http://www.agedcorporationsecrets.com/shelf-corporation/how-does-a-new-corporation-get-credit Information on Shelf Corporations, Aged Corporations and Business Credit Lines Thu, 07 Apr 2011 18:55:59 +0000 hourly 1 http://wordpress.org/?v=3.3.1 http://www.agedcorporationsecrets.com/shelf-corporation/how-does-a-new-corporation-get-credit/comment-page-1#comment-199 templeamd Thu, 01 Oct 2009 01:41:59 +0000 http://www.agedcorporationsecrets.com/shelf-corporation/how-does-a-new-corporation-get-credit#comment-199 It's hard to start accumulating credit immediately. Other than using your own personal credit rating you have to establish a line of business...For example, Some companies will require some trade information with companies that you currently work with if you do not have any bank credit. If this is a start up and you do not have any credit you can have a bank verify your line of credit with your first customer (you can also offer lower Net payment terms to prove reliability; e.g. Net 7). I know many my companies clients have been start up and while they were not LLC's, sole propietorships, some will look at your personal credit to see if you are reliable.<br><b>References : </b><br> It’s hard to start accumulating credit immediately. Other than using your own personal credit rating you have to establish a line of business…For example, Some companies will require some trade information with companies that you currently work with if you do not have any bank credit. If this is a start up and you do not have any credit you can have a bank verify your line of credit with your first customer (you can also offer lower Net payment terms to prove reliability; e.g. Net 7). I know many my companies clients have been start up and while they were not LLC’s, sole propietorships, some will look at your personal credit to see if you are reliable.
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]]> http://www.agedcorporationsecrets.com/shelf-corporation/how-does-a-new-corporation-get-credit/comment-page-1#comment-198 Cara D Thu, 01 Oct 2009 01:02:59 +0000 http://www.agedcorporationsecrets.com/shelf-corporation/how-does-a-new-corporation-get-credit#comment-198 It's very difficult for a new company to get credit without a personal guarantor; there is no track record to assure the bank that the business is viable, when an owner/officer puts their personal guarantee on the deal, they are showing the bank that they are serious about making this company successful, and assume full responsibility for its performance. If the company does well for a year or two, many banks will be willing to drop the personal guarantee.<br><b>References : </b><br> It’s very difficult for a new company to get credit without a personal guarantor; there is no track record to assure the bank that the business is viable, when an owner/officer puts their personal guarantee on the deal, they are showing the bank that they are serious about making this company successful, and assume full responsibility for its performance. If the company does well for a year or two, many banks will be willing to drop the personal guarantee.
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]]> http://www.agedcorporationsecrets.com/shelf-corporation/how-does-a-new-corporation-get-credit/comment-page-1#comment-197 DeeDee Thu, 01 Oct 2009 00:39:59 +0000 http://www.agedcorporationsecrets.com/shelf-corporation/how-does-a-new-corporation-get-credit#comment-197 Whether you are starting a new business or buying an existing one, your personal credit worthiness will be taken into consideration for up to 5 years. Even if you have purchased someone else's business, you have to prove you aren't going to run the business into the ground. Try to find a private lender (not a "loan shark") that may take other things into consideration like your previous work experience etc. Good Luck...<br><b>References : </b><br> Whether you are starting a new business or buying an existing one, your personal credit worthiness will be taken into consideration for up to 5 years. Even if you have purchased someone else’s business, you have to prove you aren’t going to run the business into the ground. Try to find a private lender (not a "loan shark") that may take other things into consideration like your previous work experience etc. Good Luck…
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