Business Credit Tips

My journey into the world of starting and maintaining business and corporate credit.

Posts Tagged ‘business lines of credits’

What are the steps involved in setting up Business Lines of Credit?

Posted by Jeff Miller on August 5, 2008

While every case will be different, there are several broad categories if things that must be done to get business lines of credit.  I’ll outline those categories here and go into detail in further posts.

You need a CFO with a 720+ FICO score.

You need to start or buy a corporation of LLC.  You save a little bit of time if you buy but not as much as you could two years ago.

You need to acquire and use several small sources of business credit (credit cards, merchant accounts, etc.) and use them. In this step, you can acquire $50k – $300k in various small lines of credit (cash and trade credit).

You must show activity in the corporations bank accounts.

Once the corporation is 2 years old, showing activity and using your current business credit to raise your Paydex score to 80, you can start looking for the larger business lines of credit.

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