Guidelines for Building Business Credit without Personal Credit

Nowadays, one of the most common endeavors taken by both small and medium business is building business credit without personal credit or guarantee.  Many businesses have come to realize that it is much better to separate their personal credit from their business credit.  On the other hand, there are still some business owners that do not know the dangers of having a common credit account for their personal and business uses.  More often than not, having the same credit account for personal and business uses can limit the funding amount, which a company is supposed to obtain.  Thus, it is important to know some guidelines on building business credit without personal credit or guarantee. 

Some of the steps involved in the process of obtaining business credit without personal guarantee include the following:

• Getting listed with various bureaus that caters to the industry of the business
• Setting up a bank account prior to choosing a financial credit company
• Listing the financial products that the business may need.
• Establishing necessary bank rating
• Obtaining business credit cards that are secured
• Opening a line of credit or applying for a small business loan
• Building a strong profile through having different types of account such as revolving credit, trade lines, and leases
• Establishing a thorough business plan
• Maintaining a clean financial record
• Maintaining a personal credit score of at least 680
• Establishing huge trade lines with multiple levels to increase credit limit after 6 months
• Staying informed on the different offers of financial credit companies through joining memberships, forums, and blogs.

For businesses that still do not know the benefits of building business credit without personal credit or guarantee, here are some of the advantages:

• Allows a borrower to obtain funding to cover expenses of a start-up business or grow an ongoing business
• Provides open lines of cash credit in order to carry out business
• Provides leases for necessary vehicles and equipment without affecting personal credit
• Allows a borrower to obtain up to $50,000 business credit line and credit cards including additional programs reaching to $5 million

Building a business does not take long to achieve.   In fact, it would not take a borrower 4 or 5 years just to build business credit.  If a borrower decides to make use of a professional business credit building service, it would only take 30 to 90 days to establish a business credit.  A borrower can also acquire an aged company or a shelf corporation, which already have pre-established credit lines.  This means that a borrower can already start obtaining business credit lines as soon as possible.

Some of the benefits of using a business credit building service or acquiring an aged company or a shelf corporation include the following:

• Allows a borrower to own a company that already has a corporate history
• Allows easier means to obtain business credit cards as well as credit lines
• Enables a borrower to seek business funding from banks

As you can see there are many benefits to building credit for your business. But to get credit on the businesses own behalf, there are certain steps you will need to take, as described above. Whether you use a service or not, remember that every little thing you do to help build the credit for your business adds up over time and makes your business look more credit worthy.