There are ways to build business credit with no personal guarantees. On the positive side, lending institutions need to lend money as a way of generating revenue. Yet, lending money is not the same as giving them away for free. Creditors have to be confident that the business is trustworthy before they decide to extend a loan. Basically, they have to be certain that borrowers are going to make regular payments until the loan amount is paid in full.
Before you start building a business credit, make sure you have covered the basics. Obtain permits, a business license number, employer identification number, necessary registrations and business fax and phone numbers published in your local directory.
Do your best to build a good and solid payment history. You cannot expect that your business will acquire a no guarantee credit card or credit line if you have a single paid invoice.
As a next step, you need to choose a crediting institution. Pick a credit card company in which to open a business account. While considering various financial institutions, compile a list of all financial products you might need. Look at the financial services of community banks and credit unions as they are more flexible than other financial institutions.
You need to find diverse sources of credit in order to build a solid business credit profile. Try to obtain several account types such as leases, loans, revolving credit, and trade credit. In addition, fill in an application for a business credit card with Office Max, Dell Computers, Fedex/Kinkos, Staples, Costco, etc. As a registered company, you will not be required to provide personal guarantees. You will have to include in the application your business address and phone details, licensing records, official letterhead, invoicing documents, and other required information.
It is a good idea to open a business checking account at your local bank. Along with the application papers, you need to provide your licensing records, phone bills, and account records which document your balance and transaction history. Apply for a credit card that is above the standard credit line. To make a successful application, create a well written business plan. Include in the plan all components that are necessary for the success of your business. Explain the nature and structure of your business, the projected profit margins and profits and provide an estimate of the value of your company. Narrow the risk margin by pointing to key areas of growth and stability within the company. Employ figures rather than projections.
Do your best to stay informed. Join social networks and forums, subscribe to blogs and magazines, and read relevant information. In this way, you will learn about the best opportunities to establish business credit with no personal guarantee.