Things You'll Need:
- Financial statements
- Tax returns
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Step 1
Collect all of your business and personal financial documents. These include business and personal tax returns, statements of profit and loss and your business's annual income.
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Step 2
Determine how much business credit your business needs. You may not qualify for the full amount, depending on qualification criteria.
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Step 3
Check your personal and business credit reports for any errors. If you see any discrepancies, resolve them prior to applying for your guaranteed business line of credit.
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Step 4
Open credit accounts with any suppliers that report your information to the business credit bureaus. Consider opening credit lines with Office Depot, Target or Staples (making sure that they report your information). Use the business credit each month, then pay off the balance well before it's due.
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Step 5
Write a business plan that includes a description of your business, your mission and goals, and how you intend to use your line of credit. Visit the Small Business Administration (see Resources) for help on writing your plan.
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Step 6
Apply with your bank for a guaranteed business line of credit if you have been in business for at least two years. The application (which may be done online) requests information about your business and the owners, as well as business and personal financial information. The bank reviews your application and an underwriter draws up the terms (if approved), including necessary collateral. Your bank should contact you within five days up to a couple of weeks. If your business is less than two years old, consider applying with the SBA for a guaranteed business credit line.
