Let’s face it, today’s finance environment has certainly had its better days. The Obama administration has seemingly failed to deliver and the banks are very concerned about another massive breakdown in the financial system. Building getbusinesstoday credit has become more important than ever because banks are becoming far more particular about whom they should lend their money too, and how to best allocate the limited funds they have now.
Those entrepreneurs who take the effort to build business credit have a tremendous advantage over those who are using former traditional methods for finance. Simply having credit in place when the next finance boom is at its peak is a great opportunity for entrepreneurs with business entities and established business credit.
By taking the steps necessary and giving the banks what it is they want, you can drastically increase your chances for approval. In fact, many find that by preparing a business line of credit package in advance, they are able to get financing much easier than ever before. There is money available, and these funds are being accessed by those who are prepared with a well thought out business plan, Paydex score, and of course a strong personal credit score is always useful.
How to easily get business credit with out using your personal credit scores
Once your business credit file is fully compliant, and items such as a 411 listing, having a real business address, and corporate documentation are in order, it is a simple process to apply for the vendor credit and get approved based on EIN only.
Research “EIN 20 item check list” to learn about compliance.
Applying for vendor credit such as, office depot, office Max, DHL, will quickly put your business entity on the map with Dun & Bradstreet. The key is to understand what it takes to get an 80 Paydex score.
Once you have your 80 Paydex score in place and reporting positively, you can then graduate to applying for revolving credit. Most people make the mistake at this stage because they apply for revolving credit that they likely will not be approved having a denial on their business profile. A denial at this stage in the game is a disaster for a business entity credit score.
Build your personal Credit to Speed The Process
Let face, its sometimes is faster to repair personal credit and co-sign for business loans, rather the wait for business credit to catch up.
Why build your personal credit when applying for business credit? In the early stages of building a business entities credibility, anything within the first two years, it can be in credibly beneficial to have a personal fico score that can cosign in behalf of the business entity that is applying for business loans. Regardless of your applying for business credit cards, vendor trade lines, or strictly E. I N. financing, having the of building to cosign read gardens of your credit score can in most cases be the difference in getting the amount that you need, in the speed that you need it. Check your Credit
