How to Finance a Small Business With Ease

Thinking of financing your small business? Need tips? Why not read this article and avail yourself to some basic guidelines & principles that will help you carry out the complete with ease! Believe it or not, financing is one of the most intimidating and challenging tasks to carry out when it comes to escalating your…

Thinking of financing your small business? Need tips? Why not read this article and avail yourself to some basic guidelines & principles that will help you carry out the complete with ease!

Believe it or not, financing is one of the most intimidating and challenging tasks to carry out when it comes to escalating your business!

Whenever you start a new business, it is important that you put together a few strategies that can help you secure the financial assistance, which plays a great part when it comes to running your business successfully. Once you find the right lender or investor to help you get your funds approved, you must identify your business needs and find the right solutions in order to take your business to the next phase.

A few steps that need to be done when it comes to financing your start-up business.

Step # 1: Personal Savings

Personal savings play a great part when it comes to starting a new business. It is important that you put in your personal contribution first and then move on to the next big step, ie 'taking loan from a bank' or 'lending money from lenders or investors'. If in case you're not willing to put in your own money first because of your financial condition or whatever the reason is, you must take advice from your family members, friends or office collections in order to find an ideal finance solution to deal with all your needs.

Step # 2: Identify all your needs

If you're about to finance your start-up company, the first thing you must do is identify all your essential needs and make the necessary strategies to fulfill all those requirements. Also, you must think about sustaining your business in terms of both supplies and equipment.

Step # 3: Explore your options

When it comes to finding a right source for borrowing money, there are plenty of options to choose from which include commercial banks, credit unions, commercial finance companies, and more. Also, you can approach different business capital firms or make partnerships in order to finance your business effectively. No matter what choice you make, it is important that you learn as much as you can about the basic steps that are involved in the process of taking loan from a government / private firm or a person.

Step # 4: Create a business plan and then execute it meticulously

Once you've carried out all the above written steps, then comes the turn to create an effective business plan. This includes understanding your intentions on how to finance your business, how to expand it, determine what exactly you want to achieve through your trade, how to meet the specific goals, determine the financial objectives, and much more.

The Various Types of Loans Offered by The Small Business Administration

The Small Business Administration or SBA provides financial financial support to the small businesses and entrepreneurs with the objective to contribute to their growth and development in the best possible way. If you do not get qualified for the loans offered by the banks, it is advisable that you should acquire the loans that are…

The Small Business Administration or SBA provides financial financial support to the small businesses and entrepreneurs with the objective to contribute to their growth and development in the best possible way. If you do not get qualified for the loans offered by the banks, it is advisable that you should acquire the loans that are designed by the SBA. However, it is vital to remember that this organization does not offer money directly to the small businesses, but it guarantees that these funds may be paid right on time to the particular lenders even when they fail to repay the money within the scheduled period of time. This article will highlight on different types of SBA loans that are available for small businesses.

SBA 7 (A)

It is vital to remember that SBA 7 (A) is developed by this organization with the goal to fulfill multiple purposes such as purchase of furniture, fixture, equipment, machinery and other important devices. If you wish to refinance your debt or if you want a lot of money as your working capital, it is advisable that you should make use of this type of fund. In case fixed asset, its maturity is fixed up to ten years and it is available to the borrowers through a particular lender.

Microloan

If you wish to purchase money quickly it is advisable that you should avail this type of fund as quickly as possible. It is used to purchase inventory, machinery, furniture, supplies and other important items, but it can not be used to buy any type of real estate property or it is not used to repay your current debt. This type of fund is available to an intermediary lender who actually works as non-profit organization associated with the task to lend money and to offer technical assistance to the concerned person by all possible means. The loan amount varies from thirty five thousand dollars to fifty thousand dollars. However, it is not used to pay your current debt or to buy your real estate property.

