Establishing biz credit

I tried before with Bank Of America and they told me the same thing.
They want my own SS # and my credit is not good.
Anybody can guide us?
Thanks....
Daniel

Someone from a local bank called us regarding an account that we have at their bank (personal not business) so while we had them on the phone we asked them if they could give us a loan for our business using our EIN#. He said that it wasn't his department but he thought it was worth a try. He said we may have to try different banks because lenders are hesitant but someone may eventually say yes. Hope this is helpful.

I believe you would use your EIN for the loan and basically co-sign with your personal credit. If you default on the company loan, they have an alternate recourse to collect from your personal assets/accounts.

I believe Advocate is correct. They secure the loan with your personal credit. All the while you are building your business credit in the process. Just don't default on the loan...

Thanks for the info but I don't have good credit so they don't give any loan.
Maybe trying local banks....??
Daniel

So you opened a checking account in the name of your business;asked for a loan equal to/or less than the amount in the business checking account; based solely on your EIN number and they refused?

99% of the banks will not give a new business $ unless they have established credit. Kind of a catch 22, you don't qualify for credit, but can't get credit to qualify for credit. So, to get banks to take your business serious you need to establish a business credit profile with Dunn and Bradstreet. You want to get a D-U-N-S number. Go to Dunn and Brad street @ www.dnb.com click on the "establish" tab. There it will have information on how to estabilsh your credit profile. It will cost you money to do this if you want it done quickly. Otherwise you can do it yourself, but it takes awhile to get it going. I have heard that you can ask for a discount on their package. Once you have an "established" DUNS number, you can go to a bank and get loans based on your business not you. The majority of major companies have a DUNS number. Also, I wouldn't go to big banks for your loans, but to little local banks. They don't have the same lending guidelines as the big national banks. If you haven't tried the local banks yet, I would try that first. If you get the same response then I would difinitley go for D & B.

KimmyJ
Press On...

I didnt actually open the account I just told her that I wanted to start a biz checking with $1000 and then get a loan for $1000 using only my EIN number, with the checking as collateral. She told me that she would give me the loan but it would be based on my personal credit.

Kimmy,
Thanks for the advice I will go check out that site. I have been on the site but never paid or signed up for anything. I am going to try some local smaller banks first and see if that works.

Thanks everyone for your responses, Tony

You may want to try some other local smaller banks in your area. Say if you open a savings account with $1,500 then try for a loan for $1,000 with the savings account securing the loan. It is usually a good idea to inquire to the bank if they report your timely payments to a credit reportng agency.

Some payments have a minimum amount such as loans over $2,500 and the amount of time you repay say at least 6 months. Thus, try researching which banks may work out the best for your scenario. If banks inquire why you are doing this you can state that you want to work n building a relationship with their bank. Good luck with the process. Believe and Achieve! - Joe

Did you pay to have this done at dnb? If so was it worth the money? Also if I get a duns number and then go to a bank for a loan do I have to tell them I have a duns number or will they know?
Tony

I am working on the DUNS number and I have not paid for the service yet. I want to first try to do it without paying for their service. If it seems like a big pain, most likely I will just pay for it. You might want to PM Anita because I know she established credit with the help of D&B. I don't know if she paid for the service or did it on her own. I am going to her REI meeting this Friday and I'll ask her about it and then post the info back on this thread.

KimmyJ
Press On...

So long as you are current on payments, no harm no foul. But even though it is through a separate EIN or corporate identity, if you missed a payment or are late, chances are when you signed for the card you personally signed for all credit obligations as well.

Bottom line is, be careful. Even though you setup a company to separate you from your business entity, chances are even though you get a “corporate” card or similar, in the event of a late payment or default you will be held personally responsible.

They will always ask for a PG when getting a biz loan.

The only exception is when you have some income coming in the corp/biz and have a min 75paydex score (like fico).

Try small banks credit unions.. And to establish credit get vendor credit. And do get loans even if you personally sign or use your ss# be current with your payments.. Once you establish good credit on your biz you can get loans up to 50k-300k..

I have an 80 paydex score. Try getting credit established with 30 day vendors first, at least 6 or 7 vendors reporting and then try for the business credit cards. I do know that key bank will accept a app without using SS.

There is a great 6 part post from Ryan Hughes on building biz credit. Ryan is one of Dean's coaches and the 6 post contain some real valuable info...Jan