Essentials of Building Business Credit Without Personal Guarantee
Someone who can hope to get a corporate business credit goes looking for advice to make his hope come true.
Business credit companies are ready to provide loans if the applicant meets certain conditions.
Even so, care is taken to see that the borrower is not put to unnecessary difficulties by asking him to provide too many documents as well as to prove his personal as well as business credit worthiness.
Also, it should always be remembered that the intended beneficiary of the loan is already in some deep trouble and there is no point in summoning for his all past records of financial activities.
All these are short term solution.
A real long term solution lies in building business credit without personal guarantee.
Interest rates are slashed to a minimum and credits are kept in a competitive state.
Personal loans and corporate credit concepts do not go hand in hand.
They travel on different roads.
If they meet, it will be an embarrassment for the intended borrower.
For, if the personal and company credit accounts are maintained together, the credit companies find it hard to decide whether to give loan or to reject it.
In the event, one would expect a bad personal credit will hold it against the borrower.
It is not only untrue but it does not matter at all! Lenders do not mind bad personal credit record holders but do mind if they had put both accounts together and spent monies from each account for the other purpose.
How do the credit lenders decide whether to oblige the borrower? The past records are of course given a go through but not too much weight is given to them.
It is present condition of the borrower and his business practice that is looked into.
Does he pay the bills properly? Paying the bill on time can build a credit score to an impressive level.
A corporate business credit is easily obtainable if the credit score is a respectable 700.
How to build up this 700 mark? Not much difficult, we should say.
Maintain the bill payment thoroughly within the schedule and get the creditors good remarks to passed on to the lending agency.
Companies that do not have some sort of credit card system should, at least of this purpose, apply for one.
Use it for payments and this record will go a long way in getting the credit score.
This will enable the credit companies reduce the interest rates appreciably and the repayment schedule will also be more flexible.
Small business loans are the prerogative of Small Business Administration which has been established by the federal government and is engaged in catering to the welfare of small businesses.
This agency is mostly benevolent to the potential borrower and acts mostly in his interest.
A cash-strapped loan can always put up his case for an easy interest payment and an equally easy schedule.
It is always given a careful consideration before the final decision is taken.
Thus, building business credit without personal guarantee is not hard, if you follow the above mentioned advice.
Business credit companies are ready to provide loans if the applicant meets certain conditions.
Even so, care is taken to see that the borrower is not put to unnecessary difficulties by asking him to provide too many documents as well as to prove his personal as well as business credit worthiness.
Also, it should always be remembered that the intended beneficiary of the loan is already in some deep trouble and there is no point in summoning for his all past records of financial activities.
All these are short term solution.
A real long term solution lies in building business credit without personal guarantee.
Interest rates are slashed to a minimum and credits are kept in a competitive state.
Personal loans and corporate credit concepts do not go hand in hand.
They travel on different roads.
If they meet, it will be an embarrassment for the intended borrower.
For, if the personal and company credit accounts are maintained together, the credit companies find it hard to decide whether to give loan or to reject it.
In the event, one would expect a bad personal credit will hold it against the borrower.
It is not only untrue but it does not matter at all! Lenders do not mind bad personal credit record holders but do mind if they had put both accounts together and spent monies from each account for the other purpose.
How do the credit lenders decide whether to oblige the borrower? The past records are of course given a go through but not too much weight is given to them.
It is present condition of the borrower and his business practice that is looked into.
Does he pay the bills properly? Paying the bill on time can build a credit score to an impressive level.
A corporate business credit is easily obtainable if the credit score is a respectable 700.
How to build up this 700 mark? Not much difficult, we should say.
Maintain the bill payment thoroughly within the schedule and get the creditors good remarks to passed on to the lending agency.
Companies that do not have some sort of credit card system should, at least of this purpose, apply for one.
Use it for payments and this record will go a long way in getting the credit score.
This will enable the credit companies reduce the interest rates appreciably and the repayment schedule will also be more flexible.
Small business loans are the prerogative of Small Business Administration which has been established by the federal government and is engaged in catering to the welfare of small businesses.
This agency is mostly benevolent to the potential borrower and acts mostly in his interest.
A cash-strapped loan can always put up his case for an easy interest payment and an equally easy schedule.
It is always given a careful consideration before the final decision is taken.
Thus, building business credit without personal guarantee is not hard, if you follow the above mentioned advice.
Source...