Building Business Credit

Financing, Hard Money Lenders, Private Money
1

We have no problems with our credit but our scores are low because we have high credit usage and low credit available. We are getting some money next week and I planned to pay off all our credit cards and consumer debt to raise our scores. We will have some money left and I am confused as to the best way to use it to build up our business credit. We have formed an LLC this year but Dun and Bradstreet seasoned our business because we had tax forms showing we bought a flip in 2003. To do the type of business we would like we need a $100,000 Line of Credit. Should I use our cash to open a business savings account to use as security? Can I get a secured Line of Credit that is higher than the cash value of the security?

I read something that said open a $1000 account borrow $1000 go to the next bank do the same thing as a way to build business credit. I just think that doing it that way will take a long time to get to $100,000 or more.

Does anyone have any advice?

2

I am not an expert in this area, but building business credit does take a long time- there is no quick solution to building credit, personal or business. Lenders and creditors want to see a pay history, and the deeper the pay history, the stronger the credit.

3

Be careful that this is not a credit repair company because it could hurt your credit in the short term.

4

Yes it does take time to build business credit (about 4-6 months).

5
[/I read something that said open a $1000 account borrow $1000 go to the next bank do the same thing as a way to build business credit. I just think that doing it that way will take a long time to get to $100,000 or more.
Hey Mary and Brien, sounds like you heard donna fox recently. that is a way of building credit. Another way is to wait patiently. I am following Tom Kish's system of building business credit. As gameface says it takes time. Basically you have your LLC, your EIN #. You EIN number is sold to by your state govt to various agencies, including banks. In my case. I formed an LLC back beginning of nov, Her it is 6 weeks later. I just got my first credit application. I am planning on fillilng it out next month with whatever next one comes in. If you do it 2 every month. Your creidt score shouldnt be hurt by the number of inquiries. When you do apply, make sure whoever has theb better score applies because the bank will look at the person as the guarnator of the card and will give more to your LLC as opposed to somebody with a lower score. If your cards are over 50% used, the credit sore will be lower. Dont close out your cards, just shitft the balances so you show that your debt to credit is much better. WHen I last checked, my score thur equifax was 690, SO I've been clearning up my score as advised by DOnna fox. Come january, I should have been bumped to 700 mark. :) HOpe this helps.