Can I/How do I acquire business lines of credit for my Sole Proprietorship even if my personal credit is bad?
August 13, 2009 
7 Comments
There are methods but they involve one incorporating, getting a basic bank account in corporation name, get listed with Dunn and Bradstreet and expenses to achieve the above. If you have the capital, you can purchase an existing corp that is considered seasoned which means it has been in existence for at least two years and jump start the process and depending how much you have available now you may be able to purchase an existing corp with a D&B rating already in place as well as bank accounts and credit if you need more info write me bilone44@yahoo.com and Good Luck
You can’t.
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You can’t get lines of credit if your credit is bad. I understand your question, but it’s common sense that it can’t be done. Pay off the necessary debts, as stated on your credit report, and your credit will get to the point where credit cards are automatically coming in the mail to you, without you even requesting them.
You’re in a no-win situation, and I have been there myself, so I hate to pass along bad news. When your credit is bad, you’re pretty much out of options. Gotta pay off your debts first.
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There are methods but they involve one incorporating, getting a basic bank account in corporation name, get listed with Dunn and Bradstreet and expenses to achieve the above. If you have the capital, you can purchase an existing corp that is considered seasoned which means it has been in existence for at least two years and jump start the process and depending how much you have available now you may be able to purchase an existing corp with a D&B rating already in place as well as bank accounts and credit if you need more info write me bilone44@yahoo.com and Good Luck
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Open a savings account with a card company that will issue credit against your savings deposit. Its called secured credit.
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If your business is a sole proprietorship and you have bad
personal credit, you will find it very difficult, if not impossible
to obtain credit.
The only way the one might establish credit for a business
is to Incorporate, but even then your Corporation would need
to have a great deal of assets associated with it because
the lender would be looking at your income as well as
the Corporate assets.
Basically you are pretty much S.O.L until you can improve
your own personal credit.
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Sorry, but you probably can’t.
Business loans, especially small business loans are the riskiest of all loans. The business owner often has to personally guarantee payment of the loan, often by pledging their home as collateral. I have 2 friends who did exactly that and wound up losing their homes when the business failed.
Since you have bad personal credit it’s highly unlikely that the bank will accept you as guarantor for the loan. Unless you have a guarantor with good credit there’s little chance of getting a loan from a bank.
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I would echo some of the other sentiments, as a sole prop the bank will primarily look just at your personal credit history for a decision on repayment ability. Look at incorporating your company, it is fairly easy, cheap and will protect you in the long run. It may also help get access to credit on improved terms
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work at bank