How do you establish business credit?
We receive so many fascinating reader questions each month, usually in response to our featured news and stories we post online. Last week, Joe asked about opening up credit and loan accounts for his business:
I am interested in learning more about how to qualify for a business loan, credit card, line of credit, etc. I am currently working on improving my personal credit report. I know that my credit score will that play a big part in me being able to obtain a business loan. What else factors in?
Qualifying for a business credit card is much the same process as qualifying for an individual credit card. The borrower’s credit score will play a large role in the application review along with some basic information about the company. The applicant will need to provide details about the type of industry they are in, how many years they have been in operation and how much revenue the business earns a year along with their Federal Tax ID. A good or excellent credit score is needed for most business credit accounts.
Commercial mortgages may also be a good option for small business owners. These loans are specifically designed to help business owners and investors buy real estate such as multi-family, office, warehouse, self-storage, bed and breakfast, restaurant and automotive properties. With these mortgages the applicant will also need to provide information about your business income and industry.
Have a question? Want to share a small business credit tip with Joe? Share your questions and feedback in the comments section below, we are constantly searching for topics related to consumer finances, short term loans, credit cards and financing online. Got a hot tip, reach out to us, searching for suggestions on personal or cash loans, feel free to contact us anytime.