ANSWERS: 7
  • I'm nearing the LLC or S-Corp decision myself, so I have yet to reach the point that you are at, however, here's an article that may help. http://smallbusiness.yahoo.com/r-article-a-2274-m-2-sc-53-the_abcs_of_business_credit-i An additional thought was to simply: 1) Open a business account at a local bank or credit union. 2) Put $ into the account. 3) Request a Business Credit Card or a Business Loan using the $ deposited into the biz-account as collatoral. 4) a: If a credit card is obtained, make cash withdrawls, then pay back the bill using the cash from the original withdrawl. OR b: If a business loan is obtained, do the same thing, this time you'll pay the loan back using the cash from the original loan. Both ways you'll pay some points, or small fees, however in time this should help to establish some credit history for your company. Good luck
  • bank of america has a secure corporate credit card that helps you establish credit.
  • A sound business plan is the first step. The best avenue I know of is to hook up with SBA (provided you are in the states!). They will not only help you write it (for free!) but they will also guarantee bank loans/line of credit. Now mind you, it's been nearly 40 years since I went that route, and I've been out of the states for more than 20 years ... 2, maybe even 3 things could have changed since then :-))
  • Also, check this site out. This is one website that is extremely useful. http://www.startupnation.com
  • Here is a free resourse on how to build business credit. Follow the steps closely if you get stuck they have coaches that can assist. The Basic Process To begin separating your personal credit profile from that of your company, the following are the first basic steps. 1. Incorporate or Form an LLC You need to have a separate entity to build a separate credit profile. Click here for our incorporation and LLC formation services. 2. Obtain your Federal Employer Identification Number (FEIN) We can prepare this form for you when you use our incorporation services. 3. Open a Separate Business Bank Account Business funds and personal funds must be separate. 4. Obtain a D-U-N-S Number This is a 9-digit number issued by Dun & Bradstreet that most companies utilize to verify the credit history of businesses. 5. Compliance Make sure you've obtained all necessary business licenses, permits, etc. that are required in your jurisdiction. 6. Business Phone Line and Yellow Pages Listing Make sure your business is listed in the phone directory and the phone line is in the business name, not in your personal name. 7. Same Business Address Make sure the exact same business address is used for your DUNS number, the yellow pages listing and phone number as well as on business licenses and company credit cards (that you will be applying for later). Your home address is acceptable, however, private mailboxes and p.o. boxes may not be. 8. Apply to "New Business-friendly" Creditors Apply to those companies that generally grant new businesses credit cards and lines of credit without requiring a personal guarantee. These companies will then update your credit profile with the various credit agencies. This is how you initially establish a business credit profile. 9. All finished That's the basic process to setting up a new credit profile. http://www.boostscores.com/build_business_credit.php
  • I regards to Bank of America secured Credit Card they are no longer offering this. As it was to only build your credit internally with the bank if you wanted to apply for a loan. They did not report to any Business credit reporting agencies. only if you were delinquent
  • The hardest part is finding a company willing to be the first to grant you credit and who will also report your payment history to the business credit bureaus like D&B. One of these companies is http://www.marketingoncredit.com - They offer a guaranteed $2500 business credit line and they report your payments to D&B which establishes your business credit.

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