Re: corperate credite

Posted by Scott W.'s Friend (67.33.122.109) on June 05, 2003 at 13:08:57:

In Reply to: corperate credite posted by Small biz owner on June 05, 2003 at 06:15:49:

Actually,
You incorporate then wait. Without two years of tax returns on the business you will have to personally gurantee everything but even if you just get personal loans it is very difficult because noone considers you as having a job until you can produce two years of tax returns on the business.
I'm a small business owner too with people employed under me and in office space and it's very tough to get loans or refinance because we don't have two years of tax returns.
What we have done to attempt to get corporate credit is we listed with Dun & Bradstreet. It is the credit reporting agency for business's.
It helps a little but not much. This is probably the reason most business's fold in the first year because it is impossible to get corporate credit for start up capital.
We are going to try a smaller local bank because I have been told a small bank is a lot friendlier and easier to get loans approved. The only problem that we are running into is they don't have the technology of bigger banks. Our business takes checks over the phone and our current bank has no problem cashing those checks but the smaller local banks don't even know what checks over the phone are and can't cash them. So it's a battle really but you just have to stick with it and make sure you keep your credit A1 so that you can least sign as a gurantor.

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