Building Corporate Credit

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Building corporate credit requires getting a credit card in the company's name, borrowing a small amount of money and paying that money back in a timely manner. Build up good credit for a company, even asking the government for help, with information from a financial manager and currency trader in this free video on finance.

Part of the Video Series: Credit Information & Tips
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Video Transcript

I'm Roger Groh. We're here today to talk about how to build corporate credit for your own company. Well, think small first, like yourself. Go out and get a credit card for 500 dollars or 200 dollars, and use part of that money and then be sure and make the monthly payments on time. When you do that, be sure that your company's name is properly signed up with the credit card reporting companies because when it comes time to really borrow money, the bank will go and access that data and it'll show that you made your payments on time. That'll make the bank feel a lot more comfortable. The other way to do it is to ask the government for help, meaning where you've gone and borrowed money through a government loan program designed for businesses in your industry. Now, let's say that you're in the housing business or let's say you're in the automobile business, well, there are plenty of credits available in today's environment -- today's environment where it's so difficult to borrow money -- where they will give you money to begin to develop product in those areas. Now, you know, there's no guarantee in that, but once you've gotten the money and you've made those payments on time, it'll show up in the databases, and the next time that you need to access traditional bank financing, you'll have'll have a history of proper payments. You'll receive a lower rate on money that you borrow in the future, and that is how you build corporate credit history. I'm Roger Groh.


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