james hardie siding lakemoor vinyl siding installation round lake beach hardie plank siding lake forest concrete siding cook county vinyl siding installation riverwoods .. Chicago Drug testing

How To Build Business Credit

Having their own business is something many millions of people dream of doing. Many do, of course, but so many others never quite get around to it. One of the factors that may discourage people from getting that business off the ground, is a lack of start up capital; and another may be the risk of losing their own money.

With a bit of thought, planning and effort, though, it may be possible for you to not only raise some start up capital, but do so through business credit. In other words, borrow against the business rather than personal assets.

You may be thinking that you have no business yet. That may be so, but it does not mean you cannot obtain business credit to get your plans started

Building business credit is completely different from building personal credit, and it is best to keep them separate if possible. Some credit reporting agencies will sell a business FICO score based on both the risk of the business and the personal credit of the owner. In some instances, the owner's personal credit is linked to the business credit, separate credit records are profitable. You should also bear in mind that you do not have the same credit protection laws with business credit as you do with personal credit.

There are some important steps to follow in building a good business credit record. Here are a few for you to take into account:

1. Prepare Business Plan And Structure

You are now in the world of business credit, not consumer credit. This means that you are trying to project yourself in a business-like way. In preparing yourself to do this, you will have the added bonus of preparing yourself for the transition from being an employee to being a business man or woman. The more business-like you become, the better your business will do in the future.

But first things first. Your first job is to convince potential lenders you are going to have a viable business. The quality of your preparation is important; if you go seeking business credit without doing your homework, you will be sent back to the drawing board.

To begin with, set up a proper business structure, and if you require any licenses, make sure those are in place. Also, prepare a business plan, with the aid of an advisor if necessary. You can use this to show that you have thought about the business: the products, the markets, the competition, pricing, and all the other elements of the business. Be prepared to defend your projections for sales, and your estimate of start up and running costs.

Again, this has the added bonus of being a good preparation for you, regardless of seeking credit for your business. You will become a better business person for preparing your business plan. Hopefully, that will stand you in good stead as your business grows successfully. Planning will become a part of your monthly or annual routine.

Another preparatory move that will help you is, in the US at least, getting a business credit profile. This can help you to build up business credit without using your personal credit. The benefits in having a business credit profile are many. Most importantly, you will have more cash for the business, convenience in purchasing, protection of your personal assets, limiting of personal liability from the business, and the ability to prepare your business for future lending needs.

2. Become A Good Credit Customer

You will, of course, need to buy equipment, services, stocks and other materials for your new business. If you can find vendors who will grant you credit, all the better; but is best if they are companies who will report your credit history to the major business credit reporting agencies. Dunn and Bradstreet is probably the best know internationally. Unlike with personal credit ratings, or FICO scores, with business credit scores income or income potential play an important roll. The top scores are reserved for the large stable businesses, but with careful and diligent business and crdit practice, you too can achieve a good credit rating.

3. Obtain A Credit Assessment

In order to enter the business credit market, it is best to do a credit assessment. This will determine if you comply with the lender and credit bureau's requirements. Once you have done that, look for businesses that issue credit without the need for established business or personal credit checks or guarantees. Once you have transacted business with vendors on credit, you can utilize those references to build your credit profile with the credit reporting agencies.

In many US states, there are non-profit organizations and/or government organizations that will help you with obtaining business credit. Often there are loans available for start-up businesses or even government grants. Check your state government, or national government if not in the US, web sites for such organizations.

Many retired, or semi retired, businessmen volunteer to help start-up businesses. If you can, take advantage of such help; it will all build your knowledge as you set out on the road to a successful business with a good credit standing. Experienced business people will forewarn you of many of the pitfalls of starting your own business, and you will be better prepared.

This how to build small business credit article was written by Roy Thomsitt, owner author of the Eliminate Credit Card Debt Now website. Roy is a former finance and business professional, now a full time online author.

In The News:

Power Tools for Business

How do we keep track of our business deals?If you... Read More

Don?t Quit Before You Get to the City!

We were more than excited. Our women's doubles tennis team... Read More

How to become a Career Coach for Profit

A career coach could be simply defined your job seeking... Read More

Small Business Planning -- Three Myths

Are you -- like 70 percent of small business owners... Read More

Mobile Car and Truck Washing Vehicle Placement

To maximum potential profits and dollars in a mobile washing... Read More

Common Sources of Financing for Small Business

The choice of financing is an important determinant of whether... Read More

Postcard Marketing ? Low Cost Visibility

You need to be visible to attract customers, right? But... Read More

Round Pegs In Round Holes: The Amazing Secret of Succeeding in Any Business Every Time!

Success is the desire of everyman on the face of... Read More

A Portable Trade Show Exhibit Makes for an Easier Show

You can make your trade show experience much easier by... Read More

Earn More Money in Your Small Business by Creating a PIG

If you really want to earn more money with your... Read More

Become The Squeaky Wheel and Watch Your Business Skyrocket!

Providing high quality customer service is a must for any... Read More

Employee Relations Manual Sample Outline

Most smart entrepreneurs and all large corporations have Employee Relations... Read More

Computer Tips that Help Small Businesses Operate Profitably

When working properly, computers enable small businesses to make big... Read More

Encouraging Your Customers to Pay On Time

Nothing can drive a business down faster than customers who... Read More

Hispanic Small Business Advantage

One thing I have noticed in my travels to different... Read More

Does Your Business Need a Toll-Free 800 Number?

Should your business have a toll free number for customers... Read More

What Your Small Business Can Learn From The Doctor

Most doctors never distinguish the difference between customers and patients.... Read More

Perfecting Your Pitch

Why should you describe your business to others in 5... Read More

Small Business - A Thing Worth Doing Is Worth Doing Badly

A thing worth doing is worth doing badly. Yes I... Read More

Using Excel Payroll Sheet to Make Payroll System Easier

For the employees, payday is the brightest day; they finally... Read More

Postcards Make It Rain Referrals

One of the simplest ways to expand your marketing efforts... Read More

Do You Really Need a Toll-Free Number for Your Business?

Do You Really Need a Toll-Free Number for Your Business?... Read More

Direct Mail - For Small Businesses

We hear a lot of talk about junk mail nowadays.... Read More

The Beauty of Focus and Plan B

Did you ever have one of those days or weeks... Read More

Creating Time the Virtual Way

Time. As a small business owner, it's the commodity you... Read More

led lighting wholesalers led manufacturer usa Pete's produce ..
led lighting wholesalers led manufacturer usa Pete's produce ..