- DAYS
                      • Re: new business and i havent a clue
                        NoBullFunding Scout
                        Business credit is not nearly as important as personal credit. Don't buy into these people who claim they can establish business credit (for a fee, of course). In my years as a credit underwriter, I NEVER turned away an applicant because they lacked business credit. If there was derogatory credit, that's VERY different than not having business credit. If you have a good personal repayment history, that's good enough with regards to credit. That alone won't get you a loan, but good credit is ALWAYS a good start.
                        • Re: new business and i havent a clue
                          CaptCole Newbie
                          Joseph, look at our home theater chairs at
                          Capt Cole
                          • Re: new business and i havent a clue
                            directconect Adventurer
                            MY NAME IS BOB
                            I do This Every Day And Have About 10 Web Sites And You Are Some What On The Right Track And Then Again Starting To Get Lost. If You Would Like Me To Point You In The Right Direction At No Charge Email me At and don't spend no more money i can tell you how to obtain it all free