Let It Flow---Importance of Establishing Lines of Credit For Your Business

Having the access to the capital resources you need to start or grow your business is critical for business success. One of the funding strategies I recommend for every business is to establish your business credit platform so that you have ongoing access to business lines of credit. Your business is a separate entity and can (as well as should be) totally disassociated from your own personal credit. That means it’s not necessary to use your social security number to access business financing but people often do so, not understanding the alternative.

So, regardless of your personal credit situation, there is a specific process you can follow that will walk you into potentially hundreds of thousands of dollars in lines of credit that you may use to grow your business. I you want to start the process right now to access up to $100K, go to http://businesscreditspot.com and you’ll start seeing results within days.

Here are facts you should know and ways to get started in establishing your own business credit:

1. Regardless of what you’ve heard, “business credit” has not gone away for businesses. While the guidelines for individual financing may seem to be more stringent, there are still plenty of financial resources for businesses if you know where to look. The stimulus money authorized by Obama’s administration is still available using this process.

2. Best time to start is now. The more time you have to “germinate” the process, the more success you will have so start it as soon as you incorporate or when you don’t even need the money. It will always be there for you.

3. The process is easy to follow IF you know the process. Years ago I attempted to do this process on my own and unbeknownst to me, made several simple reporting errors that caused me to get denied a couple of times. Either spend a bit of time educating yourself on the entire process OR simply work with someone who knows the exact next steps.

4. Your business credit is built on a Paydex score, not a FICO score. In business credit we use a Tax ID number to apply for a DUNS number which starts the reporting process, NOT your Social Security number. It’s a totally different reporting system but if you haven’t started the process, there won’t be anything for the lending institutions to look at. A perfect Paydex score is 100.

5. Start with trade lines who report your DUNS number. Best way to ensure success is to start with a few small trade lines of credit that you know report your credit status thus naturally building your Paydex score. This takes just a few days to complete. At BusinessCreditSpot.com, we share no less than 10 resources for you to quickly establish credit trade lines.

6. Establish several unsecured lines of credit starting at $5000-$10,000. From trade lines you’ll quickly move into credit lines and now the money is flowing. It will be much easier to quickly step into larger lines of credit from there.

7. This is not “expensive” money. Business lines of credit generally have very low interest rates, generous terms and do not require you giving away equity in your company. Also, they are unsecured and uncollateralized for the most part which means you’re not required to put any of your tangible assets into the mix.

8. Having a solid business credit platform will help you attract more lucrative resources. Being able to show a positive credit status may help you attract SBA funding, private investors, larger contracts and strategic alliance partners.