Getting ahead in business means working for yourself, and it is a thrilling moment when you first come up with an idea you know will be a great business venture. Putting that idea into action takes money though, and that can be frustrating if your personal credit is not squeaky clean, or if you are smart enough to know using your personal credit to back a business loan is not the best idea.
There are ways to get funding for your new business startup without a credit check. Everything you do for your business, including improving its fundability will begin from day one with building corporate credit. You need to establish your business’ identity and develop its own credit history. The first thing to do is create a business plan that outlines your abilities, what your company is and what products or services it will offer. Along with the basics, you need to prepare a full financial outline including all of the costs associated with running your company and how long it will take you to see a profit.
Once you have all of your licensing in place, and the appropriate identification numbers from the IRS and Dun & Bradstreet you can begin to apply for lower forms of funding that are easier to get.
Getting Credit to Build Fundability
Open a bank account in your business name. You don’t need a credit history to do that, just the proper tax identification numbers. A bank score differs from a credit score, but it is very important in showing your reliability to lenders. Make deposits from business income and pay your expenses through the account and in just a few months you will have a strong bank score.
Like starting out with personal credit, a new business has no credit history to prove its worthiness and make it easier to open credit card accounts or apply for small business startup loans. The best way to start out is with vendor credit accounts. These are similar to credit cards except they are dedicated to specific stores and the entire balance is due at the end of the payment cycle rather than paying in installments. Opening this can give you extra money through the month and also give you a big head start in building corporate credit.
Business Credit Asset