Building Business Credit With Bad Personal Credit

Hello, I'm Brian Otieno, the founder of Pennington Consulting Group and Broker Solutions, and I'm here to share my tips on how to build business credit with bad personal credit. I know firsthand how challenging it can be to build business credit when you have bad personal credit, but it's not impossible.

Debunking the Myth

First things first, let's debunk the myth that it's impossible to build business credit with bad personal credit. It's simply not true. I've helped many business owners who have bad personal credit build their business credit successfully. It just takes a bit of work and dedication.

Setting up Your Business

To start building business credit with bad personal credit, you need to set up your business properly. This means incorporating your business and registering it with the Secretary of State, registering it with the IRS for free and obtaining an EIN number, and getting a business website, email address, phone number, and physical address to pass compliance. You also need to open a business checking account and get a merchant account with services like Cabbage, Cash App, or PayPal. By processing credit cards, you can fund your business within months.

Obtaining Vendor Cards, Fleet Cards, and Net Accounts

To build business credit without a personal guarantee, you need to obtain vendor cards, fleet cards, and net accounts. Vendor cards offer a line of credit for supplies from companies like Uline and Granger, while fleet cards are for transportation expenses like purchasing fuel. Net accounts offer a grace period of 30, 60, or 90 days to pay the balance. The goal is to have a payment history reported on your business credit report, which can attract more lenders and funding options.

Working on Your Personal Credit

While building business credit, it's important to work on your personal credit as well. This can be done by paying your bills on time, reducing your credit utilization, and disputing any errors on your credit report. A good personal credit score can help you qualify for better business credit cards and loans.

Conclusion

In conclusion, building business credit with bad personal credit is possible. By setting up your business properly, obtaining vendor cards, fleet cards, and net accounts, and working on your personal credit, you can build a solid business credit profile that will benefit your business in the long run. Don't let bad personal credit hold you back from building your business credit. With dedication and hard work, you can achieve your goals.

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Are you ready to take control of your financial future? At Broker Solution, we offer three courses designed to help you achieve your goals. Our courses include the following:

• Broker Solutions Academy: In-depth training for those interested in becoming a business loan broker. We provide you with the tools and knowledge necessary to become a successful business loan broker, including access to industry professionals, comprehensive training materials, and ongoing support.
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• Unsecured Business Lines Academy (DIY): This course is for those interested in securing unsecured business lines of credit on their own. You'll learn how to navigate the lending landscape and gain access to funding sources that can help you start or grow your business.

Our courses are designed to help you start a new career or improve your financial health. Join us and start building a better future. Contact Broker Solutions today!