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    4 Replies Latest reply on Aug 7, 2008 3:06 AM by Auto_Importer

    establishing credit

    tionce32 Newbie
      How do i establish some credit for my new business without using myself as the guartee?
        • Re: establishing credit
          LUCKIEST Guide
          Establishing credit, Welcome

          Tell us more besides Advertising/Marketing/Public Relations?? Where are you??

          You start to establish credit for your business by getting a Staples, Costco, Home Depot
          A bank and a gas credit card. Use them monthly and PAY OFF the balances Monthly.

          In 6 months you have established credit.

          LUCKIEST
          • Re: establishing credit
            Milleisen Scout
            Banks typically won't give your business credit without a personal guaranty. Most small businesses are only as dependable as the person behind them, and banks know this. That's why personal guarantees are usually required. Your personal credit score will always be much more important than your business credit, so focus on making your personal credit report as pristine as possible.
            • Re: establishing credit
              Auto_Importer Newbie

              I handled this by taking out a deposit loan from a finance company. I borrowed $100k just to hold it on deposit. By agreeing to just hold the funds on deposit, the lender agreed to lend the funds to my new corp with no personal guarantee. The credit was reported to Experian Business Credit, and the money on deposit in my company name didn't look bad on my balance sheet. You can give back the money any time you want to pay off the loan.

              The company I borrowed from even offers to place the cash collateral with another bank so that the bank can issue you an secured line of credit to refinance the first loan. I am still in the middle of this part of the transaction, but everything has been as expected so far. Jonathan Warren at Trade Capital Company in Las Vegas put this together for me. They can be hard to reach by phone, but easy by email, and they get it done.