How to Get Business Credit for Women Business Owners
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Business Credit Without A Personal GuaranteeBusiness credit without personal guarantee, is that possible? Of course it is. Actually that is how it should be done. So where do you start? Business credit without personal guarantee begins with a step by step process that must be followed in order to achieve success. The first step is forming a corporation or LLC. Next is totally separating your personal finances and credit from your business finances and credit. To do this you must get an EIN (Employer ID Number) that is like a social security number for your business. Then you will need to open a business bank account in the exact business legal name as it appears on your corporate paperwork. Once those things are done you are ready to begin to get your business credit without a personal guarantee. The place where you start that is with trade suppliers like your local print shop or office supply. Many of these will give your business a small line of credit and payments terms, but make sure first that they will report how your business pays to the credit bureaus. If not, you are wasting your time. You will need five such accounts. Then make sure your business is listed with all 3 business credit agencies (EquiFax, Dun & Bradstreet and Experian). Once this is done you are ready to search for business credit cards and you will need three. Again make sure the business credit cards are based on your business and not just tied to your personal credit. Then verify that all three cards report your payment history. You should be able to obtain the trade supplier accounts and the three business credit cards without a personal guarantee. Once you do you will have successfully separated your business credit from you personally. Be advised that not all lenders will even consider your business for a loan without a personal guarantee. So the best thing to do before you apply is simply to ask! More articles on Business Credit
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