Rebuild by starting an LLC (What is "business credit"?)

[Anonymous]

So I've been rebuilding for awhile now but stuck at 650 which isn't horrible but isn't Prime either.

My fiancée and I are considering starting an LLC to generate revenue buying and selling consumer electronics in bulk. While researching this I came across something called business credit. I knew there were business credit cards, but assumed they were based on personal credit of the CEO or someone.

Can someone explain the basics of business credit to me do you start at 0 or how is this determined?

(PS: Sorry if I put this in the wrong forum didn't know where to put it).

[myjourney]

Real basic view 

Yes you start at $0.00 and 0 history 

Decide how you want your company structured 

Setup banking 

Any CC's from major lenders will require a PG 

Meaning approval will be based off of your personal credit scores 

Read read read and when you think you've mastered the process 

Read more and research what will work for your business 

[Anonymous]

What's a PG?

Also my fiancée's FICO is 700 while mine is about 655 will this cause a hiccup or is that okay?

We aren't looking for a huge Starting Limit but I'd like to know what to expect so that we can manage our expectations. We plan on applying with B of A for a Business Checking and Business Credit Card because we received $200 promo offers for both in the mail.

Thank You!

[myjourney]

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@Anonymous wrote:
What's a PG?

Also my fiancée's FICO is 700 while mine is about 655 will this cause a hiccup or is that okay?

We aren't looking for a huge Starting Limit but I'd like to know what to expect so that we can manage our expectations. We plan on applying with B of A for a Business Checking and Business Credit Card because we received $200 promo offers for both in the mail.

Thank You!

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So your plan is to make this a joint business venture correct?

PG= Personal guarantee which means you will be responsible to pay the $$$$$$$ back no matter if the business is successful or fails 

As far as the limit you will get no one can say 

I haven't used BofA for business cards but IIRC they're not new startup business friendly 

New business friendly banks are Cap1 and Amex 

Cap1 you'll see smaller limits 98% of the time 

Amex tends to be more generous with new business limits YMMV 

@Anonymous fiancee scores are good @ 700 the 655 is borderline at best ....Sorry but you need the facts to move forward 

[Anonymous]

Yes a joint business venture.

We just got approved for our business name, an EIN from the IRS, and a state tax ID.

PG is fine sounds fair enough.

For BofA would it be best to get the business checking for a while build up a history or not really? Mainly interested for the sign up promo.

What would be the best for sign up promo and rewards ?

My scores should go up as time goes by I only have one CO from 2011 and the subsequent collection from that CO from 2011 so I'm building back up (I did a lot of PFD'S)

[myjourney]

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@Anonymous wrote:
Yes a joint business venture.

We just got approved for our business name, an EIN from the IRS, and a state tax ID.Congrats you're officially a business entity 

PG is fine sounds fair enough.

For BofA would it be best to get the business checking for a while build up a history or not really? Mainly interested for the sign up promo.You can set up a checking account with an bank. Just take your articles of inc with you. No need to wait after checking is set up to apply for anything

Just be aware BofA sends out a lot of mass marketing for products but everyone may not qualify ...Personally I think you stand a better chance for approval and higher limit with Amex and probably better bonuses but your choice/decision  

What would be the best for sign up promo and rewards ? Best depends on what you value ...Example I'll take no less than $500. (my preferences) be it in cash back or travel points......everyone has different views....If the card has a high  AF I'll take nothing less than 1K

My scores should go up as time goes by I only have one CO from 2011 and the subsequent collection from that CO from 2011 so I'm building back up (I did a lot of PFD'S)

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Good luck and much success in the new business venture to both of you

[Revelate]

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@myjourney wrote:

New business friendly banks are Cap1 and Amex 

Cap1 you'll see smaller limits 98% of the time 

Amex tends to be more generous with new business limits YMMV 

@Anonymous fiancee scores are good @ 700 the 655 is borderline at best ....Sorry but you need the facts to move forward 

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Is Chase no longer new business friendly? Have to go look at what my credit score was when they gave me an Ink, it was several years ago so I probably was right around a 700 at that time.  On the flipside I had non-trivial cash on deposit there for some stupid reason at that point in my life, which might've factored.

[myjourney]

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@Revelate wrote:

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@myjourney wrote:

New business friendly banks are Cap1 and Amex 

Cap1 you'll see smaller limits 98% of the time 

Amex tends to be more generous with new business limits YMMV 

@Anonymous fiancee scores are good @ 700 the 655 is borderline at best ....Sorry but you need the facts to move forward 

---

Is Chase no longer new business friendly? Have to go look at what my credit score was when they gave me an Ink, it was several years ago so I probably was right around a 700 at that time.  On the flipside I had non-trivial cash on deposit there for some stupid reason at that point in my life, which might've factored.

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Chase is so iffy to new business ....my guess 40%

By new I mean straight out the door probably more open to a business open 8-12 months

Amex on the other hand you can report just open ...no income .....just projected income and have greater odds of approval 

[Anonymous]

Update: So Yesterday we app'd for the Business checking with BoA they sent us a request for our articles of organization and such so we provided them.

This morning we got an email saying the account was approved (we mainly signed up for the $200 promo and the ease of getting no fees; it only requires $250 spend per month).

Then on another promo we app'd for the Business Credit Card with BoA too. It only alotted space for one of our information so naturally we picked the better one, hers. We put in what we projected for first years sales (80k? Just a guess for now we have to see how things go) along with personal income.

Instantly approved for 9k SL

A couple questions: Can we put my name on it as well because I'm 50% owner as well?

In time do they give CLI's (or do Business cards not generally get increases?)

Is 9k a decent SL or is it really bad? This is our first business and experience with business credit so we don't know anything.

Thanks!

[Anonymous]

Bump