Business credit post BK

redneck18 · ‎05-12-2016

I've been in business going on 12 years. Held on by a thread in the 2008 crash but trashed both personal and business credit as a result. Had to file BK last month over a judgement resulting from a royal screwing by a partner. Plan on trying to kill the current business and rebirth under new name EIN, etc (attorneys suggestion), this will essentially eliminate previous partners interest. My question is, is it possible to build business credit simultaneously while rebuilding personal credit? Perhaps this is better asked in the BK forum but thought I might start here. Thank you in advance for any replies.

Anonymous · ‎05-12-2016

If you just filed BK last month, it might take awhile to get started with business credit again, but it will be possible I'm sure. Hopefully someone with BK experience will chime in and give you some advice.

Anonymous · ‎05-13-2016

Something similar happened to me where a partner did some shady stuff and caused me to close the business and declare BK. I got a couple personal credit cards and started to build my credt within 6 months. I was able to get business credit about 2 years after I discharged. I had got one of my personal credit cards from Capital One and after they saw that I never missed a payment with them, I applied for a business credit card. I got approved with a limit of $1,500 to start. Made all payments on time and never left a balance more than 10% of available credit. Within 9 months I got a credit line increase without even asking - to $3,000. About a year after that, I applied for better card and got a $15,000 credit card through them. So I recommend what I did by getting a personal card. Build your rapport with that company and then try to obtain a business credit card through them. Hope that helped!

redneck18 · ‎05-15-2016

Stevie119, that's exactly what my plan was to do. Thank you for the insight, just wasn't sure it would work. Our business has heavy expenses and not a lot of margin, so operating without a buffer (credit) has been difficult but taught me to be very frugal. I think moving forward I have a better understanding, and appreciation, for how valuable credit is thanks to this forum. I'm hoping as a result to finally see success beyond my wildest dreams. We have a solid business with a reputation second to none, it's just been difficult to generate sufficient cash flow to grow. If I can re-establish credit I think it will flourish.

Anonymous · ‎05-16-2016

My pleasure! If you want any business to grow, you need credit (that is if you don't have a significant amount of capital to start with). Credit is extremely important if you want scale your business. Tha't why it's nice to join a forum like this to get fellow members' advice from past experience. I hope you business does great!!