SMALL BUSINESS START UP - BEST WAY TO FINANCE

[Anonymous]

I got a Citibusiness card for my young, extremely small (me and the husband) sole proprietorship.  It cost an inquiry on one report, but the card and any balance on it doesn't show on my personal credit reports.  It also offers 0% on BTs and purchases for a full year.

If leasing isn't an option (and I understand; I do CAD- plotters aren't cheap or easy to get...), that might be the way to go...

-MsMS

[Anonymous]

Thanks so much for the useful tip - I have looked at several business cards and located one that offers 0% for 15 months.  Also, I have an offer from AARP (ugggh - I hate to admit that)  Although it is not a business card, it does offer 15 month 0% on BTs, and the added rarity of no BT fees.  So, it will probably be one of these two, and I will lock it away until the balance is paid in full, and hopefully can rely on my check card to pay for supplies and other operating expenses.  I do have $3K put back as a cushion, but don't want to drain it -although, I am sure I will need to use some of it for other start up costs. i.e., set up merchant account, web hosting, some local advertising, etc, etc....  All the pieces that are required to get an online business started is overwhelming.  I am still confused.

I will look into your citibank card first to compare the fine print.  BTW,  if "pre-approved" offers are received that are unsolicited do they count as an inquiry if you accept the offer?

Thanks again.

[Anonymous]

I would think about getting a card with 0% on purchases for a year or so- either one like mine, where it's 0% on BTs and purchases, or a separate card from your BT card.  With all the other startup costs, it helps to have an interest-free "float" until you get some real revenue coming in.

That's been really valuable to us, as one of our businesses is doing craft shows/Renaissance Faires- long stretches of spending (on materials), then quick bursts of income.

I'm pretty sure you'd still get a hard inquiry on accepting a "pre-approved" offer, but I could be wrong...  The advantage of a business card over a normal one is that the normal one will show on your personal reports, and could affect your score (depending on % util, aging, and a whole bunch of other variables).  The business card doesn't, as far as I can tell- they just pulled my CR on application and I haven't seen hide nor hair of it on my CR since.

-MsMS

[Anonymous]

OK - good information - I am looking at business cards now.  I thought it all hit your personal credit report if you were the sole proprietor.  

Will the charge I just placed on my card for the printer show up on my report right away?  Hoping it doesn't hurt my score preventing me from getting a good business card.

Thanks again!

[Anonymous]

It depends- usually my CC's update once a month, a few days after the statement date.  If you just charged it recently, it may not have shown up yet (and thus wouldn't hurt your score).

-MsMS