Business credit with no personal guarantee. If you are a business person or entrepreneur you have probably been rejected when you applied for business credit. Or you were probably asked to put your house up for collateral, or asked to personally guarantee your business loans. We can show you how to get business credit with no personal guarantee.
There are good ways to go about getting business credit, and not so good ways. Here is a proven 4 step plan for getting business credit:
1. File for incorporation. This is important. If your business is not set up as a corporation you should file for incorporation right away. At Access My Capital we can help you file the incorporation paperwork in the state of your choice. If your business is already incorporated, you should make sure your corporate records are current and in order. Also be sure your corporation is in good standing with your bank and with the appropriate government agencies.
2. Do a complete Credit Bureau Check. This is also very important because your credit bureau records will have a direct impact on your ability to get credit. AccessMyCapital.com can help you check to see if there are any adverse reports in your record. If some show up, they can get them resolved by following the necessary steps.
3. Register with Credit Bureaus. After you have made sure all your records are in order, your corporation is in good standing, and your credit report has no bad marks against it, you should register with a number of credit bureaus or credit reporting agencies. This will help to establish your business credit profile.
4. Apply for and Obtain Business Credit. Once your business profile has been established for a few months it is time to apply for a business line of credit and retail credit cards for your business. This does not involve using your personal credit report. AccessMyCapital.com can make sure that your creditors do not pull your personal file either.
A shelf corporation is sometimes viewed as a great way to get your business recognized and to make it easier to get credit. If you are going to contact the bank to see about a corporate credit card or a line of credit, you will have better luck if your business is a couple of years old instead of a couple of months old.
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For more information on how Shelf Corporations
can benefit your business see:
Shelf Corporations at AccessMyCapital.com
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In the eyes of the lender, it reduces the risk involved should they decide to issue you credit. Since at least 50% of all new businesses fail in the first year, the fact that you are a couple of years old significantly reduces the liability in their eyes. This could mean the difference between you getting the corporate credit you need or it being denied. It can also affect your credit limit and the amount of interest that you will pay on it.
Building sources of reliable business credit is one of the most important tasks a business manager or owner has. Without adequate business credit, a business may not be able to weather ups and downs, meet payrolls, maintain good relationships with suppliers, or even take advantage of sales opportunities that often require upfront capital.
In this blog we offer sound business credit advice and discuss how you can obtain the most reliable and economical business credit available.
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