PROGRAM SUCCESS – JULY 2011
PAGE 33
How To Get Business Credit
The term “business credit” can refer to a variety of things. For
instance, there are business credit cards, business credit lines,
business loans, and just plain ole business credibility. While
these are all different, really they are all the same. Essentially,
they all lead to money that you can borrow for your company’s
needs.
Getting access to business credit can either be really easy or
really hard; There is no real middle ground. It really all depends
on how old and profitable your company is. The older your
company and the more money you make, the easier it is to get
it. The younger your company and the less money you make,
the harder it is to get it.
With all that said, here are some proven ways to get business
credit:
1) Maintain Your Personal Credit
While there are ways around this, the average person can only
get access to business credit if he/she has good personal credit.
Conducting a credit check on your personal financials is
usually the only means that a banker has to determine whether
or not you are too risky for them. If your personal credit sucks,
fix it. It will be well worth your time - however long it takes!
2) Shop For Banks
Always remember that banks need you just as much as you
need them. Giving you access to credit creates revenue for
them. Therefore, if one bank turns you down - try another. In
your community, there are probably at least 25 different banks.
All of them have a different application process, all have them
have different criteria, but at the end of the day - they all want
to do business with you. FindABetterBank.com is a great tool
to find banks in your area.
3) Search Online
In addition to the banks in your local community, there are tons
more on the web. These virtual banks may have higher rates,
but they too are very desperate for your business. Many offer
business loans and business credit cards. Conduct extensive
research using Google, Yahoo, a nd business directories such as
www.Business.com.
4) Find a Broker
A broker is a person or company that can help you find the best
bank available. They can save you a lot of time and energy, and
may even bring opportunities to your attention that you
would’ve never found. Be careful about shady brokers who are
so desperate for your business that they will connect you with
loan sharks.
5) Attend Financial Seminars
If you’re aware of a financial seminar or workshop in your
area, make every effort to attend. What better way to be
educated
about the best
financial
options for
y o u r
c o m p a n y,
then to be
advised by a
local expert?
Usually these events are free to attend, and the person hosting
it is usually very knowledgeable about the best banks and
financial institutions to do business with. As always, double-
check any references by doing your own research.
6) Attend Business Conferences
Every year, hundreds of business organizations and
publications host their own annual conferences. Most have
expos where companies such as banks can set up booths to
recruit new clients. This is a great opportunity for you to
inquire about their services, collect literature, and learn exactly
what you need to do to apply and be approved.
7) Read Business Magazines
Publications such as Forbes, Inc, Fast Company, Black
Enterprise, Hispanic Business, and even Business Week, report
regularly on the business credit and financing industries. They
often provide unique tips and techniques that can be used. Not
only can you benefit from the content from the articles within,
but you can also benefit from the advertisements (both display
and classified) that promote various opportunities.
8) Shop For Business Credit Cards
In addition to shopping for banks, you can also shop for credit
cards from banks that you don’t even belong to. If your own
bank won’t give you a card, that doesn’t necessarily mean that
others will also deny you. There are many to choose from, with
vary interest rates and rewards programs that can benefit your
business.