How To Build Business Credit With Bad Personal Credit
Are you a business owner with bad personal credit?
Not sure how to go about building credit for your company?
If you want to know how to build business credit with bad personal credit then you’ve come to the right place.
In this post I’m going to share with you what steps you should take to start establishing the creditworthiness of your business while at the same time work on repairing your personal credit ratings.
What you should not do is simply focus on building business credit while ignoring your own personal credit ratings. Both your business and personal credit play a vital role in all aspects of your life.
More importantly, by improving your personal FICO ® Scores you can put yourself in a position to qualify for our unsecured business credit cards that report only to your business credit reports.
So I strongly recommend that you start a personal credit recovery plan while you’re in the process of building your business credit.
So what kind of credit can you get for your business with bad personal credit?
During the initial stages of the business credit building process one of the types of credit that your company can acquire that does not factor in your personal credit ratings is vendor credit also known as trade credit.
While trade credit will build business credit plus help you conserve your company’s cash flow, it only shows your business can handle one type of financing known as short term financing.
Another form of credit that you should acquire is revolving credit in the form of a business credit card. However, with bad credit you would need to start with a secured business credit card that reports to the business credit agencies.
Secured fleet cards are also another form of credit you can acquire with bad personal credit and usually
requires a very small deposit to get started.
There are also other funding programs such as revenue based financing that enable you to acquire a loan even with bad personal credit.
It’s important to remember, the key to building a creditworthy business is in utilizing a proper blend of credit types such as short term financing, revolving credit, installment loans, leasing, etc.
As you can see, you can clearly build business credit with bad personal credit with financing sources such as trade credit. secured business credit cards, secured fleet cards and other funding programs that rely more upon the strength of the business itself rather than your personal credit.
Now that you know how to build business credit with bad personal credit. the next step is to start putting what you learn into action.
Ready to start building business credit while repairing your personal credit? Become a member of my Business Credit Insiders Circle and gain access to a proven step-by-step business credit building system. A system that provides you access to vendor credit, fleet cards, secured and unsecured business credit cards, funding sources and lenders that report to all the major business credit bureaus. Submit your name and email below for details and receive a free business credit building audio seminar ($597 value) =>
To Your Success In Business and in Life!
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About the author
Marco Carbajo is a business credit expert, author, speaker, and founder of the Business Credit Insiders Circle. He is a business credit blogger for Dun and Bradstreet Credibility Corp, the SBA.gov Community, All Business.com and About.com .His articles and blog; Business Credit Blogger.com, have been featured in ‘American Express Small Business’, ‘Business Week’, ‘The Washington Post’, ‘The San Francisco Tribune’,‘Alltop’, and ‘Entrepreneur Connect’. Source: www.businesscreditblogger.com