Business Credit File. How to "pad" your file to get maximum credit
One of your ultimate aims, as far as business credit, is to get revolving cash lines of credit. As you build your credit file you will have credit offerings mailed to you. I would strongly suggest to ignore these offers. At the early stages you want to nurture your file and not burden it. You are likely to get approved by some of these banks but it will slow your progress later on. Your goals should be higher.
We all agree that not all banks are the same as far as their lending practices. Some banks are more conservative than others. Lets take Citibank. Citibank is probably one of the most dominant banks when it comes to starter revolving accounts. It stands to reason that you would want your business noticed by them. Did you know that Office Depot, Home Depot, Staples, Dell, Sears, RadioShack are all backed by Citibank. First registering with these companies and eventually getting some type of credit with some of them will certainly put you high up on Citibank's list. Like getting Net 30 accounts with them. As a result your chances of getting lines of credit with Citibank will increase.
Similarly, Wal-Mart, Lowe's and Amazon.com are backed by GE Money bank. Wal-Mart, Lowe's and Amazon.com all offer some type of credit that is worth pursuing if one of your aims is to get lines of credit with GE Money bank.
Office Max, Best Buy and Apple are backed by HSBC bank.
Getting business credit established as soon as possible means "aligning" the business so the process flows in a smooth progression, leading up to banks giving you cash cards.
Please read my article on SIC codes to get more tips on how to establish good business credit without Personal Guarantees. Yes you read that right, WITHOUT personal credit guarantees. The process might take a little longer but it is well worth it. A business credit that is established using your personal credit is nothing more than an extension of your personal credit and hence defeats the whole purpose of business credit.
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Questions and Answers
I will assume that this is a new home based business. Do understand that lending institutions look at a home based business a little more carefully than usual. So you want to make your case (file) very strong.
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