How to Use Credit to Start a Business

Using credit to start a business is a clever but sometimes risky way of getting the business off the ground. Knowing how to navigate the choppy waters of credit reporting, however, makes the process a lot more sound and reliable.

Instructions

Difficulty: Moderately Challenging

1. Clear up your personal credit report as thoroughly as you can by disputing marks against your credit report one by one. Fight issues that gave you bad credit by going to the companies who filed the report against you and disputing with letters and requests to clear up the lingering credit issues.
2. Establish your business as an LLC (limited liability corporation) type company so you can keep your business credit separate from your personal credit.
3. Register your business with the credit bureaus. Then research and fulfill the credit market requirements such as registering your business with proper local and state authorities, having a stable business address, having a phone line and a number of other relatively simple things.
4. Apply for credit cards for the business that don't require personal credit checks. Use the credit cards for business needs but pay off portions of the debt in accordance with a well thought out debt management plan.
5. Turn to a specialized small business credit company such as American Express Small Business Service to get information and assistance for boostrapping your business with credit.