Building business credit has been something that has come up a lot when I have been looking for doing deals. Basically to start from nothing I have learned that my business needs to be set up as an LLC, has its own business address or virtual office, etc so that banks can identify me as being a business operation.
Besides this I am wondering....how to start up looking for more funding, who to call, who can help me along the way. I'd be comfortable talking to banks that loan doing the BRRR method, but what types of questions do I bring to the table to keep it professional? I don't know where to start.
I opened a checking account with a bank then applied for business credit card (had to sign personally). After about 1 year I went back to the bank and applied for a Non-secured LOC (had to sign personally). about 3 months later I opened an account with Lowes (account recievable).
Most banks will tie you up with personal guarantee which that is not how you would like to do business credit.
Most important step in establishing your Business credit, just like personal credit, you need to start a profile with Duns and Bradstreet.
Process involves by applying for DUNS number. Once you acquire that, start applying for Net 30 days account with selected businesses by actually purchasing small amount. Make sure to pay the invoices quickly. Once those businesses start reporting the fast payment to DUNS, then you can approach other businesses which are bit harder for Net 30. Do not apply for credit card. Once your DUNS profile shows great shape. After a few months, you will be ready to approach the credit card, but make sure avoid personal guarantee.!