Building Corporate Credit

Can you really build corporate credit with no personal guarantee?

Yes, but it is sort of like building muscle you start out small and must keep working at it to build it bigger and bigger. Just as in becoming Mr Olympia you don’t start at the top it’s a lot of hard hours in the gym before ever getting close to becoming Mr. Olympia.

Building corporate credit is much the same. You can do it yourself, there are many books, ebooks and information out there so that you can learn what you need to do. It just needs to be done in a very systematic way, there steps you have to take need to be in a certain order.

Also, there are many companies out there who will assist you in building the credit making sure that you take all the steps in order. You may start with a new corporation or a shelf corporation depending on your goals. A shelf corporation older than a couple years is probably just a waste of money, you will pay a much higher premium for little benefit.

It will help in building corporate credit if you have a corporation 2 years old because it shows up as the corporation being around longer giving the impression as greater stability. When you get over 2 years the creditors may wonder what you did for the last 5 years when you have no history.

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