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Building business credit

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Building business credit



I need some advice. I have a business of 3 years however just Inc. about a year ago. I work in film and video... I own about $25k in equipment and about 30k in stock and such. My business has no credit. Everything I have done has been out of pocket, on personal cards (years ago) and a few business cards but they don't report to my business's credit.


Recently, I needed to purchase some equipment and thought rather than buying outright with cash assets, I would attempt to get a small business loan just to build my credit. I would pay it off very quickly.


My banking is through chase and I spoke to my biz specialist. We put in the app and I was declined based on my personal credit. It was with Transunion, I have a score or 709 with them but, from back in college, a bad mark from a disputed $313 account that was paid. It is a long story but the company it is with is not willing to take it off my credit. It is really a 50/50 fault of mine and theirs. But I'm just one person and they are a corporation so you do the math.


In either case, my credit, as I am young, is also short and seems to be a factor in my credit all the time. And that is understandable but I have shown over the past few years that even when I spend 7k in a month, I pay it off immediately.


So, the advice I need, is how the hell am I going to get my business credit anywhere if all these banks care about is my 5 years of credit history and a bad mark from 4 years ago. I would have to wait until 2013 before that drops off my credit history. So what do I do? I don't need a big loan... I don't need the loan at all really, but I do need to build my business and these banks aren't interested in quality but some general statistic that doesn't matter. Any and all bills I have are and will be paid. I'm good for it. Any suggestions? Thanks for your replies!



P.S. I only asked for a 5k loan... really I only need about half of that but the smallest that chase would give to a small biz was 5. 

Message 1 of 2
Valued Contributor

Re: Building business credit

It's been a while since I've used this myself, so I don't know if this still applies. 


Check with your bank (where you maintain your business checking account) and inquire about a 90 day note.


If they offer one, they discount the proceeds of the loan for the interest, i.e., you pay the interest up front.  You repay the full loan amount in 90 days.  Many times, you can roll this over, just paying the interest up front again to do so.


Sometimes, this method is enough to get your foot in the door for a LOC credit relationship with the bank, and if it does, that will certainly build your biz credit profile.  If you have regularly scheduled receivables coming in, make sure you mention that, too, if it gets that far.


Just be aware that my info on this may be outdated. 



Message 2 of 2
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