These days, small business owners are looking for more funding and financial solutions than just the traditional bank loans or SBA loans. The internet has paved the way for everything from crowdfunding / P2P funding to online small business credit lines. If your company is new, you likely haven’t established any business credit yet – unless you’ve had businesses in the past.
If you want to go ahead and check, keep in mind that the bureaus don’t give out free access to business credit reports like they do with the personal reports. For a fee, you can obtain a copy of your business credit reports from Equifax, Experian, and Dun & Bradstreet.
If you ARE new to running a business then you likely don’t have any business reports, so potential credit lenders will check your personal credit. Hopefully, you have a high score on your personal credit reports, as it will help you with your chances of getting approved. Work very hard to keep your company’s finances in good order so that you can begin the process of establishing business credit.
It helps to have a legal business name, either by incorporating the company or forming an LLC. Start a bank account with the legal business name and keep it separate from your personal account. If you want to begin the process of establishing your small business credit, register with Dun & Bradstreet to obtain a D-U-N-S number.
Small Business Credit With Personal Finances
If you’re having trouble getting the business funding you need, then hopefully your personal credit is good enough that you can get either a personal business loan or a credit card with a high enough limit that you’ll be able to purchase business expenses with it. Even if you do end up with a personal credit, you’ll still want to transfer it to your business account.
You really should consult with your financial advisor, if you have one, to help you determine the best course of action. Take the time to do your research to make sure you follow all of the right steps.
As time goes on and your company grows and you’re starting to establish business credit, you’ll likely find that additional funding is needed to help you grow and expand. Maybe you’ll need funding to purchase more inventory, or to finance some equipment. Whatever the case may be, make sure you get all of your documents in order and look into further funding solutions.
One way to get small business credit is to look into the products offered by US Business Funding. This organization offers a variety of funding solutions for business of all sizes, and the process is fast and easy.