How to Apply for Business Credit

Small business presents special challenges to start up and maintain. It often takes a small business three to five years to generate a profit. Small businesses often stay in business during that time through loans and various types of business credit.

Difficulty: Easy

Instructions

1. Compose a strong business plan. This document outlines your business in detail, how it will function and succeed and what resources you'll need to maintain the business for the next five years. There are business plan professionals and software that can guide you through this process.

2. Detail which areas of your business need financial aid. You can take a general business loans or arrange financing for specific needs, such as equipment, insurance, overhead costs and rent. You may have a better chance getting one of these, as the competition will be smaller.

3. Talk to your vendors. Vendors and individual companies often offer credit accounts for their clients and may be willing to negotiate prices if you ask.

4. Consider leveraging if you're buying a small business with inventory. Some lenders will arrange financing with the inventory, receivables and equipment as collaterol.

5. Apply for a business credit card. Every major credit card company offers business cards that are structured differently than personal cards. They have higher limits, lower interest rates and often offer other protections that can keep your business on track.