Applying for business credit

[Jason A.]

Hi Folks,

I am getting all my ducks lined up for starting my first flip. I have about 30k saved for my first project and I plan to utilize a hard money lender for purchasing the home. I don't feel 30k may potentially be enough for me to cover all the rehab costs, so I am exploring ways to utilize business credit. 

My personal credit score is 820 and I have two EIN's established. My first EIN is a few years old but was never used for business credit, and the second was just opened a few days ago. I also have a few personal credit cards with 25k, 15k and 18k limits. My question is: What are my best options at getting a higher line of business credit? I've seen stories online of people complaining how they were approved for very little line of credit. Is there some secret formula the banks use to establish their business credit limits? Any input would be greatly appreciated 😁🙏

[Jason A.]

So here's what I found from doing a simple search on the forums:

The fastest way to build business credit today is to bypass vendor credit and go directly to the banks-- unsecured business lines of credit. In 90 - 120 days business owners can obtain $100k to $250k in unsecured business lines of credit themselves.
Follow these simple steps:

1) Establish a strong internet presence for your company by listing it on at least 15 sites-- Facebook, LinkedIn, Twitter, Scoop It, Bing, Manta, 411, Google+, Google Places, etc.
2) Establish a business checking account at 2 banks (with a 700 credit each will offer a business credit card.
3) Make regular deposits into your business checking account for 90 days to establish a favorable bank rating.
4) Add higher level trade references to Dun and Bradstreet to provide depth to your Paydex Score (net 30s are usually lower amounts; you'll need higher approvals from your trade references-- 2k to 4k).
5) Upload your company financials to Dun and Bradstreet to complete your file and create a strong credit profile.
6) After 90 days apply for unsecured lines of credit. Here is why you'll be approved:
* a bank has already loaned your business money (business credit cards); Dun and Bradstreet, Experian Business and Equifax Business have all reported your business credit cards.
* the added trade references will add credit profile depth, as will uploading your financials
* your deposit activity and use of bank products (business credit cards) shows ability to repay
* bank rating is formed after 90 days of deposit activity