Credit

[Gail D Pearsall]

My partner and I set up our LLC in November, applied and received our EIN. We are still new at this and trying to learn how to do things the correct way. My question is how do I go about establishing business credit so that every transaction we do falls under our business and we are using our business EIN and not our personal SS#. Maybe the real question should be is that possible rather than how. I would appreciate any feedback, suggestions or advice.

Thanks

Gail

[Stanley Whigham]

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 in unsecured business lines of credit.

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