Small Business Resource

What’s the best way to establish credit for a newly formed business entity (LLC or corporation), even before it’s actually conducting business, to avoid having to personally guarantee a (SBA) loan, and to be able to open (vendor) accounts?

First you have to establish your business legally with your federal, state, county/local governments. Here a basic steps that may help.

- Secure a small line of credit with secured assets.
- Establish a supply base and make small purchases.
- Lastly contact one (or all) of the business credit agencies to establish a credit file.

This process may take 3-4 months. This is the least costly approach with an above average personal credit score.

Please know that I am not a proponent of using credit cards to fund a business, however, if the credit is for inventory where there is more than a likelihood that the inventory that you are acquiring will be sold and paid for within 60 days there is an avenue open to you.

Go to American Express – Plum and apply for an American Express Plum Card. Using the card judiciously will give you the option of paying two ways.

1. pay in full within 10 days of bill closing and receive up to a 2% discount
2.