Thanks so much for this information! I am finally taking the steps to start my business and it's so overwhelming at times. I will definitely be taking all of this information into consideration! Thank you! :)
This is one of the top questions asked of me when I conduct one on one coaching and business seminars for small business owners. My suggestion is to separate your business finances from your personal by using these 3 simple steps:
1. Make sure your house is in order. Most companies now will look at not only your potential as a business owner but also your credit history as a consumer. Understand that the habits you create in your own finances WILL carry over into your business. So make sure that you are using sound financial strategies NOW and if not, GET HELP! There is no shame in asking someone for help!
2. Start off with a company that has been known to create small credit accounts for new business owners without linking your social security number to your business. A great one that I used when I initially started my businesses is Staples. By getting a small credit line ($750 or less to start) you can build a good credit history for your company, in its name and with its EIN number.
3. There are still many local business owners that are willing to give businesses small lines of credit within their stores. Find a small (mom and pop) type store and request a small line of credit. Make sure that you pay your account on time and IN FULL. Try to make purchases at lease once every other month to insure that they keep the line open and active. Make sure that they will report to the crediting agencies and or be willing to provide credit references for you to use at a future date.
By keeping things simple, you will find that over time, your business can create a good credit rating without having to pay for costly services. Faster is not always better! Take your time to build your business with a strong foundation that will not be easily shaken down the road. You are searching for longevity, not the quick buck!
Very informative. Thanks for your insight as this is a question I've been asking for a while now. My business is running quite decently, but in order to excel we need a major line of credit. I wasn't even sure where to begin. Again ~ very helpful!
Replies
This is one of the top questions asked of me when I conduct one on one coaching and business seminars for small business owners. My suggestion is to separate your business finances from your personal by using these 3 simple steps:
1. Make sure your house is in order. Most companies now will look at not only your potential as a business owner but also your credit history as a consumer. Understand that the habits you create in your own finances WILL carry over into your business. So make sure that you are using sound financial strategies NOW and if not, GET HELP! There is no shame in asking someone for help!
2. Start off with a company that has been known to create small credit accounts for new business owners without linking your social security number to your business. A great one that I used when I initially started my businesses is Staples. By getting a small credit line ($750 or less to start) you can build a good credit history for your company, in its name and with its EIN number.
3. There are still many local business owners that are willing to give businesses small lines of credit within their stores. Find a small (mom and pop) type store and request a small line of credit. Make sure that you pay your account on time and IN FULL. Try to make purchases at lease once every other month to insure that they keep the line open and active. Make sure that they will report to the crediting agencies and or be willing to provide credit references for you to use at a future date.
By keeping things simple, you will find that over time, your business can create a good credit rating without having to pay for costly services. Faster is not always better! Take your time to build your business with a strong foundation that will not be easily shaken down the road. You are searching for longevity, not the quick buck!
If you have any more questions, please email me at: askmrsv@empowerme2day.com or visit my website at: www.empowerme2day.com. I hope this helped!
Very informative. Thanks for your insight as this is a question I've been asking for a while now. My business is running quite decently, but in order to excel we need a major line of credit. I wasn't even sure where to begin. Again ~ very helpful!
this is so awesome, I have a small based business and I've always wondered how to go about getting a small line of credit for my business.
Thanks for sharing,
LaTersa Blakely
http://www.diapercakesbylatersa.com
We are the ORIGINAL BUSINESS & CREDIT BUILDERS FOR PEOPLE OF COLOR ON LINE..
also you can find us on http://nasahm.com/products or http://ialm.biz/products