SBA 504

This type of fund is used for the purchase of the house and it is used for improvement of street, parking area, and so on. Plus, it is used for construction as well as renovation of the current facilities and it is also used for the purchase of equipment as well as machinery. However, it can not be used as working capital or it can not be used for debt repayment or for debt refinancing purpose. It is effectively structured where SBA offers forty percent of the total cost of the project and where the particular lender pays up to fifty percent. The remaining ten percent of the total cost of the project needs to be covered up by the borrower.

Disaster Loan

This organization also offers disaster loan for a borrower who is highly affected by a disaster. It is often used to replace as well as repair real estate property, equipment, machinery, assets and so on.

An Overview of Various Types of Small Business Startup Loans

If you wish to run your small business in a successful way, it is vital that you should acquire small business start up loan as quickly as possible. If you want to buy new devices or if you wish to invest in inventory, it is vital that you should acquire a lot of money from…

If you wish to run your small business in a successful way, it is vital that you should acquire small business start up loan as quickly as possible. If you want to buy new devices or if you wish to invest in inventory, it is vital that you should acquire a lot of money from a reliable lender as quickly as possible and that you should run your business successfully. This article will highlight on a few types of small business start up loans that are available for small businesses for their successful operation.

Loans offered by the SBA

The Small Business Administration or SBA has designed these funds with the noble objective to cater to the funding requirements of startup companies. It is vital to remember that it does not give money to them directly. In fact, this organization sets effective guidelines for these funds that are offered by its partners such as community development agencies, banks, micro lenders and so on. SBA 7 (A), SBA 504, Microloan and Disaster loan are the common types of these funds that are designed by this organization. For instance, in case of SBA 7 (A), the amount is five million dollars and it is normally used for up to twenty five years for permanent assets and it is also used for up to ten years for the working capital investment. It is mainly used for renovation of building, purchase of machinery and other purposes. In case of SBA 504, the amount is nearly five million dollars and the maturity of this type of fund varies from ten to twenty years. It is used for multiple purposes such as purchase of high quality machinery, renovation of buildings and so on. Microloan is used for the purchase of furniture, equipment as well as machinery, but it can not be used to buy real estate property nor can it used to pay debt. This organization develops disaster loan of nearly two million dollars for them which can be used to repair equipment, machinery, real estate property and so on.

Funds offered by Banks

In order to start your business in the best possible, your next option is to secure conventional fund that is offered by a bank. If you are able to show an effective plan, there is a possibility that you can get it easily within a stipulated period of time.

Funds offered by Alternative lenders

If you do not get qualified for a conventional fund that is offered by a bank or any other funding organization, it is advisable that you should take the help of alternative lender. Those who do not have poor credit history can take the help of these lenders in order to get money to start them in the best possible way. Even if they qualify for the conventional funds, there is possibility that they have to wait for a prolonged period of time before these funds that they have applied for, are sanctioned by the concerned authorities. Due to this reason, currently they seek the help of this type of lenders in order to get money for their successful operation.

Why You Need A Business Credit Card

A lot of small to medium-sized business owners use credit cards in the course of business. The problem is, many make the mistake of using their personal cards. There are a couple of major problems with this: First, if you use your personal credit cards for your business you are blurring the line between business…

A lot of small to medium-sized business owners use credit cards in the course of business. The problem is, many make the mistake of using their personal cards. There are a couple of major problems with this:

First, if you use your personal credit cards for your business you are blurring the line between business and personal finances. The better separation you can achieve between your business finances and personal finances, the better off you will be. For this reason, a credit card in your business name is the best route.

Second, using your personal cards for your business puts your personal credit at risk. If the debt belongs to the business, should not it be on the business' credit?

Most people do not think this is a big deal until they run into problems and no longer have their personal credit to fall back on.

In one example, a couple in business together racked up over $ 100,000 of unsecured debt on their personal credit for their business. When the business's income dropped, even though the business was at first able to stay afloat, the couple was forced to file for bankruptcy.

