iecus Posted April 29, 2007 Report Share Posted April 29, 2007 Since there's no "general" forum I figured I would add this here, since I invest in alot of houses, I wanted to know if anyone here knows how I can go about starting a business credit TL so I wouldn't have to use my personal TL anymore. Link to comment Share on other sites More sharing options...
timbercreektech Posted April 30, 2007 Report Share Posted April 30, 2007 1. Incorporate or start LLC.2. Fund with profits.3. Show balance sheet, business plan, and assets to bank.4. They will give you credit if you have established positive cash flow for a few years. Link to comment Share on other sites More sharing options...
Ahntara Posted April 30, 2007 Report Share Posted April 30, 2007 Most likely, any business LOC would need a personal guarantor anyway. You may be going to a lot of trouble to end up in the same place. Organizing your business may offer additional benefits (like tax purposes), but don't count on this avenue to separate your credit issues.Cross collateralizing real property titled in your personal name with 'business' credit may also prove difficult. I ran into this issue with a client who was heavily vested in real estate. During a brief 6 month period, one of the smaller lenders offered a program that would cross collaterialze personal RE for one business (2nd mortgage interest) LOC. It's lack of longevity leads me to believe you would find such a lender/program even harder to find now, after the recent up-turn in foreclosures. This type of lending program is usually found when lenders get creative to find new sources of revenue.And that's the biggest caution I would throw out your way. Business credit is always more expensive and requires substantial down payments. 65% LTV is standard. (But you may know that). 1 Link to comment Share on other sites More sharing options...
joevil Posted April 30, 2007 Report Share Posted April 30, 2007 hiyou may want to check out the following sites...i think they are what you are looking for...it's not free but i think well worth itwww.freecorporatecredittips.comwww.cashflowexperts.bizboth sites deal with getting business credit and giving your personal credit a break...you'll need a personal min. creditscore of 680 though to make it work for you or a partner with a 680 score... Link to comment Share on other sites More sharing options...
iecus Posted April 30, 2007 Author Report Share Posted April 30, 2007 thanks for the replies and joevil I will look into that. Link to comment Share on other sites More sharing options...
BronzeArt Posted July 3, 2007 Report Share Posted July 3, 2007 Most likely, any business LOC would need a personal guarantor anyway. You may be going to a lot of trouble to end up in the same place. Organizing your business may offer additional benefits (like tax purposes), but don't count on this avenue to separate your credit issues.Cross collateralizing real property titled in your personal name with 'business' credit may also prove difficult. I ran into this issue with a client who was heavily vested in real estate. During a brief 6 month period, one of the smaller lenders offered a program that would cross collaterialze personal RE for one business (2nd mortgage interest) LOC. It's lack of longevity leads me to believe you would find such a lender/program even harder to find now, after the recent up-turn in foreclosures. This type of lending program is usually found when lenders get creative to find new sources of revenue.And that's the biggest caution I would throw out your way. Business credit is always more expensive and requires substantial down payments. 65% LTV is standard. (But you may know that).Disagree. Got a 3000 CL card from Advanta that doesn't report on my personal credit. They did a hard pull (750 score at the time), I got the card, and have been using it for three years, and it never showed up on my personal credit. Also, you can go to Grainger or any local supplier (welding supply, doors, office supplies) and get an account with them. Link to comment Share on other sites More sharing options...
IHateCAs Posted July 4, 2007 Report Share Posted July 4, 2007 Most REI are sole proprietors. You don't need business credit to do REI. You generally need large LOC as a REI and any bank you go to as a corp will a) look at personal credit anyway and make you personally liable.The Advanta card does require a PG. Read the terms and agreements when you apply for any business CC. They all say that you, acting on behalf of the company, agree to be personally liable for the account. I've researched all the major "business" CCs that are offered and they all say that. Link to comment Share on other sites More sharing options...
IHateCAs Posted July 4, 2007 Report Share Posted July 4, 2007 Just because they don't report to your personal CR doesn't mean you aren't personally responsible. I dare you to default on that card and see if it shows up. Link to comment Share on other sites More sharing options...
IHateCAs Posted July 4, 2007 Report Share Posted July 4, 2007 ++ rep for Ahntara having his/her facts straight. Link to comment Share on other sites More sharing options...
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