While every case will be different, there are several broad categories if things that must be done to get business lines of credit. I'll outline those categories here and go into detail in further posts.
You need a CFO with a 720+ FICO score.
You need to start or buy a corporation of LLC. You save a little bit of time if you buy but not as much as you could two years ago.
You need to acquire and use several small sources of business credit (credit cards, merchant accounts, etc.) and use them. In this step, you can acquire $50k - $300k in various small lines of credit (cash and trade credit).
You must show activity in the corporations bank accounts.
Once the corporation is 2 years old, showing activity and using your current business credit to raise your Paydex score to 80, you can start looking for the larger business lines of credit.
Check out the different Business Credit Programs I've found.
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For business lines of credit, the key position seems to be the CFO. All of the lenders look at the CFO and the CFO has to sign for any credit (though after 18-24 months the CFO can usually be taken off). I've been exploring methods of obtaining business credit for 1 year now. Until recently, I've run into nothing but roadblocks and scams. Fortunately, I haven't been taken in by any of the scams. Other's I know have not been so fortunate. I will attempt to answer any questions you have about business credit. This site records my journey into the realm of corporate credit and business lines of credit. |
Jeff Miller
I have a degree in Economics and an MBA. I worked for a private money lender for 13 years and was a real estate investor for 4 years. Categories
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March 2009
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