With their personal credit destroyed, they could no longer get credit to support the business – and the business went through some serious struggles as a result. The stress took a toll, and the couple is now divorced. Perhaps things might have gone differently if they had depended on business credit rather than their personal credit.

Maybe you're thinking that your company will not struggle, or that you do not use credit cards much anyway. What's the point, then?

Using a business credit card in your business does offer some real benefits aside from the two that were already mentioned. For example:

1. Streamline operations and automate payment tracking. Paying expenses can be much easier to manage with a business card, and reports can be generated monthly or annually in many cases to help categorize and analyze expenses.

2. Business cards have “rewards” programs too! If you have a lot of regular monthly expenses for your company that can be paid with a rewards card, you could easily get $ 500 to $ 1000 per year (or more) in cash rewards, or even free airline tickets if you use a travel rewards card .

3. Manage employee spending. Business credit cards can be set up to have spending limits for employees, which can aid in managing expenses for in-the-field employees.

4. Using a business card helps you build credit for your BUSINESS, which is of utmost importance in today's economy.

As you can see, there are several big advantages to using an actual business credit card for your business.

A helpful hint for those wishing to establish business credit: Try to get approved based on your business's creditworthiness rather than your personal creditworthiness.

This means avoid providing your social security number on credit applications for your business credit card. If you do not get approved based on your business credit alone, then you can try applying and include your personal credit information as necessary.

Popular Types of Business Loans for Small Businesses

Every business encounters major challenges in the cash flow at some point, which may necessitate borrowing of funds in order to sustain business operations. For startups, financial difficulties may come knocking at the door early on. Fortunately, small businesses that find it difficult to finance all their projects have a number of avenues to turn…

Every business encounters major challenges in the cash flow at some point, which may necessitate borrowing of funds in order to sustain business operations. For startups, financial difficulties may come knocking at the door early on.

Fortunately, small businesses that find it difficult to finance all their projects have a number of avenues to turn to for support. Finding a lender is not as tedious as it used to be, and the choices are more numerous today. There are bank loans and merchant service providers. Some loan packages are offered by government agencies, which attract many borrowers since they come with guarantees other lenders can not provide. Loans come in all forms and sizes, and some are tailor-fit to meet the specific needs of the lender. The availability of more than one option is an indicator that business owners must evaluate their needs first in order to ascertain that a specific type of loan is indeed the best recourse given their current situation.

Short-term Vs. Long-term

Two basic types of loans available to small business owners are long-term loans and short-term loans. Long-established commercial lenders usually offer long-term loans that have low interest rates. The amount of money is large enough to cover huge expense, such as additional capital needed in business acquisition and related activities. Small businesses looking for working capital can approach these lenders, and they usually get approval if they have a formidable business plan.

Meanwhile, short-term loans are usually issued by credit unions and banking institutions. Whereas a long-term loan must be paid on a monthly basis, short-term loans are paid at the end of the term of the agreement. The interest rate is usually higher compared to short-term loans. Retailer looking for additional funding for a short project that is expected to provide huge profits in a brief time period can benefit much from this type of loan.

Alternative options

Aside from conventional sources of funding, borrowers may opt to avail of alternative lending offers, such as those offered by online merchants. Applying for a business loan is now quite convenient since every step of the process can be connected online. These offers are also quicker to process. It is possible to access capital without the difficulty posed by traditional procedures requiring mounds of paperwork. Alternative financing options work best for use in meeting the needs of an expansion, or sustaining operations when there are cash shortfalls.

Small businesses that are in the early stages of operation often find it difficult to meet stringent requirements. Alternative lending methods are reliably more flexible, including cash advances, crowd financing, and peer-to-peer loans, among others. For small businesses, it is often easier and faster to secure financing using alternative means. Many business owners opt for alternative financing methods especially when they have urgent need for the money. There are situations where the time frame is critical due to availability of funds determine whether the company's daily operations can continue or not.

