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    11 Replies Latest reply on Mar 31, 2009 10:56 AM by ONE.COMPANY

    Credit with companies

    sergiov Newbie
      How can I establish credit with companies , If im just starting one ?
        • Re: Credit with companies
          LUCKIEST Guide
          Credit with companies, Welcome

          Let me see if I understand your question (in other words) You have just started your
          own business and want to establish credit with other businesses for your new business.
          What kind of business have you started??

          O K Get Credit applications in stores like Staples, Home Depot, Fed Ex and Gas companies.
          Use the credit cards monthly, Pay off the balance each month and you are on your
          way to establishing a good credit history

          Good luck, LUCKIEST

          • Re: Credit with companies
            RickFelten Adventurer
            Sergiov, a hair salon is essentially a cash business. That means that people pay for the service at the time of service (cash, check, or credit card). You should be able to generate sufficient cash from operations to meet your payables, assuming that you have a good location & clients. Why do you want to establish credit if, as you say, your credit rating isn't happening? Cash is King in business and having a solid cash flow is very important; much more important than credit.

            The key to establishing & maintaining 'good' credit is to make a purchase on 'terms' and pay it off within the agreed time period.

            Are you on "COD" with your suppliers? If so, try to have them extend you credit for 2-weeks. Then, show them that you can pay it off on time. After several months, ask for 30-days or 45-days. Keep this up and you will have a better credit rating for your business.

            Hope this helps.
              • Re: Credit with companies
                sergiov Newbie
                Well thanks for the info Rick but im in Electrical Business www.sergioselectric.com
                  • Re: Credit with companies
                    RickFelten Adventurer
                    Sorry, I must have mistaken the other posts asking the questions as yours. My apologies.

                    I like the video on your website. It tells the story of what you do very well. One suggestion, try to re-work the website to eliminate the "tables" so you have a more professional appearance. Looking at all of the lines, columns, and rows takes away from the good stuff you have to offer.

                    What are your terms for customers? Do you ask for a down payment before work starts? If you get, say 25% or 30% down (not unreasonable for custom work like yours) you may be able to get suppliers to accept the down payment and extend you credit with the balance due upon completion of the work. It is worth a try.

                    Another way is to seek a working capital line of credit. Go to your bank with your business plan and funding needs. Show them how you will spend the down payment from customers and what your shortfall is. It wouldn't hurt to have 3 or 4 testimonials from customers to substantiate your high quality work. If you can show the need for money on a project basis, they will probably extend you the credit you need. I went to my bank with a proposal for a project and got $350,000 in a week!

                    Hope this helps sergiov.
                    • Re: Credit with companies
                      MS.ALPHA Wayfarer
                      hi. thanks , i just been in this city 2 years built small clientele but the location where i was currently working was not noticeable so i found a location new that im trying to build up as well but as my own in stead of paying someome else i now get paid but need a better set up . or someone that can believe in me till i grow a bit more. equipment is needed more products and yes the business generates a cash flow but only for rent and bills and other small maintenance.the salon has great potentials.
                  • Re: Credit with companies
                    ONE.COMPANY Wayfarer
                    As a new businees starting out, you will want to build your business credit profile from scratch. This can be done easily with a little guidance if you do not know how to already. Also, when starting out you can obtain business credit without the use of your personal credit. Remember that this is for the initial building up of credit. As you move further along with your company and want higher credit lines, your personal credit becomes a factor. But, while in the process of building your business credit, because it does take time, you can rebuild your personal credit also.

                    The foundation for establishing your business credit profile usually starts with net accounts. Your business documents should also be in order.

                    There is a guide available that can assist you with building your business credit yourself. For the price of a "value meal" you can do this yourself.

                    It's available at : www.cardaspublishing.com

                    If you would like for me to explain a few more things to you and what you need to get going, contact me at : contact@cardaspublishing.com