Many times, it can be difficult for a small business to establish business credit. However, it is not impossible. WIth an employer identification number (EIN), business checking account and required business licenses for your industry, your small business can establish credit without the need for a personal guarantee in no time. Read more to learn how.
Instructions
1. Cover the basics. Be sure you have obtained an employer identification number (EIN), business checking account, required business license and permits and registrations and business phone and fax numbers published in a local directory.
2. Choose a creditor. Select a credit card company where you wish to establish a business account. Fax the credit application, along with your business phone bill, to the credit card company. Include your EIN. Request the standard business credit line of $750.00 or choose an option to build credit worthiness under a new business plan. Negotiate a plan that offers cash-back incentives and rewards.
3. Apply for a business credit card with Fedex/Kinkos, Dell Computers, Office Max, Office Depot or Staples. As a registered business entity, you are not required to provide a personal guarantee. However, you must provide licensing records, business phone and address information, invoicing documents and official letterhead.
4. Open a business checking account. Apply for a business credit card at your local bank. Provide a phone bill or other invoicing record, account records to document transaction and balance history and all licensing records along with the application. Request a credit card above the standard line of credit. Explain the structure of the business, outline projected earnings and profit margin and provide the estimated value of the company. Narrow the margin of risk by documenting key areas of stability or growth within the company. Use financial figures, not just projections.
