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Question
how can a person with a low fico score that owns a business establish business credit?
Laura:
Thank you for your inquiry. Establishing credit for a business depends on several factors including if you are a formal entity such as a corporation, LLC, etc. Creditors are usually able to offer small unsecured lines based on the age of the business and type of gross sales you claim to have. None of these lines should depend upon your FICO or personal guarantee if you are established. That said, if you have a business that has no history or poor payment history it is possible you will be denied. Without benefit of understanding the type of business, need and usage of credit and your sales capacity it is difficult to make a suggestion. My best advice would be to get a good relationship with the bank managers and loan officers you do business with and explain your need for establishing the credit and be prepared to provide documentation such as bank statements, contracts or anything that proves you have steady income. They probably have products available that would suit your needs and enable you to borrow on credit even if it is a low credit limit at first. Just as in personal credit, your creditors will want to be sure you can make payments in a timely manner and not abuse the privilege of your revolving lines. Shop around with large established creditors offering business lines such as Amex, Advanta and Capital One. Most of all, stay clear of payday loans and other scams for fast and short term money. I hope this helps and wish you luck in getting the credit you need.
Respectfully,
Christine Janklow
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Answers by Expert:
Christine Janklow
Expertise
As President of SettleSource,Inc. a business debt settlement firm, I invite you to inquire about all aspects of business debt solutions to best determine which may be most appropriate. If you have questions such as: What is debt settlement and how process provide debt relief to my business? What options are available to deal with my business debts? Is it possible for a business owner to negotiate their own settlements? Why is debt settlement preferable to filing a bankruptcy or debt consolidation? Why are creditors willing to provide settlements to a business? How will settling debts affect credit scores? or How to rebuild a business after debt is eliminated. Please ask it now! For more information regarding how debt settlement can help your business, please visit www.SettleSource.com and place your inquiry. Mention All Experts to have a confidential no cost consultation with Christine. If this is your business situation time may play a very important factor in getting matters resolved proactively before they have negative affects on the business.
Experience
My expertise is specific to providing business solutions that will have profound positive impacts on the financial health of businesses. I have 25 years experience as an entrepreneur and have developed national sales programs; strategic alliances; product development; marketing programs; business and turnaround plans and debt settlement programs all providing methods to improve the financial outlook for large and small businesses. In the area of commercial debt settlement I have over 10 years experience working with large and medium corporations and closely held businesses to enable successful debt reduction and turnaround. I am a professional debt arbitrator and have negotiated with major banking institutions as well as vendors, suppliers and other trade creditors.
Organizations
Provisors;Turnaround Management Association; Los Angeles area
Publications
Accounting Today; Web CPA; National Restauarant Association;Los Angeles Daily News; Today Magazine Monthly series of business articles entitled "Brand News."
Education/Credentials
Bachelor of Business Administration; Associate of Arts Merchandising
Past/Present Clients
American Airlines, American Express, Safeway Inc., New York Life, consumer products manufacturers; retailers, food service industry and other small businesses and service providers.
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