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Build now or later?

Your FICO® Scores can impact your loan interest rates, terms, approvals and more.
Regular Contributor

Build now or later?

I  will be starting my dream company one day but I know that I will need a lot of financing for it upfront. My question is, should I start building business credit for the company (startup) or should I what until after the company is established? I haven't incorporated the company or done anything really because of the financing issues I know I will face. I'm currently working on my personal credit to use myself as a PG. Is it okay to start building business credit a couple of years before you actually start making any transactions?

Starting CK FAKOS 6/28/2018
TU 503
EQ 498
Discover EX 537

FICO Score 8 7/7/2018
EX 557
TU 566
EQ 514

Current FICO Score 8 as of 3/18/2019
EX 618
TU 633
EQ 578

Goal Score 650
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1 REPLY 1
Contributor

Re: Build now or later?

Yes! Set up your business entity and start building it as soon as possible. You wont have to pay too much in fees or taxes if you know you're not making too much money, but you do have do it right as some states have different rules on companies that aren't making money. Fortunately, it isnt really that hard to make money on any business entity, you just have to be able to post maybe $1k in revenue and you can keep it afloat, but I doubt that you'd only make that little on first year if you really tried. Since you have a headstart, build your personal and business. Unless your business requires tons of certifications and licenses and other requirements that initially needs a hefty amount of money, you should be able to slowly build it from zero. Good Luck!

Gardening till 12/2019!




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