My personal credit is not that good. I want to establish separate credit for my business, but it's seem hard to get started.
2006-12-22 03:03:54 · 7 answers · asked by Anonymous in Business & Finance ➔ Small Business
Nobody answering your question seems to get it right. You likely won't be able to get a bank loan as you already likely know. But, you will be doing business with suppliers and this is where you start to establish your good good credit. Sooner or later you will find one that will bill you on open credit terms, usually "net 30 days". Pay this bill in time so that the check arrives on time. Do this a couple of times and you will have established your good credit with this company. Apply for credit with another and use the first as a reference. Treat the second well and you are on your way with the third. After you have several good references and can show a good income statement and balance sheet you'll be in a position to open a line of credit with a bank. Use this line to smooth out the inventory-receivables-payables peaks and valleys and for no other purpose. If you need to upgrade some equipment after this then apply with your bank, whom you've also treated well, for a specific equipment loan. You'll have to put about 20% down. Make your payments on time and you will have established a worthy credit line for your business.
2006-12-22 05:36:15 · answer #1 · answered by Flyboy 6 · 1⤊ 0⤋
Be careful with this one, a lot of times when you have a small business it's hard to start a separate credit. We opened a small business in 2005 and everytime we applied for credit somewhere we had to include all of our personal information because we didn't have any credit established as a business. It's kind of a double edged sword. You need to establish credit as a business entity, but you can't establish credit because you don't have any to look back on. Good luck.
2006-12-22 03:06:38 · answer #2 · answered by momofmodi 4 · 0⤊ 1⤋
Get a small business AMEX credit card. Charge a couple things and pay them off quickly. You can also establish a line of credit at most office supply stores and then creditors can request a credit reference from these companies.
2016-05-23 15:39:32 · answer #3 · answered by Evelyn 4 · 0⤊ 0⤋
You can try to get a loan, or just simply open up a credit card or two at the main suppliers you use. As long as you pay off the bills fine then you should have good credit for your business. Good luck!
2006-12-22 03:06:25 · answer #4 · answered by quatrapiller 6 · 0⤊ 1⤋
If you have any capital to work with put it into a certificate of deposit in your bank and use it as collateral for a loan for you business, when you have that loan paid off go to another bank open another CD and do the same thing. After you've done this a few times you'll have established a good reputation for your business.
2006-12-22 03:13:22 · answer #5 · answered by Bill O 1 · 0⤊ 1⤋
The truth is small businesses start with the credit of their owners. So work at your own first and your small business will also improve.
2006-12-22 03:11:12 · answer #6 · answered by Jessica M 4 · 1⤊ 0⤋
Register your name with Dunn&Bradstreet. They will give you a business number that you use in place of your social security number when applying for a credit card you will then be able to get credit cards. Dunn&Bradstreet is the business version of equifax which is the credit buraeu.
2006-12-22 03:35:27 · answer #7 · answered by Medical and Business Information 5 · 0⤊ 1⤋