CREDITCARDS - BUSINESS
WELCOME TO "YOUR BUSINESS CREDIT CARD WEBSITE"!
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Financing with Business
Credit Cards
Credit Cards
You've heard the saying, "You've got to spend money to make
money!" This couldn't be more true, especially in business. If you
want to grow your business, you're going to need a source of funds
and access to cash flow - particularly when things are moving slowly.
At one time, owners of businesses had to get business credit
against the things that they owned personally and based on their
personal credit score. This is a major liability because if your
business doesn't make it, you could lose your personal assets, too!
Thankfully, there are now ways to obtain business credit that is not
just an extension of what you owe personally.
If you set the business up as an official entity- separate from
yourself, you can apply for various business funding, including loans
or credit cards. When a business is just starting out, it hasn't had the
opportunity to establish it's own credit rating yet and so lenders will
have to use your personal credit report to determine the level of
risk in lending to a business you own. What happens if your personal
credit score is not so good?
You can take some steps to increase your chances of getting a
business credit card (or some other form of business funding) by
doing the following:
Take steps to increase your personal score. Before you go any
further looking for business credit cards or other sources of
funding, do you know what your score is? Is your credit score below
640? If it is, it is recommended that you attempt to increase the score
first. Often, making all of your payments on time for 3 consecutive
months will pull your score up 2 to 4 points. Check with a financial
advisor for some ways of increasing your credit score as it will only
serve to help you personally as well as in business.
Create an LLC or Corporation. This type of business structure
automatically means the business is separate, and not just an
extension of you. If you are operating a business under your name,
and have not filed any official paperwork with the government or
with lawyers and accountants- your business finances are no
different than your personal finances.
Have a physical address. Believe it or not, using a PO Box can
hinder your ability to get a business credit card or loan! If you
operate out of your home, you might consider getting a business
mailbox from Mailboxes Etc, or UPS, as both offer a physical mailing
address rather than a PO Box. Having a business phone line also will
increase the way the business is looked at by lenders, and ensures
the business is reachable.
If you are still unable to obtain business credit cards or financing on
your first try, perhaps you know someone with a strong credit rating
who would be willing to co-sign an application for you. You may not
be able to have a business application for credit co-signed, but you
can as an individual. Get a credit card in your name and then use it
only for the business. Be sure to make the payments on time, and
keep the balance manageable. Over time, you'll build up your
personal credit score, which is seen as a boost for the business
validity- and eventually you'll be able to obtain funding and credit
cards under the business name.
Getting business credit cards and financing is a necessity that all
businesses will face from time to time. There is a need for cash flow
in order to grow and increase the business. With some careful
planning and preparation, most businesses will be approved for a
business credit card even if the owner has personal credit that is
slightly less-than-perfect.
money!" This couldn't be more true, especially in business. If you
want to grow your business, you're going to need a source of funds
and access to cash flow - particularly when things are moving slowly.
At one time, owners of businesses had to get business credit
against the things that they owned personally and based on their
personal credit score. This is a major liability because if your
business doesn't make it, you could lose your personal assets, too!
Thankfully, there are now ways to obtain business credit that is not
just an extension of what you owe personally.
If you set the business up as an official entity- separate from
yourself, you can apply for various business funding, including loans
or credit cards. When a business is just starting out, it hasn't had the
opportunity to establish it's own credit rating yet and so lenders will
have to use your personal credit report to determine the level of
risk in lending to a business you own. What happens if your personal
credit score is not so good?
You can take some steps to increase your chances of getting a
business credit card (or some other form of business funding) by
doing the following:
Take steps to increase your personal score. Before you go any
further looking for business credit cards or other sources of
funding, do you know what your score is? Is your credit score below
640? If it is, it is recommended that you attempt to increase the score
first. Often, making all of your payments on time for 3 consecutive
months will pull your score up 2 to 4 points. Check with a financial
advisor for some ways of increasing your credit score as it will only
serve to help you personally as well as in business.
Create an LLC or Corporation. This type of business structure
automatically means the business is separate, and not just an
extension of you. If you are operating a business under your name,
and have not filed any official paperwork with the government or
with lawyers and accountants- your business finances are no
different than your personal finances.
Have a physical address. Believe it or not, using a PO Box can
hinder your ability to get a business credit card or loan! If you
operate out of your home, you might consider getting a business
mailbox from Mailboxes Etc, or UPS, as both offer a physical mailing
address rather than a PO Box. Having a business phone line also will
increase the way the business is looked at by lenders, and ensures
the business is reachable.
If you are still unable to obtain business credit cards or financing on
your first try, perhaps you know someone with a strong credit rating
who would be willing to co-sign an application for you. You may not
be able to have a business application for credit co-signed, but you
can as an individual. Get a credit card in your name and then use it
only for the business. Be sure to make the payments on time, and
keep the balance manageable. Over time, you'll build up your
personal credit score, which is seen as a boost for the business
validity- and eventually you'll be able to obtain funding and credit
cards under the business name.
Getting business credit cards and financing is a necessity that all
businesses will face from time to time. There is a need for cash flow
in order to grow and increase the business. With some careful
planning and preparation, most businesses will be approved for a
business credit card even if the owner has personal credit that is
slightly less-than-perfect.