Business Credit Cards For New Business
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Business Credit Lines-long Island, New York: Using Business Credit Cards Effectively
This is not the same as using your personal credit to obtain a credit card with your business name on it. Obtaining a business credit card relies on your business credit information, not on your personal credit information.
When you are beginning your business, you will probably need to use your personal credit. After you have fulfilled certain basics, your business should rely on itself for credit.
These basics include incorporating your business as a legal business entity. This does not include DBAs (individuals Doing Business As company x). Consult a local business attorney about incorporations are available in your state.
Business Credit Cards For New Business
Another basic for building business credit is establishing a business phone that matches your business address in the national 411 directory. Even business cell phone service can be set up for this. Residential addresses are okay, too. Just make sure you are listed as a business in 411 and that your information is correct. Always give lenders this same information.
The last basic step involves building credit with your vendors. If you are in the service industry, you can develop accounts with your office supply, Internet, and phone service providers. Otherwise, get a credit account with your suppliers.
Now you are ready to apply for a business credit card. Use all business information on the business credit card application. Use business sales numbers, list other business assets and liabilities. List business creditors (your vendors) and use business references. Simply put, make your business stand on its own when obtaining business credit cards.
Business Credit Cards For New Business
Once you have a business credit card or two, use them for business expenses only. Carry some balance on them month-to-month, but plan on paying almost all of it off monthly. Do not use your business credit card to purchase items for which you could otherwise obtain business financing. Your long-term goal should be to establish solid overall credit for your business.
Establishing solid credit for your business is relatively easy to do if you start by following the three steps above. Then get business credit cards to further build your business's credit. With good business credit as your foundation, you are now ready to get a business line of credit that does not depend on your personal credit.
While a business credit card is a great tool for using credit for business purposes, as with any tool, use your business credit card wisely and it will serve your business well.
Pat Gage, The Opportunity Creator, and a leading expert in the field of business credit has helped a number of clients target his specialty - starting, expanding, and growing their businesses through his trademarked 10 Steps to Money System. The Opportunity Creator is not only a sought after business credit coach, but also a national speaker. For more information on any topic discussed, visit Gage's site at http://www.10stepstomoney.com
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How to apply for NEW Business Credit card or loan for LLC?
Hello, I have maxed out my own Personal cards for my new online Business but I STILL need her to build my Business, how can I get Business credit for my LLC ,, like a credit card or maybe a loan ? Thanks so Much!!
how do i get business credit cards for a new business?
if its based on my personal credit history im screwed, isnt there a way to use ur tax id to get it instead of personal history?
What is the cheapest way my new business can accept credit cards?
I am starting a new parts business and I want to be able to accept credit cards (we already accept PayPal), but it seems so expensive for a business just starting out! How can I do this?
Accepting credit cards won’t ever be cheap. Visa, Mastercard, and the rest all want their money, and so do the companies that process the cards.
Everyone’s hand is out and getting their share before you see your funds. It’s terrible but a fact of business life.
The alternative I find to be quite useful is ProPay, which is owned by Wells Fargo. Check out what they offer and their prices.
With ProPay, you’re able to process credit cards online, by telephone, and through a card reader if the customer’s credit card is handed to you. There’s much more to consider, and ProPay’s site features an FAQ and price list for each level of service.
What I like about them is that there’s one yearly cost – no monthly fees such as $25 or more per month charged by merchant account firms. Those fees eat away at your profits.
I was glad to get away from the constant money takers and opt for ProPay and PayPal. Every credit card processor has fee structures, but some are manageable while others are astronomical.
Good luck to you.
Shirley George Frazier
Author and Small Business Expert
Would it be a good idea to get a credit card for my new small business?
I just started a new business and there are things I need to purchase for it but I don’t have the money right now. Would it be a good idea to get a business credit card? Would it be easier to figure out my taxes at the end of the year?
It would not be a good idea. Especially in this economy. Also, if you’re not incorporated, you’d be personally liable anyway. Try not to purchase anything, or get it as inexpensively as possible, such as Craigslist.
How can I start a credit line for new small business?
My business is really small and sort of new (2 years) I just don’t know how to start a credit score for it. My personal credit is not perfect. I have applied for some business credit cards but I just can’t be approved. Please advice how this works for new small business
A true business credit card is a line of credit that is taken in the name of the business, under the business’ credit. Activity, whether good or bad, is reflected on your business’ credit report through D&B and other financial institutions, and the liability for any debts incurred and bills owed is with the business.However, some companies out there offer “business” credit cards which they require a person guarantee for. These institutions will often ask for a personal guarantee, and will almost always ask for a social security number from the person applying for the card. If this is the case, the credit card is not a business credit card, but is simply a personal credit card which is used for the business. The business is not liable for bills and debts – you are.When applying for a credit card for your business, watch out for areas asking for your SSN (and not your TaxID or EIN) and be wary of any credit card that asks for a personal guarantee. By ensuring that your credit card is in the name of your business, you can help to build your business’ credit, while avoiding creating problems with your own.
Many companies offer a list of credit cards that are issued under the business name only. Those lists typically run $300-$900, depending on the quality of the information inquiring. I would suggest starting your search online via google or yahoo. Search for “strong business credit” (just like that in quotes) to find services that sell the information.
Good luck,
Ilya Bodner
Small Business Owner
Initial Underwriting Group
If it is a new business without adequate credit rating the credit card companies are going to require a personal guarantee which is going to require whoever gives the personal guarantee to submit a credit history. If you can figure out a way around this you should start a new business which will make a fortune advising new entrepreneurs how to get credit cards with little or no credit or bad credit. You probably already know this, but in desperation do not prey victim to anyone that says they can get you a credit card for a payment. You either have the credit to get one or you do not and there is nothing anyone can do to change that but you.
Unfortunately, as a small business person, a bank or credit card company will ask you to guarantee the debt for the company. If your personal credit isn’t good, either, it presents an almost insurmountable problem. Only suggestion I have is to get a secured credit card from your bank, in the business name. Even $500 or $1000 is a good start if you can afford it. Then, charge a few hundred every month and pay it off. Hope this helps you