Fast Steps to Secure Business Credit for a New Business!

1. Incorporate your business. Do not operating as a sole proprietorship to keep things simple just because your CPA said you do not make enough profits to save taxes. The longer you operate as a sole proprietorship the more you are self financing your business and increasing your revolving debt! That will shoot you in the foot when you look to bank financing.

2. You must separate your personal and business credit. The key is minimize personal guarantees on vendor credit. You will have a personal guarantee on cash lines of credit in the name of your entity but the debt will not show up in your personal credit bureaus.

3. Build your D & B profile. NOT YOURSELF! There are too many ways to “red flag” your file if you are not in compliance. Example, must new business owners are not in compliance with their local business license department. A business credit builder program that is guaranteed is the best approach.

4. You must have a budget for both the business and for you personally. This will help you manage your business and stop robbing profits from your business to over compensate for your lack of a personal budget!

5. Master the best ways to increase your personal credit score which will help with your business credit lines. Learning how to manipulate your revolving debt personally will cause your credit score to increase the most. How?

Keep your revolving debt from 5-20% on all personal credit cards! You may not be there yet but that should be the goal. Exception: You are not planning to finance anything or secure more cash for your business. The plan at this point is to build up your personal emergency cash fund first. You want to be in a position to pay down your revolving debt 3-4 months before you need your credit score to spike!