It is not that difficult even for startups to get approval for a loan if they have a good credit score and a positive cash flow as well.

How to Find a Commercial Hard Money Lender

Tip # 1: Use The Information Traffic Highway In today's modern age it is true that everything is available on the Internet. The Internet can give you access to countless websites and databases of where to find the best lender. When it comes to commercial hard money lending there are different things that come to…

Tip # 1: Use The Information Traffic Highway

In today's modern age it is true that everything is available on the Internet. The Internet can give you access to countless websites and databases of where to find the best lender. When it comes to commercial hard money lending there are different things that come to be needed for different lenders. That means that depending on lenders specialy then you can narrow down your search depending on what type of loan you are looking for.

When doing any type of transaction over the web you should be very careful! There is so much identity theft going on that people need to be careful where and what they are inputting in a website.

Tip # 2: Call Before Accepting Your First Offer

There are more than enough options to choose from in most areas when looking for a lender. It is very helpful to call your local lenders and have them give a little explanation as to what they can do for you. It can take a long time to go over what many lenders can offer, but it can be worth it as you compare propositions at the end of your search. You can save yourself some money and time in the long run after going through with a in-depth understanding.

Tip # 3: Explore Your Options

It is applicable to more than this situation, but you do not accept and jump on the first deal you are presented with. More chances than often you will find that Like in many businesses there are bid wars and negotiations made so shopping around for your lender will most likely work to your advantage. Before going to any lender make sure you are something familiar with what an encounter might be like with a broker. For example you should go in knowing what type of loan you are interested in. That will also allow you to feel more comfortable speaking with a broker about your situation.

Conclusion

It can be challenging to find a trustworthy lender over the phone and over the web. The business usually gets passed on as a referral between family and friends. It is advised that you ask your family and friends if they know a trusted hard money lender and you can go from there. Congratulations as you should be better off finding the best hard money lender in your situation.

Hard Money Loans For Beginners

Hard money loans are good for first time investors as a source for credit, as more times than not, people in California begin their debt before they even begin their credit, this phenomenon comes from the influx of student loans. This could be a good indication of the future success of hard moneylenders. This is…

Hard money loans are good for first time investors as a source for credit, as more times than not, people in California begin their debt before they even begin their credit, this phenomenon comes from the influx of student loans. This could be a good indication of the future success of hard moneylenders. This is usually the case with people who have bad credit or do not qualify for other credit lines or loans.

In our history, and even previously flipping houses (buying a “Junker,” fixing it up, and selling it for profit) has been very profitable, and a good source of making money. It is a market with a huge risk with such big investments but it can be very profitable. This is where hard money loans come in.

These property flippers or investors usually use the hard money loans to buy a property at a low price quickly! The importance of quickness is what makes a hard money loan different than any other loan. Investors sometimes need the money as soon as possible. Conventional loans or typical soft money can take up to 30 days to obtain. Investors are very attracted to our quick and fast delivery, of typically around ten business days. In the case of flipping houses, this is exactly what the investor is looking for. When a flipper finds the property they are interested in, they want their money fast, and sometimes their only option is a hard money loan, if they do not want to lose the property. Sometimes the hard money loan can make or break a business or even a deal.

The way to make money in property flipping can be a very long project. This can depend on how much the property needs to be worked on. There are a lot of things to oversee before investing or flipping a house , money is obviously an issue. The “flipper” can constantly be asking themselves, “where is the money going to come from?” But, in a troubling financial situation, hard money loans are not a bad place to turn.

Hard money lenders do get a higher interest rate but the risk they take usually overshadows that. Meaning the high interest rate is worth what you are getting. And most people are fully aware of the higher interest rates, and still do turn to this option. In most cases it is their only option. The higher interest rates are given as security although, as those in need of these loans can potentially potentially bad or none at all. Which is a big risk for the company. In the brighter picture it has been proven that hard money lending can save a clients property or be the difference between losing or creating jobs on a site being developed.

