Help!!! **Interesting Situation** well established business owner with NO credit whatsoever.

[aplast]

Good evening everyone,

My Brother owns a full service restaurant, and I help him run it. He recieved a personal loan from a family member for start up, and we have worked out butts off. It is a successfull business now after 7 years and the business is making money. Last year we did 1.8 Million in sales. This year has been even more profitable YTD. We have done all of this with no debt. We pay all the bills with business checks attached to his business checking account at a small local bank. We are to the point now that we would like to get a credit card for the business and start earning travel rewards, we spend enough money to really rack some points up. We have statements and financials for the business that I wouldnt mind at all providing for a potential credit card company.

Heres the part I need some advice on: My brother has NO credit whatsoever. He has never opened a credit card, or gotten a loan. He is the legal owner of this million dollar business.What do we do? He doesnt have an issue with being a PG the account, but I think we will run into some issues because theres nothing on his files at all.

Now some of you will ask why don't I cosign for the business... Well, Unfortunately, My credit is not where it should be right now. I went through a rough time in the early years of the business and now Im rebuilding. I have a loan on my truck, a few current credit cards, and am an AU on a couple higher limit cards, but collections and my score would prevent me from making this happen myself, I belive. 

If you all have any input, ideas, or suggestions, we would greatly appreciate it. 

[myjourney]

He's going to have to start to build credit to even be considered for CC's 

He may be able to ask his current banking service who may give him a card based on his business relationship with them but even then it may have to be manually done 

[aplast]

That was my initial thought. It's a shame he chose this small time local bank to set up the business checking. They offer a business CC, but no rewards/benefits at all. There arent any banks that would look at our statments and say hey, ok, these guys are avg 150k a month in deposits - heres 10k to start with? 

[myjourney]

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@aplast wrote:

That was my initial thought. It's a shame he chose this small time local bank to set up the business checking. They offer a business CC, but no rewards/benefits at all. There arent any banks that would look at our statments and say hey, ok, these guys are avg 150k a month in deposits - heres 10k to start with? 

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Being a small bank may play to his favor since they know him and the business 

Worst case is they give him a card with no rewards which builds him credit and in 6 months when he has history and a Fico score 

App better reward cards 

But right now he doesn't even have a Fico score

[aplast]

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@myjourney wrote:

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@aplast wrote:

That was my initial thought. It's a shame he chose this small time local bank to set up the business checking. They offer a business CC, but no rewards/benefits at all. There arent any banks that would look at our statments and say hey, ok, these guys are avg 150k a month in deposits - heres 10k to start with? 

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Being a small bank may play to his favor since they know him and the business 

Worst case is they give him a card with no rewards which builds him credit and in 6 months when he has history and a Fico score 

App better reward cards 

But right now he doesn't even have a Fico score

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Very Good point, but since its a buisness card, it wouldn't show up on his personal credit report, right? For how much we spend a month it would be a pain to use and pay with a card not making us any money back - especially since they would be pretty conservative with the initial CL But are we at a standstill with every other bank?

and he plans on building personal credit in the very near future, and kicks himself for never at least starting. 

[myjourney]

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@aplast wrote:

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@myjourney wrote:

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@aplast wrote:

That was my initial thought. It's a shame he chose this small time local bank to set up the business checking. They offer a business CC, but no rewards/benefits at all. There arent any banks that would look at our statments and say hey, ok, these guys are avg 150k a month in deposits - heres 10k to start with? 

---

Being a small bank may play to his favor since they know him and the business 

Worst case is they give him a card with no rewards which builds him credit and in 6 months when he has history and a Fico score 

App better reward cards 

But right now he doesn't even have a Fico score

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Very Good point, but since its a buisness card, it wouldn't show up on his personal credit report, right?

Depends on the bank .....best to ask them where they report some report to both like Cap1

For how much we spend a month it would be a pain to use and pay with a card not making us any money back -

Whats the difference you guys are paying now and not reaping any rewards from checks  .....so what's 6 months to build credit doing what you're doing now anyway?

especially since they would be pretty conservative with the initial CL But are we at a standstill with every other bank?

Small banks and CU's sometimes give good limits especially if it has no rewards 

and he plans on building personal credit in the very near future, and kicks himself for never at least starting.

Lol It's never to late to start tho

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As far as Amex, Chase, Citi, BofA, Cap1  ......it won't happen at this point w/o a Fico score .....sorry but they won't extend credit 

[myjourney]

Forgot to add 

Ask your bank do they have a secured card for business .....this will help for business credit however he'll still be in the same boat for personal credit 

[aplast]

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@myjourney wrote:

Forgot to add 

Ask your bank do they have a secured card for business .....this will help for business credit however he'll still be in the same boat for personal credit 

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I will do that. Thank you.

[SouthJamaica]

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@aplast wrote:

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@myjourney wrote:

Forgot to add 

Ask your bank do they have a secured card for business .....this will help for business credit however he'll still be in the same boat for personal credit 

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I will do that. Thank you.

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Your brother should get a couple of starter credit cards, and use them sparingly.

E.g. a Capital One secured card, and perhaps a store card.

[redpat]

I suggest going to a larger commercial bank such as BOA, Chase, Citi or TD bank and have a meeting to discuss their cash management programs.  While meeting with them discuss the need for having a company credit card to go with their cash management program.  I would assume your brother has a relationship and is well known in the community which could also help in this matter.

Commerical lending and banking is about having more of a relationship with the business owners rather than just applying for a credit card.

Also you can call your Accountant, they should have relationships with Commerical lenders and they could refer you one and also may help you with this process (meaning getting financial data together if needed).