How to Get Business Credit Without Using Your Personal Credit

If you’re pulling-out your hair in frustration, wondering how to get business credit without using your personal credit, I have good news for you…

Even today, it’s possible to get business credit without personal guarantees (more on that in a moment).  This is true regardless if you’re starting a new business or you have a well-established one.

What’s a Personal Guarantee?

It’s a promise that you, personally, will repay a business debt if your company doesn’t (or if it goes bankrupt).   What that ultimately means to you, personally, is collectors can come after your home, your car and your assets to satisfy the delinquent business debt.

You can’t avoid personal guarantees 100% (unless you do millions in sales), but it’s best to guarantee as little business debt as possible.

Here are two strategies for getting more business credit without personal guarantees…

Tip #1 – Build Business Credit Fast… And Start Early!

The longer you wait to establish business credit, the longer it takes get big loans that can really move your company forward.

You want to build a credit foundation that’s wide and deep, starting today…   That means getting credit terms from multiple vendors who report your payments to the business credit bureaus.

There’s no such thing as having “too much” commercial credit – just don’t apply for more than five accounts every two to three months.   Each credit account is a badge of trust telling banks and vendors they can confidently give your company credit.   The more credit lines, the better – as long as you pay them on-time and you don’t carry large balances for several months.

The beauty of this is, the bigger your company’s credit foundation is, the fewer credit lines you’ll personally guarantee.

Which brings me to my second point…

Tip #2 – Apply for “Low Hanging” Small Business Credit – Even If You Don’t Need It

A brand-new business stands little chance of getting approved for branded credit cards (Visa, MasterCard, etc.) right off the bat.  That is – unless the owner has good personal credit (700+ FICOs) and personally guarantees them.

So, what does that leave?…  Easy-to-get accounts, like credit terms from office supply stores (Staples, Office Depot), shipping supply companies (Uline), etc.  (You’ll find a complete list of starter accounts in my Six Figure Business Credit course.)

Most starter accounts are Net 15 or Net 30 credit terms, which means you must pay your invoices in-full within 15 to 30 days.

Even though they’re probably not your first choice, think of them as bridges to bigger credit lines and better credit terms.  Plus – they don’t require personal guarantees and little (if any) business credit history!

Even if you don’t need these accounts, you can’t afford not to get them and use them.  It speeds-up establishing new business credit, and it helps established companies get more credit.

In fact, if you have a new business, you can use the list of starter accounts from my Six Figure Business Credit course and get your first $10,000 in business credit within the next 4-6 weeks, guaranteed.

And, if you have an established company, you should also use these “starter” accounts to boost your company’s credit.   Following this simple (but crucial) step means the difference between getting approved for high-APR cards with a $1,000 limits and a low-APR cards with a $25,000 limits.

If you’re serious about building business credit the fast and easy way, click here to learn how to get my complete Six Figure Business Credit system on a 100% risk-free basis…