How to Build Corporate Credit Through Separate Divisions

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Building corporate credit through separate divisions involves breaking the company into sections to avoid cross-liability between branches, so each division builds its own good credit within the company. Build up credit for different areas of a company 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 separate credit for separate divisions of your company meaning, let's say division one is in the housing business, and division B is in the banking business. Really, you don't want to have cross liabilities between those two companies, or between those divisions of your companies. So what the logical way to do it is to create a...a holding company on top and actually have incorporated separate divisions. Those separate divisions would stand on their own, in terms of any credit report even happened, and then in the databases that track the amount of debt that each division has and the payment history, they would have their own, on a stand-alone basis, and there'd be no cross liability between the two. That's how you build credit for each individual group within your own company. I'm Roger Groh.


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