Reasons to Apply For a Commercial Loan

When you're starting out in business, you might think that the capital you set You plan to turn your profits back into the company and grow using your proceeds as funding. The truth of the matter is – most expansions cost a lot more than just your profit can handle. Commercial loans, even when used…

When you're starting out in business, you might think that the capital you set You plan to turn your profits back into the company and grow using your proceeds as funding. The truth of the matter is – most expansions cost a lot more than just your profit can handle. Commercial loans, even when used for the short term, are an essential part of growth. Let's look at some of the main reasons you would want to apply for a commercial loan.

First, purchasing or leasing new properties is costly. If you are looking to add new locations for your business, you will need to take out a commercial real estate loan. Banks expect this when companies are ready to expand, and that makes commercial real estate loans some of the most common types of commercial loans available. Being able to demonstrate a profit and a positive outlook for that to continue are important for the bank to consider.

Second, if you need to buy new equipment or you are adding equipment to current or future locations, you may need a commercial loan. You may wish to consider leasing over purchasing, depending on how long you intend to keep the equipment. If it would be for as long as or longer than the loan term, then a purchase makes sense. You also can take the depreciation tax deduction as long as you are able to.

Third, you might find that you need to add to your inventory, especially around the peak shopping seasons if you are a retailer. You might want to consider a very short term loan to purchase your inventory, then pay off the loan after your successful Christmas season or back to school season.

Fourth, you may just need a boost to your general operating capital. These types of loans can help you weather rough financial times or get you started. Because these are more risky types of loans, the interest rate charged on them will be higher than on the short term inventory loans or even a real estate loan. But, when a business needs it, the loan is essential and can be the difference between making it or not making it.

Fifth, there is your vehicle fleet to consider. You may have started your delivery business with your own pickup truck, but as you grow, it's time to think about a larger vehicle that is branded for your company. Here again it might be worthwhile to lease instead of purchase the vehicle, especially if you want to turn in the vehicle every two years and get a new one.

All of these are kinds of debt financing. There is also equity financing, the kind businesses get from venture capital firms that typically confer a partial share of ownership to the capital lender as collateral. These are often the kind used for business owners (or potential business owners) who do not have much startup capital of their own.

Still, getting a financial boost from a commercial loan is not something to undertake lightly. Think things over, consider where you are now, where you want to be in five years, and where you want to be in ten years. Then, talk things over with a financial advisor to get his or her expertise and formulate your plan. Good luck, and may the growth be with you.

How to Get a Low Interest Rate on a Commercial Loan

When you are running your own business, you know you need to make every penny count. You have tried negotiating great prices on your office supplies, you have the best perks on your business credit card, but have you thought about trying to get a low interest rate on your commercial loan? Over the course…

When you are running your own business, you know you need to make every penny count. You have tried negotiating great prices on your office supplies, you have the best perks on your business credit card, but have you thought about trying to get a low interest rate on your commercial loan? Over the course of the loan term, you can save thousands in interest payments by getting that lower rate. Let's look at how you might be able to accomplish this.

One of the most common ways you can get a great interest rate is to look for and take out a Small Business Administration loan. There are commercial real estate loans as well as other types of loans that are backed by the SBA. This means that your risk factor considered by the bank is lower thanks to their backing. You will not have to come up with such a large down payment and you can finance the loan over a longer term, both of which will be helpful for your current and future cash flow.

If you have a very valuable collateral item you are putting up, you can also realize a significant savings on your interest rate. Since you will be financing less, your risk is lower, so banks will want your business more. It also holds true when you are financing capital equipment, because the equipment itself is the collateral – what would be sold should the loan be called. The ratio of loan to value of the items purchased is low, and therefore helpful to you.

