We haven’t needed a line of credit or CC and technically still don’t, but found out recently that our business doesn’t automatically have a credit file. We tried to lease some window washing equipment from Window Washing resource to get our first trade line and got denied. Then we went to a regional bank with statements from my credit union personal checking, savings, and truck loan (of which I’ve paid off half in a little over a year), two business checking and savings, brought up to date EIN, Secretary of State incorporation docs, signed commercial contracts ranging from $1400 to $4200 over the next 3 months, etc, etc, etc…
We got denied for a business line of credit despite showing an average daily deposit of $600, which I know isn’t breaking any records, but all I’m trying to do is start a credit file. I requested a $2500 line of credit. I was told that without a personal guarantee I would have a hard time getting credit anywhere since we were less than 2 years old.
I don’t want to mix business credit with personal credit, but I want to start a credit file. I don’t care if it’s for $1000 to start.
Long story short, I have 3 questions:
Who knows of any companies willing to open trade accounts with net 30 terms or banks willing to loan to small businesses without a personal guarantee?
How did you build your business credit?
There was a webinar advertised on the forum for May of '14 on this very topic, but I can’t find a replay and the link doesn’t work. Anyone know where to find it?
Thanks in advance!