Establishing Business Credit

Discussion in 'Business Operations' started by Green Finger, Feb 7, 2001.

  1. Green Finger

    Green Finger LawnSite Senior Member
    Posts: 839

    My personal credit is kinda shakey. I'm in the process correcting it.

    I now have a Tax I.D. number.

    How can I go about establishing credit in my business name. (under my tax I.D. number)
     
  2. Stonehenge

    Stonehenge LawnSite Bronze Member
    from Midwest
    Posts: 1,277

    If your business is new and small, chances are you won't be able to get 'credit' for your business without personally guaranteeing it (VISA/MC). And so you'll have to work with whatever personal credit rating you have for a few years.

    As for accounts at local suppliers, just set up an account, buy stuff and pay for it when the bill comes. And keep doing that.
     
  3. kutnkru

    kutnkru LawnSite Silver Member
    Posts: 2,662

    When I first started out I had less than desireable credit as well. What I did was to explain this and asked our local dealer that we were planning to deal with at that time if we could give him an installment to help build the credit line. He took $500 and after 30 days when the billing went out and he got a check within 3 days he uped the limit to $600 and so forth. We wound up working together and today he is part of the reason for helping to get our foot thru the door.

    Hope this helps.
    Kris
     
  4. Green Finger

    Green Finger LawnSite Senior Member
    Posts: 839

    Thanks for the great info
     
  5. zimm4

    zimm4 LawnSite Member
    Posts: 106

    How easy is it to get credit for A new lawnmower.
    That is if you haave shaky credit.
     
  6. Green Finger

    Green Finger LawnSite Senior Member
    Posts: 839

    I don't know. I haven't tried to purchase a new mower.

    But, I hope to be getting a new one this year. The guy at my dealer gave some advice simular to what Kutnkru said.

    He said buy equipment small like a weedeater,blower,or edger. Finance it. and try to establish your business credit that way.
     
  7. Mike Nelson

    Mike Nelson LawnSite Senior Member
    Posts: 416

    I would try your local bank.Feel out which bank wants to help a small business.Try to get a line of credit established in the off season when you don't need it right away.
    Also get a good accountant right from the get go_Our accountant has a lot of friends in the banking business and the banks love to see his name on our tax returns.They also keep you out of trouble!
    Good Luck :D
     
  8. KindGardener

    KindGardener LawnSite Member
    Posts: 186

    Green Finger - I know this is not an immediate fix - but once you are done,thru,finished with making late payments... get at least 3 or 4 "secured" credit cards. Within a year your credit scores will improve dramatically. Within 2 years you will start getting solicited with unsecured cards.
    (emphasis on no more late payments/collections)
     

Share This Page