Business Credit Basics

The number #1 set back that most start ups and small businesses face today is not having the capital to start and run their businesses. You might be very surprise to learn that most of these small business owners don't know anything about business credit nor do they know how to obtain business credit. I believe that this is the single most important issue that most start ups face today. Imagine that you're a small business owner having access to $50k - $100k in business lines of credit for example. This would allow you to be able to meet payroll, purchase supplies, pay day to day expenses and even invest in machinery or equipment that will add to the bottom. All of this can be accomplish if the right steps to building a solid business credit file are taken early on in the process of starting a business. I will list the main steps that a small business owner needs before he/she can begin to build a solid business credit file that will allow them to acquire the capital they need to fund their business operations.

Step 1- Incorporate. This will be done through your Secretary of the State where the business is located. From my experience, a C-Corp is more favorable in terms of lending than a LLC. Consult with your Accountant/CPA for specifics about which type of corporate entity would be best for you. The articles of incorporation are a must have.

Step 2- Federal Tax ID Number .The business must have a Employer Identification number (EIN). This is for identifying purposes. Taxes.

Step 3- Business bank account in the business name and not in the name of the owner/manager/partner. Business assets must be separate from your personal assets. This step can only be performed only after the EIN has been applied for and received from the IRS.

Step 4 - Get a business landline in the business name and it should be listed with the major search directories for identifying purposes.

Step 5 - Online presence. Most if not all small business have a website. Even if it's a 1 page website that tells what your company does. Having a web presence is a must.

Step 6 - Business License. This is very important as every business should have a license to operate in the city, county or which ever municipality that they are in.

Step 7 - Government registration. This step is very necessary for those looking to solicit Government contracts.  This step also requires having the right SIC code for your specific industry.


Lastly, a small business needs to have stationary materials for marketing and advertising. Company logo, business cards and basic letter head templates are necessary for a small business.

Purchase the e-book that will show you how to incorporate these basic steps and also show you how you can obtain cash lines of credit for your business or any investment today. Click on the link below to purchase your copy now.
Your comments are welcomed and I will will respond to your questions.

Al,
Business Credit Consultant
alplouis@gmail.com
@alplouisea

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