How to Obtain Corporate Credit without Personal Guarantees

You can build corporate credit yourself without paying exhorbant fees to a boiler business to build your corporate.

Difficulty:

Easy

Instructions

Things You'll Need

• A legitimate incorporated business-preferrably C-corp
• A Federal EIN (not your SSN)
• A corporate business checking account - use free business checking
• A DUNS number at dnb.com - it is free to get one, do not let them try sell you a expensive package
• Three trade references - not credit lines, but business that you conduct business from your business, that is you pay for products and services using your business checking account.
• A good accounting program-Quickbooks has a free version (limited) that is not a timeout version and can get a free copy from your local SCORE office, check sba.gov for your local SCORE office

1. Complete the requirement list. When you incorporate, you do not need a lawyer as your Department of State has the forms and instructions necessary to do your self. You do not need all the elaborate forms -minutes, stock certificates, etc. You should get a corporate seal after you have receive your certificate of incorporation. But if you feel that you need assistance, then consider counsel experience with small business startup incorporation. When you incorporate, my opinion is to incorporate as a C-corp, as you have many more tax benefits and you are a separate entity. If you a S-corp, you defeat the purpose of establishing corporate credit without a personal guarantee.

2. Must complete the above requirements before filling out your first corporate credit card information. Typically business like to see you in business for a minimum of three years, even if you are not making a profit. So if you can wait for three years, you will get higher initial credit, but the creditors may still give your corporate credit with a lower limit. For example, I did not apply for corporate credit until I was incorporated for 3 years and my credit card was a Staples and Office Depot both with a $2000 limit (combined total of $4000). Where I have read other business who were in business for less than a year received an initial $500 credit line.

3. Gas credit cards are relative easy to obtain especially if you only choose the fuel cards and not the master card/visa sponsor. I received a Shell credit for an initial credit limit of $750. Another is Mobil. You can differentiate a gas credit card by the reference to Fleet, as the providers will typically card there cards as Fleet or Business Cards. You do not need a fleet of vehicles to apply and it is not a requirement.

4. You can easily get $100,000 of financing credit from First Premiere Capital and use when you need to lease equipment and not interested in obtaining ownership interest. This is useful when you obtain a fix term contract that requires you to provide equipment and do not want to go through the process of owning, At the end of the lease, Five Point takes the equipment. Plus leasing equipment is a tax write off for the corporation.

5. Monitor your Duns paydex score (which is the rating system for business) and about every 6 months, apply for a new credit card. Then you will be apply for Dell credit and eventually a bank loan for the business.

6. To recap, you should wait 3 years after incorporation before applying for corporate credit. The you should apply for Staples, Office Depot, Office Max, Shell and Mobil credit cards. Apply only for revolving accounts with the flex terms to pay monthly. Apply only for Net 30 accounts when you have the revenue to pay when the bill is due. The after for an additional card (Visa, Master card, AMEX) every 6 months, and then after two years apply for Dell credit and a Bank Loan.

Tips & Warnings

• Use penitence, persistence and common sense.

• Be careful about taking on credit as running up the balance that you cannot afford to pay, as if you acquire a corporate credit card and do not pay regular, the creditor can interpret that action as fraud and now becomes a criminal offense.