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Business credit

What's the best way to establish business credit? We could always take credit card from our bank but i think there are better alternative outside ie- american express. If we take Amex would it establish credit for the business, where it could assist us in getting line of credit in future from our bank?

5 Replies

Tony Daou
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Tony Daou Advisor
Entrepreneur, Purchasing Professional, Engineer and Leader with Supply Chain, Manufacturing and Process Eng. experience

I just went through this process with Wells Fargo and Capital One Banks. Establishing credit for my business was pretty easy since the business is something other than a sole proprietorship; i.e.LLC. I say this because LLCs and corporations are entities and can earn a credit rating. Whereas the sole proprietorship is not anentity so the owner's credit is used to establish and subsequentlycan be affected bycash and creditmanagement practices within the business.

My LLC simply applied for credit directly with creditors based on its projected revenue and my personal credit behavior. Once the business proves itself with its creditors, its "rating" will improve giving way to greater financing options and services.

Hope this helps,

tonyd

Emmanuel Eichler
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Emmanuel Eichler Entrepreneur
Web Operations Coordinator at the Alzheimer Society of Canada
Actually all you have to do is apply for a D&B number and you'll automatically get business credit. You can pay to rush the application or don't and it'll take a month or so.
Meetul Shah
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Meetul Shah Entrepreneur
CEO\Founder at IntentBase
Essentially if I have Amex business card and I have a good credit with them. If I want to borrow LOC from well fargo they would use my credit history from Amex to assess my credit worthiness?

Thanks
Meetul

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Lawrence Bracco
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Lawrence Bracco Advisor
President/COO GD Entertainment & Technology, Inc.
If you are careful, and do you homework, you can also "lease" trade accounts that will help improve your business credit.
Alasdair Clements
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Alasdair Clements Entrepreneur
Co-Founder, GoCAR GPS-Guided Tours
AMEX merchant financing will loan your C-Corp or LLC, 25% of your 12 months historical AMEX CC receivables with no personal guarantee. Its only 6% simple interest. Payments are made at 30% of future batches. But you need operating history with them.

It should build a credit rating on your FEIN

Square just launched similar product
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