How do I build Business Credit? How long should i build the line of credit before I apply for a loan?



Answer:
You can spend the rest of your life building credit for your company, but I am unaware of any bank that will provide a substantial and long term loan to just your company. Most likely, you will still have to personally guarantee the loan.

I own two companies and they both have credit records. Still, I cannot secure long term financing for either of them with out being ultimately responsible for the loan. Even if Coca Cola was to apply for a loan, there would still be an actual person to sign for it.

When I first started out, I had hopes of getting my companies "credit worthy" for a loan. It just isn't going to happen. However, I do enjoy many benefits of corporate ownership such as my business lines of credit. They do not report on my personal credit and therefore don't count against me as debt when I am obtaining long term financing in my name. Hope this helped.

Best of luck

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