What is the best solution to building the business credit line? In order to have a company credit care for future purchases like car, supplies…etc
Thank you
To not to 
Sorry i had to.
Personally I would not try to build the company credit. Retained earnings will buy you any thing credit will and without paying interest.
[QUOTE=logan;167390]Sorry i had to.
Personally I would not try to build the company credit. Retained earnings will buy you any thing credit will and without paying interest.[/QUOT
totally disagree
I totally agree. Now a days there are strict guidelines for borrowing money for business purposes, so strict that if you qualified you would not need the loan in the first place. When using credit you run the risk of getting in a tight position if the market shifts downward. As volatile as things are today that’s a huge risk.
I am ok with that and using credit is easier and faster than using cash BUT increases your risk. I figure if you cant afford it you cant afford it. JMO
Most banks will qualify you for a business credit card after you’ve had a business bank account for a while. some require several months while others want at least a year or so.
Aside from that, the best way to build credit is to use credit. Not advocating, just saying. the more you show you can handle credit resonsibly, the more credit will be extended to you. Credit is great to have in emergency situations.
Loans are for people who can prove to the bank they don’t need the money…Business credit is very important, its similar to personal credit in ways such as having to prove you are credit worthy. You will need bank statements and tax proof that you have made good cash, you will essentially need to prove you don’t need the money. Get a secured credit card in your business name and show enough income at tax time to make your business look viable.
If your books are straight and you get turned down by lenders three times and have been in business three years you can apply for an SBA loan
Thats one thing that is great about this business, comparatively low equipment cost, Retained earnings coupled with a steady growth pattern should take care of the needs of the business. Makes it great for the winter time or when things just slow down. check out Dave Ramsey Homepage - daveramsey.com, very smart man at that site.
