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New Business Credit

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Member

New Business Credit

Hello!
I have just established my business (sole prop). I have a DUNS, EIN, Business address/phone/website (all verified and listed on 411.)
I got my first NET 30 vendor last week (Quill) and already paid the invoice.
My personal credit scores:
TU 668
EQ 676

EXP 667
My scores will go up again in a few days as I lower my card utilization to under 29%.

My question is: What's my next step in acquiring more business credit? I dont mind using a personal guarantee, however I don't have stellar scores. My goal is to lease a large piece of machinery for my business by Dec or January.

Thanks!
(NOTE: My personal credit has: 2 vehicle loans, Capital One Platinum 1800cl, Capital One Quicksilver 2000cl, and a $4000 LOC. No other credit and no delinquencies.)

Starting Scores (8/2017): 536
(10/2018): TU 677, EQ 689
Current (10/2019): TU 668, EQ 676, EXP 667
Cards: Capital One Platinum | $1800, Capital One QuickSilver | $2000
Other credit: 2 Car Loans, $4000 LOC
13 REPLIES 13
Established Contributor

Re: New Business Credit

If you are using PG don't count on Credit Karma scores to accurately reflect what your true scores by Fico are.

I would find out exactly what my Fico scores are in order to see if they are even close to what any Biz CC issuer might consider for approval.

Once that is done and you can decide if it's worth pursuing CC's or more Net accounts....or both.

I might app and not know what decision I'll get but I never app and not know what my true Fico scores are.
Jax

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Message 2 of 14
Member

Re: New Business Credit


@jaxstraw wrote:
If you are using PG don't count on Credit Karma scores to accurately reflect what your true scores by Fico are.

I would find out exactly what my Fico scores are in order to see if they are even close to what any Biz CC issuer might consider for approval.

Once that is done and you can decide if it's worth pursuing CC's or more Net accounts....or both.

I might app and not know what decision I'll get but I never app and not know what my true Fico scores are.

Thank you! Great advice. 

Starting Scores (8/2017): 536
(10/2018): TU 677, EQ 689
Current (10/2019): TU 668, EQ 676, EXP 667
Cards: Capital One Platinum | $1800, Capital One QuickSilver | $2000
Other credit: 2 Car Loans, $4000 LOC
Message 3 of 14
New Contributor

Re: New Business Credit

Hold off on that equipment loan app as long as you can. Allow your scores to get better. Open some more net 30s asap. Find out your real scores. Mine are normally lower than they are on credit karma. Especially when my scores were lower. Do you have a lot of inquiries? I feel like your scores should be higher if you don't have any delinquencies.
Message 4 of 14
Member

Re: New Business Credit


@Rgudino1717 wrote:
Hold off on that equipment loan app as long as you can. Allow your scores to get better. Open some more net 30s asap. Find out your real scores. Mine are normally lower than they are on credit karma. Especially when my scores were lower. Do you have a lot of inquiries? I feel like your scores should be higher if you don't have any delinquencies.

Yes, I have about 10-12 inquiries. I bought a new car in May and that increased my inquiries by 5-6. Not sure if I could dispute them since it was 1 car app, not multiple? The dealership ran in through multiple banks. 

Starting Scores (8/2017): 536
(10/2018): TU 677, EQ 689
Current (10/2019): TU 668, EQ 676, EXP 667
Cards: Capital One Platinum | $1800, Capital One QuickSilver | $2000
Other credit: 2 Car Loans, $4000 LOC
Message 5 of 14
Regular Contributor

Re: New Business Credit

Quill might not even report. I am not sure why but in my case nothing was reported.
Equipment financing might be costly. So if you can pay cash or finance it through your credit card it might be a better option.
Message 6 of 14
Valued Contributor

Re: New Business Credit

I agree with most of the advice here.  But one thing to keep in mind is that, do not depend on using credit card for your financing needs.  Some of the personal CCs offer interest free promotion period.  It is rare for business CCs.  But after the promotion period, all charge very high interest, average like 18% or so.  You never want to be in the debt trap.  Only spend what you can afford.  

 

A couple of the business CCs even offer some help for working capital needs (like one or two more months).  But I do not remeber the details.  

Message 7 of 14
Super Contributor

Re: New Business Credit


@Lmrga4281 wrote:

Hello!
I have just established my business (sole prop). I have a DUNS, EIN, Business address/phone/website (all verified and listed on 411.)
I got my first NET 30 vendor last week (Quill) and already paid the invoice.
My personal credit scores:
TU 668
EQ 676

EXP 667
My scores will go up again in a few days as I lower my card utilization to under 29%.

My question is: What's my next step in acquiring more business credit? I dont mind using a personal guarantee, however I don't have stellar scores. My goal is to lease a large piece of machinery for my business by Dec or January.

Thanks!
(NOTE: My personal credit has: 2 vehicle loans, Capital One Platinum 1800cl, Capital One Quicksilver 2000cl, and a $4000 LOC. No other credit and no delinquencies.)


I would suggest trying for an American Express business charge card.


Total revolving limits 639500 (558000 reporting)
Message 8 of 14
New Contributor

Re: New Business Credit

What kind of equipment are you after?  I used to work in the field of equipment finance (think really large yellow iron - that kind of equipment) for 11 years or so, and so not sure if the equipment you seek is treated in a similar manner....

 

But if it is, then for most folks that are new in business, then generally it is a function of having equity in your deal (eg, some kind of downpayment or maybe some rental equity built into it).  There will be a PG for big ticket items - it takes years and a solid set of financials to get around that. 

 

Message 9 of 14
Member

Re: New Business Credit


@HoustonWestside77084 wrote:

What kind of equipment are you after?  I used to work in the field of equipment finance (think really large yellow iron - that kind of equipment) for 11 years or so, and so not sure if the equipment you seek is treated in a similar manner....

 

But if it is, then for most folks that are new in business, then generally it is a function of having equity in your deal (eg, some kind of downpayment or maybe some rental equity built into it).  There will be a PG for big ticket items - it takes years and a solid set of financials to get around that. 

 


Just saw your reply. I am actually looking to lease a semi truck and trailer. 

Starting Scores (8/2017): 536
(10/2018): TU 677, EQ 689
Current (10/2019): TU 668, EQ 676, EXP 667
Cards: Capital One Platinum | $1800, Capital One QuickSilver | $2000
Other credit: 2 Car Loans, $4000 LOC
Message 10 of 14
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