Business Credit: Phoenix Small Business Investing Tips
Establish Business Credit
Establish Business CreditWhile Phoenix small business funding experts know that many small business owners do not want to wait years to apply for a loan, they recommend building business credit if a business owner has bad personal credit. The process can take a few years but Phoenix small business investing professionals highly suggest it because you may be able to quality for a better, low interest loan in the future. This is simple because if established correctly your business credit will be in no way tied to your personal credit, which means that when you go in to apply for a loan your personal credit will not be checked.
I. Formalize Your Business
Start by formalizing your business. This will immediately establish that it is seperate from your personal finances. LLCs and sub chapter S corporations are too formal types of business, for example.
II. Business Checking Account
Next, Phoenix small business investing officials state that you will need to start a business checking account that is under the formal name of your company. Make all business transactions through this account, and avoid using your personal accounts for business purposes.
III. Business Phone Line
You should also set up a business phone line under the formal name of your business. Contact phone companies to ensure that they report payment history and other information to the credit bureaus. This is important. If a company does not do this, you should move on and find a company that does.
IV. Trade or Vender Credit
Phoenix small business investing experts suggest setting up vendor credit. Vendor credit is when you acquire business supplies, equipment, and more from a vendor, and they finance you the supplies to you. You pay the vendor back over time and can keep an open line of credit with some vendors, where if you are making your payments on time you can continue to get more supplies. Small business funding authorities say it's important to find vendors who do not require the use of any personal information that is tied to your personal finances and credit, like your social security number, for example. Everything should be done using business information and finances only.
V. Business Credit Cards
Lastly, you will need a few business credit cards. Again, they should be under the formal business name and you should always pay them off on time. Just as with vendor credit, you need to make sure that the cards are in no one tied to your personal credit. And just as with the phone line, you must make sure that the credit card companies report your payment history to the credit bureaus.
Business Credit: Phoenix Small Business Investing Tips
By: Lexe Charleston Cash Loans Same Day: Fill your pockets to meet urgencies Outsourcing To India - The Business Advantage Cash Supply Loans- Receive Urgently Required Cash Seo The Best Way To Promote Your Business Online Urgent Cash Loans Fulfil The Instant Requirement Without Delay Trouble Spots You Should Focus On In Corporate Brochures Online Cash Advance Loans Can Help You Out Filing For Bankruptcy In Texas Cash Loans In An Hour: Easily Made Available Convenient And Easy Funds What Are The Advantages and Disadvantages of an Easy Cash Advance? Small Business Coaching - 3 Reasons Not To Use One When You're In A Tight Spot Consider A No Credit Cash Advance Where To Find Cash Advance Lenders