You can also try to negotiate your terms with your bank, particularly if you have a profitable business and your personal credit score is high. Consider applying at between 10-12 institutions. When you apply at several lending institutions, you end up with all of them competing over you. Is not it nice to be so wanted?

That said, the best place to get a loan with a lower interest rate is from a bank. They often already have a relationship with you and they can use that when they are evaluating your credit-worthiness. If they know you are a solid client, that can go a long ways with the lender.

A demonstrated track record of profitability and a solid business plan are essentials no matter where you go to get your loan. Also, if you need to purchase quite a lot of equipment but you do not have a great credit history or long track record, you may want to consider lowering the amount you are requesting and purchasing your items in stages. This will give you the opportunity to build a history that will make banks look more favorably on you.

Conversely, you will have a harder time getting approved and getting the interest rate you want if you ask for a higher loan amount without the ability to demonstrate your credit worthiness.

You may even find when you go to get your commercial loan that the right solution is actually a mix of these ideas. When you find the combination that is the right one for you, go for it!

Three Types of Credit You May Not Know You Have

Every business has three types of credit: the Consumer Credit of the business owner, Bank Credit, and Business Credit. Most business owners are familiar with their consumer credit. This is credit that reports to the consumer credit reporting agencies TransUnion, Equifax, and Experian. Scores range from 350-850, and credit is linked to the owner's Social…

Every business has three types of credit: the Consumer Credit of the business owner, Bank Credit, and Business Credit.

Most business owners are familiar with their consumer credit. This is credit that reports to the consumer credit reporting agencies TransUnion, Equifax, and Experian. Scores range from 350-850, and credit is linked to the owner's Social Security Number.

Most business owners do not know that banks have their own internal scoring system for businesses. This scoring system is known as bank credit, or a bank rating.
This score is based on how you manage your business bank account. Having $ 10,000 or more in your bank account will give you a good bank credit score.

A business also has its own credit profile, known as business credit. Business credit reports to the business credit reporting agencies, Dun & Bradstreet, Equifax, and Experian. Scores usually range from 0-100, and credit is linked to the business EIN number, not the owner's SSN number.

Business credit provides a lot of benefits. For one, it has no link to consumer credit, so no personal credit check is required, and accounts do not report to the consumer agencies.

No personal guarantee is needed in most cases, so you will not be personally liable for your business debts. Also, credit limits are 10-100 times higher than with consumer credit.

With consumer credit, just because you have an SSN does not mean you have an established credit profile.

To get a consumer credit score and profile, you first must: get approved for accounts that report to the consumer reporting agencies, use those accounts, and pay your bills for those accounts, then and only then will you have an established credit profile and score for your SSN.

Just like with consumer credit, just because you have an EIN does not mean you have an established business credit profile and score.

To get a business credit score and profile, you first must: get approved for accounts that report to the business reporting agencies, use those accounts, and pay your bills for those accounts, then and only then will you have an established credit profile and score for your EIN.

Entrepreneur.com reports that 90% of business owners know nothing about business credit. Business credit is usually reserved for established businesses, or those that meet a certain criteria for approval, and often is used by companies big enough that they have a CFO.

You can build business credit and get a good score QUICKLY! Having business credit increases the value of your company, and you will not need financials or collateral for approval.

Any business can actually establish business credit, but the key to success is knowing the formula for success, knowing what steps to take and in what order.
Business credit is not highly promoted in stores, or with cash credit sources, so usually only larger businesses take advantage of it.

Credit issuers and lenders like it this way, because usually those larger companies are more established and have less of a risk of default, although it's not actually the size of your company that they look at for approval.

To get approved your business must pass a test that shows the credit issuers and lenders that you are valid, no matter your size.

If you pass this test and are credible in their eyes, you'll be approved for business credit. Many times you get approved automatically by their computers without someone personally reviewing your application.

Business size and how long you've been open are not really the driving factors for your approval, but passing this test is.

