Business credit

Business credit

Meetul Shah

May 20th, 2014

What's the best way to establish business credit? We could always take credit card from our bank but i think there are better alternative outside ie- american express. If we take Amex would it establish credit for the business, where it could assist us in getting line of credit in future from our bank?

Emmanuel Eichler Web Operations Coordinator at the Alzheimer Society of Canada

May 20th, 2014

Actually all you have to do is apply for a D&B number and you'll automatically get business credit. You can pay to rush the application or don't and it'll take a month or so.

Lawrence Bracco President/COO GD Entertainment & Technology, Inc.

May 25th, 2014

If you are careful, and do you homework, you can also "lease" trade accounts that will help improve your business credit.     

Alasdair Clements Co-Founder, GoCAR GPS-Guided Tours

May 28th, 2014

AMEX merchant financing will loan your C-Corp or LLC,  25% of your 12 months historical AMEX CC receivables with no personal guarantee. Its only 6% simple interest. Payments are made at 30% of future batches.  But you need operating history with them.

It should build a credit rating on your FEIN

Square just launched similar product

Meetul Shah

May 20th, 2014

Essentially if I have Amex business card and I have a good credit with them. If I want to borrow LOC from well fargo they would use my credit history from Amex to assess my credit worthiness?

Thanks 
Meetul

Send using my phone


Tony Daou Entrepreneur, Purchasing Professional, Engineer and Leader with Supply Chain, Manufacturing and Process Eng. experience

May 20th, 2014

I just went through this process with Wells Fargo and Capital One Banks.  Establishing credit for my business was pretty easy since the business is something other than a sole proprietorship; i.e. LLC.  I say this because LLCs and corporations are entities and can earn a credit rating.  Whereas the sole proprietorship is not an entity so the owner's credit is used to establish and subsequently can be affected by cash and credit management practices within the business. 

My LLC simply applied for credit directly with creditors based on its projected revenue and my personal credit behavior.  Once the business proves itself with its creditors, its "rating" will improve giving way to greater financing options and services.

Hope this helps,

tonyd