Want to buy my first property under business credit

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Mar 22 '07, 12:25 AM

some business credit but not alot... its hard to find cc companys to give my business credit that dont want a personal guarentee which im not gonna do because it doesnt make sense... im trying for BUSINESS credit not PERSONAL......

Edited: 06/26/2010 at 03:26AM

Joshua Dorkin

BiggerPockets Founder · Denver, Colorado

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Mar 22 '07, 04:14 AM

Originally posted by "streamland"

some business credit but not alot... its hard to find cc companys to give my business credit that dont want a personal guarentee which im not gonna do because it doesnt make sense... im trying for BUSINESS credit not PERSONAL......

You might be out of luck, then. Until your business credit is established, you are going to have to personally guarantee any sizable loan.

Edited: 06/26/2010 at 03:26AM

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Mar 23 '07, 03:45 AM

I've been researching this also and have not been able to find a definite yes, but as for building buisness credit, I found this great post which walks you thru the beginning process.http://www.infinitecredit.com/forums/business-business-credit/271-smithdesign-how-establish-business-credit-aoc.html

Good Luck!

Post if your sucessful!

Edited: 06/26/2010 at 03:26AM

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Apr 03 '07, 05:54 AM

i got that one already and it half way works.... i got the staples card but couldnt get any of the others

Edited: 06/26/2010 at 03:28AM

Aiman Zul

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May 04 '10, 10:34 PM

Hello:
I am new to this forum. Business credit ?

Well it all depends on how you set the business file. The SIC code, the history of purchase etc. Think of this: ALL the things that Dun & Bradstreet (and the like) look for have to be in place and I can assure you, you will get more business credit than you ever thought possible.

Aimanzul

Edited: 06/26/2010 at 12:43PM

Don Konipol

Note Investor · Tempe, Arizona

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May 04 '10, 11:57 PM

In order for lenders to be willing to do a loan without a personal guarantee the credit. size. stability and income of the business must be of a significant size. Otherwise it is too easy to fold the company, pay out the money to another entity, and all that the lender is left with is a guarantee by a defunct entity. A personal guarantee requires that the borrower walk away from alot more than a defunct entity, personal credit, assets, investments, reputation etc. will be on the line.
Out of 300 hard money loans I've completed in the last 9 years, I have done only 2 without personal guarantees. Both were for companies with $30 million + assets.
I'm afraid if you're looking for a non personal guarantee loan then your going to be missing alot of investment opportunities. After all, if you do not have enough confidence in the deal, why would I?

Edited: 06/26/2010 at 12:43PM by Don Konipol

Aiman Zul

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May 05 '10, 12:25 AM

Originally posted by Don Konipol

In order for lenders to be willing to do a loan without a personal guarantee the credit. size. stability and income of the business must be of a significant size. Otherwise it is too easy to fold the company, pay out the money to another entity, and all that the lender is left with is a guarantee by a defunct entity. A personal guarantee requires that the borrower walk away from alot more than a defunct entity, personal credit, assets, investments, reputation etc. will be on the line.
Out of 300 hard money loans I've completed in the last 9 years, I have done only 2 without personal guarantees. Both were for companies with $30 million + assets.
I'm afraid if you're looking for a non personal guarantee loan then your going to be missing alot of investment opportunities. After all, if you do not have enough confidence in the deal, why would I?

I have established shelf corps without PGs (that is the point of a shelf corp right). I have also dealt with a few hard money lenders and I have found hard money lenders more picky and harder to deal with. That is one reason that I stopped dealing with hard money lenders (some are good friends of mine by the way).

Establishing business credit without PGs and without showing massive cash flow is a reality. Of course you need to know the details, of course you have to have some history....SMALL secured loans can do the trick. etc.

Aimanzul

Edited: 06/26/2010 at 12:43PM

Grady Dortch III

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Nov 08 '10, 04:25 AM

www.businessfinance.com
www.businessfinancecoach.com

Grady Dortch III

Real Estate Investor

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Nov 29 '10, 02:46 AM

for business credit help go to www.businessfinance.com

Paul B.

Real Estate Investor · Alpharetta, Georgia

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Nov 29 '10, 05:57 AM

In my opinion, all of this talk of establishing business credit (presumably because your personal credit stinks!) is a farce. Particularly in today's climate, you are NOT getting financing unless you have your affairs in order. I see these companies offering to help you build your business credit by offering to sell you an "aged corporation," as if the simple fact that a corporation is old is going to induce a lender to make a loan. More nonsense. You can get all the Staples cards and other trade accounts you want. It's not going to keep your lender from doing a traditional underwriting when you're asking for a loan of ANY meaningful size. And to anyone who insists on pursuing this, never, EVER pay any money up front for ANY service related to this effort.

Eric Michaels

Real Estate Lender · Chicago, Illinois

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Nov 29 '10, 06:55 AM

Originally posted by Paul Broni

In my opinion, all of this talk of establishing business credit (presumably because your personal credit stinks!) is a farce. Particularly in today's climate, you are NOT getting financing unless you have your affairs in order. I see these companies offering to help you build your business credit by offering to sell you an "aged corporation," as if the simple fact that a corporation is old is going to induce a lender to make a loan. More nonsense. You can get all the Staples cards and other trade accounts you want. It's not going to keep your lender from doing a traditional underwriting when you're asking for a loan of ANY meaningful size. And to anyone who insists on pursuing this, never, EVER pay any money up front for ANY service related to this effort.

Ah a wonderfully refreshing, new, intelligent voice on BP! Telling it like it is...no fluff!

Jack Coquerel

Real Estate Investor · Lawrenceville, Georgia

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Dec 01 '10, 12:01 PM

You will not get a good size of business credit without any personal guarentee.
If you don't want to use your credit, your best shortcut is to find someone with good credit as partner, establish your business credit with good DUNS number 80+ (Just call Dun and Bradstreet for that) then apply for your line. But it will come with personal guarentee, just not yours.
There is a great report you can find on line called "The Little Black Book". Just google it.

Bryan Hancock

Real Estate Investor · Austin, Texas

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Dec 01 '10, 01:45 PM

I agree with other posters about needing a strong personal balance sheet and credit score for large loans for purchasing property.

It is possible to get unsecured business credit for credit lines though. This helps an investor to minimize the amount of cash they carry and keep their money working. Many investors I know employ this strategy while pursuing traditional debt product to finance purchases.

If you have a nice pile of cash to play with you may consider trying to find some non-recourse commercial financing instead for larger assets. Absent a track record this may be challenging, but it may be possible via a split with someone's resume that you can borrow on a JV or simple partnership agreement.

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