There are several important factors that will determine if your business will be able to secure both cash and vendor lines of business credit. As you know, it is very important to separate your personal credit from your business credit. Step one is to form a separate legal entity. You do not want to be operating as a sole proprietorship.
When it comes to the ability of your LLC or corporation to secure access to CASH lines of credit there are many of the important factors.
- Length of time in business.
- Gross revenues and profit margins.
- Average monthly credit card sales with VISA/MasterCard.
- Risk category of your business.
- Your personal credit score.
- Your personal revolving debt levels.
- Any personal derogatory like a BK or foreclosure (or too many late payments).
- The amount of Cash lines you need for your business.
Let’s be honest. If your personal credit score is 550, and you have a foreclosure on your personal record and a brand new business with no revenues, you are getting $0.00 from the banks. If you are in this position and someone tells you they have a program where they will get you $30,000 of cash lines and a new credit card within two weeks and it has nothing to do with your investments as collateral it is not happening. There are many companies out there that are over promising. What you will get is disappointment.
No matter where you are at personally or with your business, the key is to understand where you need to be one year from now and how you will get there. Our company can help you do that.
About The Author: Scott Letourneau is the CEO of Fast Business Credit, Inc. When it comes to securing cash and vendor lines of credit and avoiding costly mistakes his company is the authority. For further assistance regarding the development of business credit go to http://www.FastBusinessCredit.com or call FBC at 1-888-313-6333 or 702-977-5246.