This means even if you just opened your doors yesterday and have little or no revenue, you can still be approved with most business credit sources … as long as you pass their test.

You must have a physical business address, or use a virtual address. You'll need to have a business phone number, preferably a toll free number, and it'll need to be listed in 411.

You'll need a business fax number and you should have a professional email address, and website. You must have the proper licenses for your business, industry, city, county, and state and you need an EIN, entity setup, and bank account.

There are actually 20 items on this test that will be reviewed, but you now know some of the most important factors that credit issuers and lenders review.

When establishing business credit, there are actually three types of credit you can get: vendor credit (starter accounts that offer Net 30 terms), store credit (revolving credit cards available in retail stores), and cash credit (revolving credit cards such as Visa and MasterCard that card issuers or banks approve you for).

The largest mistake entrepreneurs make when building credit for their business is that they try to apply for store or cash credit first, and skip vendor credit.

But stores and banks will NOT approve a business owner for credit until their EIN credit profile and score are established. If you try to apply for store or cash credit without an established business credit profile and score, you'll be denied … 100% of the time.

You must get approved with vendors first who offer Net 30 terms. After you use those accounts and pay your bills, the accounts will get reported to the business credit reporting agencies.

Then and only then will you have an established business credit profile and score. Once it has been established, you can begin to be approved for store revolving credit.

You should seek out sellers who will approve a business for credit, even if none is established yet. There are actually many vendor sources who are well known for this: Uline, Quill, Reliable, and Laughlin and Associates, just to name a few.

To start business credit, you first should get approved for accounts with these sellers.

Some will require you to purchase their products first and some will have you make three orders and pay before they'll issue you a line-of-credit. But all of the sources I listed will approve a brand new business, even if you have no credit now.

You'll want to insure you have a total of five payment experiences reported before you even think of applying for store credit. A payment experience is the reporting of an account to a business reporting agency.

So Quill, for example, reports to both D & B and Experian. That means that one account will count as two payment experiences. Laughlin only reports to Experian, counting as one payment experience.

Once you have five payment experiences reporting, you can begin to secure revolving store credit cards for your EIN.

KEEP IN MIND, all applications will ask for your SSN but you do NOT need to provide your SSN on the application. If you do supply your SSN, they will pull your personal credit … and if it's bad your application will be denied.

When you leave the SSN field blank, they'll pull your business credit. Once they see that you have business credit established and at least five payment experiences reporting, then you'll start to get approved for store credit.

Most major retailers do offer business credit as well as consumer credit. Staples, Office Depot, Home Depot, Lowes, Target, Walmart, Costco, Sam's Club, Radio Shack, Best Buy, BP, Chevron, Amazon, Shell, and most other stores, offer business credit.

Some sources like Home Depot might have more stringent approval requirements and want to see big revenue and three years in business for approval of no personal-guarantee credit. However, sources do not have these requirements, if you have credit established for the business.

WARNING !!! Do NOT put your SSN on the application. Do NOT apply for revolving store credit without having at least five payment experiences reporting to the business credit reporting agencies. If you do either of these, you'll be denied or you'll have to give them your personal guarantee.

Once you have a total of 10 payment experiences reported to the business bureaus, then you can start to get cash credit cards. Cash cards are those issued by Visa, MasterCard, even AMEX, and are cards you can use anywhere, not just cards you can only use in one store.

It's recommended that at least one of your 10 payment experiences has a high limit of $ 10,000 or more before applying for cash credit. Dell is a revolving store source who regularly approves business owners with established business credit for an account with a limit of $ 10,000 or more.

Key Bank and Home Depot are two sources that offer revolving cash credit cards you can use most anywhere; many banks offer these also.

When you follow these steps, your business can have an established credit profile and score.

This profile and score can then be used to get you credit in your business name, regardless of your personal credit, and without a personal guarantee.

You'll want to continue building business credit, applying and getting more credit, using that credit, and getting approved for higher and higher credit limits.