How to get corporate credit
There are many reasons why you should get corporate credit if you own your own business. For example, you will be able to protect your personal line of credit from any liability for your business expenses. In addition, you will be able to take out loans and leases you need for operating the business. Note also that acquiring corporate status will benefit your company's financial health because they will regard it as a separate entity, and your businesses and personal finances will be considered separately.
To earn corporate status, for your business, you will have to take the following steps:
? Complete your articles of incorporation, which will indicate your intention of forming a corporation and list the names of those who are in it. Then, proceed to file this document with the secretary of state's office in your jurisdiction.
? Contact the IRS (Internal Revenue Service) for your Federal Employer Identification Number (FEIN). Note that, depending on your industry, you may also have to apply for other state identification numbers, licenses and sales tax numbers.
? You should also acquire a Data Universal Numbering System (DUNS) identification number, which is supplies by Dun & Bradstreet (D&B). You will need it in order to apply for federal grants for your corporation.
? With the funds you have earmarked for commercial purposes and using your corporation's name, open a business account at sound financial institution to get corporate credit.
? Through your online and offline research, locate some "business friendly' sources that may be prepared to lend to corporations that are relatively new. Be certain that you understand the terma and conditions related to those loans, such as the interest rates, fees and annual charges (if any) before you attempt to get corporate credit.
? Begin with small, incremental loans, and repay them in a timely manner to get corporate credit in the future. Also, maintain accurate financial statements, and aim for a corporate credit rating between 70 and 80, which is excellent. Eventually, you will be able to obtain larger loans for growing your business when the need arises.
Here are some other points to remember when you want to get corporate credit:
? After you have obtained and repaid a significant number of loans, take control of your corporation's cash flow and don't become overextended by assuming debt that you will not be able to handle easily. This will make it more difficult to get corporate credit in the future.
? Exercise caution in regard to which of your employees can access your company credit, and monitor their activities to ensure that they are using this privilege cautiously.
? Consult with other investors to determine which lenders you should approach when you want to get corporate credit. Industry referrals are especially helpful here.
? Once you get corporate credit, use the spending possibilities to maintain and expand your business.
Finally, if your personal credit rating is unsatisfactory, you will definitely want to get corporate credit without having to provide any personal guarantees.
To earn corporate status, for your business, you will have to take the following steps:
? Complete your articles of incorporation, which will indicate your intention of forming a corporation and list the names of those who are in it. Then, proceed to file this document with the secretary of state's office in your jurisdiction.
? Contact the IRS (Internal Revenue Service) for your Federal Employer Identification Number (FEIN). Note that, depending on your industry, you may also have to apply for other state identification numbers, licenses and sales tax numbers.
? You should also acquire a Data Universal Numbering System (DUNS) identification number, which is supplies by Dun & Bradstreet (D&B). You will need it in order to apply for federal grants for your corporation.
? With the funds you have earmarked for commercial purposes and using your corporation's name, open a business account at sound financial institution to get corporate credit.
? Through your online and offline research, locate some "business friendly' sources that may be prepared to lend to corporations that are relatively new. Be certain that you understand the terma and conditions related to those loans, such as the interest rates, fees and annual charges (if any) before you attempt to get corporate credit.
? Begin with small, incremental loans, and repay them in a timely manner to get corporate credit in the future. Also, maintain accurate financial statements, and aim for a corporate credit rating between 70 and 80, which is excellent. Eventually, you will be able to obtain larger loans for growing your business when the need arises.
Here are some other points to remember when you want to get corporate credit:
? After you have obtained and repaid a significant number of loans, take control of your corporation's cash flow and don't become overextended by assuming debt that you will not be able to handle easily. This will make it more difficult to get corporate credit in the future.
? Exercise caution in regard to which of your employees can access your company credit, and monitor their activities to ensure that they are using this privilege cautiously.
? Consult with other investors to determine which lenders you should approach when you want to get corporate credit. Industry referrals are especially helpful here.
? Once you get corporate credit, use the spending possibilities to maintain and expand your business.
Finally, if your personal credit rating is unsatisfactory, you will definitely want to get corporate credit without having to provide any personal guarantees.