What is the best way to build corporate credit?
August 14, 2009 
3 Comments
It seems like it is becoming more and more improtant to build company/corporate credit. There are supposedly many ways to do this after incorporating or becoming an LLC, while not using your personal social security number… only your federal tax id number (business #).
Dunn and Bradstreet is the most widely accepted provider of corporate credit worthiness reports. Signup for your DNB# and submit corporate earning reports and P&Ls.
Dunn and Bradstreet is the most widely accepted provider of corporate credit worthiness reports. Signup for your DNB# and submit corporate earning reports and P&Ls.
References :
http://www.dnb.com/us/
The problem is, I can’t even think of an un-secured lender that will issue credit on a ‘non-recourse’ basis. This means that they won’t issue a corporate card without a personal guarantee. Commercial lenders ( like my firm ) that do real-estate, equipment leasing, A/R financing, they can issue loans on a non-recourse basis but if you think that your going to get an Amex or a Chase corporate card that way it just aint gonna happen……
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Worked as a commercial credit officer for Chase & now own my own commercial lending brokerage. http://www.tibcap.com
All small business has the same problem, and that is that when obtaining credit for the business the owner or owners generally have to guarantee the account. Understand that the debt is the companies debt, not the guarantor, and should not be reported on that individuals credit report; however, some banks do so. After a long period of doing this, and establishing good relationships with creditors and having an excellent payment history, you can get some creditors to loan directly to the business. The bigger the business becomes the easier it is for this to happen. It took about nine years for my business to borrow on it’s tax ID number alone, and it was only on collateralized loans. Good Luck
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