Tuesday, November 5, 2013

Getting Credit for Your Business

I have been in business for myself for many years and have struggled with the fact that no one really wants to give me capital to run my business. Even when approaching friends, family (and fools) I never got the Wow that sounds exciting and I would love to be a part of it or at least loan you money to get it going. Sound familiar?

There are plenty of nay-sayers no matter what you try to accomplish. It is the postives that are more important when it comes to putting money into the company. Myself, I do not tend to tell my family much about what I am doing but there are plenty of strangers that are just as excited as I am. So where do you find the money to run your business? The answer is quite simple, but the work involved is not that easy, however, the results are certainly worth the effort.

The first step in the process is to review your credit reports. You are likely the same as everyone else, you know you have credit reports but do not tend to think of them as being important. You may also know that obtaining a free credit report every year is necessary but it is one of those tasks that gets neglected.

  • Action item number one is to get your free credit reports from all three credit reporting bureaus.

  • Action item number two is to read your credit reports and highlight the errors.

  • Action item number three is to get your credit report corrected.

  • Action item number four is to create a good business and working relationship with a financial institution such as a bank

If you are not sure how to begin, you can get more details on how to do this through CreditRepairForEveryone.com

Once your credit is under control and your score is where you need it to be, you can then borrow against your good credit. According to Donna Fox, Esq., it is easier to borrow a million dollars with a good credit rating than it is to borrow five thousand to pay a debt.

Planning for your business is also a key factor. Financial institutions like good plans that include where your sales will be coming from and when you expect to hit profit.

In summary, you will find financing your business much simpler through good credit and a working relationship with your bank (yes banks do like good projects that are well planned).

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