Hello,
What are the best ways to build business credit. I have good personal credit and one business Amex card. How does one LLC create credit.
Thank you,
John
You need to get with Dun & Bradstreet and set up a business credit profile. Also, there are companies you can pay around $2k to, and they will build your business credit for you and get you a paydex of around 80.
are you familiar with ray reynolds. if so, what will you suggest about his company.
i’m presently dealing with him but they said they need power of attorney of my business. anyone know about this.
i ordered his cd’s and loved them
Power of attorney?? Sounds fishy to me. There has to be a better way.
Don’t pay too much for credit building programs. It’s vety simple.
Establish/incorporate a fully compliant LLC or C-corp
Get a separate tax ID number for it
Open a business bank account at your favorite bank
Make regular montly deposits to that bank account (this establishes your bank rating)
Maintain the minimum monthly balance on your account (the bigger your balance, the higher your bank rating will be).
Open a business credit line or get a business credit card (don’t go crazy, just start small - like a secured credit card with Citibank or Capital One as long as the annual fees aren’t too much)
Charge something (small) on the cards and PAY ON TIME! K
Keep a small balance on the cards - do not pay off in full
All of the above must be kept up for at least 1 year - 2 years is ideal.
Get a D&B number (the free one) They’ll try and get you to buy their credit packages, but no need to spend the extra money when the same can be accomplised by doing the above.
Get a mortgage.
Find a really small and really inexpensive RENTAL or income property (SFR rental or storage or land you can rent out for swap meets, etc.)
Property MUST produce a regualr income.
Put 30% down
Borrow 70% from a lender under the name of your LLC/Corp.
Your best friend in business credit is your banker. Develop a friendly relationship with him/her and they can give you periodic profiles of your LLC’s credit and bank rating.
Finally, be patient. It takes time to be established, especially in today’s credit environment.
Good luck!
Deal Hunter Thanks for the advice! I have quite a few of these already accomplished.
I’m not 100% sure what this Ray Reyonlds company does, but if it has to do with business credit and obtaining financing, they need limited POA over your corp in order to execute applications for credit and such. Hope that helps…
We established our business credit simply by applying for a Business Blue card through Amex and opening up a checking account in the business name at our bank (HSBC).
There are a few credit card company’s that will let you open without existing business credit. Office depot, Home depot, Staples, Best Buy, Dell…these are just a few. I paid $2k to get my bus. credit established and you can start with these. Just charge small amounts and pay on time.